As we peer into the digital horizon of 2024, the scenery of programmatic advertising continues to evolve, presenting fresh challenges and opportunities for Supply-Side Platforms (SSPs). In this blog post, we’ll explore the anticipated trends shaping programmatic advertising in 2024, focusing on Mobile, Connected TV (CTV) and Web, specifically for SSPs.
Mobile Mastery in 2024
The mobile revolution is set to reach new heights in 2024. SSPs are poised to leverage the increasing ubiquity of smartphones, facilitating more immersive and personalized in-app experiences. With advancements in augmented reality (AR) and interactive ad formats, SSPs can enable publishers to deliver cutting-edge mobile campaigns that captivate audiences.
Apps: The Hub of Interaction
As apps continue to be central to digital interactions, SSPs will further refine programmatic strategies within this space in 2024. In-app advertising will become more tailored and engaging, supported by advancements in data analytics and machine learning. SSPs will empower publishers to navigate the intricate landscape of in-app programmatic advertising with precision.
More Live-Action Video Ads
The rollout of 5G and faster internet has made video ads more viable from a technological standpoint. The overwhelming opinion among marketers is that video produces better engagement metrics, such as click-through when compared to static ads. In 2023, video advertising spending continued its strong growth.
More In-Game Ads
The gaming industry has grown to epic proportions, driving revenues multiple times those of movies and music combined. In 2024, this category will keep growing in the mobile format, and the industry hopes for immense opportunities in in-game advertising on consoles and PCs.
In-game ads have the potential to reach a vast demographic spread across all ages, genders, and household income brackets. After a few false dawns, enough legal and investment decisions have been made that in-game programmatic is finally, just about here. The first significant decisions were made in 2022 by the Interactive Advertising Bureau and Media Rating Council. They introduced new in-game ad standards, clearing the way for growth in programmatic in-game advertising.
Free-to-play and freemium games will lead the charge on this. The introduction of adverts into AAA console games is a way off yet, as enticing as it may sound.
Increased In-App Advertisements for 2024
Programmatically delivered in-app advertisements took strides forward in 2023, therefore, growth is expected for the next year. In-app advertising has been highly successful, supporting nearly 95% of free-to-play mobile games.
The sector is intriguing because certain apps, especially games and gamified applications, can be designed to entice users to actively choose to watch an advertisement. Take the popular language-learning app Duolingo, for example. If you run out of lives for the day, you can opt to watch an advertisement to regain one and continue learning.
It’s a clever system. The user understands it substitutes a direct purchase, and so, they are less bothered by an unskippable 30-second advertisement. They know the deal. And the advertiser gets to present a long advertisement within a positive context.
Given that, it’s unsurprising that research by Activision-Blizzard, the mobile and console gaming behemoth, found that nearly 80% of players prefer this reward-based ad delivery system. Just over 80% of mobile games feature rewarded video ads. For the next year, expect further increases in the visibility of this format and system.
CTV: The Big Screen Renaissance
Connected TVs are projected to redefine the programmatic advertising landscape in 2024. As streaming services continue to dominate, SSPs play a pivotal role in empowering publishers to monetize CTV inventory efficiently. Programmatic advertising on the big screen will undergo innovations, providing a more targeted, measurable, and TV-like experience.
CTV advertising is expected to grow by 10.4% from 2024 to 2028 (Source: Statista). This means that more and more people are choosing to watch TV through streaming services and connected TVs, so programmatic advertising in connected television is becoming a big trend in 2024.
This growth isn’t surprising because many people are moving away from traditional TV. If brands and advertisers use CTV programmatic advertising in their strategies, they can effectively reach the people they want to. In the future, we might see changes like companies merging, more competition in the bidding process for ads, more people using connected TVs, and improvements in the technology used for advertising. This could lead to a wider variety of ads, which is essential because nobody likes seeing the same ads repeatedly. It annoys viewers, doesn’t do justice to the creativity of the ads, and can even discourage people from buying things.
So, in the next year, watch for signs that the CTV industry is improving how it works.
Web Reinvention for SSPs
The web remains a dynamic space for programmatic advertising, and in 2024, SSPs will witness a reinvention of strategies. Real-time bidding will become more sophisticated, and SSPs will drive advancements in cross-channel integration. Web advertising will be more personalized, efficient, and seamlessly integrated into the user experience.
Adicional: The trend of improving data protection is of utmost importance for the programmatic advertising industry for several key reasons.
Privacy compliance
Enhanced data protection practices are essential to ensure compliance with data privacy regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Non-compliance can result in hefty fines and legal consequences, making it crucial for programmatic advertisers to adhere to these rules.
Data security
Strong data protection measures also contribute to better data security. In an era of increasing cyber threats and data breaches, safeguarding user data is paramount. A violation can not only harm individuals but also tarnish the reputation of the advertising ecosystem as a whole.
User consent
Many data privacy regulations require explicit user consent for data collection and processing. Adhering to these regulations ensures that programmatic advertisers have the necessary permissions to use consumer data for targeting and tracking, reducing legal risks.
Reducing ad fraud
Improved data protection measures can help reduce ad fraud, as they often involve increased transparency and verification processes in the programmatic ecosystem.
Global compliance
In a global advertising landscape, adhering to robust data protection practices ensures that programmatic advertisers can operate across borders without facing different countries’ data privacy regulations.
Rise of Contextual Targeting
Contextual targeting is the practice of delivering adverts that promote products or services relevant to a page’s content. On a car website, you would be served adverts for cars, parts, car-related experiences, etc. It’s a simple technique that long predates the internet, but it’s one programmatic advertisers may fall back on in the absence of third-party cookies. If a car fanboy can’t be followed around, advertisers can put their ads where they’re bound to find them.
New technologies have the potential to enhance contextual advertising. Sentiment analysis and related technologies can provide advertisers with a much greater understanding of a page and the reader profiles it attracts. This can allow adverts to be contextually targeted with much greater precision. Advertisers hope that better targeting will provide an uplift to stubbornly low click-through rates and recognition. Further, these filters can prevent a brand from being inadvertently associated with undesirable content.
Anticipated Trends Shaping SSP Strategies
- AI-Driven Optimization: Utilizing artificial intelligence for real-time campaign optimization.
- Blockchain for Transparency: Embracing blockchain for increased transparency and trust.
- Hyper-Personalization: Crafting highly personalized ad experiences for individual users.
- Cross-Format Integration: Seamlessly integrating programmatic campaigns across mobile, CTVs, web, and apps.
Conclusion
As we stand on the cusp of 2024, SSPs are at the forefront of an exciting era in programmatic advertising. The anticipated trends in mobile, Web, Apps, Artificial intelligence, CTV growth, digital identity, improvement of data protection, and VR advertising growth drive this transformation, promising a landscape of innovation and opportunities. To succeed, advertisers need to adapt to these changes, adopt new technologies and authentic strategies, and remain agile in a highly competitive digital environment. By staying agile and embracing these trends, SSPs can empower publishers and advertisers to navigate the evolving digital advertising ecosystem successfully. Here’s to a year of transformative growth and unparalleled programmatic excellence!
