3 Trends for Advertisers to Watch in 2024
From shifts that will reshape how brands connect with their audiences to the role of AI in the advertising industry, here are the top 3 trends you should know to better equip your business for the new year:
- Stability in digital ad spend- According to analyst, Paul Verna, “After 2024, we’re not likely to see big swings in digital ad spending.” “Given the maturity of digital ad spending, what we expect to see going forward is slow but steady growth with fewer ups and downs than we saw when the market was still developing.”¹
- The compound annual growth rate (CAGR) for US digital ad spending experienced a robust 13.5% during the pandemic years from 2019 to 2023, as per forecasted estimations.
- However, looking ahead to our forecast period until 2027, the CAGR is anticipated to drop below 10% for the first time in over a decade, settling at 9.3%. In the upcoming year, US digital ad spend is projected to reach $306.94 billion, a rise from $270.24 billion recorded this year.
2. Ad supported streaming will continue to gain popularity- The future of streaming media lies in ad-supported models. Further convergence of streaming ad prices is anticipated.
- In the coming year, with the introduction of an ad-supported tier by Amazon Prime, Prime is projected to generate $3.13 billion in ad revenue, surpassing Roku to become the third-highest earner among streaming services.
- The number of US ad-supported video-on-demand viewers is expected to reach 180.2 million in 2024.
- Apple TV is predicted to be the final major streaming service to introduce an ad-supported tier.
3. Nielsen and TV measurement- Nielsen’s stronghold on TV measurement is diminishing, facing challenges from changing viewing patterns and the emergence of connected TV (CTV). Despite this, the company is set to maintain its influence in a diverse currency landscape by leveraging its digital currency and strong industry connections. According to Verna, Nielsen possesses a distinct digital currency independent of its traditional panel, along with extensive infrastructure, expertise, and strong relationships with media companies. As a result, Verna anticipates Nielsen to endure and remain a significant player for an extended period.
¹eMarketer, December 2023
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