The Future of Programmatic Advertising
Programmatic advertising has come a long way over the past few years. The concept of buying and selling online advertisements in real-time using automated technology has revolutionized the advertising landscape. As we surge forward in technological advancement, the future of programmatic advertising is brimming with grand possibilities informed by data-driven decisions, artificial intelligence (AI), personalization, and transparency.
“Demand for programmatic advertising is skyrocketing. According to a report by Zenith, programmatic advertising is projected to grow by 30% in 2021, reaching $98 billion and representing 68% of global digital media ad spend,” says Jonathan Barnard, Zenith’s Head of Forecasting. It's clear that this digital marketing strategy is far from reaching its peak.
Artificial Intelligence and Machine Learning
AI and machine learning are at the forefront of the future of programmatic advertising. These technologies will enable more efficient and accurate ad buying, and improve targeting and personalization. With AI, advertisers will be able to analyze data more effectively to make better predictions about what users are interested in and how they will behave.
Ad personalization
Personalization is becoming increasingly important in the digital advertising universe. Consumers are now expecting ads to fit seamlessly within the context of their own individual lifestyles and interests. Consequently, programmatic platforms will need to evolve and become smarter to better cater to these personalised experiences.
In the future, programmatic technology will allow advertisers to dynamically create unique content for each individual viewer. For instance, instead of showing the same ad to every single user, the same ad spot could show a different version of the advertisement tailored to the viewer's unique interests, demographic data, past behaviors, or real-time context.
The rise of mobile and video
The future of programmatic also lies in the increasing dominance of mobile and video. Mobile programmatic ad spending has been growing significantly and will continue to do so. As people are spending more time on mobile devices, advertisers will continue to look for ways to capitalize on this trend.
Similarly, video streaming has gained remarkable popularity over the past few years and this trend is expected to fuel the growth of programmatic video advertising. As more consumers shift towards platforms like Netflix, Amazon Prime, and Disney+, the advertising industry keeps up by pivoting their spending to programmatic video advertising to effectively reach users on these platforms.
Increasing Transparency
Transparency has been an ongoing issue in the world of programmatic. Advertisers often grapple with the lack of understanding of where their ads are placed, how much they're actually paying, and whether their ads are being viewed by real people or bots.
Future programmatic advertising pledges more transparency. Changes will be spurred by demand from advertisers for more control and clarity over their ad placements. There's an increasing push for programmatic advertising in-house which means platforms will need to evolve and provide more self-service tools for advertisers.
The rise of Programmatic TV Advertising
Programmatic TV advertising is a growing sector of programmatic buying. It allows advertisers to deliver ads to specific audiences, regardless of whether they're watching on a linear TV screen or an on-demand streaming service. This provides advertisers with the best of traditional TV advertising (wide reach, high-quality production value) and digital advertising (targeting specific audiences, detailed analytics). Consequently, we might see Programmatic TV grow significantly as cord-cutting accelerates and advertisers look for new ways to reach audiences.
Conclusion
In conclusion, the future of programmatic advertising is bright and full of advancements. AI and machine learning capabilities will amplify the power of programmatic, while enhanced personalization promises richer customer experiences. The growing dominance of mobile and video will bring new opportunities and challenges for advertisers. Increasing transparency will strengthen the industry and build trust among advertisers, and programmatic TV will reach new heights, providing traditional and digital benefits.
However, along with these opportunities come threats and challenges. These include privacy considerations around targeted advertising, algorithm biases, and concerns about the ‘black box' nature of programmatic bidding. These issues will require us to closely monitor the evolution of programmatic and ensure a robust foundation for its future. As we move forward, there's no doubt that programmatic advertising will continue to morph, evolve, and influence the digital advertising landscape in significant and interesting ways.
