source : www.forbes.com
Forrester, a research and consulting firm, recently released two reports on what we can expect from media, advertising and advertising agencies in 2024. Forrester expects that the impact of technology, especially AI, will continue to be disruptive, resulting in some fundamental differences in the business models of the media and advertising industries. Below are some of their top predictions.
Major media companies such as Meta, Google GOOG and TikTok will be stronger than ever in 2024.
Forrester predicts that generative AI will make Google the “next Google,” helping them maintain their position as the dominant search engine. Google will remain a “source of truth,” making ChatGPT a thing of the past. A recent Forrester survey found that 73% of online adults would use Google to fact-check ChatGPT responses. This will further strengthen Google’s role as an accurate source of information.
Major media companies will help video games become the fastest-growing ad-supported media channel by 2024. Although video game use is widespread, it lags behind other media channels as an advertising platform. Forrester, for example, points out that U.S. ad spend on video game accounts is only one-sixth of the ad dollars allocated on social media. Additionally, Forrester predicts that as major media companies invest in video games, coupled with the maturity of advertising games, this will help alleviate marketers’ long-standing concerns about fraud and brand safety.
In their report, Forrester points to Microsoft’s $65 billion bid to buy ActivisionATVI Blizzard and reports that Sony could acquire Take-Two as evidence of the media’s strong interest in gaming as an advertising vehicle. Forrester says about half of U.S. online adults with smartphones regularly play games on mobile devices. Moreover, about a third spend at least an hour a day on mobile gaming.
For 2024, Forrester also predicts in the technology and advertising sector;
· At least one marketer will have to apologize for using a generative AI stunt during a high-profile television event like the Super Bowl or the Summer Olympics in Paris.
· Deepfake ads will be a prominent source of misinformation during the 2024 election cycle. Forrester points out that political ads are among the most poorly produced and lend themselves to deepfake ads. Google has stated that they will require political advertisers to disclose any use of AI in their ads.
· For marketers with a Gen Z target, TikTok will be the primary beneficiary of media budgets moving away from the aging audience of linear television. Forrester also expects more live sports to shift from linear television to streaming platforms.
For advertising agencies, Forrester says 2023 has been a year of AI experimentation and 2024 will be the year of AI implementation. Forrester predicts that AI will be permanently embedded into agencies’ capabilities, technologies, workflows and business models by the end of the year.
Forrester predicts that agencies will focus and invest in “brand-specific” AI models by 2024. Agencies will create these AI models using data from technology companies, their own audiences and creative information, first-party data from their customers, and brands’ standards. As a result, agencies will be able to achieve a more personalized marketing message. Forrester expects the largest agencies to collectively invest $50 million in collaborating and developing customized AI outcomes for clients.
Another trend is lower operating costs. The low-cost AI solutions will help increase agencies’ revenues and reduce internal tasks. Furthermore, focusing on cost-saving AI solutions will result in a renaissance of an agency’s creative and content capabilities. Forrester expects agencies to develop their content and creative capabilities by 2024. A Forrester client said, “Our AI marketing task force started with our CMO asking, ‘How much will AI save us?’”
For 2024, Forrester also predicts in the advertising agency sector;
· With concerns about AI mismanagement by agencies, clients will increase agency reviews by 10%. Forrester predicts that next year there will be more than 20 customer reviews examining their agencies’ AI practices. For now, the use of AI is autonomous; legislation is expected to pass in both the US and the European Union by 2026.
· With the rise of genAI, Forrester predicts that specialist digital advertising agencies will soon disappear. With genAI’s capabilities for a more personalized experience, all marketing will evolve into digital marketing. Therefore, the need for ‘only’ digital advertising agencies will not be necessary.
· Increased demand for PR agencies of about 5% for the 2024 elections. Forrester expects US political ad spending to total $11.5 billion in a polarized political landscape. As a result, brands can become entangled in the culture wars and political divisions. Brands will use their PR agencies to keep them out of the political turmoil.
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source : www.forbes.com