The Future of Programmatic Advertising: What Marketers Should Know

November 21, 2023

Programmatic advertising – the automated, data-driven approach to buying and placing advertisements – is shaping the conversation around and future of promotional strategies. Marketers need to stay informed about its trends, technologies, and potential to maintain an edge as they promote their businesses and clients. Let’s break down the elements of programmatic advertising and discuss ways in which to optimize campaigns.

Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are at the forefront of the future of programmatic advertising and are currently developing at impressive speed. These technologies enable precise targeting and personalization, allowing marketers to tailor their campaigns to individual preferences and behaviors. AI and ML can analyze vast amounts of data, predict consumer actions, and optimize advertising strategies in real time. 

Learning about and investing in AI-powered tools is quickly becoming necessary to stay relevant and ensure tailored advertisements reach the right audience at the right time.

Cross-Channel Integration

Programmatic advertising will continue to integrate seamlessly across various digital channels. Focus on strategies that synchronize advertising efforts across platforms like social media, display ads, video, and mobile apps. This approach provides a cohesive brand experience and maximizes audience reach. Cross-channel integration also allows for a unified view of consumer behavior, enabling marketers to refine campaigns for optimal results.

Improved Data Privacy and Compliance

Data privacy and compliance with regulations like the European Union’s GDPR (General Data Protection Regulation) and California’s CCPA (California Consumer Privacy Act) are critical aspects of programmatic advertising's future. It’s important to prioritize ethical data collection and usage, ensuring the processes adhere to legal frameworks. Implementing strict data privacy measures not only builds trust with consumers but also mitigates the risk of hefty fines and reputational damage.

First-Party Data and Contextual Targeting

The reliance on third-party cookies is dwindling, and marketers are shifting their focus to first-party data and contextual targeting. First-party data is collected directly from customers, providing valuable insights into their preferences and behaviors. Contextual targeting leverages the content and context of a webpage to serve relevant advertisements. This is where investing in building and leveraging first-party data is imperative, as it allows companies to create personalized, contextually relevant ad experiences for their customers.

Blockchain for Transparency and Security

Blockchain is a shared, unalterable database containing records of transactions and assets in a business network. It can track orders, payments, accounts, and more, giving members access to the details of a transaction from end to end. This technology offers transparency, security, and trust in programmatic advertising, ensuring advertisers and publishers can trace the flow of ad impressions and verify data authenticity. Adopting blockchain helps combat ad fraud and enhances trust in the advertising ecosystem.

Dynamic Creative Optimization (DCO)

Dynamic Creative Optimization (DCO) allows marketers to personalize ad creatives based on various data points such as location, device, and user behavior. This technology uses information to design campaigns in real time, ensuring that each user sees a tailored ad, increasing engagement and conversion rates. Embracing DCO enhances the relevance and effectiveness of advertisements.

Influencer Marketing in Programmatic Advertising

Influencer marketing is also becoming more integrated with programmatic advertising. By leveraging programmatic tools, marketers can identify and collaborate with influencers whose audience aligns with their target demographic. This merger enhances the efficiency and impact of influencer campaigns, amplifying reach and engagement.

Adapting to emerging technologies in order to provide an engaging experience to consumers is part of a marketer’s journey. The future of programmatic advertising is dynamic and promising, and staying informed about this tool and incorporating it into marketing strategies will be instrumental in navigating the ever-evolving advertising landscape successfully.

Katie Lawton is a Marketing Client Manager at WiredViews. She communicates with clients on a daily basis, develops marketing strategies, and manages projects for the WV team.

She loves to go running in the wee hours of the morning, walk her dog, Gizmo, watch horror movies (The Shining is her favorite), and check out the latest restaurants in Cuyahoga Falls.