In the recent VideoNuze Ad Summit (June 14 2016), Cedato’s Ron Dick spoke about the realities and challenges facing programmatic and native video. Today we are sharing these valuable insights.
Remember those days when programmatic and native video inhabited two separate sides of the planet? Well, technology is finally bridging the gap. Finally, we’re able to integrate a programmatic process with native video.
Why is it good for us you ask? Outstream, and along with it the New Native Video, is the fastest growing category in video advertising. BI Intelligence predicts native ad spend will explode, growing from $7.9 billion in 2015 to $21 billion in 2018.
Outstream video ads, neatly embedded in content streams can provide a huge boost to programmatic options while embracing a viewer-first approach. Programmatic Video Outstream campaigns are capable of delivering a more fluid and far less intrusive user-experience at minimum latency, while integrating automated audience-based buying.
This is good news for an industry harping for automation, yield and control of video ads without compromising on viewability.
The key was finding a way of overcoming latency – the old waterfall trap. In theory, header bidding was supposed to solve the technology barrier. It was supposed to reduce inventory waste, eliminate pass-backs and make it possible for publishers to increase competition and maximize yield.
In practice; header bidding in programmatic doesn’t really work in a video environment. It mostly ends up delivering video campaigns with high latency and low fill rate. It is particularly problematic with outstream formats where tolerance to latency hovers round zero.
The reason header bidding in many cases fails dismally is because VPAID, the broadly used standard in the video industry needs to run on the client side, yet the results are not always transparent to the client.
At Cedato we rose to the technology challenge to meet our partner’s demands for programmatic native video with a highly engaging user experience. We designed a video operating system that enables our partners to build their own outstream of native video units and manage highly viewable campaigns, without the technology hitches and delays that compromise the viewer experience.