Programmatic Video

Step 1: Ad inventory is made available

Publishers make their video ad space available through SSPs, which aggregate inventory across multiple websites, apps, and streaming services. This inventory includes various video formats such as pre-roll, mid-roll, and outstream placements.

Step 2: Advertisers set targeting parameters

Advertisers use a DSP, like Amazon DSP, to define their campaign goals, budgets, and audiences based on relevant signals. The DSP makes smart decisions about which ads to show based on what the advertiser wants to achieve and how much they’re willing to pay per cost per mille (CPM)—the advertising term for the price of one thousand impressions.

Step 3: Real-time bidding occurs

When a user visits a site or app with available video ad space, an auction is triggered. The publisher's SSP sends bid requests to multiple DSPs, including information about the user (within privacy guidelines) and the ad placement. Advertisers' DSPs automatically evaluate the value of the impression based on how well the user matches their targeting criteria. The bid amount is influenced by the advertiser's agreed CPM rate, which can vary depending on the targeting specificity and type of placement.

Step 4: The winning ad is delivered

The advertiser with the best mix of relevancy and bid value wins the auction, and their video ad is instantly delivered to the user. This entire process—from the user loading a page to seeing the ad—happens in milliseconds through real-time bidding technology.

Step 5: Performance is measured and optimized

After the programmatic video ad is displayed, performance metrics are collected. These insights are used to optimize future bids and targeting strategies, continuously improving campaign performance over time. Measurement solutions like Amazon Marketing Cloud (AMC) provide additional visibility, giving advertisers the ability to easily perform analytics and build audiences across pseudonymized signals, including Amazon Ads signals as well as their own inputs.

Enhanced relevance capabilities

Programmatic video connects brands with relevant audiences across different publishers using insights-driven signals. This approach delivers content to audiences more likely to engage, reducing wasted impressions and improving campaign efficiency.

Expanded reach

Advertisers can access inventory across multiple platforms simultaneously—from connected TV (CTV) and over-the-top (OTT) services to mobile and web—enabling consistent messaging to audiences wherever they consume video content.

Real-time optimization

Programmatic solutions deliver immediate performance insights enabling continuous campaign adjustments. Algorithms automatically refine bidding strategies and budget allocation based on real-time metrics, boosting performance during active campaigns rather than waiting for post-campaign analysis.

Cost efficiency

The automated system eliminates inefficiencies found in the traditional buying process by reducing manual work and human error. Real-time bidding ensures advertisers only pay what's necessary for each impression, providing more budget control.

Comprehensive measurement

Beyond basic metrics, programmatic video enables tracking of downstream actions like website visits, sign-ups, or purchases. These rich insights help brands understand the true impact of their video advertising and calculate accurate return on ad spend (ROAS).

In-stream video ads

In-stream ads appear within video content that audiences are already watching. They're similar to traditional TV commercials but delivered programmatically across digital channels. In-stream ads come in three primary varieties:

• Pre-roll ads: These appear before the main content plays and are highly visible as viewers wait to access their chosen content.
• Mid-roll ads: Inserted during natural breaks in longer content, similar to traditional TV commercial breaks.
• Post-roll ads: Shown after content completes, typically when viewer attention may be waning.

In-stream formats are particularly effective for brand awareness and storytelling as they capture viewer attention when they're already engaged with video content.

Out-stream video ads

Out-stream video ads appear within non-video environments, such as between paragraphs of text content or in social media feeds. These ads typically play automatically when scrolled into view and often play without sound until activated by the user.

Common out-stream formats include:

• In-article video: Ads that appear between paragraphs of written content.
• In-feed video: Video ads that appear within social media or content feeds.
• Interstitial video: Full-screen ads that appear during transition points in apps or between webpage content.

Out-stream formats can be executed in either standard or native approaches. Standard formats maintain traditional ad styling, while native executions adapt to match the look, feel, and function of the surrounding content. The native approach to out-stream video prioritizes seamless integration with the user experience, often resulting in higher engagement metrics compared to standard formats. By blending into the natural content flow while maintaining clear advertising disclosure, native out-stream videos can deliver brand messages without disrupting the user's content consumption.

