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Programmatic advertising is an adtech<\/strong> (advertising technology) element. Essentially, programmatic advertising is a way for marketers to use technology to automate procedures like bidding, requesting, and negotiating when it comes to online ads. According to the statistics below, it has been one of the most rapidly growing segments of modern advertising:<\/p>\nSource: https:\/\/statista.com\/<\/em><\/p>\nThis tactic uses algorithms and tools to determine, order, and, eventually, purchase some much-needed ad space. It allows marketers to optimize the ad copy, the targeting and, ultimately, create a marketing plan with specific KPIs and target audience that will do the brand\u2019s efforts justice across all marketing platforms.<\/p>\n
Technologies like Augmented or Virtual Reality (AR\/VR), machine learning, and even virtual assistants like Alexa or Siri can give marketers some much-needed data to allow for a tailor-made advertising experience. But what is it that will shape programmatic advertising trends for this year \u2013 and beyond?<\/p>\n
AI Will Be Golden<\/h2>\nProgrammatic advertising already uses AI, which makes it a lot more efficient. AI allows programmatic advertising to use data to educate itself and measure and optimize ad performance,<\/p>\n
From the ad\u2019s position to the channel, device, copy, and visuals, AI offers valuable data that marketers can use to create a personalized ad message.<\/p>\n
Through AI, marketers can study the audience more holistically since AI can distinguish between millions of patterns that marketers\u2014or humans, for that matter\u2014can not see. It can also map the customer journey effectively, pinpoint the optimal course of action, and improve strategy and planning.<\/p>\n
Another reason AI will continue to dominate programmatic advertising and the marketing actions that it can help boost is the fact that it can combine and analyze a wide variety of data: from age, educational background, and gender to the preferred device according to gender or age, or purchases per geographic location, AI can create segments updated with real-time data.<\/p>\n
AI can also allow marketers to create buyer personas similar to a brand\u2019s ideal customer as the customers themselves.<\/p>\n
AI uses data from previous transactions, behavioral data, geo-location, and everything that matters to create buyer personas and generate messages for these personas. Since AI-generated buyer personas can correspond to prospects one-on-one, the ad\u2019s message is spot-on and tailor-made.<\/p>\n
By recognizing patterns effectively, AI can allow marketers to create and place ads that will sell while reducing costs like Customer Acquisition Cost (CAC) and increasing metrics like the sought-after ROI.<\/p>\n
Connected TV Is Here to Stay<\/h2>\nConnected TV (CTV) is expected to be widely used in programmatic advertising. CTV<\/strong> can deliver personalized content instead of a classic TV \u2013 connecting it to the Internet and accessing apps like Netflix, Apple TV, or even Spotify.<\/p>\nAll of the above display ads, seeing as they\u2019re platforms that can deliver tailor-made, optimized content, especially to demographics like Millennials and Gen-Z that enjoy anything personalized far more than their predecessors (Boomers and Gen-X).<\/p>\n
Platforms like YouTube deliver specific and personalized ad messages to free plan users that effectively urge them down the sales funnel. According to the following YouTube stats, \u201cYouTube has 2,70 billion users as of March 2024.\u201d Since CTV is a way to access this platform, programmatic advertising can create targeted ads for a broader audience\u2014not to mention the high engagement rates of video ads.<\/p>\n
Of course, the above statement is not set in stone. Remember that video ads are a great way to engage, so long as the content is personalized and optimized. After all, no consumer loves the idea of their screen time being interrupted by an ad. Programmatic advertising can help marketers create fewer but more engaging ads that will \u201cspeak\u201d to specific audiences through all the right devices.<\/p>\n
Switch to Alternative IDs<\/h2>\nAt last, the time has come and third-party cookies will finally become a part of history in 2024. The elimination process has already been started and is to be finished by the end of the year. Due to the huge impact of this technology on the market (more about cookies in the programmatic ecosystem), it takes some time for the market to switch, so both publishers and advertisers are forced to look for alternatives:\u00a0<\/p>\n
