Programmatic Video Advertising: Best Practices for Publishers
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Digital video ad spend is on track to hit US$191.3 billion in 2024. The market is growing each year. As a publisher, you need to be aware of the latest trends of programmatic video advertising. Generally, this type of advertising automates the buying and selling of video ad placements. Publishers gain wider reach, efficient management, and potentially increased revenue through real-time bidding on ad exchanges. Compared to display ads in programmatic, video advertising gains more engagement and more profits.
Technologically, this works through Software Development Kits (SDKs) embedded in publisher websites and video players. These SDKs communicate with Supply-Side Platforms (SSPs) in real-time, sending data about the user and the video content. The SSP then participates in real-time auctions with Demand-Side Platforms (DSPs) representing advertisers. The highest bidder wins the right to display their ad to the user. Another way for this process is by using header-bidding technology.
Understanding Programmatic Video Advertising
What is Programmatic Video Advertising?
Programmatic video advertising uses technology to streamline video ad buying and selling. SSPs connect publishers with DSPs used by advertisers. Real-time auctions determine which ad appears for each user, based on factors like audience demographics, browsing behavior, and the content of the video itself.
To explain it in a simple way, imagine a bustling marketplace where people (advertisers) are selling tickets (video ads) to specific events (publishers` websites or video channels). This marketplace is run by an auctioneer (the ad exchange).
Publishers: These are the event organizers who have ad space available. They use a special tool (SDK) to tell the auctioneer (ad exchange) about their events (websites/channels) and the kind of people attending (users).
Advertisers: These are the people selling tickets (video ads). They tell another tool (DSP) who they want to reach (target audience) and how much they're willing to pay (bid) for each ticket (ad impression).
Ad Exchange: This is the auctioneer who brings everyone together. It receives information from publishers about their events and audience, and from advertisers about their desired audience and bids. It then runs a super-fast auction to decide who gets to sell their tickets (show their ads).
The advertiser with the highest bid wins the auction and their ticket (ad) gets shown to the relevant audience on the publisher's event (website/channel).
You can learn more about mobile programmatic advertising for app publishers in our blog.
Benefits of Programmatic Video Advertising for Publishers
Publishers can significantly boost their revenue implementing programmatic video advertising. In 2023, programmatic ad spend reached an estimated $558 billion, and this trend is expected to continue. Programmatic advertising offers wider audience reach through access to a vast network of advertisers on exchanges like OpenX or AppNexus. Additionally, it frees up time by automating ad management tasks like setting prices and generating reports.
Source: Statista
The main benefits of implementing programmatic video advertising are:
Increased Revenue Potential. Programmatic exchanges create a dynamic marketplace where advertisers compete for ad space in real-time. This competitive bidding often drives higher CPMs compared to traditional fixed-rate deals. Additionally, with programmatic, you can fill unsold ad inventory more efficiently, minimizing lost revenue opportunities.
Wider Audience Reach. Programmatic platforms connect publishers to a vast network of advertisers beyond their own audience base. This allows publishers to tap into highly targeted demographics and behavioral segments, reaching viewers more likely to be interested in the advertised products or services.
Streamlined Management. Programmatic automates many tedious tasks, freeing up publisher resources. Setting prices, generating reports, and ad trafficking become automated processes. Publishers can then focus on creating high-quality content and building their audience.
Data-Driven Optimization. Programmatic platforms leverage real-time data to optimize ad campaigns. Publishers can gain insights into audience demographics, interests, and viewing behavior. This allows them to tailor ad placements to specific audience segments for maximum impact.
Reduced Ad Fraud. Programmatic platforms employ sophisticated tools like Pixalate and DoubleVerify to detect and prevent ad fraud. This protects publishers from losing revenue to fraudulent ad impressions.
Programmatic Video Ad Formats
Programmatic video advertising offers a variety of formats to integrate ads into your video content. Each format caters to different viewing experiences, so choosing the right one can maximize engagement and revenue. Let's explore the three main formats:
1. In-Stream Ads. These are the classic video ads you see within the actual video player. They come in three subtypes:
Pre-roll Ads: These appear before the main video starts. They're great for grabbing attention upfront, but can feel disruptive if too long.
Mid-roll Ads: These pop up in the middle of the video. They can be a good option for longer videos, but placement is crucial to avoid interrupting key moments.
Post-roll Ads: These play at the end of the video. They're less disruptive but may have lower viewer engagement since some people might have already stopped watching.
2. Out-Stream Ads. These video ads appear outside the video player itself, often on websites or apps. They offer more flexibility in placement:
In-Read Ads: Imagine scrolling through an article with a catchy video playing alongside the text. That's an in-read ad, perfect for grabbing attention without forcing a video break.
In-Feed Ads: They are short video ads that appear among regular social media posts. That's the power of in-feed ads, ideal for reaching viewers actively browsing.
Native Ads: These ads take the form of the surrounding content, like a video playing within a sponsored article. They offer a non-intrusive way to showcase brand messages.
3. In-Banner Video Ads. These are smaller video ads that appear within display banners on web pages or apps. They offer a lightweight option for adding video elements to your ad inventory.
Choosing the Right Format
The best format depends on your video content, audience behavior, and advertising goals. Here's a quick guide:
For short, engaging videos: Pre-roll or in-read ads might be ideal.
