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The Streaming Revolution: How Digital Video is Gaining Importance in the Programmatic Landscape

Frequence
Written By Frequence
On Feb, 8 2022
5 minute read

Streaming video is dominating today’s digital landscape with the rapid expansion of programmatic advertising. It’s estimated that programmatic ad spending will reach an all-time high of $133.04 billion by 2023 with digital display advertising accounting for 91.1% of all programmatic revenue (eMarketer). With the emergence of The Streaming Revolution, it’s not hard to see why programmatic advertising has become so popular. Programmatic buying has leveled the playing field and allowed small businesses to compete with big-name brands – all while removing the friction that was previously required to buy targeted digital video ad space. Programmatic buying (or programmatic advertising) is an automated process that allows advertisers of all sizes to buy and sell digital ad space in real-time without being constrained by existing channels or networks.

The Streaming Revolution

The digital market is constantly evolving, reaching new heights every year. Thanks to The Streaming Revolution, consumers always have unlimited access to stream content on-demand using any device with an internet connection. This emerging trend has given way to a proliferation of Subscription Video-On-Demand (SVOD) services, with billions of hours consumed each month. In 2020 alone, CTV usage skyrocketed to 4 billion hours per week, up 81% from the year before (Nielsen). This explosion of digital media consumption not only provides opportunities for advertisers to reach massive amounts of consumers in compelling ways; it also gives small businesses access to premium networks like never before.

Programmatic Advertising in the US (2020)

After the pandemic year of 2020 and more consumers taking advantage of digital subscriptions for online streaming services, the demand for programmatic media has never been greater. On average, more than half of all US marketers use some form of programmatic advertising—and this trend is only getting stronger (IAB). What does that mean for marketers? For starters, it means there’s a huge opportunity for brands to reach new audiences. Local advertisers that have focused on traditional media in the past stand to benefit by shifting at least part of their marketing budget to capitalize on new opportunities in digital display formats.

Market Trends in Digital Video and Streaming Audio

In an on-demand environment where people have greater control over what they watch versus traditional formats, audiences are far more engaged. Viewers are three times more likely to pay attention to online video ads on platforms such as YouTube and Hulu versus TV ads (Google/Ipsos). Changes in consumer behavior and viewing habits are responsible for some of the shifts we’re seeing in overall ad spending moving away from linear TV towards digital media. More than 80% of industry experts agree that advancements in digital video, Over-the-Top (OTT), and Connected TV (CTV) technology will accelerate the shift in both ad spending as well as media consumption habits over the next 12 months (IAS).

Marketing Strategies - Digital Video, Effective Video Ads, Relevance, Attention

Heavily invested advertisers in online media have already started to move dollars away from top-of-funnel tactics like paid search and display advertising to leverage the power of digital screens. As a result, programmatic has been gaining popularity quickly thanks to its ability to serve ads across premium publisher networks as well as multiple devices such as PCs, tablets, smartphones, smart TVs, and OTT players. Streaming ads can bring significant benefits by injecting quality content into audience streams at opportune moments. Research shows that brand recall is 46% higher when consumers view an advertisement on TV and streaming devices as opposed to social media, websites, and mobile games (tvScientific). The same research also shows that 33% of consumers bought a product after seeing it advertised on TV or an online streaming service.

Maximizing Opportunities with Programmatic Advertising

Programmatic technology offers incredible incentives for advertisers; it gives brands of all sizes unprecedented control over how they interact with consumers across various devices and environments. Today, you don’t need a big budget to use programmatic marketing. And, if you’re a local advertising agency working with a tight budget, this allows you to get up and running fast while scaling your media spend to reach a wider audience. That translates into more opportunities for brands to connect with consumers when and where they are most receptive.

With programmatic advertising, brands can reach a large audience quickly, efficiently, and at scale. However, all too often advertisers feel they don’t have access to certain channels due to a lack of resources or experience. With programmatic buying capabilities, small and mid-sized advertisers now have access to premium networks that used to be out of reach without a dedicated buying team. This has given advertisers thousands of options in terms of premium ad inventory, creating more opportunities for brands to associate themselves with high-quality content through online video platforms such as Hulu and Roku.

The Role of Advertising Technology

The key to programmatic success is using the right advertising technology. Programmatic buying platforms like Frequence allow advertisers to streamline digital media campaigns by providing them with an easy way to automate ad delivery. By leveraging the right advertising technology, smaller brands and even established ad agencies can create more effective campaigns while spending less time dealing with logistics. As advertisers continue to look for additional ways to use their available budgets, companies that specialize in programmatic advertising will become increasingly valuable as part of any campaign strategy.

There are many reasons why programmatic advertising is one of the fastest-growing segments in digital marketing. By lowering the barriers to entry, smaller brands and advertisers now have access to a scalable solution to compete and grow their business. At a time when consumers’ attention is more fragmented than ever, digital video products help brands – large and small – capture and retain customers by offering a way to stand out from the competition using high-performing cross-channel tactics over traditional media.

Find out how an all-in-one advertising solution can help you plan and manage programmatic campaigns across different ad formats and channels. Request your free demo today.

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