Emerging Trends in Programmatic Advertising: Insights from WARC’s The Future of Programmatic 2025
A new report by WARC, titled The Future of Programmatic 2025, delves into the rapidly evolving landscape of programmatic advertising. As advertisers increasingly prioritize transparency, control, and brand safety, it’s clear that the programmatic marketplace is undergoing significant transformation. The report not only offers a comprehensive overview of the current state of programmatic but also identifies key trends shaping its future.
Spending Efficiency on the Rise
One notable finding is the increase in spend efficiency for programmatic campaigns, which has risen by 14% since 2023. Marketers are actively seeking improved transparency and quality metrics, moving away from the unpredictability that has historically plagued programmatic buying. As noted by the IAB Europe, brand safety has emerged as another top priority, with expectations that innovative AI tools can help enhance accountability and transparency.
Key Trends Highlighted in the Report
1. A Shift Towards Quality Inventory
Advertisers are increasingly shifting their focus toward high-quality, brand-safe inventory. The past few years have been challenging for open web programmatic advertising, facing hurdles related to transparency, targeting, and measurement. In response, many brands are adopting cookie-free strategies, leveraging first-party data and contextual advertising. Research shows that nearly half of marketers expect to rely primarily on cookie-free targeting tactics by the end of 2025.
2. The Emergence of Curated Private Marketplaces
There’s a significant rise in the usage of curated private marketplaces as a means of transacting programmatic inventory. A 2024 study indicates that 41% of marketers across Europe view curated deals as an opportunity for higher ROI. Furthermore, multi-publisher curated deals now comprise nearly three-quarters of all bid requests in programmatic advertising. This trend underscores a mutual preference among marketers and publishers for accountability and collaborative solutions, particularly for driving better results.
3. The Evolution of Brand Safety through AI Tools
With brand safety considerations at the forefront of marketers’ minds, the evolution of AI-powered tools has generated optimism. Traditional keyword and category blocking mechanisms often fall short, leading to unsafe placements and unjust penalties for publishers. New AI technologies are emerging that can analyze content and context far more precisely, allowing brand safety strategies to become proactive rather than reactive. This shift can enhance trust and transparency within the programmatic ecosystem.
The Rise of Programmatic Digital Out-of-Home (prDOOH)
Programmatic digital out-of-home (prDOOH) is rapidly gaining traction, offering a modern solution that combines the traditional reach of outdoor advertising with the precision of programmatic buying. According to WARC, prDOOH ad spend is on a steady upswing, projected to grow by 14.9% this year alone. Notably, half of all digital out-of-home campaigns are now bought programmatically, allowing brands to deliver more relevant and timely advertisements. This flexibility enables the use of dynamic creative optimization, adjusting campaigns based on real-time triggers like time of day or audience footfall.
The insights provided in WARC’s report highlight a promising future for programmatic advertising as market participants embrace innovations that improve transparency, quality, and effectiveness. The landscape is shifting to prioritize accountability, making way for more informed and impactful advertising strategies in the coming years.