Given the dynamic and ever-evolving nature of the advertising technology landscape, businesses that wish to stay ahead of the competition must now learn to adapt by embracing the latest ad tech on the market. Now is the perfect time to transform your future.
If you’re still unsure whether it’s necessary to embrace new advertising technology tools and techniques in 2024, the following stats should provide the clarity you require;
- The global ad tech sector is growing with a CAGR of 12.91%.
- An average American sees an estimated 4-10,000 ads per day.
- The global ecommerce market is estimated to be worth around $6.3 trillion in 2024.
- 51% of respondents admit adverts influence their buying decisions.
- Custom loyalty is down 12%, with outdated ad strategies often contributing to it.
However, understanding that you need to recognize the challenges and opportunities presented by the evolving ad tech landscape is one thing, but knowing how to navigate this arena is another. Here are the top five advertising technology trends that can shape your strategy in 2024 and beyond:
1. Shift to First-Party Data and Alternative Solutions to Third-Party Cookies
A conscious shift towards increased data protection has played a central role in the changing landscape of advertising tech over the past few years. However, the fact that Google has confirmed it will phase out third-party cookies by the end of 2024 has increased the pressure. Frankly, any business wanting to stay relevant beyond this year must look for alternative solutions as a priority.
When looking at alternatives to third-party cookies, advertisers must focus on;
- Zero-party data – information customers happily provide (such as filling out forms) in return for a better customer experience.
- First-party data – information that comes courtesy of the data you’ve collected during client interactions with the business.
Inviting customers to provide zero-party data will help companies gain valuable consumer insights, which is why a lot of advertising tech will focus on direct outreach to the client.
It should also be noted that Google is turning its attention to Topics, which focuses on interest-based targeting and using their browsing habits rather than their demographic data.
Therefore, advertisers will want to build a strategy that chooses the right keywords and content to ensure that ads are shown to the intended consumers. As well as modernizing the ad targeting strategies, it should reshape data tracking across all industries.
2. AI-Driven Revolution in Advertising
Artificial Intelligence, otherwise known as AI, has been another hot topic of business conversations in recent times. Moreover, research shows that 83% of companies claim that AI is a top priority in their business plans. Unsurprisingly, advertising tech is one of the areas where an AI-driven revolution is quickly altering mindsets and models.
Throughout 2024, businesses will likely use AI in two ways;
- AI-generated content – which allows advertisers to add content marketing to their repertoires or create a greater volume of industry-specific content.
- AI-powered advert placements – predictive analytics and big data can help reshape ad strategies to optimize effectiveness and cost-efficiency.
With AI-powered advertising tech, it is possible to revolutionize the way that we build detailed consumer profiles and subsequently target them at the right stage of the consumer journey.
Meta’s AI Sandbox is one example of a powerful AI initiative that can use predictive analytics to send personalized ads to individual consumers depending on their behaviors. This means that they will see content and receive promos capable of influencing buying habits.
While there are ethical considerations surrounding AI-generated display ads and video ads, such as data privacy and bias, companies that navigate this well will achieve great results throughout 2024 and beyond.
3. Rise of Contextual Advertising and Video Ads
The ability to target specific audiences has been one of the key reasons behind the growing success of digital ads, but the changing landscape regarding issues like data privacy and third-party cookies has moved the goalposts. In 2024, advertising technology must aim to acknowledge changing targeting practices. Contextual advertising is one of the most noteworthy developments.
Research shows that 79% of consumers were more comfortable seeing contextual ads than behavioral ads. Contextual ads are;
- Backed by machine learning – ensuring that elements like the webpage content or geographic location influence which ads are shown to the visitor.
- Personalized – due to the nature of linking ads to the content on a page, ads are more likely to resonate with the person and hit them at the right time.
Contextual ads can also extend to retail media networks, which is something advertising technology experts should look at. Crucially, they should open their eyes to the potential of video advertising not least due to the impact of faster internet speeds and social media.
The average time spent by consumers watching video ads continues to grow each year while they also remember more of the brand message compared to other ad types.
Advanced video advertising technology now also enables advertisers to add interactive shoppable features that direct consumers directly to a product or relevant info.
4. Increase in DOOH and Programmatic DOOH
Digital Out-of-Home (DOOH) advertising is one of the fastest-evolving types of modern advertising. It is shown that 62% of consumers notice digital billboards while they are also spending more time outdoors after the pandemic. As far as ad tech geared towards local advertising in the physical world is concerned, this is one of the most effective and popular choices. Display panels and digital shop signage are great options.
DOOH ad campaigns can fall into two main categories;
- Standard DOOH – when digital ad campaigns are presented to all audiences, usually contextualized by the placement of the ad.
- Programmatic DOOH – advanced digital campaigns in which dynamic ads are shown depending on who is in the vicinity at any given time.
Programmatic DOOH has naturally become very popular because it allows for truly tailored services. This can target different audiences depending on the time of the day or other influential factors. In turn, effectiveness levels can increase.
In an ever-evolving landscape, the need for advertising tech to hit the right people at the optimum moment is essential as it can encourage them to convert the sale ASAP.
For this reason, a greater focus on this aspect of advertising technology is certain to follow throughout the rest of 2024 and beyond.
5. Audio and Connected TV (CTV)
Connected TV (CTV) and digital audio are now major drivers in ad spend. Firstly, CTV overtook traditional TV viewership for the first time in 2023, so companies will look to capitalize on this with ad tech that taps into the opportunity to provide a personalized advertising experience. Real-time data analytics also mean that ads can target users. Of course, it fits with contextuality linked to the content too.
Two main types of ads are;
- Interactive ads – they are shown to the user, giving them the option to take a specific action like moving directly to a product page.
- In-stream ads – they run within the video or audio content itself and target the users who consume this type of content.
CTV and audio ads are particularly effective for retargeting leads, not least when ads are found within recurring content – such as a series. It works particularly well within an omnichannel approach and is set to play a big role in growing ad tech spend.
Advertisers can appreciate that this has become one of the most exciting opportunities for advertising, not least thanks to the growing capabilities of data analytics.
As this landscape continues to evolve with interactive elements and the chance to have different ads play during the user’s journey, 2024 is an exciting time for CTV.
Advertising technology is evolving at a rapid pace and only companies that are prepared to adapt will continue to succeed by engaging their target audiences. By using first-party data along with modern platforms like DOOH and CTV, it is possible to achieve far better results – especially when driven by context and modern tools like AI.
To learn more about successfully navigating the advertising tech arena, get in touch with our team today.