Compete Guide To The Different Types Of Programmatic Advertising
In 2019, programmatic video advertising accounted for almost half of all programmatic spending. Advertisers were projected to spend around $30 billion on videos in the US. The total US programmatic market was expected to reach around $60 billion. Keep reading to find out more on the different types of programmatic advertising!
Its clear video is the king of the hill when it comes to programmatic ad buying. As you might have suspected, though, it’s not the only type of ad out there.
After all, advertisers are spending almost $30 billion on other programmatic ads.
What types of advertising are out there, and which ones are important for your business? This guide will review six major types of programmatic advertising.
1. Video is the Most Popular
As established, video is by far the most popular type of programmatic advertising. The reasons for that are twofold.
First, there’s been a marked increase in video advertising across the board in the last few years. Marketers noticed a trend toward video content, which has been growing since 2016. People have long predicted that most of the content on the Internet would be video.
The long and short of it is people love video. It can take more to produce a great video, but it’s much easier for your audience to watch than read or even look at an image. The right visuals and sounds can communicate much more than even the best blog post or a pretty picture.
Improving technology is behind the shift of the Internet toward more video content. Faster streaming, better cameras, and more mobile use have transformed the text-based nature of the ‘net. With 5G and better WiFi connections hitting the market in 2019, you can bet this trend is only going to continue.
The Wide World of Video Ads
Another reason for the video’s dominance is that there are several different types. These can be divided into two major subcategories, in-stream and out-stream.
You’re likely familiar with video ads from both categories. In-stream ads include:
- Pre-roll, which appear before the video plays
- Mid-roll, which pauses the content
- Post-roll, which run after the video ends
Of these, pre-roll is considered the best. People are most likely to watch it. Post-roll ads are less likely to be watched, as viewers may navigate away.
Mid-roll videos are less popular among viewers because they interrupt the viewing experience.
Out-stream ads are somewhat less popular. They’re usually placed between articles. They often appear as pop-up windows, although they can be placed within the content.
Out-stream ads may fall victim to ad-blockers. This is especially true of those that appear in a pop-up window.
There are also in-display ads, which aren’t displayed in the video player itself. They appear in search results or video recommendations.
An example is YouTube’s right-hand panel, which gives recommendations for individual viewers.
It’s wise for advertisers to pick a mix of in-stream and out-stream ad types. With the right video strategy, you can reach more viewers.
2. Display is the Oldest of Types of Programmatic Advertising
Display ads are almost as old as the Internet itself, and like the Internet, they’ve been evolving.
Just what is a display ad? The term takes on a more specific definition in programmatic advertising. Here, it refers to ads that appear in one of three places:
- Header ads
- Footer ads
- Sidebar ads
If you’ve ever visited a website, you’ve likely seen these ads. In the past, you needed to buy them one by one from individual websites. Ad networks like Google Ads changed that.
Today, display ad programming has evolved beyond ad networks. Publishers push their available ad space through a supply-side platform. Advertisers use demand-side platforms to bid on ads in real-time.
Almost all programmatic advertising today, including video and other types, use a similar setup. Display ads are the originators, though. They’ve evolved as advertisers look for new ways to manage their time and budgets.
Display ads sometimes get caught up in ad-blockers, but they’re still a great addition to any strategy. They help you reach your audience where they are, on the pages they’re visiting and the content they’re reading.
3. Programmatic Goes Social
A common question for advertisers today is, “Is Facebook programmatic advertising?”
You bet it is. In fact, almost all social media advertising is programmatic in one way or another. Facebook probably provides the best example, since it has an enormous advertising network.
Like other platforms, Facebook takes input about the ad and the intended audience. Facebook then uses this information to connect the ad with available advertising opportunities. When there’s a match, Facebook displays the ad to a targeted user.
Much like other networks, Facebook considers many factors when determining which ad is served. You’re often not the only company trying to reach a specific user within your target audience. Ad quality, campaign budget and bid, and much more determine who the ad space is awarded to.
Other social media platforms, including LinkedIn and Twitter, have followed suit. These ads usually appear in-line in the user’s feed. Instagram also serves ads, using parent company Facebook’s technology.
Combine Paid Social with Organic Posting
Not all marketers love programmatic advertising on social media. The ROI is often smaller when compared to other channels, such as email marketing.
Nonetheless, programmatic advertising is essential for any good marketing strategy today. Why?
Your audience is on social media, so your brand should be as well. The big problem is the reach. It’s difficult for most brands to build an audience, and their posts may get buried in users’ timelines.
Social ads can help you get your message in front of the right people, even if they’re not yet following your account. With a combination of organic posting and advertising, you can conquer social media.
