In 2023, we saw significant shifts in the landscape, including the drop in Google and Meta’s share of digital advertising spending below 50%, the rise of privacy-focused solutions such as the Digital Marketing Act and Digital Services Act, Netflix's ad-supported plan with Microsoft, and the growing popularity of retail media. As we step into 2024, we're seeing several trends that are likely to have a significant impact on consumers:

Generative AI: Reshaping Ad Creative Optimisation

Gen AI, fuelled by advancements in Open AI, will play a fundamental role in shaping the future of AdTech. McKinsey’s recent study highlights the widespread adoption of generative AI, with 79% of the individuals exposed to the technology and 22% regularly using it.

In particular, AI algorithms will revolutionise ad creative optimisation with a dynamic adaptation of the content based on user interactions, preferences, and contextual factors. For instance, contextual advertising will deliver ads that seamlessly align with consumer behaviour patterns, promoting greater engagement and driving conversions. Furthermore, machine learning-powered dynamic creative optimisation will ensure that ad content evolves dynamically to resonate with different audience segments to maximise campaign performance.

Beyond traditional AI applications like targeting and personalisation, the industry is set for a revolution with article-to-video format, where AI algorithms transform long-form articles into concise and informative 2-minute videos, summarising key points and enhancing the viewer’s experience.

Streaming Ads: Dominating the Digital Landscape

As traditional TV viewing transitions to digital platforms, streaming ads will become one of the dominant forces in AdTech this year. With over 68% of TV viewing already coming from streaming devices, CTV advertising offers an attractive opportunity for advertisers to reach an engaged audience.

One of the key advantages of streaming ads is their targeting capabilities, powered by real-time data, meaning that advertisers can precisely target their ads based on location, household demographics, and device preferences. Also, the programmatic advertising landscape is set to grow significantly in the CTV space, as most CTV inventory is still being bought directly. And, with the growing focus on privacy, CTV advertising presents a viable alternative to third-party targeting by leveraging contextual and device-level data.

Last but not least, integrating streaming ads with eсommerce further enhances user experience – viewers can browse products, make purchases, and complete transactions without leaving the streaming platform.

Retail Media: Pushing the Boundaries

In 2024, retail media will continue its rapid growth, connecting consumers, retailers, and advertisers directly at the point of purchase. In particular, more retailers will introduce intuitive chatbots, among other innovations, to transform how consumers interact with retailers and allow them to receive real-time product recommendations, navigate the product catalogue efficiently, and personalise their experience.

Walmart's groundbreaking "RomCommerce" series is a prime example of retailers pushing retail media's boundaries. This series of short, engaging episodes, featuring over 330 products, effectively blends entertainment with product discovery, creating a captivating shopping experience that resonates with consumers.

The momentum behind retail media is evident in the projected 8.3% growth of retail media networks in 2024, reflecting the increasing demand for personalised, targeted advertising that aligns with consumers' shopping journeys.

Cookieless Solutions: Navigating the Privacy Landscape

As privacy concerns continue to grow, the traditional cookie-based tracking method is facing a decline with an increased demand for privacy-focused solutions, such as Stable ID. It is a compelling alternative, offering a unique identifier that can track user behaviour without compromising privacy while being consistent across devices and browsers. Furthermore, it is not linked to personal data, ensuring user privacy and minimising the risk of data breaches.

In fact, over 74% of businesses are planning to increase their investment in programmatic advertising. For instance, Unified ID 2.0, developed by the Trade Desk, utilises anonymised email addresses as unique identifiers. Other companies are tapping into other opportunities to create their Stable ID for effective frameworks with a new ecosystem without cookies.

Despite the progress, successfully transitioning to a cookieless ecosystem requires a standardised solution that aligns all industry participants with facilitating seamless user experiences, enhancing targeted advertising, and upholding user privacy.

Eсommerce: Evolving with Consumer Preferences

Eсommerce will continue strengthening its position in the AdTech landscape, driven by its growing user base and evolving marketing strategies. With the UK, one of Europe’s most advanced eсommerce markets, projected to reach nearly 60 million users, the market is set for innovation and growth.

In 2024, several exciting developments will lead the way, including AI-generated content marketing, pricing pressure, 80/20 customer segmentation, social commerce, and personalisation. At the same time, traditional retailers also embrace eсommerce, leveraging their physical presence to enhance their online presence. For instance, they can use in-store data to personalise online recommendations and create seamless shopping experiences that span offline and online channels.

Looking forward, the future of eсommerce includes the rise of dark social, Q-commerce growth, voice-enabled online shopping, and the integration of shoppable videos.

Video: The Future of Advertising

Video is rapidly gaining traction as the preferred format for effective advertising campaigns. Viewers retain up to 95% of the information they receive through video, compared to 10% for text-based content. This compelling advantage drives the rise of article-to-video formats, seamlessly transforming written content into engaging visual narratives.

The surge in video consumption is fuelled by the popularity of social media platforms like TikTok, Instagram, and YouTube, which have become indispensable hubs for video content. This trend has prompted brands to adapt their strategies, embracing video ads as a powerful tool to capture attention, engage viewers, and drive conversions.

As video continues to dominate the digital landscape, advertisers must prioritise embracing this dynamic format to effectively connect with their target audience and achieve their desired marketing outcomes.

The AdTech landscape in 2024 will be defined by the convergence of technological advancements, changing consumer behaviour, and evolving regulatory requirements. Businesses that embrace these trends and adapt their strategies accordingly will be well-positioned to thrive in this dynamic and competitive market.