## Introduction: From Manual Buys to Machine Intelligence
Not long ago, digital advertising relied on human buyers negotiating placements with publishers. That changed with programmatic advertising—automated auctions that match ads to audiences in real time. In 2025, programmatic has become the **backbone of digital media buying**, powering nearly every display, video and audio impression. According to Amra & Elma’s industry report, **global programmatic ad spend is projected to grow from $678.37 billion in 2023 to $802.34 billion in 2024**【272182361107105†L104-L108】. By 2026, **programmatic will account for 90 % of global digital display ad spending**【272182361107105†L110-L114】. This meteoric growth reflects how deeply automation, artificial intelligence (AI) and data now permeate marketing. At the same time, new channels such as connected TV (CTV) and retail media networks (RMNs) are reshaping how brands reach audiences. This article explores the state of programmatic advertising in 2025, the rise of CTV, and strategies marketers need to succeed in a privacy‑centric, cross‑platform world.
## Programmatic Advertising by the Numbers
The scale of programmatic advertising is staggering:
* **Global market growth:** The industry is on track to expand by **22.8 %** annually from 2024 through 2030【272182361107105†L104-L108】.
* **Dominant share:** **Programmatic buying will represent 90 % of global digital display spend by 2026**【272182361107105†L110-L114】—an indication that manual insertion orders are becoming obsolete.
* **U.S. leadership:** U.S. programmatic spend will **surpass $270 billion in 2025**, accounting for roughly 85 % of national digital ad investment【272182361107105†L116-L120】.
* **Retail media surge:** Programmatic retail media display spending jumped **41.7 % in 2024** and is projected to grow **another 29.3 % in 2025**【272182361107105†L124-L126】. RMNs are expected to top **$30 billion by 2026**, representing about 16 % of programmatic display【272182361107105†L124-L127】.
* **Mobile dominance:** Mobile and tablet screens capture **49.6 % of programmatic spend**【272182361107105†L150-L155】 as people increasingly consume content via phones. This share is expected to stay high as 5G expands streaming and gaming.
* **CTV momentum:** Connected TV advertising continues to expand; video ad spend grew **18.6 % to $4.1 billion** last year, with **CTV accounting for 55 % of that growth**【272182361107105†L136-L141】.
* **Fraud concerns:** Ad fraud remains a major challenge. Losses are expected to reach **$81 billion by 2024**【272182361107105†L163-L167】, prompting greater investment in fraud detection and measurement.
These figures underscore both the scale of programmatic and the complexity marketers must manage across channels and partners.
## Why Programmatic Dominates
### Automation and Efficiency
Programmatic buying automates what used to be manual and time‑consuming. Algorithms bid on impressions in milliseconds, optimizing price and targeting based on thousands of signals. Brands can reach specific audience segments at scale without negotiating each placement. This efficiency lowers transaction costs and allows marketers to allocate spend dynamically in response to performance.
### AI‑Driven Optimization
Artificial intelligence and machine learning now power much of the decision‑making in programmatic platforms. Algorithms analyze user behavior, context, past campaigns and real‑time conversions to predict which ad will most likely drive the desired outcome. For example, a travel brand can adjust bids and creative based on whether a user is browsing on a phone at lunchtime or streaming a CTV show at night.
### Granular Targeting with First‑Party Data
With third‑party cookies on their way out, first‑party data has become paramount. Brands leverage CRM data, loyalty programs and on‑site behaviors to build audiences while respecting privacy. Retail media networks thrive on this—retailers monetize their shopper data by allowing brands to target ads on their websites, apps and email newsletters. These closed ecosystems deliver high match rates and measurable conversions.
### Cross‑Channel Reach
Programmatic now spans display banners, in‑stream video, audio, digital out‑of‑home and, increasingly, **connected TV**. Marketers no longer need separate buying teams for digital and linear television; they can plan unified campaigns that reach audiences across devices, with consistent frequency capping and measurement.
## Connected TV: Where Streaming Meets Programmatic
Connected TV—content delivered via smart TVs, gaming consoles and streaming devices—has transformed video consumption. Viewers are cutting cords and gravitating to on‑demand platforms like Netflix, Hulu and Disney+. For advertisers, CTV offers the targeting precision of digital with the lean‑back, immersive environment of television.
