Recently, Forrester, a renowned research and advisory firm, released two insightful reports forecasting the 2024 landscape for media, advertising, and ad agencies. These reports indicate a continuous, significant disruption by technology, particularly AI, leading to profound shifts in the business models within the media and advertising sectors. Here are some key predictions outlined by Forrester.
Major media corporations, including Meta, Google, and TikTok, are projected to solidify their dominance as we move into 2024. Forrester’s research suggests that Generative AI will evolve Google into an even more powerful entity, reinforcing its status as the leading search engine. A recent survey by Forrester showed that 73% of online adults prefer to use Google to verify information from ChatGPT, indicating Google’s continued trust as an accurate information source.
Forrester also anticipates that big media companies will significantly influence the rise of video gaming as the fastest growing ad-supported media channel in 2024. Despite widespread video game usage, its adoption as an advertising medium has been slower compared to other channels. Forrester notes that only a fraction of U.S. ad spend on video gaming compares to the larger budget for social media advertising. However, with substantial investments from large media companies and the evolution of ad gaming, it is expected to address longstanding marketer concerns about fraud and brand safety.
Further, Forrester highlights significant activities in the gaming industry, including Microsoft’s bid to acquire Activision Blizzard and potential acquisitions by Sony, indicating a growing interest in gaming as an advertising platform. Additionally, a considerable number of U.S. adults regularly engage in mobile gaming, with a substantial portion dedicating at least an hour daily to this activity.
Looking forward to 2024, Forrester makes several more predictions for the tech and advertising world
A marketer will likely have to publicly apologize for improperly using generative AI during a major televised event such as the Super Bowl or Paris Summer Olympics.
Deepfake ads, especially in the political arena, will become a significant source of misinformation during the election cycle. Google has announced that it will require political advertisers to disclose any AI use in their ads.
With Gen Z as a target demographic, TikTok will increasingly benefit from media budget shifts away from traditional linear television, which is losing its appeal among younger audiences. Moreover, more live sports are expected to transition from traditional broadcast to streaming services.
For ad agencies, 2023 has been a year of experimenting with AI, and 2024 is expected to be the year of AI implementation. Agencies are predicted to fully embed AI into their capabilities, technologies, workflows, and business models by the end of the year. Forrester anticipates that agencies will invest in creating “brand-specific” AI models using various data sources, including tech company data, audience and creative data, first-party client data, and brand standards. This approach will enable more personalized marketing messages. Forrester expects the largest agencies to invest collectively around $50 million in developing and utilizing custom AI solutions for their clients.
Additionally, operational costs are predicted to decrease due to AI’s efficiency, leading to increased revenue and a resurgence in the creative and content capabilities of agencies. Forrester predicts an increase in agency reviews by clients concerned about AI management, as well as a decrease in the need for specialized digital ad agencies due to the comprehensive capabilities of genAI. PR agencies are expected to see an increased demand of about 5% due to the polarizing political landscape and the substantial political ad spend anticipated for the U.S. 2024 elections.
In sum, Forrester’s reports envision a 2024 where ongoing technological advancements, particularly in AI, will continue to reshape the media, advertising, and agency sectors, paving the way for innovative strategies and operational efficiencies.
