According to results from a recent survey – a large majority (70%) of US advertisers have shifted a portion of their TV ad budgets to programmatic online video ads in the past 12 months. The survey from ad tech firm Unruly also found that three-quarters (75%) of advertisers surveyed said that programmatic will account for a share of their overall online video investment.
Emotional/psychographic targeting was cited as the most desired capability in programmatic video ads by US respondents (34%) followed by demographic targeting (28.3%), prospect-based targeting (27.1%) and behavioural targeting (23.3%). Viewability and completed views were cited as the top ways to measure of programmatic video ad success by respondents (24.7%), followed by views (23.9%) and interaction rate (22%).
Mobile is an area of particular focus. Advertisers are interested in the fact that they can access consumers anywhere, anytime. Content owners and network operators also have a wealth of data about their subscribers, like location data, demographics and psychographics, which can be brought to bear for personalized, relevant messaging.
That’s not to say there aren’t on-going concerns. In the Unruly survey, about a fifth, 20.8%, said they question the quality of inventory, while others worry about low levels of view ability (17.7%). They also wrestle with a skills gap and lack of internal expertise (158%) and ad fraud/bots (15.8%). Also, the survey found that the targeting is not necessarily leading to offline sales (45.1%), nor resulting in greater engagement with content (38%).
Further, a recent study by the Association of National Advertisers and Forrester found that only 23% of marketers said they understood programmatic and were using it to execute their campaigns. This is despite the fact that more than half of US publishers reported selling their premium video ad inventory programmatically in August 2014 (Adap.tv), while mega-brands like American Express and P&G vowed to shift the majority of their ad spend to programmatic by the end of 2014.