Programmatic advertising has increased in importance ever since the COVID-19 pandemic struck. To maximize their digital marketing strategies, businesses must stay ahead of the curve in the world of programmatic advertising. As we dive into 2023, it’s crucial to explore the latest trends that are reshaping the programmatic advertising sphere.
From the surge in white-label software adoption to connected TV advertising, let’s take a look at the top five transformative factors driving the industry forward.
1. The Rise of White-Label Software
When it comes to programmatic advertising, control and cost-effectiveness are key considerations for businesses. In 2023, there’s a significant shift towards adopting white-label software as a service (SaaS). For many enterprises, white-label SaaS is emerging as the ideal solution for gaining programmatic control without the complexities of developing proprietary platforms.
The white-label software market for connected TV ads offers a compelling proposition. It allows businesses to enjoy all the benefits of platform ownership while eliminating the need for extensive in-house software development. This not only streamlines operations but also minimizes resource allocation.
As more companies recognize the advantages of white-label solutions, you can expect this trend to gain further momentum.
2. The Power of Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are rapidly transforming programmatic advertising. These technologies are now integrated more extensively to drive highly effective campaign outcomes.
The use of machine learning in advertising has been on the rise for several years, and this trend is set to continue. Ad tech companies and ad networks are continually launching new products that rely on machine learning to optimize campaigns and reduce the workload of making granular adjustments.
Machine learning algorithms analyze a customer’s browser history, installed apps, previous transactions, interactions with ads, and similarities to high-value consumers, providing predictive insights. These insights empower advertisers to enhance targeting and bidding, ultimately boosting ROI.
3. The Impact of 5G on Programmatic Advertising
In the current era, the introduction of 5G stands out as one of the most highly anticipated trends in connected TV advertising and more. This fifth generation of mobile networks is a game-changing development with far-reaching implications for the global market. Here’s why 5G is making such a significant impact:
- Speed Advantages: 5G is a technological leap, offering speeds approximately 20 times faster than its predecessor, LTE. With the potential to reach up to 20 GB per second, it revolutionizes the landscape for real-time bids and data transmission.
- Enhanced Video Quality: The remarkable speed of 5G translates into higher-quality videos that are more attention-grabbing, ultimately boosting the effectiveness of each advertisement.
- Reduced Ad Blocker Usage: As page loading speeds up, the prevalence of ad blockers diminishes. This means that ads are not only delivered faster but also become more visible to users, maximizing their reach and impact.
4. The Rise of CTV, OTT, and In-App Ad Formats
The world is becoming increasingly mobile and dynamic, and ad tech companies swiftly adapt their strategies to match this trend. The growth of over-the-top (OTT) platforms, mobile-friendly, and connected TV ads formats has been meteoric in recent years, and this trend is set to accelerate in 2023.
The recent trend of a booming number of interconnected TVs suggests that connected TV advertising on these platforms will surge by 2027. Transiting popular events like the World Cup and FIFA on OTT platforms and CTV has significantly boosted ad spend.
5. The Dominance of Video Content
In today’s digital landscape, video content reigns supreme. Apps like TikTok and Instagram have thrived by captivating users with engaging short-form videos. The trend of programmatic video advertising is expected to become even more dominant in 2023, especially as 5G networks become more widespread.
Video ads outshine banner ads with an 18x higher click-through rate, making them a powerful tool for advertisers.
This makes them a powerful tool for advertisers looking to engage their target audience and achieve their marketing objectives.
Your Journey to Programmatic Excellence Begins with the Right Platform
The dynamic landscape of programmatic advertising in 2023 is evolving extraordinarily. To excel in this ever-changing environment, it’s important to partner with a demand-side platform (DSP) that not only keeps up with the latest trends but also excels in specialized areas like connected TV advertising and more. Many of the top digital marketing agencies are turning to innovative DSPs to help their clients stay ahead of the curve in this fast-moving field.
Some platforms offer zero minimums, allowing you to adapt your advertising campaigns without the constraints of monthly spending commitments. They provide direct access to all reports within our system, offering an array of metrics and dimensions for in-depth insights.
Leveraging the expertise of these platforms in keeping up with the latest trends in programmatic connected TV advertising can help boost your business quickly and gain an edge over your competitors.
