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If it seems like everyone around you has been getting the adventure itch lately, they’re in good company: More than 90% of Americans are planning to take a trip in 2024, with 50% intending to travel more this year than they did last year.
While concerns over inflation linger, with 54% of Americans reporting that the economy is impacting their travel plans, more than half still have ranked travel as a budget priority for 2024. And with "relaxing and recharging” ranking as the number one reason Americans want to travel this year, it seems that a good portion of consumers value the opportunity to unwind enough to feel that travel is worth the splurge, despite inflationary concerns.
Airlines, hotels, and other travel businesses looking to connect with these budget-conscious, relaxation-seeking consumers face new and unique challenges, from shifting consumer habits to rapidly evolving technologies. To set their teams up for success and make the most of the opportunities available to them in 2024, marketing leaders will need to understand these challenges and implement fresh strategies to address them proactively.
Inflation has been a constant thorn in consumers’ and marketers’ sides in recent years, with consumer price inflation increasing by a whopping 19.32% between January 2020 and April 2024. Many consumers are adjusting accordingly and have begun dedicating more of their budgets to travel: Where only 24% of Americans planned to set aside $4,000+ for travel in 2023, that number has risen to 52% in 2024.
Still, price is still top of mind for many consumers—15% have cancelled or postponed a trip in 2024 due to the cost of travel—and travel marketers would do well to factor that into their advertising messaging, emphasizing discounts, low rates and bundles while highlighting value for price-conscious consumers.
Loyalty programs should also be front-and center, as 50% of US consumers in 2023 were airline travel rewards members, and 49% were hotel travel rewards members, according to a panel done by Basis Technologies in partnership with GWI. By crafting ads that highlight value and low rates, travel marketers can speak directly to the factors that are most relevant to consumers.
The initial years of the pandemic brought about many shifts in consumer behavior that are still with us today, including (but certainly not limited to): An explosion of remote work, a renewed focus on health and sustainability, increased digital engagement, and a heightened sense of budget-consciousness. All these factors are now driving new audience segments and travel trends.
For example, the rising number of people who now work from home has helped spur the formation of a new audience segment: “bleisure travelers,” or people who travel for a combination of business and leisure. At the same time, solo travel has increased by 42% among US consumers since before the COVID-19 pandemic, according Basis/GWI research. And, surprise trips are gaining ground amongst US consumers this year, with 52% of travelers interested in taking a vacation where the location and all the accompanying details are a surprise until departure.
Each of these audiences display unique characteristics and behaviors that advertisers can use to connect with them more effectively, and travel marketers who want to reach them should adjust their tactics accordingly. This could be by leveraging a customer relationship management (CRM) platform to collect, organize, and research customer data; using machine learning technology to analyze first-party data and identify patterns, trends, and other insights; or investing in a researcher (or team of researchers) to organize and dig into existing data so it can be used effectively. Regardless of which method(s) they use, advertisers must consider the unique wants and needs of these new and emerging groups and adapt their campaigns to meet those needs.
Which leads us to our next challenge…
While personalization in digital marketing has become a must-have for all industries, it’s particularly impactful for travel and tourism brands. In fact, 86% of travelers say they’re looking for personalization during their travel experiences and interactions. And personalization isn’t just a trend on the marketing side—businesses are leaning into it to improve product and service experiences as well.
Delta Airlines, for instance, uses personalization technology to deliver personalized in-flight entertainment, onboard amenities, and more to customers. Hilton also leverages customer data—specifically, data obtained through their Hilton Honors loyalty program—to provide a more intimate and individualized customer experience.
Marketers should personalize the experiences they curate for consumers to complement personalization on the product and services side. For example, a hotel brand might craft one variation of ad creative that emphasizes amenities that would appeal to families, and another that’s geared toward solo travelers. Or, a tourism company that offers immersive local experiences might target audiences 21+ with creative that features alcoholic beverages.
Capturing audience information and leveraging it, however, are two different things entirely. Marketing teams need systems to both collect this data and connect it to their CRM platforms to create personalized advertising experiences. The challenge? Many marketing teams today use a variety of point solutions to navigate the complexity of the digital media landscape. And, as a result, many travel marketing teams struggle with poor data quality and a lack of data consolidation.
There are a variety of ways to address this, from upping your team’s number of data analysts to investing in tech like customer data platforms (CDPs) and universal reporting systems. Marketing teams with robust and secure systems for gathering, storing, and making the most of customer data will be well-positioned to create meaningful and personalized campaigns—especially looking ahead to the cookieless future.
While it might be tempting to imagine that Google will continue to delay the loss of third-party cookies in Chrome in perpetuity, the cookiepocalypse will inevitably arrive, and it will do so in the not-too-distant future. According to Google’s latest announcement, the tech giant’s current goal is to begin cookie deprecation in early 2025. If all goes according to plan (which, granted, is a pretty big “if”), that means travel brands and agencies only have about six months to get their ducks in a row before losing the targeting and attribution enabled by third-party cookies. As such, it’s critical that travel brands and agencies proactively strengthen their team members’ fluency with cookieless targeting and attribution this year in order to set their businesses up for success once third-party cookies are gone for good.
In terms of cookieless advertising solutions, activating first-party data should be a top priority, as most travel brands have the ability to collect large amounts of first-party data from customers and prospective customers through their interactions on brands’ websites and social media pages. However, that data is often siloed across many different third-party vendors, preventing advertisers from leveraging it to its full extent. As such, travel brands must adopt systems like CDPs—which can collect first-party data from many different sources, process and standardize it, and perform real-time segmentation for targeting—to unify their first-party data and use it for cookieless targeting and attribution. CDPs can also empower advertisers to map out their consumers’ buying journeys to assist with attribution.
Contextual advertising will also be an essential targeting solution for travel advertisers in a cookieless world. Given that the majority of US consumers use digital resources to research their trip accommodations before booking, there’s a big opportunity for travel brands of all kinds to connect with consumers in ideal moments as they plan their vacations.
To better connect with their target audiences throughout their customer journey, travel marketers need to keep a pulse on shifts in consumer behavior. By first identifying key shifts in consumer behavior, travel brands can ensure that audiences are seeing the right messages at the right time.
What might this look like in practice? Well, a brand who wants to earn solo travelers’ dollars might focus on streaming video ads to build awareness of their products and services, since these travelers often watch online videos to occupy their down time on their solo travels. Teams could then retarget these prospective travelers via paid search or native ads as they move from awareness towards consideration and purchasing.
Or, a travel agency working with a brand that wants to reach road trippers might focus on connected TV (CTV) and other digital video channels during early stages of the customer journey, as well as roadside digital out-of-home (DOOH) billboards, since these travelers watch a lot of online videos and spend a significant amount of time on the road. With retargeting, advertising teams can then place additional, personalized ads across digital channels like audio (for the drivers listening to their favorite music and podcasts) and social media (for the passengers posting photo dumps of their travels) to move these customers further down the funnel. By both leaning into current consumer trends and thinking holistically about their path to purchase, travel brands can make meaningful connections with travelers throughout their individual journeys.
For travel marketers to ensure great experiences for their target audiences and consumers, it’s critical that they embrace the latest technological innovations. And the last couple of years have seen particularly rapid advances in this area, as generative AI has become more popular with consumers and advertisers alike.
