State of the Video Industry - Expert Voices: Part 2: Programmatic Ubiquity is Pushing the Video Industry Forward

February 29, 2016

In the second installment of an exclusive four-part video series that dives into key findings from our latest State of the Video Industry report, industry experts share their insights on the state of programmatic video across the buy and sell side. Stay tuned as we continue to unveil how industry leaders are using consumer habits to drive their video, mobile and branded content strategies.

 

Programmatic, no longer a buzzword, but now a necessary tool that buyers have harnessed over the last few years in order to have successful digital strategies. It’s projected that 38% of all digital video ad spend will be bought programmatically in 2016, totaling $5.37 billion.*

Advertiser adoption of programmatic has long been a clear trend, but how is it faring on the sell side? According to the sixth-annual State of the Video Industry report survey, US publishers are increasing their programmatic inventory in order to keep up with the demand from buyers. In fact, the advantages of programmatic are just recently becoming more evident, igniting adoption that is catching up to the buy side for the first time. Almost mirroring the 91% of buyers using programmatic, 88% of publishers claim they are now selling their video ad inventory programmatically; reserving an average of 42% of their total video inventory to programmatic--a 12% increase from the year before. Half of sellers are also making their premium inventory available programmatically. As publishers continue to become more adept at programmatic, it is also creating a better ecosystem for buyers via private marketplaces, which are only growing in use on both the buy and sell side.

However, despite the advances in programmatic technology, challenges still persist and publishers are adapting to mitigate buyer concerns of quality inventory at scale. Two-thirds of sellers surveyed claimed they were establishing standards for video content and ad quality, as well as adding in-house support teams to help ease buyers’ apprehensions.

As marketers push more towards more data-driven buys, these massive increases in publisher adoption of programmatic selling will continue to drive the industry away from non-traditional buying, in order to allow advertisers to harness data, automation and standardization. As the efficiencies of programmatic become even more evolved, we will see increased advancements in the industry across the buy and sell side, especially when it comes to premium video.

In Case You Missed It:  Watch the first video in our State of the Video Industry: Expert Voices series to learn how industry leaders from A+E Networks, GroupM, Horizon and more are adapting to the shifting of budgets across screens. Stay tuned as we reveal more.

To learn more about how consumer demand is driving mobile, programmatic and branded video growth in the US and abroad, visit soi.aolplatforms.com.

Source: “Programmatic Video Advertising: Poised for Rapid Growth Despite ‘Premium’ Holdouts,” eMarketer, October 2015.

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