The Future of Programmatic Advertising

Programmatic advertising is enormous, netting $88 billion in revenue in 2023 and hundreds of billions of dollars spend worldwide. Its continued growth will only slow down as it reaches total market saturation.

But the future of programmatic advertising is defined by far more than simply growth. We’re taking a look at four key areas that are defining programmatic advertising’s future: AI, CTV, private marketplaces (PMPs), and contextual advertising.

AI-TURBOCHARGED PROGRAMMATIC ADVERTISING

AI and machine learning is boosting programmatic marketing in aspects ranging from targeting to measurement.

Also interestingly, programmatic advertising is being pushed forward with content creation, which has opportunities opening up from automated content generation as well as assisting marketers throughout the creative process.

The enormous benefits AI provides are reflected in ad spend: AI-enabled ad spending is anticipated to reach $1.3 trillion in the next decade, according to the Forbes Technology Council.

THE BENEFITS OF AI IN PROGRAMMATIC

• Improved personalization
• Faster content creation
• Inspiration for content ideation
• Enhanced brand suitability

PROGRAMMATIC CTV ADVERTISING

In CTV advertising, programmatic has had a growing dominance of the total spending share.

By 2025, programmatic CTV advertising is set to grow to $28.95 billion, 89% of the total CTV ad spending.

The reason why is simple: with lower costs and greater efficiency than counterparts such as direct marketing, programmatic is the clear choice for most marketers in the growing CTV advertising industry.

THE BENEFITS OF PROGRAMMATIC CTV ADVERTISING

• Lower cost
• Greater efficiency
• More transparency
• More control for the buyer

PRIVATE MARKETPLACES (PMPs)

While direct programmatic comfortably dominates programmatic advertising, private marketplaces are notably pulling ahead of open exchanges for second place.

THE BENEFITS OF PMPs:

• Protection against ad fraud
• Preservation of buyer-seller relationships
• Inventory quality assurance
• Insulation from brand safety risks

CONTEXTUAL ADVERTISING

With Google’s phase-out of third-party tracking cookies from Google Chrome, to happen entirely by the end of 2024 (barring further delays), programmatic advertising will have completely entered the cookieless future for one that’s more privacy-protecting.

There won’t be one single solution that’s a replacement. However, contextual advertising is going to take much more of a centre stage.

Enhanced by AI intelligence, as is the case with ShowHeroes’ SemanticHero, contextual targeting can bring relevant advertising while protecting user privacy.

By matching programmatic ads to be relevant with the context on the surrounding site, advertisers can achieve brand uplift in addition to performance-based goals such as click-through.

THE BENEFITS OF CONTEXTUAL ADVERTISING:

• Privacy protecting
• Enhancable with modern AI technologies
• Performable at scale
• Precise targeting

SUCCEEDING IN PROGRAMMATIC ADVERTISING

Get in touch with us to learn more about programmatic advertising on screens including CTV and utilizing cutting-edge AI technology for highly relevant contextual advertising.

Fill out the form below 👇