The year 2024 marks an important turning point for advertising with several radical changes happening simultaneously. New AI-based tools are gaining traction, and the gradual phasing out of traditional technologies, such as third-party cookies, is being planned. At the same time, economic uncertainty is increasing expectations towards marketing, demanding to demonstrate return on investment and the ability to foster growth.
These changes are reshaping the advertising landscape we know, and marketing teams that adapt with speed, creativity, and confidence will emerge strengthened from these transformations. Let’s delve into what you can expect for 2024 in detail, so you can effectively navigate the transition to the next era of marketing.
Goodbye to the old: How to prepare for the planned retirement of third-party cookies
In recent years, privacy has become a fundamental priority in marketing plans due to consumers’ increasing attention to the issue. This has accelerated changes in the industry, one of which is just around the corner: the planned retirement of third-party cookies by Google Chrome. Yet nearly half of CMOs admit they are not ready for a cookieless future. Marketing teams should take action today, considering that Chrome plans to begin phasing out support for third-party cookies in the second half of 2024, subject to final approval from the Competition and Markets Authority (CMA).
“The retirement of third-party cookies marks a turning point for privacy,” says Hanne Tuomisto-Inch, Director of Privacy Sandbox Partnerships for Europe, Middle East, and Africa at Google. “As we move towards a period of real-world testing, those who plan ahead will benefit. Define a marketing vision that respects user privacy. Additionally, rethink your website’s user experience to find alternative solutions where third-party cookies are used.”
Actions for marketing teams: Early next year, Chrome will initiate cookie retirement for an initial 1% of users to facilitate testing of Privacy Sandbox APIs in real-world environments. Prepare by allocating a portion of your budget for experimentation and learning which website infrastructure requires updating. Additionally, consult your agency to learn which privacy-focused advertising solutions to adopt, and inquire with your advertising technology providers about their operations post the planned retirement of third-party cookies. Investing today in privacy-first solutions can lead to more enduring measurements in the future.
The retirement of third-party cookies marks a turning point for privacy.
Welcome to the new: AI-driven future is now
AI is the most significant technology that has revolutionized the advertising industry since the advent of the internet and the proliferation of mobile devices. AI research has skyrocketed this year, and the debate has quickly shifted from “preparation is necessary” to “whether you’re ready or not, here it comes.” This new era of AI-based marketing is no longer about when the technology will be widespread, but what marketing professionals are doing now that it’s already here.
“We haven’t seen an impact like what AI is having on marketing in decades. In fact, GroupM estimates that by 2027, 90% of digital advertising campaigns will be influenced by AI,” says Phil Wilson, Vice President of Advertising Marketing for Europe, Middle East, and Africa at Google. “At Google, we’re already using AI for our marketing, and I truly believe this technology is a game-changer. Over time, the key to achieving results will be the combination of AI-based solutions with human expertise.”
Actions for marketing teams: You’re not competing against AI, but against other marketing professionals who are using it. The sooner you start experimenting with AI-based campaigns, the greater advantage you’ll gain. The key to achieving growth and profits with AI is to start with the basics. We’ve dubbed them AI Essentials. Once refined, you can unlock opportunities throughout your organization and enhance marketing efforts.
Rising expectations on marketing’s ability to drive growth
Amidst all these technological changes, it’s expected that this period of economic uncertainty will continue into 2024, adding further pressure in terms of marketing budget allocation and campaign effectiveness. Therefore, it’s no surprise that 45% of marketing professionals declare that their top priority is to demonstrate the return on investment.
“Marketing teams are facing a real puzzle as we look ahead to 2024. On one hand, they may see budgets shrinking, while on the other hand, there’s greater demand to generate profitable growth,” says James Cotton, Senior Finance Lead for Europe, Middle East, and Africa at Google. “To meet these expectations, marketing teams must collaborate closely with finance teams. We know from previous periods of economic uncertainty that companies that continue to invest during these times end up outperforming their competitors a few years later because they focus on long-term value rather than short-term profit.”
Actions for marketing teams: We’ve designed a new financial model to help marketing professionals accurately measure ROI, strike a balance between short and long-term objectives, and demonstrate the impact of each marketing investment on the final economic outcome. According to projections, budgets for 2024 will be tight, but the goal shouldn’t be to do more with less. Instead, work closely with the finance team to change the perception of marketing: from a cost center to a profit driver.
45% of marketing professionals declare that their top priority is to demonstrate the return on investment.
How to thrive in the next era of marketing
This transition period marks a turning point for the advertising industry. While the essentials of marketing won’t change in 2024, how they’re executed will.
It’s finally time to market a product at the speed of consumers and confidently spend every investment in the most effective way.
