Most Arranged Topics In Programmatic Industry Through Q1-Q3 2023
19 July 2023
At the onset of this year, the DecenterAds team made projections about programmatic advertising trends anticipated for 2023. Having reached the year’s midpoint, we can assess the extent to which these predictions have gained significant relevance.
Growth of Global CTV Advertising
According to research data, the high trend on CTV and OTT continues to grow. In the first quarter of the year, the global advertising expenditure on Connected TV (CTV) surpassed $3.2 billion. The Asia-Pacific (APAC) market experienced a remarkable growth of 15% year-over-year in open programmatic CTV ad spend. Among the key players, Roku continues to dominate the market, while Samsung, Amazon, and LG have successfully gained a larger share.
In Q1 2023, Roku devices accounted for 46% of CTV’s open programmatic ad spend. Samsung, including its Smart TVs, witnessed a significant rise in market share, reaching 19%, reflecting a 23% increase compared to the previous year. Amazon Fire TV devices secured the third-highest market share at 9%, indicating a substantial growth of 44% year-over-year.
Focusing on In-app Continues
The growing use of smartphones and tablets propels the in-app advertising market ahead. Global in-app advertising market size will grow from $99.7 billion in 2022 to $119.6 billion in 2023 with a CAGR (compound annual growth rate) of around 20%. Experts predict that by 2027, the market will reach $240.4 billion, fueled by a CAGR of 19%.
The emphasis on enhancing and expanding the in-app experience remains in priority among top companies. Starbucks employs a comprehensive mobile marketing approach that integrates successful techniques such as location-based interaction, digital payments, a strong customer loyalty program, and an efficient notification system. Using these strategies, Starbucks capitalizes on $1.6 billion of preloaded funds from its rewards program.
The in-app advertising market is witnessing a significant trend toward technological advancements. Key players in the industry are actively developing new platforms and leveraging modern technologies to stay competitive and retain their market position. Amobee Inc., BYYD Inc., Flurry, Google AdMob, Chartboost, Apple Inc., Meta, InMobi Pte Ltd., AOL Inc., MoPub Inc., Tune Group Sdn Bhd, Tapjoy Inc., Glispa GmbH are among the key players in the in-app advertising market.
The mobile app market shows great potential for continuous growth, with a staggering prediction that it will reach $935 billion in revenue by 2023. In-app advertising offers compelling advantages, effectively capturing user attention through engaging and interactive experiences without causing disruptions. Considering that people spend over 90% of their mobile time using applications, leveraging in-app ads can significantly enhance user retention by up to 4 times. Notably, this advertising approach shines particularly bright in gaming apps with a substantial user base. With over 5 million apps, the in-app advertising landscape offers opportunities.
Moreover, in-app advertising empowers marketers with hyper-targeted campaigns, ensuring their messages reach specific audiences precisely. Strategically placing and timing ads within apps further enhances their impact and relevance. As a result, companies can maximize their return on investment through this cost-effective advertising solution. Organizations can leverage cutting-edge strategies and technologies to elevate their mobile advertising efforts, effectively reach their desired audiences, and boost their overall ROI to achieve optimal results.
Prospects for Audio Advertising
Digital audio advertising has emerged as a prominent trend in the advertising landscape, experiencing remarkable growth and resilience, particularly during the pandemic. Not only did digital audio listenership withstand the challenges brought by the pandemic, but it expanded, leading to audio ads boasting a 24% higher recall rate than traditional display ads.
Several statistics strongly indicate that digital audio will continue to surge in popularity among users and advertisers in 2023. For instance, four out of ten working-age internet users worldwide report using music streaming services at least once per week, demonstrating a significant and consistent user base. In the United States, an impressive 74% of adults were part of the digital audio listenership in 2022, highlighting its widespread adoption.
