AdTech Trends in 2024: What to Expect
In the fast-paced world of advertising technology, staying ahead of the curve is crucial. As we approach 2024, it's essential to explore the emerging trends that will shape the AdTech landscape. In this blog, we will discuss the key areas that will impact the industry. From the evolution of programmatic advertising to the rise of mobile advertising, we will discuss the latest developments and provide insights into what to expect in the coming year.
Evolution of programmatic advertising
Programmatic advertising has been a buzzword in the advertising industry for quite some time now. In 2024, programmatic advertising is expected to evolve further, with new technologies and trends emerging to make it more efficient and effective.
One of the major trends that will shape programmatic advertising in 2024 is the use of artificial intelligence (AI) and machine learning. AI-powered creative optimization will become more prevalent, allowing advertisers to create more personalized and relevant ads for their target audience. This will help increase engagement and drive more conversions.
Another trend that will shape programmatic advertising in 2024 is the rise of cross-channel and omni-channel advertising. As consumers continue to consume entertainment on different devices, brands need to utilize various channels, including mobile, video, display, and voice ads, to reach them. This trend grew in popularity in 2023 and will continue to grow in importance next year.
In addition, programmatic advertising will become more transparent in 2024. Advertisers will demand more transparency from publishers and ad tech providers, which will lead to more standardized metrics and reporting. This will help advertisers better understand the performance of their campaigns and optimize them for better results.
Privacy and data compliance trends
The AdTech industry will be facing significant changes in privacy and data compliance regulations in 2024. Advertisers and marketers need to stay informed about the latest trends and regulations to ensure compliance and protect consumer data. In this section we will cover the top privacy and data compliance trends that will impact AdTech in 2024.
The cookieless future is one of the most significant trends impacting AdTech in 2024. With the phasing out of third-party cookies by major web browsers, advertisers and marketers will need to find new ways to target and track consumers. One potential solution is to use first-party data, which is data collected directly from consumers. Another solution is to use contextual advertising, which targets ads based on the content of the web page rather than the user's browsing history.
Data privacy regulations
Data privacy regulations continue to evolve and expand globally. In 2024, 75% of the global population will have their personal data covered under privacy regulations. Advertisers and marketers need to ensure they are compliant with these regulations to avoid fines and legal issues. The General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are two of the most significant data privacy regulations that advertisers and marketers need to comply with in 2024.
To summarize, AdTech trends in 2024 will be heavily influenced by privacy and data compliance regulations. Advertisers and marketers need to stay informed about these trends and regulations to ensure compliance and protect consumer data.
Emergence of connected TV (CTV) and over-the-top (OTT) advertising
As the consumption of TV content continues to shift towards digital platforms, advertisers are adapting their strategies to keep up with the changing landscape. Connected TV (CTV) and over-the-top (OTT) advertising have emerged as two of the most promising channels for reaching audiences in 2024.
CTV refers to devices that connect to the internet and allow viewers to watch video content from over-the-top streaming services. OTT, on the other hand, refers to video content that is delivered over the internet without the involvement of a traditional cable or satellite provider.
One of the key advantages of CTV and OTT advertising is their ability to target specific audiences with greater precision. Advertisers can leverage data to deliver personalized ads to viewers based on their interests, demographics, and viewing habits. This targeted approach can lead to higher engagement and conversion rates.
Another benefit of CTV and OTT advertising is their ability to measure and track performance. Advertisers can analyze metrics such as impressions, click-through rates, and conversions to optimize their campaigns and improve ROI.
Despite the benefits, CTV and OTT advertising also present some challenges for advertisers. For example, the fragmented nature of the CTV and OTT ecosystem can make it difficult to reach audiences at scale. Advertisers must navigate a complex landscape of different devices, platforms, and content providers to effectively reach their target audiences.
Advancements in artificial intelligence and machine learning
Artificial Intelligence (AI) and Machine Learning (ML) are two of the most important technologies driving the AdTech industry. In 2024, these technologies will continue to evolve and change the way advertisers target and engage with their audiences.
Predictive analytics in ad targeting
With the help of AI and ML, advertisers can now use predictive analytics to identify potential customers and target them with relevant ads. Predictive analytics uses historical data to predict future outcomes, allowing advertisers to target users who are most likely to convert. This technology is becoming increasingly popular in the AdTech industry, and is expected to be even more common in 2024.
Personalization has become a key factor in the success of ad campaigns. AI-powered personalization takes this to the next level by using machine learning algorithms to analyze user behavior and preferences, and then tailoring ads to each individual user. This results in a more personalized and engaging experience for the user, leading to higher conversion rates for advertisers.
Real-time bidding enhancements
Real-time bidding (RTB) is a method of buying and selling ad impressions in real-time auctions. In 2024, RTB will be enhanced by AI and ML technologies, allowing for more efficient and effective bidding. AI algorithms will be able to analyze large amounts of data in real-time, allowing advertisers to make more informed bidding decisions and target users more effectively.
