If you take a look around, you will notice how reliant we have become on technology. Almost every individual around you is holding a smartphone in their hands and browsing the internet. Cybersecurity Ventures projects that around 6 billion people will use the internet in 2022 [1]. This number tells us that the internet penetration has scaled new heights and this trend will continue. That is why programmatic advertising has garnered significant momentum over the past few years, becoming a default foundation for digital media buying.
With almost three-fourths of the global population on the internet, online advertisers should make the most of the favorable landscape. Over the past few years, programmatic advertising has emerged as an effective and flexible medium to enhance online presence. It goes without saying that the COVID-19 pandemic has also impacted the programmatic landscape, paving the way for some exciting programmatic advertising trends.
Today, the programmatic advertising landscape has its own share of challenges and complexities. However, on the flip side, there are a plethora of opportunities for growth in the online advertising space. In this article, we will explore a few programmatic advertising trends, which marketers can use to their advantage.
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Programmatic advertising trends for online advertising
1. Companies are opting for in-house programmatic advertising
Just under a decade ago, only a few established brands were handling their programmatic advertising buying. However, things have changed now as marketing agencies have either completely or partially shifted their programmatic advertising in-house.
One of the main factors driving this programmatic advertising trend is the increasing desire of brands to control first-party data and create deeper relationships with consumers. It would be fair to say that advertisers demand transparency across the buying process. In addition, as consumer behavior and trends change in a blink of an eye, media buyers should have access to real-time data which they can use to adjust their campaigns, connect with relevant consumers, and thus, increase their chances of success.
Some of the other benefits of in-house programmatic advertising include significant cost savings and resource efficiency. Having said that, setting up an in-house programmatic team is not a walk in the park and could take some time.
2. Changes in consumer targeting
It is very likely that we will soon bid farewell to third-party cookies from Chrome. This is why 2022 will be an interesting year, especially for developing new technologies that can track codes. Companies should increasingly work toward becoming more transparent to their consumers. The new solutions should ensure that consumers are in control of how and when their data is used.
While these are some noteworthy changes, there is no reason to panic. Targeted campaigns are not going anywhere. Despite the absence of multiple persistent IDs, media buyers will have access to placements and publishers, with contextual targeting likely to gain attention. This programmatic advertising trend will enable brands to forge stronger relationships with their consumers in ways cookie-based strategies did not allow them.
Besides, recent research by Delloite Digital revealed that consumers are more inclined to contextually sensitive brand experiences. This is because they cater to the immediate concerns, instead of primarily depending on past browsing and behavior.
3. Staggering growth of digital out of home
Digital out of home was treading through a rough patch in the past decade. However, interest in digital out of the home has increased again as online advertisers are seeking new and out-of-the-box ways to target their audience. In the U.S., DOOH spending is likely to reach $2.58 billion in 2022 [2], and as digital advertising screens continue to increase around the world, digital out of home will be a major component of programmatic advertising in the upcoming years.
Plenty of factors justify the investment in programmatic DOOH ads, including wider reach and a shield from ad blockers. In addition, digital out of home will predominantly thrive in a cookieless future as its alternative targeting techniques and a much-needed growth environment for contextual advertising.
4. Programmatic audio will explode
Visual media had an upper hand over audio media in the past decade. However, audio advertising is making a comeback and becoming a key component of a brand’s advertising strategy. It is also a channel that equips advertisers to enhance their omnichannel strategies organically. This can be achieved easily as audio advertising as the ability to reach a targetable and mobile audience wherein screens are eliminated from the picture.
Another reason why this programmatic advertising trend is picking up pace is due to the growing awareness regarding the downside of staring at screens. Audio comes in like a breath of fresh air and a welcome escape from the onslaught of video advertisements. There are some encouraging signs which suggest that the interest in digital audio is on the rise. eMarketer predicts that on average, audio listeners invest around 97 minutes on digital audio [3]. That is around 30 minutes more than the average time spent on social media.
Programmatic audio provides exceptional granular testing capabilities. Ad buyers can explore different audience segmentation parameters including point of interest, location, agent, genre, weather, and more. Audio advertising enables marketers to engage with users at the right place and at the right time.
Wrapping it up!
The last few years brought about its fair of uncertainties in the online advertising space. Although 2020 saw slow movement and progress, 2021 was contrasting. 2022 has been an amazing year for programmatic advertising as the world has gradually reached normalcy following the global pandemic. New opportunities and growth initiatives have sprung up, especially due to the rise of digital out of home, audio advertising, and connected TV.
It is the right time for programmatic marketers to find solutions for the existing challenges. The digital era is well and truly upon us and programmatic advertising will continue to grow in stature in the years to come.
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Feature Image Source: rawpixel.com
Image 1 Source: rawpixel.com
Image 2 Source: rawpixel.com
Sources:
[1] Morgan. S (2019) “Humans On The Internet Will Triple From 2015 To 2022 And Hit 6 Billion” Cybercrime Magazine [online] Accessed [May 2022]
[2] [3] Benes. R (2021) “US Out-of-Home Ad Spending 2021” Insider Intelligence [online] Accessed [May 2022]
