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The Real Pivot to Video: Programmatic Ad Spend Surges, Leaving Display Behind

The Real Pivot to Video: Programmatic Ad Spend Surges, Leaving Display Behind

It is not a secret that programmatic ad spend is experiencing growth year after year. However, not everyone acknowledges that this is largely due to the dominance of video advertising. Insider Intelligence's research reveals that video will be the driving force behind over 96% of programmatic ad spending growth this year.

Why is video ad booming?

Video's captivating and immersive nature has led to higher engagement rates, making it a highly effective medium for ad campaigns. This happens for several reasons:

Engaging and Captivating

Video ads provide a visually compelling and immersive experience for viewers, capturing their attention more effectively than static ad formats. The dynamic nature of video allows for storytelling and emotional connection, making it a powerful tool for advertisers.

Higher Engagement Rates

Video ads typically generate higher engagement rates, including click-through and completion rates. Viewers are more likely to interact with video ads, leading to better campaign performance and return on investment.

Growing Consumption of Online Video

The popularity of online video content has exploded in recent years, driven by the rise of social media, video streaming platforms, and mobile devices. As consumers spend more time watching videos online, advertisers have recognized the potential to reach their target audiences through video ads.

Mobile Dominance 

Mobile devices have become the primary medium for accessing online content, including video. With the increasing prevalence of smartphones and mobile internet usage, advertisers are leveraging video ads to connect with users on the go.

Advanced Targeting Capabilities

Programmatic advertising offers sophisticated targeting options, allowing advertisers to deliver video ads to highly specific and relevant audiences. Earlier this month, Adello announced the launch of YouTube GP, advanced contextual advertising for YouTube. Leverage GP's accurate and brand-appropriate targeting functionalities to confidently showcase your advertisements on the YouTube platform. The standout feature of GP lies in its seamless integration within YouTube, effortlessly interfacing with standard tracking systems. Unlike conventional YouTube promotions, GP transcends superficial targeting by penetrating into Audience segmentation, contextual channel alignment, dialogue comprehension, brand relevance, activities correlation, and keyword optimization. With GP at your disposal, your YouTube ad campaign has the potential to attain unparalleled levels of efficiency and viewer engagement.This precision targeting enhances the effectiveness of video campaigns.


Nevertheless, this growth presents challenges for web publishers as well. Some display ad dollars diverge towards the rapidly expanding retail media network category, leaving web publishers with a diminishing share of the pie. Those without a direct sales team, relying on multiple SSPs to monetize impressions, will feel the impact most intensely. 

As the programmatic advertising ecosystem evolves, strategic adaptation becomes crucial for publishers to maintain a strong position in this dynamic market. Navigating these challenges will be essential for sustainable success in the ever-evolving programmatic advertising landscape.

One particularly significant hurdle is the limitation posed by conventional targeting options, which primarily revolve around basic criteria like channel descriptions. This approach falls short of capturing the nuanced intricacies that shape viewer engagement and preferences. Advertisers often find themselves missing out on a wealth of valuable insights that lie within the content itself—such as dialogues, tags, and contextual features. These content-centric attributes play a pivotal role in gauging audience receptivity and resonance, yet they are frequently overlooked by traditional targeting methodologies. Thus, advertisers are left navigating a landscape where their campaigns might not align optimally with the content's essence, leading to suboptimal reach and engagement. 

The Real Pivot to Video: Programmatic Ad Spend Surges, Leaving Display Behind

The future forecast 

The future of video in programmatic advertising looks promising and will likely continue its upward trajectory. Several trends are shaping its future:


Video ads will become more personalized, leveraging data and artificial intelligence to deliver highly tailored content to individual viewers. This level of personalization will further enhance viewer engagement and ad effectiveness.

Interactive Video

Interactive video ads, where viewers can engage with the content, make choices, or explore additional information, will become more prevalent. This interactive approach will foster deeper engagement and create a more memorable ad experience.

Augmented Reality and Virtual Reality

AR and VR technologies will likely be integrated into video ads, providing immersive and interactive experiences for viewers. Advertisers will explore new ways to leverage these technologies for storytelling and brand engagement. Adello has a number of examples of VR video creative in the creative gallery

Short-Form Video

As attention spans decrease, short-form video ads, such as vertical videos for mobile devices, will become more popular. These bite-sized ads are better suited for capturing viewers' attention quickly and delivering concise messages.

Cross-Platform Integration

Video ads will seamlessly integrate across various platforms, including social media, connected TVs, and streaming services. Advertisers will optimize video content for each platform to ensure consistent brand messaging.

Addressing Privacy Concerns

With increasing privacy regulations, advertisers will need to find a balance between personalized targeting and consumer data protection. Contextual advertising and consent-based targeting will gain importance.

In the constantly-changing digital advertising world, Programmatic ad spend has surged ahead, leaving traditional Display methods in its wake. Video programmatic advertising has emerged as the dominant force, reshaping the marketing landscape. Video has become a popular format for advertisements, and Adello is a trusted expert in this field. With their wealth of experience, Adello is prepared to help you create impactful video campaigns that produce real results. Trust in Adello to turn your vision into a success. 

Seize the power of video programmatic advertising today - partner with Adello to unlock unparalleled marketing potential for your brand.

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