Trends in Programmatic Advertising - Industry Insights from DMEXCO 2024
As the digital advertising industry continues to shift, programmatic advertising remains a cornerstone of innovation and growth. At this year's [DMEXCO 2024](https://dmexco.com/ "https://dmexco.com/") (_Digital Marketing Exposition & Conference_), held on September 17-18 in Cologne, Germany, Wayne Tassie, Chair of IAB Europe's Programmatic Trading Committee, led a Masterclass titled "**Programmatic Advertising in Europe – 10 Years of Trends, Attitudes, and Growth Drivers**." The session offered a preview of [IAB Europe's](https://iabeurope.eu/ "https://iabeurope.eu/") upcoming study, set to be published in November, which provides valuable insights into the current state of the programmatic industry.
Afterwards a lively panel discussion with key industry leaders from both the publishing and advertising sectors took place, including Daniel Godoy, Global Head of Programmatic Evangelist at Microsoft Advertising, Cadi Jones, SVP EMEA, Index Exchange, Carol Starr, Vice President Ad Revenue, International Paramount and Ingo Schwab, Head of Media Digitisation, Headquarter Deutsche Telekom.
This article highlights the most significant trends shared during the event, with a special focus on the publisher perspective, as well as the rising importance of **first-party data**—a crucial element for all parties in navigating the future of programmatic advertising.
If you have a DMEXCO Community account, you can watch the full recording of the masterclass [here](https://community.dmexco.com/event/dmexco-2024/planning/UGxhbm5pbmdfMjA1NTIzMg== "https://community.dmexco.com/event/dmexco-2024/planning/UGxhbm5pbmdfMjA1NTIzMg==").
First-Party Data: The Backbone of Future Advertising
One of the most prominent themes from the IAB Europe session was the increasing importance of **first-party data** in driving successful advertising and monetization strategies. As third-party cookies continue to phase out and stricter data privacy regulations come into play, especially in Europe, all sides of the advertising industry are pivoting towards more privacy-focused data strategies.
The key findings from the IAB Europe study showed that:
- **53% of advertisers** plan to prioritize leveraging first-party data within the next 12 months.
- A significant **74% of agencies** and **66% of publishers** are focusing on **contextual targeting**, reinforcing the need for more direct and compliant data collection.
- Additionally, **54% of all publishers** are exploring [identity solutions](https://www.ezoic.com/features/ezid "https://www.ezoic.com/features/ezid") to utilize their first-party data
For publishers, this trend signals a major opportunity. Utilizing first-party data through [identity solutions](https://www.ezoic.com/features/ezid "https://www.ezoic.com/features/ezid") allows them to establish direct relationships with their audience, giving them more control over both content and ad delivery. It also helps them comply with evolving privacy laws while delivering personalized user experiences.
Better targeting leads to **improved ad relevance**, which in turn increases the value of ad impressions. Advertisers are willing to pay more for access to high-quality, well-targeted audiences, making first-party data a crucial asset in maximizing programmatic revenue. As privacy laws evolve, publishers who invest in a robust first-party data strategy will gain a competitive advantage in the increasingly data-driven world of programmatic advertising by providing advertisers with trustworthy, high-value data that drives better campaign results.
The Current State of Programmatic Advertising
IAB Europe's report revealed promising trends in the growth of programmatic advertising, both in Europe and globally.
- Despite a slight dip in the share of programmatic display ads (down from **53.4% in 2022 to 51.9% in 2023**), the total programmatic ad spend in Europe grew by **7.4%**, reaching **€12 billion** in 2023.
- In contrast, the **US programmatic ad spend** reached a staggering **$245 billion** in 2023, with a slightly lower growth rate of **7.3%** year-over-year.
- **Europe**, despite being a smaller market, saw **11.1% YoY growth** in digital ad spend, indicating the region’s accelerating adoption of programmatic strategies compared to the US.
- Both advertisers and agencies continue to increase their investment in programmatic channels, with **68% of agencies** saying that **over 81% of their display campaigns were bought programmatically**.
