Brands have traditionally favored television because it offers scale, speed and untold levels of creativity, all in a single channel. Increasingly, though, these advantages can be replicated online.
Now that programmatic is going mainstream, driven by stellar results, it's no surprise that brand marketers want in on the action. And that, my friends, means programmatic video is hotter than hot.
If you're quietly saying to yourself, "Ok—but what's programmatic video?" you're not alone.
That's why we at Chango made the video above, "How to Explain Programmatic Video to Your Grandma." It takes a simple and straightforward approach, laying out all the basics of programmatic video in less than two minutes. Here are the main takeaways:
Anytime, anywhere TV
Programmatic video targets consumers of all ages who no longer rely on cable to watch their favorite shows, preferring instead the "anytime, anywhere" convenience of digital channels.
Interactive, personalized video ads
Programmatic video ads are targeted and highly relevant to the viewer, but they're also interactive. A consumer can click for a coupon or access related brand content right then.
There's just not enough good to go around
Marketers face a shortage of quality video inventory within open ad exchanges, and many publishers prefer to sell their inventory directly to agencies and brands in order to get higher prices.
So what's the solution?
With a shortage of quality inventory in the open ad exchanges, advertising vendors, such as Chango, must either tap into additional sources, such as those PMPs, or enter into an exclusive relationship with a publisher.
How do marketers measure 'quality' with video?
Not all open exchange inventory is bad. Advertisers tend to rely on a combination of video-specific metrics. These metrics, however, aren't always reliable.
So what's wrong with viewability?
Viewability is the shiny new metric, but it doesn't buy you much in terms of video. The Media Rating Council's definition of a viewable ad is one where 50 percent is in view for just one second.
And we've got to get beyond the click
With video, advertisers need to measure not just the volume of clicks they receive, but the quality of those clicks. This might involve strategies like looking at site analytics, bounce rates and subsequent user engagement, such as clicks on the store locator tab on a landing page.
So, is programmatic video a complicated business? Yes. But it's a business that's aware of its challenges and limitations, and is actively working to resolve them.