Programmatic Advertising Trends to Inform Your 2021 Strategy
Programmatic advertising trends are constantly changing and being improved upon. And these days, marketers have access to a plethora of first party data which allows them to make more informed decisions when it comes to media buying. As a matter of fact, programmatic advertising buying is so powerful (and successful) that in 2021 it’s anticipated that almost 88% or $81 billion of all US digital display ad dollars will be transacted programmatically.
Now, let’s take a look at some of the top programmatic advertising trends to watch out for in 2021.
1. Connected TV and Digital Audio Will Grow
The amount of connected TV users is continuing to grow, which in turn is causing a significant increase in programmatic TV advertising. With this growing customer base, we are also seeing more and more streaming services like Disney + and Apple TV + being launched—opening up a great deal of new opportunities for digital marketers.
As a matter of fact, the increase in users is so significant that a forecast by eMarketer predicts by the year 2022, the amount of connected TV users in the US will grow 204.1 million, which is more than 60% of the country’s population. Much like connected TV and television streaming services, digital audio (such as online radio, music streaming and podcast) are gaining in popularity. In 2021 programmatic audio is a media buying trend that digital marketers will be looking to take advantage of. Hint, you should be looking into it as well!
2. Live Video Streaming is taking off across the world
Users are now watching more diversified video content in real-time generated by professional content creators or general users. According to ResearchAndMarkets.com, back in 2018, the estimated global Live Video Streaming (LVS) market size was around $8.25 billion. The analyst expects a compound annual growth rate (CAGR) of 22.8% from 2018 to 2022. The global LVS market is projected to reach $22.09 billion by 2022.
3. Digital Out of Home Targeting Will Keep Improving
The digitization of out-of-home advertising has greatly increased its ability to be effective, particularly in comparison to the old fashioned billboards of the past. These new outdoor digital screens are increasing in popularity due to their potential for programmatic advertising.
DOOH offers an exceptional ability to reach consumers with situation-specific messages. Using environmental triggers, marketers can deliver relevant content to consumers with dynamic creatives based on date, time, location and real-world behaviours.
The worldwide DOOH market size is projected to grow to $15.9 billion by 2027.
4. Wearable Technology Will Change Programmatic Advertising
Another opportunity for programmatic advertising that marketers have their eyes on, is wearable technology. Nowadays it seems as if everywhere you look there are people with wearable technology, such smart watches, or fitness trackers to name a few. Research suggests that the number of users will only continue to grow.
The size of the global wearable technology market is projected to increase at a compound annual growth rate of 15.9% from 2020 – 2027.
The rise of wearable tech offers marketers a great new medium to implement programmatic advertising. Their ability to not only deliver content, but collect data such as location, health metrics, and lifestyle choices, makes it one of the most intriguing media buying trends in 2021.
5. The Rise of Smart Audio and Voice Advertising
Another form of technology that is seeing massive growth (and doesn’t seem to be stopping any time soon) is voice controlled devices. A 2020 consumer survey from voicebot.ai showed that as of January 2020, 87.7 million US adults were smart speaker users – this is up 32% from the same time the year prior.
When many people think of smart speakers, they think of them being used to play music or even to settle basic arguments—“Alexa, who was the first person to land on the moon?”.
However, these devices are increasingly being used for new activities, drawing the attention of marketers from around the globe. A report by NPR and Edison Research showed that 57% of smart speaker owners have used their devices to shop, and 25% of stated purchases totalled more than $150.
Plans for 2021 and Beyond
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