With a radical switch from manual ads to algorithmic-driven real-time placements, programmatic advertising has been a game-changer in the digital realm. It has allowed brands to amphify their precision and efficiency elements, giving them an upper hand in strategically using data analysis for ad campaign improvements, thereby enhancing customer interaction and return on investment. As technological advancements surge and market expectations shift, the ecosystem of programmatic advertising continues to adapt. This article covers the main trends pertaining to programmatic advertising that will be beneficial for both publishers and advertisers.
Upcoming changes in the programmatic advertising industry
Initiating from 2024, the programmatic advertising field will witness drastic transformations. As the global demand for data privacy laws grows, along with an increased consumer preference for privacy-centric marketing tactics, Google has begun to phase-out third-party cookies from Chrome.
While the final verdict remains unclear regarding its objective of fully banning the usage of cookies by the year end, what is certain is the shrinking relevance of cookies, which have been predominantly dismissed in browsers like Safari and Firefox. The disappearance of cookies holds enormous implications for the field of programmatic advertising, since cookies played an integral role in tracking users’ online conduct, hobbies, and personal preferences, thus enabling advertisers to offer bespoke ads to prospective clients.
Technological shifts and sustainability matters will serve as catalysts for future change.
In regards to AI, arguably it stands as the most prominent factor instigating change. AI can enhance programmatic advertising by augmenting and optimizing processes of ad purchases, utilizing machine learning algorithms for the analysis of data in large volumes, and enabling ads to be better targeted and subsequently resulting in higher consumer engagement and increased conversion rates. Statista suggests that around 88% of marketers that have incorporated AI assert that it aids in the individualization of consumer journeys across various channels.
As for sustainability, the programmatic ad industry presently falls short and requires faster evolution. Current calculations suggest that programmatic advertising generates approximately 215,000 metric tons of carbon emissions each month across five key global economies, equivalent to the consumption of over 24 million gallons of gasoline.
Prospective growth in the programmatic advertising market
The dynamism of these factors and their bearing on the programmatic industry are discussed in this section.
One aspect is abundantly clear: despite imminent challenges, the future potential is considerable. According to a study, the programmatic advertising market is projected to rise to $28.12 billion by 2028, growing at a compound annual growth rate (CAGR) of 22.6%.
Analysis conducted by Allied Market Research indicates that programmatic growth will be chiefly due to an increase in smartphone usage, improved communication networks, and a rise in digital media advertisements across various sectors.
Top three programmatic advertising trends
As the programmatic industry approaches a prosperous future, it concurrently welcomes modification. This section highlights three main programmatic advertising trends to look out for:
- Adoption of interoperable, privacy-oriented technologies. Innovative adtech firms are launching alternative programmatic tools that prioritize privacy while promising to retain personalized advertising at scale across the open web. The post-cookie era will likely witness publishers and brands using a variety of identifiers and other technologies to collect aggregated data to create user profiles and develop audiences. Interoperability will become a vital aspect, providing publishers and brands with a plethora of options in the increasingly fragmented programmatic ecosystem.
- Entrance of new players. New players are likely to enter the evolving adtech space. Telecom companies are likely candidates, bringing the promise of sophisticated network intelligence that could form the foundation for audience verification services. This could allow publishers and brands to enhance and activate their first party data, ensuring that the right message reaches the right audience at the right time.
- Zero tolerance towards waste. In the quest for sustainability, optimizing campaigns will go beyond merely guaranteeing return on investment or campaign performance. The need to urgently deal with inefficient campaigns that target incorrect audiences and resources lost to programmatic ad fraud can be addressed more efficiently using approaches that validate audience data right at the source, thus ensuring that campaigns reach exactly to their intended audience every time.
Although programmatic advertising has facilitated the digital transformation of marketing, past benefits have come at the expense of users’ privacy. Future programmatic advertising trends are expected to offer personalized and real-time engagement while prioritizing end-user privacy. These advancements will benefit consumers, advertisers, and publishers, increase efficiency, minimize wastage, and contribute towards making digital advertising more sustainable.
