Programmatic advertising has experienced substantial growth in recent years. According to Statista, the global programmatic advertising market was worth $558 billion in 2023, marking an 11% increase in investment in programmatic digital advertising compared to the previous year. This growth reflects the evolving digital landscape and advertisers' increasing trust in programmatic platforms. It highlights the maturity of the sector and the significant role it will play in the future of digital advertising. Below are the key programmatic advertising trends that I predict will shape the current year.
2024 will mark the definitive end of third-party cookies
The end of third-party cookies represents a turning point in the world of programmatic advertising. For some time now, advertisers and technology platforms have been exploring new ways to target audiences and collect data, striving to balance user privacy with effective ad delivery. These developments have sparked innovation and new business models that are transforming the fundamental strategies of programmatic advertising. As a result, iPROM launched a basic version of its private data silo for all its subscribers early in the year. It allows users to manage their first-party digital advertising data through the iPROM Programmatic Platform, collected with explicit user consent.
The growing importance of first-party data
The rise of privacy regulations has prompted a significant shift towards strategies based on first-party data. Advertisers are moving away from third-party data and turning to proprietary first-party data to gain insights into audience interests and improve targeting. Not only does this shift address privacy concerns, it also offers a more direct and reliable way to understand and engage audiences. In response, iPROM continuously updates and develops the iPROM Programmatic Platform to keep pace. The platform allows our clients to use first-party data to target users and buy ad space in editorial online media properties. Additionally, it supports alternative forms of targeting, including semantic and contextual targeting by category.
The dominance of mobile advertising
The prevalence of mobile advertising in the digital advertising industry is undeniable. According to eMarketer, mobile advertising constituted 70.6% of programmatic digital ad spend in the US and 48% in Europe 2023. This trend highlights the change in consumer behaviour towards mobile experiences, prompting advertisers to consider mobile-centric strategies. iPROM continuously analyses the technological characteristics of digital media users. Our analyses over the last few years reaffirmed the important role desktop PCs play when it comes to in-depth research and purchase decision-making for more complex purchase journeys, despite the dominance of mobile devices.
Managing programmatic ad campaigns with in-house teams
The trend towards managing programmatic campaigns with internal resources reflects a broader shift in the advertising industry towards greater control and transparency. Companies want to bring programmatic ad space buying in-house to establish better control over the entire advertising process. This shift improves transparency and drives more efficient resource allocation. iPROM tackles this challenge with its programmatic platform. By using our own, independent programmatic infrastructure, we enable companies to reduce costs and leverage first-party data, a strategy already implemented by Fraport Slovenia with the Ljubljana Airport Fly platform.
Technological innovation in artificial intelligence
The year 2024 will see continued technological progress, with AI and machine learning leading the way. These technologies enhance targeting accuracy and campaign optimization. At iPROM, we utilize AI together with independent analytics solutions to analyse data and monitor performance, enabling more accurate predictions and informed strategic decisions. We use AI for predictive analytics in iPROM Predictive, a technology solution we offer to advertisers in partnership with Valicon. This strategy combines research and advertising approaches to programmatic advertising.
Data-driven advertising and personalisation
Data remains a key component in advertising technology and personalised advertising experiences are becoming essential to set brands apart. Using independent data platforms such as iPROM Private DMP, which allow first-party data to be managed, analysed and stored in private data silos, makes it much easier to balance the demands of privacy and efficiency while also ensuring a more efficient entry into the era of first-party advertising strategies.
What will 2024 bring for programmatic advertising?
While it is impossible to predict with certainty what this year will bring, existing trends offer insights into the direction in which the industry is evolving. The anticipated changes in the media and marketing landscape make it essential for publishers and advertisers to adjust their strategies to operate more efficiently with less data. This adjustment means focusing primarily on the use of proprietary data and adopting advertising strategies based on first-party data.
Additionally, I anticipate continued growth in the use of advanced mobile formats and wider adoption of artificial intelligence to capitalize on business opportunities. The key here is to develop the ability to adapt quickly to new trends and market dynamics. It is important to keep in mind that a stable programmatic system requires a solid foundations and proven technology, where technological innovations can be integrated seamlessly.