Programmatic video advertising

What is programmatic video advertising?

Programmatic video advertising is the buying and selling of video ad space via programmatic technology. It happens in an automated way with the help of real-time bidding and brings many profits to publishers, as ads are better personalized and can bring more profit than usual.

How do programmatic video ads work?

To understand the science behind programmatic video ads, you have to know some crucial terms:

• In order to serve video ads, you need a video player. You can choose to build one yourself or opt for an option suggested by your technology partner. If you choose to collaborate with optAd360, we will offer you a free video player, so you don’t have to invest in other solutions. Remember that a high-quality video player needs to support various video tags, especially the ones listed below;
• IAB (Interactive Advertising Bureau) specifications for video ads are sets of specifications that help to serve and manage digital video ads but also enable standardized communication. Among them are the following standards:
  • VAST (Video Ad Serving Template) – if you wish to monetize your content with Google Ad Manager or one of many other ad servers, the video player that you choose to use on your website or app must comply with this standard. We recommend reading an article about VAST errors if you wish to know more, not only about possible problems concerning these pieces of code but also, among others, how to create VAST tags,
  • VMAP (Video Multiple Ad Playlist) – is a specification using VAST tags that assist in returning many video ads visible during video playback,
  • VPAID (Video Player Ad Interface Definition) – is an ad protocol that assists in providing experiences not supported by VAST. It can, for instance, help to display an ad with interactive elements,
  • SIMID (Secure Interactive Media Interface Definition) – in the future, this specification will replace VPAID for interactivity. It facilitates communication between a video ad and a video player.

The most common types of programmatic video ads

• In-stream ads are advertisements displayed within the player. Importantly, to apply these ads, you must have your own video content; only this way will an ad fall into this category:
  • Linear ads are displayed when the video content is not playing at the moment:
    • Pre-roll ads – served before a video stream,
    • Mid-roll ads – served during a break in the video content,
    • Post-roll ads – served after a video stream,
  • Non-linear ads are shown during video content playback. These types of video ads can overlay or appear separately from video content. Oftentimes they occupy the bottom of the video or are visible below it;
• Companion ads (banner or overlay ads) – although they are not strictly video ads, it’s worth being aware of them – as the name suggests, they accompany the main video ad. The leading idea of text, images, or rich media that can be displayed at the same time as video ads is to not disrupt the main video ad content but at the same time show extra information. In such a pair, the main ad is often called a master ad;
• Out-stream video ads (non-in-stream video ads) are ads that are shown next to your content (that isn’t a video content):
  • In-banner video ads, according to Google, are banner or display ad slots that have a video player inside. Typically, these videos are HTML5 creations,
  • Interstitial video ads – these full-screen ads appear on both websites and in apps. Contrary to native video ads, Interstitial offers maximum visibility. App owners particularly like to implement them during, for instance, loading break, when the users have to wait anyway for the next “action” to happen,
  • Native video ads combine the benefits of video and native ads. They blend well with their surroundings but, at the same time, keep the user engaged,
  • In-article video ads are displayed while the user scrolls through the text.

Additionally, don’t forget that many types of programmatic video ads can be either skippable (one of the most popular ad formats for YouTube video ads) or non-skippable. The first option means the viewer can decide to stop watching the ad after a fixed time has passed and get back to watching the video content, but the publisher still gets his money for its display.

Another distinction you should know about is the way in which a video ad starts to play. One method involves triggering playback after the user clicks on or hovers over the ad. Alternatively, an Out-stream video ad starts with autoplay with no sound. To turn on the sound, one has to click on an advertisement.

Benefits of programmatic video advertising

Video ad buying and selling brings numerous benefits to both advertisers and content creators. Here’s the good it can bring to the publishers:

• Video ads typically mean higher CPMs (Cost Per Mille – it’s an indicator of how much you can earn for an ad displayed in your ad slot) when compared to traditional display ads;
• When you decide to add video ads to your already existing ad layout, you diversify your revenue streams. It can help to mitigate potential risks like changes in audience behavior, shifts in advertiser spending trends (that relying on one ad type might bring);
• In addition to the advantages of video ads, numerous profits are associated with the fact that the ads discussed in this article are sold via programmatic auctions. The benefits of programmatic advertising, among others, include a higher fill rate thanks to access to multiple SSPs (it’s because when a website connects to many Supply-Side Platforms, there’s a better chance they’ll find the perfect ad to put on a site) and all advantages connected to the fact that the auctions are automated. This kind of auction saves time (because selling ad inventory manually is a long process) and minimizes the risk of human mistakes;
• When it comes to grabbing the attention of potential customers, video ads outperform traditional banner or text-based ads. They offer a visually dynamic way to communicate messages, resulting in a higher level of user engagement.

Disadvantages of programmatic video advertising

Just as all that glitters is not gold, there are also some defects in programmatic video ads or obstacles to publishers’ way of using them:

• You need to meet specific technical criteria. For example, the video player you opt for has to be able to serve specific kinds of ads;
• Some users might dislike video ads, especially those with sound that use autoplay. It may be an unexpected surprise for them to suddenly hear an audio from an ad. Thankfully, it’s against Google policies for an Out-stream ad to begin playing with a sound on, so situations like this rarely happen;
• Oftentimes, ad-blocking software targets video ads, making them unavailable to users and causing potential revenue losses.

Programmatic video advertising best practices

Now, let’s concentrate on finding out what digital publishers can do to exploit their potential when it comes to programmatic video advertising:

• One of the first things to consider when going for video ads is their types. Think about their pros and cons – for example, native ads (that come in many formats like In-stream and Out-stream) blend well with the environment, thus providing a good User Experience. If you have video content of your own, you have to consider Pre-roll, Mid-roll, and Post-roll ads;
• Just as with other ad formats, ad placement is crucial when it comes to video ads. A common practice is placing them, for instance, below an important area of your website. What’s vital, it’s best not to opt for too many video ads. In most cases, two to three per page will be just enough and won’t cause banner blindness. If you are unsure about how your ad layout should be constructed, you can trust tools whose main purpose is finding the right ad placements – Ad Mapper is one of them! It analyzes user activity, ad formats, sizes, and more to tailor the best ad layout for your content;
• Allow only high-quality video ads to be displayed along with your content. You can ensure that by collaborating with solely the best and verified ad networks;
• Time is money. With video ads being too long, you can lose your user focus. The maximum video length recommended by Google is 15 to 30 seconds, and those above 30 seconds are unlikely to be fully watched;
• Finally, remember to test different solutions! A good idea is to check different ad placements, formats, and SSPs and see whether your ad revenue changes. However, you can save your time and go for advanced solutions powered by machine learning, like the optAd360 AI Engine. Automated analysis of your website and the ad inventory allows for their continuous optimization. To serve the best ad creations in the well-thought-out ad slots, Supply-Side Platforms are chosen based on popularity and demand for specific formats in different world regions. What’s more, you can get all of that and more without complex scripts, just by implementing a single tag!

Video ads – beneficial also in the long run

The realm of video advertising has progressed significantly since its beginning, and it’s still projected to grow in upcoming years. According to Statista, video ad spending is forecasted to increase at a yearly rate of 6.04% from 2024 to 2028. What’s more, in the universe of digital advertising, video ads offer publishers many benefits. From increased revenue and diversification of income streams to higher user engagement. What’s not to like? If you’d like to exploit video ads’ potential by adding them to your ad inventory arsenal – don’t wait and join our network by filling out the registration form!