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As programmatic advertising—an automated, technology-driven method of buying and selling digital display advertising—becomes a common method for securing banner ad inventory, both buyers and sellers look to apply it to the most premium of inventory: digital video.
Today, programmatic video advertising is in its early stages, but that is quickly changing as buyers increasingly turn to it for greater audience insights and sellers become more comfortable with offering their premium inventory in this manner, according to a new eMarketer report, “Programmatic Video Advertising: Automated Platforms Begin to Transform Digital’s Premium Marketplace.”
Data from demand-side platform (DSP) Turn offers evidence of that rapid acceleration. Between January 2014 and April 2014, programmatic video ad spend worldwide on Turn’s platform grew 65% over the same period in 2013.
Programmatic video won’t develop exactly in the manner of the broader programmatic display space. The first efforts to create programmatic video platforms tended to parallel similar efforts for display, but TV buyers will have an important voice in the development of next-level platforms.
Programmatic video buyers have high expectations. They want the rich, precise audience insights of digital with all the comforts of TV buying: inventory guarantees, premium ad placements and brand-safe environments.
But perhaps the greatest allure of programmatic video buying is that it promises to erase the lines between different screens, allowing buyers to reach across multiple devices with a single transaction. Right now, that mainly means desktop and mobile. Beyond that lies the hope of linking all video buying—TV, desktop and mobile.
Enthusiasm for cross-platform video buying, particularly the ability to bridge digital video and TV, is high. April 2014 data from the Interactive Advertising Bureau showed both US agencies and marketers reporting investments of more than one-third of their advertising budget on TV and digital video cross-platform buys, up from one-quarter in 2012.
The same survey also explored the relative importance of programmatic’s involvement in that process. About 80% of all respondents said it was either very or extremely important that media brands, ad networks or DSPs offered multiplatform video advertising solutions to bridge both digital video and TV.
Still, there is still a long way to go before true cross-screen buying across TV and digital becomes a widespread reality.
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