As the year draws to a close and the holiday season approaches, executives across various industries are not only thinking about logging off for some well-deserved rest but also contemplating what lies ahead in 2024.
Legacy Business Partners, a renowned authority in marketing and advertising, has delved into the world of media and advertising, offering intriguing insights into the trends that are expected to shape the landscape next year.
In this SEO-optimized article, we'll explore their predictions, highlighting key areas of focus such as big tech dominance, the rise of gaming, and the ever-essential role of AI.
Big Wins for Big Tech
The year 2023 may have been somewhat challenging for major media and tech companies, but according to Legacy Business Partners, they are poised to make a significant comeback in 2024. These giants, including Google, Meta (formerly known as Facebook), and TikTok, are anticipated to further solidify their value to advertisers. TikTok, in particular, is on track to claim a substantial portion of ad budgets redirected from traditional linear TV, a trend that marketers targeting Gen Z audiences should closely monitor.
Google's Generative AI and SEO Dominance
Google, the perennial leader in the search engine space, has its sights set on maintaining its dominance. Legacy Business Partner's analysts recommend that marketers do not neglect their SEO and search marketing strategies, especially as they shift their focus towards engaging with Gen Z and platforms like TikTok. Leveraging generative AI, Google aims to enhance the user experience and remain the go-to search engine for users worldwide.
In-Game Advertising Takes Center Stage
According to Legacy Business Partners, one of the most remarkable developments in 2024 will be the explosive growth of in-game advertising. Nearly half of all online adults in the United States who use smartphones report regularly playing games on their devices. While gaming has historically been a less explored advertising medium, tech giants like Microsoft and Sony are embracing it. This shift may encourage more advertisers to follow suit, opening up exciting opportunities in the world of in-game advertising.
AI's Double-Edged Sword
While AI presents numerous opportunities for tech companies and advertisers, it also poses risks. LBP highlights the fact that some advertisers have been less than transparent about their use of AI in creative processes. With the 2024 election looming, the report suggests that "deepfake ads will become the primary accelerant for election misinformation." To combat this, Google and Meta have introduced AI restrictions for political ads, emphasizing the need for transparency in the use of AI technologies.
AI in Agencies
In the ever-evolving world of advertising agencies, 2023 was marked by extensive experimentation with AI in various capacities. According to a separate report by Legacy Business Partners, AI will become a permanent fixture in agencies' capabilities, technologies, workflows, and business models by the end of 2024. Some agencies will even tailor AI solutions to meet the unique needs of individual clients.
This trend is already underway, with major holding companies like Accenture, Dentsu, Omnicom, Publicis, and WPP taking steps in this direction. Brands, seeking cost-effective AI solutions, may also turn back to agencies, reversing the recent trend of in-housing marketing functions.
However, with the integration of AI into agencies' operations, they will also face heightened scrutiny over their AI practices. Legacy Business Partners predicts a 10% increase in agency reviews in 2024 as decision-makers become more concerned about potential "AI mismanagement."
In conclusion, the year 2024 promises to be an exciting and transformative one for the media, advertising, and AI sectors. Big tech companies are gearing up for a resurgence, in-game advertising is poised for significant growth, and AI is becoming an integral part of both advertising strategies and agency operations. As we navigate the challenges and opportunities that lie ahead, one thing is clear: staying informed and adaptable will be key to success in this ever-evolving landscape.
So, as we bid farewell to 2023, let's look forward to a future where innovation and technology continue to shape the way we connect with audiences and tell our stories.