Top Ad-Tech Trends Every Brand Needs to Know: Durvesh Yadav

Authored by Durvesh Yadav, Serial Entrepreneur, Best Selling Author, Founder of Rising Star Communication

The advertising technology (Ad-Tech) landscape is continually evolving, shaped by factors such as changing consumer behavior, data privacy regulations, and technological advances. In 2023, technology giants and large media corporations are finding themselves needing to reassess their income and advertising approaches. They are also tasked with discovering innovative solutions to tackle the complexities surrounding identity, measurement, and privacy. The worldwide expenditure on programmatic advertising is anticipated to exceed $557 billion this year, marking a remarkable increase of 100% compared to 5 years earlier.

If you're a brand that wants to stay competitive and relevant, you need to be on top of the trends shaping this dynamic industry. Here are some vital ad-tech trends that should be on your radar:

1. Programmatic Advertising

Programmatic advertising is no longer a new trend, but it continues to dominate the ad-tech landscape. This approach uses AI to automate buying, placement, and optimization of media inventory, replacing traditional human negotiations. According to eMarketer, by 2023, 88% of all digital display ads in the U.S. will be bought via automated channels. This allows brands to increase efficiency, reduce costs, and improve targeting.

2. Contextual Advertising

Contextual advertising has been experiencing a resurgence, primarily driven by new privacy regulations and the impending end of third-party cookies. This technique aligns ads with the content of a webpage, based on keywords and themes, rather than relying on user behavior data. According to a study by GumGum, 61% of U.S. marketers plan to increase their spending on contextual advertising in the coming year.

3. Connected TV (CTV) and Over-The-Top (OTT) Advertising

The shift from traditional TV viewing to digital platforms has opened up new opportunities for advertisers. CTV and OTT advertising allows brands to reach audiences on digital TV and streaming services. Spending on CTV advertising is predicted to grow from $14.11 billion in 2022 to $18.29 billion in 2024. As services such as Netflix and Disney+ introduce ad-supported tiers, the volume of ad inventory is set to grow. The usage of data-driven CTV is also projected to escalate, considering that more than 68% of TV viewing is already being streamed on various devices. CTV appears to offer a promising avenue for marketers in the face of looming privacy regulations. Considering that consumers can carry out a transaction on the same device where they viewed a product advertisement, CTV presents an attractive opportunity for ecommerce.

4. Mobile In-App Advertising

With smartphone usage still on the rise, mobile in-app advertising presents a valuable opportunity for brands. In-app ads can offer high engagement rates as they're integrated into the app experience. App Annie forecasts that by 2025, mobile will comprise 72% of all digital ad spending.

5. AI and Machine Learning

AI and machine learning are playing an increasingly important role in ad-tech. These technologies can help automate and optimize campaigns, improve targeting, and deliver personalized ads. According to an industry report, businesses implementing AI in their marketing strategies can expect to see a 25% increase in operational efficiency.

6. Audio-Based Advertising

The primary reason many companies are moving towards audio-based ads is the growth and evolution of voice technology. Increased reliance on audio streaming services has transformed consumer trends that brands are currently observing. This underscores the need for businesses to stay abreast of this trend in order to resonate with their target demographics. A study by Adobe indicates that voice is more captivating than text or visual ads. The verbal interaction spurred by these types of ads, without the distraction of visuals, enables brands to reach a broader audience, especially when inserted during podcasts or music. These ads tend to be less disruptive than traditional ones and foster greater engagement.

7. First-Party Data Infrastructure

Google has again postponed discontinuing third-party cookies, pushing the original Q2 2022 deadline to 2023 and now further into 2024. Regardless of this delay in cookie depreciation, the industry is undeniably transitioning into an era dominated by first-party data. There is a need for extensive modifications to the Privacy Sandbox to make it an effective ad identifier and to secure regulatory approval. It's expected that Google will be compelled to provide less inclusive cohorts for targeting, which won't offset the impact of phasing out third-party cookies. It's crucial for AdTech to reach a consensus and implement a high-level solution that revolves around a sustainable universal ID, first-party infrastructure, and transparent data-sharing consent mechanisms.

Staying abreast of these trends is crucial for brands in the ever-evolving ad-tech landscape. By understanding and adopting these trends, brands can engage their target audiences more effectively, optimize their ad spend, and stay ahead of the competition. Moreover, with the rapid digitization and increasing customer expectations, these trends not only provide an edge in the current market scenario but also prepare brands for future shifts in the advertising industry, ensuring their long-term relevance and success.