8 Anticipated Changes for Marketing in 2024: Embracing the Unconventional

As we look towards 2024, it seems that the marketing landscape is slowly returning to normal. Ad spending is on the rise, with a heavy focus on digital platforms. The potential for recovery is fueled by decreasing inflation, which may lead CMOs to be more open with their budgets after a period of restraint.

Marketers will have numerous opportunities to connect with consumers, such as major events like the Super Bowl, the Summer Olympics, and the growing popularity of global sports like soccer and Formula 1. There will be plenty of experimentation with generative artificial intelligence (AI), retail media networks, and cookieless identifiers, leading to both successes and mishaps. Streaming platforms are embracing advertising, which could offset losses for traditional TV and drive innovations in CTV marketing – although it might not be enough to prevent platform consolidation.

Brands are entering the new year after a challenging 2023, with many caught up in culture war backlash. The upcoming elections will spur political ad spending but may also make marketers more cautious in their approach to avoid the same fate as Bud Light.

Specific is the new broad

Lurking in the shadows are significant unresolved inquiries: Will the enforcement of antitrust measures against tech companies reach a climax? How will ethical and legal disputes concerning AI impact its developmental path? Is anyone truly ready for the impending demise of the cookie now that it has been set in motion?

Amidst heightened societal divisions, marketers in 2024 may find success by focusing on general emotional appeals that center around shared humanity. This shift is in response to a perceived overreliance on performance marketing in recent years, which has limited the ability to truly resonate with consumers.

According to Anne Ryan, vice president of brand strategy at Brownstein Group, there has been a noticeable shift from emotional, anthemic advertising during the pandemic to more functional messaging. However, there is now a returning to a more balanced approach.

Looking back at the major successes of 2023 can also provide valuable insights. For example, Mattel achieved a major pop culture milestone with the movie "Barbie," which skillfully combined a forward-thinking feminist message with lighthearted humor. The film's tremendous success was augmented by a wide range of tie-ins, including home décor and watches, demonstrating the broad appeal of entertainment marketing.

Agency identities in flux

Just a few days into 2024, Interpublic Group made the decision to sell a pair of iconic agencies to the relatively new Attivo Group. This unexpected transaction serves as evidence that advertising holding companies may be considering further streamlining their portfolios after a difficult year that involved the merging of established brands such as Wunderman Thompson and VMLY&R. At the same time, promising independent agencies are being acquired in a market that is shrinking for boutique firms.

In the quest for growth, analysts predict that agencies will take two approaches in 2024: Focusing on specialized areas like retail media or expanding to offer full-service options that balance brand and performance duties. According to Forrester's Pattisall, there is a merging of precision and persuasion, as well as brand and performance marketing, making them increasingly similar.

As agency identities continue to shift, a focus on "digital" will fade in a highly connected world. The looming presence of generative AI poses both risks and potential rewards. This technology is expected to generate new business in 2024, but is also predicted to result in at least one major mistake, leading to an increase in agency reviews.

Retail media’s gold rush ends

In 2024, retail media networks are expected to undergo a period of consolidation as marketers evaluate numerous offerings facing standardization challenges and eliminate those that fail to show a clear performance improvement.

CPG brands that are feeling pressure to prove that their investments in retail media are worthwhile will be seeking specific services from networks in 2024. This will include programmatic marketplaces similar to what Kroger and Walmart are developing, as well as expanded access to channels such as offsite and in-store media. The continued demand for programmatic expertise will continue to benefit an emerging intermediary ecosystem that includes The Trade Desk, Criteo, and Pubmatic.

The demise of the cookie could cause a disruption in the system, leading to an increase in the cost of retail media. The saturation of on-site inventory is prompting publishers to shift their focus to offsite formats, potentially driving up the cost of ID-based ad targeting as a whole.

Will social commerce (finally) have its moment?

With the ongoing digital revolution, it is anticipated that social media will be among the most rapidly expanding sectors by 2024. The elimination of third-party cookies by Google has prompted marketers to reassess the data-driven possibilities of the channel, as stated by Jimmy George, strategy director at Mischief @ No Fixed Address, particularly in the rejuvenated realm of social commerce.

“I think Threads has a great opportunity to displace X.”

Evan Horowitz

Co-founder and CEO, Movers+Shakers

In 2024, retail social commerce sales in the U.S. are projected to reach $82.82 billion, marking a 23.5% increase from the previous year, according to Insider Intelligence. The recent attention in the industry has been on the launch of TikTok Shop in the U.S. With its popularity among teens, TikTok has the potential to establish a new standard in the category, as noted by Evan Horowitz, co-founder and CEO at Movers+Shakers. "TikTok is expected to surpass Instagram in shortening the purchasing funnel," said Horowitz.

The creator economy is booming, with 44% of advertisers planning to boost their investment this year. Social commerce is projected to drive creator spending, as stated by Cristina Lawrence, the executive vice president of consumer and content experience at Razorfish. She believes that creators will become more skilled in managing commerce.

