AI, e-commerce and advertising: Key trends you need to know
Article by Harley Ramien, Director, Asia Pacific, Bonzai
While there’s no shortage of uncertainty as we countdown to 2024, the crystal ball seems to have a few things in focus for the next trip around the sun. From the long-anticipated shift from third-party cookies, to first-party data to the harnessing of AI, and the evolution of e-commerce, here are five key tech trends set to shape how brands connect with customers.
The race for first-party data
2024 is set to be the year of first-party data with Chrome deprecating third-party tracking cookies over the year, following the lead of other browsers having already implemented similar changes. Brands will be focused on strategies to build their valuable first-party data, built up from purchasing signals tracked via loyalty programs, registered users, CRM, and so on.
Brands will turn to publishers to harness their vast contextual and enriched datasets from either registered users or gleaned from the type of content being consumed in real time. Combinations of both publisher and advertiser data via data cleanrooms have been a topic of interest and it will be interesting to see how this is picked up over the year.
The shift promises contextual interest targeting, enabling a more precisely tailored match for brands between creative and audiences. The focus on sharper targeting will help reach the right audience with specific intent, ultimately leading to increased conversion rates and effectiveness.
Focus on innovative advertising
The adoption of more premium and effective ad solutions is a growing trend, which is only set to continue from an effectiveness and user experience perspective. Clients are reporting that campaign budgets can be extended up to seven times just by using more effective formats.
Brands demand more premium sponsorship opportunities and publishers are accommodating via a range of high-impact and bespoke formats. This means more curated and higher quality ad experiences on-site, resulting in a longer-lasting impact, from awareness to engagement through to conversion. We’re seeing further development toward solutions that overlay first-party data or contextual insights with premium ad formats. This delivers more personalized and relevant experiences, which are particularly effective for e-commerce.
As smartphone user numbers worldwide reach an estimated 4.6 billion, likely to surpass 5.1 billion by 2028, mobile internet traffic already claims nearly 60% of total web traffic. In response to this growth, there’s a need for a more expansive, premium mobile ad format that would extend the in-ad experience via a seamless, scrolling user experience. This would also drive brand awareness and communicate additional product information in an unobtrusive, impactful way.
Innovative new ad formats like BrandStory outshine competitors with triple the ad space and 2.8 times greater time in view than single-scroll ad formats. This addresses the demand from brands worldwide for more real estate that drives real results by seamlessly intertwining awareness, exploration and action in one comprehensive solution.
E-commerce to continue upward trajectory
We’re witnessing the takeoff of e-commerce across the board, supercharged from the shift during lockdown when businesses of all sizes realized the value of having a direct relationship with their consumers. On top of the sales, e-commerce lets advertisers own the data relating to the customer and the sale; a huge factor in the boom.
E-commerce will see sustained growth as brands demonstrate a willingness to invest in channels that streamline the conversion process and build a direct line to their customers. We’re seeing a take-up of in-banner transactions, shoppable video, contextual targeting and dynamic e-commerce ads that play a pivotal role in the transformation.
AI is quickly moving from a novelty to being embedded in a multitude of platforms to increase effectiveness and revolutionize the landscape, for the overall marketing function and the specific ways we engage with technology. This includes content creation and messaging to get a better handle on insights and planning, particularly leveraging the abundance of first-party data. The wealth of information from this data will serve as a fertile ground for extensive learning and the development of models tailored to audience insights.
Surge in digital outdoor and connected TV channels
In the coming year, brace for a significant expansion in alternative advertising channels, particularly digital outdoor and connected TV. We anticipate substantial growth and innovative strategies as these channels evolve to become pivotal players in the advertising landscape. We have seen clients connecting their digital out-of-home and digital display campaigns with live data, meaning interactions with the digital campaign can be relayed to out-of-home screens – another space to watch.
The future of consumer-driven digital experiences
As we step into 2024, the world of advertising will present some exciting opportunities for publishers, advertisers, and consumers alike. The strong focus on first-party data, the use of AI, the evolution of online shopping, the rise of different advertising channels, and the march toward new ad formats paint a picture of innovation, integration and adaptability. It’s a call for advertisers and publishers to work together, align their strategies with what consumers look for and create a landscape where creativity, data insights and modern technology come together for a more engaging advertising experience.
About the author
Harley Ramien, Director, Asia Pacific, Bonzai
Harley Ramien is a highly experienced professional in the fields of creative technology and advertising, with more than 14 years in the industry. He consistently delivers exceptional results for some of the world’s major brands. As the Director for the Asia-Pacific region at Bonzai, Ramien plays a pivotal role in guiding the company toward continued success, pushing boundaries and driving ongoing success for Bonzai’s partners in the region.
Bonzai is a Creative Automation Platform that enables marketers and designers across the globe to build personalized creatives across channels, formats and screens. Since 2013, the Bonzai platform has been using cutting-edge technology to simplify the creative production process for customers such as News Corp, The Guardian, Nine Entertainment and direct-to-consumer brands. Bonzai’s self-serve product helps its users become more productive and agile in generating creative content, and win customers with relevant digital marketing.
Bonzai is headquartered in Singapore, with offices in Sydney and Pune, India. For more information visit www.bonzai.co.
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