The year 2022 was also marked as the year of the podcast, with podcast listenership in the US growing by 20%, further cementing the prominence of audio content. Additionally, a staggering 273 million Spotify users opt for ad-supported tiers, showcasing the immense reach of digital audio platforms. Remarkably, the average user now spends approximately 36 waking days per year engrossed in music on streaming platforms, underscoring the deep engagement and extensive time spent on these platforms.
In the past, audio advertising has often been perceived as solely an awareness-focused channel, resulting in budget reductions that impacted spending on audio ads. However, the landscape of audio advertising experienced a significant shift in 2022, challenging these long-standing beliefs. The continuous growth in audio advertising expenditure has defied these perceptions. The Digital Audio Advertising market will grow considerably, with projected ad spending expected to reach a substantial figure of US $10.14 billion by 2023. Furthermore, programmatic audio advertising has paved the way for highly targeted audio ad campaigns, enabling advertisers to guide listeners through the marketing funnel. This transformation has turned audio advertising into a comprehensive channel encompassing the entire customer journey, making it a valuable tool for advertisers.
Given these trends, 2022 witnessed a significant surge in advertisers leveraging digital audio content to enhance brand awareness among audio listeners. Digital audio, with its expanding user base and captivating engagement, is positioned to sustain its upward trajectory in the advertising industry. It offers advertisers an effective and impactful medium to reach their target audience.
The Rise of White-Label Programmatic Advertising Platforms
In addition to traditional programmatic technologies, White-Label Payment Platforms are experiencing a surge in popularity. White Label Programmatic Platforms represent the pinnacle of precision, speed, and meaningful software solutions for programmatic advertising. White-label software serves as a ready-to-use solution that can be customized to align with the requirements of any company.
By adopting white-label programmatic advertising, businesses can harness the expertise and technology of third-party providers without the need to invest in the infrastructure or resources necessary for constructing their programmatic advertising platform. This enables them to offer clients a comprehensive range of advertising services, including programmatic advertising, without the expense of developing and upkeeping the underlying technology. In recent years, there has been significant evolution in the financial markets, leading to improved efficiency. As new tools, exchanges, instruments, and ecosystems emerge, only the most outstanding contenders will endure in the long-term competition.
Cryptocurrency continues to be a persistent trend that shows no signs of fading. The entire cryptocurrency ecosystem is gradually making its way into the mainstream. In general, “white label” refers to a customizable package of code developers sell to clients, allowing them to build complex software solutions efficiently. A comprehensive white-label crypto exchange script typically includes crucial components like order books, matching engines, settlement layers, wallets, and payment processing systems. Businesses can easily customize the user interface of white-label digital asset platforms to align with their branding and preferences.
The growing sector has captured the attention of the financial industry and businesses, resulting in a notable surge in services and companies operating in this field. Thriving in the emerging open financial sector requires businesses to find improved solutions for white-label cryptocurrency exchanges.
5G Networks Optimizing
5G optimization enhances customer interactions with brands, providing faster and more personalized experiences. Increased 5G coverage and improved network speeds reduce internet load times. The coverage of 5G expanded significantly, rising from 5% in 2019 to 17% in 2020. Combining 5G with edge computing enables location-based marketing, delivering targeted notifications and creating personalized user shopping experiences.
The world focuses on developing simplified, intelligent, eco-friendly ICT infrastructure to drive innovation and build a resilient digital ecosystem. Huawei has fostered a thriving 5G industry with global carriers and partners. They aim to pave the way for the next leap, 5.5G. With the rapid advancement of the intelligent world, ICT technologies like 5G, cloud, and AI are accelerating digital transformation for businesses and enabling new growth opportunities for carriers and other stakeholders.
Programmatic Ad Fraud Relevance
In the ever-evolving landscape of programmatic advertising, programmatic ad fraud (General Invalid Traffic – GIVT and Sophisticated Invalid Traffic – SIVT) has emerged as a significant trend in Q3 2023. Ad fraud remains a persistent and highly relevant issue, with security threats constantly evolving rapidly.
