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Programmatic advertising made up 90% of digital display ad spend in the US in 2023, and it’s only growing.
Why?
It lets you reach the right audience at the right time on the right platform automatically.
But to make it work, you’ve got to start strong. That means building effective programmatic video ads and testing them with smart ad mockups to see what actually performs.
This guide shows you exactly how to do that, plus other crucial details, like:
P.S.: Ever feel stuck trying to figure out which programmatic ad will actually work? inBeat.co’s ad mockup generator makes it easy to test different hooks, visuals, and CTAs across platforms like Instagram, Facebook, Linkedin, and more before you spend a dime. Just plug in your ideas, compare versions, and determine what clicks!
Programmatic ads made up 90% of U.S. digital display ad spend in 2023 and continue to grow due to automation, targeting precision, and scalability.
Definition: Programmatic video ads are bought through real-time bidding using demand-side platforms (DSPs), replacing manual ad buying with automated efficiency.
Benefits: Lower cost (CPM ~$1–$5), sharper targeting with first-party data, real-time optimization, easy scalability, and cross-channel reach.
Ad Types:
How to Create Effective Ads:
Key Trends: Rise of AI-driven optimization, contextual targeting as a privacy-safe alternative, and major investment into CTV and OTT ad placements.
Examples: Chevalier Resorts, Amanda Foundation, and Aveeno Baby successfully used programmatic ads for targeted engagement and measurable growth.
Tools like inBeat.co help you A/B test ad mockups across platforms before launch.
FAQ insights: Programmatic buying methods include RTB, PMP, preferred deals, and guaranteed buys. Amazon ads are also available programmatically via Amazon DSP.
Programmatic video ads are digital ads bought and sold through an automated process using real-time bidding. Instead of manual placements, you use demand-side platforms (DSPs) to bid on video ad inventory across websites, apps, and social media platforms.
Now, let’s understand how they differ from traditional buying methods.
Traditional ad buying feels like throwing darts in the dark with manual negotiations, fixed pricing, and no real control over who sees your ads.
Programmatic advertising flips the script. It puts your ads where your audience is already active and ready to engage. That timing and relevance is what turns views into actual results.
You get the idea of what programmatic video ads are. Now we’ll talk about why they actually work:
With real-time bidding, you only pay for impressions that matter. The automated process keeps pricing competitive, which prevents overspending on low-value placements.
Besides, direct ads typically command two to four times higher rates than programmatic ads. While programmatic ads average around $1–$5 CPM, direct ads usually bring in $10–$20 CPM.
Programmatic platforms don’t stop at basic demographics. They use first-party data, trusted by 92% of marketers, to reach people who are actually likely to engage, click, and convert.
Your campaign doesn’t stay static. As real-time data flows in, programmatic video advertising platforms automatically adjust bidding strategy, audience categories, and placements to maximize the offered benefits.
Whether you want to target a local audience or expand globally, programmatic video ads adjust automatically. For example, if an ad performs well in one region, the system can increase bids for similar audiences elsewhere to scale across multiple video platforms.
73% of people bounce between many channels before making a purchase. With these ads, your brand follows them wherever they go. Whether they’re reading the news, playing a game, or watching their favorite shows, your ads show up just in the right place.
Programmatic video ads can be split into different types by placement and by format. And with these benefits, no wonder programmatic video campaigns are so powerful.
Now, let’s see all the different types. Whether it’s about where they appear or how they work, understanding these formats will help you make smarter choices for your campaigns:
These ads are categorized based on where they appear within digital content. They integrate seamlessly into websites, apps, and social media, ensuring maximum visibility.
These ads can be displayed within streaming content, in between web pages, or even as full-screen transitions.
a) In-Stream Ads
In-stream ads play inside online video content on platforms like YouTube, either before (pre-roll), during (mid-roll), or after (post-roll) the video.
b) Outstream Ads
These autoplay within web pages, social media feeds, or mobile apps. Unlike in-stream ads, they don’t require existing video content to run.
c) Interstitial Video Ads
Interstitial ads take over the full screen between content transitions, like when you switch levels in a mobile game or move between app screens.
d) In-Display Ads
In-display ads are the familiar banners you see in headers, sidebars, or between content while scrolling through websites, apps, or social media platforms. They mix text, images, and sometimes videos.
Want to get the most out of them? Here’s a quick Google Display Ads Tutorial:
e) Connected TV (CTV) and Over-The-Top (OTT) Ads
These ads run on streaming platforms and smart TVs to put your ad in front of viewers watching content on-demand.
These ads are categorized based on how they engage viewers and deliver content.
These fit right into the content around them, like sponsored videos that feel like part of a social media feed. And they work as 53% of customers pay more attention to native ads than to display ads.
b) Non-skippable video ads: Viewers must watch these ads completely before accessing content. They are of 15 seconds or shorter and work well when you need guaranteed impressions.
c) Skippable Video Ads
These play automatically but can be skipped after a few seconds, so only genuinely interested people stick around to watch.
d) Rewarded Video Ads
Common in mobile apps, these offer perks, like extra lives in a game, in exchange for watching the ad.
With the aim of making shopping seamless, shoppable ads integrate interactive elements like product tags, clickable links, and "Buy Now" buttons directly within the video.
f) Playable Video Ads
These ads let users have a quick, hands-on demo, like testing a game level, before they decide to install or buy. This level of interaction can drive up to 700% higher conversion than static mobile ads.
