Proximic by Comscore Releases Findings from 2024 State of Programmatic Report
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Insights
The shift towards programmatic advertising is indicative of the broader digital transformation within the advertising industry. This move is driven by the need for greater efficiency and precision in ad targeting, as programmatic platforms allow for real-time bidding and more specific audience segmentation. The reported increase in investment by 62% suggests a significant confidence among advertisers in the ROI of programmatic channels.
Another trend highlighted is the pivot towards contextual targeting as an alternative to cookie-based methods. This reflects the industry’s adaptation to heightened data privacy standards and browser regulations. Marketers are likely to explore new technologies that enable contextual targeting without compromising user privacy, which could lead to innovations in the field of ad tech.
Furthermore, the transfer of investment from linear TV to CTV (Connected TV) by 43% of marketers is a testament to the changing media consumption patterns. As viewership migrates to on-demand and streaming platforms, advertisers are following suit to capitalize on the engaged audience these platforms provide. The implication for businesses in the media sector is a potential decline in traditional TV ad revenues and a corresponding rise in digital ad spending.
From a financial perspective, the growth in programmatic advertising investment has implications for the stock market, particularly for companies within the ad tech industry. Comscore, Inc., being a provider of audience and targeting solutions, could see an increase in demand for its services, which may positively influence its stock performance.
The increased focus on contextual targeting could also spur M&A activity in the sector, as companies seek to acquire emerging technologies and expertise to gain a competitive edge. Investors should monitor developments in this area, as they could signal shifts in market leadership and opportunities for growth.
For companies reliant on linear TV advertising revenue, the reported shift towards CTV could be a cause for concern. A decline in linear TV ad spend could impact these companies' financials, potentially affecting their stock valuations. Conversely, companies that are well-positioned in the CTV space could benefit from the reallocation of ad budgets.
With the deprecation of third-party cookies, data privacy becomes an even more critical aspect of programmatic advertising. Advertisers and technology providers must navigate an increasingly complex regulatory landscape, balancing effective targeting with compliance to data protection regulations such as GDPR and CCPA.
Marketers' preparedness for the cookie-less future will be crucial to their success. Those who can leverage privacy-compliant targeting methods stand to gain a competitive advantage. Businesses should invest in privacy-centric solutions and transparent data practices to build consumer trust and ensure sustainable advertising strategies.
The report's findings underscore the need for continuous innovation in privacy-preserving technologies. Companies that can provide such solutions are likely to see growth, while those that fail to adapt may face legal challenges and erosion of consumer confidence.
The majority of advertisers plan to increase investment in programmatic;
Contextual targeting stands out as a viable alternative to the cookie;
CTV investment will be pulled from linear TV by close to half (
NEW YORK, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Today, Proximic by Comscore, Comscore, Inc.’s (NASDAQ: SCOR) programmatic targeting division and a leading provider of audience and targeting solutions for programmatic activation, released its second annual State of Programmatic Report for 2024. The report resulted from a survey of hundreds of publishers, advertisers, agencies and technology providers and examines how evolving technologies, consumer habits, data privacy and browser regulations are impacting the programmatic advertising landscape.
The report makes clear that advertisers are turning to programmatic advertising in 2024 with
Top findings show that funding for increased CTV investment will be pulled from linear TV budgets by close to half (
"If 2024 plays out as advertisers indicated in our State of Programmatic report, the industry is looking at a significant increase in programmatic spend, a shift of linear TV budgets to CTV and major growth in contextual targeting as a cookie replacement strategy," said Rachel Gantz, Managing Director, Proximic by Comscore. "This year is also primed to see the industry's adoption of artificial intelligence which most advertisers believe will turn historical industry norms on their head."
More details from the report include:
- Expected market share capture across web, mobile and social, video, CTV and linear TV
- For marketers who plan to increase investment in programmatic CTV in 2024, budget is primarily being pulled from linear TV with
43% of marketers planning to shift budget from linear to CTV. - CTV is expected to see the largest YoY gain with advertisers set to spend
17% of their budgets on average across this medium, up from14% in 2023.
- For marketers who plan to increase investment in programmatic CTV in 2024, budget is primarily being pulled from linear TV with
- Percent of marketers ready for cookie deprecation
30% of marketers say they are not prepared for the full deprecation of third-party cookies.
- How cookie signal loss will send marketers flocking to contextual targeting
78% of marketers plan to increase or maintain their reliance on contextual targeting in 2024.
- What channels will perform better for branding objectives vs performance
- CTV topped the ratings as the leading channel for achieving brand marketing objectives, whereas web & mobile digital was the top channel for performance marketing
- Between new targeting, creative and measurement capabilities, AI is on the brink of changing the programmatic landscape as we know it.
- Over three-quarters (
76% ) of marketers think artificial intelligence (AI) will change how programmatic platforms operate.
- Over three-quarters (
For the full report, please download it here.
About Proximic by Comscore
Proximic by Comscore, a division of Comscore, Inc. (NASDAQ: SCOR) is a leader in programmatic targeting. Powered by Comscore’s trusted datasets and one of the industry’s leading natural language processing contextual engine, Proximic by Comscore enables media buyers and sellers to maximize the scale and performance of their campaigns. Through its innovative suite of ID-based and ID-free audience and content targeting segments Proximic by Comscore supports the evolution of the programmatic ecosystem, enabling clients and partners to continue executing impactful advertising strategies. For more information about Proximic by Comscore, please visit www.proximic.com.
For press inquiries contact:
press@comscore.com
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