Microsoft to launch online video advertising initiative in the UK

Microsoft set to begin programmatic video ad buying in the U.K.

Posted on Apr 2, 2014 by YuMe

Technology has caused video advertising to become more pervasive. It's nearly impossible to pick up your smartphone, tablet or laptop and not encounter at least one digital video ad.

Many brands have begun implementing digital video advertising strategies to generate more revenue. However, there is one large organization that is a late arrival to the growing online video advertising trend. According to British newspaper The Guardian, Microsoft will soon begin programmatic video advertising in the United Kingdom.

Adotas defines programmatic ad buying as the usage of software – similar to Video Reach, our branded programmatic video solution – to buy and sell video ads that can be used to target specific audiences. This practice can help brands gain more impressions.

The Guardian states Microsoft plans to establish a network in the U.K. that will allow advertisers to automatically buy content from video ad publishers.

"Video is a hot topic and programmatic media trading is an area of massive growth for the industry," Owen Sagness, general manager of Microsoft Advertising and Online, U.K., told The Guardian. "With the supply and demand model driving efficiency and ROI for brands, automated buying will continue to become more important for advertisers looking to keep up with the consumers' online behavior day in, day out."

A recent survey conducted by eMarketer found programmatic ad buying activity, through the use of real-time bidding, increased 76.5 percent last year and it is anticipated the trend will grow another 43.4 percent in 2014, accounting for $4.86 billion in revenue.

According to SpotXchange, programmatic ad buying in Europe will reach $310.29 million in revenue this year, and grow to $862.06 million by 2017, which will represent 33.2 percent of all online video advertising revenue in the region.