The objective of this Article is to provide some information related to various trends and challenges in the advertising and marketing industry in 2024.
It discusses topics such as the importance of first-party data activation, the impact of generative AI on advertising processes, the rise of emerging media channels, the significance of leading with purpose in marketing practices, and the modularization of marketing technology stacks.
The Article aims to inform marketers and advertisers about these trends and challenges of 2024, and provide recommendations on how to navigate and leverage them effectively.
First Party data activation
It is paramount in today’s privacy-conscious consumer era. First-party data refers to the information that a brand collects directly from its own customers, site visitors, app users, email subscribers, and other owned channels.
It provides direct insights into who your customers are, what they care about, and how to engage them across the buyer’s journey.
In a data-driven world, first-party data has become an essential tool for marketers looking to effectively reach and engage their target audiences.
With an estimated 2.5 quintillion bytes of data created each day, there is certainly no shortage of data available. However, without proper activation and utilization, first-party data risks becoming an unused, underutilized asset.
To leverage first-party data to its full potential, marketers need to lay a solid data foundation with robust identity resolution and data collaboration capabilities.
Identity resolution is the process of accurately associating data with people who interact with your business. It is important to create a single, accurate view of each customer across various data sets. This allows organizations to link related records together and gain better insights into customer behavior.
Data collaboration tools are also pivotal enablers of first-party data activation. They enable privacy-enhancing data processing both within organizations and with partners. By collaborating with external data partners, marketers can uncover unique insights and growth opportunities for better overall marketing performance.
Thoughtful identity hygiene and strategic data partnerships prime first-party data for advanced targeting, personalization, and measurement use cases that drive remarkable customer experiences.
With clean, unified customer profiles and ethical data collaboration, organizations gain a deep understanding of their customers, which allows them to activate first-party data effectively.
Investing in a strong data foundation with privacy-enhancing tools and capabilities is crucial for brands to deepen customer relationships over the long-term.
It enables marketers to develop personalized experiences, predict customer needs, and measure marketing performance accurately.
In short, Imagine you have a favorite toy that you play with every day. You know exactly how it works, what it does, and what you like about it. That toy is like first-party data for a marketer. First-party data is information that a company collects directly from its own customers, like you. It includes things like your name, age, and what you like to buy or do.
Now, imagine that the company that makes your favorite toy wants to make it even better. They want to know more about what you like and how they can make the toy even more fun for you. So, they use the information they have about you, like your age and what you’ve bought before, to create new toys that they think you’ll love.
But they can’t do this if they don’t have the right tools. They need special tools that help them organize and understand all the information they have about you and other customers. These tools are like a special machine that helps the company make better toys for you.
So, first-party data activation is when a company uses the information they have about their customers, like you, to make better products or services. It’s like using a special machine to understand what you like and create things that you’ll enjoy. This helps the company make more money and keeps you happy because you get toys that you love to play with.
Generative AI on Advertising Process
Generative AI has a significant impact on advertising processes in 2024. It enables marketers to automate tasks, gain insights, and create customized and engaging content. This technology revolutionizes how marketing campaigns are strategized and executed. Here are some key ways in which generative AI transforms advertising processes:
- Content Creation: Generative AI allows marketers to quickly create marketing assets and content that resonates with target audiences. It can generate personalized, automated copy, video, display ads, and more. This automation saves time and resources, ensuring that marketers can deliver timely and relevant content to their audience.
- Market Research: Generative AI simplifies data extraction and correlation, providing insights into the behaviors and motivations of prospects and consumers. It enhances market research by analyzing customer sentiment, improving customer segmentation, and refining product-market fit.
- Personalization: Generative AI enables marketers to deliver highly personalized advertising experiences. By leveraging AI-generated artwork and content, marketers can create customized campaigns that resonate with individual consumers.
- Automation of Routine Tasks: Generative AI automates routine marketing tasks, such as proofreading copy, managing ad campaign workflows, and updating customer information in databases. This automation frees up marketers’ time, allowing them to focus on higher-value tasks that require creativity and expertise.
- Enhanced Targeting and Optimization: Generative AI improves targeting capabilities by analyzing vast amounts of data and identifying the right audience for specific advertising campaigns. By leveraging generative AI, marketers can ensure that their advertising efforts are reaching the right people at the right time, leading to better campaign performance and ROI.
