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privacy-forward targeting
programmatic and expanded opportunities
in 2022
The state of
programmatic
in 2022
Programmatic marketing — digital even larger and expanding share of The report also contains expert
media ads purchased and ads placed marketers’ budgets and efforts. insights highlighting the trends and
through the SSP/DSP real-time In this state of the industry report, transformations underway — valuable
ecosystem — is in a state of evolution. Digiday and AdTheorent explore these for marketing teams planning their
Following the pandemic, marketing changes and more, surveying 64 programmatic strategies for 2023 and
teams increasingly turned to brands and agencies. beyond.
programmatic to better reach and
engage audiences at scale. Now, their This report highlights how advertisers
attention and allocation to this method have been reassessing resources,
have entered a new phase of growth budgets and approaches and how
and importance — representing an they plan to do so in the future.
What’s in this
How privacy restrictions
report: and regulations are evolving
in the programmatic space
01
The programmatic mix:
Budgets and channels in
2023
21%-40% 29%
25%
1%-20% 29%
14%
0% 0%
0%
I don’t know 6%
12%
02
Additionally, as more marketers Q. One year from now, when it comes to the following
purchase ads through programmatic channels, please describe how much of your monthly
methods, they’re also adding programmatic budget you expect to allocate to each.
channels to their mix to reach
consumers where they’re spending OOH Linear TV CTV/OTT Audio Mobile
time across a variety of devices. As a
result, some channels have gained 80%-100% 0%
more attention than others. 2%
2%
CTV and over-the-top (OTT)
0%
streaming TV ads have gained
4%
momentum, with more marketers
purchasing ads in this space and
seeking to use it as a lower-funnel 61%-79% 6%
tactic or as part of a full-funnel 2%
strategy rather than just an upper-
4%
funnel or awareness-only tool. In fact,
4%
31% of respondents are allocating
20%
between 21% and 40% of their
monthly budgets to CTV/OTT, 29% are
allotting between 1% and 20%, and 41%-60% 6%
18% are spending between 41% and 10%
60%. Meanwhile, 62% of respondents 18%
are spending 20% or less of their 6%
budgets on linear TV. 28%
1%-20% 56%
Less traditional channels are gaining
31%
traction as well. Fifty-six percent of
respondents are allocating between 29%
1% and 20% of their monthly 44%
programmatic budgets to out-of- 8%
home (OOH), while 44% are
allocating 1%–20% to audio.
0% 14%
31%
6%
12%
6%
I don’t know 8%
9%
10%
10%
10%
03
Marketer interest in
programmatic is higher
than direct-sold inventory
For marketing teams, 2022 has been a Q. Compared to direct-sold inventory, how has the
time of format diversification as importance of programmatic in your marketing
advertisers increasingly tested and strategy changed over the past 12 months?
implemented cookieless solutions.
The urgency shifted into higher gear,
especially at the start of the year, prior Much more important 23%
to Google’s announced deadline
extension in July, helping drive growth
in programmatic offerings. Overall,
More important 44%
marketers are demanding that
programmatic must drive quantifiable
business outcomes and advertiser ROI.
Equally important 27%
04
Respondents also indicated a Q. How much of your programmatic budget is allocated
slight preference for self-service to managed platforms and how much is allocated to self-
programmatic solutions, with 63% of serve platforms?
survey respondents allocating 41%–
100% of their programmatic budget
to self-serve and 51% of respondents Managed service Self-serve
allocating 41%–100% to managed
programmatic solutions.
80%-100% 11%
25%
61%-79% 15%
19%
41%-60% 25%
19%
21%-40% 13%
19%
1%-20% 15%
10%
0% 15%
2%
I don’t know 6%
6%
“We choose to buy media The same buying teams work on 75%
programmatically so that we can spending across multiple platforms
control for comprehensive
frequency management and
Spend is automated across platforms 10%
greater fluidity between tactics, as
with minimal human involvement
well as real-time optimization and
reporting,” said Mary O’Brien,
programmatic director at PMG,
Other 0%
providing an example in a recent
interview.