First and foremost, travel companies need to ensure their customer-facing technology ensures a great experience, as consumers’ path to purchase is increasingly digital. As noted previously, most US consumers use digital resources to research their trip accommodations before booking, with more and more younger consumers in particular using generative AI tools to assist in their travel planning. And consumers are increasingly reserving their travel digitally, which is driving a growth in digital sales. Data from Vivvix and Pathmatics show that the travel brands who spend the most on advertising are also the top digital advertising spenders, indicating that top brands are tailoring their strategies in response to the rising preference for digital.
For brands, perfecting a digital presence will help with both garnering new customers and retaining existing ones. At the very least, a brand’s digital presence must ensure a good customer experience: When prospective customers see an ad for a company but encounter overly-complex or faulty tech when they click on it (i.e., their click brings them to a “page not found” error on the company’s website or to a hard-to-navigate app), that experience can have negative impacts on conversions, not to mention customer loyalty.
Additionally, travel marketers should take advantage of newer technology-driven tactics to maintain a competitive edge. One prominent example of a technology-enabled tactic that travel advertisers can embrace is dynamic pricing. Advertisers working for airlines and hotels can use factors such as time of year, day of the week, and corporate versus leisure travelers to estimate the right price point to drive conversions. Using technology backed by artificial intelligence, it’s possible to make these adjustments based on daily changes in market demand. Some pricing engines have the power to update fares as often as every 15 seconds, and businesses are starting to see the huge difference this makes in bookings.
Though this new technology-driven strategy can result in significant benefits for travel advertisers, it can also present distinct challenges. To use dynamic pricing requires much more than just investing in the tech: Marketing teams must also rework their data management processes, including integrating CRM and revenue analytics. This can be made even more difficult if customer data is messy or has not been consolidated to a single interface—another reason why it’s so important for travel and tourism advertisers to prioritize data quality and tech stack consolidation.
More and more travelers are looking for environmentally sustainable travel options, with 80% of travelers worldwide agreeing that sustainable travel is important. And while it’s true that marketing teams may not have much say in their company’s larger sustainability initiatives, there are ways they can prioritize the environment through their advertising practices.
First and foremost, marketing teams should avoid greenwashing at all costs. Making sustainability claims that a brand can’t back up is inauthentic and diminishes consumer trust. And, these damages often extend beyond tarnishing a brand’s reputation: Making false or misleading claims can negatively impact customers’ experiences with the products or services they provide.
Additionally, there are strategies that digital advertising teams can use to help minimize their carbon footprint. One such strategy is to prioritize capturing audience attention over serving as many impressions as possible—especially since anywhere from 30% to 40% of online ads are “not ultimately viewed by consumers.” Another is by streamlining internal processes to reduce the amount of computing power needed for a typical campaign workflow. Rather than using many point solutions, consolidating to a single, automated platform for every step of the campaign can help advertising teams further minimize their environmental impact.
By leaning into sustainability, even in ways that may not be immediately apparent to consumers, travel and tourism brands can back up authentic statements about their commitment to the environment—and in doing so, match their consumers’ values.
All in all, one of the most important factors in marketing teams’ success this year will be how well they understand their consumers’ behaviors, values, and expectations.
To meet the needs of these travelers, marketing teams must be flexible and intentional, consider the entire customer journey, lean into personalization, emphasize their value in an authentic way, and adapt to innovations in technology. It’s a lot to consider, but hey—so is making all the arrangements for a memorable getaway!
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Agency marketers working in the travel industry are adapting not only to shifting consumer behavior, but also to massive changes taking place in the advertising industry and in the agency world specifically. Curious as to how your agency peers feel about their jobs, their agencies, their industry, and the challenges and opportunities that are shaping their futures? Check out our 2024 Advertising Agency Report to find out.
From an increasingly complex media landscape, to the Great Resignation and an ongoing talent crunch, to prolonged economic uncertainty, to signal loss and heightened regulatory action, advertising agency leaders have faced a myriad of challenges that have impacted their operations, strategic planning, and financial profitability over the past several years.
Beneath the surface of these more visible challenges, a quieter yet equally significant issue plagues agencies: inefficiency. In fact, in a recent survey of agency professionals, respondents identified inefficient processes as the biggest challenge facing their agency today. These processes show up in a variety of critical areas, spanning project management, communication methods, resource allocation, client management, technology utilization, workflow processes, and more, and add an additional layer of complexity to the challenges advertisers are already navigating.
Not only do inefficient processes drain valuable time and resources, but they also hinder agencies’ ability to deliver high-quality campaigns promptly. When teams are burdened with inefficiency, it can create a ripple effect that damages client relationships, leads to employee burnout and turnover, and ultimately impacts an agency’s bottom line. As such, assessing and improving process efficiency is crucial for agency leaders who want to remain competitive, adapt to rapid industry changes, and ensure sustainable growth.
High turnover rates have long been a challenge for advertising agencies, with recent years seeing an outsized impact on junior-level employees. Though many factors impact employee turnover, inefficient processes can be a significant driver—particularly at a time when agency professionals already feel as though their jobs are harder than they were in the past.
Amidst these pressures, inefficiency can severely affect wellbeing and job satisfaction. Inefficient, duplicative workflows exacerbate stress, leading to frustration as employees spend excessive time on repetitive, low-value tasks. This also leaves less time for mentorship and meaningful collaboration, both of which are critical for engaging and retaining younger generations of talent. Frustration from inefficiency often culminates in burnout and/or disengagement, as workers feel overburdened by obstacles that impede their productivity and hinder their ability to deliver high-quality work.
For agencies that are already navigating talent retention woes, inefficiency can further exacerbate them: As skilled professionals become disillusioned with the lack of progress and innovation within their team, they might become more likely to seek opportunities elsewhere. And, the resulting high turnover rates not only disrupt team dynamics but also incur significant costs in terms of recruitment, training, and lost expertise. Research has found that employee disengagement and attrition could cost a median-size S&P 500 company $228 million per year—or more.
Addressing inefficiency is therefore crucial for building a positive workforce culture and preventing turnover and burnout—particularly as many agencies strive to accomplish more with fewer resources. By carefully evaluating processes and looking for ways to streamline operations, agencies can significantly improve both productivity and job satisfaction.
Specifically, leaders might consider using employee surveys and/or an internal efficiency audit to gauge how existing processes are working—or not working—within their agencies. For instance, if team members are overwhelmed by repetitive tasks, AI tools could help optimize workflows and free up employees to focus on more strategic, creative, and high-value projects. Such tools not only enhance collaboration but also allow for a more dynamic and responsive work environment, in which agency professionals feel empowered and fulfilled by their work. Or, if employees are making errors due to using too many different communication channels, leaders might consider unifying those efforts into a single platform to minimize errors and allow their teams to focus their energy on more creative, fulfilling tasks. By leveraging employee insights to identify ineffective processes, leaders can ensure they’re prioritizing the efficiency improvements that will have the greatest impact on their teams’ work and wellbeing.
Beyond impacting agency workforces, efficiency—or lack thereof—shapes client relationships. Nearly half of agency professionals say client relationships are more strained today than they were two years ago, and that sentiment is even more pronounced among those who feel that digital advertising has grown more difficult over that same time period.
