Are you prepared for the future of digital advertising? Discover trends that will shape the industry in 2024 and beyond.

Lauren Wetzel, Chief Operating Officer of  InfoSum, shares how the year 2023 has brought about a whirlwind of changes for the advertising and media industries, with privacy laws constantly evolving and the economy remaining uncertain. This resulted in a landscape that was in a constant state of flux, requiring industry players to stay vigilant and adapt their approaches to stay ahead of the curve.

Advertisers and marketers can anticipate a year ahead that a mix of changes and challenges will characterize it. With advancements in technology and evolving consumer behaviors, organizations must be prepared to adjust and react to stay competitive. Despite the potential hurdles, there are promising signs that those who can successfully navigate these changes will see positive outcomes in 2024.

Increased Audience Building To Boost First-Party Data Strategies
One trend we’ve seen throughout 2023 and that will continue into 2024 is businesses prioritizing first-party data strategies. With third-party cookies finally (hopefully) being deactivated in 2024 and more widespread privacy regulations dictating how customer data can and can’t be used, brands have few excuses for not building up their first-party data resources. 

First-party data holds so much value as it is collected from customers directly and with consent, encompassing accurate and reliable data points such as transaction details, interactions and feedback. Organizations have recognized the need to grow their audiences to boost the volume and scope of their first-party data banks. To this end, we expect to see more brands boosting their content marketing activities and even developing their own retail media networks in 2024.

More Privacy-First Direct Data Collaborations 
Data collaboration is the key to unlocking the full value of first-party data. Through partnerships with Identity Providers, brands can enrich their data to build a more complete picture of who their target consumers are. Collaborations with media owners enable them to match audience profiles to find overlaps, facilitating more effective media planning. Automotive brand Renault’s direct partnership with Axel Springer is just one example of a first-party data collaboration that increased advertising effectiveness and reduced costs, driving an 18% increase in conversion rate and a 19% lower cost per click. 

Utilizing Privacy Enhancing Technologies (PETs) such as data clean rooms means these organizations can securely match their datasets without risking any data leakage or misuse. With so much to lose if any customer data is compromised, privacy mustn’t be just an afterthought in data collaboration but the foundational component. In 2024, businesses that see privacy as an enabler and not a restriction will be in the best position to get the most from data collaborations, with better outcomes and lower risks.

Retail Media Will Address Its Measurement Issues
Retail media had a big year in 2023, and ad spending in this channel is forecasted to grow by 10.2% in 2024Opens a new window . It’s a great example of effective data collaboration; brands work directly with retail partners to engage consumers at purchase, matching their first-party data to target, optimize and measure campaigns.

Measurement, though, has proved to be one of the trickiest issues for retail media. Over in Europe, the IAB surveyed more than 100 retail media buyers and seller and found a high level of dissatisfaction with the lack of standardization in the sector, especially around attribution measurement. The IAB will lead the way in developing standards for retail media, so we expect to see movement in this area over the next year. From my perspective, metrics like incremental sales lift – which demonstrates the impact of an ad campaign on product sales – must be central to measurement standards in retail media, and advertisers should be pushing retail partners to help them get a clear view of this.  

More Second-Party Data Opportunities
The expansion of retail media and other newer ad formats, such as CTV, has seen media relationships becoming more siloed. This means brands that sell their products via third parties – such as CPG brands – are finding it increasingly difficult to directly access first-party customer data, limiting their understanding of their customers. 

Without first-party data, these brands can instead utilize second-party data. Once again, data collaboration between brands, retailers and media owners can lead to better targeting while not compromising customer privacy in any way. For example, a partnership between UK broadcaster Channel 4 and loyalty provider Nectar360 has enabled CPG brands like Pepsi, Walkers, and Garnier to achieve up to 122% product sales uplift without them ever having access to Channel 4 or Nectar360’s datasets. In 2024, we expect to see more of this type of data collaboration. 

Takeaway: Reasons To Be Cheerful
While economic forecasts for 2024 – particularly the first half of the year – don’t necessarily give reasons for unbridled positivity, some encouraging trends should provide us with optimism heading into the new year. While some advertisers may be bemoaning the loss of third-party identifiers, those prioritizing their first-party (or second-party) data strategies and privacy-first data collaboration will have plenty of opportunities to progress in campaign targeting, optimization and measurement, helping them reach their wider business goals.