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Among US digital media buyers and suppliers polled by Integral Ad Science in December 2014, programmatic video ranked as the area that would experience the greatest growth in 2015. Spending figures are in line with expectations for huge increases. eMarketer estimates that this year, US programmatic digital video ad spending will soar 212.2% to $2.18 billion, or 28.0% of total digital video ad spending. Next year, we expect growth of 76.4% to push this share to 40.0%, or $3.84 billion.
Globally, programmatic video ad spending leapt 62% year over year in March 2015, according to Turn research, based on activity on its platform.
A March 2015 study by Unruly looked at programmatic video usage among senior agency and brand marketers in the UK and US and found that nearly three-quarters were putting a share of their digital video ad budgets toward programmatic. Fully 43.7% of US respondents purchased more than 40% of their digital video ads programmatically, as did 31.4% of those from the UK.
TV ads were losing spending to programmatic video. Nearly 70% of total respondents had moved TV ad investments to programmatic video. Fully 35% of US respondents reported transferring more than 40% of their TV ad budgets to programmatic video, as did 26.3% of those from the UK.
More spending means more demand to prove programmatic video’s value, and Unruly found that agencies and marketers running such campaigns were moving away from the basics toward “more verified engagement metrics.” Viewability, completed views, views and interaction rate were the most-used key performance indicators for measuring programmatic video campaigns among respondents in both countries. Meanwhile, clickthrough rate landed in last.
Predictions for the explosion of programmatic video appear to be becoming a reality. As advertisers devote more of their digital video budgets to such efforts—and shift TV dollars at the same time—they’re making sure measurement matures as well.
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