Trends in programmatic advertising that you should know

Programmatic advertising is a method of automating the buying and selling of ad space over the digital landscape. Over the past few years, this method has evolved significantly, driven by the advancements in technology and shift in consumer preferences. According to market research firm Statista, marketers are putting as much as 50% of their media budget into programmatic advertising. It also states that by 2026, programmatic advertising is expected to surpass $300 billion. As the landscape continues to change, several key trends are shaping how programmatic advertising will unfold in the near future.

According to another report by Statista, 83% senior brand marketers use AI to target digital ads. Typically, in such a scenario, it seems that AI driven algorithms are taking over the digital ad space. AI-driven algorithms are not only optimising campaigns but also changing how ads are created and scaled. Unlike human creativity which can only create a set number of variations within the ad, AI technology can also tailor an ad to your preference with the help of NLP and image recognition. AI can also tap into user information delivering increased personalisation that boosts ad relevance, engagement and ROI. By identifying trends, patterns, and opportunities across different channels and audience segments, AI will play a crucial role in optimising media spend. Advertisers will rely more on AI-powered predictive analytics to forecast campaign performance and dynamically adjust media budgets.

Moreover, contextual targeting is gaining traction as an alternative to traditional cookie-based targeting, especially in light of growing privacy concerns. When Google announced their decision to deprecate third party cookies, an approach that became common in the digital landscape is contextual targeting where ads were delivered based on the content of the web page or app where the ad appears, rather than relying on user behaviour data. By analysing the context in which an ad is shown, advertisers can ensure that their messages are relevant to the content being consumed. This method not only improves ad relevance but also respects user privacy, making it a valuable strategy in a landscape increasingly focused on data protection and consent.

In this digital era, where many people have multiple devices, tracking and attributing conversions across different devices is a major challenge for advertisers. Cross-device attribution aims to provide a holistic view of the consumer journey by linking interactions across smartphones, tablets, desktops, and other devices. With the help of advanced tracking technologies and data integration, advertisers can tap into this trend and use it to their advantage. Effective cross-device attribution allows advertisers to allocate budgets more efficiently, optimise their strategies, and gain a comprehensive understanding of user behaviour.