What are the main trends that will influence programmatic advertising in the coming year? This is the subject of a new report, The Future of Programmatic 2024, prepared by WARC in collaboration with NewtonX. Although two-thirds of respondents are somewhat satisfied with the current state of affairs, they also find a lot of room for improvement.
Today, programmatic channels account for more than 70 percent of digital ad spend. In the Czech Republic, according to SPIR data, programmatically traded advertising accounted for 72 per cent of all display advertising last year, having grown by seven per cent year-on-year. "Declining addressability, brand safety and ad fraud continue to concern marketers. Addressing these concerns is even more important as the volume of programmatically traded advertising continues to increase each year," said Paul Stringer, senior editor of Research & Insights at WARC, in the introduction.
In its first section, the report looks at the quality issues that lead to advertiser dissatisfaction. Recent studies have shown that advertisers are wasting millions of dollars on non-displayable, fraudulent and low-quality impressions. This is leading to an erosion of trust in the programmatic advertising ecosystem. As WARC and NewtonX research has shown, the biggest portion of concern is related to the issue of brand safety, with many respondents feeling the risk of their ads appearing alongside unsafe content. Brand safety was cited as the biggest concern by 60 percent of advertisers and agencies. Other serious threats include ending support for third-party cookies (52%), viewability and accurate measurement (51%), and ad fraud (46%).
"Advertisers and agencies need to take a more proactive and comprehensive approach to brand safety, expanding their ad placement criteria to make better decisions and ensuring their ads are displayed in an appropriate and relevant environment," urges Hannah Rook of MediaBrands Magna Group.
The report also looks at four other areas. In a section on the time after the end of third-party cookies, it notes that, however surprisingly Google has changed its plans to end support for them, advertisers are not prepared for the new order, where first-party data will play a major role. In the third chapter, on transparency, the report notes that while the American Association of National Advertisers (ANA) has come up with several steps to improve programmatic advertising transparency, many advertisers and agencies have not yet implemented these recommendations. The section on sustainability is a sad testament to how few advertisers and agencies are measuring the carbon footprint of their campaigns, or at least taking steps to reduce it. And the last section looks at declining advertising investment on the traditional open internet in favour of so-called 'walled gardens', i.e. closed platforms and ecosystems.
Source: mam.cz
