Technology
Services
Resources
Whether it’s making headlines for its commanding role in the political advertising sphere, its record-setting viewership levels, or its popularity among younger generations, it’s no secret that connected TV (CTV) is one of the most talked about—and fastest-growing—advertising channels.
However, rapid channel growth is often accompanied by increased risks, and CTV is no exception. Factors like its fragmented nature and lack of standardization make it vulnerable to fraud, from inflated ad impressions to wasted spending on inactive devices. At the same time, advertisers face the possibility of their ads being placed next to low-quality content or content that conflicts with their brand values, which can erode audience trust. Fortunately, there are solutions to address these risks, which allow teams to harness the full potential of this booming channel in a way that protects against ad fraud and brand safety threats.
The TV landscape has undergone a dramatic transformation in recent years, as connected TV and over-the-top (OTT) have exploded in popularity and traditional linear TV viewership has declined. Over the past five years, time spent with CTV has increased by more than 137%, and time spent with traditional/linear TV has decreased by nearly 17%. Even more, in June 2024, streaming amassed the highest share of TV usage—a whopping 40.3%—surpassing the previous record set by cable in June 2021.
However, the fast-paced influx of CTV ad dollars has attracted attention from fraudsters and other bad actors, making ad fraud a growing threat on the channel. This is of particular concern when it comes to programmatic CTV: In Q3 2023, 15% of programmatic CTV advertising traffic was found to be invalid.
At the same time, more than 80% of CTV ad buyers feel significantly concerned about securing brand suitable ad placements. Because the landscape is so fragmented—with viewers watching across a variety of apps and platforms on their connected devices—it’s more difficult for advertisers to control precisely what content and/or programming their ads run alongside. As a result, teams that overlook a brand safety plan when investing in the channel could very well end up with fraudulent placements and/or ads served next to content that is unsuitable for their brand or client.
Part of the reason ad fraud in the CTV landscape is increasing is because advertisers are spending more programmatic dollars on the channel. While CTV makes up a relatively small fraction of the overall programmatic market, more than 2 in every 5 new programmatic dollars spent are going to the channel. Without proper safeguards, programmatic inventory becomes more vulnerable to fraud, driven by reduced ad verification, increased traffic volume, and a fragmented supply chain.
Bot fraud, which artificially boosts the number of video ad impressions, is one of the most common types of ad fraud in the CTV open marketplace. DoubleVerify and Roku recently identified “CycloneBot,” a highly sophisticated fraud scheme that not only spoofs impressions but also simulates prolonged CTV viewing sessions, making the invalid impressions more difficult to detect. The bot can spoof 1.5 million devices, equating to 250 million invalid ad requests every single day. Fortunately, thanks to Roku’s Advertising Watermark and DoubleVerify’s verification process, the bot was detected. Moving forward, Roku is looking adapt their watermark into an industry standard to better combat such fraud schemes.
Beyond these fraud risks, CTV’s rapid rise in popularity has also led to significant brand safety challenges. Without safeguards in place, advertisers’ CTV ads could end up running alongside low-quality or unsuitable content—or, in more extreme cases, harmful or misleading misinformation or disinformation.
Take, for instance, YouTube’s dominating presence in the connected TV space. In early 2024, Nielsen announced YouTube was the top streaming platform by time spent watching by viewers for an entire year, with viewers across the globe watching more than 1 billion hours of YouTube content on their connected TVs each day. But platforms like YouTube pose a substantial brand safety risk, given that they are filled with user-generated content (UGC). While ads on the channel might run alongside more traditional tv programming that viewers are accessing via streaming on their CTV, they could also very well appear next to UGC that may or may not be a brand suitable environment.
Made-for-advertising (MFA) CTV apps pose an additional brand safety challenge. Much like MFA websites, MFA CTV apps often employ aggressive tactics that create a low-quality experience for viewers. And like ad fraud, this problem is more common in the open marketplace, with an estimated $144 million in programmatic ad spending going to such low-quality CTV apps each year.
Overall, while CTV was once seen as a brand safety haven, its rapid growth and evolution now require advertising teams to carefully consider brand safety when investing in the channel.
Another brand safety concern advertisers must navigate in the CTV space is its meteoric popularity among political advertisers.
Traditional linear TV has long been a go-to for political advertisers, and it’s no surprise that political CTV advertising has exploded as viewers have shifted to streaming. In fact, in 2024, 45% of all digital political ad spending is forecast to go to CTV. For some teams, serving ads alongside political content might be viewed as a boon, as this content often draws a lot of attention. On the other hand, political content and ads can be negative and divisive, making adjacent ad placements unsuitable for some teams. And with the explosion of generative AI, coupled with many tech behemoths making significant cuts to their trust and safety teams, the prevalence of political mis- and disinformation is growing all the more rampant in digital spaces. This adds an additional layer of consideration for advertisers looking to make the most of CTV in 2024.
As advertisers consider their CTV brand safety plans, it’s critical to think through the implications of advertising alongside political content, particularly during high-impact time periods like the weeks leading up to Election Day.
Amidst this complexity, how can advertisers meaningfully prioritize brand safety on connected TV? Though this is still an area that is evolving and developing, there are steps advertisers can take now to maximize the CTV opportunity while protecting against fraud as well as brand safety and suitability concerns.
