What is the Future of Programmatic Advertising?

With software and algorithms, programmatic advertising makes it possible to buy and sell digital ads automatically. Programmatic advertising doesn’t involve advertisers and publishers negotiating with each other by hand. Instead, it uses technologies to put ads right away in front of the right people in real time. During this process, data is collected and advanced tracking is used to show ads more efficiently and accurately based on what users like and how they act.

Safety is the main subject

Brand safety is now the most important thing for 60% of marketers and agencies. Recent news stories that showed millions of dollars were lost on bad ad placements made this worry even stronger. Advertisements often broke brand safety rules by showing up next to content that could be hurtful or racist.

It is important for businesses to make sure that their ads show up in a safe and reliable place. In order to keep customers trusting you and your brand honest, this is a must.

Even though Google decided to put off getting rid of third-party cookies, they will likely continue to play a smaller role in programmatic advertising. According to the WARC report, only 25% of advertisers think they are ready for this change, mainly when it comes to targeting, data access, and customer segmentation. 76% of respondents are already taking steps in this direction to stay competitive while putting privacy first. E-commerce companies need to speed up the adoption of first-party data strategies.

Fraud and budget waste

Advertising fraud is still a big problem. A quarter of the £67 billion that is spent on advertising on the open web is wasted on views that are fake or not very good. Tougher controls and more openness in the media supply chain can help advertisers spend their money more wisely and get a better return on their investment.

Even though “sustainability” is a popular word right now, most businesses that use programmatic advertising said that lowering carbon emissions is not a top priority for them. Even though this sector put out more than 215,000 metric tons of carbon dioxide in just one month across five big economies, this is still the case. Only 31% of businesses have started to track and cut down on pollution.

Customers are becoming more concerned about the environment, so e-commerce businesses should think about how their advertising choices affect it.

Moving funds to closed platforms

The study also talks about a worrying trend: less money is being put into the open web because more advertisers like closed platforms like Amazon, Google, and Meta. WARC thinks that by 2024, more than half of all advertising dollars will be spent on just five sites.

There are 76% of businesses that spend 40% or less of their advertising spending on the open web right now. Companies should carefully think about whether it’s worth putting more money into closed platforms like Google or Facebook or whether it would be better to look into advertising options on the open web, which everyone can view.

E-commerce has to deal with real problems, like lessening addressability, worries about brand safety, and scams. Business owners can improve their advertising plans and get better results next year by keeping an eye on changes and adapting to trends.