Programmatic Video Bought Like TV -- Via CPM

A just-released study from Videology finds that more than 90% of marketers buy online video ads the same way they buy TV -- via CPMs. Even with real-time bidding options, brands are still leaning on guaranteed CPMs. That insight comes from an analysis of 2.4 billion programmatic video ads served by Videology in the first quarter.

This datapoint underscores that while old habits may die hard, they actually may help usher in new models. Even as marketers try new ways of buying, many like to do so in the way they’re already accustomed to.

Of course, the caveat is that Videology tends to focus on reaching higher-end content and therefore attracts more TV marketers, who are used to buying this way. Nevertheless, such content, and the ads in them, are often the most desirable anyway.

In addition, this fixed CPM model for programmatic video is on the rise, and has increased 6% quarter over quarter.

Videology’s study also found that marketers are measuring video campaigns in a number of ways beyond click-through and completion. Of the campaigns that use advanced measurement, about 57% now measure brand action, 26% action impact, 13% sales impact, and 4% are including cross-screen effectiveness. About one-third of campaigns rely on third-party audience verification, another data point showcasing the rigor with which many marketers are treating programmatic video buying.

Cross-screen buying continues to gain steam, with 22% of campaigns including mobile or connected TV in first-quarter video buys.

Programmatic buying was slated to hit $7.4 billion in 2013 in the United States, and $17 billion by 2017, Magna Global said late last year. The media giant has said that about 25% of video inventory was traded programmatically in 2013 -- a number that should hit 69% by 2017.

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2 comments about "Programmatic Video Bought Like TV -- Via CPM".
  1. Ed Papazian from Media Dynamics Inc , June 10, 2014 at 4:02 p.m.
    Wow! Programmatic buying should account for 69% of online video "inventory" by 2017. Isn't it amazing how they can make such precise predictions?
  2. John Grono from GAP Research , July 5, 2014 at 10:06 p.m.
    Ed, I'm with you. My forecast was 69.71%. I'll turn the envelope over and try again.