Did you know programmatic digital display ad spending is forecast to grow by 15.9% year-over-year in 2024, while programmatic digital video ad spending is projected to grow by 20.9% – outpacing the overall 13.6% growth in digital ad spending? 

Programmatic advertising is changing quickly as we move deeper into the digital age. This automated way of buying and selling ad space has changed the way ads are shown, giving marketers more speed, targeting options, and return on investment than ever before. Let’s look ahead to 2025. Several major trends will likely determine how automated advertising works in the future. Today, we will discuss these trends and how they will change the industry.

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1. The Rise of Programmatic CTV and OTT Advertising

Over-the-top (OTT) and Connected TV (CTV) services are now important parts of how people watch media. More people are cutting the cord and using streaming services instead, and as a result, companies are using automated technology more and more to reach people on these platforms.

We think that automated CTV and OTT ads will grow greatly in 2025. There will be even better ways to show highly focused, personalised ads to people who watch on Netflix, Hulu, and Disney+. Improvements in data analytics will fuel this trend by helping marketers learn more about how viewers behave and what they like.

2. Increased Focus on First-Party Data

Third-party cookies are being phased out, so marketers are increasingly using first-party data to power their automated advertising. First-party data, which comes straight from customers, is full of useful information that can make ads more relevant and effective.

Brands will depend more on first-party data in 2025 as they try to keep and improve their targeting skills. Strong data collection and management plans are needed for this change to happen. Also, money must be spent on tools that make adding first-party data to programmable platforms easy.

3. The Growth of Programmatic Audio Advertising

Podcasts and audio streaming services have grown very quickly in the past few years, and this growth looks like it will continue for a while. Programmatic audio advertising lets brands show ads to viewers that are more relevant to them based on their likes and dislikes and how they act. This gives brands a unique chance to interact with audiences without being annoying.

Programmatic audio advertising is likely to become even more popular in 2025 as businesses realise its power to reach people who are very interested in what it has to say. One of the main things that will make this trend happen is the ability to show dynamic, context-relevant ads in real-time.

4. Advancements in AI and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are at the forefront of display programmatic advertising innovation. These technologies enable advertisers to analyse vast amounts of data, optimise ad placements, and deliver personalised experiences at scale.

In 2025, we anticipate further advancements in AI and ML that will enhance the capabilities of programmatic platforms. From predictive analytics to real-time bidding optimisation, these technologies will play a pivotal role in improving the efficiency and effectiveness of programmatic campaigns.

5. Emergence of Programmatic Out-of-Home (OOH) Advertising

Out-of-home (OOH) advertising has traditionally been a static medium, but digital billboards and signage have opened up new possibilities for programmatic OOH. This form of advertising allows brands to deliver targeted ads in real-time based on location, weather, and audience demographics.

In 2025, programmatic OOH advertising is expected to gain momentum as more brands recognise its potential to reach consumers in the physical world. Integrating data and technology will enable advertisers to deliver dynamic and contextually relevant ads that capture attention and drive engagement.

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Programmatic Advertising Trends to Watch in 2025 2 -

6. Enhanced Data Privacy and Compliance Measures

As data privacy regulations continue to evolve, advertisers must navigate an increasingly complex landscape to ensure compliance. In 2025, we expect heightened scrutiny of data practices and a greater emphasis on transparency and consumer consent.

Advertisers must implement robust data privacy measures and abide by regulatory changes to avoid potential pitfalls. This trend will also drive the adoption of privacy-enhancing technologies, such as differential privacy and secure multi-party computation.

7. The Rise of Contextual Targeting

With the decline of third-party cookies, contextual targeting has emerged as a viable alternative for reaching relevant audiences. This approach involves delivering ads based on the content of the webpage or app rather than relying on user-specific data.

In 2025, we expect to see a resurgence of contextual targeting as advertisers seek to deliver relevant ads without compromising user privacy. Advances in natural language processing (NLP) and semantic analysis will further enhance the accuracy and effectiveness of contextual targeting.

8. Programmatic Advertising in Emerging Markets

Emerging markets present a significant growth opportunity for programmatic advertising. As internet penetration and digital adoption continue to rise in Asia, Africa, and Latin America, advertisers increasingly turn to programmatic technology to reach these audiences.

In 2025, we anticipate a surge in programmatic display advertising in emerging markets, driven by improved infrastructure, growing digital literacy, and increasing advertiser interest. This trend will open up new avenues for brands to expand their reach and drive growth in untapped markets.

9. Integration of Programmatic and Influencer Marketing

Influencer marketing has become a powerful tool for brands to connect with consumers through trusted voices. In 2025, we expect to see a convergence of programmatic advertising and influencer marketing, enabling advertisers to leverage data-driven insights to identify and collaborate with influencers.

This integration will facilitate more targeted and measurable influencer campaigns, allowing brands to reach specific audience segments more precisely. Programmatic technology will also streamline the influencer marketing process, from discovery and collaboration to campaign execution and measurement.

10. Greater Emphasis on Ad Quality and User Experience

As consumers become more discerning and ad-blocking technology becomes more prevalent, the quality of ads and the overall user experience will be paramount. In 2025, advertisers will emphasise creating high-quality, engaging ads that provide value to consumers.

Programmatic platforms will increasingly prioritise ad quality and user experience, with measures such as frequency capping, ad relevance scoring, and viewability metrics becoming standard. This shift will help reduce ad fatigue and improve the overall effectiveness of programmatic campaigns.

Conclusion

In 2025, the world of algorithmic advertising will undergo major changes. These changes will be caused by new technologies, changing privacy laws, and changing customer habits. Advertisers can get the most out of automated advertising and reach their target groups more precisely and effectively if they keep up with these trends and change their strategies accordingly.

Continue reading iTMunch for the latest news and articles related to programmatic advertising. Learn more about our programmatic advertising.

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