Top Trends in Programmatic Advertising to Boost Business in 2023
STORY INLINE POST
The last few years have taught us a valuable and powerful lesson: There’s no stopping the digital transformation. And the same goes for advertising: Advertisers have chosen their path, and it is — unsurprisingly — digital. According to Valor total media, an industry report published by Asociación de Internet MX, Alianza por el Valor Estratégico de las Marcas, Consejo de Investigación de Medios and IAB México, ad spend in Mexico continued moving toward digital during 2022. This trend even reached the digital versions of traditional media, where display ads have remained the top choice for advertisers for years.
Digital advertising has also gone mainstream across the region. According to eMarketer data (2022), digital ad spend in Latin America exceeds 50 percent of the media mix and is set to continue growing in the next few years. In 2021, Mexico’s digital ad spend reached 56 percent (a 36.8 percent increase on the previous year), beating Brazil.
Within this growing trend, some formats seem to be gaining more ground. According to the previously mentioned IAB report, digital video accounts for 67 percent of the media mix. Over the last few years, the media mix has diversified, and it now provides a wide range of options and channels for marketers and advertisers.
Four Trends and a World of Possibilities
As we mentioned earlier, technology and programmatic advertising are constantly evolving, and when combined there is no stopping them. The continuous rise of innovative trends provides marketers with increasing ways to optimize their campaigns and, ultimately, maximize their return on investment.
So, here are four key trends in programmatic advertising to watch out for in 2023:
Video Ads Rise to the Top
Video ads using AI enable brands to create thousands of video options with targeted messages to engage with the right audiences in innovative ways. This allows brands to gain visibility in connected TV platforms, social media and websites alike.
We are talking about a unique opportunity for advertisers. Today, video on demand has gone mainstream, greatly outstripping traditional television. Therefore, connected TV — that is, an internet device that connects to a television to support video content streaming — can be a game changer.
One of the main benefits of connected TV is audience segmentation. In comparison with traditional TV, these services allow advertisers to reach more targeted audiences. As such, better segmentation helps reduce costs and improve results.
For example, using dynamic creative optimization (DCO) in connected TV, brands can create branding and awareness campaigns, as well as promotional and product campaigns. Then they can segment audiences based on their inventory and create thousands of dynamic video ads tailored to each target group’s likes and preferences. This, in turn, can benefit conversion rates.
Mobile Still Leads the Way
Smartphones are still the top device of choice and the leading gateway to internet access. According to data from Newzoo (2021), Latin America has 352 million smartphone users. Mobile devices are part of most of our daily activities: from searching for information to online purchasing and payments, mobile traffic accounts for more than 75 percent of online activity.
Contextual Advertising, an Alternative to Cookieless Tracking
Contextual advertising is a form of online advertising that delivers ads based on how relevant they are for the content on a webpage. This specialized service applies contextual segmentation, a technique that maps webpages content in search of keywords and identifies the most relevant pages for each ad. For example, if you are reading a travel blog, the service will mostly display ads for hotels and flights. This will likely boost conversion chances by delivering the right ads to the right audience at the right time.
Thus, marketers can maximize ad delivery by combining technologies. While demand-side platforms can help them choose the right ad outlet, DCO technology can help them deliver the most relevant ad for each user based on the content they are consuming at any given time.
Programmatic Audio and On-Demand Culture
Podcasts are a great example of a booming trend: on-demand culture. According to EncuestaPod 2022, a survey conducted by Podcaster@s to learn about Spanish-speaking podcast audiences, the platform of choice for listening to podcasts is Spotify (77 percent), followed by YouTube (26 percent). Furthermore, 86 percent of respondents access this type of content through mobile devices (both smartphones and tablets).
This shows audio ads could be a great asset to your marketing campaigns.
To create successful ad campaigns and adapt to new market trends, brands need a key technology partner to support them each step of the way. The market today offers a wide range of MarTech solutions that leverage AI to help brands reach the right audience at the right time.
A technology partner is not just a software provider — it also provides expert guidance, personalized support and follow-up assistance by a team of professionals who understand the ins and outs of the industry and the unique needs of each business. With a technology partner, brands will be able to draw strategic insights from consumers to optimize their experience. In other words, having a company like ours by your side will help you win the battle for relevance.