Exploring the Latest Trends Shaping the Future of Programmatic Advertising

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The programmatic advertising industry has seen a surge in growth over the past few years, with the trend showing no signs of slowing down. In 2023, programmatic advertising is projected to reach $113 billion in ad spend, accounting for 85% of all digital display ads. In this article, we will discuss the latest online programmatic industry trends that are shaping the future of digital advertising.

1. Increased Demand for Data-Driven Insights
As advertisers look to make informed decisions and reach the right audience, they are increasingly turning to data-driven insights. The use of data-driven insights helps advertisers understand consumer behavior and optimize their campaigns for maximum impact. In the programmatic space, this trend has resulted in the rise of data management platforms (DMPs) and the use of advanced analytics tools.

2. Growth of Private Marketplaces (PMPs)
Private marketplaces (PMPs) have been gaining traction in recent years as a way for advertisers to access premium inventory in a more controlled and transparent environment. PMPs provide advertisers with the ability to negotiate directly with publishers, allowing for better pricing and more targeted campaigns. This trend is expected to continue as advertisers seek to reach specific audience segments and improve the efficiency of their campaigns.

3. Rise of Connected TV (CTV)
Connected TV (CTV) has emerged as a major player in the programmatic industry, with the number of CTV ad impressions expected to reach 2 trillion by the end of 2022. The growth of CTV is driven by the increasing popularity of streaming services, as well as the growing number of households with smart TVs. Advertisers are taking advantage of this trend by incorporating CTV into their programmatic campaigns, providing them with a way to reach a large and engaged audience.

4. Emergence of In-App Advertising
With the growing number of consumers spending time on mobile devices, in-app advertising has become a crucial part of the programmatic industry. In-app advertising allows advertisers to reach users while they are actively engaged with their mobile devices, providing a more effective way to reach the target audience. This trend is expected to continue, with in-app advertising spending expected to reach $200 billion by 2022.

5. Focus on Privacy and Data Security
As the use of data and technology continues to grow in the programmatic industry, privacy and data security have become a major concern. Advertisers and consumers alike are demanding increased transparency and accountability when it comes to the collection, use, and storage of data. In response, the industry has seen the development of privacy-focused technologies, such as browser-based privacy controls and GDPR-compliant data management solutions.

In conclusion, the online programmatic industry is experiencing rapid growth, driven by the increasing demand for data-driven insights, the growth of private marketplaces, the rise of CTV and in-app advertising, and the focus on privacy and data security. As the industry continues to evolve, advertisers and publishers will need to stay informed and adapt to these trends to remain competitive and successful.

The 5 golden KPI to evaluate your programmatic campaigns

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Programmatic ad campaigns allow marketers to pay for the best option to reach large audiences online. By understanding key performance indicators (KPIs), they are able to determine important metrics that provide pertinent data on their campaign.

Media bought through programmatic channels are not as easy to track as set purchases made for mass media. With mass media, it is clear how many times an ad is run because it is based on the initial purchase of ad space. However, programmatic advertising inherently functions differently and so it is crucial to know the KPIs that exist because they serve as benchmarks and data points to maximize your success.

Listed below are 5 golden KPIs to evaluate your programmatic campaigns:

  1. Clicks. In the world of programmatic advertising, clicks are the one of the most obvious yet crucial performance indicators. They are an uncomplicated performance metric as it is simply measuring the number of clicks your ad receives. While not all clicks may be deliberate, they still remain an indicator of of the digital landscape.
  2. Reach. To measure the direct effects of an ad campaign, using reach as a metric can be incredibly helpful. Rather than rely on measuring views, reach is determined per person. Therefore, by combining it with other metrics, it can create a broad understanding of the effects of your programmatic advertising.
  3. ROAS. Return on ad spend, or ROAS for short, determines gross revenue for the amount of money that is spent on advertising. It works similarly to the concept of Return On Investment (ROI) by illustrating a bigger picture from which to extrapolate information and help to understand the efficiency of your market spending.
  4. Impressions. As a standard, impressions are a critical metric because they can help you understand how many times a third-party site has displayed an ad. This is a baseline key performance metric that allows better control and maintenance of your ad’s success. It’s important to mention, however, that this does not correlate to the number of times your ad has been seen but simply the amount of times it has shown up in a digital space. 
  5. Conversions. Conversions act as a way to measure the number of times an action has been completed in reaction to an ad display. For example, buying, signing up, and sharing can all act as conversions. One of the most powerful aspects of the conversion metric is that it means that the customer is more likely to interact with that company again as they’ve already shown direct interest.