Programmatic advertising continues to drive much of the digital ad economy, offering publishers a key revenue opportunity. Publishers that embrace **first-party data strategies** are better positioned to attract premium advertisers who are actively seeking **high-quality, privacy-compliant audience data sources**. With the ongoing shift toward data transparency and user privacy, publishers who can offer reliable, targeted ad placements through first-party data will stand out in the competitive programmatic landscape.
Challenges and Opportunities for Publishers
While programmatic advertising offers numerous opportunities, publishers still face key challenges. According to IAB Europe, the **quality of media** was cited as the top barrier to programmatic investment by **41% of agencies** and **30% of publishers**. Concerns around fraud, brand safety, and transparency continue to impact advertisers' confidence.
However, these challenges also present opportunities for publishers to differentiate themselves. **Ezoic’s commitment to Supply Path Optimization** and stringent **quality assurance** processes ensures that advertisers receive high-quality, human traffic on all sites using our platform. [A recent study by independent Ad Fraud researcher Dr. Augustine Fou](https://www.ezoic.com/posts/ezoics-high-quality-inventory-insights-from-dr-augustine-fou/ "https://www.ezoic.com/posts/ezoics-high-quality-inventory-insights-from-dr-augustine-fou/") revealed that Ezoic’s inventory is not only highly human but also of high quality, giving advertisers confidence that their ads reach engaged, authentic audiences, thus leading to higher RPMs for publishers monetizing with Ezoic and using our [identity solution](https://www.ezoic.com/features/ezid "https://www.ezoic.com/features/ezid").
By leveraging first-party data through methods like [Email-Hashing](https://www.ezoic.com/posts/understanding-email-hashing-a-key-tool-for-digital-publishers/ "https://www.ezoic.com/posts/understanding-email-hashing-a-key-tool-for-digital-publishers/"), publishers can offer transparency and build trust, creating a powerful value proposition for advertisers looking to reach well-defined, high-value audiences.
What Publishers Can Do: Maximizing First-Party Data Strategies
For publishers looking to remain competitive and future-proof their businesses, investing in a robust **first-party data strategy** is essential. Below are two key steps to help you get started:
1. **Data Collection**: Implement reliable systems to gather first-party data through methods like login areas, newsletter sign-ups (_Find out how to quickly scale your email lists_ [_here_](https://www.ezoic.com/posts/live-case-study-how-to-quickly-scale-email-lists-using-existing-facebook-and-search-assets/ "https://www.ezoic.com/posts/live-case-study-how-to-quickly-scale-email-lists-using-existing-facebook-and-search-assets/")), and membership programs. These strategies help you build a detailed, privacy-compliant database of your audience, enabling personalized targeting and insights.
2. **Integrate Identity Solutions**: Publishers benefit from advanced identity solutions by delivering highly personalized ad experiences to their readers. [Ezoic Identity](https://www.ezoic.com/features/ezid "https://www.ezoic.com/features/ezid") is the easiest end-to-end solution for seamlessly connecting User-IDs based on hashed Emails or phone numbers to all major ID solution providers. By implementing [Ezoic Identity](https://www.ezoic.com/features/ezid "https://www.ezoic.com/features/ezid"), you enhance the value of your inventory, offering advertisers precision targeting and access to high-quality, verified audiences, which drives higher-quality ads and increases your RPMs for not only cookie-less user groups, but all your traffic.
Investing in both data collection and identity solutions not only increases transparency but also positions your ad inventory as a premium offering. This combination allows you to meet the growing demands for privacy compliance while still offering advertisers the targeting capabilities they need for successful campaigns. Publishers who prioritize this approach can capture more programmatic ad spend and foster stronger relationships with industry-leading ad buyers.
Conclusion: First-Party Data is the Key to Success in Programmatic Advertising
The insights shared at DMEXCO 2024 reinforce that first-party data is no longer just a nice-to-have—it's a necessity for publishers looking to succeed in the future of programmatic advertising. It became clear that leveraging data strategies and identity solutions are key to unlocking higher ad revenue and meeting the demands of a privacy-conscious, cookie-less digital landscape.
Publishers that prioritize first-party data collection and implement identity solutions, such as [Ezoic Identity](https://www.ezoic.com/features/ezid "https://www.ezoic.com/features/ezid"), will stand out to advertisers, offering premium, highly targetable ad inventory while future-proofing their programmatic efforts in this rapidly changing industry.