IAB Report Shows the Challenges of Programmatic Video Advertising

Just how big is the programmatic ad market? Revenues totaled $10.1 billion in 2014, says the just-released “IAB Programmatic Revenue Report 2014 Results,” a free and comprehensive look at the field. That figure comprises roughly 20 percent of all online ad revenues.

MobileVideo_LGWhile display ads make up the majority of programmatic advertising (roughly 80 percent in 2014), the report predicts that more advertisers and publishers will move to mobile and video formats.

One thing holding video back from getting a larger chunk of programmatic buying is the lack of quality premium inventory. Companies interviewed for the report said this is a consistent problem with video.

“As eyeballs have shifted away from traditional TV viewing to newer forms of video consumption, including online and mobile devices, brands want to connect with their audiences at the right time and right place,” the report notes. “For video that often means through premium publisher inventory, but it is often not available for advertisers via programmatic channels.”

Since premium video is in high demand, it’s now selling out through traditional direct digital sales channels. Publishers are selling it directly for a premium price. What’s left is less valuable remnant inventory which is often pushed to programmatic channels.

The good news is that executives expect premium programmatic video inventory to grow. Major players are investing in both programmatic video capabilities and premium inventory partnerships, the report notes, so that projected growth should actually happen.

Download “IAB Programmatic Revenue Report 2014 Results” for free (no registration required).


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