When agencies struggle with inefficient processes, project timelines can become unpredictable, leading to missed deadlines and delayed campaign launches. Clients rely on timely delivery to meet their marketing goals, and any delay can disrupt their strategic plans, resulting in frustration and dissatisfaction. Additionally, inefficiency can lead to inconsistent communication and coordination, eroding trust and weakening the client-agency relationship over time.
Inefficiency can also compromise the quality of the work produced. When teams are bogged down by redundant tasks, they have less time to focus on creativity and innovation. The resulting campaigns may lack the strategic insight and originality that clients expect, ultimately affecting their brand’s performance in the market. As agency leaders look to minimize inefficiency among their teams to improve client relationships, tools like advertising automation software can prove particularly useful: By breaking down siloes and integrating all advertising activities in one place, leaders can ensure better coordination, communication, and execution across their teams.
Inefficiency can also significantly impact agencies’ bottom lines by draining resources and reducing overall profitability. For instance, consider an advertising agency tackling multiple high priority client campaigns during a particularly busy period. Due to outdated project management processes, employees spend excessive time completing manual data entry, communicating with clients over a variety of disparate channels, and navigating repetitive approval processes. Instead of using a unified platform, the team relies on multiple spreadsheets and email chains to track project progress, leading to confusion and errors. This disorganization requires employees to work overtime to meet deadlines, resulting in higher labor costs. And when working overtime to manage inefficiency becomes the norm, high rates of burnout and turnover are sure to follow.
Even more, despite those additional hours worked, the quality of the output does not improve—that extra time is spent on managing chaos rather than enhancing creativity or delving more deeply into strategic planning. The campaigns delivered likely lack the innovative edge expected by clients and fail to capture audience attention in today’s competitive digital environment. This can lead to the agency’s profitability suffering as they pay more wages without seeing an improvement in deliverables, suffer from strained client relationships, and face the potential of lost business as a result of this strain.
To address these inefficiencies, this agency might opt to centralize their task management, workflow, communication, and collaboration into one unified platform, reducing their reliance on spreadsheets and email chains. Additionally, they could use AI tools to help with the low-level tasks that currently monopolize their employees’ time, freeing them up to focus on more fulfilling, creative work.
Addressing inefficiency, then, not only helps agency leaders to build a strong workforce and maintain good relationships with their clients, but also increases their profitability and ensures their long-term sustainability. By streamlining processes, adopting automation and AI tools, and fostering a culture of efficiency, agencies can reduce labor costs, enhance the quality of their work, deliver more impactful campaigns, and set themselves up for long-term growth and profitability.
Though advertising agency leaders face a variety of challenges, inefficiency is one that cannot be ignored. With its potential to strain workforces, worsen talent retention woes, burden client relationships, and hurt agencies’ bottom lines, ignoring inefficiency comes at a steep price. In prioritizing efficiency, agency leaders can not only enhance productivity and morale but also position their businesses for long-term success in an increasingly competitive industry landscape.
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Want more insights on how agency professionals feel about the challenges and opportunities impacting their jobs, agencies, and industry as a whole? We surveyed advertising professionals across the US to understand how they feel about the state of advertising agencies in 2024. Check out our 2024 Advertising Agency Report for all the top takeaways.
Artificial intelligence (AI) has played a significant role in digital advertising for years now. Initially used for basic data analytics and targeting, the technology has evolved considerably since its first applications in advertising, and its use has grown more advanced and widespread in kind. Today, digital advertisers rely on AI for campaign automation, data-driven decision-making, creative optimization and personalization, audience insights, and more.
Over the last several months, a specific type of AI has been making big waves—specifically, the kind that can write and perform songs, turn images into poetry, and clone individuals’ voices with an alarming level of accuracy. Since generative AI (GenAI)’s public debut in late 2022, leaders have begun to test its new features within their campaigns, particularly those related to content creation, design, and creative optimization/personalization. And given GenAI’s pattern recognition and data processing abilities, this technology also has the potential to have a significant impact on analysis, media buying, and even strategic decision making. All in all, it’s not hard to imagine a world where the efficiency, speed, and ease of launch GenAI offers shapes nearly every aspect of the digital marketing process.
But with the opportunities it offers come warnings and concerns from a variety of experts, as well as questions around its appropriate usage and regulation. With GenAI regulation in its beginning stages, leaders must understand what aspects of GenAI use will likely become regulated and stay abreast of legislative developments in order to make the most of the technology while maintaining compliance and fostering consumer trust.
In summer 2023, the EU came out with the world’s first comprehensive AI regulation: the EU Artificial Intelligence Act. The law was approved by the European Parliament in March 2024, and the EU has since established an AI Office that is tasked with implementing the regulation.
The EU AI Act approaches AI regulation by classifying different AI technologies and outlining specific obligations for providers of those technologies according to their level of risk. Beyond outright banning certain types of high-risk AI systems, it also establishes regulation for lower risk and general purpose GenAI. For instance, the act requires that GenAI providers comply with existing copyright laws and disclose the content used to train their models. It also requires that companies disclose when their content has been manipulated by AI.
Though agency leaders and brands not operating in the EU aren’t legally required to comply with this legislation, they can benefit from understanding, and perhaps even embracing aspects of, the AI Act. For example, some teams may want to disclose when their content has been AI-generated or modified—not just because the AI act requires companies working in the EU to do so, but because 75% of consumers feel it’s important. Whether or not businesses working outside the EU choose to comply with parts of the AI Act, understanding its requirements for advertisers is beneficial, as they may reflect consumer preferences around AI, and may eventually be adopted in US legislation.
The US, on the other hand, has yet to implement any nationwide, comprehensive AI regulation. But that doesn’t mean it hasn’t been a topic of significant discussion and focus.
Over the last few years, Congress has held committee hearings on oversight of AI, and in September 2023, Senate Majority Leader Chuck Schumer convened a closed-door AI insight forum where tech leaders, two-thirds of the Senate, and labor and civil rights leaders gathered to discuss major AI issues and implications.
Since then, many bills have been introduced aimed at regulating AI. Additionally, House leaders recently announced a new, bipartisan AI task force that will explore how Congress can balance innovation and regulation as AI technology continues to evolve—with a focus on its intersection with safety and security, civil rights issues, transparency, elections, and more.
Beyond these developments on Capitol Hill, President Joe Biden signed an executive order in late October 2023 on the “safe, secure, and trustworthy development and use of artificial intelligence.” Though this order outlines clear action steps for the oversight and regulation of AI—including implementing standardized evaluations of AI systems, addressing security-related risks, tackling questions related to novel intellectual property, and more—these are just strong recommendations at present and would require congressional action to become enforceable law.
This order also tasks the Department of Commerce with developing a report that outlines potential solutions to combat deepfakes and to clearly label artificial content. Though the results of this report are forthcoming, brand and agency leaders should be aware that its outcomes could have an impact on how they label marketing collateral that is AI-generated. The executive order specifically cites watermarking as a potential way to label such content, and it’s possible that marketing teams could be responsible for watermarking all AI-generated content in their campaigns in the future.
