Marketing Trend 2024：The Rise of AI, The Fall of Cookies, and The Fight for Trust

The Pace of Digital Ad Spend Growth Slows

The blistering pace of growth in digital advertising spend is poised to continue slowing in 2024. Growth rates that were once in the 20-30% range have fallen to the single digits in recent years. Industry experts predict this deceleration to continue, with worldwide digital ad spend increasing by only 8% in 2024.

Several factors are contributing to the slowdown. Data privacy laws like GDPR and CCPA are making user-level ad targeting more difficult. Browser changes from Apple and Google have reduced access to identifiers and metrics used for optimization and attribution. This erosion of data has led to less efficient ad spending.

The slowing growth is also a case of the law of large numbers. Digital ad spend has gotten so massive, making huge percentage increases unlikely. And economic challenges may strain marketing budgets. Sectors like retail and consumer packaged goods will be more conservative with their ad investments.

While the meteoric rise is over, digital advertising will still see steady growth. And ad dollars will shift to emerging formats. Streaming audio, podcasts, and other digital audio will attract more ad spend as consumption grows. Alternate digital platforms and publishers will take budgets from incumbents like Google and Facebook. Marketing dollars will flow toward what works.

The End of Third-Party Cookies and Mobile Ad IDs

Over the past few years, privacy laws like GDPR and CCPA have accelerated the demise of third-party cookies and mobile advertising IDs from Apple and Google. These tracking technologies have powered ad targeting and analytics for decades, but are increasingly being blocked in web browsers like Chrome and Safari due to privacy concerns.

As third-party cookies and mobile ad IDs disappear, digital marketers will need to rely more heavily on first-party data like email addresses and physical addresses that is collected directly from customers with their consent. While third-party data from brokers allowed marketers to target ads to broad audiences, first-party data enables more precise segmentation and personalization for known customers.

The loss of third-party tracking will also advantage walled gardens like Google, Facebook, and Amazon. These tech giants have direct relationships with users and can leverage first-party data from products and services to maintain targeting abilities. With less third-party data available, independent sites and apps may struggle to monetize as effectively with digital ads compared to the walled gardens.

Marketers will need to re-think their data and targeting strategies in 2024 as third-party cookies and mobile ad IDs fade away. Those who invest in high quality first-party data consented to by their customers will be poised for success. Companies relying too heavily on third-party data face an uphill battle adapting to the new privacy-centric landscape.

The Rise of AI in Marketing

Artificial intelligence and machine learning will become more integrated into marketing technology and strategies in 2024. AI is poised to impact many aspects of marketing:

• AI will power more sophisticated marketing automation capabilities. AI can help automate lead scoring, email sequencing, campaign personalization, and other automated tasks. This allows marketers to focus on strategy rather than repetitive workflows.

• Generative AI models like DALL-E 2, GPT-3, and others can now create synthetic images, text, videos, and audio. This "synthetic media" can help generate more marketing content faster and on-demand. AI-generated content may eventually become indistinguishable from human-created content.

• AI and machine learning applied to big data will enable more precise ad targeting and real-time personalization at scale. Predictive analytics can segment and target customers. AI optimizes campaigns and assets for relevance and engagement.

• Ad targeting and bidding will become more automated and optimized by AI. Intelligent algorithms can adjust bids and placements to find the most efficient ad opportunities in real-time.

• AI content creation tools will write simple content or generate content frameworks. Long-form blog posts, social media captions, and more can be produced faster. AI may also suggest content topics and ideas.

• Chatbots and conversational marketing will feel more natural with AI. Chatbots can understand context and intent better to resolve customer issues. AI chatbots provide personalized recommendations.

In summary, AI and machine learning will enable marketers to work smarter, faster, and more efficiently in 2024. AI empowers new levels of personalization, automation, optimization, and creativity. But marketers must thoughtfully oversee AI to avoid issues with data bias, quality control, and transparency.

Streaming and CTV Take Over

Streaming media and connected TV (CTV) will make up the majority of video viewing by 2024. As cord-cutting accelerates and new streaming services launch, streaming and CTV will dominate how audiences consume video content.

Ad-supported streaming options and CTV platforms will be essential for reaching key audiences at scale. Marketers will need to utilize streaming ads on services like Hulu, Peacock, Paramount+, and Tubi to get in front of desired viewers. Similarly, CTV advertising on platforms like Roku, Amazon Fire TV, and Samsung TV will be crucial.

Short-form vertical video made for mobile devices will also see significant growth. TikTok-style snippets optimized for smartphones will be popular across apps like Instagram, YouTube, and Snapchat. New features like YouTube Shorts and Instagram Reels will further drive short-form adoption. Brands will need creative new approaches to advertising within these bite-sized content formats.

Overall, streaming, CTV, and mobile short-form video will dominate the future of video marketing in 2024. Agile marketers who can creatively leverage these emerging formats will have a distinct advantage.

Sustainability and Ethics Are Priorities

As younger generations like Millennials and Gen Z become the dominant consumer force, they are increasingly seeking out and supporting brands that focus on ethics, sustainability and social impact. Research shows that nearly 90% of millennials and Gen Z consider sustainability when making purchasing decisions and are willing to pay more for sustainable brands. This means sustainability and ethical business practices will move from being a nice-to-have to an expectation in 2024.

Brands that engage in greenwashing or unethical business behavior are likely to be quickly called out on social media. Authenticity and transparency around sustainability initiatives will be crucial to avoid backlash. Diversity, inclusion and social impact will become table stakes. Brands that don't make progress in these areas will be left behind. Marketing campaigns and brand messaging will need to showcase substantive actions the company is taking to be sustainable, ethical and inclusive.

