On November 7, we commemorate National Programmatic Advertising Day, a celebration of the remarkable journey programmatic advertising has undergone. This day offers a moment to reflect on how advertising has transformed and where it’s headed, especially in programmatic advertising. Today, we dive into the evolution of programmatic advertising and its current state.
The Evolution of Programmatic Advertising
Programmatic advertising is a game-changer. It’s essentially the art of buying and selling advertising space using algorithmic software. This sophisticated technique leverages traffic data and online advertising targeting to create impressions at scale, delivering a higher return on investment for marketers and exceptional outcomes for both small and large brands.
The Journey Begins
The digital advertising revolution kicked off in 1994 with the debut of the world’s first ad banner on Hotwired.com. It was an ad for AT&T that asked users “Have you ever clicked your mouse right HERE?” with an arrow pointing to text that read “YOU WILL.” AT&T utilized this banner space to market its latest technology, marking a pivotal moment in the history of digital advertising.
Ad Servers Emerge
In 1996, ad servers came into play, fulfilling advertisers’ desire to post banner ads online.
Ad Networks Arise
Between 1998 and 2000, the first ad networks emerged, setting the stage for programmatic advertising.
Interactive Banners and Beyond
The Birth of Ad Exchanges
In 2007, ad exchanges revolutionised the industry by automating ad sales and purchases, leading to the growth of DSP (Demand Side Platform), SSP (Supply Side Platform), and other RTB (Real-Time Bidding)-based technologies.
The Changing Landscape Since 2010
The past decade has witnessed a dramatic transformation in the media-buying process, with rich media and video commercials dominating the scene. In 2016, the estimated amount spent on programmatic display ads reached $20.41 million, reshaping the advertising landscape.
However, as the industry evolves, so do its key players. Google’s acquisition of DoubleClick in 2008 reflects the changing dynamics of the market.
Why National Programmatic Advertising Day Matters
National Programmatic Advertising Day is a significant occasion for several reasons:
- Visibility for Marketers: Programmatic advertising provides marketers complete visibility over their campaigns. They can track where their ads are displayed, their audience, and how their investments perform.
- Budget-Friendly Ads: Programmatic advertising is highly scalable and suitable for large and small businesses. It accommodates various budget sizes, including average daily campaign budgets.
- Broad Audience Reach: Marketers can tap into a larger and more diverse audience through programmatic advertising, reaching millions of websites and ad spaces.
Programmatic Ad Spend
Programmatic advertising is on an upward trajectory, with total programmatic ad spending projected to reach $92.5 billion in 2023, $102.33 billion in 2024, and $114.78 billion in 2025, according to eMarketer. These figures reflect the increasing significance of programmatic advertising in the ever-evolving advertising landscape.
Over the past two years, programmatic podcast ad spending has witnessed remarkable growth, more than doubling in this short span. Despite this surge, it currently constitutes just 8.3% of total podcast ad spend. Podcasts are still in the early stages of adopting programmatic advertising, lagging behind the broader US digital display and video ad market, which boasts a significantly larger share of programmatic ad spend.
To bridge this gap and catch up with the rest of the digital ad industry, podcast publishers must provide programmatic ad solutions. This shift is essential for podcast publishers to tap into the full potential of programmatic advertising, aligning with the broader trends in the advertising landscape.
Programmatic Audio Advertising Thriving
In today’s tech-driven world, digital audio is an integral part of our daily lives. From podcasts during the morning commute to audiobooks at the gym and streaming music for relaxation, digital audio accompanies us everywhere. Unsurprisingly, 74% of US internet users engaged with digital audio in 2022.
This surge in digital audio consumption presents a golden opportunity for advertisers to connect with their target audiences. Programmatic audio advertising is the key to unlocking this potential, utilising automated processes to deliver tailored audio ads seamlessly integrated into content such as news, podcasts, and music streaming.
Advantages of Programmatic Audio
- Targeting and Personalization: Programmatic audio offers precise targeting based on demographics, location, and device type. It stands out for its ability to target specific demographics, playlists, niches, and genres, aligning with the campaign’s theme or mood.
- Efficiency: Real-time bidding optimises budget utilisation by delivering ads to valuable listeners at the right moment. Creating audio ads is straightforward, and complementary companion banners enhance campaign effectiveness.
- Data-Driven Decision-Making: Detailed data on ad performance, such as listen-through rates and conversions, allow data-driven decisions for campaign optimization.
- Engagement: Digital audio advertising boasts high engagement levels due to its immersive nature and the listener’s full attention.
- Expansive Reach: Advertisers can connect with vast and diverse audiences across multiple audio platforms.
The Future of Digital Audio Programmatic
The digital audio programmatic landscape is poised for remarkable growth and innovation in the coming decade. Predictions include:
- Programmatic Advertising Market size to hit $138.25 billion by 2030, at a CAGR of 13.70%.
- Programmatic Dominance: Programmatic ads will become the majority of digital audio ad spend by 2030.
- Podcast Power: Podcasts will continue influencing engaged and loyal audiences, with podcast listenership exceeding 2 billion by 2030.
- Data-Driven Personalization: By 2030, advertisers will deliver hyper-personalized campaigns based on listeners’ demographics, interests, behaviours, and real-time context.
- Creative Innovation: Advertisers will experiment with innovative formats, including interactive ads, augmented reality experiences, and AI-powered content.
- Global Expansion: Emerging markets in Asia, Latin America, and Africa will experience rapid development, becoming key players in the industry.
- Ad-Blocker Resilience: Digital audio advertising is expected to remain resilient against ad-blockers, providing a valuable channel to reach audiences without interference.
AdTonos in the Audio Programmatic Space
In the dynamic realm of audio programmatic advertising, AdTonos core mission is to seamlessly merge advertising and audiences through programmatic audio integration. We differentiate ourselves through several key features:
- Diverse Audio Inventory Mix: We offer a rich and diverse range of audio content, from podcasts to radio broadcasts, music streaming and mobile gaming ensuring that your message reaches our vast and diverse audience.
- Global Reach with Personalization: AdTonos connects advertisers with a global audience, reaching 228 million unique monthly listeners. We personalize connections to ensure your message resonates with the right audience, transcending geographical boundaries.
- Tailored Private Marketplace Buys: We believe in customized solutions. Our Private Marketplace (PMP) purchases are tailored to each advertiser’s unique objectives and enhancing advertising strategies.
- Brand Safety and Inventory Quality: We uphold strict brand safety standards, meticulously scanning our audio inventory with the support of Protected Media to ensure your advertisements align with your values and messaging.
- Collaboration with Leading DSPs: Partnering with top Demand-Side Platforms (DSPs) like Xands, AdSwizz, Triton Digital, and others, we amplify the impact of your audio campaigns, reaching the right audiences at the right moments.
National Programmatic Advertising Day marks an evolution in advertising that has transformed how brands connect with their audiences. The rise of programmatic audio advertising presents new opportunities for advertisers to engage with a global and diverse audience. The future is bright, and the possibilities are limitless in this era of advertising evolution.
Contact our programmatic professionals to learn more and embark on a sonic journey with AdTonos.