**CTV programmatic ad spend is booming.** According to industry data, CTV now drives more than half of programmatic video spending and helped video advertising expand **18.6 % year over year**【272182361107105†L136-L141】. Brands can target households based on demographics, interests and even purchase behavior, then measure incremental reach and conversions. Unlike linear TV, CTV campaigns allow for interactive formats—viewers can click with their remotes to learn more or make purchases.
### Benefits of CTV
* **Audience fragmentation:** As viewers scatter across dozens of streaming apps, programmatic buying enables brands to stitch together fragmented audiences with unified frequency capping.
* **Advanced measurement:** CTV advertisers can track impression delivery, completion rates and cross‑screen conversions. For example, a car maker might serve a brand awareness ad on a smart TV, then retarget the same household with a conversion‑focused banner on mobile the next day.
* **Addressable advertising:** Programmatic CTV makes TV advertising accessible to smaller advertisers. Local businesses can run ads in specific zip codes or even on a single streaming show.
### Challenges and Considerations
While the promise of CTV is compelling, marketers must navigate several challenges:
* **Fragmentation and supply transparency.** Many small streaming apps make inventory opaque. Work with reputable supply‑side platforms (SSPs) and demand‑side platforms (DSPs) that provide brand‑safe, fraud‑free inventory.
* **Measurement discrepancies.** Unlike cookies, measurement in CTV relies on device graphs and probabilistic matching. Use cross‑device identity solutions and run incrementality tests to ensure data accuracy.
* **Ad fatigue.** Viewers often see the same ads repeatedly when supply is limited. Plan creative rotation and frequency caps to avoid annoyance.
## Retail Media Networks: The New Walled Gardens
Retail media networks like Amazon, Walmart Connect and Instacart are the fastest‑growing segment of programmatic. They offer advertisers direct access to shoppers using retailers’ first‑party data. With RMNs projected to exceed **$30 billion in programmatic spending by 2026**【272182361107105†L124-L127】, marketers should prioritize this channel. To maximize returns:
1. **Align with shoppers’ journeys.** Use purchase data to place ads at the right moment—while shoppers search for related products or check out.
2. **Leverage closed‑loop measurement.** RMNs can show when a display impression leads to an in‑store or online purchase, proving ROI in ways traditional channels cannot.
3. **Balance budgets.** RMNs often command higher CPMs but deliver strong conversion rates. Allocate budgets based on customer lifetime value and margin.
## Privacy, Identity and the Future of Programmatic
The demise of third‑party cookies and tightening privacy laws are forcing marketers to rethink identity. The programmatic ecosystem is shifting toward **alternative identifiers and first‑party data**【272182361107105†L143-L147】. Clean rooms—secure environments where publishers and advertisers can match data without sharing raw records—are becoming essential. Google’s Privacy Sandbox, UID 2.0 and other IDs aim to maintain targeting capabilities while respecting user consent.
Advertisers must prioritize transparency: clearly communicate data collection practices and allow users to opt out. This ethical approach builds trust and guards against regulatory risk.
## Actionable Strategies for 2025
* **Invest in AI‑driven platforms.** Choose DSPs that leverage machine learning for bid optimization, creative personalization and fraud detection.
* **Prioritize first‑party data.** Build robust CRM programs, loyalty initiatives and data partnerships. Use data clean rooms to activate these audiences while honoring privacy.
* **Explore CTV and RMNs aggressively.** Run test campaigns across major streaming services, then expand into niche apps based on performance. Integrate RMN campaigns into your media mix and measure cross‑channel lift.
* **Measure incrementally.** Use holdout tests and multi‑touch attribution to understand the incremental impact of programmatic vs. traditional buys. Account for cross‑device exposure and offline conversions.
* **Implement brand safety and fraud solutions.** Work with verification partners to monitor viewability, invalid traffic and brand suitability. Insist on supply chain transparency from SSPs.
* **Diversify creative.** Use dynamic creative optimization (DCO) to tailor messages to different audience segments and rotate variations to combat ad fatigue.
## Conclusion
Programmatic advertising has matured from a niche buying method into the default mechanism for digital media. With spending set to reach **over $802 billion**【272182361107105†L104-L108】 and **90 % of digital display purchases**【272182361107105†L110-L114】, marketers must master the tools, data and strategy that underpin automated buying. The growth of connected TV and retail media networks offers rich opportunities to reach audiences in new contexts. But success requires embracing first‑party data, ensuring transparency, mitigating fraud and measuring performance across fragmented devices. As AI continues to evolve and privacy regulations tighten, the brands that adapt quickly will find programmatic—and the audiences it delivers—more valuable than ever.
