Programmatic Advertising Trends 2021
When I look back at 2020, the words “unexpected” and “unpredictable” come to my mind. This year, the world has become more digital than ever before, which brings challenges and opportunities. In the programmatic environment, our industry is developing rapidly. What are the upcoming trends, where will brands spend their money, how will consumer behavior change next, and what is the best way to deal with the changing landscape?
Let’s look at the hot topics for 2021!
1) Location-Based Advertising
Currently, digital advertising uses IP addresses to show location-specific advertising, such as restaurant recommendations, which are particularly relevant to mobile users. Consumers can receive push notifications when they are close to the store. Location service companies enable targeting on a micro-scale. This is done by displaying relevant ads to customers at the most convenient time. It can collect data about the offline activity of searchers and track customers who visited the store after seeing the ad in the search engine.
2) Artificial Intelligence
The use of artificial intelligence in programmatic advertising will continue to grow. This is because it provides marketers with a lot of data, enabling them to target the right people at the right time, right channel, and device and with the right message. Artificial intelligence (AI) and machine learning help by moving through large amounts of information to find patterns in real-time. These technologies propose another better performance and predict the outcome for a specific customer.
Artificial Intelligence will enable marketers to analyze customer behavior in real-time, with multiple data points such as age, gender, location, history, preferences, device, platform and more. User data mapping Thanks to the ad serving metrics, it will be able to suggest in what format to place the ad, where and when.
Artificial intelligence helps increase the overall effectiveness of your ads by accurately recognizing your buyer’s patterns. Then it places an ad accordingly. This in turn reduces the cost of customer acquisition.
3) Voice-Activated Ads
The use of voice-based home devices has been increasing over the years. In the past year, Amazon sold more than 100 million Alexa-enabled devices. Compared to 2017, customers talked to Alexa more than one billion times. Programmatic advertising plays a vital role in enabling marketers to take advantage of these advertising spaces. This involves home smart devices, apps and in-store audio advertising opportunities.
4) Connected TVs and OTT platforms
Connected TV and OTT are now in a mature stage. In fact, according to AdWeek’s forecast, total US OTT revenue almost doubled from 35 billion US dollars in 2020 to 68 billion US dollars in 2025.
With the increasing availability of 5G and Internet-enabled devices such as smart TVs, connected devices and game consoles, OTT advertising may be very good for digital advertising In the future.
5) Wearable Technologies
An example of a wearable device is a smartwatch. In the past few years, their market penetration has doubled. A report issued by Strategy Analytics in 2019 pointed out that global smartwatch shipments have increased by as much as 44% year-on-year. This will translate into 12 million units in 6–8 months. Programmatic advertising has followed this trend and is developing in the direction of this new media. As the wearable ecosystem expands, the natural ability of programmatic advertising technology to track, analyze, and optimize campaigns will attract more important opportunities based on more accurate user and advertising consumption data.
6) Goodbye Cookies, Welcome First Parties
With the end of third-party cookies, the year that publishers need to develop a first-party data strategy will be 2021. Today, we see the emergence of intermediary technologies such as data clean rooms that allow publishers and advertisers to exchange data in a privacy-compliant manner. We have also seen the emergence of open-source identification solutions that can be used by publishers who use header bidding. Publishers can extract the identifier and store it on a first-party cookie.
7) Personalization
Millennials and Gen-Z generations are the two largest buyer groups, and they love everything customized. The personalization of advertising will be inevitable in the future. In response, programmatic customization is increasing. This allows marketers to provide highly personalized and relevant messages to target groups. Combined with AI predictive modeling, programmatic advertising technology can deliver more specific messages at the appropriate time and place.
The investment in programmatic advertising is increasing year by year. In 2021, the advertising industry will focus on more efficiency rather than numbers. This means that the main purpose is to put more relevant ads at the right time and increase the return on investment. Focusing on automation will improve the quality and relevance of ads. All the trends will bring new opportunities for publishers and advertisers.