The past year in marketing has been a whirlwind of transformative shifts for startups, venture capitalists, and entrepreneurs. The need to navigate uncertainty in economic, technological, and geopolitical spheres has never been more acute. As marketers recalibrate their strategies, it’s evident that the focus on delivering measurable results and tangible value is paramount.
As we approach the new year, it’s a good time to explore the key forces reshaping the marketing landscape, keeping top of mind the intersection of innovation and ethics as the pulse of modern marketing.
GROWTH OF CTV AND THE RISE OF COMMERCE MEDIA
The trajectory of Connected TV (CTV) growth is not merely a trend, but a seismic shift impacting traditional television networks and advertisers.
Beyond its influence on content consumption, the transformation of the TV business and its impact on consumer behavior is creating unprecedented opportunities for advertisers to connect and engage with audiences at different stages of their shopping journey, from product discovery to purchase.
According to a recent study of over 1,000 smart TV owners, over 70% of respondents reported shopping while watching TV. Couple this with the fact that e-commerce spend is expected to increase by over $500 million in 2024 and top $8 trillion by 2026, the adoption of CTV and increase in e-commerce spend is paving the way for the rise of “commerce media.”
More than just another marketing channel, commerce media represents a comprehensive layer of strategy and expenditure across all marketing channels. This approach allows brands and advertisers to target their audience more effectively with personalized ad experiences, capitalize on consumer intent and engagement, and measure the direct impact of their advertising efforts on sales and revenue.
Marketers must not only adapt, but strategically position themselves to leverage this evolution for optimal brand exposure and engagement.
AI’S DOMINANCE IN MARKETING
From its emergence as an experimental concept, AI has evolved into the linchpin of modern marketing strategies.
Beyond automation, AI’s role in generative content creation and algorithmic precision is reshaping the industry, to say the least. In their quest to stay ahead of the competition, brands are likely to continue to push the boundaries of AI and creative in 2024, testing new applications that are yet to be fully realized in order to gain a competitive edge.
Take Meta’s AI Personas, for example, which launched this past September. These chatbot characters use celebrity likenesses ranging from Snoop Dogg to Kendall Jenner to Charli D’Amelio. As these AI Personas become more sophisticated, the line between authentic human communication and AI-generated content may blur, raising serious questions regarding the impact on unhealthy social media habits and parasocial relationships, in addition to privacy concerns such as how the data and information shared with the AI chatbots will be used.
To stay ahead in 2024, marketers need to balance AI’s role in elevating creativity, enhancing efficiency, and personalizing campaigns with a steadfast commitment to maintaining transparency, accuracy, ethical standards, and a genuine human touch in their brand interactions.
ATTENTION AS A NEW CURRENCY
With only 24 hours in a day, there’s a finite amount of attention, making it a valuable and contested resource. Moreover, with the rise of short-form video and social media, consumer attention spans are shrinking, leaving advertisers battling for the same pool of diminishing attention.
In an age where consumer attention is becoming increasingly rare and invaluable, marketers must decode the nuances of this new currency, incorporating strategies that not only grab but sustain attention in an increasingly competitive landscape.
To address this challenge, contextual advertising, powered by AI, will be key to capturing and retaining attention. A Lumen study reveals that contextually targeted ads drive 3.3x higher attention, emphasizing the importance of relevance in advertising.
It will also be pivotal for advertisers to quantify and optimize for attention, as understanding the dynamics of this new currency becomes essential for staying ahead in the marketing landscape.
GLOBAL PRIVACY REGULATIONS AND THE END OF COOKIES
The impending demise (finally!) of cookies and the surge in global privacy regulations are sending shockwaves through the marketing ecosystem.
Understanding the varied perspectives on privacy across demographics is paramount. In the coming year, navigating this complex terrain requires marketers to strike the delicate balance between delivering personalized experiences and safeguarding consumer data.
Transparency will be the linchpin in maintaining trust. As privacy regulations tighten their grip, marketers must be proactive in addressing concerns.
Beyond compliance, transparent communication about data practices will be pivotal. Those who successfully navigate this terrain with finesse will build not just campaigns but enduring trust with their audiences.
UNWAVERING PRINCIPLES IN MARKETING
In the year of transformation ahead, adherence to ethical principles is non-negotiable. Building on solid ethical and technical foundations is not a luxury but a strategic imperative.
As technology advances, the human touch must remain a guiding principle. The essence of marketing lies in genuine connections, and in the coming year, authenticity is the currency that will outlast fleeting trends.
What lies at the heart of modern marketing is the balancing of innovation and ethics. As we embrace revolutionary technologies, the imperative is not just to be innovative but to do so ethically. Modern marketing demands a nuanced approach, where groundbreaking strategies align seamlessly with unwavering ethical principles.
THE YEAR AHEAD
To wrap it all up, the revolution we’re experiencing headed into 2024 is not just about embracing change but about shaping it. Marketers armed with a strategic understanding of CTV, AI, the value of attention, and privacy dynamics will not just survive but thrive in our business.
Remember, the crux of modern marketing is innovation with integrity, and in this age of transformation, those who manage to strike that delicate balance are the ones who will lead the industry into the future.
Gary Mittman is the Founder and CEO of the leading AI-powered interactive video advertising platform, KERV Interactive.