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Report Shows 60% of Advertisers Prioritize Enhancing Brand Safety

The Future of Programmatic Advertising: Navigating the Cookie-Diminished Environment

WARC, in collaboration with NewtonX, a B2B market research firm, has recently released a comprehensive report titled ‚The Future of Programmatic 2024‘. This report sheds light on the trends and challenges that are expected to shape the programmatic advertising industry in the coming year. Based on a survey of 100 programmatic experts conducted in July 2024, the report outlines pressing issues that the industry must address to optimize performance and effectiveness.

One of the key highlights of the report is the impact of Google’s decision to phase out third-party cookies from the advertising ecosystem. While this move represents a significant shift towards a privacy-first environment, it also poses challenges for advertisers and agencies. The report emphasizes the need for advanced first-party data strategies and proactive measures to navigate the cookie-diminished advertising landscape.

Brand safety emerges as a top concern for advertisers and agencies, with over 60% of survey respondents citing it as their primary worry in programmatic advertising. Despite programmatic channels accounting for a significant portion of digital ad spend, there is widespread dissatisfaction regarding the quality of ad placements. Advertisers are increasingly frustrated by low-quality ads that compromise brand safety. To address these concerns, 56% of respondents have identified enhanced advertising verification capabilities as a crucial area of focus.

The industry’s adaptation to a post-cookie world remains a challenge, with only 25% of survey participants believing that progress is adequate in adapting to this shift. To counteract the effects of signal loss on targeting and measurement, more than 75% of respondents are investing in first-party data strategies. This shift towards first-party data is seen as the most promising solution for future success in a cookie-diminished environment.

Transparency in the programmatic supply chain continues to be a major issue, with ad fraud and wastage remaining prevalent. Despite this, less than half of advertisers have established direct contracts or taken necessary measures to audit ad quality. There is a clear call for collective action to address these transparency issues and clean up the media supply chain.

Sustainability is another area where the industry is lagging, with programmatic advertising contributing to significant carbon emissions. However, nearly 60% of surveyed agencies and advertisers do not prioritize reducing these emissions. The lack of industry-wide standards and knowledge gaps are cited as barriers to effective emissions reduction.

Investment patterns are also shifting, with a noticeable decrease in open web spending as advertisers focus more on walled gardens. Social media and gaming are anticipated to see the largest increases in programmatic investment. This shift highlights the need for advertisers to adapt their strategies to align with changing consumer behavior and platform preferences.

In conclusion, the programmatic advertising industry is facing a period of significant change and challenges. Advertisers and agencies must prioritize brand safety, adapt to a cookie-diminished environment, address transparency issues, and focus on sustainability to ensure long-term success in the evolving digital landscape. By embracing advanced first-party data strategies and proactive measures, industry players can navigate the complexities of the programmatic advertising ecosystem and drive meaningful results for their campaigns.

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