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2024 is shaping up to be a big year for programmatic advertising. With the rise of AI, machine learning, and Google’s new Privacy Sandbox, there are plenty of advancements and trends to keep an eye on.
In recent years, there has also been a growing shift towards programmatic advertising, with brands and agencies investing more in automated buying and selling of digital ad space. As we look towards 2024, this trend is set to continue and accelerate in new and exciting ways.
Let’s explore some of the most significant programmatic advertising trends to watch out for in 2024.
2023 was a monumental year for AI and machine learning in advertising. AI dominated the conversations featured in keynote speeches and panel discussions at industry events.
The first real AI ad in 2023 for Gary & Bary’s Peanut Butter was a resounding success. It was a testament to the capabilities of AI and machine learning in optimizing real-time bidding for better efficiency.
In 2024, we can expect to see more advanced applications of AI in programmatic advertising. Ethical considerations around AI usage in advertising will also be a hot topic as brands and agencies navigate the fine line between personalization and privacy concerns.
Ad targeting and delivery will become more precise, thanks to AI-powered predictive analytics. Machine learning algorithms will also help to identify patterns and predict audience behavior, enabling more accurate audience targeting.
Another trend to watch out for in 2024 is the rise of white-label programmatic advertising solutions.
White-label solutions allow advertisers and publishers to use a branded version of the technology as a service. Businesses or marketers can buy access to this SAAS (software as a service) model for their needs.
As brands and agencies want more control over their programmatic advertising, white-label solutions will gain popularity. For greater programmatic control, brands can opt for a customized white-label solution, while agencies can choose a more turnkey option.
With the flexibility to cater to different needs, white-label programmatic solutions will continue to grow in popularity in 2024.
For advertisers, CTV and OTT present an opportunity to reach cord-cutter audiences and expand their reach beyond traditional TV. Programmatic capabilities are also expanding, with more platforms and networks offering programmatic buying options.
Despite the opportunities, challenges remain in navigating the fragmented CTV and OTT advertising landscape. The lack of standardized measurement and targeting methods can make it challenging fTraditional TV advertising has declined for years and has been replaced by Connected TV (CTV) and Over-the-Top (OTT) platforms. CTV refers to devices that can stream TV shows and movies, while OTT refers to streaming media services delivered directly over the Internet.
In 2023, CTV reached 80% of all U.S. households and is expected to grow even more in 2024. Or advertisers to optimize their campaigns effectively.
However, with technological advancements and data capabilities, we can expect to see more solutions emerge in 2024.
The shift towards mobile-first continues to dominate the digital advertising landscape. In 2023, mobile ad spending exceeded desktop for the first time, with a projected growth of 11% each year.
As users spend more time on mobile devices, advertisers follow suit by investing in mobile-first creative strategies. This includes designing ads specifically for mobile devices and utilizing features such as vertical video and interactive ad formats.
In addition, location-based programmatic advertising is gaining traction as a way to target audiences based on their real-time location. With the widespread use of smartphones, advertisers can use geofencing and location data to deliver highly targeted and relevant ads.
As mobile technology advances, programmatic advertising on this platform will only become more advanced and prevalent in 2024.
Apps and games are becoming increasingly popular platforms for advertising, with programmatic technology paving the way for easy monetization.
The global in-app advertising market is projected to reach US$352.70 billion by 2024, with an expected annual growth rate of 9.02% from 2024-2028. With the rise of mobile usage and the increasing number of app downloads, this market is expected to continue its growth in 2024.
For developers and publishers, programmatic in-app and in-game advertising offers a convenient way to generate revenue through ad placements. The app or game’s aesthetic and user experience remain intact, while the ads are seamlessly integrated into the content.
Dynamic Creative Optimization (DCO) is also gaining traction in the in-app advertising space. This technology lets advertisers personalize ad content based on user data, increasing engagement and conversions.
With the rise of podcasts and music streaming services, there has been a surge in audio content consumption.
According to eMarketer’s February 2024 forecast, US podcast listeners will spend an average of 54 minutes daily tuning into programs. The subscribers for streaming services such as Spotify and Apple Music are also on the rise, providing a largely untapped market for programmatic audio advertising.
In response, programmatic audio advertising is on the rise. This form of advertising allows for targeted, personalized messaging within audio content, making it more engaging and effective than traditional radio ads.
