The future of programmatic advertising: trends for 2025

As programmatic advertising strategies become increasingly sophisticated, businesses embrace new practices and trends that boost the domain dramatically. No wonder that the programmatic ad market is expected to reach a staggering US$ 370.12 by 2034, showing a compound annual growth rate of 30.1%. To remain competitive in this domain, businesses should focus on trends and new opportunities to maximize their efficiency and ROI.

But what are the key trends in the industry and why should you consider them?

This article explores the latest developments shaping the future of programmatic advertising, from the rise of cookieless targeting and AI-driven automation to white-label adtech solutions. You'll gain insights into how these changes will affect ad buying, audience targeting, and campaign optimization. Whether you're a marketer, advertiser, or business leader, this guide will help you navigate the evolving landscape, stay competitive, and make data-driven decisions.

What is programmatic advertising?

In brief, programmatic advertising is currently the most popular and efficient practice for digital marketing. It involves automated buying and selling of digital ad space using AI and real-time bidding. While traditionally, advertising was organized through negotiations, programmatic platforms streamline these processes. The creation of ads, their distribution, placement, and targeting - all these processes can be automated with the right approach. Through efficient mechanics for contextual targeting, this technology maximizes return on investment from digital marketing campaigns.

In addition, such an approach helps marketers make more informed decisions by analyzing vast amounts of user data received from the campaigns. It often involves using analytical tools that retrieve analytical data on user preferences, behaviors, and pain points. But let's not get ahead of ourselves — let's dive into the main part of this article and explore key programmatic advertising trends in detail.

10 Key trends shaping the future of programmatic advertising

Just like any other domain, digital programmatic advertising is largely affected by the current conditions. In particular, such factors as political instability, the growth of cyber threats, emerging technologies, and social concerns affect the industry in many ways. As a result, we may witness the following trends in programmatic advertising. 

1. The rise of in-house programmatic campaigns

A decade ago, only a handful of businesses managed their own programmatic ad buying. Today, in-housing is a dominant trend. In particular, by 2021, 68% of marketing agencies had been running their in-house programmatic advertising models. The point is that such an approach gives businesses a greater level of control over their marketing efforts. With an internal team, companies can run their operations with more transparency and refine targeting strategies based on campaign performance.

It is also important to mention the fact that privacy and security regulations become increasingly relevant in the adtech domain. Some businesses hesitate to delegate their data-driven ad campaigns to vendors. By building their own programmatic adtech software or relying on tried and trusted advertising solutions, companies aim to handle their campaigns by themselves.

It is important to mention that in-house programmatic campaigns require significant investment in talent, technology, and training. Many brands opt for a hybrid approach. They use both in-house expertise and external agencies to navigate the complexities of modern digital advertising.

2. The decline of third-party cookies and the shift to first-party data

For quite a long time, third-party cookies had been an essential aspect of digital advertising. However, modern adtech trends make them less relevant. With the growing importance of various privacy-related regulations, such as the California Privacy Act and GDPR, marketers need to search for alternatives.

In such conditions, many marketers rely on Google's Topics API, a solution that categorizes users into interest groups without tracking individuals. Another popular alternative is using Unified ID 2.0 (UID2), which allows advertisers to collect consent-based identifiers like email addresses.  

However, one of the most popular solutions is relying on Customer Data Platforms (CDPs) and CRM systems that allow companies to collect first-party data. While first-party data offers greater accuracy and compliance benefits, it also requires brands to foster direct relationships with consumers. To build user trust, companies need to personalize their content, launch loyalty programs, and transparent data-sharing agreements.

3. The rise of connected TV (CTV) advertising

By the end of this year, the global CTV advertising market is expected to reach $33.35 billion, which makes it one of the most important programmatic ad trends. The key benefit of such an approach is the ability to reach broader audiences and deliver personalized content based on the users' watching habits. The rapid development of this domain is also fueled by the rise of streaming services like Netflix, Hulu, and Disney+. As streaming platforms introduce ad-supported models, advertisers gain access to premium inventory with precise targeting capabilities.

Analytics matter everything in the domain of CTV advertising. Brands can use data-driven insights to optimize their campaigns upon their launch. In addition, CTV's targeting options include household demographics, behavioral data, and even cross-device retargeting. Overall, a company that leverages a data-driven approach properly can achieve great success through CTV advertising. This requires adapting to new measurement standards, analyzing various metrics, and optimizing campaigns for viewability, engagement, and ROI.