Emerging Media Channels in 2024
Emerging media channels are providing new opportunities for marketers to reach digitally connected consumers. These emerging media channels include mobile, streaming, and transactional ecosystems.
As consumer behavior shifts towards increased mobile usage and streaming, marketers must adapt to take advantage of these opportunities.
One area of growth in emerging media channels is retail media networks. As consumers browse and purchase more online, retailers have a wealth of shopper data and can enable targeted advertising within their owned properties.
This allows brands to reach consumers while they are in shopping mode, whether they are shopping online, in stores, or browsing an app. Retail media networks provide advanced creative, targeting, optimization, and measurement capabilities to meet campaign goals.
Another emerging media channel mentioned in the document is connected TV (CTV). With the shift away from linear TV, brands can now engage streaming audiences programmatically.
Ad-supported video on demand (AVOD) services like Hulu and Tubi are gaining popularity, offering brands access to engaged viewing environments.
Programmatic CTV provides advanced creative, targeting, optimization, and measurement capabilities to meet campaign goals. It is predicted that more than $30 billion will be spent on CTV ads by 2025.
In-app transportation advertising is also mentioned as an emerging media opportunity. Ride-sharing and food delivery platforms have amassed large user bases, and brands can advertise within these apps to connect with audiences on the go.
Geo-targeting and user context allow for highly relevant messages. As daily activities become increasingly digitized, new media exposure opportunities emerge.
Significance of Leading with purpose in Marketing Practices
Leading with purpose in marketing practices means that brands are not just trying to sell products or make money, but they also want to make a positive impact on the world. They want to do things that are good for people and the planet.
This can include things like using sustainable materials, reducing waste, or supporting causes that help others. When brands lead with purpose, it shows that they care about more than just making a profit, and it can make people feel good about buying from them.
When brands prioritize purpose in their marketing practices, they go beyond superficial messaging and demonstrate a genuine commitment to environmental and societal well-being. This authenticity is crucial in building consumer trust, as consumers are becoming more discerning and seek evidence of a brand’s genuine commitment to sustainability.
Leading with purpose also involves integrating sustainability into the core business model, rather than treating it as an afterthought or a marketing trend. Brands like Patagonia and Unilever have successfully embraced sustainability as a central part of their purpose.
Patagonia, for example, has built its entire brand ethos around protecting nature and empowering responsible consumers. Unilever has committed to sustainable growth by setting ambitious goals around waste reduction, sustainable sourcing, and carbon footprint reduction.
In addition to messaging and business practices, brands should also prioritize sustainable advertising practices. This includes measuring and offsetting carbon footprints associated with digital advertising, exploring sustainable advertising methods, and considering the environmental impact of marketing and advertising practices.
By addressing these concerns, brands can align with causes that are important to today’s consumers and enhance their brand reputation.
Modularization of Marketing Technology Stacks
Imagine you have a big box of Lego blocks. Each block is a different tool that helps with marketing, like sending emails or analyzing data. Instead of using all the blocks together in one big structure, you can pick and choose the blocks you need and put them together in different ways to build something that fits your specific needs. This is called modularization.
It allows marketers to create their own customized marketing systems by selecting the tools they want and arranging them in a way that works best for them. It’s like building your own unique Lego creation instead of using a pre-made set.
The modularization of marketing technology stacks refers to the trend of breaking down traditional, all-in-one marketing technology solutions into smaller, independent tools or components. These components are designed to excel at specific functions and can be easily integrated and swapped out as needed, without disrupting the entire tech stack.
This shift towards modularization allows marketers to have more flexibility and control over their technology infrastructure. Instead of being locked into a single vendor’s limited capabilities, marketers can choose the best-of-breed solutions for each specific need and customize their tech stack to fit their unique requirements.
The concept of modularization in marketing technology stacks is similar to building blocks. Marketers can select and assemble different components in various combinations to create a stack that aligns perfectly with their strategies and objectives. This approach enables marketers to adapt and adjust their technology architecture to meet the ever-changing demands of the market.
The foundation of a modular marketing technology stack is often a Customer Data Platform (CDP). The CDP serves as a central hub that ingests and organizes customer data from various channels and sources into a universal framework. This allows for better data connectivity and enables marketers to leverage customer insights across different platforms and tools within the stack.