5 trends of programmatic advertising in 2021

2021 programmatic advertising

New year, new trends. Although many companies paused their advertising at the beginning of 2020 due to financial uncertainty, the flexibility of programmatic advertising allowed them to grow back again.

It sees a 36% rise in ads from January to July 2020, reaching the level before the pandemic. Industries of all sizes, especially SMEs, are increasingly moving towards programmatic advertising.

Of course, especially companies that offer certain online services or products that you can consume or use at home like media, entertainment, education & training, home furnishings, increased their programmatic ad spend.

Other industries like travel, retail, tourism rather reduced their ad spend since they were harder impacted. But as we see local opportunities for them, we formulated some suggestions about how to promote their local business online in another blog post.

Since we entered in 2021, it is important to know the new trends in programmatic advertising and take advantage of them:

programmatic advertising

In-house programmatic

The trend of in-house programmatic is increasing since more brands feel the need to directly control their campaigns. This will drastically change the relationship a company has with its media agency.

We have already talked about moving programmatic in-house in a precedent blog post. On the one hand, you have a higher control and more transparency, but on the other hand, it requires significant investments. So, you have to make sure that this process will really outweigh the costs.

Building your own programmatic platform, for example, will cost you not only money but also much time. You need to keep up to date will all the innovations and be always a step forward from your competitors.

Moreover, you need to develop your fraud prevention system. Also, this one needs to be constantly updated since fraudsters will always try to find a way to steal your money.

With the shift to in-house programmatic, agencies and SaaS platforms need to reinvent themselves by offering more control and transparency to the advertiser.

But there are already SaaS platforms, like Adello Direct, which are simple to use, have low cost, and you can manage your budget efficiently. The platform must also have ad fraud prevention, like AdCTRL, to avoid unnecessary additional costs to your ad campaign. In this way, you can get the transparency in your spending that you were seeking with in-house programmatic by using less money.

Make sure to choose an agency that can offer you these features, and you will spare money and time 😉.

Avoid heavy ads

It is of great importance to keep optimizing the quality of the ads.

For example, Chrome will not display heavy ads to ensure a better user experience. Those ads that use more than 4MB of network data, or more than 15 seconds of CPU for 30 seconds, or 60 seconds of CPU in total, will not be uploaded.

A few ad platforms, like Adello Direct, make sure that your ad is ready to be displayed on the network and so being seen by the right users.

You have to be aware that, ideally, your standard banner should not be heavier than 120 KB. Otherwise, there is the risk that it will upload so slowly that the user will have probably already scrolled down before its full appearance. So you will pay for ads that no one sees.

The image should not only be too heavy, but it also needs to be displayed clearly. For this reason, we suggest to produce it in a double resolution.

After following these suggestions, you will have a clear, optimized ad. Check out the ultimate creative guide to see how to improve your ad creatives.

Mobile advertising

Third-party cookies

Third-party cookies will no longer be available on Chrome by 2022 to enhance consumer control and transparency. This choice is completely legit since there are, unfortunately, many malicious third-party cookies that are ready to trade your personal data and identity.

To guarantee user privacy, it is necessary to provide anonymous tracking. In the end, there is no need for an advertiser to know users’ names and addresses. You can effectively do advertising just with pseudonyms.

For example, Android and iOS generate pseudonyms in the form of Advertising IDs, and users can express their dissent with this form of tracking if they would like to. In this way, advertisers can still reach their goals, while the users’ personal identity is protected.

If you have not already done that, it is essential to react now and develop strategies in 2021 for programmatic advertising. But there is no need to panic. You can successfully run advertising campaigns without cookies.

The most advanced DSPs and ad exchanges already have a solution that can help you reach out to the right audience 😉.

Rise in investments

Investments in programmatic advertisement rise every year. Just to give you an idea, in 2020 half of the publishers sold more than 81% of their inventory, and half of the agencies purchased more than 41% of their video programmatically (+50% compared to 2019).

Publishers prefer programmatic since they deliver a higher success than direct buys. 50% of videos and 77% of the display was traded programmatically in 2020. Why? Because of data, efficient targeting, lower brand risks, and viewability.

For example, we see the risks of unsafe placements going down to 5.6% for mobile web videos compared to the beginning of 2020. Or, compared to H2 2019, viewable impressions for mobile app display increased to 73%.

This means it is a good idea for your company to assign a budget for programmatic advertising today.

Use new emerging formats

Every year we see new ad emerging formats. It is important to be always up to date with new creatives and not looking old-fashioned. Especially if you want to win clients of the new generations.

These kinds of ads are usually more interactive and use, for example, VR or 360° models. Imagine, for example, being able to enter virtually a showroom and have a look at cars also from the inside. Or virtually enter a phone shop and being able to rotate and see all features of the mobile phone you would like to buy.

Interactive ads can also be really emotional. Imagine being put in a reconstructed scene of a movie or series and being able to explore the space around you.

If you want to try out some of them, have a look at our creative gallery here.

Creative ads

2021 will be a year of new opportunities for programmatic advertising. Are you ready to take advantage of it and increase your sales?

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