The Effect of Programmatic on Digital Video Advertising
Approximately $59.431 billion will likely be spent on programmatic digital display advertising in the U.S. this year. Of that, eMarketer believes that $29.24 billion (or 49.2%) will be allocated to programmatic video. Programmatic video is expected to account for about half of programmatic digital display spending by 2021 and continue to grow from there.
eMarketer estimates that, overall, 81.2% of digital video spend is now programmatically transacted. Over half of the money spent on programmatic video is put toward mobile, and no wonder. According to AudienceSCAN, available on AdMall by SalesFuel, 50.9% of U.S. adults identify as Mobile Video Watchers. About 70% of these viewers are active on YouTube and within the last six months, 30.7% have viewed a TV commercial on YouTube. They’re also 66% more likely than the average shopper to watch videos about products they’re considering and, last year, 38.3% were driven to action by pre-roll video ads.
As popular as mobile video is, eMarketer predicts that connected TV video ads will begin rising in popularity within the next few years. “Digitally native video companies like YouTube, Roku and Hulu are growing their ad businesses at a time when TV networks are opening more inventory to digital buyers, and as demand-side platforms (DSPs) are investing heavily in making TV ad buying more automated, targeted and measurable,” says eMarketer.
At the end of the day, it doesn't matter which digital video format advertisers choose. Programmatic will still be how the majority of transactions are made. Mobile Video Watchers, Online Video Watchers, and YouTube Users are only a few of the video audiences available on AudienceSCAN. These audience profiles provide insight on the demographics’ spending habits and advertising effectiveness. Check them out to make sure that your digital video advertising clients know exactly where to place their ads.