Programmatic advertising is an automated way of buying and selling online ad space using digital platforms and technologies. It does not rely on manual negotiations between advertisers and publishers but instead uses algorithms and automated systems to facilitate real-time ad transactions. This allows for more efficient targeting of specific audiences.
Thanks to this type of advertising, advertisers can make informed decisions about where and when to display their ads to maximize effectiveness, as it is based on the collection and analysis of real-time data. This involves purchasing ad inventory through online auctions in which advertisers compete to show their ads to users who meet specific criteria—such as demographic, behavioral, or interest-based attributes.
WARC, the global authority on marketing effectiveness, analyzed in its report The Future of Programmatic the trends shaping the current programmatic advertising landscape, which is facing challenges like cross-platform measurement, fraud, and the phaseout of third-party cookies, scheduled for 2024.
WARC asserts that as advertisers accelerate their search for new methods of targeting and measurement, they are experimenting with several post-cookie alternatives, including:
- Prioritizing first-party data
- Data sharing (between advertisers, publishers, platforms, and tech partners)
- Cookieless targeting (contextual and interest-based)
- Persistent identifiers (deterministic and probabilistic), as alternative means to track users across multiple platforms and devices.
On the other hand, as WARC notes, the programmatic advertising industry is expanding into emerging channels. However, these are also facing a range of challenges, such as:
- Data standardization in response to increasing fragmentation and a cross-platform environment
- Ad fraud, especially in Connected TV
- Transparency and integration issues between the open internet and walled gardens (closed ecosystems)
In summary, the consultancy’s study points out that moving forward, advertisers are seeking solutions for the post-cookie era, aiming to reduce digital waste in the programmatic supply chain and explore new channels to effectively reach their audiences. The report emphasizes that as the programmatic landscape continues to evolve, it’s vital for advertisers to stay up to date with the latest trends so they can adapt their strategies accordingly.