What does 2022 hold for us?

The year 2021 saw a drastic increase in programmatic ad spend as the industry continued to grow worldwide. According to one study, programmatic buying reached nearly $455 billion in ad spend in 2021 as more advertisers seek to achieve better results.

The future of programmatic advertising is exciting as the industry will continue to grow with estimated ad spend expected to accelerate to nearly $524.31 billion in 2022. As the world of programmatic advertising moves towards major changes, what does 2022 really hold in store for us?

1. Supply Path Optimization (SPO)

Although SPO has been around for a while, it has only recently gained popularity. The SPO will be a major axis in 2022 because it simplifies the supply chain between advertisers and the various publishers, who would otherwise have intermediaries.

SPO allows buyers to streamline their partners to access inventory. By giving media buyers the ability to bid and win inventory at the most reasonable price, SPO enables publishers to maximize their long-term revenue.

2. Demand Path Optimization (DPO)

Unlike the SPO, the DPO aims to recognize the buying factor of impressions instead of selling. The DPO, if combined well with the SPO, can actually help advertisers establish better terms and transparency with the brands/companies they can potentially buy ads from.

DPO offers the ultimate win-win situation for publishers by increasing revenue and reducing risk from ad tech vendors, becoming a trend to watch in the coming year.

3. Programmatic Audio

As the name suggests, this is the use of programmatic advertising technology that automates the sale and insertion of advertisements into audio content using a process very similar to display advertising. This is done through podcasts, digital radio and/or music streaming services.

Last year saw an increase in digital audio with a weekly increase in podcast listening of 17% since last year. Spotify has seen a 30% increase in ad-supported monthly active users since last year, reaffirming the belief that audio could be the new video.

The year 2022 will see a huge increase in programmatic audio due to growing interest from publishers and the availability of the right technology and standards to deliver it.

4. Rise of contextual advertising

Contextual advertising makes it possible to match the content of the web page with that of the ad. This focuses on creating a seamless user experience by focusing on screen content rather than individual users.

As data privacy laws become more stringent, contextual advertising is set to gain popularity as it solves all personal data issues. The coming year should see an increase in contextual advertising with more effective deployment, better metrics and insights.

5. A world without cookies

Google’s plans to stop supporting third-party cookies by the end of 2023 will end nearly two decades of data-driven, performance-targeted advertising.

The industry has taken the first step towards a cookie-free world, with brands and marketers now working on user-centric solutions that drive results while focusing on privacy regulations. This will cause substantial disruption in the industry, with a focus on content-based advertising instead of focusing on cookies.

It’s clear that 2022 could prove to be an exciting year for the industry, with change and disruption in every possible way. It could really define how the industry progresses.

What could really be the most defining trend for the future of programmatic advertising is the journey to a world without cookies. This journey will be driven by focusing on the data marketers already have and use that data to create opportunities and deliver personalized, relevant experiences to the right users.

Edited by Teja Lele Desai

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

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