Key Takeaways
- Programmatic video offers improved targeting and efficiency, leading to higher engagement and a reported 95% information retention rate for video messages.
- Connected TV (CTV) is transforming the market, with programmatic CTV ad spend reaching $5.7 billion in Q2 2025 and CTV accounting for 28% of media budgets.
- With 52% of marketers prioritizing contextual targeting to maintain campaign effectiveness and user privacy, as an alternative to third-party cookies, contextual targeting is becoming increasingly important as part of ad strategies in programmatic video.
- CTV captured 28% of media budgets in 2025, signalling a significant move away from linear TV. Dynamic ad insertion and real-time bidding make CTV a powerful tool for efficient campaign execution and optimization.
Imagine watching your favourite show and, in a split second, the ads you see know exactly what will grab your attention, no guesswork, just data-driven precision. In 2025, programmatic video ads are reshaping everything.
Users are 1.5 times more likely to watch videos on their smartphones than on desktops. And, programmatic video advertising is changing the way brands connect with audiences. In 2025, global spending on programmatic video ads is expected to exceed $120 billion, making up more than 70% of all digital video ad spend.
However, campaigns using programmatic video see up to 2x higher completion rates and 30% lower cost-per-view compared to traditional methods.
In this blog, we’ll break down how programmatic video works, why it’s so effective, and how you can use it to grow your brand. Let’s dive in.
What is Programmatic video advertising, & How does it work?
Programmatic video advertising is an efficient and data-driven approach to video advertising compared to traditional methods, leading to improved targeting, greater cost efficiency, and better ad performance. In simple words, programmatic video advertising is an automated process of buying and selling video ads in real-time.
But how does programmatic advertising work?
Here’s the answer:
- Advertisers define their target audience and campaign goals.
- The programmatic platform then uses data and algorithms to select the appropriate publisher.
- After that, the programmatic platform decides the most effective times to display the ads.
- Once it’s done, the ads are delivered in real-time, using data from various sources like cookies.
What is the role of real-time bidding (RTB) in programmatic video advertising?
In programmatic video, real-time bidding or RTB facilitates an instant, automated auction for buying and selling of individual video ad impressions in milliseconds. RTB in programmatic video starts by:
Triggering an ad request with a user’s visit, < advertisers bid via DSP based on user data < the highest bidder’s video ad is instantly served through an auction conducted by the ad exchange.
Key Recap Points
- Programmatic video uses automation and real-time bidding to buy and sell video ad inventory in milliseconds.
- Platforms deliver highly personalized video ads based on user data
- Programmatic video offers improved targeting, higher engagement, and better ROI compared to traditional methods.
Why Should You Choose Programmatic Video Advertising?
Programmatic video advertising not only streamlines the ad buying process by eliminating the middleman, but it also offers numerous other benefits to businesses. Let’s take a look.
Increasing popularity
Yes, you have heard it right. In fact, one of the most dominant ad formats in social media is expected to be video advertising. In fact, you will be surprised to know that about 93% of companies attracted new customers because of video advertising.
Great for B2B Marketers:
A study by Accenture found that 94% of buyers conduct online research, seeking solutions at any time and place. In response, B2B marketers are utilizing video to effectively reach professionals in their desired locations.
Data Driven Optimization
With programmatic video advertising, real-time data is collected and analyzed to understand how the campaign is performing and to identify areas for improvement. This information is then used to adjust the campaign in real time, allowing for continual optimization and better results. Programmatic video goes beyond basic demographics; it boosts audience targeting accuracy by using real-time data, AI algorithms, and behavioural insights to identify and reach specific viewer segments. This precision not only improves engagement but also reduces wasted impressions.
Improved Engagement:
Video is a highly engaging format that can help to capture and hold the attention of viewers, improving the impact of advertising. It is because videos are usually an interactive and easy-to-consume type of content.
Can programmatic video help publishers maximize ad revenue?
By automating the ad inventory sales and using real-time bidding, publishers can connect with a larger pool of advertisers, increasing competition for their inventory. This leads to higher CPMs and better fill rates. Plus, with AI-driven targeting and yield optimization, every impression is matched with the most valuable ad, boosting overall earnings.
Key Recap Points
- Real-time data and AI-driven insights help advertisers reach the right audience across devices with minimal impression wastage.
- Automated bidding and inventory optimization increase competition, leading to better CPMs and fill rates.
- Video’s interactive format boosts viewer attention, while real-time optimization improves campaign results continuously.
What are the Different types of Programmatic Video Ads?
This means that both advertisers and publishers can save time and focus their efforts on other important tasks.
Instream
In-stream video ads present ads to the users within the player. You can expect advertisers to show these ads before the video content begins, during the video itself, or after it ends.
These are linear video ads with various starting points that disrupt the video content to play. Further classified as pre-roll, mid-roll, and post-roll.
Outstream
Outstream video ads appear in the midst of the content of any website. For example, a YouTube video, which we usually come across while scrolling through a blog or an article.
Image Source – Think with Google
These types of programmatic videos don’t interrupt video content but are displayed on top of the content.