Additionally, the Federal Trade Commission (FTC) has made it clear that AI oversight and regulation is one of their current areas of focus. They have proposed new AI-related protections, and, at the IAB’s recent Public Policy & Legal Summit, they emphasized how critical it is for advertising leaders to be aware of the risks of bias, privacy, and security posed by GenAI, and to regularly conduct AI-focused risk assessments to help mitigate these potential risks.
In terms of US copyrighting-related regulations, AI-generated content currently cannot be copyrighted. However, the Copyright Office recognizes that “public guidance is needed,” especially when it comes to works that include both human-generated and AI-generated content. As such, they have launched an agency-wide initiative to further explore these issues.
At the state level, nearly all US legislatures in session are considering AI-related bills. Many of these are focused on algorithmic discrimination, which is when an AI-powered tool treats an individual or group of people differently based on protected characteristics. Like the EU’s AI Act, several of these bills approach AI regulation by distinguishing between high-risk AI systems vs. more general-purpose AI models, with different regulatory requirements depending on a tool’s classification.
Though AI-related regulation in the US remains primarily in the realm of guidance for now, advertising leaders can proactively utilize this guidance to plan for the impacts of forthcoming regulations. By building out systems to safeguard consumer safety and trust against the risks posed by AI now, advertising leaders can foster an environment of ethical AI usage, and set their teams up to adapt effectively as regulation becomes more concrete.
In many ways, what we’ve seen so far is just the beginning of AI regulation, and advertisers can expect to see a lot of movement in this space in the months and years ahead. Those brands and agencies that seek to understand current guidance to develop ethical AI practices will be well-positioned to adapt as these new regulations and recommendations arise.
At present, advertising and marketing leaders can benefit from expanding their knowledge and understanding of new GenAI tools, as well as their potential risks. Digital advertising leaders should be aware of the top threats GenAI poses to advertisers, including its ability to:
To navigate these risks, it can be helpful for teams to conduct AI-focused risk assessments and to request their partners/vendors do the same, so they can identity and proactively address any challenges specific to the tools they are using. And, when it comes to using AI-generated content, simply ensuring that all materials are reviewed and edited by a human can help prevent biased content from ever leaving the chat box or image generator, and can halt the spread of mis- and disinformation. By implementing these processes now, brands and agencies will have a leg up as more concrete AI regulation develops in the future.
As generative AI continues to evolve, so too will the regulations that govern it. Marketing and advertising leaders will be well-served to approach this technology in a balanced way that allows them to both harness its power and navigate its risks. By putting systems in place to evaluate and assess AI tools and to address their potential risks head-on, leaders will not only ensure they’re using this technology in safe and productive ways but will also prepare their teams for complying with the types of legislation we’re likely to see coming down the line.
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Want insights on how marketers and advertisers are using generative AI and how they think it will change the industry moving forward? We surveyed over 200 marketing and advertising professionals from top agencies, B2B and B2C companies, non-profits, and publishers to understand how industry professionals feel about GenAI’s impact on the advertising industry—and how it could shape the future of marketing.
In March 2024, US employment across advertising, public relations, and related fields reached an all-time high, with ad agencies accounting for the largest portion of these jobs. However, this job growth doesn’t negate the longstanding challenge of high turnover within the advertising industry, particularly among junior-level employees.
To help mitigate turnover, the vast majority of hiring managers—in advertising and beyond—say they plan to hire in 2024. And as agencies and brands approach either filling newly-created positions on their teams or replacing those left vacant by employee departures, it’s increasingly likely that many of their candidates will be members of Generation Z.
The last several years have seen an influx of Gen Z workers: 17.1 million joined the US workforce in 2023, and they are forecast to overtake the number of baby boomers entering the workforce in 2024. While each generation is distinct, Gen Z is particularly so, having been shaped by the digital age, prolonged economic turbulence, and the COVID-19 pandemic. Because of this, agency and brand leaders who fail to adapt their hiring, engagement, and retention strategies for Gen Z may struggle to meet their distinct needs and expectations, which could in turn lead to long-term workforce challenges.
Born approximately between 1997 and 2012, Gen Z is the first generation of true digital natives, with all its members having grown up at a time when the internet was a ubiquitous part of daily life. Members of this generation are also more racially and ethnically diverse than any prior generation, as only a slim majority—52%—are non-Hispanic whites. As a result, they care deeply about inclusivity and embracing diverse perspectives in their interactions and decision-making. Gen Zers are also adaptable and resilient, as a result of events like the 2008 financial crisis, the COVID-19 pandemic, and subsequent economic uncertainty shaping many of their formative years.
Further, Gen Z has established itself as a socially conscious generation, one that cares about action over words and isn’t afraid to take a stand on social and political issues. Members of this generation expect brands to do the same, with mental health, caring for the environment, and racial and gender equity being 3 of the top values that Gen Zers want brands and companies to support—in honest and authentic ways. And given the high expectations they have for brands as consumers, it’s likely those who pursue careers in the advertising industry will hold their employers to the same standards.
Many Gen Zers were wrapping up college, obtaining internships, and securing their first jobs as the COVID-19 pandemic surged.
This timing led some members of this generation to take time off college or delay graduation; for others, their internships or first job offers were rescinded as employers in advertising and beyond were forced to make cutbacks; still others started their jobs in under-resourced, overworked, and all-remote environments, contributing to high levels of burnout.
Even after the pandemic peaked, this tumult didn’t end—the years that followed were characterized by the Great Resignation, which was especially pronounced in the advertising industry. All in all, Gen Zers’ first experiences in the workplace were largely characterized by layoffs, thoughts of quitting, or actual quitting.
Given their turbulent entry to the workforce, it’s no shock that Gen Z workers aren’t as engaged as older generations, and that they continue to experience higher levels of job-related stress and burnout. Additionally, many managers say they struggle to connect meaningfully with their Gen Z employees, with 3 in 4 managers reporting that Gen Z employees are difficult to work with, and nearly half experiencing this difficulty all or most of the time.
Given Gen Z’s increasing presence in the workforce, current employment growth in the advertising industry, and the fact that agency leaders are already articulating concerns about recruiting and engaging workers from this generation, brand and agency leaders must be proactive and intentional as they implement strategies to support their Gen Z employees.
Like every other generation, Gen Z has been shaped by the unique societal and technological context of their coming of age. Brand and agency leaders who seek to understand this, and then embrace strategies that meet this new generation’s needs, can enhance productivity, bolster engagement, foster creativity, and improve retention in the years ahead.
This generation has grown up immersed in technology, making them adept at navigating digital platforms, adapting to ever-changing tech, and understanding online trends. Agencies and marketing teams can tap into this expertise in a variety of ways. For instance, leaders can empower their Gen Z workers to play a meaningful role on digital campaigns or projects on platforms they’re intimately familiar with, such as TikTok, Instagram or Snapchat. Managers can also give Gen Z employees the chance to showcase their knowledge around the latest digital trends, platforms, and tools they use with their broader teams, such as through collaborative workshops.
Though many organizations seem to be walking back their commitments to diversity, equity, and inclusion (DEI), agencies and brands looking to support their Gen Z employees (and, frankly, all their employees) should be doing the opposite. Prioritizing and investing in these programs is not only good for employees, but also for businesses’ bottom lines.
As the most diverse and educated generation in the workforce, Gen Z is increasingly advocating for diversity and inclusion with their employers. In fact, 56% of Gen Zers say they would not accept a job without diverse leadership, and 68% feel their employer is not yet doing enough on this front.
