The digital video advertising market is growing quickly. The amount of inventory available and value of that available inventory is increasing rapidly, creating a perfect pathway for high ROI.
However the true star, difficult to ignore, has been distribution. In 2014, distribution via real-time bidding proved itself an efficient way of targeting, buying and optimizing digital advertising campaigns. Successful time and time again, RTB systems will take their place at the top of the advertising adtech game in 2015. According to a report by the Association of Online Publishers, RTB systems will account for 27% of U.S. ad spend in 2015, which is double the spend from 2011.
Our Product Monetization Manager, Ramak Ravanbakhsh, shares a few ways digital video advertising and RTB systems are having a significant impact on key players in the advertising ecosystem.
Digital video ads are a profitable monetization solution for publishers, generating higher CPMs than traditional banners or interstitials. As more publishers jump aboard the video ad train, the supply of video inventory begins to outstrip demand. As a result, publishers are slowly joining advertisers on RTB channels, allocating more inventory to RTB than any other channel. Mopub video inventory in January 2015 was around 42 billion impressions, which is 10 times more than the available video inventory in January 2014.
However, publishers are split when it comes to selling premium inventory on RTB. Some premium publishers are still hesitant to sell their premium video inventory in a public bidding system, believing they can achieve higher eCPMs through direct deals. One possible solution to this is the private marketplace where premium publishers can avoid the operational hassles of direct sales and maintain higher eCPMs.
Advertisers are funneling their television budgets into digital video ads for top notch performance and substantial savings. By moving their video online, advertisers are privy to a wealth of data on their target audience which can result in more effective targeting.
Buying online video inventory via RTB gives advertisers the opportunity to make an informed decision about whether to bid for that impression. In RTB systems, advertisers pay for the placement based on attributes like audience or context, rather than the more traditional fixed-price model of inventory buying. The systems either match targets based on audience profiles and bid for the placement, or don’t match and retain the bid for a different placement with a more suitable audience profile.
However, in order to use RTB systems effectively, advertisers need to have data warehousing capabilities in place that can analyze the data and adjust bidding strategies for audience response quickly.
Users shouldn’t feel interrupted by ads, ads should be contextually relevant and flow smoothly into a user’s experience at the right time. They will likely engage more with joyful, unobtrusive ads that match their profile.
RTB advertisers are less likely to invade a user’s experience with irrelevant and disruptive ads. Just by bidding on an RTB systems, they are carefully combing through a users’ profile and history before bidding on any impression. These advertisers spend money on users with highest engagement potential and provide users with a rich digital video advertising experience.
At Aarki we take care of the user experience as well as the bidding strategy to maximize engagement and ROI. Through native interactive video ads, we deliver a joyful and engaging ad experience. We carefully monitor analytics and A/B testing to maintain the highest level of engagement. And we keep a close eye on user profiles, only targeting them with the most relevant offers, which shines through in our conversion rates and high LTV users.
If you’d like to review your programmatic advertising strategies with me please email me at firstname.lastname@example.org.