4. The resurgence of digital out-of-home (DOOH) advertising

The COVID-19 pandemic has brought us a significant decline in DOOH advertising. However, the post-pandemic times gave a new breath to the development of digital out-of-home ad campaigns. No wonder that this market is growing at a compound annual growth rate of 13.20%. More and more brands are reinventing the marketing potential of digital billboards, transit ads, digital advertising kiosks, and interactive screens placed in different locations.

The most important advantages of DOOH advertising are :

• Broad audience reach, as ads can be displayed in high-traffic areas, ensuring visibility

• Seamless and unobtrusive placements of ads that reduce disruption

• Resistance to ad blockers, which is a critical advantage of DOOH advertising over traditional digital display ads.

In a cookieless world, contextual targeting in DOOH will become even more critical for delivering impactful messages in real time. In addition, a data-driven approach can be applied to DOOH advertising as well. By using AI-powered insights marketers can optimize campaigns and ensure more efficient targeting and ad personalization.

5. The expansion of white-label adtech solutions

To gain better control over their programmatic campaigns, more and more companies are using white-label adtech software. Typically, those are the platforms that offer greater automation and precision for advertising campaigns. Such tools also offer advertisers and publishers greater control over their workflows and inventories.

White-label solutions often include demand-side platforms (DSPs) and supply-side platforms (SSPs). While DSPs are primarily used by advertisers willing to purchase and manage their ad inventory, SSPs are used by publishers delivering their ads to the advertisers. Both technologies deserve to be explored in more detail.

DSPs allow advertisers to automate the process of buying digital ad space, and optimizing ad placements based on real-time bidding (RTB) strategies. Such solutions provide tools for granular audience targeting, budget control, and performance tracking. Advertisers can integrate DSPs with various data management platforms. This approach allows them to efficiently manage first-party and third-party data in order to refine audience segmentation and achieve greater precision in terms of ad placements.

When it comes to SSPs, those are the platforms that enable publishers to maximize revenue by selling their available ad space to multiple advertisers. The key benefits of SSPs are the ability to automate digital ad inventory and features for more precise delivery of such materials. By connecting to multiple DSPs and ad exchanges, SSPs help publishers increase competition for their inventory, driving up ad prices and ensuring better monetization. Supply-side platforms also often include such features as ad quality control, fraud prevention, and advanced reporting. All such functionality can help publishers enhance their operations dramatically.

While DSPs and SSPs are the primary drivers of the programmatic advertising landscape, those are not the only white-label solutions reshaping the digital marketing domain. In particular, we can mention ad exchange platforms. Such solutions act as intermediaries between DSPs and SSPs, creating a marketplace where ad inventory is bought and sold in real time. Such solutions facilitate transparent transactions and ensure that both advertisers and publishers achieve optimal value. The combination of DSPs, SSPs, and ad exchanges streamlines different components of programmatic advertising, making the process more efficient and scalable for all stakeholders.

Many companies opt for their custom adtech solution tailored to their needs. However, building such a platform might be a challenging task that requires much time, effort, and investment. A very common alternative is relying on white-label software-as-a-service (SaaS) solutions. Such apps offer a flexible, cost-effective alternative off the shelf. With improved transparency, enhanced targeting capabilities, and efficient budget allocation, white-label adtech solutions are increasingly becoming the go-to choice for advertisers and publishers.

6. The growing importance of programmatic audio advertising

Just like video streaming platforms like Hulu and Netflix enhance the CTV advertising market, music streaming platforms like Spotify, YouTube Music, and SoundCloud bring a significant push to the development of programmatic audio advertising. Here it goes about delivering personalized ads to the users of musical services and podcast audiences.

Programmatic audio allows advertisers to buy targeted ad inventory across multiple devices, including:

• Smartphones

• Tablets

• Smart speakers

• Laptops.

One of the key benefits of such an approach is the ability to reach the audience in a more immersive way. Many people listen to podcasts or music albums while remaining focused on their daily routines. Digital audio advertising allows marketers to reach such potential customers at any time and any place. In addition, programmatic audio advertising is resistant to ad-blocking technologies and offers excellent opportunities for precise user targeting.

Advertisers already broadly implement platforms that automate digital audio advertising. Such solutions provide features like real-time bidding, precise audience segmentation, and seamless integration with other digital channels. Some brands also experiment with interactive voice ads that allow users to respond to ad prompts using voice commands.

7. Contextual targeting as a privacy-first alternative

The above-mentioned privacy regulations create new limitations for behavioral user tracking. In such conditions, contextual advertising is regaining prominence. Traditional targeting practices rely on user data, which might compromise privacy standards. Meanwhile, contextual targeting places ads based on webpage content. This ensures a relevant approach that doesn't compromise user privacy.