Programmatic ad fraud occurs when fraudsters exploit the real-time bidding process to generate fake impressions or clicks on ads. They achieve this by manipulating bid rates or introducing fraudulent ad tags during the bidding process. The types of fraud are diverse and continually growing in complexity, including spoofing ads.txt files, cookie syncing, domain chaining, misrepresented traffic, audio SSAI falsification, click fraud, invisible ads, app install fraud, SDK spoofing, ad laundering, bot traffic, and more. It is necessary to stay sharp and adapt to the evolving nature of these fraudulent practices.
Fussing about Third-Party Cookies
Throughout the first half of 2023, constant talk has been about canceling third-party cookies. Many publishers rely on third-party cookies to gather user data and generate revenue through targeted advertising. However, due to privacy concerns and increased regulations, several web browsers and tech companies have started to limit or eliminate support for third-party cookies. This shift has significant implications for publishers, as they may lose access to valuable data and face challenges in delivering personalized content and targeted ads to their audience.
Research indicates that almost two-thirds of publishers believe they will experience negative consequences or disadvantages due to the demise of third-party cookies. It refers to concerns about reduced advertising effectiveness, decreased revenue streams, and the need to find alternative audience targeting and measurement methods. It highlights the perceived impact on publishers’ ability to deliver personalized experiences and monetize their content effectively.
The Relevance of AI Media-Buying On Platforms
AI media-buying on platforms is highly relevant due to its capacity to utilize data-driven insights, automate processes, customize ad experiences, and enhance campaign performance. The Trade Desk’s introduction of Kokai exemplifies an effective use of AI in media buying on platforms. This innovative approach to digital advertising incorporates notable advancements in distributed artificial intelligence (AI), measurement techniques, partner integrations, and an intuitive user interface. Through these groundbreaking innovations, Kokai ensures that marketers at various levels can effortlessly harness the full power and sophistication of programmatic advertising.
Kokai significantly advances programmatic AI by deploying deep learning algorithms throughout the digital media buying process. With access to over 13 million advertising impressions per second, each encompassing numerous distinct signals, Kokai’s AI advancements are a collaborative tool for programmatic marketers. By swiftly deciphering this complexity within milliseconds, Kokai aids advertisers in purchasing the appropriate ad impressions at the optimal price and time to target their desired audience effectively. As the advertising landscape evolves, AI becomes increasingly crucial in enabling advertisers to connect efficiently with their target audience, optimize their ad expenditures, and attain their marketing objectives.
In conclusion, the programmatic advertising industry has seen significant trends in 2023:
- Global CTV advertising and in-app advertising continue to grow.
- Digital audio advertising and white-label programmatic platforms have gained prominence.
- 5G optimization enhances customer experiences.
- Programmatic ad fraud remains a challenge.
- The elimination of third-party cookies poses challenges for publishers.
- AI media-buying on platforms is vital in leveraging data-driven insights and enhancing campaign performance.
These trends and advancements will continue to shape the programmatic advertising industry, driving marketers to embrace new technologies and strategies to maximize their advertising efforts and achieve optimal results. To thrive in this dynamic landscape, advertisers need to embrace agility, adapt to emerging trends, and harness the power of AI.
Stay up to date with our company news
13 September 2023
Digital out-of-home advertising has emerged as a potent and efficient tool for agencies, elevating their advertising endeavors while captivating consumers through distinct and compelling means. In contrast to conventional static billboards and posters, DOOH strategically employs digital displays positioned in public spaces to disseminate dynamic and precisely targeted content. Among […]
29 August 2023
In the past year, we demonstrated the advantages both publishers and advertisers can gain during the Black Friday, Halloween, and Christmas Eve seasons. We offered insights on optimizing budget planning and achieving substantial revenues. Thanksgiving festivities in 2023 are closer than we can think, so we are eager to provide […]
23 August 2023
We have previously touched upon the topics of video completion rate and defined what the VCR is. In this article, we have reviewed projections indicating the dominance of video ads in programmatic ad spend by 2022. Fueled by platforms like TikTok and Reels, it becomes increasingly crucial to increase the […]