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What is programmatic video advertising?

By Sandrine Tessier,
Content Strategist
April 26th 2018

Video advertising has become mainstream and prevalent the past couple of years and currently it is one of the most popular ad formats in digital advertising. Emarketer predicts that by 2019, 77% of all US digital video ad dollars will be spent programmatically. So It’s no surprise when you hear that marketers plan to increase their video advertising spends by 25% this year alone. Let’s look into what programmatic video advertising is and why publishers should be leveraging it to monetize their video ad inventory.

So, what is programmatic video advertising?

Programmatic video advertising - as the name would suggest - works in the same manner as programmatic display advertising, as it uses the same technology infrastructure to deliver video ads. Publishers leverage exchanges and sell-side platforms (SSPs) to expose video ad inventory to thousands of buyers who are purchasing these ads using demand-side platforms (DSPs).

Discover more about programmatic advertising

What are the different types of video ads?

Just like with programmatic display advertising, there are multiple types of ads and options for sellers looking to leverage video ads.

  • Instream

Instream video ads are delivered before or during existing video content which is available on many websites, such as YouTube. These ads are usually 15 or 30 seconds in length and can be longer with “skip” option enabled.

Instream video ads can be referenced as pre-roll, mid-roll and, post-roll, which is defined by the position of the ad relative to content. The ad at the beginning of the content is called pre-roll, middle of the content would be mid-roll while ads at the very end of the content are post-roll. This gives publishers and content creators more flexibility to deliver advertising to their video content and generate more revenue.

  • Outstream

Opposed to instream, outstream video ads are not tied to existing video content and don’t need pre-existing video players to run. They are typically located inside article content, and usually appear in the page break of an article.

The main appeal of outstream video ads is that it does not need existing video content to generate revenue, and publishers which don’t focus on video can tap in to existing video demand and leverage video advertising.

  • In-banner

In-banner video advertising is pretty much a display ad format that is integrated with video. Historically, in-banner was frowned upon because it was used to serve video ads within standard one sometimes without the client’s knowledge.

However, with the Coalition for Better Ads and other standards being set for video advertising, in-banner is now a popular format as it is considered a high-impact one (e.g. 970x250 video billboards).

Should publishers leverage video ad inventory?

The simple answer is: Yes. For publishers with video content, it’s an easy solution to leverage instream video advertising since it is in high demand and can generate very high eCPMs. For publishers that don’t create video content, outstream video ads are a great way to generate incremental revenue and bring unique video demand to their site.

In the past video advertising could be considered intrusive which could lead to a bad user experience, however it matured over the years and publishers are now in a good position to monetize their video ad inventory while still offering a great user experience to their website visitors.

The Coalition for Better Ads further strengthens publishers ability to conciliate video ad inventory monetization and user experience with its new sets of standards which prohibit autoplay video ads with sound.

To learn more how district m can help you leverage your video ad inventory, contact our experts today!

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