Programmatic Trends: 2024 Forecast

The world of programmatic advertising is undergoing a major transformation in 2024. Familiar tools and strategies are giving way to new trends that promise exciting opportunities. Let's explore the key areas that will shape the future of advertising.

1. Sustainability Takes Center Stage

Gone are the days when advertising focused solely on clicks and conversions. Today, marketers and brands are increasingly concerned about the environmental impact of their campaigns. They're seeking ways to optimize both business goals and the planet's well-being. This means using tools that track carbon footprint and choosing partners committed to sustainable practices. 

The problem is huge. According to Scope3 and Sprout Social, digital advertising yields 13,860 metric tons of carbon each year.

Think of smart tools that help you choose ad placements that minimize the environmental impact, like picking energy-efficient server farms for your ads.

2. AI, Used Wisely

Artificial intelligence offers immense potential for programmatic advertising. It can personalize ad experiences, target the right audiences with precision, and even fight against fraudulent activity. By improving the targeting and personalization of advertising, AI can make advertising more effective and efficient, ultimately leading to a higher ROI for advertisers.

According to a report by MarketsandMarkets, the global market for AI in advertising is expected to grow 29.79% from 2020 to 2025. However, we need to use AI responsibly. Malicious actors could exploit it to create fake websites and generate meaningless impressions. We are already seeing this with the growth of AI-generated, made-for-advertising (MFA) sites. It's crucial to develop ethical AI practices and be vigilant against these threats.

3. Post-Cookies Era

As major web browsers like Safari and Firefox have already phased out third-party cookies, and Google Chrome is set to follow suit in 2023, advertisers, publishers and marketers are adapting to a cookieless future. These tracking tools are being phased out to protect user privacy. 

Privacy-enhancing technologies, contextual targeting, and a focus on first-party data will become increasingly important. While this shift may slow down some areas of innovation, it will also lead to exciting developments in areas like CO2 estimation tools and curated data marketplaces.

4. In-App Advertising

In-app advertising is already successful in mobile games, and it's poised to expand even further. Reward-based systems, where users watch ads in exchange for in-app benefits, are proving highly effective. In-app advertising has been hugely successful, supporting nearly 95% of free-to-play mobile games.

However, accurately measuring ad viewability of these campaigns can be tricky. However, the IAB Tech Lab developed new technical tool for in-app mobile viewability measurement, the Open Measurement Software Development Kit (OM SDK).

5. In-Game Advertising

The global in-game advertising industry is projected to reach $13,990 million in revenue by 2028. In 2024, the gaming industry is about to get a new quest: integrating ads that are both effective and immersive. It's a balancing act, but with the right approach, in-game advertising can be a win-win for gamers, developers, and advertisers alike. 

Big players, such as Sony and Microsoft, announced their intention to put ads in their free-to-play offerings. On the agency side, leading adtech firm Trade Desk has set up an in-game advertising team to help realize what it sees as a £100 million per year opportunity by 2027. 

While the future of programmatic advertising is full of promise, it's not without risks. Some in the industry prioritize short-term gains over long-term sustainability. We need to advocate for mandatory carbon accounting and stricter regulations to ensure a future where programmatic advertising is not only profitable but also responsible.