As we bid farewell to 2023, the digital marketing playground requires brands to reassess their strategies and reallocate their digital spend for the upcoming year. In a world where consumer behaviors, needs, and demands are constantly in flux, staying adaptive and up-to-date with emerging trends is crucial for marketers.
Let’s take a look at where brands are spending their digital coins in 2024.
1. Contextual video ads
Video content continues to dominate online platforms, capturing the attention of approximately 92% of internet users globally. In 2024, contextual video ads are poised to take center stage. These ads leverage advanced AI systems to analyze dialogue, detect objects, and apply deep meta-data filters for precise contextual placements within videos. This personalized approach ensures that ads align with the viewer’s interests or the content they are currently engaged with.
Moreover, brand safety is a crucial consideration in the digital advertising landscape. Contextual targeting minimizes the risk of ads appearing next to unsavory or inappropriate content by allowing brands to set parameters such as negative keywords and preferred channels. This proactive approach protects the brand’s reputation.
2. Connected TV (CTV)
As the fastest-growing segment in video streaming, CTV is expected to experience a 12.1% increase in 2024, reaching $33 billion in global ad spending. Brands are seizing the opportunity to reach specific households based on viewing habits, both online and offline. Combining CTV with mobile ads allows for retargeting and conversion purposes, unlocking new and relevant audiences. Advertisers are encouraged to shift some linear TV budgets to CTV, creating a seamless cross-channel strategy.
2023 witnessed a revolution in CTV advertising for several reasons. Namely, CTV ad breaks are shorter, more relevant, and of higher quality compared to linear TV ads, leading to increased user receptiveness. The engagement and attention CTV provides contributes to users actively searching for products and making purchases, making it a lucrative space for advertisers.
Five key factors contribute to CTV’s dominance:
- High engagement and attention: CTV offers a highly engaged audience focused on content, reducing ad-skipping and increasing brand recall.
- Targeted advertising: The ability to target specific audiences based on demographics, interests, and behavior enhances the precision of CTV advertising.
- Cost-effectiveness: CTV advertising is often more cost-effective than traditional TV advertising, allowing advertisers to pay for impressions served to specific audiences.
- Growing audience: The CTV audience is rapidly expanding, providing advertisers with opportunities to reach a wider audience.
- Better measurement and attribution: Real-time tracking of ad views and better attribution modeling contribute to increased transparency and accountability in CTV advertising.
3. Geo-targeted ads
Mobile ads remain a powerhouse in digital marketing, projected to account for 69% of total ad spending by 2027. To enhance the efficiency of mobile ad campaigns, brands are incorporating geotargeting. This strategy allows advertisers to tailor their messages based on specific locations, increasing relevance and engagement. Interactive formats, such as couponing ads, AI agents, and VR videos, further enhance the impact of geo-targeted mobile ads, attracting a more responsive audience.
These ads, powered by technologies like GPS, Wi-Fi, and IP data, provide a precise and efficient means of reaching consumers at the right time and in the right place. With the majority of global search queries originating from mobile devices, the importance of tailoring campaigns to mobile and smartphone users cannot be overstated.
The integration of ‘near me’ keywords and the strategic use of geo-targeting features allow advertisers to tap into user intent and deliver messages that resonate seamlessly.
4. Digital out-of-home ads (DOOH)
With an estimated ad spending of $45 billion by the end of 2024, DOOH advertising is undergoing a transformative phase. Precision and location-based targeting, coupled with enhanced traffic data, enable brands to reach their audience with unprecedented accuracy.
The introduction of DOOH has revolutionized outdoor media, offering a level of precision and analytics previously unimaginable. While traditional OOH excels in expanding brand awareness and executing impactful one-off ads, DOOH is positioned as the ideal choice for targeted campaigns, dynamic ad creatives, and measurable results.
The growth statistics further underscore DOOH’s significance, with an impressive 82% ad recall and a remarkable +24.2% industry growth in 2023. Projections indicate that by 2027, DOOH is anticipated to command 45% of total OOH advertising spend, reaffirming its status as the fastest-growing advertising channel.
5. E-commerce and social media advertising
The convergence of online shopping and social media platforms presents a significant opportunity for brands. Successful examples, such as Beardbrand and Dollar Shave Club, emphasize the importance of engaging content, rich-media ads, and dynamic retargeting.
Moreover, in 2024, businesses are expected to partner with micro and nano influencers on social media. According to a 2023 social media marketing report, 80% of marketers collaborate with influencers under 100k followers, while only 16% engage with celebrities exceeding 1 million followers.
What sets these smaller influencers apart is the profound trust their followers place in their opinions, creating a friend-like connection. This trend signifies a shift towards more authentic and relatable marketing strategies, allowing brands to connect with specific audiences more personally and effectively.
6. In-game ads
In-game ads are projected to reach $130 billion in 2025. Marketers are exploring innovative ways, such as blended in-game advertising, to seamlessly integrate ads into the gaming experience. By aligning ads with the game environment and incorporating clear calls to action, brands can enhance their visibility and loyalty among gamers.
7. AI-powered marketing
Artificial intelligence continues to be a driving force in digital marketing, with its influence set to rise in 2024. Brands are leveraging AI to personalize content, optimize ad targeting, and automate repetitive tasks.
AI in digital marketing is progressing, enhancing user experiences through personalized content and predictive analytics.
Concurrently, AI-powered ads, harnessing machine learning algorithms, play a crucial role in delivering personalized content. The automation landscape, now elevated by AI, effectively engages audiences by analyzing real-time data. AI’s prowess extends to in-depth consumer behavior analysis, empowering brands to tailor strategies with precision. In content creation, AI streamlines processes, generating targeted content for heightened engagement and conversions.
Looking ahead, the role of AI in marketing, encompassing virtual assistants and chatbots, is poised to be a game-changer for brands seeking a competitive edge.
Finishing Thoughts
As we enter 2024, the landscape of digital marketing undergoes strategic transformations. Brands prioritize precision through contextual video ads, leverage the surge of Connected TV, and enhance consumer engagement with geo-targeted mobile ads.
Digital out-of-home ads redefine precision in outdoor advertising, while the integration of e-commerce and social media emphasizes authenticity. In-game ads innovate the gaming experience, and artificial intelligence solidifies its role, offering personalized content and targeted strategies.
As brands navigate this evolving terrain, aligning with these trends becomes paramount for a competitive edge in the dynamic world of digital marketing.