Brand and agency leaders looking to promote diversity among their teams can start by ensuring their hiring practices are attracting and supporting a diverse talent pool. This could include evaluating job descriptions for potential biases, building diverse interview panels, and doing outreach to underrepresented groups.
Beyond their hiring practices, leaders can also invest in regular training and education, such as workshops or summits, for all employees. Focusing on education can help raise awareness, build empathy, and equip all employees with the tools to foster an inclusive workplace.
“We’ve learned in the last few years that Gen Z employees value flexibility,” says Goretti Duncker Joseph, Director of Total Rewards at Basis Technologies. “Flexibility builds trust and loyalty—employees want to work for a company that cares about their wellbeing and demonstrates that through their policies,” she continues.
When leaders hear “flexibility,” many might think this only refers to where employees work—and that being flexible means adopting an all-remote approach. But Gen Zers, within advertising and beyond, have indicated that this isn’t the case: In fact, a recent study found that only 11% of Gen Z workers want to be fully remote.
While a hybrid work approach might work for some businesses, employers can also foster flexibility by allowing employees to work earlier or later than the traditional 9 to 5 time frame, to help foster balance between their work and personal lives and mitigate potential burnout.
“Flexibility isn’t just about when and where employees are working,” adds Duncker Joseph. “We’ve found that the Gen Z population also values flexible benefits that meet their unique needs.” This could look like providing student debt repayment programs, since many Gen Zers are working to pay off student loans, offering telemedicine benefits alongside traditional health insurance, or including mental health benefits such as free access to virtual therapy and life coaching. By leaning into opportunities to grant their workers flexibility, agency and brand leaders can help foster the trust and loyalty that is foundational to long-term retention and engagement—particularly among Gen Z.
In a recent conversation with Gen Zers on their struggles working within the advertising industry, many shared they felt a lack of personal connection with their teammates and craved mentorship. Many said they feel they’re not given enough direction, and want guidance and support as they develop their skills. Given their entrance to the workforce during the isolation and upheaval of the early days of the COVID-19 pandemic, this desire for mentorship and connection with teammates beyond their own generation makes sense.
To support this desire for personal connection and mentorship, agency and brand leaders might consider implementing formal mentorship programs within their organizations. These programs can pair Gen Z employees with experienced professionals who can offer guidance, share industry insights, and provide constructive feedback. At the same time, they create space for Gen Zers to share their own unique expertise. Creating a structured mentorship framework helps foster meaningful connections and facilitates knowledge transfer.
“We’re bridging the mentorship gap for our Media Operations team, which is largely composed of early-career professionals, by connecting them with seasoned revenue team members at Basis,” says Marissa Enfield, Group VP of Media & Ad Operations at Basis Technologies. “By facilitating a combination of one-on-one and group learning over 6 months, we aim to enhance our team’s understanding of our campaign workflow and address vital career themes like burnout prevention and goal setting.”
Additionally, leaders can support their Gen Z talent by ensuring these employees have a clearly defined manager or leader to check in with. This framework can help to provide Gen Z employees with clear expectations, and create space for consistent conversations around alignment, growth, and any challenges that might arise. By providing opportunities like these for mentorship, organizations can nurture Gen Z's professional growth, confidence, and engagement in the workplace.
It's crucial for agency and brand leaders to adapt their strategies to meet the unique needs and expectations of generation Z, given that these individuals are making up an increasing portion of the workforce. By leaning into Gen Z's strengths as digital natives, prioritizing diversity, equity, and inclusion, creating flexible work environments, and providing meaningful mentorship opportunities, organizations can enhance productivity, boost engagement, and improve retention.
As the industry evolves, embracing change and investing in Gen Z's success will be key to navigating future challenges and driving long-term outcomes. Plus, embracing these approaches not only supports Gen Z's professional growth and well-being, but also fosters a vibrant, inclusive, and resilient workplace for all employees.
Meta's new political content policy could create new complexity—and new opportunities—for advertisers.
Earlier this month, Meta announced it will no longer “proactively recommend content about politics” on Instagram and Threads. The company says the change is intended to improve the user experience and give audiences control over how and when they encounter content that they deem “political,” but ambiguity around what exactly “political content” is has left both audiences and advertisers with more questions than answers—particularly with the 2024 US election cycle already underway.
In 2008, back when Facebook was still a relatively new platform and social media still in its infancy, then-presidential candidate Barack Obama recognized its potential as a way to speak directly with voters, engage in grassroots fundraising, and get out the vote.
In the 16 years since, social media has exploded, becoming a virtually ubiquitous part of audiences’ digital lives. Facebook—now a part of Meta alongside platforms including Messenger, Instagram, Threads, WhatsApp, and others—has long since transformed from “innovative startup” to “media giant.” The platforms make up one of the largest walled gardens in the digital advertising ecosystem, drawing a projected $62.7 billion in US ad spend in 2024—accounting for 75.6% of US social ad spend and 20.4% of all US digital ad spend.
Amidst this extraordinary growth, it’s no surprise that political ad spending on social networks has increased rapidly alongside it, having grown by 194% from the 2016 to 2020 election cycle and projected to rise by nearly 350% from 2020 to 2024. But social media’s role in political campaigns extends beyond paid advertising. The platforms allow for public discourse and grassroots mobilization, providing a place for voters to express their opinions and engage in the political process.
Yet social media can also foster polarization, allow hate speech to run rampant, and lead to the rapid spread of misinformation and disinformation. And with tools like generative AI making it all too easy to create and circulate false and misleading content—from robocalls purporting to be President Biden to AI-generated images of Donald Trump being arrested—social media is poised to again be a complex space throughout the 2024 election cycle, with Meta’s recent announcement only further complicating matters.
The degree to which Meta’s policy change will impact both marketing and political discourse on social media is still unclear, particularly given the many unknowns surrounding the announcement. Meta has yet to clarify what qualifies as “political content,” and there has been no mention of any new limits to political advertising on these platforms. What the company does make clear is that users will only see organic political content from accounts they choose to follow, and that if users want political posts recommended to them, they will have more control over how and when they see them.
When it comes to political advertising, Meta’s history is both storied and spotty.
“Historically, Meta entities have been a consistent and successful environment for political campaigns—from fundraising, to storytelling, to get out the vote efforts,” says Jaime Vasil, Group Vice President of Candidates & Causes at Basis Technologies. The 2008 election was, after all, dubbed the Facebook Election by some observers. With many rival social media platforms (including TikTok, LinkedIn, and Pinterest) prohibiting political ads entirely, Meta’s platforms have long been a reliable go-to for political campaigns.
However, the company’s past is also checkered with scandal and fallout: from the Cambridge Analytica data privacy scandal in the 2010s, to Facebook’s role in spreading false narratives leading up to the January 6, 2021 attack on the US Capitol. Meta has also made significant cuts to its teams tasked with online safety—including content moderators—as well as team members with positions related to trust, integrity, and responsibility.
Given this legacy, Meta’s recent announcement could well be a move to get ahead of the potential spread of mis- and disinformation that has already begun to characterize the 2024 election cycle.