First, teams can take advantage of high quality, premium inventory offered through programmatic guaranteed and private marketplace deals. “When it comes to these types of deals, the brand safety plan is essentially built into the deal itself,” says Kali Baldino, VP of Media Investment at Basis Technologies. “When you’re working with the provider to build these premium deals, you’re indicating what types of content you want to run on—and what types you want to avoid—from the start.” These options offer a higher level of control and quality assurance compared to open marketplaces, reducing the risk of ad fraud. They also offer enhanced control over where ads are placed, allowing advertisers to ensure their ads are appearing in brand suitable placements.
Additionally, when bidding on the open marketplace, advertisers can use tools like allowlists, blocklists, or CTV-specific contextual targeting segments to focus their ads on desired placements. “We’ve seen a lot of success by focusing on the types of content teams do want their CTV ads to appear alongside and building a brand safety strategy around that,” says Baldino. “However, I’d advise against getting too specific, as that can limit a campaign’s reach.” By using these tools intentionally, teams can achieve a balance between brand safety and campaign reach, maximizing the impact of their campaigns while mitigating potential risks.
In addition, advertisers can ensure fraud prevention, brand safety, and brand suitability on CTV by working with partners to help monitor and validate ad placements to ensure they meet teams’ brand safety standards and reduce the risk of fraud both pre- and post-bid. For instance, partners like Grapeshot and Peer39 can help protect brand safety through contextual targeting solutions that ensure ads are placed in suitable environments; Comscore provides audience measurement and analytics to help verify ads and ensure they are being shown to legitimate viewers on CTV platforms; and DoubleVerify offers solutions to verify ad placements, prevent fraud, and measure viewability, as well as to ensure ads are not placed alongside inappropriate or unsafe content. Just how effective are these types of brand safety and ad fraud verification? One study found that advertisers not using verification experienced an 11.2% fraud rate, compared to a rate of 0.6% for those who did use verification to protect their CTV campaigns.
Finally, when it comes to navigating political content, there are several steps that teams can take to ensure their CTV ads are not running alongside unsuitable political content and/or misinformation or disinformation. First, during times when political content is most prevalent (i.e., the weeks leading up to Election Day or primaries in battleground states), advertisers can up their spend on platforms where political content is not allowed, such as Netflix and Disney+, and may choose to suspend their ad spend on platforms that tend to see more divisive political content, such as X. Additionally, they can use blocklists or allowlists to eliminate placements known to be associated with political content and/or misinformation. Even more, contextual targeting can help teams to place ads only within content categories that are relevant and appropriate, thus minimizing (though, admittedly, not completely eliminating) the chances they appear next to controversial or undesirable political content.
By approaching CTV campaigns intentionally and with a strong brand safety plan in mind, teams can navigate the complexities the channel poses and avoid potential brand safety and fraud risks.
Connected TV advertising offers significant opportunities to advertisers, but it isn’t without its drawbacks. Amidst its soaring popularity in recent years, ad fraud and brand safety concerns have become more pronounced on the channel, making it more critical that advertising teams craft intentional and proactive plans to ensure suitable ad placements that inspire trust and foster connection with target audiences.
By seeking to understand the ad fraud and brand safety challenges in the space, crafting a CTV brand safety plan, and working with partners to avoid fraud and ensure ads meet brand safety standards, advertisers can make the most of the CTV opportunity while protecting themselves from the rising threats of ad fraud and brand safety risks.
__
Want to learn more about connected TV advertising, especially within the context of a more holistic digital video approach? Check out our guide, Video Unleashed: The Ultimate Guide to Digital Video Advertising.
What’s new in the realms of paid search and social media? This month, Lindsay Martin, Group VP of Search Media Investment, and Lauren Brown, Director of Social Media Investment, compiled all the latest news, trends, and resources that advertising pros need to know.
THE NEWS: Despite competition from generative AI platforms like ChatGPT, Perplexity, and Microsoft's Copilot, recent data suggests that Google Search traffic has not only held steady, but grew by 1.4% from May 2023 to May 2024.
THE CONTEXT: While Google is still the dominant force in the search space, it’s battling several threats to that dominance—a significant one being its recent loss of the DOJ’s antitrust suit against it, which found that the company illegally leveraged its power to suppress competitors and hinder innovation in the search space. While Google doesn’t appear to be losing traffic as a result of genAI platforms yet, several experts believe AI is more of a threat (or at least more of an urgent threat) than the antitrust suit loss, with Gartner forecasting a 25% drop in search engine volume in just two years thanks to chatbot-like applications.
EXPERT POV: Google continues to innovate its search experience in an effort to stay relevant in the face of AI—for example, by creating snackable results that engage consumers (and younger consumers at that) on Google itself. I think it’s going to be years before we see a true impact on Google on both the “generative AI taking away a large share” and “effects of a pending lawsuit” fronts. - Lindsay Martin, Group VP of Search Media Investment
THE NEWS: Google’s AI Overviews (formerly Search Generative Experience, or SGE) search results now match its organic top 10 results a whopping 99.5% of the time. An algorithm update appears to be responsible for this change, as Google may now be incorporating more traditional search ranking signals as part of its custom Gemini AI model.
