Road ahead for Programmatic in 2025: Privacy-First and Blockchain-Driven - Part 2

As the digital advertising industry approaches a post-cookie era, 2025 marks a pivotal year for programmatic advertising. With the demise of third-party cookies, the challenge of balancing privacy with precision targeting and accurate measurement has never been greater. Brands, publishers, and adtech platforms are now racing to adopt privacy-centric solutions that can maintain effectiveness while respecting evolving data regulations and consumer expectations.

So, what innovative strategies and technologies are poised to become the new industry standards for programmatic advertising in 2025? In the second part of this two-part series, Adgully explores the future of targeting and measurement in a privacy-first world.

Also read:

Road ahead for Programmatic in 2025: An AI-Powered Odyssey – Part 1

Privacy-centric targeting

The demise of third-party cookies is accelerating the shift toward a privacy-first programmatic ecosystem, says Shivangi Singh, Growth Director, Streaming Monetization, Moloco.

“At Moloco, we recognize that this transition presents both challenges and opportunities. I envision privacy-centric solutions such as first-party data strategies, contextual targeting, and clean room technologies becoming the new norm. First-party data, enriched through partnerships and secure integrations, will take center stage. Clean rooms will allow advertisers and publishers to collaborate securely while respecting user privacy, enabling better attribution and campaign insights. I also anticipate advancements in cohort-based targeting (like Google’s Topics API) and consent-driven frameworks, which will ensure compliance with evolving privacy regulations,” says Singh.

According to her, measurement will rely on probabilistic modeling and AI-driven attribution methods, ensuring advertisers can gauge performance accurately without compromising user privacy. “At Moloco, our efforts are focused on aligning with these shifts, helping partners transition to privacy-first solutions that deliver performance without sacrificing trust.”

Shashidhar Sharma, Head of Programmatic, GroupM Nexus, India, points out that with the gradual phasing out of third-party cookies, the marketing industry is rapidly adopting privacy-centric targeting and measurement solutions.

According to him, by 2025, several key strategies and technologies are expected to become industry standards:

• First-Party Data: First-party data, collected directly from customers with their consent, will become the cornerstone of privacy-compliant targeting and measurement.
• Contextual Advertising: This method targets consumers based on the context of their content consumption, aligning ads with relevant content and user interests.
• Identity Solutions: Publisher-provided identifiers (PPIDs) and universal identifiers (for example, UID 2.0) offer a means of identifying individuals online without using third-party cookies.
• Google’s Privacy Sandbox: This initiative aims to create technologies that protect people’s privacy online while enabling companies to serve relevant content and advertising without third-party cookies.
• AI-Driven Performance Marketing Tools: Platforms like Alphabet’s Performance Max, Meta’s Advantage+, TikTok’s Smart+, and Pinterest’s Performance+ are leading the way in AI-driven performance marketing tools, which are expected to play a significant role in the future of programmatic advertising.

“GroupM prioritizes privacy-centric solutions and is actively developing and implementing strategies that leverage first-party data, contextual targeting, and identity solutions. We are also closely monitoring the development of Google's Privacy Sandbox and other industry initiatives to ensure our clients have access to the most effective and privacy-compliant tools,” he adds.

“It’s important to note that Google had announced it no longer plans to phase out third-party cookies from its Chrome web browser, and will instead introduce a way for users to choose how they want to be tracked across Google’s search products. However, publishers should still take stock of their identity strategies and prepare for a future where identity will increasingly shift to the sell-side. Solving for identity will require a range of solutions working in concert to convey addressable audiences and implementing these solutions will require a portfolio-based approach – one in which data is passed through the bidstream in a safe way,” explains Gavin Buxton, Managing Director, Asia – Magnite.

Buxton reckons that we’re also beginning to see a resurgence in contextual advertising, and he believes this will continue into 2025.

“Driven by increasing privacy concerns and technological advancements in AI, advertisers are prioritizing content relevance in CTV environments. By leveraging advanced metadata and AI-powered insights, brands can create more harmonious ad experiences that respect user privacy, enhance viewer engagement, and deliver a more meaningful user experience,” he adds.

“Magnite has been making strides in this regard with our Magnite Access suite, a collection of audience and addressability tools built for publishers and buyers to maximise the value of their data assets. Magnite Audiences, which sits within the Magnite Access suite, empowers publishers to unlock the full value of their audiences, while helping buyers connect with high-value audiences at scale. Standardised, scalable segments based on publisher first-party data enable publishers to monetise their audiences and protect their user data, providing the value and scale buyers want to achieve their campaign goals across key demographics,” says Buxton.

Data privacy and user consent are at the forefront of a fundamental shift in programmatic advertising, and 2025 will mark a pivotal moment for the industry, points out Vasuta Agarwal, Chief Business Officer, Consumer and Performance Advertising, InMobi.

