Programmatic ad spends in India to see average annual growth of 25-30%: Yana Tolmacheva

In an exclusive interview with Adgully, Yana Tolmacheva, Marketing Lead - INSEA & Europe, Hybrid, delves into the fast-evolving ad tech landscape. She discusses the critical role of AI and machine learning in enhancing audience insights, precise targeting, and real-time campaign optimization, emphasizing that these technologies, while currently trending, have long driven the industry. Tolmacheva also explores the implications of GDPR and CCPA regulations, highlighting how Hybrid adapts with privacy-first strategies, focusing on first-party data and contextual targeting to ensure compliance while delivering personalized ads.

She further elaborates on the rise of Connected TV (CTV) and OTT platforms, showcasing Hybrid’s innovative approach to combining traditional TV’s reach with digital precision for cross-device campaigns. Addressing the factors driving programmatic ad spend, Tolmacheva forecasts significant growth, fueled by internet penetration and ad tech advancements. She also details Hybrid’s proactive measures for brand safety, ad fraud prevention, and enhanced viewability, ensuring a secure and effective advertising environment.

How do you stay up-to-date with the latest advancements in ad tech, and what impact do you think AI and machine learning will have on the industry?

As the Global Marketing Lead at Hybrid, staying up-to-date with the latest advancements in ad tech is crucial. I actively engage with industry events, attend key conferences, and collaborate with our product teams to remain informed on the evolving landscape.

And frankly speaking, yes, AI and machine learning are transforming the ad tech industry by enabling deeper audience insights, more precise targeting, and real-time optimization. However, these words, I mean AI & ML, create a buzz nowadays, I think we should consider the fact that walled gardens have been using AI and ML from way back. It was already making an impact silently.

Still these technologies have been enhancing the efficiency of campaigns and empowering brands to deliver highly personalized and contextually relevant content, ultimately maximizing ROI. As we progress, AI-driven solutions become the cornerstone of digital advertising strategies globally.

How do you think the GDPR and CCPA regulations will impact programmatic advertising?

I believe GDPR and CCPA regulations will continue to shape the landscape of programmatic advertising. These regulations place a greater emphasis on user privacy, requiring advertisers to adopt more transparent data practices and prioritize user consent. While this limits access to third-party data, it also pushes the industry toward more ethical, privacy-first strategies. As a result, advertisers will increasingly focus on leveraging first-party data, contextual targeting, and AI-driven solutions to deliver personalized and relevant ads while maintaining compliance and fostering trust with consumers. This shift presents both a challenge and an opportunity to innovate within the boundaries of privacy regulations.

How do you optimize ad campaigns for better ROI, and what metrics do you use to measure success?

At Hybrid, we optimize ad campaigns by leveraging our AI-driven solutions to ensure precise targeting and enhanced performance. We start with data-driven audience insights and use tools like our VOX Contextual Marketing Suite to deliver relevant ads in brand-safe environments. Our approach combines advanced contextual targeting, hyperlocal targeting, and retargeting strategies to reach the right users at the right time.

To measure success, we track key metrics such as impressions, reach, click-through rates (CTR), and conversion rates. By continuously analyzing these KPIs, we make real-time adjustments to maximize ROI and drive meaningful results for our clients.

How do you see the rise of Connected TV (CTV) and OTT devices changing the advertising landscape?

The rise of Connected TV (CTV) and OTT devices is fundamentally reshaping the advertising landscape by offering brands more precise targeting, real-time data, and premium inventory. These platforms provide a blend of traditional TV’s broad reach with digital precision, allowing advertisers to engage consumers in a more personalized, contextually relevant way. As audience fragmentation grows, CTV and OTT enable brands to reach highly engaged viewers across multiple screens, unlocking new opportunities for cross-device campaigns. For advertisers, this shift means more measurable ROI, enhanced creative formats, and a greater ability to connect with audiences at scale in brand-safe environments.