THE CONTEXT: This is a major turnaround from earlier this year, when the answers generated by SGE didn’t match links from the top 10 organic search results a majority of the time, which resulted in less authoritative and trustworthy content.
EXPERT POV: The verdict is still out as to what these AI Overviews mean for clicks and click-through rates. I’m eager to see how Google chooses to monetize these results, knowing that it’s on the roadmap. - Lindsay Martin, Group VP of Search Media Investment
THE NEWS: Google has provided several back-to-school shopping options that include virtual clothing try-on experiences, photo-based product searching options, and high-ranking product results that display the discounts and sale prices shoppers seek.
THE CONTEXT: With the rise of shoppable media—as evident by consumer adoption, the additions of shoppable features on Pinterest and TikTok, and agency pros’ beliefs that shoppable video and AR/VR are “the next frontier”—it’s no surprise that Google wants in the game.
EXPERT POV: Features such as Google Lens and Circle to Search could be seen as “shortcuts” for consumers to identify products of interest. In other words, consumers may buy with fewer clicks. Keep in mind that these experiences are optimized towards mobile; therefore, the mobile purchase experience—including fast load times and mobile-friendly storefronts—is key. Optimized product feeds and high-quality photos and videos are also important. Lastly, take advantage of sale price annotations and local inventory ads to help stand out in highly competitive periods. - Lindsay Martin, Group VP of Search Media Investment
THE NEWS: Meta has now removed detailed targeting exclusions as an option for all new campaigns. Detailed targeting exclusions allowed advertisers to exclude people from their target audience based on demographics, interests, and/or behaviors. The intent for those exclusions was that advertisers would better refine their audiences, but Meta found through its own testing that they limited ad effectiveness rather than improved performance.
THE CONTEXT: Advertisers were made aware of this change months ago… sort of. In May, some Meta advertisers received an alert stating that detailed targeting exclusions would be removed in June. Meta claimed the alert was the result of a bug and that the company had no plans for immediate changes.
EXPERT POV: This shift in targeting abilities may cause some concern, but Meta’s AI system is becoming more advanced by the day. Meta shared that, in its own testing, the median cost per conversion for ad campaigns improved by 22.6% when detailed targeting exclusions were removed. Rest assured, if excluding audiences is of high priority, there are alternative exclusion options that can be set within account-level advertising settings. However, I recommend advertisers hold off on applying any settings to see how their campaigns do. You never know: Performance may come as a pleasant surprise. - Lauren Brown, Director of Social Media Investment
THE NEWS: Meta has unveiled plans to update its approach to ad campaign measurement and attribution. These updates include adding segment-level conversion values within campaigns, a new opt-in attribution setting that optimizes for incremental conversions, and the option to integrate data directly from a CRM to give Meta more insights for targeting. The company says these updates will help connect advertisers’ Meta ads to conversions while also giving Meta more data points to work with for campaign optimization.
THE CONTEXT: These changes appear to put some of Meta’s levers back in the hands of advertisers, which may be a welcome change for advertisers concerned that Advantage+ has taken away too much of their control.
EXPERT POV: With any big change, there is usually a period of adjustment, and that’s likely what’s going to happen here. Advertisers will likely see a dip in performance as Meta’s system ramps up with this update. Don’t panic: The numbers will adjust themselves and hopefully show the improvement Meta intends. - Lauren Brown, Director of Social Media Investment
THE NEWS: Google announced new insights for AI-powered campaigns, including Performance Max, taking the stance that creative is likely the largest opportunity to maximize the success of this campaign type. Insights include conversion data at the asset level, which can inform future creative development; improved image-editing capabilities using AI; and new creative partnerships with brands like Canva and Typeface to help with creative development at scale.
THE CONTEXT: Google isn’t the only platform encouraging advertisers to use its genAI tools for content creation—many others, including Meta, LinkedIn, and TikTok, have rolled out AI-powered ad creative tools for image and text generation in the past year. Of course, as these tools and technologies are still relatively new and come with distinct risks, advertisers should set up quality control systems for any AI-driven content creation.
EXPERT POV: We know that Performance Max has left brands and marketers with very little control over campaign optimizations or how and where their ads serve. Creative reporting within PMax is also still a challenge regardless of this update, and we’re still waiting for Google to consider adding features that help advertisers match their brands’ creative styles and guidelines. At the same time, Google has made fantastic strides in PMax campaigns in terms of performance, and I would recommend this ad format for any CPA- or ROAS-based advertiser. - Lindsay Martin, Group VP of Search Media Investment
THE NEWS: Reddit has introduced its own Lead Gen Ads option, allowing marketers to collect prospective customer information directly through their in-app promotions. Reddit also revealed a new integration with Zapier, which will simplify the process of transferring lead information from Reddit directly into your preferred CRM.
THE CONTEXT: With a growing monthly average user base of incredibly engaged and passionate Redditors, the platform’s leaders have stated aspirations to lead in various advertising types and targeting techniques, including efforts in performance and measurement beyond branding and community growth.
