What's Happening?
Programmatic advertising is experiencing stagnation in spending on the open internet, with growth primarily occurring within major walled garden platforms. The Future of Programmatic 2025 report by WARC highlights advertisers' shift towards cookie-free strategies, such as first-party data and contextual advertising, to cope with signal loss. Nearly half of marketers are expected to rely on these tactics by 2025. Advertisers are seeking more transparency and control over programmatic buying, emphasizing quality and brand-safe inventory. Programmatic curation is gaining traction, with curated deals representing a significant portion of bid requests. However, these deals can lead to higher costs and limited visibility for advertisers and publishers.
Why It's Important?
The shift towards walled garden platforms and cookie-free strategies in programmatic advertising has significant implications for advertisers and publishers. Advertisers may benefit from increased transparency and control, potentially leading to better campaign outcomes. However, the higher costs associated with curated deals could impact advertising budgets. Publishers may face challenges in understanding how their inventory is packaged and sold. The evolution of brand safety tools, powered by AI, offers hope for improved trust and accountability in the programmatic ecosystem. The growth of programmatic digital out-of-home advertising presents new opportunities for brands to deliver targeted and timely ads, although inventory limitations remain a concern.
What's Next?
Advertisers and publishers are likely to continue exploring cookie-free strategies and curated deals to enhance programmatic advertising outcomes. The adoption of dynamic creative optimization in programmatic digital out-of-home advertising is expected to rise, allowing brands to adjust creative based on real-time data triggers. The evolution of AI-powered brand safety tools may lead to more proactive strategies, increasing trust and transparency in the programmatic ecosystem. Stakeholders will need to address the challenges of higher costs and limited visibility associated with curated deals to maximize the benefits of programmatic advertising.