This year has already been hugely significant for the rapidly evolving media landscape. Frankly, all publishers, broadcasters, and media companies must keep abreast of the developments heading into Q3 and beyond.
This quick guide will examine the top media industry trends that every media company must acknowledge. From cookie deprecation and data cleanrooms to AI and sustainable practices, understanding the most common preparations completed by experts in this field should enable you to develop a winning strategy.
Cookie Depreciation
Google announced plans to phase out third-party cookies in 2020, initially stating that the process would be complete by 2022. After several delays, Google has confirmed its decision to hold off on the process in Chrome until 2025. While this has reduced some pressure, professionals working in the advertising media industry must continue their preparations. Cookie Deprecation is still coming, and they will want to give themselves a competitive advantage and stay ahead of their competitors.
DoubleVerify found that 92.3% of publishers are at least slightly concerned about cookie deprecation’s impact on their business. Meanwhile, The Media Trust’s Marketing Director Gavin Dunaway stated: “Media companies will keep adopting alternatives to Google’s dominance. Companies that sell data will become more prevalent, especially in retail media”.
As such, publishers need to develop alternatives to third-party cookies ahead of 2025, when the landscape will change forever, which could mean placing a heavy focus on first-party data in a bid to keep gaining valuable insights.
Data-Clean Rooms
In a direct response to cookie depreciation, data cleanrooms will become one of the most common trends for media companies throughout the second half of 2024 and beyond. Data cleanrooms provide a secure environment where publishers can collaborate with advertisers and partners without compromising data privacy or compliance.
Broadcasters can benefit from data clean rooms by securely sharing and analyzing viewer data to improve ad targeting, content personalization, and audience engagement. At the same time, streaming platforms can use data clean rooms to analyze viewer behavior, preferences, and engagement data in a secure and privacy-compliant environment.
As advertisers seek to navigate the evolving data privacy landscape, data cleanrooms are essential for driving effective and ethical data-driven advertising strategies. Adoption rates are already up 18%. It is almost inevitable that more advertisers will leverage data cleanrooms to gain valuable insights, perform cross-platform analysis, and enhance targeting capabilities while maintaining data security and privacy standards before 2025.
Further Growth of Retail Media Networks
Retail media networks allow advertisers to reach consumers at various stages of the purchasing journey with targeted and contextually relevant ads. As more brands recognize the potential of retail media networks in reaching engaged audiences, these networks are expected to grow. In December 2023, Deloitte published a poll finding that 64% of retailers plan to implement a retail media network by the end of 2024. And it’s not hard to see why.
By partnering with a retail media network, publishers can access valuable first-party data on consumer shopping behavior and preferences. Ad placements within the retail environment can also provide publishers with additional revenue streams, reaching consumers at the point of purchase and driving advertising revenue.
Retail media networks also offer contextual advertising opportunities that align with the products and services being sold on the platform. Retail media account for 21% of total digital ad spend, highlighting the fact that media companies should actively pursue this direction if they aren’t already in a bid to optimize their ad strategies, improve targeting, and measure the impact of their advertising campaigns.
Hyper-Personalization
Hyper-personalization enables companies to understand their users and consumers better so that they can market and recommend their products and services in a way that is as personalized as possible. Its impact has reportedly produced a measurable uptick in business for 86% of companies that have adopted it, which has naturally encouraged a growing number of organizations to place added emphasis on it.
This trend reflects the growing importance of creating meaningful and personalized consumer connections while publishers can leverage hyper-personalization to enhance user engagement, drive loyalty, and increase ad revenue.
Broadcasters can leverage hyper-personalization to deliver their audiences personalized content recommendations, targeted advertising, and interactive viewing experiences. Streaming platforms can also tap into the power of hyper-personalization by curating personalized content libraries, recommending relevant shows and movies, and creating customized viewing experiences for subscribers.
Sustainable Advertising Practices
Sustainable practices have become a focal point for media experts across the entire industry. This is highlighted by the fact that 69% of global consumers confirmed in 2023 that sustainability and ESG concerns have become increasingly important over the last two years. This eco-conscious consumer behavior will likely hold more weight with consumers in 2024.
Sustainable advertising practices are relevant for publishers, broadcasters, and streaming platforms as they try to meet consumer expectations, support sustainability initiatives, and align their advertising strategies with ethical and environmental values. By integrating sustainability into their advertising practices, media companies can build trust with their audiences, attract like-minded advertisers, and have a positive social and environmental impact through their media platforms.
81% of consumerswant companies to be environmentally conscious in their advertising and messaging, forcing many businesses to take note. When combined with the latest tech advancements, the transition to ethical and sustainable practices will continue.
Contextual Targeting
Contextual targeting means delivering ads that promote products relevant to a page’s content. Given that it has been shown to increase consumer attention by more than double, contextual targeting is set to become even more critical over the coming months because of the pending cookie depreciation.
Contextual targeting is a relevant trend for publishers, broadcasters, and streaming platforms. It allows them to deliver more relevant and personalized ads to their audiences, drive ad engagement, and maximize ad revenue by aligning ads with the context of the content being consumed.
By leveraging contextual targeting, media entities can enhance the effectiveness of their advertising strategies and provide a more tailored and engaging experience for their users. This could be a key feature for modern media companies as a response to the potential loss ofindividual-level data.
AI
AI is a relevant trend in the media industry that offers a plethora of benefits, such as personalized content recommendations, automated production workflows, and advanced analytics. While not essential just yet, AI in marketing is now valued at $36bn, and embracing the right technologies can give media companies a competitive edge in an increasingly crowded market.
While AI can streamline workflows, reduce costs, and personalize content for users, it does face potential obstacles. For example, publishers could have their content stolen by people using AI platforms to create ‘content’ that was just rewriting what a publisher had on their website. When using generative AI, bias and other ethical problems may also enter the environment.
Still, 90% of marketing professionals are already using AI during customer interactions, while a growing number are prepared to try it for generating content, bridging online and offline experiences, or predicting behaviors. Spearheaded by the prospect of improved time and cost efficiency, the integration of AI within the media industry should be reviewed to see where it can be utilized.
Connected TV
With the increasing popularity of streaming services and smart TVs, advertisers are leveraging Connected TV platforms to reach audiences moving away from traditional TV. Connected TV (CTV) has become the fastest-growing major ad channel in the U.S. and is projected to expand by 22.4% and reach a total of $30.10 billion in ad spend by 2024.
Broadcasters can use Connected TV to distribute their content to viewers who prefer streaming services over traditional TV channels. By offering CTV apps or partnering with streaming platforms, broadcasters can reach a wider audience, deliver personalized content recommendations, and monetize their programming through targeted advertising. By following consumers across multiple devices, media companies can make an even bigger impact.
Connected TV is a powerful media outlet, not least because 46% of households watch it daily. Moreover, audiences are now more engaged with these adverts than those on traditional TV due to their briefness and personal relevance. Ad spending in this environment will grow, and every media group should look to develop tactics that generate increased leads and conversions.
Conclusion
Looking ahead to the second half of 2024, it is clear that the best practices will focus on utilizing the latest technologies in a more structured and comprehensive manner. By bringing new ideas together while also preparing for upcoming changes like cookie depreciation, your media group can gain a competitive advantage.
Do you need help managing your advertising inventory for increased effectiveness and cost efficiency? Contact a member of our team today.
Originally posted on ADvendio.com on 30th May 2024
