Online advertising: Trends and challenges in 2024

Hyperpersonalization, the increase in the popularity of contextual targeting, dynamic advertising, Brand Safety... Analysis of trends and challenges that await online advertising in 2024.

Paweł Sypczuk, CEO of Audience Media Group, a Polish media group providing effective digital marketing solutions, analyzes the trends and challenges that await online advertising in 2024.

Hyperpersonalization

One of the most frequently mentioned trends that is likely to dominate online advertising in 2024 is hyperpersonalization. How is hyperpersonalization different from personalization? Personalization uses customer data that has already been collected. Hyperpersonalization, in turn, is based on data available in real time (e.g. location, time of day, products viewed, pages displayed) and combines them with advanced technologies. This strategy of adapting advertising content to the individual preferences, behaviors and needs of a specific user is not a particularly new discovery in digital marketing. The first campaigns appeared quite a few years ago. However, it seems that the rapid development of artificial intelligence will contribute to taking this strategy to a completely different, higher level.

A world without cookies

However, brands that plan to use hyperpersonalization in their marketing strategies face a real challenge. Such detailed knowledge about customers requires data, and this data is increasingly difficult to obtain in today's online world - which assumes the lack of cookies. Once again, we have learned the "official" date of the complete withdrawal of 3rd party cookies, which this time is the end of 2024. January 4 this year Google has begun a trial period of testing an anti-tracking feature that will eventually limit websites' access to third-party cookies. Although for now this change will affect only 1% of Chrome users around the world, it makes us realize that the times of completely free collection of customer data are gone forever. It's time to discover new and, above all, effective targeting possibilities. According to Kantar Media's annual "Media Trends and Predictions" report, marketers will place increasing emphasis on various targeting methods that will try to understand consumer attitudes, values and behaviors.

The increase in popularity of contextual targeting

Advertisers will be able to prepare for a cookie-free world by creating strategies that rely on first-party cookies. They can also focus on advertising activities that use contextual targeting, i.e. those that are based on the content of the website (context) and not on previous user behavior. This ad targeting respects users' preferences while providing them with relevant content. Contextual targeting – like hyper-personalization – is not a new strategy. Thanks to progress in the development of artificial intelligence - and here is another similarity with hyperpersonalization - it can reach a higher level and enable a much deeper analysis of the content in the context of which an advertisement will be displayed to the user. Global contextual advertising spending is expected to reach $227.38 billion in 2023, and this number is expected to more than double by 2030, reaching an estimated $562.1 billion.

Dynamic ads

It is predicted that in 2024 there will also be a noticeable trend of marketers going beyond classic display advertising. Dynamic advertising may become more popular. It is a method of automated advertising service that uses customer data in real time and also updates the advertising message in real time, creating personalized messages.

Video advertising domination

In 2024, video advertising will strengthen its position, and as practitioners predict, it will be the dominant form of advertising communication. Are there any changes to this format? We will certainly see more and more optimization of video content for viewing without sound. Integration with artificial intelligence and AR and VR will also be noticeable, which will make the relationship with recipients even more engaging.

Brand Safety

Another trend that is strengthening its position in the context of online advertising - especially in combination with dynamically developing artificial intelligence and the increase in the popularity of contextual targeting - is Brand Safety. Brand safety is a term that refers to practices and strategies designed to protect a brand from the negative effects of placing its advertising in the context of inappropriate, controversial or harmful content. On the one hand, new technologies have given advertisers the possibility of more advanced and effective methods of targeting and personalizing advertising. On the other hand, with the emergence and dynamic development of generative artificial intelligence, the threat of questionable quality of pages or entire websites filled with content created by artificial intelligence has unfortunately become more intense. Brands investing their budgets in online campaigns should be aware that ads may be displayed on content that is not created by humans and consciously decide to be present in such publications.

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Hyperpersonalization, the increase in the popularity of contextual targeting, moving beyond classic display ads towards dynamic ads, the dominance of video advertising, Brand Safety... These are, of course, not all, but some of the most important trends that we will encounter in online advertising in 2024. Using them in marketing activities, marketers can effectively attract attention, increase conversions, gain a competitive advantage and keep brands safe in the constantly evolving world of online advertising.