4. Audio Opportunities Abound
In a world of social media and video ads, audio opportunities often get the short end of the stick. If you’re looking to add to your digital advertising strategy, though, you should be looking at audio.
Why? You might think the days of radio are over, but many have switched to online streaming. Platforms like Spotify and Pandora have created new opportunities for advertisers.
With millions of users streaming every day, this is one opportunity you shouldn’t be passing up. Better yet, platforms like Spotify and YouTube allow you to mix video and audio ads. Audio-only platforms include Pandora, SoundCloud, and Google.
The Up and Comer
Another market to keep your eye on is the world of podcasts. Podcasting has become more popular in recent years. Many experts predict it will soon break into the mainstream.
One of the things that will help podcasters achieve mainstream status is the ability to monetize their podcasts. Podcasts often have dedicated followings, which could help you reach your target audiences.
Podcasts also provide niche opportunities, reaching small but dedicated audiences. Their audio-only format can help you cut the cost associated with producing video ads. Reaching new markets has never been easier.
Audio networks are now more common, which lets you take advantage of programmatic advertising. Using the right network and DSP, you can connect to many podcast advertising opportunities. You can connect with the right podcasts instantly, instead of searching out individual opportunities.
5. Don’t Forget Native Programmatic Advertising
If you want to make the most of programmatic advertising and automation, you should be looking at native ads. What’s so special about native ads?
These ads are different from the others explored here. They follow the form and feel of the medium they’re being served on.
Unlike display ads, native ads appear outside of the header, footer, or sidebar. In fact, they can appear in almost any location on a webpage or in an app.
Some common formats for native ads include:
- In-article ads
- Promoted listings
- Sponsored content
- Rewarded video ads
- Paid search units
- In-feed units
You’ve likely seen some, if not all, of these types of ads during your own Internet travels. In-article ads appear between paragraphs. In-feed units appear in a user’s timeline with other posts from the people they’re following.
Why Native Ads Work
Most users know the content that appears at the top of the page, the bottom of the page, and on the sidebar is advertising.
Depending on their Internet use, they may see hundreds or even thousands of these ads every day. As a result, they’re pretty good at tuning them out. In short, users have learned to ignore display ads.
As it turns out, they’re more likely to pay attention to native ads. In fact, some research has noticed people are more than 50 percent more likely to look at a native ad than a display ad.
While you shouldn’t ditch display ads just yet, you may want to make sure you have a budget for native advertising. With them in the mix, you can supercharge your advertising success.
6. Digital Out-of-Home Represents New Opportunities
The last on this list of types of programmatic advertising is certainly not the least. Digital out of home advertising, or DOOH, deserves a spot in any advertising strategy.
You may be familiar with traditional out-of-home advertising. This includes billboards and other types of ad spaces. Businesses adopting digital screens are also upgrading technology to make advertising smarter.
The arrival of DOOH makes out-of-home advertising much less complex than it has been in the past. There’s no need for a printer, for example. The use of technology can remove layers of complexity and make buying DOOH space much more streamlined.
It may even make it more affordable. This is especially true as digital screens make their way into businesses like restaurants, banks. You may even find them in doctors’ offices.
You can reach all these opportunities with the right programmatic platforms and strategies.
Some Honorable Mentions
These aren’t the only types of programmatic advertising available. You’ll want to keep your eye on a couple of other types, some of which are set to take the advertising world by storm.
Programmatic advertising for voice search is one great example. The advent of home assistants and smart speakers have made voice search more popular than ever. Like digital streaming platforms, these devices offer a great opportunity for advertising.
Television is another arena where programmatic advertising is just finding its legs. Currently, programmatic advertising is just a drop in the bucket for TV advertising. It could quickly become the next big thing.
With more people choosing to stream to get their TV fix, the switch is likely just around the corner. Subscription services like Netflix and Disney+ don’t serve ads. Other streaming apps have been experimenting with models where ad revenue drives profit.
This model allows them to offer the content to users for free, much like traditional TV. Programmatic advertising helps apps that want to offer free content.
It matches the publisher’s available ad space to ads that best fit the individual viewer. It’s a win-win for everyone. Advertisers reach their audience, people see more relevant ads, and publishers sell their ad space.
As these platforms continue to evolve, so too will programmatic advertising.
Is It Time to Go Programmatic?
As you can see, there are many different types of programmatic advertising. Whether you want to adopt social media channels or leverage connected TVs, programmatic ads are the way of the future.
Are you ready to adopt programmatic advertising for your business? Advertising has never been so simple or so smart.
If so, it’s time to get in touch with the experts. The right team will help you devise a great strategy, then put it in place the right way.