Programmatic advertising has become an increasingly popular way for businesses to reach and engage with their target audiences. As we approach 2023, there are several emerging trends in programmatic advertising that businesses should be aware of to stay ahead of the curve. Let’s explore these trends in more detail.
1. Increased Use of AI and Machine Learning
The latest trend in programmatic advertising is the increased use of artificial intelligence (AI) and machine learning. With the ability to process vast amounts of data, these technologies are transforming the way advertisers target their audiences. AI algorithms can analyze consumer behavior and preferences, allowing marketers to create highly targeted campaigns that deliver better results.
One of the key benefits of using AI in programmatic advertising is its ability to optimize campaigns in real time. By continually analyzing data and making adjustments on-the-fly, AI algorithms can ensure that ads are being delivered to the right people at the right time. This not only improves conversion rates but also reduces wasted ad spend by targeting only those who are most likely to convert.
Another advantage of using machine learning in programmatic advertising is its ability to identify patterns in user behavior.
2. Expansion of Connected TV (CTV) Advertising
Connected TV (CTV) advertising has been on the rise lately and it’s not hard to see why. With more consumers moving away from traditional cable and satellite TV towards streaming services like Netflix, Amazon Prime, and Hulu, advertisers have adapted their strategies to reach these viewers where they are spending most of their time. In fact, according to a recent study by eMarketer, CTV advertising is expected to grow by 54% in 2021.
This latest trend in programmatic advertising offers a host of benefits for both advertisers and consumers alike. For one thing, CTV ads are highly targeted and measurable which means advertisers can deliver personalized messages directly to their intended audiences. Additionally, CTV ads are non-skippable which ensures that viewers will see the ad all the way through without being able to fast-forward or skip over it.
3. Increased Focus on Privacy and Data Protection
As technology evolves, data privacy and protection remain a top concern for consumers. With the rise of programmatic advertising platforms, this issue has become even more critical. Programmatic advertising uses algorithms to automate ad-buying decisions, making it easier for brands to reach their target audience. However, as more and more personal data is collected through these platforms, there is a growing need for increased focus on privacy and data protection.
The latest trend in programmatic advertising is to prioritize consumer privacy while still providing effective targeting capabilities. Brands are now implementing strategies that allow them to use consumer data without compromising their privacy or security. This includes developing new tools and technologies that ensure sensitive information remains secure throughout the entire ad-buying process. Additionally, many companies are working on creating transparency in how they collect and use consumer data so that people can understand what information is being accessed and why it’s necessary.
4. Emphasis on First-Party Data
In the world of programmatic advertising, there is a new and exciting trend emerging – the emphasis on first-party data. This type of data is collected directly from a business’s customers, making it highly valuable as it provides insights into consumer behavior and preferences. While third-party data has been the norm for many years, businesses are starting to realize the benefits that come with utilizing their customer data.
One key advantage of first-party data is its accuracy. As businesses collect this information directly from their customers, they can be sure that it is reliable and up-to-date. This allows them to create more personalized marketing campaigns that are tailored specifically to each customer’s interests and needs. Additionally, using first-party data helps businesses build stronger relationships with their customers by demonstrating an understanding of their unique preferences and behaviors.
Another benefit of utilizing first-party data in programmatic advertising is cost-effectiveness.
5. Increased Adoption of Programmatic Audio Advertising
In recent years, the popularity of podcasts has skyrocketed, with millions of people tuning in to their favorite shows daily. As a result, advertisers are starting to take notice and are allocating more of their advertising budgets toward programmatic audio advertising. This latest trend in programmatic advertising allows advertisers to reach audiences through targeted audio ads placed within podcast episodes or music streaming services.
One of the reasons why programmatic audio advertising is becoming more popular is its ability to target specific audiences based on demographics, location, and listening habits. Advertisers can now use audience data to deliver personalized messages that resonate with listeners resulting in higher engagement rates. In addition, programmatic audio ads can be dynamically inserted into podcasts allowing for real-time optimization and better performance compared to traditional radio ads.
As more people shift away from traditional radio to podcasts and streaming services, it’s no surprise that advertisers are following suit.
Conclusion
Programmatic advertising is evolving rapidly, and businesses need to stay up-to-date with the latest trends to remain competitive. Increased use of AI and machine learning, expansion of connected TV advertising, increased focus on privacy and data protection, emphasis on first-party data, and increased adoption of programmatic audio advertising are all emerging trends that businesses should consider incorporating into their programmatic advertising strategies in 2023. By doing so, they can engage their audiences in new and exciting ways and drive better results from their advertising campaigns.
