The Programmatic Evolution: Context, Personalisation and… Creativity
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Forget third-party cookies crumbling—programmatic advertising is here to stay and evolving faster than ever! This powerful tool has been a game-changer for digital marketing in the past two decades, and while it's facing some new challenges, it's not going anywhere.
So, what's on the horizon for programmatic advertising? In this article, we explore five trends that will dominate the game in the coming year.
Contextual Targeting
With third-party cookies becoming less dependable and privacy concerns on the rise, contextual targeting is staging a resurgence. Advertisers are now pivoting towards placing ads based on the web page's content rather than overly relying on user data. This approach ensures that advertisements are relevant to the content being consumed, enhancing user experience and boosting engagement. By analysing the themes and context of the webpage, advertisers can serve ads that truly resonate with the audience.
In today's advertising realm, there's an increasing focus on ensuring ads are displayed in brand-safe environments, and ad placements align with corporate values, including sustainability and social responsibility. Brands meticulously scrutinise their ad placements to avoid association with harmful or inappropriate content. This strategy safeguards brand reputation and meets consumer expectations for ethical and responsible business practices.
Growth of Connected TV (CTV)
Streaming services like Netflix, Disney+, and Hulu have exploded in popularity, especially since adding ad-supported options. This has created a huge opportunity for advertisers on Connected TVs (CTVs). Ad spending on CTV is skyrocketing, becoming a must-have channel for reaching audiences.
While mobile is still the biggest player in digital advertising, CTV is catching up fast. It offers a chance to show personalised ads on the big screen, popular with Millennials and Gen Z. Interestingly, data shows that more people subscribe to ad-supported streaming than ad-free options.
New ad formats like shoppable carousels and interactive video ads are gaining traction on CTV. If the content is personalised and optimised, it can create more engaging experiences for viewers. After all, no consumer loves the idea of their screen time being interrupted by an ad. Programmatic advertising can help marketers create fewer but more engaging ads that will "speak" to specific audiences through the right devices.
Advancement of Digital Out-of-Home (DOOH)
Ad spending in the Digital Out-of-Home Advertising market worldwide is forecasted to reach US$17.28bn in 2024, with digital ad screens becoming more common. Programmatic DOOH offers flexibility, the ability to get people in the real world, and several other benefits, including broad reach, resistance to ad blockers, and unobtrusive placements. This segment is well-positioned for a cookie-free future with contextual marketing opportunities. It is another emerging trend where ad spend is still far off from the levels of CTV, but the growth is noteworthy. Brands that are looking to test new channels should consider programmatic DOOH.
Mobile Gaming
Mobile gaming is a prime market for advertisers, offering the chance to integrate ads directly into games. A key advantage is that mobile games engage an attentive audience. Unlike social media or video, which can be consumed passively, games require active participation. This engagement boosts responsiveness to in-game ads, which can include interactive elements to turn gamer attention into action.
The mobile gaming audience is expected to grow from 1.8 billion in 2021 to over 2.7 billion by 2027, driven by the advent of 5G networks, and mobile gaming revenue is projected to rise to $222.7 billion by 2027. Gaming - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029
The Importance and Value of Creativity in Advertising
Despite the technological advancements and strategic shifts in programmatic advertising, creativity remains a cornerstone of effective advertising. Creative elements are what make ads memorable, engaging, and, ultimately, effective.
In a crowded digital landscape, it's the innovative and imaginative ad content that stands out, capturing the audience's attention and leaving a lasting impression. Creativity is the fuel that powers storytelling, connecting brands with their audiences on an emotional level and driving consumer action and loyalty.
To find out more from the Scoota team, get in touch!
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