In-display (rich media/in-banner/in-feed/etc)
Third, in-display ads are another type of video ad generally used in programmatic advertising. These ads appear within an online display banner. Here, video creatives are served in the display ad unit.
How do skippable vs. non-skippable programmatic video ads impact viewer engagement?
Skippable ads allow users to skip after a few seconds, encouraging voluntary viewing of ads, leading to higher engagement from interested audiences. Non-skippable ads ensure full message delivery but can feel intrusive. Potentially non-skippable ads lower user satisfaction.
While 81% of global viewers appreciate the ability to skip an ad, only 64% of users are willing to watch non-skippable video ads if the content is entertaining.
Key Recap Points
- In-stream ads play within video content and drive higher engagement; out-stream ads appear in articles or feeds, offering broader reach without interrupting video.
- Pre-roll, Mid-roll, and Post-roll ads are types of in-stream formats that target different viewer moments to maximize attention and message retention.
- Skippable ads boost engagement by respecting viewer choice; non-skippable ads guarantee full delivery but risk lower satisfaction unless the content is compelling.
What Are the Best Practices for Programmatic Video Advertising? (5 Actionable Tips)
Maximizing the effectiveness of your programmatic video campaigns requires thorough analysis and strategies that work. Here are a few of the practices you can implement for your programmatic video campaigns.
1. Define your target audience
First things first, it’s important to define who exactly your target audience is. This involves identifying the specific group of people that you want to reach with your programmatic video advertising campaigns. Many factors are taken into account, which help create targeted and relevant advertising, including demographic information, interests, user behaviour, and age group
2. Invest in high-quality creatives
Second, creating high-quality, eye-catching video ads that engage and capture the attention of viewers is essential for the success of your programmatic video advertising campaigns. Advertisers and publishers should ensure that video ads stand out by using a powerful video editor tool.
3. Use data and insights to optimize campaigns
Programmatic video advertising provides access to a wealth of data and insights that can be used to optimize campaigns in real time. For most publishers and advertisers, viewability, completion rates, click-through rates, and conversions matters the most to evaluate ad performance. Viewability tells you if people are actually seeing your ads. Completion rates show if your content is engaging enough to be watched till the end. Click-throughs and conversions prove whether your ads are driving real action.
4. Utilize advanced targeting and personalization techniques
Programmatic video advertising offers advanced targeting and personalization capabilities, such as retargeting, geotargeting, and behavioural targeting, that enable advertisers to reach the right people, with the right message, at the right time.
5. Test and iterate to continuously improve results
We recommend performing experiments with multiple targeting techniques, creative elements, and ad placements, as well as tracking and analyzing the results of your campaigns to identify areas for improvement.
Key Recap Points
- Define clear audience segments using demographics, interests, and behavior to ensure relevant targeting.
- Use mobile-optimized video content to capture attention and boost engagement.
- With real-time performance metrics and advanced targeting (like retargeting and geotargeting), you can refine and improve campaigns continuously.
What are the Top 3 Trends of Programmatic Video Advertising?
1. Increasingly Popular Programmatic Channel
According to eMarketer, US advertisers showed significant growth in their investment in programmatic video advertising. As mentioned earlier in the blog, analysts expect the value to reach $74.88 billion USD this year. As smartphone usage continues to grow, adapting video ads for mobile devices is no longer optional; it’s becoming an essential part of the ad strategy. However, with users now watching over six hours of content weekly on their phones, it’s 1.5 times more likely to watch videos on smartphones than on desktops, making mobile the priority platform for advertisers. Therefore, to deliver effective campaigns, brands should design mobile ads with a visual format that mirrors traditional video and adjust their dimensions to fit smaller screens for better engagement.
2. Increased adoption of OTT and CTV
Second, with the rise of over-the-top (OTT) and connected TV (CTV) platforms, programmatic video advertising is expected to see continued growth in these channels. With Programmatic CTV ad spend reaching $5.7 billion in Q2 2025, Connected TV (CTV) is transforming programmatic video by offering premium, large-screen ad environments with high engagement.
In 2025, CTV accounted for 28% of media budgets, reflecting a major shift from linear TV to digital streaming platforms. CTV supports dynamic ad insertion and real-time bidding, streamlining campaign execution and optimization. As viewers continue shifting to OTT platforms, CTV’s role in programmatic video is expected only to expand.
5. Helps with Information Retention
According to Forbes, video has a significantly higher impact on retaining information compared to text. Viewers retain 95% of a message when they watch it in video format, while reading it in text only results in a retention of 10%. In fact, contextual targeting is emerging as a key strategy for video advertisers. Instead of relying on user tracking, this method analyzes the context of the content, such as keywords and topics, to match ads with relevant environments. This ensures brand safety, ad relevance, and information retention without compromising user privacy.
Image Source – Think with Google
Key Recap Points
- CTV now captures 28% of media budgets, with $5.7 billion in programmatic spend1.
- Contextual targeting is rising, with 52% of marketers shifting away from cookies.
- Mobile drives scale and personalization, fueling a $270 billion programmatic ad market.
How can Publishers Monetize with Programmatic Video Ads?