After formats, we are getting straight into the real work, i.e., how to bring your programmatic video ad to life, step by step:
Start with the data you already have, like past purchases, browsing behavior, or app activity.
Then, break your audience into clear audience segments based on:
Use this data to build detailed profiles inside your demand-side platform and personalize your approach. Someone on a phone in New York shouldn’t see the same ad as the one watching on a smart TV in Texas.
Your video ad needs to be sharp, simple, and scroll-stopping. inBeat experts have shared some tips to get that right:
We recommend using free as mockup generator tools like that offered by inBeat.co to A/B test different versions of your programmatic ads before publishing them. That way, you know exactly what drives more engagement and clicks.
What’s special about it?
a) Multi-platform support, which means you can create ad mockups for Instagram, Facebook, TikTok, Snapchat, LinkedIn, and Twitter.
b) Format flexibility, so it’s possible to test different ad types, including square, portrait, story, carousel, and landscape.
c) Multiple variants to preview your programmatic ad with different CTAs.
d) Live caption testing, where you can instantly edit and preview ad copy to see what fits best.
e) Option to add your own images for a realistic sneak peek.
f) Full-field customization for likes/reactions, comments, shares, sound name, profile picture, username, headline, tagline, website, and more.
Instead of going all-in on traditional ads, team up with influencers your audience already listens to. Don’t just hand them a script. Let them share your product in their own voice. 61% of people say they trust influencer recommendations more than ads and that trust is exactly what drives results.
Don’t know where to find the right influencers?
Platforms like inBeat Agency help by connecting you with micro-influencers in your niche who actually get your brand voice, follow trends like pros and create content that feels real.
Alright, the creatives are ready. The next step is to get your campaign live. Start by picking a reliable demand-side platform (DSP) where you’ll control everything: targeting, budget, bidding, and placements.
Look at the data – where is your relevant audience actually hanging out? If they’re on mobile, run ads in apps or scroll-heavy feeds. And when your goal is brand awareness, CTV or premium video channels with longer watch times are a better choice.
Finally, pick a bidding strategy that fits your goal, be it views, clicks, or conversions, and don’t forget to add frequency caps, as ad fatigue is the real engagement killer.
Launching the campaign isn’t the finish line. You have to keep a close eye on your key performance indicators like:
Use your DSP’s real-time data to spot what’s working and what’s falling flat.
If one version of your ad is crushing it? Shift more budget there.
If another’s dragging? Swap it out with a fresh creative or test a new bidding strategy.
📌 Pro tip: Set benchmarks for metrics to identify trends and optimize your campaign performance before the budget drains on underperforming ads. inBeat.co’s free marketing calculators help track metrics like CPM, CTR, CPA, ROAS, and more, so you can optimize your budget and scale what works.
You’ve got the step-by-step process down; it’s time to look at the trends shaping where programmatic video advertising is headed next:
P.S. Struggling to make your programmatic ads perform? If your campaigns aren’t delivering the results you expected, it might be time to get expert help. Explore top programmatic advertising agencies that specialize in optimizing ads for higher engagement, better targeting, and stronger ROI.
Trends are great, but nothing beats seeing something in action. Some programmatic video ad examples that delivered real results are:
Chevalier Resorts made programmatic video ads work by mixing peaceful escapes with a sense of adventure, all in one eye-catching creative. With stunning visuals, clear pricing, and a QR code built in, they grabbed attention fast and reached the right audience.
The outcome?
Higher engagement, smarter targeting, and more bookings through the use of QR codes.
Finding the right home for every pet isn’t easy, but the Amanda Foundation made it smarter with programmatic ads. They matched ads for dogs and cats to people based on their lifestyles and preferences. This made them feel more like personal invites than promotions, and that’s what made them work.
Aveeno Baby tapped into Amazon DSP to reach parents by mixing video, search, and display ads. This combo resulted in:
Programmatic ads work because they’re built for how people browse today – fast, personalized, and everywhere. With an optimized setup, smart testing, and tools like ad mockups and influencer partnerships, you're not just showing up – you’re showing up right.
Key Takeaways:
If you're starting from scratch or just need a smarter way to run your programmatic ads, inBeat Agency can help. We use data-backed insights to build creative campaigns that actually align with your brand, and every step is measurable, so you know what’s working and why.
Book a free strategy call, today!
Programmatic video ads are digital video advertisements bought and placed automatically using AI-driven algorithms. These ads are served across multiple platforms through demand-side platforms (DSPs), ensuring that the right audience sees them at the right time based on data like user behavior, interests, and demographics.
Programmatic advertising is sold through four main methods:
An example of a programmatic ad is a YouTube in-stream ad that plays before a video, targeting users based on their viewing history, interests, and demographics. Similarly, a TikTok video ad that appears while scrolling, customized based on the user’s past engagement, is also a programmatic ad.
To set up programmatic ads, choose a DSP like Google DV360 or Amazon DSP, define your target audience, and create engaging video ads optimized for platforms like YouTube or TikTok. Set your budget and bidding strategy (CPM, CPC, or CPA), select ad placements across websites, apps, and CTV, then launch and monitor key metrics like CTR, conversions, and ROAS to optimize performance.
Yes, Amazon ads can be programmatic. Amazon DSP (Demand-Side Platform) allows advertisers to buy display, video, and audio ads programmatically on Amazon-owned properties (like Prime Video, Fire TV) and third-party websites. This ensures brands can target shoppers based on Amazon’s first-party data, such as purchase history and browsing behavior.