05
The challenges on marketers’
minds: Measurement
accuracy and performance
With the privacy landscape still in concerns continue to loom. One of the will somewhat decrease over the next
flux, there are varying views about industry’s primary concerns is year, and 31% indicated
the ways in which marketers expect how the performance accuracy of measurement accuracy will
their campaigns to be affected. As programmatic campaigns will be somewhat decrease. While it’s clear
teams work to refine and evolve affected within the next year. that accuracy is a top concern
their programmatic strategies and moving into 2023, more than half of
adopt new technology-powered In this survey, 40% of the respondents advertisers believe that these aspects
tactics and advertising channels said they expect the performance will represent no change or an
to maximize performance, privacy accuracy of programmatic campaigns increase in accuracy anytime soon.
No change 26%
40%
Somewhat decrease
6%
Significantly decrease
Measurement 4%
20%
27%
31%
18%
It remains to be seen how teams
will balance the changes amid
scale, targeting, measurement and
Scale 6%
performance in the year to come.
26%
Successful marketers are already
working to better prepare for future 34%
privacy changes, including testing 28%
non-ID-based solutions, to soften some
6%
of the anticipated signal-loss expected
in a post-cookie world.
06
Embracing
automation to
For privacy and
combat signal loss
programmatic, next steps
Marketers are facing challenges mean more education
around signal loss with the impending
deprecation of cookies from Chrome
in 2024 — not to mention that they’ve
long been gone from Safari and Firefox Privacy-forward solutions are respondents (53%) are developing
— in addition to ad identifier restrictions very much on the minds of or partnering for contextual
with Apple’s ATT. programmatic marketers. targeting solutions to complement
behavioral targeting. One write-in
As the concerns around measurement A majority of respondents (67%) response for “other” mentioned
accuracy and scale develop, advertisers are developing or partnering implementing server-to-server
are looking for tools to assist them in with providers not dependent tracking.
their evolution beyond traditional ID- on PII for targeting to adapt to
based solutions, such as AI and ML. ongoing privacy restrictions. Most
And, for those who’ve relied heavily on Developing or partnering with 67%
cookies in the past, automation is crucial. providers not dependent on
personal data for targeting (i.e.,
“Traditionally, we’ve relied heavily on machine learning, predictive
cookies for programmatic targeting that does not rely on
measurement,” she said. “But now we’re cookies or PII)
diversifying our measurement approach
into solutions like incrementality testing Developing or partnering for 53%
and media mix modeling. Other than contextual targeting solutions to
that, we’re making sure we aren’t overly complement behavioral targeting
reliant on one approach should
legislation impact that buy or platform as
policies change over time.”
Developing or partnering for first 49%
Regarding Google’s latest cookie party solutions such as site sign-ins
deprecation announcement, Lawson and email newsletters
advised a positive and consumer-focused
approach: “Marketers shouldn’t be sitting
around waiting for Google to tell them
what they should or shouldn’t be doing. Privacy changes are not 10%
Marketers should already be testing impacting our programmatic
privacy-forward solutions. There are strategy
highly-effective ways to leverage the
benefits of digital advertising
while respecting consumer privacy. It’s
unnecessary to chase specific user IDs Other 2%
around the internet because statistics
can replace individual IDs to drive
valuable business outcomes.” 07
The way forward when it comes to
privacy begins with asking the right
explore non-ID solutions such as
predictive advertising, which relies
Privacy
questions and challenging broken upon statistics in lieu of individual preparedness
premises. behaviors and user IDs. Proactively
testing these solutions and not check-in
“It starts with education and defaulting to what’s been done the
learning about what is available to last five years is the key to taking full
programmatic marketers in 2022,” advantage of programmatic
said Lawson at AdTheorent. “Brands advertising in 2022 and beyond.” The industry shares concerns
should ask their programmatic partners about ongoing consumer
about driving performance, efficient Forty-nine percent of respondents privacy restrictions, but some
and effective targeting methods, and indicated advanced targeting that are more prepared than others.
