2025 Programmatic Advertising Trends You Need to Know
Programmatic advertising remains the cornerstone of digital marketing, rapidly evolving to meet the demands of an ever-shifting landscape. While overall ad spend may be cooling, programmatic advertising is surging, reaching $595 billion globally in 2024 and projected to soar to $779 billion by 2028. In the U.S., it commands over 90% of digital display ad dollars—a dominance expected to continue with double-digit growth through 2026.
Opportunities in AI, contextual targeting, and premium inventory are opening new doors for smarter, more efficient advertising. But signal loss and the rise of low-quality, AI-generated content are throwing some curveballs. Staying ahead means embracing innovation without losing sight of practicality.
Here’s what’s shaping programmatic in 2025:
1. Signal Loss Isn’t Going Away
Google’s decision to pause its cookie phaseout gives advertisers a breather, but don’t relax too much. Third-party data is still on the decline, and adapting to a cookieless world is non-negotiable.
Strong first-party data strategies are a must. Clean, accurate data enables personalization, lookalike modeling, retargeting, and effective use of data clean rooms. Combine that with privacy-friendly tactics like contextual targeting, geotargeting, and email-list matching. Procrastinating on this will cost you.
2. Contextual Targeting Steals the Spotlight
Context is king again. As cookies fade, contextual advertising rises. Research reveals that 72% of consumers notice ads that align with their surroundings, and 60% remember contextually relevant ads.
AI is pushing contextual targeting to new heights, analyzing podcast transcripts, video scenes, and other content with unmatched precision. To thrive in 2025, deepen your understanding of your audience, refine parameters with first-party data, and leverage AI for hyper-accurate placements.
3. Premium Inventory Becomes a Priority
The open exchange is losing its appeal as advertisers shift to high-quality, premium inventory on reputable platforms. Ads placed alongside professionally produced content tend to perform better and command higher premiums.
Additionally, size matters—larger, full-screen ad formats consistently drive better engagement across both desktop and mobile. Pairing first-party publisher audience data with premium inventory elevates targeting precision, distinguishing it from aggregated, commoditized third-party data. Premium placements aren’t just about avoiding poor-quality environments; they’re about delivering superior results.
4. Programmatic Video: Powered by AI
Video continues to dominate programmatic spending, with U.S. investments expected to exceed $110 billion in 2025. AI is making video ads more efficient and engaging than ever.
Dynamic content creation now enables personalized ads at scale without manual effort. Imagine travel ads tailored for family vacations versus adults-only getaways or car commercials adjusting tone to match the content being watched. If you’re not leveraging AI to fine-tune your video campaigns, you’re leaving both engagement and revenue on the table.
5. Generative AI: From Experimentation to Essential
In 2024, generative AI was a buzzword; in 2025, it’s becoming a foundational tool. From creating ad variations to streamlining media buying and analyzing data, generative AI is revolutionizing the efficiency and creativity of advertising workflows.
Success, however, depends on strategic alignment. Choose tools that match your objectives and mitigate risks proactively. When used thoughtfully, generative AI can be the catalyst for transformative results.
The Road Ahead
In 2025, programmatic advertising hinges on finding the perfect balance between innovation and adaptability. Address signal loss with urgency, harness AI-driven contextual targeting, prioritize premium inventory, and lead with video strategies powered by AI. Done right, these approaches will deliver personalized, high-impact campaigns that capture attention and drive results.