Horowitz predicts a comeback for long-form content this year, while TikTok will remain at the forefront of short-form content. There is also an anticipation of increased interest in Threads, particularly as Elon Musk’s X faces challenges in attracting brands.

“I think Threads has a great opportunity to displace X,” Horowitz said. 

Disruptor brands pose a stronger threat

Brands are facing a challenge to be more adaptable and to move away from traditional media strategies to avoid becoming irrelevant. This need for flexibility is especially important for younger generations, who are not as loyal to traditional brands but have increasing purchasing power. As a result, disruptive brands, known for their ability to be agile, are becoming more prominent and are expected to pose an even greater threat to established marketers in 2024, according to Jason Mitchell, CEO of Movement Strategy. "Disruptive brands can move faster and take bigger risks to attract attention... and this trend will only continue."

Jason Mitchell

CEO of Movement Strategy, Mitchell, commented in an email that disruptor brands have the ability to move swiftly and take bold risks in order to capture attention and steal market share from established brands. This trend is expected to persist.

The executive expects that traditional marketers will embrace a more disruptive mindset this year, as evidenced by the viral successes of companies such as McDonald's and Heinz. The rise of disruptors has been aided by TikTok, while also contributing to the resurgence of established brands like Stanley. According to Horowitz of Movers+Shakers, TikTok has revolutionized the marketing landscape, creating a more equitable platform for disruptive brands to rapidly build an audience.

Celsius and Skims, newer brands, have made deals with sports entities like the MLS and NBA, following the example of more established brands. Mitchell predicts that these types of deals will continue in 2024. Despite the financial strain on the advertising period, disruptors like Mischief @ No Fixed Address are not expected to lose their appetite for taking risks, according to George. George also noted that disruptors prioritize breadth, while legacy brands tend to make decisions based on the "fewer, bigger, better" approach.

Ad-supported streaming leaders emerge

The streaming video landscape has been significantly altered by game-changing moves in recent years, including mega-mergers, the addition of ad-supported tiers, and disputes over measurement. These transformations are expected to persist in 2024. However, amid ongoing uncertainty, key players may solidify their positions as the consequences of CTV marketing strategies become apparent.

Amazon is set to debut ads on Prime Video on Jan. 29, a move that surprised many consumers over the holidays and caused some backlash. Bank of America estimates that this move could bring in nearly $5 billion in revenue for the e-commerce giant, with $3 billion coming from video ads and an additional $1.8 billion from subscribers who pay to avoid commercials. The introduction of advertising on Amazon Prime Video has been described as a "game changer" by Magna, giving advertisers immediate scale and reach as the service defaults users to the ad-supported option at launch, in contrast to recent AVOD launches by Netflix and Disney+.

Vincent Letang, the executive vice president for global market intelligence at Magna, stated in an email that the expansion of streaming will greatly increase its scale and reach, making it more attractive for advertisers.

At the same time, Warner Bros. Discovery, just under a year after launching its Max service, is reportedly considering a merger with Paramount, which has its own Paramount+ streamer. This consolidation could provide an attractive opportunity for connecting cost-conscious consumers with results-oriented advertisers.

A new approach to transparency

In 2024, the digital landscape is set to remain complex. Progress in dealing with transparency issues and media fragmentation may face obstacles due to Google's cookie phaseout and the rise of alternative ID-based targeting. Established channels will focus on improving effectiveness through clean-up efforts. The Association of National Advertisers (ANA) report revealed that the average campaign runs on 44,000 websites, leading to significant programmatic waste. In addition, advertisers are concerned about information discrepancies and data access issues. Bill Duggan, ANA's group executive vice president, predicts that waste reduction will be a top priority in 2024 as media transparency continues to evolve.

Duggan predicts that in 2024, the issue of made for advertising (MFA) websites will remain a topic of discussion. With 40 years of industry experience and 23 years at ANA, he had never heard of these websites until the research team revealed the insight. The prevalence of MFAs, which offer a subpar user experience that can negatively impact campaign performance, has increased as marketers target a wide audience. Duggan notes that the issue is complex, and many platforms and publishers believe they have been unfairly labeled as MFAs, leading to ongoing dialogue in the coming year.

A scrutinizing eye on AI

The marketing landscape was transformed by AI in 2023 following the ChatGPT craze, and its adoption is expected to grow even more in 2024. Marketers have capitalized on the excitement among consumers by developing campaigns that revolve around the technology, such as Coca-Cola’s utilization of generative AI to imagine the year 3000 within the Las Vegas Sphere. Furthermore, AI has become increasingly integrated into administrative processes. According to industry reports, eighty-seven percent of marketers have used or experimented with AI tools.

The future of AI may be challenging due to concerns about data collection and misuse, potentially leading to legal action. Despite this, AI has the potential to provide personalized experiences on a large scale, as long as it maintains a human touch. Ollie East, head of go-to-market strategy and U.S. GenAI CX lead at Capgemini, describes it as the holy grail of hyper-personalization.

“The human creativity, the human element of it, is so valuable,” added East. “It’s an integral part of the equation.”