attribution innovations outside doesn’t utilize cookies or PII is more
of walled gardens. They should effective than retargeting or “We weren’t fully reliant on
explore unified IDs and other cookie behavioral targeting, and 29% felt cookie-based audiences, to
replacement IDs, but they should also they’re about the same. begin with,” Andrew Harrison,
head of North America e-
commerce sales at KraftHeinz
Q. How effective do you consider advanced said. “By using first-party data,
targeting tactics that do not rely on personal clean rooms or retail walled
information or cookies, like those that use machine gardens that can port in our first-
learning, to be in comparison to legacy targeting party data, we are prepared for
methods like retargeting or behavioral targeting? any changes.
08
New era, new Brands and agencies are continuing to
shift ad dollars into CTV. The channel
party cookies, and it is clearly a vital
channel for most teams, with 59%
CTV is
shifting to a Q. How effective is CTV at driving its
intended objectives for your team?
21%-40% 29%
25%
1%-20% 33%
24%
0% 6%
6%
09
Regarding the ways marketers Q. What methods do you use to purchase
are buying these programmatic CTV inventory? Select all that apply.
activations on connected TV, many
are purchasing CTV ad spots through
programmatic guaranteed methods Programmatic 55%
(55%). However, private exchanges guaranteed
are close behind at 49%; open
auctions are not far behind that Private exchanges 49%
(41%).
I don’t know 6%
10
“For a women’s apparel client of ours, at PMG. “What we saw was that CTV When it comes to CTV metrics overall,
we’ve seen CTV drive the type of was really effective at driving users overwhelmingly, video completes
performance you would expect, like down the funnel, and it created a lift in were the way our respondents said
reach and brand awareness lift, but the overall conversion rate that we they tracked CTV campaigns (61%).
we evaluated the path to conversion saw when a user was exposed to CTV. Business outcomes, ROAS/ACOS and
more deeply to understand how CTV That was a great story because CTV is CPA trail behind at 37%, 31% and
moved users down the funnel and if an expensive channel, so to be able to 28%, respectively.
it drove conversion lift,” said O’Brien justify it with some lower-funnel metrics
was definitely a positive.”
ROAS/ACOS 31%
CPA 28%
I don’t know 8%
Other 0%
11
“At the end of the day, CTV is an Q. Which KPIs are valuable to you in your
opportunity to ensure you can programmatic marketing? Select all that apply.
still connect with and relate to
consumers despite the fact that
Conversions
they may not be watching as much 65%
broadcast TV,” said Harrison at
KraftHeinz. “I think it’s helped a lot
of CPGs to make the digital space Clicks
a little bit less of a black box and 65%
has always been an area that I think
there is an opportunity to drive strong
Business outcomes (sales,
brands, consumer sentiment, brand 54%
prescription fills,
sentiment, increased likelihood for
visitation)
a conversion, a buy and to get that
reach metric.”
52%
Cost per action
From attribution to key performance
indicators, while conversions and
clicks win out as the highest-value 50%
Impressions
KPIs overall at 65% each, business
outcomes, cost-per-action and
impressions are close behind (54%,
44%
52% and 50%, respectively). And, ROAS/ACOS
while programmatic CTV marketers
appear to be very interested in video
completes as far as attribution goes, 39%
Video completes
when it comes to overall campaign
KPIs, they’re all about the dollar-
based results.
