The Rise and Rise of Programmatic Video
It’s no surprise that 2015 has seen a huge growth in the programmatic video space. Video brings the combination of sound, sight and motion further enabling a brand to spread their messaging in a more effective way than with display. Video ads receive more attention from the user, and increase brand recall, and messaging effectiveness.
In H2 alone, programmatic video revenue with Improve Digital increased by 523% with H2 set for a similar trend.
In H2 alone, programmatic video revenue with Improve Digital increased by 523% with H2 set for a similar trend. An increase was to be expected, with the overall digital video market estimated to be worth 9.5bn in 2016 (Source:eMarketer), but our growth figure is still far ahead of the market trend. Improve Digital’s video investment into the market is resulting in publishers moving more and more video inventory to the programmatic space. This brings publishers increased bid density on their premium inventory, providing them a new revenue stream to boost overall earnings in the fastest-growing sector of the digital market.
This year we’ve introduced a number of new video products – including In-Page and In-App – to ensure our customers can fully monetize their audience and content assets regardless of ad format or delivery platform (be it desktop, smartphone or tablet).
Our video products also provide publishers with a highly effective solution to boost revenue across mobile. Our client WPK has seen a 57% revenue growth on mobile due to the implementation of In-Page video.
While we are seeing a rapid growth in programmatic video, it’s clear that direct sales remain a strong part of a publisher’s video strategy. Clients who have adopted Improve Digital’s 360 Platform as their technology partner have benefited from being able to book all campaign types within one platform. Both their direct sales and programmatic compete for the same impression, whilst Improve Digital additionally provides safety controls to ‘push’ direct over programmatic when necessary, eliminating the risk of not meeting the guaranteed campaign goals. This is different from typical ad server based waterfalls, which do not allow programmatic to compete against direct campaigns for impressions. As waterfalling lacks true holistic optimization (as well as the ability for a direct campaign to be used as a second price in programmatic auctioning), publishers risk not receiving the true value of every piece of inventory.
Publishers who are optimizing fully via Improve Digital are seeing the greatest results. Swiss-based publisher Tamedia reported a 60% growth in their video revenues within 2 months of going live in the 360 Platform.
In 2016 Improve Digital will continue investing heavily in video, looking to unlock new potentials for both publishers and broadcasters in the programmatic video and TV space. Working closely with our parent company Swisscom, we’re further looking to bridge the gap between old and new media.