Forget about just “doing” an advertising campaign – in today’s dynamic landscape, embracing trends is the key to crafting truly outstanding experiences that resonate with audiences. Early adopters who embraced the latest in AdTech have already witnessed a surge in brand presence, while those who lagged behind faded into obscurity.
The advertising landscape is exploding with fresh opportunities, fueled by an ever-expanding AdTech market projected to reach a staggering $767.83 billion by 2027 (Technavio). Digital ad spend alone is predicted to surge by $523.45 billion from 2021 to 2026 (Technavio).
With such dynamic growth on the horizon, brands and advertisers can’t afford to be caught flat-footed. To thrive in 2024, they need to be equipped with the knowledge of the key trends that will reshape the industry. So, buckle up, because we’re about to dive into the top 5 AdTech trends that will roll the advertising world in the coming year.
1. Artificial Intelligence will come up with advancements
AI has swooped in, not just to speed up advertising processes, but to entirely reshape them. It’s taken the wheel in analyzing consumer behavior, diving deep into data oceans to surface the most valuable insights. And this trend shows no signs of slowing down.
With the fading light of third-party cookies, AI’s importance only intensifies. It empowers advertisers with laser-sharp targeting, enabling them to deliver personalized ad experiences that resonate with users. The AI-powered advertising is also compliant with the privacy-focused guidelines set by the authorities.
In essence, AI isn’t just a handy assistant anymore; it’s the roadmap to achieving pinpoint accuracy and forming meaningful connections with your audience. Embrace its power, and prepare to navigate the advertising landscape with unprecedented precision in 2024.
2. CTV continues to be in surge
In the rapidly evolving landscape of Connected TV (CTV), projections indicate substantial growth from $14.22 billion in 2022 to an estimated $18.29 billion in 2024. This surge is accompanied by an expansion in inventory, with major players like Netflix and Disney+ gearing up for ad-supported tiers.
The CTV realm remains a dynamic and exciting space for exploration, and advertisers have only begun to tap into its potential. While challenges in CTV supply may persist in the near future, there is considerable untapped potential in Over-The-Top (OTT) and Fast channels.
Looking ahead, predictions for the upcoming year suggest a continued shift in consumer viewing behavior away from traditional linear TV. CTV advertisements are poised to venture into new formats, aiming to provide a more personalized ad experience. Furthermore, these innovative ad formats offer consumers opportunities to engage and interact with the ads, marking a significant evolution in advertising strategies within the CTV domain.
Also Read: Beyond the Horizon: Forecasting Major Shifts in 2024’s Video Ad Landscape
3. Increased dependency on first party cookies
Over the past decade, advertisers heavily relied on third-party cookies for tracking user data. However, with the phase-out of these cookies, there is a notable shift towards privacy-focused data collection methods.
According to recent research, 62% of marketers are proactively engaging in strategies centered around the use of first-party cookies. This involves investment in tools designed to collect and manage user information. Notably, since this information is willingly shared by users, it is considered a secure and ethical approach for advertisers to leverage.
4. Advanced Contextual Advertising will take the center stage
Contextual advertising has been in the limelight since Safari and Morzilla banned the use of third-party cookies. Well, placing ads based on context has provided advertisers a boost in revenue to the advertisers from the ads that were based on consumer behavior.
This trend will continue to rise with the projection of reaching $335.12 US dollars by 2026. Advancement in technology like semantic analysis and natural language processing will swiftly boost the performance because AI-powered contextual targeting will help advertisers in reaching the untapped market which is relevant and suitable for their brands.
5. Supply Chain Optimization
The advertising ecosystem is intricate, involving various entities such as advertisers, publishers, agencies, ad networks, and data providers. Understanding the distinct roles of each participant can be challenging. However, addressing concerns within the ecosystem has led to a discernible trend—supply chain optimization.
In response to challenges and complexities, there has been a concerted effort to enhance transparency and efficiency within the advertising supply chain. This optimization process involves identifying and eliminating components that do not significantly contribute value to the overall advertising process. Essentially, the industry is streamlining operations by removing unnecessary intermediaries or steps that may hinder effectiveness or transparency. This shift towards a more streamlined supply chain is aimed at creating a more efficient, transparent, and value-driven advertising ecosystem.
Conclusion
The advertising landscape is a dynamic cosmos, and 2024 promises to be a year of exhilarating exploration. Those who chart their course by the light of emerging trends will not only survive, but thrive. As we hurtle towards the future, Brands and advertisers will embrace the transformative power of these AdTech trends to thrive throughout 2024.