2%
Other
“Marketers should take note that KPIs tied to business outcomes such as
programmatic is capable of sales, prescription fills, fo m completes
achieving so much more than and more. Marketers should move
‘clicks,’” said Lawson. “At AdTheorent, beyond the click and demand more
we use a privacy-forward machine from their programmatic campaigns
learning-powered programmatic and partners.”
platform to drive advanced
advertiser-specificied
12
Opportunities are increasing,
but programmatic spend isn’t
catching up for DOOH (yet)
1%-20% 46%
46%
0% 21%
13%
While more people are spending being much higher impact and growth without the same spend.
time out of their homes, advertisers expensive.”
aren’t ready to allocate a more “There’s no doubt in my mind that
significant percentage of their At KraftHeinz, Harrison wasn’t surprised retail media spend will increase next
budget toward DOOH. The price of that DOOH spend isn’t poised for a year,” Harrison continued, “so it’ll be
the format may be an operative surge in the year to come as e- interesting to see where that spend
factor in these budgeting decisions. commerce growth since 2021 has led comes from. Does it come from trade,
companies such as his to believe existing media channels or brand
“I’m surprised to hear that DOOH DOOH is no longer a must. media spend? You’re going to see a
spend hasn’t increased for 2023 yet,” shift into retail media from a variety of
said O’Brien at PMG. “I consider it “For CPGs, I think they’ve appreciated different sources.”
more like CTV, where it would be a the growth in e-commerce, and over
huge growth channel over the next the last few years, they’ve been trying For DOOH to gain a share
few years. I wonder if the hesitancy to lean in,” he said. “There was a of marketers’ budgets, it’ll need to
could be due to the potential massive consumer shift into e- prove its value separate from what
recession worries and new commerce, so I think what that brands are gaining from the
advertisers choosing to invest more in enabled was a belief that you could increased prevalence of e-
less expensive formats with DOOH drive e-commerce volume and commerce currently.
13
DOOH metrics Q. How do you track DOOH campaign
attribution? Select all that apply.
in focus
We analyze brand site
traffic and sales lift in 43%
For programmatic marketers that DOOH campaign regions
are putting a lens on DOOH this
year and next, most respondents
(43%) said they analyze brand site We include QR codes on
traffic, and sales lift in DOOH ad creative to measure 33%
campaign regions, including QR direct scans
codes on ad creatives to
measure direct scans and
We include calls-to-action
including CTAs to track
(CTAs) to track conversions 33%
conversions followed, each with
33%. Three respondents wrote in
additional responses saying they
use impressions, don’t have a way We use geo-fencing
to measure DOOH campaign around DOOH units to 29%
attribution and use a partner for retarget users on mobile
footfall attribution. devices
Other 6%
14
The future of programmatic:
A focus on performance and
agility
As marketing teams seek to evolve Q. What steps are you taking to improve your
programmatic strategies to maintain programmatic marketing strategy in the future?
campaign scale and achieve Select all that apply.
advertising success in the future,
they are hiring in-house experts for
programmatic teams (44%), using Hiring in-house experts for 44%
a hybrid of third-party technology programmatic teams
vendor partnerships and in-house
experts (40%) and partnering with
third-party technology vendors that A hybrid of third-party 40%
specialize in programmatic (35%). technology vendor partnerships
and in-house experts
I don’t know 6%
“We’re talking a lot right now about Opportunities for marketers in the selection and the publishers we’re
agility,” said Harrison at KraftHeinz. programmatic space in the new year investing in.
“I think because of how dynamic are plentiful and involve some
programmatic is, keeping that relatively new lines of thinking. “Traditionally, programmatic has
flexibility and willingness to quickly performed well on a post-view
change your mind or shift your “The first is around sustainability and basis when we look at cookie-
approach is really important because responsible advertising,” said O’Brien based data to be able to showcase
it’s so different from a historical media at PMG. “There’s a huge opportunity programmatic impact to a program,”
approach where you’re looking at for digital marketers to put an O’Brien continued. “Knowing that
CPMs, and you’ve got all these very increased focus on sustainability and cookies are going away, it’s going
defined KPIs you’re going after. Some reducing our carbon footprint, whether to be really important to lean into
of the machine learning and that’s through supply path optimization durable measurement solutions, such
predictive elements of programmatic or being intentional with inventory as incrementality and media mix
make it really exciting.”