For longer videos: Consider mid-roll ads placed strategically to avoid disrupting the flow.
For reaching new audiences: Out-stream formats like in-feed ads can be fantastic.
For subtle brand messaging: Native ads or in-banner video ads could be the way to go.
Try different formats and track their performance to see what resonates best with your viewers and brings you the most success.
Implementing Programmatic Video Advertising: A Step-by-Step Guide
Programmatic video advertising offers a powerful tool for reaching targeted audiences and maximizing revenue for publishers. This guide outlines the key steps involved in launching and optimizing successful programmatic video campaigns.
Selecting a Programmatic Video Partner
Choosing the right partner is crucial to achieving programmatic video success. Here are key considerations for a professional selection process:
Industry Reputation and Proven Results. Partner with established companies boasting a demonstrably strong track record in delivering results for advertisers within your specific industry.
Advanced Technology Stack. Ensure your partner offers a comprehensive programmatic platform equipped with the following features:
Ad Verification Tools: These tools guarantee your ads are displayed on legitimate websites, preventing fraudulent traffic sources.
Sophisticated Fraud Detection: Protect your budget from sophisticated click-fraud schemes through advanced detection measures.
Consider also factors like platform fees, ad formats supported, targeting capabilities, and reporting features when choosing your SSP.
Step 1: Prepare Your Video Inventory
Video Quality and Formats: Ensure your videos meet technical specifications for smooth playback across devices. Common formats include VAST, VPAID, and MoPub.
Content Categorization: Categorize your videos using relevant tags (e.g., genre, demographics). This helps advertisers target their ideal audience.
Player Integration: Integrate a video player that supports programmatic ad insertion. Platforms like JW Player and FreeWheel offer programmatic capabilities.
Step 2: SSP Selection
An SSP connects you to the programmatic marketplace. Here's what to consider when choosing one:
Prebid Integration: You could start with a header bidding solution from Prebid. Then opt for an SSP with a vast network of advertisers to maximize ad demand for your videos. Popular options include Google Ad Manager, OpenX, Microsoft SSP, Blasto.
Monetization Features: Look for features like private marketplaces and price floors to optimize revenue.
Reporting and Analytics: Choose an SSP that provides detailed reporting on ad performance metrics (impressions, clicks, etc.).
Step 3: Demand Partners and Dealings
Direct Deals: Negotiate deals with specific advertisers for guaranteed ad placements at premium rates.
Open Exchanges: Connect to open ad exchanges where your ad inventory competes for bids from a wide range of advertisers.
Private Marketplaces: Participate in PMPs where select advertisers can access your video inventory programmatically.
Step 4: Setting Up Your SSP
Video Ad Tags: Generate ad tags within your SSP that will be used by the programmatic platform to identify and serve ads within your video player.
Targeting Criteria: Define targeting options for your video ad inventory. This could include demographics, interests, and browsing behavior.
Pricing Models: Choose between various pricing models like CPM (cost-per-thousand impressions), CPCV (cost-per-completed view), and CPA (cost-per-action).
Step 5: Campaign Optimization and Monitoring
Campaign Performance: Regularly monitor campaign metrics like fill rates, video completion rates, and revenue generated.
SSP Reporting Tools: Utilize your SSP's reporting tools to gain insights into audience demographics, ad performance across devices, and geographies.
Best Practices for Publishers
Optimizing Your Video Content
Consider formats that perform well programmatically, such as in-stream (pre-roll, mid-roll, post-roll) ads that play before, during, or after a video, and out-stream (native video ads) that appear embedded within website content. Also you could implement AI ad personalization strategy.
Leveraging Data Insights
Use data from your website analytics and SSP to understand your audience's demographics, interests, and viewing habits. Leverage these insights to refine ad targeting without third-party cookies and attract relevant advertisers. For example, a publisher with a website focused on sports can use data to target their video ad inventory towards sports apparel brands or sports streaming services.
Setting Bid Floors and Yield Management
Set bid floors to ensure your ad inventory sells for a minimum acceptable price. Implement yield management strategies to optimize the value of your ad placements based on real-time data. For instance, you can set higher minimum bids for premium ad placements with higher viewability.
Measurement and Reporting: Tracking Performance
Track key metrics like fill rate (percentage of ad placements filled), CPM (cost per thousand impressions), and viewability (percentage of users who actually see the ad) to measure campaign success. Analyze these metrics within your SSP to identify areas for improvement.
Programmatic Video Advertising for Publishers
Programmatic video advertising offers publishers a powerful tool to increase revenue, reach wider audiences, and streamline ad management. With high-quality content, data-driven targeting, and strategic optimization, publishers can unlock the full potential of this growing advertising trend.
Publishers looking to monetize their website or app with Blasto have two main options. Prebid, an open-source tool, allows publishers to integrate Blasto alongside other ad exchanges, potentially leading to higher bids through real-time competition. Alternatively, publishers can connect directly with VAST integration. Regardless of the method chosen, Blasto offers publishers access to a wider pool of advertisers, potentially increasing their revenue through programmatic advertising. Please contact Oleksandr to start the integration within our platform: oleksandr.b@blasto.ai.