LAB51 logo

Programmatic Advertising: Success in 2023 and Beyond

Programmatic Advertising
By Anja Prosch
Anja Prosch

5 Min

June 26, 2023

In the dynamic world of digital advertising, programmatic advertising will remain at the forefront in 2023. It has solidified its position as a powerful and widely adopted approach for acquiring and selling ad inventory, leveraging automation and real-time bidding to streamline the process. The allure of programmatic advertising lies in its array of advantages, which encompass enhanced targeting capabilities, heightened efficiency, and superior campaign measurement and optimization.

The domain of programmatic advertising has witnessed remarkable progress in recent years, particularly in areas such as audience segmentation, data-driven targeting, and the ingenious integration of artificial intelligence and machine learning. These advancements have paved the way for advertisers to serve highly personalized and relevant ads to their intended audiences, leading to remarkable campaign performance and boosted ROI.

What's more, programmatic advertising has transcended the boundaries of traditional display ads, boldly venturing into diverse formats like video, audio, native ads, and connected TV. This diversification has empowered advertisers to engage consumers across multiple digital channels and devices, endowing them with a multitude of opportunities for impactful ad placements.

programmatic ad, phone on table

Programmatic advertising continues to demonstrate its adaptability and flexibility in sync with advancing technology. Let's take a closer look at some notable programmatic trends in 2023:

Increased Utilization of Artificial Intelligence

Artificial intelligence (AI) is playing an ever-expanding role in programmatic advertising. Machine learning algorithms analyze data to identify patterns and optimize campaigns, resulting in improved targeting and ad delivery. This advancement leads to more efficient campaigns and better outcomes.

Enhanced Focus on Transparency

The significance of transparency in programmatic advertising is growing rapidly. To address this concern, advertisers are now demanding heightened transparency from vendors and publishers regarding ad placement, data usage, and measurement. Various initiatives have been introduced, including the implementation of industry standards like ads.txt, seller.json, and more.

Heightened Importance of First-Party Data

First-party data, which refers to data collected directly from customers, like email addresses, purchase histories, and website behavior, is gaining increasing importance in programmatic advertising. With the introduction of data privacy regulations such as GDPR and CCPA, advertisers are relying more on first-party data to enhance targeting, reduce dependence on third-party data, and ensure compliance with privacy regulations.

Greater Integration with Traditional Advertising

Programmatic advertising is becoming more integrated with traditional advertising channels such as TV, print, and OOH. This integration enables a comprehensive and effective advertising strategy that spans across multiple channels.

Diversification into New Channels

Programmatic advertising is expanding beyond traditional display advertising to encompass social media, video, and audio channels. Advertisers can leverage programmatic advertising to target audiences across multiple channels and platforms, creating a cohesive and effective advertising strategy.

Personalization and Customization

Personalization and customization are emerging as crucial elements in programmatic advertising. Advertisers can utilize data to deliver personalized messages and tailored creative content to specific audiences, thereby enhancing engagement and conversion rates.

Increased Adoption of Connected TV

CTV is gaining significant traction as a channel for programmatic advertising. Advertisers can employ programmatic advertising techniques to target audiences on streaming platforms like Samsung and Amazon Fire Stick, utilizing data to improve targeting precision and ad delivery.

Focus on Brand Safety

Brand safety is a pressing concern in programmatic advertising. Advertisers are taking proactive measures to ensure that their ads are placed in brand-safe environments. This includes implementing whitelists, blacklists, and third-party verification tools to monitor ad placements.

Increased Emphasis on Creativity

With the advancement of programmatic advertising technology, there is a growing emphasis on creativity. Advertisers are utilizing programmatic tools to deliver more engaging, interactive and creative ad experiences, leading to improved engagement and conversion rates.

Heightened Collaboration

Collaboration is gaining increased importance in the realm of programmatic advertising. Advertisers, publishers, and vendors are working together to create better consumer experiences and enhance the overall effectiveness of programmatic advertising.

What the future prepares

The Global Programmatic Display Advertising Market is projected to experience a significant growth rate of 31.9% CAGR, ultimately reaching a market size of $2772.7 billion by the year 2028. The advent of innovative technologies, like 5G and edge computing, is poised to revolutionize programmatic advertising by enabling faster and more efficient ad delivery.

Also, the implementation of blockchain technology is anticipated to enhance transparency in programmatic advertising through a secure and decentralized platform for ad buying and selling.

As programmatic advertising continues to advance, we can expect a greater emphasis on data-driven insights and audience segmentation. Advertisers will increasingly rely on data to craft highly personalized and targeted ads that resonate with specific audiences. This shift will necessitate increased investment in data analytics and the utilization of advanced machine learning algorithms to extract valuable insights from the data.

Cross-device targeting is another significant trend on the horizon. As consumers transition across different devices and platforms, advertisers will need to develop strategies to deliver targeted ads effectively across multiple touchpoints.

The future of programmatic advertising remains promising, as emerging technologies and trends are poised to transform how advertisers engage with their target audiences. Advertisers who proactively embrace these developments will be well-positioned to thrive in the ever-evolving digital landscape.