Back in 2014 mobile browsing made waves when it surpassed desktop browsing for the first time ever. Since then, mobile browsing has continued to dominate with recent reports that 1 in 5 Millennials access the internet only via mobile devices. As we reach an era of online streaming and heightened digital connectivity, traditional ads are getting less exposure, making it more important than ever for advertisers to know how to adapt their digital marketing strategies to the changing habits of their target audience. For this reason, advertisers have turned to programmatic mobile video advertising as it allows them to tap into mobile video browsing habits and get the right ads in front of the right people at the opportune moment.
How Programmatic Buying Works
Programmatic buying is more valuable than traditional ad buying because it targets specific users and provides flexible media buying options. It is the method of setting up stipulations for your target audience, so that you can bid on the best interactions for your brands without wasteful spending, through methods such as real-time bidding. When it comes to programmatic video buying, this process is automated by your Demand Side Platform (DSP), which will find the best places to advertise your video on mobile devices, whether it is through an app or on a webpage, depending on your campaign factors. The idea behind programmatic mobile video buying is to be able to set up your DSP to find the users your brand can connect with personally and focus your ad spend on those leads.
Benefits of Programmatic Mobile Video Advertising
In today’s visual climate, 78% of people are watching videos online every week and 55% of people are watching videos online every single day. This makes for a huge market of potential leads and purchases earned through getting your video advertisement in the best locations for your brand. Now more than ever it is important to invest in programmatic mobile video advertising. If you aren’t sold yet, here are the main reasons why you should switch to programmatic video advertising:
1) The Ease of Automation
It is estimated that by 2018 mobile video will account for 72% of all mobile traffic – that’s a lot of potential leads to track! This is why automation available through programmatic mobile video buying has become so appealing. Based on your campaign’s goals, your DSP will find the best places for you to advertise, and will then bid on these ad spots based on your preferences. You can set up the dates your ads will run, the budget of the campaign, how frequently your ads are shown, and the target audience.
2) The Value of Individual Impressions
The key benefit associated with traditional programmatic buying is also experienced with programmatic mobile video buying: each individual impression is valued independently. Through the automated software mentioned above, your DSP will bid on each of these individual impressions as they align with your target audience, resulting in a better ROI because you are not wasting Ad spend on huge blocks of people less likely to convert.
3) Integration of Data
Programmatic mobile advertising is highly customizable and even allows for the integration of third party data. This is particularly important for mobile advertisements because the key difference between mobile and desktop users is the location data and mobility of the former.
Location-Based Data: 80% of mobile users admit to having their phone with them 22 hours of the day because they reply on their phones and their phone apps for a multitude of activities throughout the day.This phone dependency opens the door for mobile video ads based on geo-targeting through their IP Address, Wi-Fi triangulation and GPS data. Through programmatic video mobile you can target users based on their current location and cross that data with other factors like which mobile app there are using. For example you may own a fitness store and decide to target mobile users who are on the running room app who are within a 10-mile radius of your storefront location.
Device Data: You can also target users on a particular operating system, mobile carrier, or specific device in order to find the best cross-section of users. For example if you own a third party iPhone accessories shop this gives you the ability to only target iPhone users, instead of wasting ad spend on Android users who are less likely to buy your product.
4) Multi-Screen Targeting
With the rise of tablet usage, many people are accessing sites across multiple devices. We have already seen Facebook unveil its new analytics app which allows you to track users across all devices in order to establish a more accurate pathway to purchase. Now many mobile video ads are using similar data to target users across all their devices through deterministic targeting, probabilistic targeting and data links.
Your DSP will now put everything you need to run a successful mobile ad campaign in one place. You will have the ability to collect, plan, target, optimize, and report all data measured by KPIs.
Types of Mobile Ads and KPIs
Now that you are going to start using programmatic video buying for mobile, it is important to know which kinds of ads will be the most effective for your brand and how to track progress through key performance indicators (KPIs).
These video advertisements are under 30 seconds in length and play before a consumer can watch their desired content. Pre-Roll ads are content that can be skipped after a predetermined amount of time (i.e. 5 seconds) and are most commonly found on YouTube.
Benefits: Mass-market appeal, direct pathway to sales, and a great way to unveil a new product or drive up interest in your brand
Drawbacks: Ads are seen as intrusive because users are forced to watch them before content they are interested in
Top KPIs: Purchases, clicks, and views
These ads are intended to be less about direct sales and more focused on storytelling around the brand. For this reason they tend to be longer and are more likely to be shared. They are built to mimic their surroundings and appear organically along with the rest of the content. A good example of this kind of advertising can be found on Instagram where ads blend seamlessly into the rest of a user’s Instagram feed.
Benefits: Native ads can experience higher share-ability, positive PR, and an overall brand lift
Drawbacks: There is no direct connection to sale as they are more of a long-term positive branding strategy
Top KPIs: Brand lift, shares, web traffic
After you decide on which kind of mobile video ad works best for your brand (or a combination of the two listed above) KPIs are a great method of quantifying effectiveness of any advertising campaign and are used as benchmarks for areas that can be improved upon. With your DSP, here are some KPIs to consider:
- Time Spent: The top KPI for a Pre-Roll ad is Time Spent Watching. If for example you have an ad that can be skipped after 5 seconds and almost everyone who views it skips your ad that is a valuable way to determine that your first 5 seconds aren’t enticing enough.
- Completion Rate: This KPI is when the opposite of the above example happens and users watch your entire video ad. This is a great way to highlight what ads are performing well because users are opting to watch more of your content before the content they actually clicked on.
- Impression Delivery: The total number of impressions your video ad received. Tracking impressions over time can illustrate which apps/web pages are the most effective for your ads.
- Brand Lift: Is measured by an increase in brand interaction after an advertisement. This KPI is usually caused by a positive interaction with a brand, like what could be seen from an effective native video advertisement that gains some PR traction.
- Viewability: This KPI tracks the percentage of your ads that are viewable (i.e. play for at least two seconds with a good resolution). Watching this KPI a good way to establish if any of your video advertisements are placed poorly, or are having compatibility problems within the app.
- In-Store Visits: This is a solid KPI to use if you are focusing on location specific advertisements to people on their mobile devices because it tracks how many users were drawn into making an in-store visit after seeing your mobile video advertisement
- Percentage In-Target: This measures how many of the total viewers are within your target audience and can establish if you need to widen or condense your campaign parameters.
- Cost Per Acquisition (CPA): A measurement of how much it costs to install an app, get a completed purchase, or a lead. This is a good way to track ROIs and determine which methods of advertising are most lucrative or costly.