That motive also aligns with what they’ve said publicly about wanting “Instagram and Threads to be a great experience for everyone.” Like that text you get from your aunt right before Thanksgiving reminding you to check your politics at the door, Meta likely wants to keep these platforms fun, escapist, and bright—a place where users can get lost in an endless doom-scroll of light and entertaining content.
This change is likely to shape how marketers and advertisers of all kinds (both political and nonpolitical) approach the platform. If Meta's suppositions prove to be correct, a relative lack of political content could make Instagram a more enticing destination for users and more brand safe for advertisers—creating new incentive and opportunity for increased spend on the channel. Yet it also brings new complexity around brands' organic content and creative on Instagram and Threads: When there is so much ambiguity around what exactly constitutes "political content," marketers may find themselves steering clear of anything that could be interpreted as political subject matter, thereby narrowing the focus of their organic marketing efforts—and curbing its potential.
For political marketers, meanwhile, this could have a significant impact on how they approach both their campaigns and messaging on Instagram and Threads—particularly if they were counting on organic social content to drive awareness and action for their campaigns. Meta’s shift could push political advertisers to put a greater emphasis on gaining followers, since only audiences that follow them will see the political messages posted to their accounts. It could also mean that user-generated content will play an even bigger role, as candidates strive to connect with younger and diverse audiences without any help from the algorithm.
One notable absence from Meta’s announcement: any implications for their political advertising policies. Since 2018, advertisers have spent more than $4.2 billion on ads about social issues, elections, and/or politics across the tech company’s several social media platforms, and Meta’s policy of accepting political ads (and the accompanying ad spending) shows no signs of changing.
With this new content policy, the only way for political advertisers to reach new audiences on Instagram will be through paid ads (Threads, meanwhile, remains ad-free…for now…) And though this shift could cause challenges for marketers when it comes to organic content, it could also create new advertising opportunities, such as partnering with influencers to reach the sizable audiences and followings they have already amassed.
“In general, it is getting tougher for political campaigns to reach voters. But I think this move by Meta may actually create an environment that is less cluttered for paid ads, potentially leading to more engagement,” says Vasil. Perhaps in a space where users are less inundated with organic political content, teams’ paid ads will have a more significant impact.
Whether it’s an attempt to make their platforms better for users, to ensure the only way to get a political message across is through paid ads, or something else entirely, Meta’s recent announcement will no doubt impact political advertisers in the 2024 election cycle and for years to come.
Though many questions remain unanswered, political campaigns that rely heavily on social media for both paid and organic content will benefit from reconsidering their approach within Meta’s updated guidelines and shifting their campaign and messaging strategies to meet the demands of this new landscape.
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Interested in taking a deeper dive into the political advertising environment in 2024? In our Ultimate Guide to Political Advertising in 2024, we unpack the latest trends, stats, insights, and strategies for political advertisers to craft winning campaigns in the year ahead.
Audio is everywhere. And digital audio? Some might say it’s having a magic moment. More people than ever are tuning in—74% of US internet users last year, to be precise—and seasoned listeners are upping their time with the channel.
Whether through the true crime podcast they binge on their morning commute, the songs they blast on their smart speakers while cooking dinner, the live sports broadcast they stream on their laptop while knocking out a last-minute work project, or the tunes they jam to during their evening workout, digital audio is pervasive in people’s lives. It’s a channel that both complements traditional radio and extends beyond it, allowing listeners to tune in from virtually anywhere and enabling advertisers to use proven adtech tools to connect with audiences in the moments they’re listening.
Why is digital audio such a powerful medium, and how can advertisers harness that power in their campaigns this year? Today, we’re digging into all this and more as we explore the state of digital audio in 2024. Ready to talk about it, talk about it, talk about it? Let’s dive in.
In an increasingly fragmented (and, thus, complicated) digital media ecosystem, digital audio offers advertisers a unique opportunity to reach audiences in an intimate and targeted manner. By leveraging the power of sound to engage with listeners, advertisers can connect with audiences during the one-fifth of their daily digital media time spent listening to digital audio. Beyond commanding a substantial share of listeners’ time, digital audio’s popularity also spans age, identity, and background. In other words: It’s a great way to connect with a variety of audiences where they’re spending a good amount of time—and often highly-engaged time.
Digital audio’s popularity with listeners makes sense, since it allows them to listen to the content they want, when they want, and where they want. With this wealth of benefits and increased convenience, it’s no shock that listeners are increasingly tuning into digital audio over traditional AM/FM radio. Though, notably, broadcast radio still has a strong foothold with listeners, and can be effective when used alongside digital audio (more on this shortly!).
And just where are people tuning in to digital audio? Though listening can happen on a wide variety of devices—desktops, laptops, mobile phones, smart speakers, tablets, connected cars—74% of US listeners reported that smartphones were their top choice of device when listening to music and/or podcasts. Talk about tak[in’] it on the run!
If digital ad spend had a personal anthem, it would be “Where You Lead”—and it would be sung directly to consumers. Predictably, with people increasingly tapping into digital audio, ad spend has followed in kind. Don’t believe us? Check it out:
Plus, audio listeners are highly engaged with the content they consume and tend to respond well to audio advertisements as a result. Case in point:
All in all? For advertisers who still haven’t found what [they’re] looking for when it comes to their media mix, this might be the year to give digital audio a try.
Amidst the digital audio boom, broadcast radio remains a resilient and effective advertising channel, serving as a trusted companion for a diverse audience. Though it is less portable and offers less listener choice than digital audio, AM/FM radio still commands a sizeable amount of audiences’ time—an hour and twenty minutes per day for US listeners in 2024, to be precise. Its enduring presence, rooted in accessibility and widespread availability, provides advertisers a unique opportunity to connect with a broad demographic.
The great news? It doesn’t need to be an “either/or” situation when it comes to digital audio and broadcast radio: In many cases, they work better together. On the one hand, digital audio allows advertisers to reach specific audiences through targeting capabilities and personalized content delivery. This versatile channel can be effectively used at various touchpoints along the customer journey. In contrast, broadcast radio, with its widespread reach and established listener base, excels in building broad awareness and driving consideration. By strategically combining these channels, advertisers can establish a unified brand presence and engage with audiences at pivotal moments throughout their customer journey. And by leveraging an omnichannel platform that allows advertisers to tap into both digital audio and broadcast inventory through the same interface (alongside other digital channels), advertisers can gain a holistic understanding of their campaign performance, enabling them to optimize their ad spending and maximize impact in the competitive landscape.
In 2024, cookieless advertising is top-of-mind across the industry: Google’s third-party deprecation in their Chrome browser is officially underway and set to be completed by the end of the year, a seemingly-final blow to the identifier that was once ubiquitous in digital advertising. As advertisers grapple with how best to connect with audiences amidst cookie deprecation and widespread signal loss, channels that offer inherent privacy-friendly advertising features come with significant benefits.
Digital audio is one of these channels, as it allows advertisers to target specific audiences with contextual and walled garden opportunities. For example, teams can use contextual targeting in podcast ads to connect with listeners when they’re tuning into relevant content, or leverage dynamic ad insertion (DAI) technology alongside platforms’ second-party data to serve personalized ads to targeted audiences.