Simply chasing social media trends like hashtag campaigns will no longer suffice. Consumers, especially younger ones, can spot disingenuous corporate social initiatives that aren't backed up by meaningful change. Brands will need to walk the walk in 2024 when it comes to sustainability, ethics and inclusion. The marketing campaigns of the future will showcase how brands are living their values and connecting with causes consumers genuinely care about. Brand purpose will become central to branding and positioning.

The Rise of Experiential Marketing

With in-person events making a comeback after COVID, experiential marketing will be more important than ever in 2024. Brands will leverage immersive, memorable experiences to drive deeper engagement and advocacy with their audiences.

Interactive, shareable events on the ground allow brands to connect with audiences and influencers face-to-face. Pop-up shops, brand festivals, product tours, and other creative activations provide hands-on brand immersion. They are ideal for user-generated content and social sharing.

Brands will also make use of emerging technologies to create unique digital experiences. Virtual reality, augmented reality, and virtual worlds open up new possibilities for digital experiential marketing. From virtual fashion shows to augmented retail environments, spatial computing enables 3D brand interaction. It can provide access and scale while still feeling premium.

The most effective experiential marketing will blend digital and physical interaction. Phygital experiences that transition between the virtual and real world will allow for greater personalization and accessibility. They enable brands to engage audiences wherever they are most comfortable while staying ahead of the experiential marketing curve in 2024.

Personalization Gets More Precise

As data collection and AI capabilities improve, marketers will be able to deliver ultra-targeted, relevant messaging to customers across channels and devices. Precision marketing powered by data and AI will enable marketers to understand their customers at an individual level and deliver customized experiences.

Key aspects of more precise personalization in 2024 will include:

• Precision targeting: Leveraging zero and first-party data, psychographic profiling, and machine learning, marketers will precisely identify micro-segments and tailor messaging accordingly. Geographic, behavioral, and contextual data will allow for targeting at a granular level.

• Timely, tailored messaging: With a comprehensive view of each customer, marketers can deliver timely messages tailored to specific needs, preferences and context. Personalized subject lines, dynamic content, and predictive recommendations will make every communication feel relevant.

• Omnichannel coordination: Data connected across channels like email, on-site messaging, mobile push notifications, direct mail, and more will enable consistent personalization. AI will help determine the best channel and timing for each customer interaction.

• Contextual marketing: Using real-time data like weather, location, purchase history and more, marketing messages can be adapted dynamically based on a customer's current context for greater relevance.

• Progressive profiling: AI tools will continue learning about each customer over time, building more complete profiles and enabling better personalization.

Delivering the right content, on the right channel, at the right time for each individual will be the hallmark of sophisticated personalization in 2024 and beyond. Brands that leverage data and AI to coordinate omnichannel experiences will have a major competitive advantage.

Email Makes a Comeback

Email marketing has been declared "dead" many times over, yet it continues to evolve and remain an effective channel. In 2024, look for email marketing to make a major comeback due to a few key trends:

• Email open rates remain high compared to most social media. Despite all the hype around social media, email still delivers much higher open rates on average. This is especially true when segmented lists are used to target engaged subscribers.

• Newsletters and triggered/behavioral email gain traction. Sending generic email blasts is no longer effective. Smart marketers are sending targeted and personalized newsletters focused on topics subscribers care about. Triggered and behavioral emails based on user actions also perform very well.

• Interactive email formats start to gain traction. Static text emails get deleted. To create engagement, marketers are experimenting with interactive formats like quizzes, calculators, live polling, and more built into emails. These interactive elements boost open rates and prevent emails from going straight to the trash folder.

The future of email marketing is about sending the right content to the right people at the right time. When email is personalized, interactive, and actionable, it drives higher engagement and conversions. Email will make a major comeback as a marketing channel as new trends like newsletters and innovative formats take hold in 2024.

Influencers and Social Commerce Rise

Influencer marketing has rapidly grown over the past few years, especially on visual platforms like Instagram and YouTube. But in 2024, TikTok is poised to become the #1 platform for influencer marketing campaigns. TikTok's short form vertical video format lends itself perfectly to influencer-created content. And the massive growth of TikTok's user base, now over 1 billion monthly active users, gives influencers access to a huge new audience.

Brands will tap into creators on TikTok for sponsored content, branded hashtags and filters, and product collaborations. The platforms shoppable features will also make influencer content instantly shoppable.

Livestream shopping has already gained popularity in China. Now, shoppable livestreams are growing on platforms like Instagram and TikTok in the US. The interactive format gives followers a behind-the-scenes look at products and the opportunity to instantly purchase featured items.

Micro and nano influencers will continue to play an important role. With smaller but highly engaged audiences in specific niches, micro and nano influencers generate high converting customers cost effectively. Their authenticity fosters audience connection and trust.

Conversational Interfaces Take Hold

Marketing is getting more conversational. Chatbots, voice technology, and messaging apps open new possibilities for natural dialogues between brands and customers. Advancements in natural language processing allow for more intuitive conversations through these interfaces.

Virtual assistants like Alexa and Siri are becoming increasingly common touchpoints between consumers and brands. Smart speakers now reside in millions of homes, with users asking questions, getting recommendations, and accessing services through voice commands. Brands that optimize for voice search and integrate with virtual assistants will have an advantage.

Chatbots have come a long way from their early days, with AI making conversations feel more natural. Chatbots can answer customer service queries, make recommendations, and enable transactions through messaging apps. Leading messaging platforms are opening up capabilities for businesses to connect with customers.

The key for marketers in 2024 is to focus on conversational utility over novelty gimmicks. Optimize content for voice search. Design multimodal conversational experiences that flow seamlessly between voice, text, touch, and visual interfaces. Make conversations with chatbots and assistants truly helpful for customers.