Programmatic Advertising Forecast 2024: 5 trends that will shape the year
The year ahead is shaping up to be a dynamic one for programmatic advertising. From cookie depreciation, continued economic uncertainties, and a presidential election cycle, it is certainly going to a bit of a wild ride.
Despite in this chaotic circus of uncertainties, there’s one constant that has proven reliable year in and year out for the past decade: programmatic advertising.
Based on the forecast for the year, advertisers can expect a 15.9% YoY growth in programmatic digital display ad spending and an impressive 20.9% for programmatic digital video in 2024, outpacing the overall digital ad spending projection of 13.6%.
However, to navigate this growth effectively, advertisers must stay on top of five key programmatic advertising trends shaping the year ahead.
Trend 1: Adapting To Signal Loss
As third-party cookies phase out, programmatic advertisers must shift towards privacy-friendly alternatives. Strategies like relying on first-party data, contextual targeting, geotargeting, premium inventory bidding, anonymized data sources, and embracing alternative identifiers will be crucial in 2024.
Trend 2: Navigating Generative AI
Generative AI, making waves since 2022, presents both opportunities and challenges. Advertisers need to carefully navigate its usage, avoiding low-quality ad inventory by using dynamic MFA blocklists. While generative AI transforms the paid media landscape, advertisers should adapt and explore its potential in streamlining aspects of content creation and creative messaging for more personalized advertising experiences.
Trend 3: Capturing Attention
In an era of instant gratification, advertisers need to focus on quality over quantity. By prioritizing compelling creative, targeting the right audiences, and gauging the quality of ad impressions, teams can break through the noise and build successful campaigns that resonate in 2024.
Trend 4: Widespread Impact Of The 2024 Election Cycle
With a projected $12 billion in ad spend for the 2024 election, programmatic advertisers should plan for limited inventory and increased CPMs during critical campaign stretches. Advertisers can explore channels like programmatic digital out-of-home and audio, while maintaining brand safety amidst the spike in mis- and disinformation.
Trend 5: Digital Video Continues To Grow
Digital video's popularity among advertisers is set to grow, with CTV programmatic video ad spend projected to increase by nearly 18%. Advertisers can leverage different video channels and placements for an omnichannel experience, connecting with audiences on various platforms.
The new year presents a dynamic landscape for programmatic advertising, and staying ahead of these trends will be key to maximizing growth and crafting successful campaigns.