The coming year is poised to bring about significant transformations to the digital advertising industry driven by innovative technologies and changing consumer expectations.
For businesses aiming to capture the attention of their target audiences, understanding these technologies, consumer behaviors, and industry shifts can help guide decisions in the months to come. From the continued rise of AI to the evolution of privacy regulations, 2024 is poised to be a pivotal moment in the relentless evolution of the digital ad market.
Performance TV Takes Center Stage
One of the most notable trends in 2024 will be the rise of "Performance TV." The initial phase of early adopters is coming to an end, and major brands are recognizing the potential of connected TV (CTV) for achieving KPIs similar to those seen in search and social advertising. This shift is driven by the convergence of CTV capabilities and low-cost creative platforms, which will encourage a significant influx of new TV advertisers migrating from other digital channels.
The adoption of advanced CTV measurement tools will likewise be a game-changer in 2024. These tools will be anchored in the concept of 1:1 TV ad exposure-to-outcome, complemented by advanced attribution analytics that identify the discrete impact of TV ads on conversions. Tools such as incrementality reporting, halo impact studies and more will allow advertisers to understand the full-funnel impact of their TV campaigns. This newfound clarity will showcase the power of TV as a medium capable of delivering measurable bottom-of-funnel results in addition to the obvious awareness impact of TV..
To succeed in 2024, brands, advertisers, marketers, and advertising technology companies are advised to embrace a "test and learn" approach when it comes to TV advertising. This strategy mirrors the early days of search and social advertising, where modest budgets are allocated to test campaigns against performance KPIs such as Return on Ad Spend (ROAS) and Cost per Outcome (CPO). By closely evaluating the initial results and partnering with trustworthy collaborators who offer radical transparency, advertisers can optimize and scale their TV campaigns effectively.
The Role of Artificial Intelligence
Artificial Intelligence (AI) is poised to play a significant role in advertising in 2024, particularly in marketing and creative aspects. AI-powered tools can automate content-marketing tasks and even facilitate creative development based on existing assets, as exemplified by companies like Waymark. The ability to create high-quality TV ads quickly and affordably based on social and website assets opens up new avenues for brands that couldn't previously afford TV advertising.
TV advertising is becoming more democratic, but the precise path forward is unclear. However, the emergence of tools and managed services with direct platform integrations is expected to make TV advertising more accessible to a wider range of businesses. This could potentially tap into a massive audience segment that has primarily focused on search and social advertising.
The digital advertising landscape is poised for an exciting and transformative year ahead. From the rise of performance TV and the importance of data privacy to the growing significance of AI and machine learning, businesses must remain agile and adaptable to stay competitive.
By embracing these trends and leveraging the latest technologies, companies can not only navigate the evolving digital advertising landscape but also unlock new opportunities for growth. As the industry continues to evolve, those who stay ahead of the curve and innovate in their strategies will undoubtedly be the ones to thrive.
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Jason Fairchild is CEO of tvScientific