Premium video is going programmatic. So says Adapt.tv’s fifth annual study of marketers and advertisers, “The State of the VIdeo Industry.” As you can probably guess, video ad spending has been growing for the past five years, and mobile video has given that spend a big push. The “extra” money to buy online video ads is being shifted from both cable and broadcast TV budgets.
This year, for the first time,, more than half of publishers said they planned to make their premium inventory available programmatically. Did they do it by choice? Not really; they did it of necessity, because buyers have already shifted to programmatic. Brands said a full 60 percent of their online video ad spending has gone programmatic. Agencies are behind the curve here; only 40% of their spend is programmatic. Agencies who have made the investment to make programmatic one of their core competencies will win here, as the shift intensifies.
Admittedly, programmatic video has been around for a few years now. But it is gradually moving away from the auction-based RTB model to private exchanges and Deal ID. This combines the best of automated work flow with the personalization of buying and selling direct.
If agencies don’t get smart fast enough brands will take their online video spend in-house. In the past year, there has been a big increase in the number of brands that plan to take programmatic video ad buying in-house, saying their agencies to not have the capability to buy for them
The brands have probably realized that they own the best data, and that they can apply better targeting to their own video buys. Most brand campaigns are now data-driven, and most brands own a data management platform for both their own data and second party data made available to them by premium publishers.
Online video ad buying will probably continue at this hot pace through 2015, by which time we will be almost 100% programmatic, and beginning to reap the rewards of better targeting and smarter buys.