Overall, AI and ML will continue to play a crucial role in the AdTech industry in 2024 and beyond. Advertisers who are able to leverage these technologies effectively will have a significant advantage over their competitors.
Rise of mobile advertising
Mobile advertising is not a new trend, but it is one that is set to become even more dominant in 2024. With the continued growth of mobile devices and the increasing amount of time people spend on them, mobile advertising is becoming an essential part of any AdTech strategy.
According to recent studies, mobile advertising is expected to account for over 75% of all digital ad spending in 2024. This is a significant increase from the current figure of around 70%, and it highlights just how important mobile advertising has become.
One of the reasons why mobile advertising is so effective is that it allows advertisers to target specific audiences based on their location, interests, and behavior. This means that ads can be tailored to the individual, making them more relevant and engaging.
Another advantage of mobile advertising is that it is highly measurable. Advertisers can track the performance of their ads in real-time, allowing them to make adjustments and optimize their campaigns for better results.
To take advantage of the rise of mobile advertising, AdTech companies need to ensure that their platforms are optimized for mobile devices. This means that ads need to be designed with mobile users in mind, and they should be optimized for smaller screens and slower internet connections.
Growth of voice and visual search advertising
In 2024, the growth of voice and visual search advertising is set to continue. As more consumers adopt smart speakers and voice-activated devices, voice search is becoming an increasingly popular way for people to find information and make purchases. According to recent studies, it is estimated that, in 2024, 50% of all searches will be voice searches.
Visual search is also on the rise, with more consumers using their smartphones to search for products using images. In fact, 62% of millennials and Gen Z consumers want visual search capabilities when shopping online. This presents a huge opportunity for advertisers to reach consumers at the point of purchase.
To take advantage of this trend, advertisers will need to optimize their campaigns for voice and visual search. This means creating content that is optimized for natural language queries and optimizing images for search engines. Advertisers will also need to ensure that their ads are visible on voice and visual search platforms, such as Amazon Alexa, Google Home, and Pinterest Lens.
In addition to optimizing for voice and visual search, advertisers will also need to focus on creating engaging and interactive ad experiences. This can include using augmented reality (AR) and virtual reality (VR) technologies to create immersive experiences that allow consumers to interact with products in real-time. By creating engaging and interactive ad experiences, advertisers can capture the attention of consumers and increase the likelihood of conversion.
Interactive and shoppable ad formats
One of the most promising AdTech trends for 2024 is the rise of interactive and shoppable ad formats. These formats allow users to engage with ads in new and exciting ways, making them more likely to convert into customers.
Interactive ad formats include quizzes, polls, and games that users can interact with. These formats offer a fun and engaging way for users to learn about a product or service. For example, a quiz could ask users questions about their preferences and then recommend a product that fits their needs.
Shoppable ad formats, on the other hand, enable users to buy products directly from the ad itself. This makes the purchasing process more seamless and convenient for users. For example, a shoppable video ad could allow users to click on a product within the video and be taken directly to the product page to make a purchase.
Both interactive and shoppable ad formats are expected to become more common in 2024 as advertisers look for new ways to engage with their target audience. These ad formats offer a more personalized and immersive experience for users, making them more likely to remember the product and take action.
Cross-channel marketing strategies
In 2024, cross-channel marketing strategies will be essential for successful advertising. Advertisers will need to utilize various channels, including mobile, video, display, and voice ads, to reach customers as they consume entertainment on different devices. This trend grew in popularity in 2023 and will continue to grow in importance next year.
Cross-channel marketing involves integrating multiple channels to deliver a consistent message to the target audience. By using a cross-channel approach, advertisers can reach customers at different touchpoints and increase the chances of converting them into buyers. In 2024, advertisers will need to focus on creating a seamless experience for customers across all channels, from online to offline.
One of the benefits of cross-channel marketing is that it allows advertisers to collect data from different sources and use it to personalize their ads. By analyzing customer behavior across different channels, advertisers can gain insights into what motivates their customers to buy and tailor their ads accordingly. For example, if a customer has shown interest in a particular product on social media, an advertiser can retarget them with a personalized ad on another channel.
To create a successful cross-channel marketing strategy, advertisers will need to invest in the right technology. They will need to use tools that can track customer behavior across different channels and provide insights into the effectiveness of their campaigns. Advertisers will also need to ensure that their ads are optimized for each channel and that they are delivering a consistent message to their target audience.
The future of AdTech is bright
2024 will be both a time of innovations and struggles in the advertising technology industry. With new opportunities for targeting, marketing optimization, and personalization that are supported both by AI and programmatic, publishers and advertisers have remarkable opportunities to engage customers.
At the same time, it comes at a price: we need to be wary about the privacy of the data, ad fraud, and transparency. Navigating the constantly changing marketing landscape has become more difficult, and advertisers may experience some turbulence due to emerging data privacy regulations and limitations.
The trends discussed are very significant; but it is up to advertisers to find their own, unique path. By keeping up with emerging trends and leveraging the power of advertising technology, marketers can navigate this ever-evolving landscape and unlock new possibilities for success.