What is programmatic video advertising? (and why it’s smart to use it)

Digital advertising has totally changed the landscape of today’s business. In today’s digital world it is really difficult to gain the attention of the consumers with a whole lot of websites, applications, and digital properties being viewed each day. Earlier people had to fully devote an ample amount of time just to market their products. From dealing with advertisers themselves for negotiation, requests for proposals, quotes, and tenders things have come a long way.

These days many people are relieved to have programmatic advertising which serves as a handy way to contact companies. This is also termed as the future of digital marketing. Many of you must have heard about the programmatic ad but are not aware of the full details and functionality of these ads then we are at your rescue.

The scene of digital marketing has really grown and become so diverse to include each facet of business in it. Whether it be video ads or advertising through writeups or sales letters, digital marketing has definitely proved to be the key strategy for the growth of any business. In this article, we will be breaking down what programmatic advertising is, what are its benefits, how to make them, types of programmatic ad formats, and other necessary details. Let’s begin!

What is Programmatic video advertising?

Programmatic video advertising is the use of software to buy digital ads in real-time instead of going through human negotiations and pre-set prices. In simple words, it is the automated buying and selling of online ad. Due to this, you can save more time for the optimization and improvement of ads. 

The traditional or offline method was very expensive, extensive, and hectic with no functionality to measure ROI. But, programmatic ads rely less on humans and more on AI or programs to display ads. It exists in digital channels like mobile, video, social, display etc. 

Earlier only bigger brands and media agencies used it, but now self-service tools help smaller brands to compete with large brands without having to spend a fortune on middlemen. With so many advantages available for you, wouldn’t you want to be a part of such a smart advertising campaign that reduces your efforts and gives you the best results? If yes, then let us dive into the details of programmatic advertising. To start with we will discuss the benefits.

Benefits of programmatic video advertising-

As compared to traditional advertising, programmatic advertising undoubtedly has an upper edge over it. In this section, we will be discussing the usefulness of using programmatic advertising –

  1. Provides real-time insights – Ever tried cooking a new recipe without a recipe book? Even if you did it wouldn’t have turned out as you expected it to be. Facts, figures, and feedback are very necessary to take your advertising or marketing campaign in the right direction. In traditional advertising, it is very difficult for you to track the progress. Take, for example, a magazine, where your ad is published. After your ad is published you are not able to know how many people saw the ad and how it impacted them. But with programmatic video advertising, advertisers can get real-time information about the progress and performance of their ad campaigns. Further, this data can be used to modify the marketing campaign and orient it in a better direction.


  1. Planned utilization of budget – Every marketing campaign has a budget and when you make traditional ads these budgets cannot be utilized in a proper manner. The money gets spent without yielding good results. Programmatic video advertising helps advertisers to invest their budget in the right way and gives them great results in turn generating better ROI.


  1. Personalizes your campaigns – In contrast to traditional advertising, programmatic video advertising allows you to make adjustments to the information you have provided. You can change the parameters of the ad the way you like. Moreover, you are free from long tiring meetings involving half-hearted negotiations. Thus, due to its quick and easy to tweak nature programmatic marketing campaigns are preferably the better option.


  1. Powered by an algorithm – This benefit can be noticed in the name itself. Programmatic ad means you don’t have to invest so much of your blood, sweat, and money to build contacts but let the algorithms do the work. There is no need to rush to several meetings the whole day and not get a satisfactory result. Programmatic video ads, just need information from you so that through that information, it can make the correct decision.


  1. Proven results in targeting – It is really hard to place video ads in the exact place where the target audience visits. Thanks to programmatic ads that the behavioral data is used to find the target audience and display the video ad which is the best for them. For instance in traditional ad settings, after placing a video ad we didn’t know what age group of people is watching it but that’s not the case for programmatic advertising.


  1. Pleasant experience with no frauds – Programmatic advertising offers transparency and keeps advertisers away from frauds in the advertising business. This is made possible by blocking fake bot traffic and pre-roll ads. An ad network is completely a safe place.

Now that we know about the benefits of programmatic advertising one common ad tool that crosses our minds is Google ads. Is that a type of programmatic advertising? You will be able to answer this section.

Are Google ads programmatic?

Google ads are quite similar to programmatic ads in terms of getting to a target audience through auction. Further, both of them have a common motive to reach an audience based on information and analysis.

Google ads give you ROI and conversions which are maximized through proper optimization. It is accessible at a low cost and does not need a lot of capital investment. But, there are some shortcomings of Google ads. They don’t have reach as programmatic video ads do. Creative freedom is restrictive in Google ads while programmatic advertising gives you creative freedom.