A comprehensive approach to contextual advertising ensures excellent user experience by reducing irrelevant ads and combating banner blindness. Brands that invest in AI-powered contextual analysis can improve ad relevance and effectiveness. All while maintaining compliance with evolving privacy regulations.

8. Continuous development of programmatic video advertising

Programmatic video advertising continues to be a dominant force in the digital marketing domain. This steady growth can be proved by statistical insights. In particular, the digital video advertising market size is expected to reach $47.62 billion by 2033 from $14.20 billion in 2025.

With automated buying becoming the norm, advertisers focus on:

• Delivering interactive and shoppable video ads that drive consumer action through in-ad shopping features

• Production of engaging visuals and storytelling of the highest quality

• Optimized video placements across multiple platforms helping to reach audiences on CTV, social media, mobile apps, and other platforms.

The integration of AI and machine learning in video ad buying is also improving the personalization and performance of programmatic video advertising.

9. Mobile gaming ads as an emerging advertising powerhouse

Mobile gaming develops at an impressive pace, as many mobile games can already match the ones running on modern computers and gaming consoles. For many companies, mobile gaming is the future of programmatic advertising. We can distinguish:

• Rewarded ads that offer in-game perks in exchange for ad engagement

• Banner ads within game interfaces

• Interactive and playable ads that allow users to experience products through mini-game formats.

As 5G networks expand, the mobile gaming ecosystem will offer even more sophisticated ad placement opportunities. The rise of cloud gaming and augmented reality (AR) will further enhance how brands connect with gaming audiences in the future.

10. Continuous growth of programmatic advertising technologies for mobile

According to recent estimates, there are 5.78 billion active mobile users globally. In such conditions, mobile programmatic advertising offers unmatched opportunities for reaching broad audiences. No wonder that many digital advertising campaigns are based on mobile-first strategies. A crucial component of mobile programmatic advertising is the use of advertising software development kits (SDKs). These are sets of tools that allow developers to integrate ad placements seamlessly within mobile applications.

Such advertising SDKs allow developers to display various ad formats, including banner ads, interstitial ads, rewarded video ads, and native ads. Some of the key benefits of such SDKs are:

• Seamless monetization: advertising SDKs allow developers to integrate ads easily into their apps, creating multiple monetization streams without compromising user experience.

• Ad mediation: Many advertising SDKs feature mediation capabilities that allow apps to connect with multiple ad networks simultaneously.

• Advanced targeting and analytics: advertising SDKs offer precise audience segmentation, behavioral insights, and real-time reporting for improved user targeting.

• Cross-platform compatibility: Many advertising mobile SDKs support both iOS and Android devices, ensuring broad reach across different operating systems and devices.

It is also important to mention that various technologies boost the efficiency of such advertising SDKs. With innovations such as AI-driven ad optimization and contextual targeting, SDKs will help advertisers and publishers gain greater efficiency in digital programmatic advertising.

Consider TeqBlaze your trusted partner

Regardless of the programmatic advertising market trends you want to use, TeqBlaze is ready to help. We have vast experience in the industry, and we constantly monitor innovations, standards, and trends to deliver great value to our customers. Our team understands the power of new technologies. That's why we are always ready to deliver the most innovative solutions to our clients. For example, we provided the company dedicated to offering innovative contextual targeting with a highly efficient White-Label DSP + SSP bundle. This system allows the customer to automate many advertising processes. In addition, it provides advanced contextual intelligence and support for innovative ad formats, boosting adaptability and effectiveness in the digital advertising market. 

We also leveraged our knowledge of the latest market trends to help a dynamic monetization firm that specializes in providing comprehensive market insights and precision-targeted advertising. We provided them with comprehensive support at different operational levels to help the client boost their performance in the digital advertising industry. Moreover, we are ready to help you navigate other challenges of the market with our product development services and a special suite of services that can be tailored to the needs of any of our customers.

Final word

Programmatic advertising is one of those domains where innovations and new trends can emerge each day. To stay competitive in this industry, you need to embrace trends shaping the future of programmatic advertising. Whether through white-label adtech solutions, mobile SDKs, CTV, or programmatic audio, brands can find great opportunities to keep ahead of the competition. To implement such innovations properly, you need assistance from experienced partners. Contact TeqBlaze and discuss your needs and opportunities to take your digital advertising campaigns to the next level.