The big trends for 2024 include a major shift of ad dollars to CTV and “the death of the dongle”, according to LG Ads Solutions’ CMO Tony Marlow. Here are a few of his predictions for the year ahead:
“In 2024, we anticipate a significant and continued shift of advertising dollars from linear TV to Connected TV (CTV),” Marlow said. “This change is part of the "big shift" observed over the past few years, driven by consumers spending more time viewing CTV content. Notably, the rise in popularity of free, ad-supported streaming services offers advertisers a prime opportunity to engage with consumers in their increasingly preferred medium. Moreover, the introduction of ad-supported streaming options on major platforms like Netflix and Disney+ has expanded the available inventory. This transition is expected to accelerate in 2024.”
In the 2024 Presidential Election, CTV will emerge as a groundbreaking battleground for political advertising: “2024 will mark a significant shift from traditional broadcast political advertising to more personalized, digital video platforms,” he said. “With CTV's ability to target specific demographics, locations, and interests, political campaigns will leverage CTV’s addressability to tailor their messages more precisely than ever before. This strategic move not only reflects the changing landscape of media consumption but also acknowledges that younger, tech-savvy voters are more likely to be influenced through digital streaming services. Consequently, CTV advertising will play a pivotal role in shaping political narratives, offering an unprecedented level of engagement and message customization in the realm of electoral politics.”
Death of the Dongle: “In 2024, Smart TVs will continue to solidify their position as the dominant household device, largely due to their native CTV capabilities surpassing dongle-based solutions,” Marlow said. “The increasing affordability and accessibility of Smart TVs have already led to 77% of US TV households owning one as of 2023. This trend is poised to accelerate as viewers more frequently update their TVs and increasingly prefer the seamless experience of using built-in streaming features. The convenience of accessing favorite streaming apps directly through the TV, without the clutter and complexity of external dongles, is a significant draw. Consequently, advertising strategies that rely on dongle-based CTV footprints may need urgent reevaluation, in light of the clear consumer shift towards native CTV functionalities in Smart TVs.”
Impact of the Writer’s Strike: “The 2023 writers’ strike drove viewers to delve into the extensive back catalog of existing content via streaming platforms,” he said. “In 2024, it will be interesting to see how sticky these behaviors become. The strike has already sparked a resurgence in consumer interest in ‘repeat content’, and this trend may lead to persistent viewership habits. Even with the production of new content in the new year, there's a potential for a lasting shift towards viewers increasingly engaging with on-demand streaming services for their backlog of content."
Live Sports Will Drive Viewership and Ad Spend: “2024 will be a big year for advertising around sports,” he said. “The summer Olympics, in addition to major tentpole events like March Madness and the Super Bowl, will be a hot commodity for advertisers looking to reach large audiences. And while linear sports viewership won't dissipate entirely in the new year, streaming will continue to capture more eyeballs. In turn, advertisers will quickly snap up relevant CTV inventory knowing that they can marry scale with creativity on how to best engage these audiences. With CTV’s interactive format capabilities, these advertisers will see payoffs with increased audience engagement and outcomes.”
The Future of TV is a Personalized, Lean-In Experience: “The future of television is shaping up to be an immersive canvas of personalized, interactive experiences,” he said. “We are entering an era where TV is not just a device for passive viewing, but a dynamic platform for engagement and interaction. Leveraging the power of data and AI, the industry is poised to transform television into an interactive experience, tailored to each viewer's unique preferences. This includes integrating cloud gaming directly into TVs, offering viewers the chance to play high-end games without additional hardware. Furthermore, shoppable experiences in CTV ads and content are emerging, allowing viewers to make purchases directly from their screens. On-demand content continues to evolve, offering a rich and diverse range of programming accessible at any time. With this seamless blend of engaging content, innovative advertising, and interactive features, the television revolution will not only captivate audiences but also provide advertisers with unprecedented precision and impact in connecting with their audiences."
AI is set to generate innovation: “While the conversation around AI in the industry has been rapidly evolving, its full potential and applications are still being explored,” he said. “By 2024, we anticipate a more pronounced impact of AI in the CTV space, especially in two key areas: targeting and creative. In targeting, the efficiency of AI will be paramount, enabling the creation of audience segments with a level of precision and speed that far exceeds traditional methods. This advanced segmentation will drive relevance and conversion, ushering in a new era of effectiveness and efficiency. On the creative front, AI offers a massive opportunity for testing and optimizing content. Marketers will be able to delve into a broader range of testing scenarios, moving well beyond the limits of traditional A/B testing by rapidly developing a large volume of AI-generated creative options. This approach allows for the fine-tuning of creatives to an unprecedented degree, ensuring maximum resonance with the target audience. At LG Ads, we're already capitalizing on this power, but by 2024, we expect its wider adoption across the industry, with other players leveraging AI to build and refine creative units at an unparalleled scale."
“This trend marks a transformative period for the CTV industry, where AI is not merely an auxiliary tool but a central pillar in shaping the future of content and advertising,” he concluded.
