AI Boosts Google's Potential, but Super Bowl Ad Fumble Looms in 2024: Expert Prediction
AI's impact on Google will be substantial, however, advertisers may face challenges Alongside this, the pursuit of Gen Z consumers will intensify through platforms like TikTok and gaming, while deepfake political ads could create obstacles in the media and advertising landscape
According to new predictions from Forrester, CMOs will approach the new year with optimism and a willingness to invest. As revenues stabilize and economic uncertainty diminishes, the researcher envisions 2024 as a turning point for the media and advertising industry. It predicts a marketing landscape that will shed the uneasiness of previous years, with marketers taking calculated risks and exploring new approaches in areas like artificial intelligence (AI) and gaming, while still relying on established media partners.
The ad market in 2024 will be shaped by significant events such as the political season and the Summer Olympics, offering both opportunities and challenges for marketers. Forrester cautions that the use of deepfake advertising in the political sphere could reach a crisis level, as brands and other representations are misappropriated and exploited. To tackle this issue, the firm suggests that brands demand creative scanning from ad platforms to protect themselves from being "spoofed" in 2024.
AI boosts Google but could trip up advertisers
Brand marketers are expected to increase their investment in generative AI next year, despite concerns about its potential misuse in deepfake ads. This trend will be further fueled by Meta, Google, and Amazon enhancing their AI-powered advertising capabilities. According to Forrester, Google's adoption of generative AI will strengthen its position as a trusted source for both advertisers and users, reinforcing its dominance in the industry.
According to a separate survey conducted by Forrester, 73% of online adults would turn to Google for verification of suspected ChatGPT responses. This suggests that Google is likely to utilize generative AI in order to maintain its dominance in the search market, even if it loses some queries to Microsoft's Bing due to the integration of ChatGPT. In light of these developments, Forrester advises marketers to enhance their SEO competencies and embrace holistic search marketing strategies.
However, the widespread adoption of generative AI is not without its drawbacks. Early experiments have demonstrated that poor results and hallucinations can easily spread on social media. Despite this risk, Forrester's survey of AI decision-makers revealed that 37% consider creating marketing content as the most crucial use of generative AI within their organizations over the next year. Bearing this in mind, Forrester predicts that at least one marketer will utilize AI and make a misstep during major advertising events such as the Super Bowl and the Summer Olympics, necessitating a public apology for their lack of caution.
Chasing Gen Z through gaming, TikTok
In Forrester's latest CMO Pulse Survey, 86% of U.S. B2C marketing executives expressed that their top focus is finding more effective strategies to engage with Gen Z and millennials. As a result, marketers will persistently target these younger consumer segments in the platforms and channels they frequent the most.
The research reveals that despite gaming's significant impact on culture in the U.S., advertisers are not investing enough in this channel. According to eMarketer data referenced by Forrester, ad spend on video games in the U.S. is only one-sixth of what is spent on social media. Additionally, an IAB study from earlier this year indicates that gaming receives less than 5% of advertising budgets. However, this could change in 2024 with Microsoft's acquisition of Activision Blizzard and the potential acquisition of Take-Two by Sony, both of which have been rumored for some time. The report suggests that these investments by major media players will attract advertisers due to their ad-tech capabilities and the potential to improve in-game ad offerings and address issues like ad fraud and brand safety. The report emphasizes that marketers should no longer view gaming as a peripheral option, but rather as an engaging channel that deserves a place in their media plans, thanks to its low CPMs, targetable audiences, and strong brand safety measures.
The use of linear TV is expected to decline as Forrester predicts a shift by consumers and brands. In order to reach Gen Z, marketers will need to go beyond connected TV and consider platforms like TikTok and gaming. Gen Z spends a small portion of their screen time watching TV, but dedicate more time to gaming and watching non-premium video content. TikTok is particularly popular among young adults under 35 in the U.S., UK, and France, surpassing the amount of time spent on Netflix.
According to the report, by 2024, TV and connected TV will no longer dominate consumer entertainment budgets. Therefore, marketers targeting Gen Z should explore alternatives to the traditional 'big screen' approach.