In the past, one of digital audio’s downsides for advertisers was that it lacked a clickable element—unless, of course, banner ads were used alongside the audio content in question. In a last-click attribution world (aka a world driven by third-party cookies), audio couldn’t deliver as effectively as other digital channels. However, the impending loss of third-party cookies is poised to redefine the rules of engagement, potentially leveling the playing field for audio advertising by removing that barrier to adoption.
Overall, as signal loss continues to pose challenges to advertising teams, digital audio stands out as a valuable channel, offering advertisers the ability to build genuine connections and capture audience attention effectively.
In many ways, digital audio advertising is what dreams are made of: Time spent with the channel is increasing, more and more people are listening each year, it provides a personal avenue to engage with consumers, and it allows for privacy-friendly and personalized advertisements.
Digital audio is everywhere, and the opportunities to reach consumers in meaningful, personalized ways that drive action are significant. For advertisers looking to connect with consumers when and where they’re spending time with media, including digital audio in your 2024 marketing mix just makes sense.
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Want even more audio insights? In our guide to audio advertising, we dig deeper into this channel’s potential, and provide strategies digital advertisers can use to make the most of the audio opportunity. It’ll have you belting “I’ve got the power” at the top of your lungs.
Over the past several years, digital advertisers have grappled with widespread signal loss due to a variety of factors, including Apple’s App Transparency, new digital advertising regulations, and increased privacy demands from consumers. Now, after numerous delays, third-party cookie deprecation in Google Chrome has officially begun, making the challenge of adapting to signal loss even more urgent.
Though it’s happening in phases—with only 1% of Chrome users having cookies disabled in Q1 2024—the total third-party phaseout slated for later this year will be here before we know it. For B2B companies, who are already navigating the complexities of a rapid shift from traditional to digital advertising channels, this transition poses additional challenges.
To help B2B teams amidst this transition, we turned to Natalie Lowe, Basis Technologies’ VP of Integrated Client Solutions, for her top recommendations on how B2B advertisers can navigate signal loss and continue to connect with the right businesses, on the right channels, with the right message.
Natalie Lowe: For B2B advertisers, it can feel like everything is changing at a whirlwind pace. There’s already been a huge shift from traditional to digital channels over the past several years, and as investment in digital has grown, so too has reliance on third-party cookies and their attribution capabilities. So, within the B2B space, there’s been a lot of uneasiness and unrest as we’ve encountered signal loss and started to approach the cookieless future.
That said, we’re starting to see a shift now, and B2B marketers and brands have begun to reframe and rethink their advertising strategies in the context of this larger signal loss. Teams are realizing that there’s an opportunity to lean more deeply into connections with target audiences, and to focus on quality of leads over quantity of leads (which is, admittedly, a hard shift to make). B2B teams often already have a relatively narrow audience they’re trying to connect with, since B2B software and service offerings are quite specific. Within the context of third-party cookie deprecation in Chrome and the larger signal loss taking place throughout the advertising industry, it’s going to become even more critical to lean into first-party data, ensure that data is collected and organized in a clean way, and then segment that data to create personalized advertising experiences for the most qualified leads.
NL: When it comes to targeting, contextual relevance will be key. Getting ads placed alongside other content that B2B brands know their key audiences are consuming will be crucial for ensuring their message is reaching the right people when they are in the right mindset. Additionally, leveraging first-party data to get customized messages in front of the right audience is going to be critical. Finally, B2B marketers can lean on using others’ first-party data (aka, second-party data)—for instance, by tapping into social media sites or premium publishers that have proprietary targeting capabilities based on user-entered information. In the cookieless future, B2B marketing teams are going to need to strike a balance between using second-party data and building up their own first-party data.
Attribution, on the other hand, is a whole different ballgame. If B2B marketers don’t already have lead generation on their website, now’s the time to set that up so they can collect that info. Beyond that, there’s going to have to be a shift in mindset and an acceptance that attribution isn’t going to be as precise as it once was. Third-party lift analyses can help measure things like brand awareness, and for companies that have loads of data, media-mix modeling can be useful, but B2B brands and marketing teams will need to recognize that attribution is going to look different and adjust KPIs to this new cookieless landscape.
NL: Sure! Let’s take, for example, a SMB (small or midsize business). If they’re starting a campaign focused on awareness, they might decide to tap into LinkedIn to make the most of the growing trend of using social media to capture the attention of audiences in a personalized way. On LinkedIn, they can use the platform’s proprietary data to do job title/description targeting. They can also take advantage of the brand lift studies that LinkedIn offers to measure the impact of their ads.
Or perhaps there’s a software company focusing on collecting first-party data. They could consider a content-based strategy where they publish a whitepaper on a relevant topic, use contextual targeting to market that whitepaper in relevant places, and then require a form-fill to download the content, meaning each person that downloads it is another de-anonymized lead for future marketing efforts.
Navigating signal loss poses challenges for all marketers, and is likely to prove especially tricky for advertisers in the B2B space. However, by homing in on first-party data collection, leveraging cookieless targeting approaches like contextual, and resetting expectations around attribution, B2B companies can find success in the (rapidly approaching) cookieless future.
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Want to learn more about the state of identity in 2024? We surveyed over 200 marketing and advertising professionals to discover how they’re navigating signal loss, third-party cookie deprecation, and the shift towards privacy-first digital advertising. Check out all the latest data and insights in our in-depth report.
For nearly two decades, third-party cookies have helped advertisers understand audiences’ behaviors, create personalized advertising experiences to meet their needs, and measure the impact of their campaigns. But recent years have brought an increased focus on consumer data privacy—spurred by regulations and consumer demands alike—and third-party cookies are on the way out.
As of 2024, Google’s long-awaited (or, more aptly, long-delayed) deprecation of cookies in Chrome is officially underway, with a total phaseout appearing set for later in the year. That cookie deprecation is a key factor in the widespread signal loss that’s now posing a challenge for all advertisers, but especially those in the consumer packaged goods (CPG) industry. CPG marketers are already contending with highly saturated markets, navigating the explosion of private-label goods and adapting to complex consumer sentiments.
To help CPG advertisers navigate signal loss and third-party cookie deprecation, we spoke to Vanessa Allen, Basis Technologies’ VP of Integrated Client Solutions. Read on for her top insights for CPG advertisers to consider as they invest in and implement privacy-friendly advertising solutions.
Vanessa Allen: Even though CPG marketers won’t have third-party cookies to work with, there is still going to be a heavy focus on identifying who their target audience is and determining how they’re going to reach them. First-party data is going to be critical for this, as it allows advertisers to tap into audiences who are already interested in their products. As such, it’s important for CPG advertisers and brands to ensure they’re collecting that data in a privacy-compliant manner and storing it in a way that makes it easy to use.
It's also going to be important for CPG brands and advertisers to really focus in on researching and understanding consumer behaviors. Once they have those insights, they can adapt their campaigns to meet audiences’ distinct needs. That might look like leaning into opportunities with user-generated content on social to connect with younger audiences, or it could involve highlighting product and service offerings focused on convenience, since more and more shoppers (millennials, in particular) say this is a key factor that influences their purchasing decisions.
VA: As mentioned earlier, first-party data will be crucial in a number of different ways. Many CPG brands—and, especially, larger brands—have a ton of this data already and are well-positioned to use it to connect with audiences in personalized ways. They can use this data not only to focus on retaining audiences who they know have bought their products in the past, but also to push out new products to those audiences to drive trial.
