Get ready for significant changes within the digital video advertising landscape in 2024. After a long wait, Chrome is finally saying goodbye to third-party cookies, marking a pivotal moment in the world of programmatic advertising. Yet, that’s just the beginning. The online digital community is gearing up for an exciting year – the boom of CTV advertising, AI personalization, immersive videos, and more. Here are some online video industry trends you can expect to see in the following year.
Video Content and Video Trends for the Next Year
With 92% audience reach worldwide, video has been steadily dominating throughout 2023, especially short-form videos like Reels and TikToks. This video industry trend will certainly continue going into next year. But aside from shorts and user-generated content (UGC), which has been gaining more and more traction due to its relatability, what more can we expect?
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Major brands are increasingly using immersive content like AR and 360 videos in their advertising strategies to enhance audience engagement. For instance, Grand Marnier collaborated with Blippar to feature AR at their promotional events, delivering visitors a unique experience with 3D visualizations.
While using AR at live events is nothing groundbreaking, there’s a growing trend of AR in online video advertising as well. For instance, the eyewear group Marcolin launched an online campaign with promotional videos to give users an online 3D AR try-on experience for their eyewear collection. AR apps, shopping experiences, and interactive campaigns (e.g., Gucci Beauty and Dermavant AR Snapchat campaigns) present great advertising opportunities for the future.
Similarly, 360 videos have been gaining popularity. This dynamic media lets users watch a single video from any angle possible as if they were there. This trend will likely inspire publishers with OTT streaming services focusing on live-streaming events such as concerts and sports games.
Live Streaming Still Going Strong
One prediction for 2024 is that live streaming will continue to grow in popularity. Based on data from previous years, live streaming is on steady footing within the streaming world. Currently, it has a global audience reach of almost 28% and is the third most popular video format. This is not so surprising, as live streams get quite positive reactions from audiences since they encourage real-time interactions and direct feedback.
Video Monetization and Advertising: What’s Next?
When it comes to monetization and programmatic advertising, the start of the year brings about potentially huge changes for the industry. With behavioral targeting declining in relevance, Google’s Privacy Sandbox stepping onto the scene, many streaming services introducing AVOD models for their platforms, and new AI projects underway, 2024 is looking to be a year of true innovation. So, what exactly awaits us in the upcoming months?
Post-Cookie Era Starts!
Google’s third-party cookie phase-out is finally scheduled to start at the beginning of 2024. And while many were initially worried that this would lead to the downfall of online advertising, for now, it seems like it might be a step in the right direction.
In today’s digital era that prioritizes user safety and privacy, third-party cookies are outdated and unreliable. However, while there are many problems with behavioral targeting, it was, and still is, the backbone of many digital advertising campaigns. So, what can advertisers do now that this switch is happening?
Advertisers can prepare by focusing on first-party cookies (creating new strategies relying on first-party data). They can also opt for targeting alternatives such as contextual targeting and familiarizing themselves with new tools that Google offers, Topics API, and other Sandbox features.
Rise of Contextual Targeting
As a consequence of the third-party cookie phase-out, we can expect to see contextual targeting become the go-to alternative for advertising. As a form of personalized targeting that relies on website page content (context) and not the user’s previous online behavior to serve ads, contextual targeting is a viable solution for the future advertising landscape. Even in the last few years, contextual targeting has shown satisfactory results. One of the more recent examples is the study conducted by AVCA involving AI contextual targeting. According to George Winslow, Senior Producer at TVTech, the main conclusion of the research is that “consumers pay 4X more attention to CTV ads when they are contextually targeted with AI”.
The Boom of CTV Advertising
CTV ad spend is expected to surpass 42 billion dollars by 2028. This is because publishers and advertisers see huge potential in the monetization of streaming services. Interestingly enough, globally, online users have voiced out that they prefer low-cost AVOD to high-cost SVOD streaming platforms. This has made it possible for many new ad-supported streaming platforms to emerge. Now even larger companies such as Amazon and Fox are jumping on the trend (Freevee and Tubi). In the following years, we will definitely see the continuous growth of CTV advertising.
Personalization With the Help of AI
As briefly mentioned, AI is steadily gaining sound ground within the advertising ecosystem. One of the more recent and interesting additions is Google’s new Project Magi, an AI-generated search engine. Magi is Google’s attempt at implementing AI SEO-based marketing. While still in testing, the main idea behind Magi is to focus on conversational and personalized results instead of keywords. This allows users to make purchases directly within the search results without visiting a website.
This could potentially reduce web traffic on external websites and downgrade the value of ad inventory. However, it is still unclear how this will affect the e-commerce and publishing industry in the grand scheme of things.
Kick Off 2024 With TargetVideo
Keep up with the latest video industry trends with the help of TargetVideo’s video revenue & engagement platform. With our premium video monetization, superior video platform, HTML5 video player, original video content, and quality ad demand, we offer publishers everything they need to generate more revenue from their website/app. What’s more, TargetVideo also offers its advertisers a premium advertising solution, packed with a large network of premium publishers, exclusive original video content, all industry-standard ad formats, and organic reach – data-driven targeting that reaches the right audience even in a cookieless environment. For an all-in-one solution for publishers, media houses, brands, and agencies, look no further than TargetVideo.
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