EXPERT POV: While lead gen ads are not a new product in the social world, this is a big leap forward for Reddit as it continues to grow its product offerings and become more competitive against other social platforms. While Redditors are extremely loyal to Reddit, that doesn’t mean advertisers should dive right in without a strategy. The last thing you want is a flock of Redditors giving you a thumbs down on your ad. - Lauren Brown, Director of Social Media Investment
THE NEWS: After years of shifting promises and timelines, Google won't deprecate third-party cookies in Chrome after all. Instead, the tech giant is working on a “new experience” that will let users make informed decisions about cookie use and privacy across their web browsing, with settings they can adjust any time.
THE CONTEXT: Despite this change in Google’s cookie plans, consumers, regulators, and tech platforms alike are still pushing our industry towards a privacy-first paradigm. Bonus: Check out this video for even more context around Google’s announcement and what it means for advertisers.
EXPERT POV: This is undoubtedly a huge pivot for Google, but it doesn’t change the fact that advertisers still need to embrace cookieless solutions and privacy-first advertising. Google’s enhanced conversion tracking, which uses hashed first-party data to help supplement cookie-based conversion tracking, is one option that I’d recommend advertisers test and learn on. – Jesse Foley | VP, Search Media Investment
THE NEWS: Italy’s competition and consumer watchdog group is investigating Google, saying the company uses misleading practices to collect user data and link it to other data across its platforms including Google Search, YouTube, Chrome, and Maps.
THE CONTEXT: In early March, Google became subject to the EU’s Digital Markets Act, which sets guidelines for how internet platforms like Google, Meta, and others are allowed to collect and use consumer data. Shortly after the Digital Markets Act took effect, the EU began an investigation into Google’s parent company, Alphabet, for what they characterize as anti-competitive business practices. This is all part of a larger trend of regulators cracking down on Big Tech.
EXPERT POV: This is the fourth time Google has been charged with antitrust law violations and, unless they change their practices, the investigations are likely to continue. It’s a high-stakes issue for Google, as 77.8% of its income is from advertising. It’s important to stay up-to-date on these types of regulatory developments, as the results of these investigations could have significant impacts for advertisers. – Jesse Foley | VP, Search Media Investment
THE NEWS: Meta has launched Llama 3.1, the largest open-source AI model, claiming it outperforms GPT-4o and Claude 3.5 Sonnet. With 405 billion parameters, it was created using over 16,000 Nvidia GPUs and will be integrated into WhatsApp, Instagram, Facebook, and Quest headsets. Meta CEO Mark Zuckerberg expects it to surpass ChatGPT in popularity by year-end.
THE CONTEXT: Meta has been in rapid AI development mode this year, rolling out several new generative AI features for advertisers in addition to Llama 3.1. Marketers will, of course, still want to apply human intervention to confirm the accuracy of these features’ output.
EXPERT POV: I expect the biggest players in tech and data to release shiny new variations of their generative AI tools while the AI market grows. That said, brands and advertisers should closely monitor the integration of these tools, especially as Meta continues to develop and promote generative AI tools that dramatically impact ad creation and delivery at the auction (Advantage+ comes to mind). As Meta enhances both user- and advertiser-focused AI tools, both audiences must approach these new capabilities with cautious optimism, leaning into proven strengths and avoiding the pitfalls that often riddle early versions of these tools. – Bryan O’Loughlin | VP, Social Media Investment
THE NEWS: On July 1, Apple extended its 30% fee on Facebook and Instagram ad purchases through iOS devices to advertisers globally, a measure that could impact digital advertising costs and strategies in significant ways. Advertisers can avoid the fee by using desktop web browsers, with Meta updating its web platforms to match mobile app functionality.
THE CONTEXT: Critics label the fee as anti-competitive, while Apple defends its right to charge for access to its platform's audience. One of the fee’s critics is Meta’s Director of Privacy & Fairness Policy, Pedro Pavón. He notes that European Union investigators have determined Apple’s fee is in breach of the EU’s Digital Markets Act and that a US federal judge has criticized Apple for not complying with a court order related to its fee structure.
EXPERT POV: Marketers who use an iPhone or iPad to boost an organic post will face the 30% fee, which I anticipate will primarily impact small advertisers and business owners who rely on mobile for convenience and ease of use. Given that this upcharge on ads and boosted posts is avoidable—which may not be obvious to a busy small business owner without context or background for how these platforms work—it's more important than ever that brands work with trusted partners to ensure they can stretch their dollar as far as possible. – Bryan O’Loughlin | VP, Social Media Investment
THE NEWS: Younger generations are increasingly moving to visually engaging content on social media platforms like TikTok to find what they're looking for, rather than traditional search engines. And it’s not just younger generations: Nearly a quarter of Americans primarily use social media for searches.
THE CONTEXT: This trend echoes another recent report that shows brand discovery on social media outpacing both search and word of mouth, and yet another specifying that Gen Z prefers product discovery through video content (more easily viewed on social) over search. It’s important for advertisers to keep track of significant shifts like these in younger generations’ digital habits in order to reach them effectively.
EXPERT POV: This change is a long time coming and has significant implications for planning and buying, as it blurs the lines between search and social. From a practical perspective, I recommend that marketers focus on video content, especially short form, including vertical video for both TikTok and YouTube Shorts. Advertisers shouldn't skimp on creative or media planning efforts on these platforms, especially as it relates to vertical video and/or keyword planning. With this trend, integrating a marketing approach across search and social is now more important than ever. – Bryan O’Loughlin | VP, Social Media Investment
THE NEWS: Deloitte’s new report details the impact of the creator economy from the perspectives of creators and influencers, brands, and consumers. One takeaway of note for advertisers: The report found that bonds between consumers and their favorite creators can lead to increased trust between consumers and the brands those creators partner with.