As with any form of programmatic advertising, data and technology is at the core of success. Advertisers must ensure they have a thorough understanding of their target audience and utilize dynamic creative optimization to personalize ad content effectively.
Virtual and Augmented Reality are now used for gaming, entertainment, and content consumption.
For example, with Oculus Quest, users can explore immersive digital environments, and with Pokemon Go, players can interact with virtual characters in their real-world environments. Meta verse, a term that describes an online virtual world, is becoming increasingly popular with platforms such as Roblox and Fortnite.
This creates new opportunities for programmatic advertising, as brands can now create immersive ad experiences within these virtual environments. Advertisers can use VR/AR technology to create captivating, interactive ad experiences that engage and entertain consumers.
In 2023, Burger King used a virtual reality experience to promote their new Whopper burger. The app lets users “burn that ad” by virtually setting fire to a competing fast-food ad and then claiming a free Whopper. This is just one example of how VR/AR can be utilized in programmatic advertising.
However, technical and ethical challenges for programmatic VR/AR advertising still need to be addressed. As the technology is still in its early stages, advertisers need to consider the limitations and ensure seamless integration of ads with the virtual experience.
Programmatic advertising also allows experimentation with new ad formats, such as interactive and engaging experiences.
Brands can use augmented reality, virtual reality, or interactive video ads to create unique and memorable consumer experiences. This not only grabs their attention but also increases engagement and brand recall.
Dynamic Creative Optimization (DCO) is another innovation that allows for personalization at scale. Using data and technology, DCO delivers personalized ad experiences based on user behavior, interests, and demographics.
Another noteworthy advancement in programmatic advertising is Generative AI – a technology that uses algorithms to generate original ad content automatically. For example, it can create personalized ads for each consumer in real-time, further enhancing the effectiveness of programmatic ads.
Privacy concerns and regulatory changes have strained traditional cookie-based targeting methods. With the increasing focus on data protection, third-party cookies are becoming less feasible.
In response, contextual targeting is gaining traction as a viable alternative. Instead of targeting user behavior and data, advertisers can target ads based on the content’s context.
As consumer privacy becomes a top priority, contextual targeting is a less intrusive way to reach audiences. With advances in natural language processing (NLP) and machine learning (ML) technology, contextual targeting can deliver highly relevant and personalized ads in a cookie-less world.
With the limitations of third-party cookies, first-party data is becoming a valuable asset for advertisers. This data type is collected directly from consumers and includes purchase history, website interactions, and loyalty program memberships.
To gather this data, brands can use various methods such as surveys, quizzes, and social media engagement. First-party data can lead to more accurate targeting and higher conversion rates for programmatic advertising.
However, first-party data comes with its own set of challenges, such as data silos and incomplete information. Advertisers must find ways to centralize and integrate this data to make the most of it.
The implementation of global privacy regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States, has forced advertisers to reassess their data collection and targeting strategies.
These regulations aim to give consumers more control over their personal data and limit its use by third parties.
This shift towards transparency and data protection is also reflected in the rise of consent-based advertising. Advertisers must now obtain explicit user consent before collecting and using their data.
This means creating more transparent and user-friendly privacy policies and opt-in processes.
The decentralized nature of blockchain technology provides a solution to many of the challenges faced by programmatic advertising, including transparency and fraud prevention.
With blockchain, all transactions are recorded on a secure and immutable ledger, ensuring trust and accountability in the supply chain. Advertisers can have greater visibility into their ad spend and verify that their ads are being delivered to the intended audience without intermediaries altering the data.
Several companies are already implementing blockchain in their programmatic advertising processes, and it is expected to become more prevalent in the future.
One example of successful blockchain implementation is Brave, a privacy-focused web browser. They use blockchain to give users control over their data and reward them with Basic Attention Tokens (BAT) for viewing ads. This incentivizes users to opt-in to seeing ads, creating a consent-based and transparent advertising model.
Advertisers must adapt to these changes and embrace new technologies to stay ahead in the ever-evolving landscape of programmatic advertising. This may include partnering with a top programmatic partner that prioritizes privacy compliance and offers advanced targeting options.
VenziMedia, a leading programmatic DSP, is one such partner that offers contextual targeting, first-party data collection and integration, and advanced fraud prevention measures. They also prioritize data privacy by complying with global regulations such as GDPR and CCPA.
If you are an advertiser looking to future-proof your programmatic advertising strategy, VenziMedia can help you navigate this changing landscape
