From the decline of cookies to the rise of generative AI, the media agency landscape in 2024 is bracing for a series of transformative changes and challenges. Following numerous forecasts from analysts and agency heads, Digiday has compiled more predictions from the agency world following surveys with ad leaders.
Generative AI has rapidly infiltrated the advertising world, offering new possibilities for content creation, campaign optimization, and internal training. As agencies delve deeper into AI applications, brand safety and transparency are becoming critical considerations. Agencies are further adapting to the integration of generative AI in influencer marketing, particularly on social media.
Audio was far from the forefront of the survey, but perceptions are shifting in the advertising world back toward both digital audio and even OTA AM/FM. The latest Cumulus Media/Westwood One Audio Active Group Advertiser Perceptions study revealed that 82% of marketing professionals are now commuting, up from 63% last year.
While this is still a lower rate than the average American, radio advertising is poised to benefit, both through increased listening in automobiles and renewed acknowledgment of its effectiveness among advertisers and media buyers.
There’s a growing trend towards merging creative and media functions within agencies. This shift is driven by the blending of brand and performance goals, the sophistication of influencer content, and financial pressures on holding companies.
Retail media networks witnessed a nearly 10% growth in 2023, reaching $119 billion and the new year is expected to see further growth. This will likely cause a need for standardization in measurement and terminology. Major and independent agencies are enhancing their expertise in this sector, with programmatic offerings by DSPs becoming increasingly prominent.
With the anticipated phasing out of third-party cookies, advertisers are preparing for a major shift in online advertising strategies. The focus is on incorporating privacy and data tools, with new measurement methods like attention and ID alternatives gaining traction.
For fast trends, 96% of agencies surveyed anticipate maintaining or increasing YouTube spending in 2024. 65% of agencies expect a rise in CTV budgets, compared to only 10% predicting an increase in linear TV spending. Social media spend continues, with 43% of agencies foreseeing increased spending on TikTok, while 28% expect a rise in spending on Meta platforms.
