5 Key Trends Shaping the Future of Advertising
While there’s no shortage of uncertainty as we countdown to 2024, the crystal ball seems to have a few things in focus for the next trip around the sun. From the long-anticipated shift from third-party cookies to first-party data to the harnessing of AI and the evolution of eCommerce, here are five key trends set to shape the future of advertising.
1. The race for first-party data: 2024 is set to be the year of first-party data with Chrome deprecating third-party tracking cookies over 2024, following the lead of other browsers having already implemented similar changes. Advertisers will be focused on strategies to build their own valuable first-party data, built up from purchasing signals tracked via loyalty programs, registered users, CRM and so on.
Advertisers will be turning to publishers to harness their vast contextual and enriched datasets from either registered users or gleaned from the type of content being consumed in real-time. Combinations of both publisher and advertiser data via data cleanrooms have been a topic of interest and will be interesting to see how this is picked up over the year.
The shift promises contextual interest targeting, enabling a more precisely tailored match for advertisers between creative and audiences. The focus on sharper targeting translates into reaching the right audience with specific intent, ultimately, leading to increased conversion rates and effectiveness.
2. Focus on premium ad formats: The ongoing adoption of more premium and effective ad solutions is a growing trend, which is only set to continue from an effectiveness and a user experience perspective. Clients are reporting that campaign budgets can be extended up to seven times more just by using more effective formats.
Advertisers are demanding more premium sponsorship opportunities and publishers are accommodating via a range of high-impact and bespoke formats. This means more curated and higher quality ad experiences on-site, resulting in a longer-lasting impact from awareness to engagement through to conversion. We’re seeing a further development toward solutions overlaying first-party data or contextual insights with premium ad formats. This delivers more personalised and relevant experiences, which are particularly effective for eCommerce.
3. eCommerce to continue upward trajectory: We’re witnessing the take-off of eCommerce across the board, supercharged from the shift during lockdown as businesses of all sizes realised the value of having a direct relationship with their consumers. On top of the sale, eCommerce is allowing advertisers to own the data relating to the customer and the sale, which is a huge factor in the boom.
eCommerce will see sustained growth as advertisers demonstrate a willingness to invest in channels that streamline the conversion process and build that direct line to their customers. We’re seeing a take-up of in-banner transactions, shoppable video, contextual targeting and dynamic eCommerce ads already playing a pivotal role in the transformation.
4. Harnessing AI: AI is quickly moving from a novelty to being embedded within a multitude of platforms to increase effectiveness and revolutionising the landscape, both on the overall marketing function and the specific ways we engage with technology. This includes from a generative perspective of creating content and messaging to getting a better handle on insights and planning, particularly with the abundance of first-party data. The wealth of information from this data will serve as a fertile ground for extensive learning and the development of models tailored to audience insights.
5. Surge in digital outdoor and connected TV channels: In the coming year, brace for a significant expansion in alternative advertising channels, particularly digital outdoor and connected TV. We anticipate substantial growth and innovative strategies as these channels evolve to become pivotal players in the advertising landscape. We have even been seeing clients connecting their digital out-of-home and digital display campaigns with live data, meaning interactions with the digital campaign can be relayed to the digital out-of-home screens – another space to watch.
As we step into 2024, the world of advertising is gearing up for some exciting opportunities for publishers, advertisers and consumers alike. The strong focus on first-party data, the use of AI, the evolution of online shopping, the rise of different advertising channels and the march toward new ad formats are all painting a picture of innovation, integration and adaptability. It's a call for advertisers and publishers to work together, align their strategies with what consumers are looking for and create a landscape where creativity, data insights and modern technology come together for a more engaging advertising experience.
