Trends in Programmatic Advertising: Q2 2024 Outlook

As the second quarter of 2024 approaches, the industry continues to undergo a series of changes.

One of the significant recent trends has been the continued growth of programmatic video. This dynamic and engaging format not only helps to capture user attention but also assists advertisers in better conveying their messages.

Alongside the increasing prevalence of direct and curated deals, advertisers gain access to premium, guaranteed inventory, while publishers benefit from more stable revenue sources. This mutual advantage enables more confident budget planning and the achievement of financial goals. It's worth noting the trend towards a clearer distinction between in-stream and out-stream advertising. Ignoring this trend may lead to a decline in video ad revenue, especially if you work with monetizers outside of Russia.

With the continued development of privacy regulations, further expansion of the use of 1st party cookies is expected. Publishers and advertisers will be more actively investing in artificial intelligence and machine learning to gain a better understanding of the audience without relying on third-party cookies. However, advertisers are not yet ready to overpay for user data.

Furthermore, with the gradual phasing out of third-party cookies, a gradual shift towards contextual advertising and the increased use of privacy-focused solutions is expected.

Another important innovation will be server-side bidding. The growing interest in this technology is possible due to its ability to optimize ad call operations, addressing the latency issue present in the more prevalent client-side technology. This technology also enhances user experience by reducing the load on the user's device and internet, thereby offering smoother content consumption.

Despite all the new technologies, small publishers face challenges. The competitive advantages of large publishers, capable of attracting direct deals, may weaken the positions of smaller platforms. To avoid revenue issues, these publishers should more actively engage with niche content or specialized content that attracts the interest of specific advertisers.

Overall, in the second quarter of 2024, it appears that trends towards increased efficiency, improved user experience, and strengthened deal control in programmatic will persist. As the advertising market evolves, remaining flexible and informed will be critically important for all participants in the advertising technology ecosystem.