THE CONTEXT: Brands are upping their investment in the creator economy, with 92% planning to increase their spend on creator marketing this year, and 36% planning to spend at least half their entire digital marketing budget in the space.
EXPERT POV: Marketers can no longer afford to sit out on creator marketing. Creator content, whether owned, organic, or sponsored, is here to stay and is fast becoming the key to winning new customers. As we look at investment across social channels, advertisers may need to be wary of platform-managed creator marketplaces, where exclusive contracts can limit brand usage rights across the open internet. – Jess Kaswiner | Director, Social Media Investment
THE NEWS: Global ad spend across social media platforms is up by a whopping 14.3% year-over-year, making it the leading media channel in the digital ecosystem. This surge is fueled mostly by advertising spend on Meta platforms, which is set to surpass linear TV for the first time in history. The report attributes some incremental increase in social spend to artificial intelligence, suggesting that new tools that automate creative development and media planning, such as Meta Advantage+, are growing in popularity.
THE CONTEXT: The surge in social media ad spend comes on the heels of a rough couple of years for many of the biggest players in the social space, which were marked by plummeting stocks and missed revenue expectations. However, things haven’t turned around for all the major players: While Meta, Pinterest, TikTok, and Snapchat are forecast to enjoy double-digit growth this year, the report notes that X’s revenue woes will continue.
EXPERT POV: Brands show no signs of slowing down their social ad investments. To ensure the social presence of a business acts as a buttress rather than a mere prop, advertisers must understand what that businesses’ audience wants to hear/read/see, while simultaneously differentiating from competitor content. – Jess Kaswiner | Director, Social Media Investment
THE NEWS: After screenshots surfaced on social media, Meta confirmed that it’s testing a non-skippable ad unit on Instagram. These new ad breaks will display a countdown timer that stops users from being able to browse through more content on the app until they view the ad. The functionality is similar to YouTube, which requires users to view some ads in full before and in the middle of watching videos. Information about the test is limited, such as where the test is running from a geographic standpoint, or how long the test will run.
THE CONTEXT: With 44% of consumers preferring to learn about products and services through short-form video (where Instagram excels), and 87% of marketers reporting that video has directly increased sales, an unskippable ad unit would likely strengthen the impact of Instagram’s video ad offerings for advertisers.
EXPERT POV: Should this “forced view” ad unit on Instagram become available more broadly, advertisers will have the opportunity to fully capture a user’s attention with guaranteed visibility, which will help to drive awareness and engagement. Brands will want to ensure the content of the unskippable ad is engaging, with clear messaging and CTAs. – Laura Kubiesa | VP, Social Media Investment
THE NEWS: Young people are increasingly using social apps—TikTok and Instagram in particular—to find products. Gen Z users search social apps primarily for fashion, beauty, food, and craft-related trends, but turn to Google for bigger purchases, places to go, and professional services.
THE CONTEXT: Whether looking to drive sales from younger or older consumers, there’s gold in those social media hills: Both product discovery and purchase happen on social media at rates higher than on messaging apps, video, or through influencers. This trend goes hand in hand with the rise of social search, with over 25% of 18 to 54-year-olds preferring to perform their online searches via social media.
EXPERT POV: The integration of generative AI into search and social platforms is likely to further blur the lines between different types of product discovery channels. By staying informed about these consumer trends, marketers can better navigate the shifting landscape of product/brand discovery and optimize their strategies for maximum impact. – Erik Chellberg | VP, Social Media Investment
THE NEWS: Google announced the launch of the Google TV Network, a network aimed at leveraging Google's vast audience to distribute and monetize TV content. This network is available within the Google Ads platform through YouTube and display campaigns and currently focuses on the six-second bumper ad format, with more formats coming. The platform offers a range of content, including sports, news, and entertainment, and focuses on personalized recommendations and targeted advertising.
THE CONTEXT: This move from Google empowers advertisers to make the most of the rapid growth of free ad-supported television (FAST) channels like Amazon’s Freevee, Pluto, Tubi, and Roku, in light of rising subscription costs for other streaming services.
EXPERT POV: For now, my team is opting in to the Google TV Network within non-skippable and bumper YouTube campaigns. As we see more data coming from this network, we will evaluate whether performance is of high enough quality to continue opting in—I recommend other advertisers do the same. – Heather Crider, VP of Search Media Solutions
THE NEWS: On August 30th, Google Ads will complete the rollout of its new design to all markets. New features include a left-side menu that organizes pages into several high-level categories, a more comprehensive search function, and an overall cleaner and more modern-looking UI.
THE CONTEXT: Google trialed two different looks in 2023 before landing on this UI, based on user feedback, for the full rollout.
