The digital landscape is evolving rapidly, and the platforms and tools that were effective last year may quickly become outdated. To develop the most impactful media buying strategies and remain competitive, you need to understand the key trends that will influence programmatic advertising over the next 12 months.
By getting ahead of these 2024 trends now, you can gain an advantage and drive improved results.
1. Transition Away from Third-Party Cookies
As third-party cookies phase out, marketers will need to find alternative targeting methods.
First-party data collected from a brand's own website and customer interactions will be critical. Building comprehensive profiles of identified and anonymous site visitors allows for personalized experiences and relevant ad targeting. Loyalty programs, polls, and surveys also provide valuable first-party data.
Walled gardens collect vast amounts of data and allow targeting within their platforms. While they limit transparency and control, they do provide scale and advanced targeting options based on proprietary data and machine learning. Partnerships with walled gardens will continue to grow in importance. By 2027, the big names like Facebook and Google are projected to account for 83 percent of the digital ad revenue.
Competitors may need to collaborate to find alternative solutions, set standards, and share non-sensitive data. Alliances between brands, agencies, and ad tech companies have already started forming. A collaborative approach will likely yield the most comprehensive solutions to replace third-party cookies.
2. Growth of Contextual and Private Marketplaces
Programmatic direct and private marketplaces (PMPs) are expanding, allowing advertisers to automate guaranteed buys with premium publishers. PMPs provide more control and transparency over inventory and audiences. Contextual targeting is also resurfacing, using natural language processing to match ads with content. This aims to balance privacy concerns with personalization.
To leverage these trends, marketers should:
Negotiate deals with select publishers to access high-quality, targeted inventory through PMPs.
Use contextual data and semantic analysis to target ads based on content topics, keywords, and themes.
Test and optimize both contextual and PMP campaigns to maximize performance and scale spend.
Consider working with supply-side platforms (SSPs) that provide access to multiple PMPs and granular contextual targeting options.
3. Growing Trend of Live-Action Video Advertisements
Programmatic advertisers are producing short live-action videos, often just 3 to 15 seconds long, to capture attention and convey a brand message. These ads are optimized for mobile viewing and placed before, during or after other short-form videos. Viewers find the content relatable and realistic. Memorable characters and storylines, though brief, can be very impactful.
Demand for live-action video ads will rise significantly in 2024 as more publishers open their video inventories to programmatic buying and as advertisers allocate more of their programmatic budgets to video. Creativity and personalization will be key to producing impactful short-form live-action video ads at scale. Dynamic video ads with personalized elements customized based on viewer data will transform programmatic video advertising.
4. The Expansion of Connected TV (CTV)
According to a report by Innovid and Digiday, 63% of participants indicate that CTV ads enable more precise targeting of audiences. That’s why more folks are ditching regular TV for streaming and connected TVs, making programmatic advertising on connected television a big thing in 2024.
Looking forward, expect some changes like companies teaming up, tougher competition for ads, more people using connected TVs, and better ad tech. This could mean a mix of ads, which is good because nobody wants to see the same ones over and over. It bugs viewers, doesn't do justice to creative ads, and might even turn people off buying stuff.
5. Advancing Data Protection
Enhanced data protection is pivotal in programmatic advertising for these key reasons:
Privacy Compliance: Adhering to regulations like GDPR and CCPA is crucial to avoid fines and legal consequences, emphasizing the need for robust data protection.
Data Security: Strengthened data protection measures are vital in the face of increasing cyber threats, safeguarding user data and preserving the reputation of the advertising ecosystem.
User Consent: Compliance with data privacy regulations ensures explicit user consent, reducing legal risks associated with data collection and processing.
Reducing Ad Fraud: Improved data protection contributes to minimizing ad fraud through increased transparency and verification processes in the programmatic ecosystem.
Prepare for 2024 by staying mindful of these evolving trends in the programmatic landscape. Anticipate and adapt to seize opportunities and tackle challenges. The proactive will thrive, while the unaware may be left behind. Now is the time to prepare yourself.