industry trend : programmatic
Programmatic has transformed the way digital advertising is sold and bought by improving campaign effectiveness through:
- process automation;
- refined targeting capabilities;
- real-time performance measurement.
All while reducing expenses. In fact, 25% of advertisers consider cost reduction as the main factor for investing in programmatic.
Programmatic advertising: the locomotive of the digital universe
Sources: emarketer, Programmatic Ad Spending Forecast Q1 2023, February 2023 and The State of Programmatic Advertising in 5 Charts, August 2023 / WARC, The Future of Programmatic, 2023 / Statista, Digital advertising in Canada – statistics & facts, June 2023 / Codeur Blog, Comment fonctionne la publicité programmatique ?, April 2022
And now, programmatic is rapidly expanding into new channels, such as connected TV, retail media, and digital advertising, increasing the possibilities for targeting and creativity.
Advertisers are moving away from the open ad exchange
Behind these promising prospects, the current programmatic system hides many shortcomings. Lack of transparency, advertising fraud, low viewability . . . all this hinders its effectiveness. This is especially true in the open marketplace, where purchases are not guaranteed. Added to this are the issues of data protection and user consent.
The growing scourge of MFAs (made-for-advertising sites)
Source: Digiday, Programmatic ads pose new brand risks amid the generative AI boom and WTF are made-for-advertising sites (MFAs), June 2023
private marketplaces, more popular than ever
The current context is reviving interest in private marketplaces (PMPs), which have been growing steadily for several years. Indeed, the advantages of secure agreements in terms of added value are many:
- on the advertiser side, they provide access to premium audiences in trusted environments;
- on the publishers’ side, they allow them to regain control over their inventory, by selecting the advertisers participating in the auction.
More broadly, strengthening direct relationships between advertisers and publishers is a key element in the development of post-cookie strategies.
To learn more about this, check out our article on sharing first-party data and clean rooms.