EXPERT POV: You can expect all the same functionality in the new Google Ads design, but the tools and menus have moved around a bit. Users should adopt the new Google Ads UI early and get as familiar as possible with the various changes, as there will be no way to opt out after August 30th. Certain things have shifted, from tools and menus to more efficient campaign segmentation for Performance Max, and it will take some time for the new navigation to become second nature. – Sofia Petrovsky, Director of Search Media Investment
THE NEWS: Content at Google Marketing Live 2024 focused on AI-driven updates, including those that enhance creative production and consumer engagement. Key highlights include:
THE CONTEXT: Google has been on an AI tear as of late, adding AI-powered tools meant to help marketers with creative development, campaign management, and seemingly everything in between. Their stated purpose? To respond to an “evolution of [consumer] attention.”
EXPERT POV: This year’s GML was a continued push into AI, adding incremental features to a lot of what was released during GML 2023. Agencies and brand marketing executives should swiftly educate and integrate Google's AI-driven tools to streamline creative production, enhance consumer engagement, and optimize campaign management. By leveraging these advancements, they can achieve deeper customer connections and more efficient marketing outcomes in an increasingly AI-centric landscape. – Robert Kurtz | Group VP, Search Media Solutions
THE NEWS: After years of Washington lawmakers scrutinizing the platform, President Joe Biden signed into law a bill that will ban TikTok in the US if its China-based parent company, ByteDance, does not sell the app within a year. Lawmakers say their main concerns are around data privacy and the perceived possibility of “espionage, surveillance, [and] maligned operations”. ByteDance has called this ruling “unconstitutional” and has promised to sue.
THE CONTEXT: If they aren’t successful in court, ByteDance says that they’d rather shut down TikTok in the US than sell the app and its algorithms to an American buyer. A shutdown would be a big deal for advertisers, particularly those working for small- to medium-sized businesses: TikTok recently released a report that claims SMBs using the platform’s free services and paid advertising contributed a total of $24.2 billion to the US GDP last year.
EXPERT POV: Advertising on Tiktok will continue to operate as usual for now. However, with TikTok having risen to the top of the list of social platforms that provide value for SMBs, its political limbo status should cause advertisers to monitor and evaluate existing similar features across other social channels, like YouTube Shorts and Meta's Reels, while also keeping an eye out for any new copycat features or channels that come down the line. – Jenny Lewis | Director, Social Media Investment
THE NEWS: Since the launch of TikTok Shop in September 2023, reports have suggested that the increase in TikTok Shop content was causing a decline in overall usage of the app. However, many users say they have increased their TikTok usage since TikTok Shop rolled out. Time spent on TikTok is plateauing and new user growth is slowing, but given that the app already has 107.8 million monthly US consumers who spend immense amounts of time on the app, this simply indicates a more mature growth phase.
THE CONTEXT: While time spent on the app and user growth may be slowing, forecasts still show that US adults will spend 58.4 minutes per day on TikTok in 2024, up from 2023 numbers and ahead of every other social media platform for most US social users.
EXPERT POV: While some headlines may infer growth on TikTok is declining, users are still spending a lot of time on the app, which presents a great opportunity for advertisers. Regardless of a brand’s location in the funnel, there’s something for everyone when it comes to advertising on the platform: TopView can be leveraged for boosting reach and awareness, while Video Shopping Ads maximize sales with tailored ads. TikTok is investing in rolling out new paid opportunities and features weekly, and there’s no time like the present for advertisers to ensure they’re capitalizing on the highly active user base and ensuring their paid social strategy encompasses TikTok. – Laura Kubiesa | VP, Social Media Investment
THE NEWS: In honor of International Fact-Checking Day, Google highlighted its fact-checking tools and shared expanded features within those tools. “About this image”, for one, appears to be very similar to Reverse Image Search, with additional features that provide information about the image’s history as well as what reputable sites are saying about it. There’s also a new version of “Fact Check Explorer” that allows users to explore images as well as topics and people.
THE CONTEXT: Several of these tools and features were introduced in October 2023; since then, an academic study has questioned the sufficiency of Google’s fact-checking information for most false claims, even as the search engine’s results themselves were deemed “relatively reliable”. Fact-checking is particularly critical today for both advertisers and consumers due to the rise in AI-generated disinformation.
EXPERT POV: For better or worse, AI is becoming a bigger part of the online world, making it much easier for bad actors to create mis- and disinformation, which can quickly erode consumer trust. Tools like this can help by providing users with options to weed out that noise. However, they don't have complete coverage and the results can be unreliable. This puts the onus on advertisers to be as transparent in their messaging as possible to foster trust and prevent misinformation from spreading. – Jesse Foley | VP, Search Media Investment
THE NEWS: Google’s 2023 Ads Safety Report highlights their efforts to maintain a secure online environment. The search engine suspended or removed 12.7 million advertiser accounts last year—nearly two times the amount from the previous year—and blocked 5.5 billion ads for violating the company’s policies. Key violations included misrepresentation, financial services violations, and malware promotion. Google took several actions in response to these threats, including launching its Ads Transparency Center and updating its suitability controls.
THE CONTEXT: Duncan Lennox, Google VP & GM of Ads Privacy and Safety, cites generative AI as both an opportunity to improve policy enforcement and a challenge—with “bad actors operating with more sophistication, at a greater scale.” Deepfake artificial intelligence has made it cheaper and easier to launch campaigns featuring, for example, fake celebrity endorsements for products and services, which fraudsters have used to scam people out of money and personally identifiable information.
