Video ads in the US are increasingly being bought via programmatic methods, moving budgets away from TV commercials in the process, according to new research. The study, from Adap.tv’s fifth-annual 2014 US Video State of Industry report, quizzed more than 350 media and marketing professionals. Factors such as greater brand and publisher adoption of programmatic, […]
Video ads in the US are increasingly being bought via programmatic methods, moving budgets away from TV commercials in the process, according to new research.
The study, from Adap.tv’s fifth-annual 2014 US Video State of Industry report, quizzed more than 350 media and marketing professionals.
Factors such as greater brand and publisher adoption of programmatic, more private marketplaces, and increasing digital video spend contribute to a vibrant marketplace that has finally started to mature beyond just real-time bidding and auction models, to putting data to work for all involved.
Today, more than half of publishers surveyed said they make their premium inventory for sale via programmatic environments.
Further, it is evident that sweeping publisher adoption of programmatic is happening because that’s where the buyers are.
Brands said 60 percent of their online video ad spending has gone programmatic, putting them a good 20 points ahead of their agency buying counterparts.
These factors contribute to a vibrant marketplace that has finally started to mature beyond just real-time bidding and auction models to putting data to work for all involved.
Key highlights of the report include:
• VIDEO AD GROWTH IS IMPOSSIBLE TO IGNORE.
Advertising spending on online video increased for the 5th consecutive year, and buyers claim spending will grow across the board in 2015. Publishers are reaping the benefits of diversified selling channels, inclusive of programmatic.
• DRAMATIC SPENDING SHIFTS FUEL THE DIGITAL VIDEO REVOLUTION.
Agencies and brands are increasingly tapping into broadcast and cable TV budgets to fund their digital video ad spending.
• PROGRAMMATIC IS OVERTAKING PUBLISHER-DIRECT BUYS.
Brands and agencies are moving away from buying direct from publishers and ad networks, in favor of buying through exchanges and DSPs. With 60 percent of their budgets going to programmatic channels, brand advertisers are most aggressive with their spend reallocation.
• DATA-DRIVEN, PROGRAMMATIC TV HAS ARRIVED.
Video buyers are already running data-driven TV campaigns, evidenced by the 40 percent of brands adopting the practice. Brand budgets for programmatic TV buying are predominantly coming from traditional TV spending, not from digital or incremental spending.
• VIEWABILITY VEXES BOTH BUYERS AND PUBLISHERS.
Brand buyers and sellers cited ad viewability as the most problematic issue for them, compared to verification/placement and bot fraud, which ranked lower. Only 25 percent said they are up to speed on these issues, indicating a need for additional education.
