Into The Future: Insights And Trends Shaping Ad Tech In 2024
Roman Vrublovskyi is the veteran CEO of SmartHub , a global advertising technology company that provides white label programmatic solutions.
In 2021, US advertisers' programmatic advertising budgets will grow to $106 billion, representing a significant 41% year-over-year growth. eMarketer's forecast predicts a continued upward trend, forecasting growth to $141.96 billion in 2023. These significant figures underscore the strong and growing nature of programmatic ad investment in the US market.
Given this growth, reducing third-party cookies is a key factor that casts a shadow of uncertainty on the program. This development, which has occurred during a period of increasing expansion over the past two decades, calls for critical reflection and a closer examination of the possibilities of programmatic advertising.
As we enter 2024, the ad tech community faces opportunities and challenges related to programmatic advertising. The ad tech industry is set to unveil the trends that will shape the future of ad tech this year.
What does the future hold for the ad tech industry?
The challenge of reducing third-party cookies
A key development on the horizon is the reduction of third-party cookies. Driven by growing concerns about user privacy, this paradigm shift introduces complexity that requires strategic reevaluation. As we approach 2024, the impact of this decline goes beyond technical consistency and requires a reevaluation of audience segmentation strategies and measurement metrics.
The accuracy of contextual advertising can help the industry combat the loss of third-party cookies. Future advances in natural language processing and context analysis will enable ad tech platforms to more accurately understand and interpret content context. Advertisers can use this feature to deliver highly targeted and contextually relevant ads, improve user engagement, and reduce reliance on third-party cookies.
A declining attention span challenge
In today's immersive advertising landscape, advertisers face an inevitable challenge characterized by growing attention spans and increasing ad fatigue. The digital age has brought with it an avalanche of information and exposed consumers to a constant barrage of content.
This requires a fundamental re-evaluation of advertising strategies to effectively engage audiences in the context of fleeting attention spans and content saturation.
Internal management of programmatic campaigns.
A decade ago, a few companies dominated programmatic ad buying, but today there has been a significant shift. This move to internal programmatic campaigns reflects a strategic desire for greater openness in the process and strengthened control and transparency. Beyond these benefits, in-house programmatic advertising offers cost reduction and resource efficiency.
By avoiding third-party costs, companies can allocate resources to proactive marketing initiatives, potentially achieving higher return on advertising spend (ROAS). This change gives companies more autonomy and efficiency in managing programmatic advertising to achieve lasting success.
Technological innovation
The year 2024 promises to be marked by more technological innovations. AI-based solutions, machine learning algorithms and advanced data analytics will play an important role in improving targeting accuracy and campaign optimization. Ad tech players need to stay abreast of these innovations to use them effectively in their strategies.
AI-powered creative optimization
AI algorithms will play a crucial role in optimizing ad creatives in real-time based on user interaction, preferences and relevance.
Dynamic creative optimization based on machine learning ensures that ad content dynamically evolves to appeal to different audience segments, maximizing campaign performance.
Interactive and immersive advertising experience
Augmented Reality (AR) and Virtual Reality (VR) are becoming an essential part of advertising, providing immersive and interactive experiences.
Brands can create AR/VR ads that allow users to virtually interact with products, providing a more engaging and memorable advertising experience.
Ethical AI in advertising decisions
Ethical considerations will become increasingly important in AI, with a focus on eliminating bias in advertising decision-making algorithms.
Ad tech companies can invest in developing and implementing AI ethics frameworks to ensure fairness and inclusiveness in ad targeting and delivery.
Voice search optimization
With the advent of voice-enabled devices, ad tech platforms will focus on optimizing ad content for voice search queries.
Data centric and personalization approach
Data-centric approaches will be at the forefront of ad tech strategies The ability to use and analyze data for personalized advertising experiences will be a key differentiator. Advertisers and marketers must prioritize maintaining privacy as they search for ways to deliver personalized content that resonates with their audiences.
Growth opportunities in games and audio advertising
With global gaming revenue surpassing $300 billion, programmatic advertising, especially in-game advertising, is taking on a golden opportunity. The introduction of 5G is improving engagement and offers lucrative opportunities in the audio advertising space, including music streaming, podcasts and digital radio. Advertisers are taking advantage of the growth in mobile audio consumption, especially on podcasts, finding strategies that are brand safe and resistant to ad blockers. Game and audio ads effectively fulfill the advertising needs of advertisers.
Popularity of white label software solutions
White label software is gaining popularity as a strategic business solution and provides versatile tools to improve operational efficiency and control. It also extends to advertising platforms and allows organizations to control campaigns at the admin level White label software operates as a service (SaaS) and offers pre-built, customizable solutions that are particularly beneficial to businesses looking for cost-effective program management.
Its appeal lies in its adaptability and efficiency, streamlining operations without extensive in-house development. Choosing a white label advertising platform enables rapid delivery of customized solutions, accelerates implementation and reduces resource investment.
Food for takeaway
In 2024, ad technology will dynamically adapt to white label software, programmatic campaigns and technology integration and solve industry challenges. Ethical AI, unified identity solutions and sustainability are emerging in response to privacy concerns. The attention team is rethinking strategy with a focus on immersive experiences, while the growing gaming and audio advertising sectors offer new engagement opportunities.
Success depends on industry collaboration, agility, regulatory awareness, embracing innovation and striving for a transparent, efficient and consumer-centric landscape by 2024 and beyond.
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