EXPERT POV: While this added safety and security good in general, we at Basis Technologies are seeing more questionable violations that require us to push for re-review. For clients in sensitive verticals like politics, health, and finance, it can make running ads more difficult and time-consuming. Be prepared to file certifications proving your identity and bona fides before your ads go live (or shortly after launch). – Jesse Foley | VP, Search Media Investment
THE NEWS: LinkedIn has confirmed that Pages Messaging is being rolled out to all businesses after initially launching the functionality with some company pages in June 2023. In addition to its direct in-app messaging expansion, LinkedIn is also partnering with various third-party platforms to facilitate company messaging via social management tools (e.g. Hootsuite).
THE CONTEXT: Adding Pages Messaging was a logical step for LinkedIn, as social media activity continues to move to private messaging, 78% of consumers surveyed say they have used a direct messaging tool to interact with a brand, and 86% of those consumers said those direct interactions positively impacted their perception of the company.
EXPERT POV: Company leaders and advertisers alike have long been anticipating this feature’s rollout on LinkedIn. The imperative now is to be ready to react, which means devoting resources to monitoring, responding, and possibly escalating customer concerns. While social media—and, increasingly, DMs on social—are a means of customer service, they can also serve as “free” listening tools to help guide other marketing and advertising efforts, like campaign themes and timely creative swap-outs. – Erik Chellberg | VP, Social Media Investment
THE NEWS: Instagram is testing out a new way to comment on specific images within a carousel post, with some users able to link their reply to a photo or video based on its assigned number in the display. This update is aimed at driving more focused engagement and encouraging more interaction around each content element, while also clearing up confusion around carousel post comments. Instagram is testing the new carousel tagging option with a limited number of users at this stage.
THE CONTEXT: Instagram carousels already have the highest engagement rate of all post formats. This new feature allows for even more engagement and could lead to strategic engagement opportunities and more learnings for creators, influencers, and brands.
EXPERT POV: Engagement rate rules supreme for Meta—the more a user engages with a brand, the more Meta “rewards” the brand for fostering that in-platform engagement. And with this content-specific engagement, advertisers are afforded more insight into what resonates most with their audience. They can use that information to inform other marketing and advertising collateral, from products to feature in display or shopping ads to tiles that could transfer from high-performing organic content over to high-performing advertising content. – Erik Chellberg | VP, Social Media Investment
THE NEWS: Google’s text ads appear to be showing up at different positions relative to organic results on a search engine results page. While “top ads” have generally appeared above the top organic results, this “definitional change” means top ads may also show below the top organic search results on certain queries. The placement of top ads is dynamic and may change based on the user’s search. Importantly, this will not affect how performance metrics are calculated.
THE CONTEXT: This change seems to be a by-product of Google’s search engine results page continuous scroll functionality, which allows ads to appear in more positions among organic results than just the top, and which has prompted Google to experiment with those positions. To that point, Google has provided tips for advertisers to help improve their ad positions.
EXPERT POV: If ads appear below the top organic results more frequently following this definitional change, we’ll be monitoring for downstream effects on click-through rate and other key metrics. In the meantime, maintaining a focus on ad rank factors such as relevancy remains key to securing top placements. – Alexa Dillon | VP, Search Media Investment
THE NEWS: Google recently launched Solutions, a free tool within Google Ads that automates and simplifies campaign management in an accessible and user-friendly way. It comes with several pre-built automation templates for the campaign management process, including Performance Reporting, Anomaly Detection, URL Validation, Budget Optimization, and Negative Keyword Management—all of which can be customized to meet different advertising needs.
THE CONTEXT: As part of this launch, Google announced it will sunset its manual solutions library. This focus on automation comes on the heels of Google’s new AI-powered approach to displaying responsive search ads and its application of Gemini for text and image generation within Performance Max (which has not been hiccup-free). Overall, the company continues to push advertisers towards automated processes across the campaign life cycle, from creative development, to ad placement, to campaign management.
EXPERT POV: Google continues to create new tools to help free up time for paid search managers to analyze data and make strategic decisions. By starting to use the Solutions tools now, search managers can get ahead on campaign management simplification, allowing them to spend more time on optimizations and recommendations that grow paid search accounts and drive business goals. – Nick Tuttle | Director, Search Media Investment
THE NEWS: Performance Max (PMax) campaigns are now available globally through Microsoft Advertising. PMax is an automated campaign type that uses artificial intelligence to create ad assets and automate ad optimization across different Microsoft Advertising formats and channels. The company will soon add more automated features, including brand exclusions (for less inflated performance metrics), search insights reports (for greater visibility into user queries), and video assets (for broader creative distribution) to its PMax campaigns.
THE CONTEXT: This global release follows a closed beta launch in May 2023 that Microsoft deemed successful. Time- and resource-strapped marketers who rely on manual efforts may appreciate PMax campaigns’ automated optimizations, even as some position the campaign type, similarly available through Google, as relinquishing control and decision-making power to artificial intelligence.