Therefore, Google ads can be similar to programmatic ads and work in a similar way but they are pretty much different than each other.

Yes, Facebook is programmatic advertising which allows users for ad buying in digital ad spaces in real-time from website owners across an ad network. It follows a type of ad format called DSP (Demand Side Platform). Thus, Facebook is the right place to advertise. In the next section, we will talk about what DSP and SSP are and how they are different from each other.

What is the difference between DSP and SSP?

DSP also is known as Demand-side platform and SSP also known as Supply-side platform are two different tools that work with programmatic advertising. DSP is an automated form of managing ads without involving any manual methods. It basically involves an advertiser who signs up with it and is connected to an ad exchange. SSP is a publishers tool who use it to manage their ad display space. DSP buys programmatic ad space for a very low rate while SSP sells that ad space for a high price.

Nowadays, almost all people use smartphones for their work. Mobile apps make our work easy, so it is convenient. Mobile app advertising is the very necessity of app marketers to reach their target audience. So many marketers use this opportunity and incorporate it with in-app advertising to boost their business strategy.

The programmatic advertisement offers many benefits which we have already discussed. . Here are some tips on how you can optimize programmatic advertisement campaigns.

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First one is to enhance ad production. Mobile is a very powerful device because it’s a direct medium to target people. Most effective ad campaigns displayed on the user’s daily life. Your video ad placements should maintain your target people from screen to screen in a programmatic ad. To make your ad production easier and more efficient your ad must be responsive and creative. You can resize the ad and fit the screen size of the device.

  1. Proper ad placement can be a great marketing strategy if it is available to the right audiences. You can use one creative ad for all sizes of different operating systems. Responsiveness is a very nice idea to fit the ad to screen sizes of different devices like mobile,laptop..etc, user can interact easily with this feature.
  2. Track campaign performance, you can constantly check your campaigns and modify according to the growth day by day. Marketers will use mobile to evaluate the performance of ad campaigns because it provides real-time report data.
  3. Refresh your ad creative, to boost the campaign performance you need to refresh ad creative regularly because the customer will get bored when they see the same creative ad on different channels. It seems like the same video ad is placed multiple times. Therefore, to overcome this issue every time a creative ad has to be refreshed as a new one.
  4. Strong data for people.

Most of your programmatic campaign is to boost target people, finding the right people can help you to boost your ads and that can be done through different sources. It can be data that you created for mobile app users, data that you gain from different media activities based on device type, application software, Operating system, data that came from data management platforms etc. This helps you to improve your information from bid requests.

Mobile app advertising plays a vital role in the future for programmatic video ad buying by using innovative solutions.

Once the video ads are published with programmatic advertising, then some algorithms assess user statistics, which can be based on user behavior, what type of apps the user is using, and how he interacts with that app. If it is displayed on user activity if someone clicked or watched an ad that type of ads displayed on that user app. The main purpose of the ad to attract the user is to click on that video ad. The video content displayed is relevant to a specific user.

If a user searched for one video content, the ad must be relevant to that video content and display that type of ads on the user mobile. So, by targeting ads to specific people then programmatic ad marketing campaigns productivity can be increased. 

Using user data to decide on where and when to bid for space.

The programmatic display works based on the following process.

Publishers create space with SSP(Supply- Side Platform) and connect their SSP with an ad-Exchange. With the help of this publishers provide their advertising space automatically.

Advertisers fix their target people, budget, cost, and other required details with their DSP(Demand-Side Platform) and connect to ad-Exchange. Through this, advertisers use software to buy ads automatically.  This real-time bidding and media buying happens in very little time.

If a user visits a website, all information about the user is sent to the ad-Exchange, the ad-Exchange is the digital place where to buy and sell ads.

If user information is relevant in the advertiser to target people, they enter into the auction for RTB(Real-Time Bidding) where buying and selling of ad space occur in milliseconds.

The highest bid of the advertiser will win the ad space for programmatic RTB and his ad will be published, and then the publisher will get paid.

So, if you want to get into the world of programmatic video advertising, use OFFEO. It is a very easy way to make your own ads through its free ad maker.

You can add your own customization to our ready-made templates or create your own. First, you have to create a free account with OFFEO, and then add the product that you want to advertise, add a logo, lucid texts, eye-catching graphics, exciting music, and all the changes you want to make. You can do that all by yourself, there is no need to hire a professional. It saves your time and money too. Then export it and download your created ad to your preferred social media platform size.

Chao Quan Choo

Chao Quan Choo

UI Designer at OFFEO