Major Advertising Trends in 2024: Retail Media and Generative AI
Nine major advertising trends in 2024 show that, despite the hectic international panorama with two severe international conflicts and a continued rise in prices, advertisers are optimistic regarding the significant growth possibilities that are expected this year in the commercial advertising sector.
All this is thanks to more controlled inflation, estimates of an increase in advertising investments above 5%, celebration of sporting events that could help reactivation, as well as AI that will drive an era of innovation and efficiency.
In this sense, the area includes nine major advertising trends 2024 related to marketing, measurement, retail media, investments, the digital world, and the relationship of brands with consumers, agencies, and business culture.
Table of Contents
Evolution of generative AI
Generative AI will help in processes and routines such as campaign creation, media planning, and results evaluation.
AI will generate faster responses, resolve doubts, and produce extensive data analysis in real-time, adjusted predictions, automation, personalization, collaboration, and agility in the delivery of results, among other advantages.
Transparency and precision in measurement
The sector demands greater transparency and precision in measurement. This fact is generating the growth of independent audits of marketing measurements and the AI revolution, a fact that leads to the democratization of measurement, the execution of ROI in real-time, and advantages that allow the generation of insights and marketing strategies. Autonomously in order to better understand the audience.
It is estimated that the investment will increase by 5%. Sports events are an incentive for this growth. In addition, connected television (CTV) can regain ground within an era marked by OTT platforms, which will continue to grow in attracting investments.
On the other hand, the radio will work on measurement by providing audience data in digital and analog coverage. Meanwhile, outdoor advertising will rely on digitalization. In addition, digital media will also grow more than the market average.
The rise of AVOD
Users have started taking advantage of AVOD (ad-supported video-on-demand) applications instead of Svod (subscription video-on-demand) services. AVOD allows different formats, such as interactive ads.
Retail Media and new digital formats
Retail channels are increasingly attracting more attention and will continue to rise in 2024.
Retail Media offers the opportunity to impact the consumer at a time when the user is already interested in purchasing a product, which provides a greater probability of conversion and even more so when the landing page is located within an e-commerce, either within the advertiser’s site or in a retailer.
Many advertisers will also bet on the potential of branding applied in digital environments. These types of campaigns represent, increasingly, a percentage of the total digital investment, as their ability to achieve business objectives is valued very positively.
Likewise, we will experiment with the new formats that are emerging in social media, including search ads, which help increase impressions, reduce costs, and maintain solid click rates.
However, the most critical challenge is to measure its return, as well as establish systems that minimize fraud and that, through certifications, provide confidence in the purchase of advertising.
The rebirth of contextual advertising
Active brands that focus on the needs of consumers
Consumers tend to react better to brands that stand out for their agility and speed of marketing, but also to those that put the consumer in the main focus of attention with personalized, disruptive, innovative proposals that can generate direct experiences.
With the impact of private labels and retailers that have lower prices, companies have chosen to target customers with fewer restrictions, as well as consumers seeking “premiumization. “
Brands with less than 10% penetration are gaining ground around the world. “Microbrands” are leading a disproportionate growth in consumer goods and are trying to challenge already established concepts, ideas, and needs of consumers.
In terms of the ideals that drive brands, people will continue to choose those that defend activist principles, and they expect them to align with their values.
However, consumers only sometimes do what they say; this is what is called the gap between purchase value and action.
On the other hand, people will continue to support those who defend activist principles and expect them to align with their values. However, the monitoring of influencers’ content continues.
60% of global marketing professionals say that spending on influencers will increase in 2024, which places greater demands on brands, as they must be able to manage adverse reactions and adapt their communication to their DNA.
More competitive agencies
In a context marked by competition between agencies and with significantly changing needs among advertisers, AI will impact the modus operandi of agencies by being able to generate content in an agile manner and be present in the production of company assets.
This fact gives rise to changes in work models and remuneration. In addition to AI, technology, in general, will dominate advertising and marketing in 2024.
Business culture: sustainability and worker well-being
The culture of sustainability and well-being of advertising companies is one of the main trends. Diversity and inclusion will also be incorporated into the roadmap of companies with a broad vision not only of gender.
On the other hand, for the growth of the collaborative economy in 2024, it will be essential to take into consideration the well-being and happiness of the worker in order to receive their loyalty.