“As third-party cookies become obsolete, the focus is shifting toward privacy-centric solutions that prioritize user trust while maintaining the effectiveness of campaigns. Privacy-first methodologies and the strategic use of first-party data are becoming essential for brands to create meaningful and compliant engagements. Contextual targeting is emerging as a key approach, ensuring relevance by aligning ads with the content and environment rather than relying on user-level tracking. Additionally, privacy-compliant identifiers, such as unified ID frameworks and clean room technologies, are enabling brands to track and target audiences responsibly across platforms. At InMobi, we are deeply invested in these advancements, offering programmatic solutions that balance cutting-edge innovation with ethical practices. Our commitment is to not only meet the evolving demands of advertisers but also ensure that transparency and trust remain at the core of how brands connect with their audiences in this new era of advertising,” says Agarwal.

Mathieu Roche, CEO and Co-Founder, ID5, reckons that we’ve almost reached a critical tipping point, where there are more alternative IDs than cookie IDs. Once Chrome implements the cookie opt-out mechanism we’ll see this reach critical mass and we’ll truly be in a post-cookie world and see this proliferation spread across digital channels.  Roche predicts that in the first six months of 2025, the number of alternative IDs in circulation will be larger than cookie bid requests.

Decentralized platforms

In an industry where opacity, distrust, and ad fraud are persistent challenges, blockchain technology and decentralized platforms are emerging as potential game-changers for programmatic advertising. As brands and publishers strive for greater accountability, how will these advancements redefine trust and safeguard investments in the programmatic space?

One of the lesser-known benefits of encrypted universal identifiers is their ability to enhance ad quality by disintermediating bot and fraudulent traffic, says Caitlin Borgman, ID5, Chief Commercial Officer.

“Using encrypted identifiers for ad targeting and measurement minimizes the ease with which bad actors can easily spoof inventory and hijack audiences because only parties who are licensed to decrypt an ID can access them. Additionally, encrypted IDs prevent data leakage for publishers and media owners, supporting secure data sharing and enhanced user verification throughout the programmatic supply chain,” she adds.

Shivangi Singh points out that blockchain technology holds immense promise for addressing long-standing issues of transparency, trust, and fraud in programmatic advertising.

“By providing an immutable ledger of transactions, blockchain can ensure advertisers and publishers have a shared, verified view of ad delivery, payments, and performance. In my experience working with advertisers, transparency and fraud prevention are recurring concerns, particularly in high-stakes environments like live sports ad serving or when large programmatic spends are involved,” she adds.

According to Shivangi Singh, in the next few years, blockchain could become a foundational layer for programmatic platforms, enabling real-time verification of impressions and clicks, minimizing discrepancies, and reducing fraudulent activity. “Decentralized platforms will also empower smaller advertisers and publishers by levelling the playing field. Smart contracts could automate payments, ensuring timely and accurate settlements between advertisers and publishers. At Moloco, we are exploring ways to integrate transparency tools into our ad-serving products, ensuring our partners have access to a fair and trustworthy programmatic ecosystem,” Singh concludes.

Increased transparency requires collaboration between partners across the whole programmatic ecosystem, opines Gavin Buxton.

“Fostering open communication and shared insights between technology providers, publishers, advertisers, and data partners, can help the industry create more accountable, efficient, and trustworthy digital advertising processes that benefit all stakeholders. Supply Path Optimization (SPO) is critical to this effort. Forming relationships with fewer, but more trusted technology partners who can provide comprehensive insights into inventory quality, buyers can gain deeper visibility into the programmatic supply chain. This approach not only helps mitigate risk but also enables more strategic, data-driven decision-making that can optimize media spend, reduce waste, and ensure a greater degree of brand safety,” he concludes.

According to Shashidhar Sharma, blockchain technology holds immense potential to enhance transparency, trust, and fraud prevention in the programmatic ecosystem by providing:

• Immutable Audit Trail: Blockchain creates an irrefutable record of ad impressions, clicks, and conversions. This verifiable ledger provides a clear audit trail for all parties involved, minimizing disputes and ensuring fair value exchange.
• Increased Trust: The transparency and immutability of blockchain foster trust between advertisers and publishers. Both parties can rely on accurate data, reducing the potential for fraud and manipulation.
• Fraud Prevention: Blockchain’s decentralized nature and cryptographic security make it difficult to manipulate data. This can significantly reduce ad fraud and ensure campaign budgets are spent effectively.
• Automated Payments and Workflow: Blockchain-enabled smart contracts can automate payments between advertisers and publishers based on verified campaign performance. This streamlines the workflow and reduces administrative overhead.

“GroupM recognizes the transformative potential of blockchain technology and is actively exploring its applications in programmatic advertising. We are committed to all solutions that enhance transparency, build trust, and combat fraud within the ecosystem,” concludes Shashidhar Sharma.

The evolution of programmatic advertising in a post-cookie world hinges on embracing privacy-centric solutions and blockchain-powered transparency. As first-party data, contextual targeting, and identity solutions become the new norm, brands and publishers must adapt to these innovations to remain effective and compliant. Simultaneously, blockchain and decentralized platforms promise to redefine trust and fraud prevention, offering a more transparent and secure ecosystem. By adopting these technologies and fostering collaboration across the industry, stakeholders can ensure a future where precision, privacy, and trust seamlessly coexist, driving sustainable success in the programmatic landscape.

Also Read: Road ahead for Programmatic in 2025: An AI-Powered Odyssey – Part 1