Microsoft Advertising Enters the Video and CTV Advertising Realm
At the DMEXCO conference, Microsoft Advertising unveiled a brand-new video ad product called Video and Connected TV (CTV) ads. Advertisers can now create online video and CTV ad campaigns on the Microsoft Advertising platform, thanks to the company’s video ad offering. The novel solution offers specific reach across large-scale properties to guarantee that the ad is presented to the appropriate target audience. The offering engine accepts search data. The internet juggernaut wants to profit from the burgeoning digital video landscape. By 2024, it is anticipated that people will spend 3.5 hours daily on average.
How does it work?
The new platform does not require advertisers to learn how to use the new platform. No set-up fees or lengthy onboarding procedures are needed, and campaigns are straightforward to optimize. The same platform offers the possibility to target ads on CTV. Because of this, creating campaigns only requires a few clicks. The only thing advertisers need to do is upload video assets that best represent their brands. Additionally, they must determine who they want to expose their ads to as well as how frequently they should do so across multiple devices. Setting frequency caps, reporting on domains where ads are served, and excluding any domains where ads should not be served are all features available.
Why should advertisers care?
Video and connected TV (CTV) capability increases conversion possibilities. It expands the options for ad-serving and using audience analytics to target high-value consumers. The choice to run commercials online or on CTV is also available. Advertisers can purchase CTV ads through a cost-per-completed view mechanism to target audiences on smart TVs and connected devices.
Moreover, according to Microsoft, search data is one of the most important components to enable this CTV and video service. Even when watching television, online searches have developed into one of the most potent intent signals. It is now a clear indicator of consumer intent. It reveals what the current needs of consumers are. Search offers information that can later be converted into marketing.
The rise of multi-screen viewing
As multi-screening is becoming popular, Microsoft’s new offering comes at a crucial time. According to recent studies, 4 out of 5 consumers read online news while watching TV, highlighting the opportunity for advertisers to target audiences who engage in multi-screen behaviors. Furthermore, 90% of Gen Z viewers in the U.S. utilize a second screen in addition to TV. This behavior creates attractive opportunities for marketers to better engage viewers. Even though the data just pertains to the U.S. market, the product is currently conducting pilots in 34 markets, with more than 405 billion monthly CTV impressions and 1.6+ trillion video impressions.
Image credit- Microsoft Advertising Blog
Video and CTV ads highlights
Microsoft’s access to billions of first-party data points is what distinguishes this platform. It makes it possible for advertisers to precisely identify their target market. Advertisers can target viewers on desktop, smartphone, and tablet devices with online video advertising purchased using a viewable CPM model for both in-stream and out-stream placements. User behavior from Bing, Microsoft Edge, Microsoft Start, and other properties is included in this treasure trove of data.
Max, Hulu, and Bloomberg are just a few of the venues where you can see video and CTV advertisements. Additionally, it has been reported in media sources like the Wall Street Journal, MSN, and the Huffington Post. A hyper-targeted audience is created by the platform using machine learning algorithms based on a variety of variables, including product preferences, demographic data, and browsing patterns. The goal of this strategy is to make targeted ads better so that marketers can reach the most relevant audiences.
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Search data insights
One type of data used to create intelligence signals is search. However, Microsoft permits the use of billions of legal first-party data sets across numerous properties in advertising. They range from preferences for content and brands to LinkedIn profiles and much more. All of these signals are applicable to the video targeting feature. Based on viewing and browsing information, Microsoft Advertising Video and CTV advertising enable advertisers to use these signals to place brands in front of viewers with the appropriate messages.
Forecasts suggest a significant increase in ad expenditure
Forecasts indicate that between 2023 and 2025, U.S. programmatic video ad expenditures will increase by $22.51 billion (30.2%). The latest feature from Microsoft is made to effectively develop this growing pattern. Another appealing factor is the ease of application. The announcement is noteworthy because it signals a significant effort in an industry that is constantly developing. Additionally, it provides marketers with a more comprehensive, data-driven tool for audience interaction. Microsoft’s CTV and Advertising Video advertisements provide targeted audience capabilities. The growing rivalry and possible ad saturation have led to continuous innovation for success.
Here’s what they said
Product Marketing Manager at Microsoft Advertising, Liam Mackessy, told Search Engine Land:
This product has been designed for ease of use. You can get started in just a few clicks, there are no long onboarding processes, no set-up fees, and it’s simple to optimise. We’re making CTV advertising, which typically can be a little bit more complex to buy, more accessible to a lot more advertisers on the Microsoft Advertising platform. However, we still provide control and flexibility to advertisers – they can set their own frequency caps so that they can accurately plan budgets and campaigns accordingly. We also have the usual domain reporting and domain exclusions to help advertisers keep track of where their ads are serving so that they can decide which sites they may not want their ads to be served on.
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