While programmatic advertising has been around for a long time, it is only in the last few years that the whole media landscape has realized its value. According to a Research and Markets report, the global market for programmatic advertising is expected to reach $33.7 billion by 2027, growing at a CAGR of 30.7% from its current market size of $5.2 billion.
With time, programmatic advertising is expected to become the mainstay in the global digital media industry. An advertising technology, as critical as programmatic advertising thus, deserves special attention in the coming year.
Take a look at some of the top trends that can shape programmatic advertising in 2021-
1. Emergence of AI
As marketers now better understand the relationship between campaign optimization, targeting, audience selection, and measurement, the strategies to manage the audience are progressively maturing. The rising need to uncover insights into this relationship will make Artificial Intelligence (AI) vital in the following year.
AI’s ability to discover patterns in large amounts of data will encourage the marketers to adopt AI-based programmatic advertising as it becomes a necessity to remain competitive and effectively reach the right audience with the right message.
2. Programmatic DOOH for Offline Audience Identification
Digital Out Of Home or DOOH advertising has witnessed steady growth in the last few years, especially in the US and Europe. According to a Statista report, from its current size of $7.47 billion, it is expected to reach a market size of $15.9 billion by 2027. At this rate, the amalgamation of DOOH and programmatic advertising is unavoidable.
For the longest time, marketers have struggled to find practical solutions to bridge the last mile gap of the customer journey, like between online and offline, or home and store. DOOH can be combined with smartphones’ location data so that targeted advertisements reach the desired audience even in the offline world.
3. OTT Advertising to the Fore
While the 2020 pandemic has negatively impacted almost every industry, OTT is one of the few exceptions. Most popular OTT platforms have witnessed a significant surge in the number of paid customers as lockdowns forced consumers to stay indoors. This growth is crucial as developing countries such as India have become the top OTT markets.
In fact, according to a PwC report, India is now the world’s fastest-growing OTT market. Another report by research firm TAM posted on ET BrandEquity suggests that volumes of OTT advertisements on TV grew by 31% in Q1 of 2020 in India. As on-demand content will continue to grow in popularity, OTT advertising spends can witness an upswing in 2021.
Programmatic Advertising in 2021: Lots of Changes, Plenty of Opportunities
The consumption habits change with every passing decade. But the decade worth of change is made possible with the help of several small trends and revolutions introduced every year. 2021 is expected to be no different.
If you’re looking for ways to take advantage of programmatic advertising in 2021, these are some of the trends you should watch out for.