BENGALURU: News publishers are the biggest spenders of programmatic video ads in India during the March quarter, followed by other categories such as online shopping, business, entertainment, and finance, according to a report by advertising technology (adtech) platform InMobi.
The report “State of programmatic video advertising in APAPC" said in India, shopping category’s ad spends increased by 28% year-on-year, while music and audio, health and fitness, and education-related ad spends grew by 500% year-on-year in Q1 2020.
Apart from India, news publishers are also on the list of the top three spenders of programmatic ads in Q1 across regions including South East Asia, Australia, and New Zealand.
Programmatic advertising refers to automated buying and selling of ads, managed in real-time by software. Advertisers from different industry categories purchase ad slots (in text, video, etc) across different apps and websites looking to monetize their digital property.
Programmatic ads also allow advertisers to amplify their ads among specific users groups and demographics to have the highest impact.
InMobi said in its report that video ads were the most preferred format for advertisers, making up a majority of the programmatic ad spends in Q1 2020. Other formats such as audio and text made up the rest 40% of the ad spends.
The report added that video is most engaging advertising format for consumers, with click through rates (CTRs) as high as 2.5 times the average (when compared to other formats). CTRs are used by advertisers to measure ad impressions using the number of clicks an ad receives.
On video format, advertisers can use multiple video orientation layouts including horizontal, vertical, full banner and others to display their ads on a phone screen. According to InMobi, vertical video ads have a higher completion rate when compared to all other types of ads.
Video ads in the entertainment category had the highest engagement rate followed by other categories such as finance, food and drink, education, and music, the report said.
“Video, undoubtedly, is superior to other formats with 4 times higher engagement. While the (ad) spend on vertical videos is lower, the impact driven is higher –7 times the engagement when compared to banners and 3 times the engagement when compared to landscape videos," the report added.,
InMobi, which is headquartered in Singapore currently has three core online advertising businesses under its brand: TruFactor a consumer data management tool for telcos, InMobi unified marketing cloud (UMC), and Glance, business-to-consumer (B2C) product that offers personalized ad-free content into the lock screens of smartphones.
Till date, it has raised a little over $300 million from investors such as Softbank, Kleiner Perkins Caufield & Byers, Sherpalo Ventures and others. Globally the startup competes with big majors like Facebook and Google in the mobile advertising space, a market that is expected to touch $169 billion by 2023.