What is the future of programmatic advertising?

By Mario X. Carrasco | February 17, 2023

Reading time: 3 minutes

Abstract

Programmatic advertising is a leading method of buying and selling digital advertising space. In this article, discover ways increased automation, the use of artificial intelligence (AI) and machine learning and the emergence of new programmatic channels may impact the future of programmatic advertising.

Research Topics:: Advertising Research | Consumer Research | Data Quality | Data Security | Diversity Equity & Inclusion (DEI)
Industry/Market Focus:: Advertising Agencies | Consumers
Content Type: Research Industry Voices

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Data and programmatic advertising: What's next?

Editor’s note: Mario X. Carrasco is co-founder and principal of ThinkNow, a market research agency based in Burbank, Calif.

Programmatic advertising has established itself as a leading method of buying and selling digital advertising space in recent years and continues to grow in popularity. In 2022, over 90% of all digital display ad dollars transacted programmatically. Automation and data-driven decision-making have revolutionized how advertising is bought and sold, and they will play a critical role in the future of programmatic advertising. In this blog post, we will examine the future of programmatic advertising, the importance of data and the role that zero-party data and multicultural consumer insights will play.

What is programmatic advertising?

Powered by algorithms and data, programmatic advertising automates buying and selling digital advertising space. As a result, buyers and sellers benefit from a more efficient and cost-effective process. Several key trends are influencing the future of programmatic advertising, including increased automation, the use of artificial intelligence and machine learning and the emergence of new programmatic channels.

Zero-party data

Data is the backbone of programmatic advertising. It informs ad targeting, optimization and measurement resulting in better client results. Data also enables digital media buyers to demonstrate their campaign's return on ad spend, build trust with clients and ensure the transparency and accountability of programmatic advertising.

With the phase-out of third-party identifiers, new forms of data have emerged. Zero-party data is a relatively new concept in the world of data privacy, and it is rapidly gaining traction. Consumers voluntarily provide zero-party data without any need for cookies or tracking. Data of this type is more accurate and relevant and delivers more personalized consumer experiences. By leveraging zero-party data, digital media buyers can maximize client results while maintaining data privacy.

Programmatic advertising, diversity and multiculturalism

Another important factor driving the need for data in programmatic advertising is consumers' increasing diversity and multiculturalism. Advertisers aiming to reach and engage diverse and multicultural audiences must first understand them. Leveraging data, advertisers can identify consumer behaviors, preferences and purchasing patterns to personalize advertising campaigns and develop culturally relevant messaging.

Data is essential in enabling advertisers to personalize ads and deliver culturally relevant messaging to diverse audiences. By leveraging data, advertisers can identify consumer behavior patterns, preferences and purchasing patterns, which are essential to developing successful advertising campaigns. Understanding these insights enables advertisers to deliver more personalized advertising experiences that connect with consumers, making them more likely to engage with ads and act.

Programmatic advertising can serve timely, relevant ads to an increasingly diverse and multicultural consumer market, which is critical for reaching audiences effectively. Advertisers can leverage data to ensure that they are connecting with diverse audiences in meaningful ways that are culturally relevant and resonate with consumers. In this way, programmatic advertising is evolving to meet the needs of diverse and multicultural audiences, delivering better outcomes for both advertisers and consumers.

The role of data

The future of programmatic advertising is exciting and rapidly evolving, and data will play an integral role in ensuring its success. Whether through zero-party data, multicultural consumer behavior or ad targeting and optimization, data underpins the growth of programmatic advertising and its ability to serve timely, relevant ads to an increasingly diverse and multicultural U.S. consumer market. Digital media buyers who stay informed and invest in their understanding of data and programmatic advertising will be well-positioned to deliver better client results and stay ahead of the curve.