Programmatic advertising poised for growth in 2024 amidst data privacy shakeup, new report finds

Programmatic advertising poised for growth in 2024 amidst data privacy shakeup, new report finds

The programmatic advertising industry is expected to see significant growth in 2024, with a majority of advertisers planning to increase their investment, according to a new report from Proximic by Comscore. However, the industry is also facing major challenges, including the impending deprecation of third-party cookies and evolving data privacy regulations.

The report, titled State of Programmatic 2024, surveyed hundreds of advertising decision-makers across brands, agencies, and publishers. It found that 62% of advertisers plan to increase their programmatic advertising investment in 2024, highlighting the growing importance of this automated buying and selling method.

While overall budgets are rising, the ways advertisers are allocating those funds are changing. Connected TV (CTV) is emerging as a major player, with advertisers planning to shift some budgets from linear TV to CTV. CTV is now considered the most effective channel for achieving brand marketing objectives, while traditional digital display and social media remain strong for performance marketing.

With the sunsetting of third-party cookies looming, advertisers are looking for alternative ways to target audiences. The report found that first-party data and contextual targeting are seen as the top strategies to combat signal loss. However, a significant portion of advertisers (30%) admit they are not yet prepared for a cookieless world.

Artificial intelligence (AI) is poised to play a major role in the future of programmatic advertising. Over three-quarters of advertisers believe AI will change how programmatic platforms operate, and many are seeking data and platform partners that utilize cutting-edge AI technology.

Key Takeaways for Advertisers

The report offers several key takeaways for advertisers navigating the evolving programmatic landscape:

  • Diversify your media mix: Utilize a mix of channels like CTV, digital display, and social media to achieve both brand and performance goals.
  • Prepare for a cookieless future: Focus on collecting and leveraging first-party data and explore alternative targeting solutions like contextual targeting.
  • Embrace AI: Partner with providers who are innovating with AI to gain efficiencies and improve targeting accuracy.

Overall, the programmatic advertising industry is in a state of flux, driven by both growth opportunities and data privacy challenges. By adapting their strategies and embracing new technologies, advertisers can successfully navigate these changes and continue to reach their target audiences effectively.

Programmatic Advertising Forecast: Data-Driven Insights in Bullet Points

Growth Surge:

  • 62% of advertisers plan to increase programmatic ad spending in 2024.
  • This indicates a potential market surge, highlighting the industry's growing power.

Channel Shift:

  • CTV dethrones linear TV for brand marketing, becoming the #1 tactic.
  • Digital display and social media remain vital for performance marketing.
  • Expect a budget migration between traditional and emerging channels.

Data Privacy Shakeup:

  • 30% of advertisers feel unprepared for the cookieless future.
  • First-party data and contextual targeting emerge as top strategies to fill the gap.
  • AI-powered solutions are crucial for navigating data privacy changes.

AI Revolution:

  • 76% believe AI will drastically change programmatic platforms.
  • Predictive targeting and audience modeling will be heavily influenced by AI.
  • Testing and learning with AI solutions is key to maximizing its potential.

Actionable Points:

  • Diversify your media channel mix across brand and performance goals.
  • Invest in first-party data collection and utilization.
  • Explore contextual targeting and AI-powered solutions.
  • Embrace a test-and-learn approach with AI.

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