\nFirst-party data<\/strong>: data obtained directly from users. This information can be used for targeting.<\/li>\nAlternative identifiers<\/strong> that are similar in functionality to third-party cookies but comply with current privacy regulations, such as Google\u2019s Privacy Sandbox.\u00a0<\/li>\nContextual targeting<\/strong> is selecting an audience based on user search queries or watching similar site categories. Relevant ads are then shown to this audience.<\/li>\n<\/ul>\nAll alternative identification technologies must not violate the privacy standards prescribed in regulations (GDRP, CCPA, etc.) and must allow the use of effective advertising strategies with targeting.\u00a0\u00a0<\/p>\n
The cookie apocalypse and transition to alternative targeting technologies have been the biggest trends in programmatic advertising since 2021.\u00a0<\/p>\n
OTT and DOOH<\/h2>\nThese acronyms may seem confusing, so let\u2019s start with definitions:<\/p>\n
\nOTT<\/strong>: It stands for Over-The-Top. Through OTT advertising, consumers can access video content on their CTV device through their internet connection.<\/li>\nDOOH<\/strong>: This stands for Digital-Out-Of-Home advertising, essentially combining Digital and Out-Of-Home offline advertising.<\/li>\n<\/ul>\nLet\u2019s see why these two will be essential components of programmatic advertising in 2024 and beyond.<\/p>\n
OTT services that can be accessed by CTV are top-rated. They are expected to replace regular TV as we know it. To put this statement into numbers, \u201c88% of households are reachable by Connected TV advertising\u201c. That is in the US alone. OTT streaming services (Amazon Prime, Disney\/Hulu, Netflix, HBO MAX, etc.) offer programmatic advertising the opportunity to grow with their market. OTT advertising<\/strong> is available through more means than OTT streaming services, though.<\/p>\nGaming consoles like PlayStation or Xbox also run to receive and display CTV Video and Display ads.<\/p>\n
But while OTT keeps people indoors, programmatic advertising will be significantly influenced by what can be advertised outdoors. DOOH could be like the products placed near the counter that make the perfect impulse purchase.<\/p>\n
Marketers that use DOOH for their programmatic advertising can combine location data with their ads. This allows them to write tailor-made content. This content\u2019s reach can be immense, as brands can display their DOOH ads in train or bus stations or shopping malls.<\/p>\n
Think of Times Square, for example. It is a hotspot for DOOH content that can reach more consumers. Programmatic advertising can refine DOOH using real-time behavioral data, eventually displaying a highly personalized and targeted ad.<\/p>\n
DOOH is so prominent in programmatic advertising and will be a must-have in 2024 for yet another reason: It allows marketers to utilize creative content and even UGC through their brand\u2019s social media. Moreover, DOOH can help create an omnichannel experience through targeted advertising, using location data, and redirecting prospects to each brand\u2019s closest salespoints.<\/p>\n
Podcasts And Voice Assistants<\/h2>\nPodcasts are to Millenials and Gen-Z what radio was to Boomers and Gen-X. There are as many platforms for podcast hosting as there are podcasts covering all tastes and interests. This means that they can penetrate a broader audience spectrum and allow more people to engage with a brand\u2019s ads.<\/p>\n
Programmatic advertising allows brands to find ad space and create and execute targeted ads for podcast listeners. Podcast ads<\/strong> can either be in the form of copy to be read by the host, responsible for incorporating the ad copy into the podcast\u2019s content, or a dynamic, personalized, and tailor-made ad.<\/p>\nThe first method is effective since it is seamless and non-invasive. The second method is effective due to how its content can be hyper-personalized.<\/p>\n
Finally, never forget the data goldmine that is a voice assistant in programmatic advertising<\/strong>. Siri, Alexa, and other voice assistants can help marketers identify trends that would be impossible without using programmatic advertising.<\/p>\nLike podcasts, voice assistants can \u201cdisplay\u201d an ad or a brand\u2019s message by merely responding to a user\u2019s query.<\/p>\n
![\"programmatic](\"https:\/\/adtelligent.com\/wp-content\/uploads\/2024\/05\/Digital-advertising-spending-in-the-United-States-from-2021-to-2027.png\" "\\"Programmatic")