Programmatic video is one of the digital marketing trends with bigger growth projections. We have already exposed in this blog the characteristics of programmatic display ads, programmatic native and social ads and even programmatic out-of-home ads.
Now the time has come for us to talk about programmatic video ads. If you haven’t read our previous posts on programmatic advertising, take a look at this small brief:
Programmatic advertising is a set of techniques that allow us to buy online advertising spaces and opportunities in an automated way, through a real-time bidding process. This automated type of advertising works with a high level of content personalization.
Inside the universe of programmatic advertising, videos occupy a central place, because we’re all living in an era dominated by an audiovisual culture. Programmatic videos are pieces of advertising audiovisual content and its online distribution is defined by algorithms, artificial intelligence and big data.
There are three kinds of programmatic videos:
When a user access, por instance, a website, a bidding process takes place in a fraction of a second among a group of ads that have been setted to be displayed to users with certain characteristics, interests, history and online behaviour. The ad with a higher offer wins that advertising space and it’s shown to the user.
This way we can achieve a high level of audience targeting and, at the same time, we can optimize our resources, because the entire process is done automatically and in real-time.
There won’t be long for the concept of manually buying online ads to be considered as an obsolete process. Machines do these operations in a much faster way and with a higher effectiveness.
This can be done thanks to the evolution of big data, artificial intelligence and algorithms. The high level of personalization provided by these kinds of advertisements allow companies to increase their conversion rates and reduce their costs per acquisition.
Audiovisual contents are the most attractive advertisement format for users. 54% of consumers wish to see videos from the brands and businesses they like. Also, 81% of companies recognize the importance of this type of ads.
Programmatic video ads work as follows. First, the advertiser defines its ideal audience in detail. Then, he/she allows a specific platform access to his/her ads and, finally, defines a budget.
After that, the platform takes the information we have setted and, using real-time biddings, it looks for the best places and times to show our ads to those users whose profiles match the parameters we have selected.
The possibility of obtaining real-time data for evaluating an online campaign’s performance is revolutionizing the way we think digital marketing.
Programs that do these types of operations are quite complex. That’s why the companies that are already investing in programmatic videos are hiring digital marketing agencies with experience in these kinds of advertisements. Such as Chili!
If you want to know more about it, contact us now. Chili’s digital marketing specialist team works with programmatic advertising for different clients from diverse countries. We’re always ready to assist you.