The year 2024 marked a significant turning point for digital media. Programmatic advertising continued to grow, especially in premium deals and private marketplaces, while Connected TV (CTV) strengthened its position as one of the key channels for advertisers.
Google’s decision to cancel the removal of third-party cookies and invest in Privacy Sandbox solutions created uncertainty in the market but also opened up new opportunities. AI-driven solutions and curation took centre stage, offering more efficient and transparent advertising methods. Increased regulatory scrutiny, such as Google’s antitrust trials and EU data protection reforms, highlighted the need for fair competition and transparency, particularly in pricing and market dominance. Generative AI presented new business opportunities for publishers but raised copyright and content management concerns.
This review examines the key themes of 2024 and their impact on digital publishers. It also examines the industry's future directions, where privacy, AI, and regulation will play central roles.
Programmatic Advertising: Spotlight on Premium Deals and CTV
In 2024, programmatic advertising underwent significant changes as advertisers and publishers increasingly focused on quality and transparency in their ad investments. Premium deals and private marketplaces (PMPs) gained prominence, providing brand-safe and high-quality advertising environments. In the U.S., premium deals accounted for 48% of programmatic investments, a notable rise from 25% in 2020. This also reflects advertisers' preference for more controlled and secure environments.
At the same time, Connected TV (CTV) strengthened its position as a significant growth channel for programmatic advertising. Advertisers appreciated its precise targeting capabilities and extensive reach, making it particularly appealing to brands that value high-quality content. Premium deals and other programmatic targeted solutions steered the industry toward more efficient, transparent, and secure advertising environments that benefit advertisers and publishers.
Privacy Sandbox and the Evolution of Identity Technologies
In July, Google announced a shift in its approach to phasing out third-party cookies, moving toward a more user-centric model. This new strategy aims to give users greater control over cookie usage, but the final solutions are still under development. The announcement sparked both anticipation and concerns about maintaining competitive balance and the influence of dominant market players.
Google’s Privacy Sandbox initiative, aimed at enhancing privacy, took centre stage during the year. Its goal is to enable ad targeting without third-party cookies. While the initiative’s APIs offer new ways to balance privacy and advertiser needs, its impact has been critically assessed. For instance, the UK’s Competition and Markets Authority (CMA) identified over 60 issues related to Privacy Sandbox’s potential effects on market competition dynamics.
Meanwhile, alternative identity technologies, such as first-party data and new recognition solutions, emerged as vital tools. These technologies enable more effective ad targeting but often require significant investment and technical expertise. This development brings opportunities and challenges, particularly for smaller players navigating the pressures of technological advancement and regulatory requirements.
Lawsuits and Tightening Regulation: Google Under Scrutiny
In 2024, Google’s dominant position in the digital advertising market came under intense scrutiny in multiple lawsuits.
The U.S. Department of Justice (DOJ) antitrust case raised questions about Google’s practices, including its impact on publisher ad revenues and competition. The case focused on Google’s Ad Manager and DoubleClick platforms, which were accused of hindering competition and increasing market share by manipulating pricing mechanisms.
Authorities in the EU and U.S. also considered potential remedies to limit Google’s influence, including the possible sale of parts of its ad tech business. While this proposal faced resistance in the EU due to its complexity, the DOJ in the U.S. emphasised the separation of Google’s AdX and DFP platforms.
These lawsuits did not go unnoticed in the industry. While many publishers hoped-for improvements, they also expressed concerns about the potential effects of changes on their revenues. Google’s defence centred on arguments that its practices support privacy and ad quality, but critics highlighted their anti-competitive effects. The lawsuits of 2024 not only questioned Google’s strategies but also brought the broader structure of the digital advertising ecosystem under scrutiny. The outcomes of these cases could shape the future of digital advertising, particularly regarding fair competition and transparency.
Clarity in Regulation and New Privacy Management Tools
In 2024, GDPR significantly clarified regulations and operational practices within the advertising industry. For instance, the UK’s Information Commissioner’s Office (ICO) and the Coalition for Privacy Compliance in Advertising (CPCA) launched a new certification program providing clear guidelines for GDPR compliance in the ad tech sector. This initiative aims to create fairer competition and eliminate the ambiguity caused by GDPR interpretations.
IAB Tech Lab also continued its efforts to develop the Global Privacy Platform (GPP), simplifying compliance with privacy laws across different regions. This progress is significant for the constantly evolving digital advertising ecosystem, which requires clear and easily implementable solutions. While these advancements helped reduce the complexity of GDPR, challenges remain.
EU industry players call for more unified and flexible regulations supporting innovation and sustainable digital advertising growth. These developments set expectations for 2025, when the effects of regulatory changes may become more tangible.
A Year of Innovation: Curation, AI, and New Technologies
In 2024, innovation took centre stage in the AdTech industry as players leveraged new technologies and models to enhance advertising efficiency and transparency.
Curation became a significant topic of discussion during the year. This strategy, where high-quality ad inventory is carefully organised into specific collections, improves targeting accuracy and offers publishers better inventory management tools. For example, Google’s Ad Manager introduced new curation tools that utilise publishers’ first-party data to enable more targeted campaigns. However, curation also faced criticism. Sceptics questioned its impact on publishers' control and revenue, suggesting that it could cannibalise direct sales by offering lower prices or create an illusion of quality without substantial added value.
Alongside curation, generative AI gained a more significant role during the year. Platforms such as ProRata.ai demonstrated how AI could support publishers’ revenue models by adding value to advertising and content production. Publishers also began leveraging AI’s capabilities to create dynamic ad solutions, such as AI-powered ad formats and personalised campaigns.
Simultaneously, privacy-preserving solutions, such as IAB Tech Lab’s ID-Less Solutions Guidance and ADMaP protocol, advanced the ability to measure advertising and manage data without traditional identifiers. These developments underscore the industry's efforts to combine effective advertising with user privacy.
While innovations opened new opportunities, they also brought challenges, such as increased development costs and complexity. Publishers had to balance adopting new technology with resource constraints, highlighting the importance of collaboration and standardisation for sustainable growth.
Conclusion
2024 brought significant changes to the AdTech industry, with programmatic advertising, privacy management, regulation, and innovation taking centre stage. Premium deals and CTV gained popularity, while Google’s Privacy Sandbox initiative sparked discussions about balancing privacy and competition. Lawsuits challenged the practices of major industry players, and steps were taken to clarify GDPR compliance. At the same time, innovations such as AI and curation created new opportunities for targeted advertising and inventory optimisation, albeit with challenges.
The year demonstrated that digital advertising is in a transformative phase, where regulation and technology development are reshaping the industry's future together.