In the dynamic realm of advertising, the year 2024 promises a transformative journey marked by evolving trends and strategic shifts.
According to Mediaocean’s 2024 Advertising Outlook Report, social media, digital display/video, and connected TV (CTV) stand out as the frontrunners, captivating the attention of marketers with an impressive 69%, 65%, and 56% expressing their intent to increase spending on these channels, respectively.
This report serves as a compass, guiding industry enthusiasts through the anticipated trends shaping the media and advertising landscape. Despite grappling with lingering macroeconomic challenges, the report emanates an overall sense of optimism within the advertising industry. Notably, omnichannel marketers emerge as confident players, poised for an active year, reinforcing their commitment to maintaining or increasing spending across a diverse spectrum of channels.
Understanding the broader trends that influence ad spend is imperative for informed decision-making, and our research indicates a sweeping wave of optimism across the industry as we step into 2024. Marketers are gearing up for an active year, with a substantial majority expressing their intent to either maintain or increase spending in every channel.
What stands out is a commitment to a diverse mix of media channels, reflecting the industry’s shift towards omnichannel execution over the past few years. Notably, the only channels witnessing more respondents decreasing investment compared to increasing are Print and TV.
While each advertising channel maintains its unique significance, specific platforms are poised for exceptional growth in the coming year. Social media, digital display/video, and CTV emerge as the frontrunners, experiencing a continued surge in investment that mirrors consumer engagement and time spent.
Rising significance of Brand Advertising
In a significant shift, businesses are placing a considerable emphasis on the stable component of their advertising capabilities and media investments. This renewed focus on brand advertising aligns seamlessly with the positive market outlook highlighted in our earlier insight.
As the global economy rebounds post-COVID, brand advertising budgets are experiencing a resurgence. This resurgence reflects a renewed confidence in the market, with seasoned marketers recognizing that investing in the brand is not merely a short-term tactic but a strategic move for the long-term health of the business.
Survey data consistently underscores the pivotal importance of measurement in these advertising strategies. A significant 52% of participants believe that measurement and attribution are critical investments for 2024. Moreover, 43% express concerns over the decline in their ability to measure the effectiveness of campaigns on tech platforms and the open web. This emphasizes the growing need for reliable metrics and analytics to navigate the evolving advertising landscape effectively.
Metaverse takes a Backseat as AI Dominates
A standout trend on the horizon is the emergence of Generative AI, previously off the radar in our 2022 survey. A staggering 57% of respondents now recognize its importance, aligning with the rise of applications like ChatGPT and other platforms built on large language models. This surge in interest has prompted a reallocation of resources, with companies such as Meta shifting their focus from heavy investments in the Metaverse to AI.
Despite survey metrics suggesting a waning interest in the Metaverse, it’s crucial to note that innovations and use cases continue to abound. High-profile instances, such as Mark Zuckerberg and Lex Fridman recording an entire podcast using photorealistic Kodak avatars, showcase the creative potential of Metaverse technology.
The Meta Quest 2, a robust platform for VR, and Apple’s Vision Pro headset, seamlessly blending digital and physical realms, underline the ongoing vitality of the Metaverse. As we navigate this evolving landscape, our survey’s journey tells a tale of trends, shifts, and an enduring quest for consumer engagement.
While the Metaverse may be experiencing a dip in interest, it remains resilient. Meanwhile, with Generative AI taking center stage, 2024 is poised to be the year it breaks into mainstream consciousness, marking a significant turning point in consumer technology trends. As the industry adapts to these changes, it’s evident that the only constant is the perpetual quest for innovative and engaging strategies to connect with consumers in this dynamic advertising landscape.
“There is a lot to dissect in this year’s survey with regard to the marketing funnel and the consumer journey. For instance, even though direct-response campaign performance remains a top priority for marketers tasked with delivering tangible ROI, brand advertising is gaining momentum,” said Aaron Goldman, Chief Marketing Officer at Mediaocean. “Companies are taking a longer-view approach to driving customer loyalty and lifetime value. Even so, marketers are very aware that a prevalent gap remains between creative and media execution. If not addressed, this gap negatively impacts team workflow, messaging relevance, and market intelligence. So, resolving this gap and embracing the tools and systems required for doing so absolutely will be the largest growth opportunity for brands this coming year. ”
“2024 will be a most consequential year and deliver unprecedented innovation in the advertising industry,” said Bill Wise, Chief Executive Officer at Mediaocean. “As we navigate the challenges of data deprecation, antitrust regulation, and privacy protection, there is a massive opportunity for brands to reduce their reliance on Big Tech and leverage independent technology for everything from media buying to ad serving to omnichannel measurement. Embracing the scaled tools and systems required for this alignment will be the key to driving customer loyalty and lifetime value.”
Visit https://www.mediaocean.com/the-2024-advertising-outlook-report to download the complete Mediaocean 2024 Advertising Outlook Report.