3 key adtech predictions to help drive innovation in 2024

3 key adtech predictions to help drive innovation in 2024 Seedtag’s Nick Timms rewinds and fast forwards to explore how with gen AI, interest-targeting, and first-party data, the right strategy can enable personalized advertising while still respecting user privacy. Nick Timms, SVP of Strategy at Seedtag, shares 3 key adtech predictions to help drive innovation in 2024 2023 has been defined by strict privacy regulations and complex global economics. Before we dive into the adtech predictions for 2024, let’s rewind by taking a look at this year and key themes to reflect on. AI-driven targeting soared, firmly securing its foothold, while video content continued to command the spotlight. Concurrently, heightened privacy concerns propelled an increased interest with contextual targeting. Ad trends shifted, with notable growth in CTV and in-game ads. Business leaders strove to find the perfect balance between automation and human expertise. Overall, advertisers’ emphasis has remained steadfast on privacy, innovation and authentic connections, signaling a move toward user-centric experiences and responsible practices. With Generative AI, interest-targeting, and first-party data, the right strategy can enable personalized advertising while still respecting user privacy. Consider the following predictions for a competitive edge: 1. The impact of gen AI on adtech’s transformation 1. The impact of gen AI on adtech’s transformation Generative AI is increasingly employed across various job roles to boost developer productivity and improve workers’ knowledge. In a recent McKinsey study, it was found that 79% of individuals have been exposed to generative AI, and that 22% of them are regularly using it in their work life. This huge headwind is behind the first prediction for 2024: marketing strategies will continue adopting generative AI, which enables brands to seamlessly integrate contextual creative messaging into captivating content at scale. Our industry has increased focus to prioritize attention, as higher attention goes hand in hand with brand uplift and client’s business outcomes. Generative AI helps advertisers adapt creatives at scale for different online content, enhancing ad visibility and user engagement. Today, attention optimization is largely based on the placement. Hence, there is great potential in ensuring that attention-optimized opportunity is leveraged with the right contextually integrated creative. Since the average attention span is just eight seconds, capturing and holding interest has become increasingly vital. How can marketers get ahead of this? Understand the power of generative AI: start exploring generative AI solutions from companies like OpenAI (and its Dall-e solution) to understand what’s possible. Feed your generative AI with the right data: use advanced analytics in combination with contextual technology to identify the most relevant interests of a given page to fuel your at-scale creative optimization. Measure effectiveness: work with a measurement company capable of measuring the effectiveness of integrated contextual and neutral creatives to evaluate the benefits to your outcomes. 2. The rise of interest-based targeting 2. The rise of interest-based targeting McKinsey & Company highlights the success of diverse, equitable and inclusive companies in meeting diverse customer needs. However, demographic targeting often relies on stereotypes, overlooking individual preferences. This leads to inaccurate assumptions. Also, it often collects data via invasive third-party cookies. The second prediction for 2024 is that brands will leave behind demographics, turning to interest-based targeting for personalized advertising that is more likely to capture authentic interests of their wide-ranging and increasingly diverse audience. Interest-based targeting tailors ads to individual preferences, enhancing relevance and engagement. Notably, 52% of consumers feel frustrated when receiving communications and offers that aren’t relevant to them. Interest-based targeting remains unaffected by the demise of third-party cookies and free of the bias and stereotypes of demographic targeting. How can marketers get ahead of this? Embrace contextual targeting: it’s both scalable and inclusive – to focus your campaigns on consumer interests and move beyond demographic limitations Understand underrepresented groups: use data-driven insights to better understand the unique interests and values of underrepresented groups. 3. The power duo of first-party and contextual data 3. The power duo of first-party and contextual data As Chrome, Safari, and Firefox restrict third-party cookies, and numerous governments enforce privacy-focused regulations, privacy-preserving applications used to maximize the value of a brand’s first-party data become essential. The next prediction for 2024 is the emergence of contextual platforms offering the ability to onboard first-party data in a privacy-compliant approach, identifying the most relevant contextual interests and audiences to a brand’s customer. But why does this matter? A brand’s first-party data holds the keys to smarter marketing when used effectively. Traditional approaches are difficult to scale due to changing privacy regulations. The duo of first-party data combined with contextual predictions presents a scalable and precise solution for finding the right audience. How can marketers get ahead of this? Enhance your first-party data: connect with contextual companies to enhance your first-party data, discovering new audience interests and predictive planning. This helps pinpoint the highest-affinity pre-built segments and audiences. You can also create tailored contextual audiences that perfectly match your customer interests. These adtech predictions for 2024 collectively tackle a critical challenge facing advertisers: privacy-preserving personalization. This issue stems from the declining reliability of third-party cookies and stricter privacy regulations, making personalized advertising that respects user privacy more challenging. Generative AI, interest-based targeting, and first-party data are key tools addressing this challenge, enabling personalized advertising while safeguarding user privacy. Advertisement Advertisement