A recent study by Material and NewtonX, titled ‘The Digital Lead: 2024 Advertising Insights & Tech Trends’, offers a comprehensive look at the evolution of advertising. The report is based on a nationwide survey of professionals in the field and sheds light on trends regarding targeting, the role of technology, the utilization of social media, and the influence of artificial intelligence (AI) on marketing strategies. Insights into projected spending patterns for brands in 2024 are also highlighted in the research.
AI: the vanguard of advertising’s future
AI is at the forefront of the advertising industry, with 59% of survey participants identifying it as the principal topic of interest, indicative of its potential to reshape business methodologies and enhance campaign effectiveness. Despite a general positive outlook on AI, there is still a measure of uncertainty about its application, its efficacy on social platforms, and its impact on targeting precision and cost efficiency.
Projected increase in ad spend for 2024
According to the report, advertising budgets are set to rise after a period of fiscal restraint following the pandemic. Digital advertising is predicted to represent approximately two-thirds of the overall advertising expenditure. When it comes to brand advertising, social media is the preferred channel for investment, while search engine marketing and social media are leading choices for performance advertising.
Moderate concern over the end of cookies
The impending obsolescence of third-party cookies is met with moderate concern from advertisers who feel more prepared for the shift. Strategies are pivoting towards first-party customer data, with other novel approaches such as contextual targeting, cohort analysis, machine learning, and cost-per-click or cost-per-acquisition models gaining traction.
Noteworthy conclusions from the study
- About 45% of industry specialists expect to adjust their media mix in response to the phase-out of third-party cookies.
- Over half of the agencies and advertisers surveyed predict a budget increase in the upcoming year.
- AI is regarded as the most significant factor influencing the future of advertising by 59% of respondents.
- Enhancing national advertising is the main objective for almost half of the surveyed parties for 2024, with a focus on local advertising enhancements by 26%.
Jeremy Sack, president of Material, remarked on the importance of staying attuned to business changes and emerging innovations to foster advanced strategic planning. The report aims to answer key queries while encouraging further exploration and learning within the advertising field.
Jackie Cutrone, CMO of NewtonX, noted AI’s prominence in the study’s findings. She emphasized NewtonX’s commitment, in collaboration with Material, to harness AI for data collection and analysis, thereby providing actionable business insights to support advertisers and brands as they face the challenges ahead.
About the survey
The survey encompasses responses from 250 advertising professionals with sway over advertising or marketing strategy and execution. Split evenly between agency and in-house advertising experts, the participants’ demographics include gender, company size, industry, and their roles, with further details available in the complete report.
