Attending this month’s Digiday Programmatic Marketing Summit in Nashville gave me a front-row seat to the conversations shaping the future of programmatic advertising. The event highlighted our industry's pressing challenges, underscoring the shared commitment to innovation, transparency, and rethinking traditional approaches to improve outcomes for both brands and audiences. Below, I share three key themes that stood out to me and the impact they will have on our industry’s future.
1. The Future of Supply Path Optimization (SPO)
SPO is advancing from version 2.0 to 3.0, shifting from data aggregation to refined analysis. Agencies are rethinking their SPO strategies to ensure transparency, brand safety, and better alignment with client goals. For instance, VaynerMedia's 2025 goal is to conduct regular SPO check-ins and ensure partnerships meet these standards. In this phase, it is essential to differentiate between supply-side platforms (SSPs) like PubMatic, OpenX, and Magnite, emphasizing transparency, control, and direct access. The challenge lies in finding partners who can drive performance efficiently while meeting these standards.
2. Incrementality Testing and CTV Measurement
Incrementality testing is gaining importance, especially in CTV, where measuring the direct impact of ad spend is more challenging. Marketing Mix Models (MMM) and deterministic data help understand the overall contribution of different channels. Incrementality testing is critical to ensure that ad spend is effectively driving results. This shift is key for advertisers looking to optimize their investments in response to evolving media consumption habits.
3. The Changing Landscape of Data and Privacy
With the end of third-party cookies and increasing privacy concerns, ad tech is shifting toward deterministic identifiers and first-party data strategies. As states introduce individual privacy regulations, brands must also adapt their data collection and usage strategies. The focus will be on consent-based data collection and maintaining data hygiene to avoid inefficiencies that could lead to wasted advertising dollars. It was noted by Dr. Alvin Glay, Chief Strategy Officer at Response Media, that brands could waste upwards of a million dollars due to poor data practices. Though the exact timeframe for this loss remains unclear, the potential for significant financial waste is real. Real-time data processing and ensuring compliance will be vital for effective data strategies.
As we move into 2025, adaptability will be crucial. Whether refining SPO strategies, leveraging AI to build resilient tech stacks, improving incrementality testing, or shifting to privacy-first data strategies, forward-thinking agencies and brands anticipating these changes will be well-positioned for success.
Cognitiv’s ContextGPT™ represents the future of contextual advertising—privacy-safe, scalable, and powered by deep learning. By leveraging large language models (LLMs), ContextGPT offers nuanced targeting beyond traditional keyword-based solutions, enabling brands to reach their audience in the right context, at the right moment, without sacrificing scale.
Looking ahead to 2025, we are excited to help brands navigate these changes and achieve their marketing goals. Reach out to me to learn more about how Cognitiv can drive your programmatic advertising success in the year ahead.