Global programmatic advertising spending reached $155 billion in 2021. New technologies are being developed faster than ever before, and to keep up with the industry companies need to familiarize themselves rapidly with these significant changes. We’ve summed up some of the biggest trends we expect to see in the coming year and the challenges and opportunities that come with it.
Cookieless - First-party-data and Contextual
With Google postponing the end of third-party cookies to 2023, it has given the digital marketing space an opportunity to innovate and create solutions that are flexible and strong enough to sustain in a cookieless world. There are primarily two main solutions that are being invested in – the use and optimization of first-party data, and contextual targeting.
Market behavior will likely shift, seeing that competition will increase as media spending moves away from cookies and towards identity solutions and contextual targeting. However, these solutions are not as feasible to use for smaller, independent publishers who don’t have enough data to scale. As an industry, we need to further develop these technologies to make sure smaller companies won’t start off their cookieless journey at an unfair disadvantage.
As we’re expecting to see the rise of more subscription-based business models, digital audio will likely reap the benefits. Ad spending on digital audio is expected to expand widely in 2022 and reach nearly $7 billion. With an expected annual growth rate of 9% from 2022-2026. However, there are difficulties in projecting the future of digital audio advertising, as there is a need for industry standards to be set and innovation within the domain will be imperative.
Consolidation in Programmatic Media - M&A
The challenge for each player is and will be to prove their unique and added value. In terms of the evolution of SPO in 2022, we expect to see seller.json files being updated regularly on the publishers’ side, and more DSPs enforcing SPO.