Programmatic video advertising uses the power of automation and precision to scale the content for publishers. Instead of relying on slow, manual ad deals, publishers can now use smart technology to sell video ad space in real time. This means faster decisions, better targeting, and more revenue.
By partnering with the right demand-side platforms (DSPs) and supply-side platforms (SSPs), publishers open their inventory for advertisers globally. Increased competition boosts CPMs and improves fill rates, allowing advertisers to monetize every available ad slot effectively. Real-time bidding (RTB) allows advertisers to bid on impressions as they happen, while AI-powered yield optimization ensures that each impression earns its maximum value based on audience data, content type, and market demand.
Now that you know how to monetize with programmatic video ads, let’s have a look at the platforms used for programmatic video advertising.
Programmatic video advertising uses DSPs like The Trade Desk and Google DV360 to bid on video inventory, while SSPs such as PubMatic and Google Ad Manager manage ad slots. Ad exchanges connect both sides, enabling real-time auctions that deliver targeted video ads across mobile, desktop, OTT, and connected TV platforms.
To start with programmatic video ads using Google Ad Manager, follow these steps:
- First, enable Video Solutions through their account manager.
- Second, create a video inventory by defining ad units and targeting parameters.
- Next, video ad tags are generated and embedded into the video player.
- To activate Programmatic Direct, publishers go to Admin > Global Settings > Features.
This allows publishers to negotiate Programmatic Guaranteed or Preferred Deals directly with buyers. Inventory types must be configured to include “Video” environments.
Key Recap Points
- In-stream formats (pre-roll, mid-roll, post-roll) deliver stronger engagement and premium demand, leading to fill rates and higher earnings.
- Publishers must activate Video Solutions, configure video inventory, and enable Programmatic Direct to explore guaranteed deals and increase ad revenue.
What’s next?
Technology alone isn’t enough. To truly succeed, publishers need an ad partner who understands the depth of the programmatic world; to navigate the complexity, fine-tune the strategy, and evaluate hidden revenue opportunities.
Adpushup doesn’t just plug into the system; here’s how we can help you with programmatic video:
- End-to-End Programmatic Integration AdPushup delivers a comprehensive programmatic video ad stack, enabling publishers to manage and monetize their video inventory.
- Smarter Revenue Optimization Using machine learning-driven A/B testing and dynamic ad layout strategies, the platform maximizes ad yield by connecting publishers to multiple demand sources in real time.
- Precision Audience Targeting: Highly specific audience targeting based on demographics, interests, and behavioral data—boosting engagement and relevance.
- Access to Premium Inventory Through partnerships with top-tier publishers, AdPushup ensures advertisers gain exposure in trusted, high-quality digital environments.
- Compliance-First Approach: Aligned with the latest Google policies, AdPushup guarantees that all video ads adhere to industry standards and best practices.
Frequently Asked Questions
Programmatic video ads stand apart from traditional video advertising by replacing manual negotiations with an automated buying and selling process for video ad inventory that uses real-time bidding and audience targeting to deliver personalized video ads instantly across digital platforms, making campaigns more efficient, scalable, and performance-focused compared to the fixed placements and broad targeting of traditional methods.
YouTube offers programmatic video advertising through its Google Ads platform. Advertisers can use programmatic technology to purchase and display programmatic video ads on YouTube.
Programmatic video ads work by automating the buying and selling of video ad space using real-time bidding (RTB) and data-driven algorithms. When a user visits a site or app, an ad request is triggered, and advertisers bid instantly through demand-side platforms (DSPs). The highest bidder’s video ad is served within milliseconds. This process uses audience data – like behaviour, location, and interests to deliver highly targeted, relevant ads.
Programmatic video reduces the risk of manual error, ensuring that advertisements are placed in the right context, reach the right audience, and deliver the intended message. This increased accuracy leads to better results and higher engagement, making programmatic advertising more effective and efficient than display ads.
Unlike traditional waterfall setups, where bids are placed in sequence, in programmatic video advertising, header bidding allows multiple advertisers to bid simultaneously for video ad inventory, driving up CPMs and giving publishers’ ad revenue a boost. Since video inventory is often premium and limited, header bidding can lead to 10–30% higher revenue, making it a strategic upgrade for publishers
6. Should publishers use in-stream or out-stream video ads for higher revenue?
In-stream video ads deliver higher revenue for publishers because:
– Higher CPMs: In-stream ads (pre-roll, mid-roll, post-roll) consistently command better CPM rates than out-stream formats.
– Better Engagement: These ads are embedded within video content, making them harder to skip and more engaging for viewers.
– Premium Demand: Advertisers prefer in-stream placements for brand-safe environments and higher viewer intent.
– Content Integration: In-stream ads align with the publisher’s video content, enhancing user experience and ad performance.
Out-stream ads are easier to implement but typically yield lower CPMs and engagement. For revenue maximization, in-stream is the preferred choice.
For most publishers and advertisers, this means looking at viewability, completion rates, click-through rates, and conversions. Viewability tells you if people are actually seeing your ads. Completion rates show if your content is engaging enough to be watched till the end. Click-throughs and conversions prove whether your ads are driving real action.
