2024 marks a pivotal moment for advertising with several seismic changes happening at the same time.
New AI-powered tools are landing and legacy technologies, like third-party cookies, are planned to gradually phase-out. At the same time, the uncertain economic climate is increasing expectations to demonstrate marketing return on investment and drive growth.
These changes are reshaping the advertising landscape as we know it. And marketers that adapt with speed, creativity, and confidence will come out stronger on the other end.
Let's break down what's expected to come in 2024 so you can successfully make the transition to the next era of marketing.
Out with the old: Preparing for the planned deprecation of third-party cookies
Privacy has become a key priority on marketing plans in recent years, driven by increasingly privacy-conscious consumers. This has expedited changes to the industry, with a big one just around the corner: the planned deprecation of third-party cookies by Google Chrome. Yet nearly half of CMOs say they are not prepared for a cookieless future. Marketers should take action today, as Chrome plans to begin phasing out support for third party cookies in the second-half of 2024, subject to final approval from the Competition and Markets Authority (CMA).
"Third-party cookie deprecation marks an inflection point for privacy,” says Hanne Tuomisto-Inch, director of Privacy Sandbox partnerships for Europe, the Middle East, and Africa at Google. “As we move into a period of real world testing, those who plan early will benefit. Set your vision for marketing that respects user privacy. Also think about your site experience and determine alternative solutions where you have third-party cookie dependencies."
Actions for marketers: Chrome will start deprecating cookies for an initial 1% of users early next year to facilitate testing the Privacy Sandbox APIs in real-world environments. Prepare by allocating budget to test and learn what website infrastructure to update. Also speak to your agency about adopting privacy-preserving ad solutions, and to your adtech providers to understand how they will operate after the planned phase out of third-party cookies. Investing in privacy-forward solutions today can lead to more durable measurement in the future.
Third-party cookie deprecation marks an inflection point for privacy
In with the new: The AI-powered future is now
AI is the most significant technology to disrupt the advertising industry since the advent of the internet and the proliferation of mobile devices. Searches about AI skyrocketed this year and the conversation swiftly moved from “getting ready” to “ready or not”. This new era of AI-powered marketing is no longer about when the technology will arrive, but rather what marketers are doing now that it's here.
“We've not seen anything like the impact AI is having on marketing for decades. In fact, GroupM estimates that 90% of digital ad campaigns will be influenced by AI by 2027,” says Phil Wilson, vice president of ads marketing for Europe, the Middle East, and Africa at Google. “We already use AI to power our marketing at Google, and I truly believe we are at a tipping point with this technology. The key ingredient as we move forward will be combining AI-powered solutions with human expertise to drive results.”
Actions for marketers: You’re not competing against AI — you’re competing with other marketers who are using AI. The sooner you start experimenting with AI-powered campaigns, the greater advantage you’ll have. The key to driving growth and profitability with AI is starting with the basics. We call it the AI Essentials. Once you have these in place, you can unlock opportunities throughout your organisation and supercharge your marketing.
Rising expectations for marketers to drive growth
Amidst all these technological changes, the uncertain economic outlook is expected to continue in 2024 — and this is increasing expectations to validate marketing budgets and campaign effectiveness. It’s no surprise then, that 45% of marketers say that demonstrating return on investment is a top priority for them.
“Marketers are facing a real conundrum as we go into 2024. On the one hand, they might see budgets shrink, but on the other there’s an increased need to drive profitable growth,” says James Cotton, senior finance director for Europe, the Middle East, and Africa at Google.
“To meet these expectations, marketers should closely collaborate with their finance teams. We know from previous periods of economic uncertainty that companies that continue to invest during these times, end up outperforming their competitors a few years down the road as they focus on long-term value rather than short-term profit.”
Actions for marketers: We've designed a new financial model to help marketers measure ROI with precision, find a balance between short and long-term objectives, and demonstrate the impact of every marketing pound on the bottom line. Budgets are projected to be tight in 2024, but the focus shouldn’t be on doing more with less. Instead, work closer with your finance team to change the perception of marketing as a cost centre to a profit centre.
45% of marketers say that demonstrating return on investment is a top priority for them
Thriving in the next era of marketing
This transitional period marks a watershed moment for the advertising industry. While the fundamentals of marketing aren’t changing in 2024, the way we achieve them is.
The time has finally come when you can market at the speed of consumers and spend every pound in the most effective way with confidence.
