The past 12 months have been a landmark year for programmatic advertising. Key developments have helped shape the industry, including premium media owners like Netflix and Disney+ expanding their ad-supported streaming and AI playing a more prominent role in optimizing campaigns.
As we look ahead to 2025, the programmatic landscape is gearing up for even more transformative developments. Here, we’ll go through five of our global predictions for the future of programmatic advertising.
- Premium Media Owners Continue To Expand Inventory
The biggest streaming services in the world are poised to see a big increase in ad-supported subscriptions. “Media owners, such as Netflix, Disney+, and Max, will expand their inventory partnerships, streamlining access for a broader range of media buyers,” says Grapeseed Media’s Jon Gross.
“Following their lead, other premium channels will adopt similar strategies, enhancing opportunities across the industry.”
This strategy is more than business — it’s an industry-defining shift, as making premium inventory more accessible via programmatic channels can set a precedent for other high-value publishers. This can then create more opportunities for advertisers to connect with previously hard-to-reach audiences, providing a seamless (and scalable) solution to tapping into the growing trend of ad-supported streaming content.
Lowering barriers to entry gives advertisers the chance to access a larger share of consumer attention. We predict that we’re only seeing the start of ad-supported streaming content.
2. The Dominance Of Video And Interactive Content
A trend that has gained unstoppable momentum is video and interactive content. In 2024, short-form and shoppable video formats proved to be very effective and were used to drive engagement across platforms such as TikTok, Instagram, and YouTube.
We predict that this trend will continue to evolve, especially as advertisers continue to invest in innovative ad formats that are designed for maximum engagement.
Interactive video ads and gamified content are set to emerge as the main pillars of digital strategies, driving engagement and collecting first-party data. Brands and strategies that embrace this type of content will be well-positioned to capture and sustain audience attention, all while delivering measurable returns.
3. Traditional OOH Shifts Towards Digital OOH
Out-of-home (OOH) advertising continues its sharp shift from traditional to digital. In fact, by 2029, global OOH advertising is projected to reach almost $68 billion, with digital out-of-home (DOOH) predicted to account for 44% of all investment, according to our experts. Programmatic DOOH ad spend, on the other hand, is on track to surpass $1 billion in 2025, accounting for 30% of all DOOH spend by 2026.DOOH campaigns can utilize creatives built for online video or connected TV (CTV). These campaigns are able to integrate directly with other channels across desktop and mobile.
4. CTV Continues Its Impressive Growth
As of 2024, the number of US households with at least one CTV-enabled device is projected to reach 85%. And, according to Forbes, 99% of US households currently subscribe to at least one streaming service.
This growing audience is driving investment. In response to the continued cord-cutting in the US, CTV ad spend is expected to hit $30.4 billion by 2025, accounting for almost 50% of total US digital video ad spend, according to Grapeseed’s Wilson Schaser.
In comparison, the US market for linear TV advertising is forecast to decline, further boosting the rise of CTV ads.
Enhanced ad formats, such as interactive ads and shoppable CTV ads, are expected to grow over the next 12 months, making CTV more appealing to advertisers looking for engagement at every stage of the marketing funnel.
5. The Rise Of Artificial Intelligence In Programmatic Advertising
The growth of AI in digital and programmatic advertising is one of the most transformative trends in marketing. As Wilson Schaser notes, AI is being increasingly leveraged to optimize the ad buying process, enhance targeting, personalize user experiences, and improve campaign measurement and efficiency.
Google’s DeepMind defines AI as “the science of making machines smart.” AI lets machines learn by detecting patterns and making predictions or decisions from those patterns; it can then learn from those outcomes to make better decisions over time. Given that Programmatic is defined by the algorithmic real-time buying of digital ads based on data signals such as demographics, purchasing behavior, content consumption, and more, programmatic ad buying is an obvious fit for AI applications.
Programmatic demand-side platforms (DSPs), such as The TradeDesk, Google Marketing Platform, and Amazon have invested heavily in AI to analyze vast amounts of data and adjust bid strategies, targeting, and creative delivery based on performance signals, helping advertisers optimize campaigns in real-time.
In tandem with these advancements in AI-powered AdTech comes the increased need for human expertise to effectively operate these powerful technologies. More than 80% of marketers are already incorporating some form of AI in their advertising strategies, and this figure is expected to rise significantly by 2025. The automation of routine tasks like bidding, targeting, and creative optimization will continue to expand the scope of AI’s role in programmatic advertising.
Supercharge Your Campaigns With Grapeseed
As we approach the new year, it’s clear that the programmatic landscape will continue to evolve, presenting both challenges and opportunities for advertisers. Staying ahead requires knowledge of the landscape, along with the right tools and expertise.
At Grapeseed Media, our team specializes in helping clients navigate this often complex landscape. Whether you’re looking to capitalize on CTV’s growth, effectively harness the power of AI, or create engaging ads, we can help you drive success.
Get in touch with our team to find out more about how we can help you drive engagement with programmatic.
