By Ben Skinazi, CMO, Sharethrough

In a world dominated by geo-political tensions and looming threat of an environmental crisis, the marketing landscape is evolving rapidly, and the outlook for 2024 promises both challenges and exciting trends. As businesses grapple with tighter budgets, the focus has shifted from ensuring profitability to avoiding losses. This risk-averse environment coupled with the deprecation of cookies is reshaping marketing strategies for 2024 and unlocking new industry trends that will influence the year to come.

Here are the top five I see shaping the year to come:

Shifting metrics: Prioritizing attention and comprehension

Traditional metrics such as CTR and viewability rates no longer define the success of a campaign. Consumers’ attention is divided between multiple screens, and their video watching habits change by the minute. To adapt, advertisers will need to prioritize new metrics in 2024: attention and comprehension. To service this need, we may see new ad formats emerge in 2024, such as automated brand-lift surveys to test user comprehension. We first saw it on YouTube, and nothing would stop advertisers from implementing something similar on connected TV (CTV).

Additionally, with AI now proficient in comprehending text, voice, images, and video, the question arises: can it help build more comprehensible creative based on its learning model? Next year, we’re likely to see AI experiments with a purpose to dynamically analyze and optimize ad creative for each user. Currently, there is no industry standard on attention or comprehension measurement, but the year ahead will see more conversations around the need for setting one.

Navigating the cookieless era with AI-driven dynamic targeting

While AI will continue to evolve marketing processes, as the era of cookies comes to an end, we’ll see the rise of AI-driven dynamic targeting. Leaning on first-party data and contextual segments, the ad tech industry will look to leveraging AI to optimize campaigns.

Given the dynamic nature of all creative elements such as headlines, banners, call-to-action, and captions, AI can adapt and test optimal outcomes for individual users. Its capacity to store vast amounts of data enables the creation of personalized experiences for internet users. In the near future, AI may empower us to generate content in milliseconds, giving brands the ability to A/B test different creative for the same user. What could this look like for the future of digital advertising? With contextual targeting, which would enable AI to scan a web page, a user looking for a recipe online may also be served an ad from Uber showcasing a similar meal from a restaurant nearby. On the other hand, first-party data may allow advertisers to showcase a product alongside a user’s preferred YouTuber or influencer.

The rise of retail media
With cookies gone, retail media is poised to thrive as a key channel. To effectively support retail media and navigate its evolving advertising implications, the industry requires new real-time bidding (RTB) specs. These specifications will play a crucial role in facilitating product listings onsite (within a retailer’s digital properties) and offsite (external to the business’s own properties). Given the current lack of standardization, there exists a substantial opportunity for the industry to collaboratively establish and scale this new format in 2024.

Navigating challenges on the path to sustainable advertising
The advertising industry’s stride toward sustainability at the close of 2023 encountered notable challenges. The lack of coordinated effort and sufficient incentives to mobilize industry participants, coupled with publications’ frustration at shouldering the burden, has added complexity to the journey. Addressing these concerns is crucial for a realistic discussion about what can be expected and what needs to be put in place to achieve meaningful progress. Next year, we’ll see a significant shift toward the adoption of emission standards in the advertising sector. Collaborations between key industry stakeholders, including GARM, IAB Tech Lab and AdNetZero will play a key role in the development of these standards.

CTV becoming a breeding ground for creative exploration
As the streaming war intensifies in 2024, CTV is entering a stage of ad format innovation. Expect to see a wide range of innovative approaches to improve attention, drive engagement and measure ROI through interactive formats. Advertisers will explore new avenues to captivate audiences in the CTV space, leveraging technology and creativity to deliver more personalized and engaging experiences.

However, the key to success will lay in adopting ad formats that align with consumer needs and expectations. According to a recent Sharethrough study, close to seven in 10 consumers are willing to engage with an interactive video ad format, with more than 15% looking to see more interactive video ads, be it scanning a QR code or answering a poll. Creative formats that strike the right balance between scale, quality and engagement will emerge as winners.

As we prepare to navigate the complexities of 2024, the marketing industry stands at the crossroads of profitability and innovation. With brands and agencies trying to gain more out of less, the focus will remain on optimizing spend and reducing the cycle of the conversion funnel.