Projected for 2025, programmatic ad spending in the U.S. is anticipated to soar to $271 billion, marking a significant $100 billion surge from the figures observed in 2021.
These significant figures highlight the strong and growing investments in programmatic advertising in the U.S. market.
As we step into 2024, the ad tech community grapples with both opportunities and challenges in the realm of programmatic advertising.
The industry is poised to unravel the trends that will define the future of advertising technology in the coming year.
Without further ado, let’s delve into the top adtech trends of 2024.
Top 4 Adtech Trends in 2024
The following is a list of our most important predictions for adtech industry trends in 2023.
Proliferating First-Party Data in the AdTech Landscape
The privacy sandbox will require numerous adjustments to function as a reliable ad identifier and win regulatory approval. Google will probably feel pressured into providing fewer thorough cohorts for targeting, which won’t make up for the deprecation of third-party cookies. AdTech must come to terms with and put into action a high-level solution built on a tenable universal ID, first-party infrastructure, and clear consent procedures for data sharing.
Hyper-personalization
The adtech sector’s game-changer is hyper-personalization. Hyper-personalization entails sending a customized contextual message to the correct user at the right time on the right channel. This adtech trend in 2024 is going to continue, and technologies like data analytics, AI, and ML are assisting advertisers with customized experiences through segmenting and smart audience management.
Contextual advertising powered by AI and ML to promote apps and products has, in our opinion, just begun to gain traction and will continue to expand dramatically throughout this year and beyond.
CTV: One of the most important adtech trends in 2023
According to Pixalate, 92% of U.S. households are reachable via CTV open programmatic advertising, up 11% year-over-year. Especially during the COVID-19 pandemic, cord-cutting has become a way to go for many wishing to reduce spending on traditional (linear) TV and explore limitless streaming options. No wonder the growing CTV market has also attracted unprecedented advertisers’ attention.
Although ad-free business models have traditionally been associated with streaming services, this is no longer the case. This market is about to expand because nearly half of current ad spending is split across YouTube, Hulu, and Roku. In 2023, Netflix introduced its ad-supported tier, featuring a majority of the content already viewed by subscribers. The platform collaborated with studios to enhance the content offering. Adding to the adtech trends, Disney+ also launched its ad-supported tier in December, contributing to the evolving landscape.
All of the aforementioned signs show that the streaming industry is paving the way for itself to create Walled Gardens.
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AI Converging-Future of Adtech
Digital marketing adopted artificial intelligence (AI) as a solution to the mounting difficulties faced by publishers and advertisers when attempting to predict future consumption habits.
Although businesses have historically relied on a variety of technology, advertising, and solutions to analyze data and monitor performance measurements, they have nevertheless had difficulty keeping up with the fast-paced changes in the market.
As a result, businesses are expected to keep using AI solutions to produce better results as a result of big data analytics. This enables businesses to predict events more accurately and make more strategic choices.
There is a growing interest in utilizing AI for both publishers and marketers due to the significance of advertising data.
Publishers are looking for the best adtech investment trends that can monetize their ad space at the most competitive price and with the most relevant content, while advertisers are looking for the best solution that fits their audience.
Programmatic Advertising to Propel AdTech Trends in 2024
One of the most effective ways to distribute advertising budgets is through programmatic advertising. Ad spending in programmatic advertising is automatically distributed to ad inventory that has the best chance of producing the desired result, such as a click or a conversion.
Brands and marketers nowadays are under continual pressure; they have to deal with competitive situations and budget constraints, and every dollar matters.
Takeaway
In 2024, adtech trends will evolve dynamically, incorporating white-label software, advancing programmatic campaigns, and integrating technology to tackle industry challenges.
To address privacy concerns, ethical AI, unified identity solutions, and sustainability measures will take center stage.
A rethinking of strategies will prioritize immersive experiences due to attention spans, while the gaming sector and audio advertising will provide new avenues for engagement.
Success in 2024 and beyond relies on industry collaboration, agility, regulatory awareness, innovation adoption, and the commitment to creating a transparent, efficient, and consumer-centric landscape.