The future for video and programmatic advertising

The future for video and programmatic advertising

By: Cortland J. Fondon

Programmatic advertising is a specific type of marketing that relies on certain triggers to engage automated campaigns based on a user’s actions. One of the most common examples of this form of automatic advertising is the product recommendation engines that power most major online retailers. When a user buys or even looks at a particular product on a website, for example, the software that powers that page uses that information to recommend a variety of related products and accessories. The future of programmatic advertising is certainly an exciting one, especially with regards to the role that video will play.

Because social media networks like Facebook and Twitter are on the rise and show no signs of slowing down, we are connected to each other in a way that has never really been seen before. It isn’t just that it is now easier than ever to send a quick message to any other person regardless of their location, but the fact that you’re able to do it almost instantly. People use hash tags on Twitter to contain discussions around a specific topic, for example. In just a few short minutes after a popular hash tag launches and begins trending, millions of people worldwide can all be taking part in the same discussion.

Programmatic advertising’s future will rely heavily on these types of advancements, particularly in the realm of online video. Even as recently as a decade ago, online video was seen as an ineffective marketing tool due to the huge costs associated with it. Not only did it require an intense amount of bandwidth to stream the video at a high quality to the user’s computer without disrupting the online experience, but even the process of creating these videos proved costly.

The tables have turned dramatically in that regard, as the prevalence of broadband Internet connections and the ease at which high quality video can be created has turned it into a viable marketing channel. Users can now stream high definition video content to smartphones in seconds, which is a fact that programmatic advertising will rely heavily on moving forward.

One example of a potential future use for video and programmatic advertising has to do with the location-based capabilities of modern day smartphones. Most smartphones like Apple’s iPhone have a global positioning chip built inside them at the factory level. Ostensibly, this chip is designed to allow users to get turn-by-turn directions between any two points while they’re on the go. In that way, the smartphone has essentially invalidated the need for most modern day navigation systems, especially since smartphones can connect via Bluetooth wireless networks to the stereo in a car.

Programmatic advertising enters into the mix, however, through those same location-based capabilities. Because programmatic advertising is based on a series of predetermined actions or triggers, video advertisements could be targeted to smartphone users based on their location. If a user is out for a walk in a major city and comes within walking distance of a particular retailer, for example, a video prompt may appear with a commercial for that retailer.


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