What Is the Future of Programmatic Advertising?
Programmatic ad spending has been growing at rapid rates over the years. It has risen to $127 billion in 2020 and is expected to be at $147 billion by 2021. Programmatic ads will also dominate the share of digital media spending; it is predicted to take up about 72 percent of the industry in 2021.
In the sections below, we will share five developments that will continue to affect this space in the months and years to come:
1. Location-based digital marketing campaigns
Target group optimization is at the core of programmatic advertising, and location-based services offer a way to identify and better understand target audiences. When your business leverages location-based data, they can combine real-world variables in your strategy. Major events in your area, traffic conditions, and even the weather can be factored into campaigns.
Advances in machine learning and new data transmission standards will further enrich location-based services. Artificial intelligence will only get better at data mining, pattern recognition, and predictive analytics, which improves ad efficacy. 5G will also make the delivery of ads faster and eventually open the doors to augmented or virtual reality advertising.
2. Alternatives to cookie-based tracking
The mobile advertising landscape will likely stay relevant, despite the decrease in cookie-based tracking processes. In the past, programmatic advertising has thrived in this space. Though ad reach will surely shrink, the trade-off will be a more meaningful, contextual targeting. People who want to see the ads will be the ones who would view them.
Networking and alternatives to cookies can also bring innovations, and zero-party advertising will produce higher quality data. If digital marketing agencies craft campaigns that target only those who want to see their ads, this will generate greater trust and show that the brand is transparent with their processes.
3. Digital out-of-home (DOOH) advertising
Outdoor advertising is a big opportunity for digital marketers. Digital out-of-home ads are suitable for brand and performance marketing, and it gives you publicity and targeted control of delivery. Although DOOH can be shown to a large number of people at once, the ads can be timed to appear at certain hours of the day or weather conditions.
DOOH can also expand to elevators, waiting rooms, and background advertising in brick-and-mortar stores. There is still much to explore in this area, but digital advertisements are definitely more efficient than static ones, giving digital OOH campaigns better impact when compared to traditional outdoor ads.
4. Using other media channels
DOOH advertising shows that programmatic campaigns can spread to channels aside from display ads. The goal is to have the customer experience the brand across multiple touchpoints and achieve an omnichannel marketing presence.
Programmatic radio ads, for example, can be aired on broadcasts via streaming services. In fact, podcasting is one of the fastest-growing industries in the U.S. today. It is estimated that there will be more than 160 million podcast listeners in 2023, and the industry is expected to produce more than a billion dollars in revenue by 2021.
5. Linear TV
An emerging technology, digitally placed linear TV ads are the next big advancement towards digitising traditional TV. The rise of the Smart TV has enabled digital advertisers to access a device designed to act like a computer. Put this alongside the rise of TV apps like Hulu and Netflix and digital delivery of ads onto a digital device emerged. Now, the final frontier of delivering ads in this environment is inside live, terrestrial television. The future is now.
Conclusion
The digital medium continues to be one of the best ways to advertise your business, especially for up and coming ones. The steady growth of digital, particularly in programmatic advertising, is driving several trends in the marketing industry. Business owners should take advantage of this time of rapid but steady growth in the online advertising space.
Let us at Petram Digital help you grow your brand in the digital age. We are a programmatic agency in New York, helping businesses generate sustainable growth with innovative digital solutions. Get in touch with us today!