Perspective - The future of advertising technology and its impact on marketers 

By Jessica Miles | 23 November 2023
Jessica Miles.

The AdNews end of year Perspectives, looking back at 2023 and forward to next year.

The advertising technology (adtech) industry constantly evolves, and keeping up with the latest trends can be challenging.

However, by understanding the trends likely to shape the industry in the future, advertisers can be better prepared to reach their target audiences and achieve their marketing goals.

Here are some of the top adtech trends that are expected to shape the industry in 2024.

Artificial Intelligence (AI) is poised to revolutionise the digital advertising industry and every other in 2024 and beyond

AI is revolutionising the digital advertising industry from personalising ads to targeting audiences, measuring effectiveness to preventing ad fraud and creating engaging content.

AI enables advertisers to improve their campaigns and deliver better results, one of the most significant impacts of AI on digital advertising is the ability to personalise ads to individual users and tailor their ads to be more relevant and engaging, leading to higher click-through and conversion rates.

This helps to reduce wasted ad spend and improve the performance of campaigns. AI is also transforming how advertisers measure the effectiveness of their campaigns by analysing user interactions with ads, such as clicks, views, and conversions, advertisers can get a more accurate picture of how their campaigns are performing.

This information can then be used to optimise campaigns for better results. As AI becomes more affordable and accessible, more and more digital marketers are expected to adopt it in the coming years

Enhanced Focus on Efficient and Responsible Media

Advertisers are increasingly looking for ways to measure the impact of their campaigns against key KPIs and the environment. This is leading to the development of new metrics that measure the carbon footprint of advertising.

Advertisers are also looking for ways to ensure that their ads are not harmful to users. This is leading to the development of new technologies that block harmful ads. Consumers are becoming more concerned about the environmental impact of their purchases and demanding more sustainable products and services, and this could lead to advertisers being more transparent about their supply path and sustainability practices of the brands they represent.

We’ll see an enhanced focus on quality impressions, as it is responsible media, which is great for People, Planet and Pocket (ad spends).

The increasing importance of privacy

With privacy concerns on the rise, 83% of consumers want more control over their personal information, according to PwC.

Marketers will prioritise privacy-centric practices, including transparent data collection, explicit consent, and secure data handling, to build trust and ensure compliance with privacy regulations. As users become more aware of their rights, advertisers must find ways to target and measure ads without invading their privacy.

Contextual targeting is a type of advertising that delivers ads based on the context of the content that a user is viewing, and it helps marketers target ads as per consumer mindsets. This is becoming increasingly popular as it offers a more privacy-friendly way to target ads.

Video marketing boom

Video marketing has solidified its position as a powerful channel for audience engagement, and this trend is expected to flourish in 2024.

Marketers increasingly utilise video to narrate captivating brand stories, showcase products, and forge deeper connections with their target audience. Live streaming will experience heightened prominence, enabling real-time interaction and authenticity, as brands host live events, product launches and behind-the-scenes experiences to deliver immersive and compelling content.

The growth of CTV advertising

The shift towards streaming and CTV marketing will continue gaining momentum in 2024.

This is a growing market, as more and more people are cutting the cord and watching TV online. CTV advertising offers several advantages over traditional TV advertising, such as targeting ads more precisely and measuring their effectiveness more accurately.

As consumers increasingly embrace streaming platforms and CTV devices, advertisers will allocate more resources to reach audiences in these digital environments. This will result in increased investments in CTV advertising, with brands leveraging programmatic targeting, data-driven insights, and dynamic ad insertion to deliver personalised and impactful ads to viewers.

Dominance of social commerce

Social commerce is booming and will only become more integrated with social media platforms.

Consumers can purchase products directly from their social media feeds, making buying things they see online more accessible than ever. Brands that want to succeed in this new era of social commerce must focus on creating a seamless shopping experience for their customers.

This includes optimising their social media profiles for sales, creating compelling content that encourages purchases, and using the latest social commerce features to make buying as easy as possible.

By understanding the top adtech trends and how they relate to their responsibilities, CMOs can be better prepared to meet the challenges and opportunities that lie ahead. Marketing and advertising strategies are constantly evolving with technology, as are measurement and optimisation strategies.

It's time to update your strategy and prepare for the year ahead. The key to success is staying current on the latest trends and adapting your strategy accordingly while always keeping the customer in mind. Take advantage of these trends to build stronger brand relationships, boost growth, and stay ahead of the competition in 2024 and beyond.

As the industry continues to evolve, we expect to see even more innovation and new ways to reach increased attention and engagement with consumers. 

Jessica Miles is the Country Manager, ANZ at Integral Ad Science.

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