Given AI’s potential to transform industry practices now and in the future, 59% of practitioners view it more favorably than not, new research revealed. “The Digital Lead: 2024 Advertising Insights & Tech Trends” report — conducted by global strategy partner Material and B2B research company NewtonX — surveyed 250 advertising professionals to get a pulse on shifts in digital ad spending and social media strategies.
Interestingly, despite its favorable view, concerns still persisted around AI, with respondents indicating there are still unknowns about how the technology will be applied, which social media platforms are using it most effectively and whether it will result in more accurate targeting or reduced costs. Specifically, the report uncovered:
- 59% of participants saw AI as the greatest influence on the future of advertising;
- 56% of agencies and advertisers expected their budgets to increase in the next year;
- 48% of respondents said strengthening their national advertising is the top priority for 2024, followed by 26% whose top focus was improving local advertising; and
- 45% of professionals anticipated a change to their media mix because of third-party cookie deprecation.
More Advertising Spend Projected In 2024
After several lean post-pandemic years, most advertising and agency executives reported budget increases for 2024. Digital advertising is expected to constitute around two thirds of total ad spend among advertisers, while social media is the most desired allocation of spend for brand-focused advertising, with search engine marketing and social media tied with the lead for performance advertising.
Cookie Deprecation Only Draws Moderate Concern
With the end of third-party cookies looming, advertisers believe they are more prepared than previously anticipated. Many are already shifting to embrace first-party customer data strategies. Other emerging approaches include contextual and cohort-based targeting, machine-learning systems and CPC/CPA models.
“It’s no surprise AI has emerged as the key theme on advertisers’ minds in this study,” said Jackie Cutrone, CMO of NewtonX, in a statement. “We’ve harnessed the power of AI to gather and analyze this data, and along with our partners at Material, we’re committed to leveraging AI technology to provide business insights that help advertisers and brands navigate the challenges of 2024 and beyond.”
To learn more about the findings in the “The Digital Lead: 2024 Advertising Insights & Tech Trends Report,” check out the full report now.
