Follow The Dollars Toward Video Advertising’s Unstoppable Growth

Forbes Agency Council, May 9th, Dvir Doron, CMO of Cedato, has over 18 years of leadership experience in marketing, from start-ups to publicly traded global corporations.

TV is still an unquestionable behemoth when it comes to advertising, but digital video has become the fastest growing medium, driving the overall digital spend to soon surpass U.S. television spend for the first time in history.

As digital revenue continues to climb in the U.S., it’s predicted that most video ad revenue will soon become completely automated. Alongside this growth in digital video advertising comes the rise of technologies and processes that successfully deliver these ads.

The Popularity Of Programmatic

Advancements in technologies will minimize ineffective ad placements and deliver inventory with far more efficiency and more competitive rates.

In 2016, programmatic video ad spending was projected to reach 73% of total digital video ad spend. And by 2018, that number is expectedto reach 82%.

Now, header bidding — a technique where publishers allow multiple demand sources to bid on inventory simultaneously —  has become a topic du jour and is taking the programmatic landscape by storm with the promise of increasing coverage, yield and fill rates.

In video header bidding, accessibility has made it easier for a diverse group of players to opt in, but possible challenges loom for those who use multi-channel platforms to distribute their content.

While there are still some inconsistencies in the way header bidding is automated and managed, it’s been mostly welcomed as a golden opportunity for publishers. Header bidding ultimately allows them to sell more ads, which is the bottom line, of course.

Native Placements

Native video placements, which are projected to account for 74% of U.S. display ad revenue over the next four years, can draw in extensive audiences and significantly reduce the effects of ad blocking when deployed correctly.

As the industry progresses and offers new niche services, publishers will be able to offer their audiences dynamic brand experiences that are customized to each person’s interests. Thus, they’ll be able to multiply revenue streams by offering next-level performance.

But there are drawbacks. Native video placements can be difficult to process because, unlike native static ads, videos have to load first and then autoplay when the eyes are on that part of the screen. Standard linear ads don’t necessarily have this problem. If native placements fail to load, users will simply continue scrolling past an advertisement and publishers will be left with a wasted opportunity.

Direct campaigns remain the industry standard for distributing outstream. However, advanced video solutions like header bidding will enable native easier to visualize and consume. Businesses that work with programmatic industry experts will be able to deliver transparency without being tied to channel-specific solutions, so choosing the right technology partner is key in adding value.

Cross-Channel Delivery

Video advertising formats are still evolving, and the need for technologies that can handle the leap is essential. Unsurprisingly, the center of the multi-screen content universe is mobile.

In the past year, over half of all online video was viewed via a mobile device, and by 2019, the number of users watching video on mobile in the U.S. will explode to more than 175 million. Advertisers can count on cross-channel video to deliver content more fluidly to users across websites, social networks, mobile devices and connected TVs.

It goes without saying that the target user should always be your main concern. To achieve multi-channel campaign success, capture them at the start of their path to purchase all the way to completion. It will help keep your brand top of mind.

In an ultra-competitive advertising landscape, creative content must be engaging and align with the user’s sensibilities. The more a brand utilizes today’s cross-platform ad technology, the better chance it has in building the most personalized and contextual ad experience to users.

Fueled by the massive growth of platforms that are embedded into our everyday lives, it’s unlikely we’ll see video ad spend slow down anytime soon. People’s appetite for quality content continues to be strong, and digital video platforms will keep evolving to fit their viewing habits. In the future, there will be no shortage of space for brands to deliver their messages, and you can count on ad revenue climbing to astronomical heights.

Although Facebook and Google continue to flourish by a wide margin, there’s plenty of room for other players in the industry to make significant gains. Mobile and social have upended traditional advertising as we know it, and advertisers will surely continue to reap the benefits.