Generative AI Ranks Second in Marketers’ 2024 Budget Forecasts

Digital advertising landscape poised for growth: Marketers are set to maintain or increase ad spending across all channels in the latter half of 2024, with social media and digital display leading the charge, according to Mediaocean’s 2024 H2 market report.

Top consumer technology trends: Connected TV (CTV) and streaming emerge as the most significant trends, followed closely by generative AI and social video platforms like TikTok.

• 56% of marketers identified CTV and streaming as a top trend, highlighting the growing importance of these platforms in reaching audiences.
• Generative AI ranked second at 55%, indicating its rapid adoption and potential impact on marketing strategies.
• TikTok and social video platforms were recognized by 47% of respondents, underscoring the continued relevance of short-form video content.

Projected increases in ad spending: Social media and digital display/video are expected to see the most significant boosts in investment.

• 66% of marketers plan to increase spending on social media platforms, reflecting the channel’s effectiveness in reaching target audiences.
• Digital display and video advertising are close behind, with 64% of respondents intending to increase their budgets in these areas.
• CTV is also gaining traction, with 55% of marketers planning to increase their investments, aligning with its top ranking as a consumer technology trend.

AI adoption in marketing: Data analysis and market research emerge as the primary use cases for artificial intelligence in marketing strategies.

• 45% of marketers are leveraging AI for data analysis, indicating its value in extracting insights from complex datasets.
• Market research is the second most common AI application, utilized by 40% of respondents to gain deeper consumer insights.
• Copywriting (27%) and image generation (22%) are also seeing adoption, suggesting AI’s growing role in content creation.

Performance-driven paid media takes center stage: A significant majority of marketers prioritize investments in channels that offer measurable results and direct impact on business objectives.

• 69% of respondents view performance-driven paid media as the most critical investment, highlighting the industry’s focus on ROI and accountability.

Rising importance of first-party data: Marketers are increasingly recognizing the value of owned customer data in developing targeted and personalized campaigns.

• 35% of respondents identified first-party data as a critical capability, marking a 25% increase from 2023.
• This shift reflects growing concerns about data privacy and the phasing out of third-party cookies.

Ad verification priorities: Measurement and real-time decision-making capabilities top the list of critical factors in ad verification.

• 33% of marketers ranked measurement as the most critical aspect of ad verification, emphasizing the need for accurate performance tracking.
• Real-time decision-making capabilities were prioritized by 23% of respondents, indicating a desire for agility and responsiveness in campaign management.

Methodology and scope: The report’s findings are based on a comprehensive survey of marketing professionals conducted in July 2024.

• Over 1,200 marketing professionals participated in the survey, providing a broad perspective on industry trends and priorities.
• The timing of the survey in July 2024 offers insights into marketers’ plans and expectations for the second half of the year.

Implications for the advertising industry: The report’s findings suggest a dynamic and evolving landscape in digital advertising, with significant opportunities and challenges ahead.

• The continued growth in ad spending across channels indicates overall optimism in the industry, despite economic uncertainties.
• The rise of CTV and streaming, along with the increasing adoption of AI, points to a rapidly changing technological environment that marketers must navigate.
• The emphasis on performance-driven media and first-party data highlights a growing focus on accountability and privacy-conscious marketing strategies.
• As the industry adapts to these trends, marketers will need to remain agile, continuously updating their skills and strategies to stay competitive in an increasingly complex digital ecosystem.