Define clear campaign objectives

Before launching any programmatic video campaign, establish specific, measurable goals. Whether you're aiming to build brand awareness, drive website traffic, or generate conversions, your objectives will inform targeting strategies, creative development, and performance metrics. Each campaign should have a primary purpose that guides all other decisions.

Create compelling, channel-specific creative

Develop video content tailored to each channel and format where your ads will appear. Consider factors like typical viewing environment, sound-on versus sound-off viewing, and average attention span. For example, CTV ads might benefit from longer, story-driven content, while mobile out-stream ads should communicate key messages quickly and visually. Always include:

• Clear branding within the first few seconds
• Captions or text elements for sound-off viewing
• Strong visual storytelling that works without audio
• Clear call-to-action appropriate to the campaign objective

Reach relevant audiences

Leverage the rich capabilities of programmatic solutions to reach relevant audiences. Rather than using broad targeting, tailor your audiences to reflect your core customers. For example, you can use AMC to build bespoke audience lists using engagement records, conversion events, segment information, and more. Audiences created in AMC can be directly activated via Amazon DSP. Remember to balance reach and precision to avoid limiting your audience too severely while still maintaining relevance.

Establish frequency caps

Prevent ad fatigue by setting appropriate frequency caps that limit how often the same viewers see your ad. While some repetition helps with message retention, excessive exposure can create negative brand associations. Test different frequency levels to find the optimal balance for your specific campaign and audience.

Test and optimize continuously

Use A/B testing to compare different creative versions, targeting strategies, and bidding approaches. Leverage the real-time data available through programmatic solutions to make ongoing optimizations like updating underperforming creative elements. Remember that optimization is an ongoing process, not a one-time activity at campaign launch.

Amazon DSP

Amazon DSP allows advertisers to reach relevant customers across a large supply of premium, ad-supported content, including Amazon-exclusive properties like Prime Video, or across third-party supply through our direct integrations with publishers and leading supply-side platforms. With unique audience signals, AI-powered optimization, interoperable technology, Amazon DSP offers a comprehensive solution that unlocks deeper audience insights and optimizes campaign performance.

Streaming TV ads

Streaming TV ads are available through the Amazon DSP. With Streaming TV ads, your brand can show up in an expansive collection of premium TV shows, movies, live entertainment, and exclusive original content across a variety of services that viewers love, including Prime Video. The average monthly U.S. reach of Amazon ad-supported Streaming TV is 175M+. ¹

Online video ads

Online video (OLV) ads are in-stream (before, during, or after video content) and out-stream (in non-video environments between text and images) ads across desktop, mobile and tablet. Online video ads appear on Amazon-affiliated sites including IMDb.com and Twitch, as well as top third-party publishers. Online video ads are available in both managed-service and self-service packages on Amazon DSP.

Twitch

With 105M average monthly visitors to the Twitch site,² advertising on Twitch can help connect brands with highly engaged gaming and entertainment communities through pre-roll and mid-roll ad formats. As Amazon Ads found in From Ads to Zeitgeist, a global study that examines the relationship between advertising and culture, the most successful advertisers on Twitch first understand its community values and behaviors before engaging with these audiences to build brand awareness.

Sponsored TV

Sponsored TV is a self-service advertising solution designed for brands to reach and inspire audiences on the largest screen in the home. Powered by trillions of first-party shopping and streaming signals, Sponsored TV can help your brand connect with the right viewers, at the right time on streaming services like Prime Video and Twitch.

Prime Video ads

Prime Video ads allow brands to advertise across a premium content environment and engage viewers who are actively consuming long-form entertainment. Prime Video offers brands the chance to connect with audiences through brief yet memorable pre-roll and mid-roll advertisements that are less disruptive than other ad-supported viewing experiences.