Mobile video ads that are sold programmatically generated around $19.93 billion in revenues in the US last year, according to eMarketer.
The ad type is predicted to reach $24.87 billion in 2020.
Mobile programmatic video ads made up 87.1% of total mobile video ad spend in 2019. Around half of mobile video ad spend went to native video ads (mostly in-feed ads) sold programmatically.
The other half included in-stream ads on platform such as Facebook, Twitter, YouTube and Snapchat.
“Even if the seller and the buyer know each other, they are using programmatic pipes for executing a transaction and for serving a campaign,” explained Kevin Schaum, vice president of advanced solutions group at SpotX, an ad-serving and supply-side platform (SSP) for video publishers. “That shift has been one of the main things that we’ve seen.”
Programmatic buying is now fairly widespread and small and medium-sized publishers have set up partnerships to sell ads programmatically.
“Rather than having our advertisers come to us individually and only buying YouTube or in-feed [ads] on our owned and operated [O&O], we’re trying to package that up for them and give them the scale they’re looking for,” added Ken Blom, the Senior VP of strategy and operations at BuzzFeed.
“If you choose to buy all your media programmatically and not talk to publishers, you’ll miss out on the fact that we have ad formats that aren’t programmatically offered, or there’s some audiences that you might be missing if you understood how we’re making more affiliate content.”