Following the global trend of increasing popularity of CTV, Hybrid is introducing its innovations in utilizing this approach by incorporating it into complex user communication strategies, enhancing conversion rates at each stage. Another feature of using CTV with Hybrid is the deep tracking and analysis of advertising campaign results, allowing for the evaluation of conversions, associated conversions, and the contribution of the advertising channel to the ROI of advertising budgets.

What are the key factors influencing programmatic ad spend, and how do you forecast future growth?

Considering not only the Indian digital advertising sector but globally, I think the key factor is Increased Internet Penetration, offering advertisers access to a vast audience. That growth also causes a shift in consumer behaviour. They are becoming more digital-savvy, with preferences for personalized and relevant ads.

All of these have been leading to Ad Tech Innovations that enhance the efficiency and effectiveness of programmatic buying. As I’ve mentioned before, at Hybrid we leverage AI-driven solutions to meet the needs of both users and advertisers. For instance, we have our center which is called Iren – AI Hub where we create, train, and improve our algorithms. We analyze the efficiency of our models and the operation of all products based on content recognition algorithms.

Coming down to forecasting future growth, programmatic ad spending in India is expected to grow substantially over the next few years with an average annual growth of 25-30%. Factors such as increased investment in digital infrastructure, enhanced targeting capabilities, and the ongoing shift towards omnichannel marketing strategies will further accelerate this rise.

How do you balance the needs of advertisers and publishers in programmatic advertising?

Balancing the needs of advertisers and publishers in programmatic advertising is crucial for creating a sustainable ecosystem. For example, we prioritize the quality of inventory available to advertisers, ensuring comprehensive brand safety while providing publishers with fair compensation. This fosters trust and encourages advertisers to invest more.

And of course, we have a team of buying experts who regularly monitor campaign performance to make real-time adjustments, ensuring that both advertisers see a return on their investment and publishers maintain their revenue streams.

Access to advertisers budgets and the implementation of the latest technologies allow us to offer publishers well-crafted ad campaigns from leading brands with engaging mechanics within the creatives. On one hand, this ensures brand safety for advertisers, and on the other hand, for publishers as well. Collaborative efforts between publishers and our company not only enhance publisher monetization but also do so in a sustainable and organic way, reducing ad clutter and the intrusiveness of creatives.

What role do you think data management platforms (DMPs) play in programmatic advertising?

Data Management Platforms play a crucial role in programmatic advertising by serving as central hubs for any operations with user data. The new challenge that modern DMP platforms are now facing is compliance with privacy policies.  Platforms need to provide better targeting in the face of new laws like GDPR. We have to operate with less personal data and collect more indirect data on the basis of which we will be able to assign the user to one or another cluster.

For example, at Hybrid we provide our clients with Audience Segmentation opportunities such as Creating custom segments or Lookalike audiences. Moreover, we have our own enriched Hybrid Segments which allows data collecting from multiple sources, to build the relevant and precise segments individually for each client. As a result, we provide users with personalized advertising experiences while advertisers are ensured with efficient campaign performance.

Thus, with the growth of contextual solutions, we are not abandoning the use of DMP, but are taking it to a new level by using more complicated machine learning algorithms and AI frameworks.

How do you address concerns around ad fraud, brand safety, and viewability in programmatic advertising?

At Hybrid, we pay much attention to maintaining trust and effectiveness. We provide advertisers with comprehensive brand safety on a contextual level: contextual filtering through two channels – text and graphic. For example, pictures and text are analyzed and categorized appropriately in categories like adult content, violence, hate speech, etc., and excluded from placement.

To ensure the viewability of the ads, we have been leveraging non-standard display formats with a range of effects and mechanics like WOW effects, the animation going beyond the boundaries of the usual advertising zone. And that makes creatives eye-catching and noticeable, providing high visibility.

As a way to avoid fraud, we cooperate with Protected Media which provides us with reports on resources identified as suspicious traffic. In addition, at Hybrid, we create our blacklists, being constantly enriched.

By implementing these strategies, we aim to foster a more secure and reliable programmatic advertising environment, ensuring that advertisers feel confident about their brand safety.

Also Read: Programmatic PR & Marketing Strategy: The Game Changer for Brand Growth