Contextual targeting will be another key tool to leverage, especially for more niche CPG brands. For instance, let’s say you’re a brand that offers direct delivery of toilet paper or paper towels, and you do it in a way that minimizes waste. So, you’re cutting down on how much plastic and extra packaging you use, and you’re offering a way for customers to get your products in a convenient way. Since many of your customers might be interested in sustainability or eco-friendly options, you might target display ads to websites that talk about green products and/or being a more environmentally conscientious consumer.
Another option is tapping into retail media networks (RMNs) to take advantage of their proprietary data. But it’s important to take a balanced approach to RMNs, as brands also need to be building up their own data so that they aren’t entirely reliant on these walled gardens. When it comes to leveraging RMNs or using other platforms’ second-party data, it’s important to incorporate them as part of a holistic media mix.
In terms of attribution, traditional CPG brands are already accustomed to using third-party brand lift studies to measure the results of their ads (i.e., household lift, awareness, sales lift), since they can’t measure footfall traffic. As we shift towards a privacy-first approach, these studies are going to continue to play a major role. For direct-to-consumer brands, it’s going to be pretty seamless for them to connect the dots on their website using first-party data they’ve collected.
VA: Absolutely! Let’s imagine you’re working on a campaign for an organic pet food. This product is pretty niche, so it’s going to be critical for you to understand your target audience and home in on where they’re spending time and consuming content. Most likely, your target customers are going to be doing research on the best pet foods, and using contextual targeting to place ads based on relevant keywords is one effective way to reach them. Additionally, you might determine that people who have pets who are sick are more likely to turn to different, specialty pet diets. To connect with those audiences, you might also target pages that discuss specific pet conditions that necessitate a different diet.
As another example, let’s go back to our earlier eco-friendly paper goods brand. In addition to leveraging contextual targeting, advertisers for this brand could use promotions (for instance, free shipping) to incentivize consumers to share their first-party data. Then, they could use that data to follow up with targeted, more personalized ads and recommendations based on this opted-in user data.
Though third-party cookie deprecation will change the game for digital advertisers in many ways, CPG marketers are well-positioned to reach audiences in privacy-friendly ways. By researching their consumers and adapting to meet their needs, leveraging first-party data, and using contextual targeting intentionally, CPG advertisers can connect with audiences at key moments of impact, drive conversions, and bolster brand loyalty.
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Want to learn more about the state of identity in 2024? We surveyed over 200 marketing and advertising professionals to discover how they’re navigating signal loss, third-party cookie deprecation, and the shift towards privacy-first digital advertising. Check out all the latest data and insights in our in-depth report.
From Apple’s App Tracking Transparency to consumer privacy demands and resulting regulatory action, digital advertisers have grappled with widespread signal loss in recent years. But 2024 will bring even more drastic change in this area, as Google finally deprecates third-party cookies in Chrome after numerous delays. For healthcare and pharmaceutical advertisers, this shift adds yet another layer of targeting and measurement complexity to an industry that is already wrought with privacy-related regulations.
For insights and strategies to help health and pharma advertisers navigate third-party cookie deprecation and signal loss, we turned to Katherine Mitton, Director of Integrated Client Solutions at Basis Technologies. Read on for her top recommendations on weathering the identity crisis.
Katherine Mitton: My biggest piece of advice is to set up systems that allow for the collection of as much HIPAA-compliant data as possible. If brands haven’t already invested in advanced customer relationship management (CRM) platforms and capabilities, that should be their top priority. Then, once they have those systems and solutions in place, they can shift their focus to building up their CRM list so that, once third-party cookies are completely gone, they can still understand who they need to target and build lookalike audience segments to extend that targeting.
Beyond that, it’s important for health and pharma marketers to maintain a mixed-funnel approach in their campaigns. When third-party cookies are gone, advertisers won’t be able to track their mid-to-lower funnel actions the same way they can now. Those mid-to-lower funnel tactics will remain an important part of a holistic media mix, but health and pharma brands will need to lean more deeply on historical performance to prove out their impact. We know that they work—we’re just not going to have the attribution for them anymore.
KM: Beyond leveraging their own first-party data and CRM lists, health and pharma advertisers have several other options for privacy-friendly targeting solutions. Luckily, advertisers in the space already have experience navigating a lot of regulation (i.e., maintaining HIPAA and OCR compliance), so there’s a level of comfort with alternative targeting and measurement methods that advertisers in other industries may not have.
One cookieless solution that will be particularly useful in the health and pharma space is healthcare provider (HCP) targeting. Now is a great time for agencies to communicate the benefits HCP targeting offers their clients and to bolster the partnerships that enable it. That might look like working with third-party providers that specialize in healthcare systems and allow targeting based on providers’ specific specialties. Or, it might include leveraging platforms like LinkedIn that allow job title-based targeting, which is another way for health and pharma advertisers to get their message in front of doctors and other healthcare professionals without using third-party cookies.
Contextual targeting is another critical privacy-friendly targeting tool. If advertisers are trying to reach patients via contextual, that might look like placing ads for their products or services alongside relevant health info that prospective patients will likely be engaging with. And if they’re trying to reach HCPs, that strategy might include targeting medical journals, medical resources, and other online medical content that appeals to the HCP audience.
When it comes to attribution, leaning on historical performance will be key for lower-funnel tactics where pixel-based attribution isn’t going to be possible anymore. Agencies will need to educate their clients early and often about the impact of cookie loss on performance measurement and lead the way in resetting expectations. For instance, if one of their client’s paid search ads historically drove a lot of conversions, an agency can encourage their brand partners to continue to invest in those tactics even if they can no longer show the same attribution. Additionally, third-party brand lift studies can be a helpful way to measure success of campaigns without cookies. These studies are privacy-friendly and, when used in conjunction with historical performance, can help agencies and brands evaluate their ad campaigns and make data-driven decisions.
KM: Let’s imagine you’re a pharmaceutical company with a drug that treats a very specific condition. Your target audience is already pretty small, and targeting patients directly is tough due to HIPAA and OCR regulations. Your best options would likely be to do some contextual targeting based on keywords related to the condition your drug treats, and to leverage partnerships that enable the targeting of healthcare providers who treat the condition your drug is tied to.
As another example, let’s say you’re an agency that works with a telemedicine provider. I’d recommend investing in some contextual targeting based on keywords and driving folks who see those ads to a landing page where they can opt in for more information. Once that’s done, you’ll have first-party data you can leverage to target these audiences with customized messages based on the personal information they shared.
With an abundance of industry-specific privacy regulations, healthcare and pharmaceutical marketers are navigating a complex advertising ecosystem even without third-party cookie deprecation. With widespread signal loss and the loss of third-party cookies, these teams must get even more intentional about how they target and measure their ads. By investing in the collection and actioning of first-party data, upping their contextual targeting spend, leaning on historical performance, and leveraging opportunities like HCP targeting, health and pharma advertisers can make the most of their ad spend in a privacy-first world.
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Want to learn more about the state of identity in 2024? We surveyed over 200 marketing and advertising professionals to discover how they’re navigating signal loss, third-party cookie deprecation, and the shift towards privacy-first digital advertising. Check out all the latest data and insights in our in-depth report.