If you’re in the marketing world, then you know that programmatic advertising is one of the hottest topics right now. And for good reason, programmatic ads can be extremely effective in reaching your target audience.
But what exactly is programmatic advertising? In short, it’s a type of online advertising that uses automation to buy and place ads. While this advertising concept has been around since the mid-90s, it wasn’t until recent years that it started to pick up speed. It has grown into a $155 billion industry.
Here are the Programmatic Advertising Trends of 2022:
First-Party Data
As you’ve probably heard, Google is removing third-party cookies by 2023. This means that advertisers are looking for other solutions, and first-party data is a viable option for many. Using first-party data will change who you are targeting and how often. Looking into new ways to collect first-party data and starting to invest in it now could put your marketing ahead of your competitors. This shift gives consumers more privacy and a more pleasant advertising experience.
Connected TV
One of the most popular trends in programmatic advertising is placing ads on Connected TV. Since the pandemic, more people have been spending time streaming videos on their smart TVs and other connected devices. Advertisers saw this major shift and made room for larger budgets for CTV advertisements. While the pandemic has slowed, the watching habits have stuck around and CTV programmatic ad spending has followed suit. CTV programmatic ad spending increased to $6.9 billion and is expected to increase to $8 billion in 2022.
Digital Audio Ads
Digital audio ad spending is expected to grow 38.7% year-over-year. This growth is thanks to the increase in podcasts, audiobooks, and other streaming audio content. Audio programmatic ads are effective because they’re non-intrusive and can be easily integrated into the content. Plus, listeners are usually engaged with the content and less likely to tune out an ad. According to Nielsen, listeners have a 24% higher recall rate compared to display ads and are more likely to follow through on a purchase.
Mobile In-App Video Ads
Mobile in-app video programmatic ad spending is also on the rise. In 2021, mobile ad spending saw a 23% increase. This growth is due to the increase in time people are spending on their apps and playing games on their phones. According to Marketing Dive, users of TikTok and Facebook spent 16.7 hours a month using their apps, which are very video-heavy apps. Mobile video ads generally have a higher view rate because people find videos more engaging.
Contextual Advertising
Programmatic advertising is all about contextual advertising — you get to put your ads in front of the people that meet your specific audience. With programmatic, it’s easy to place your ads on websites that complement your business and ads. Relevant ads are much more likely to end in a conversion.
Closing Thoughts
These are just a few programmatic advertising trends to keep an eye out for in 2022. As programmatic ads continue to grow and evolve, so will the trends. Be sure to stay up-to-date so you can take advantage of new opportunities as they come up. Programmatic ads could be extremely effective in reaching your target audience.
Are you interested in getting started with programmatic ads? Give Transformation Marketing a call at 402-788-2896 to learn more about our service!