15
modeling, ahead of the cookie Q. What are your key priorities over
deprecation in 2024.” the next year related to programmatic
advertising? Select your top two priorities.
Performance overwhelmingly stands
out as the top priority for
programmatic teams moving into Performance 71%
2023 at 71%, with privacy-forward
targeting approaches that aren’t
reliant on PII or cookies coming in
second at 54%. Privacy-forward targeting 54%
approaches
With over half of respondents (not reliant on cookies or PII)
focusing on privacy-forward
approaches to address the signal Transparency 40%
loss resulting from the deprecation of
third-party cookies, marketers are
shifting toward first-party data.
CTV strategies 40%
However, it’s imperative to have a
privacy-forward approach to this
customer data. It’s a precious asset,
and when handled with care, it DOOH strategies 23%
drives significant campaign
outcomes for marketing teams.
Other 0%
16
Partnerships for growth: How
marketers are tapping into
programmatic resources
When it comes to identifying a partner “The big takeaway is to plan ahead,” And those partners themselves are
that can help marketing teams put recommended O’Brien. “We partner evolving: "There’s been a big shift
all the pieces together and ensure with clients at the beginning of the toward partners that are more
they’re making the most out of their year to define what their business agnostic feeling that aren’t forcing
programmatic campaigns, there has priorities are for the year and then you to use specific measurement
been a change in approach to the translate those into media objectives partners or audience partners or data
evaluation, involving more creative and then our test-and-learn agenda partners, where CPGs can really craft
consideration of available options and throughout the year. I think that sets their message in their own way that
less deference to entrenched walled us up to be accountable to some of can be onboarded quickly, accepting
garden giants. the roadmap planning items.” tags to ensure brand safety and then
activate,” said Harrison at KraftHeinz.
The qualities of a good partner come nimble enough to be responsive, Effectively-priced media with a
down to the following. proactive and creative? vertically-integrated approach
Balance of targeting and machine
Authenticity More specifically, marketers want to learning so the buys are constantly
Believability know what tools partners possess, how being optimized
Support easy the platform is to use and what Ability to employ geographic
Transparency of reporting performance outcomes it is helping to accuracy to reach consumers at
Collaboration drive. certain retail destinations
Results across a variety of advertiser Willingness to integrate into existing
metrics “What really excited us about data systems and have transparent
Flexibility to address advertiser AdTheorent was the level of support, conversations around impact on
needs transparency of the reporting and the sales and targeting
overall machine learning through the
With these qualities come some
platform,” said O’Brien at PMG. “The And as the programmatic sector
questions:
partnership has been extremely continues to shift, how the future
successful and collaborative. We’re shakes out will be interesting as retail
using the platform with a wide range media continues to come into focus
Does the partner offer unique,
of our travel and retail clients. The A+ and gain a share of the media mix.
differentiated value?
service, deep insights and reporting,
Can the partner prove its unique
plus the ease-of-use within the platform “I think you’ve got this really interesting
value?
and the overall performance sold us dichotomy between third-party
Beyond the initial sales pitch, will the
on the partnership.” programmatic DSPs and direct buys,”
partner provide enough support?
said Harrison. “And as retail media
How can the partner share insights
Considering each team’s specific networks try to become more like
about performance?
needs is essential in finding the right publishers — as they try to find ways
Is the partner staffed and organized
partnership. Harrison boiled down what to get more and more impressions
to be an extension of your media
his team found to be most helpful in — you’re going to see this squeeze
team?
their search for an ideal partner into toward non-retail media linked
Is the partner equipped to drive
the following: providers. From where I’m sitting, that
business outcomes that matter?
dichotomy is really interesting.”
Is the partner problem-solving and
17
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