EXPERT POV: Rolling out PMax campaigns globally is another instance of Microsoft competing with Google, particularly by relying on AI and algorithms that identify when and where someone is most likely to convert. When it comes to the landscape of search advertising, Google is still far and away the most dominant search engine, but Microsoft integrating ChatGPT into Bing helped increase its market share from 6.35% to 8.07% over the past year. When determining whether PMax may be a valuable, additional layer in your search investment, consider your ideal demographic (as older generations are more likely to use Bing) and your vertical (as certain industries, like healthcare and financial services, attract larger shares of older users). – Nick Tuttle | Director, Search Media Investment
THE NEWS: Reddit is launching a suite of tools, called Reddit Pro, for businesses looking to grow their organic presence on the community-driven platform. Currently in its beta testing phase, Reddit Pro uses AI to help brands identify trending topics and conversations, even allowing them to see when their brand has been mentioned in a subreddit. The suite of features also includes content drafting, scheduling, and reporting tools, as well as the ability to easily turn organic posts into paid advertisements. This is Reddit’s first set of free tools meant to inform businesses’ social media strategies, and the company plans to launch additional features within it later this year.
THE CONTEXT: The Reddit Pro launch came as the company prepared its initial public offering (IPO) at a stock price that valued the company at nearly $6.5 billion. Reddit is likely leveraging this new suite of free tools to entice brands to the platform and turn them into paying advertisers.
EXPERT POV: All eyes are on Reddit as the platform continues to make headlines with news of its successful IPO. Brands looking to connect with a wider audience may want to explore adding this channel to their organic and paid social portfolio. These new Reddit Pro tools—only available to brands that are active on Reddit—grant deeper insight into what Redditors are saying about brands, what aspects of products or businesses are resonating with customers, and which industry topics are trending. For brands not yet using the platform with a u/ (Reddit-speak for “username”) of their own, these new tools may incentivize them to create Reddit profiles and start an “OP” (“original post”) of their own. Pro Tip: Get to know the Reddit lingo! LSHMSFOAIDMT – Jess Kaswiner | Director, Social Media Investment
THE NEWS: TikTok has been under the US political microscope for some time, but now it’s ramping up its own political activity: TikTok users were shown a pop-up message earlier this month, urging them to call members of Congress to voice their opposition to a bill that aims to ban the app in the United States if its parent company, the China-based ByteDance, doesn’t sell it. Congress was quickly flooded with phone calls from TikTok users of all ages; the majority of calls, however, were from children. Since then, anonymous sources say some of the calls have turned threatening and concerning.
THE CONTEXT: Less than a week later, the US House of Representatives passed the bill, 352 to 65 in favor of a nationwide TikTok ban if the app isn’t sold, driven by concerns over the data security of US TikTok users. The bill’s future in the Senate is unclear, but President Biden has said he would sign the bill if Congress passes it.
EXPERT POV: While a ban on TikTok in US markets could have significant implications for brands already active on the platform—especially those leveraging it for influencer marketing and e-commerce sales—daily active usage is not showing any signs of slowing. The recent developments around TikTok highlight a continuing concern with and focus on data privacy in the digital advertising space. Taking a step back from TikTok specifically, this situation underscores the importance of diversification in media planning. In the short term, however, Committee and House votes are the beginning, not the end, of a long process. – Jess Kaswiner | Director, Social Media Investment
THE NEWS: Pinterest’s recent campaign, “The P is for Performance,” touts the platform’s full-funnel approach to advertising, including lower-funnel case studies that show as much as a 28% increase in conversions and up to a 96% increase in traffic for its advertisers. Pinterest’s performance products include mobile deep links and direct links, making it easier for users to convert, plus shopping ads for greater inspiration and Pinterest API for Conversions for higher reporting visibility.
THE CONTEXT: In years past, Pinterest’s ethos of being a place for discovery has appealed to advertisers seeking upper-funnel awareness for their brands. With this campaign, Pinterest seeks to broaden its draw for advertisers who may only think of it as an upper-funnel platform. The campaign launched shortly after Pinterest released its Q4 2023 earnings, highlighting 12% revenue growth compared to the same period in 2022 and its 11% increase in global monthly active users.
EXPERT POV: Pinterest has thrived as one of the first social platforms to sit in a space that blends paid search and social channels. It’s no surprise that as a historically well-established traffic driver, Pinterest has now set its sights on also fiercely competing in lower-funnel effectiveness. Recent product releases have proven to be fairly low-lift activations for advertisers, particularly in the retail, e-commerce, travel, and professional services industries. Brands can significantly cut down the path to conversion by leveraging Pinterest to display product information, prices, and descriptions directly to their audiences’ feeds via shopping ads and simplify the consumer journey by tapping into direct links. – Jenny Lewis | Director, Social Media Investment
THE NEWS: Online sales for Cyber Week 2023 were up 7.8% year-over-year, with e-commerce sales totaling $12.4 billion on Cyber Monday. Paid digital marketing was a big driver of that growth, and advertisers are relying more on automated platforms to enhance efficiencies and expedite the scaling of campaigns. On the other hand, with advancements in automation and AI, invalid traffic has become more and more sophisticated over the past three years. One advertiser explained that tackling invalid traffic led to “more stable and predictable growth across our most important paid media channels.”
THE CONTEXT: 22% of ad spend in 2023 (or $84 billion out of a total $382 billion) was lost due to ad fraud. However, $23 billion of that amount would be recoverable with fraud mitigation platforms in place. Given that political advertising for the US presidential election will drive up ad costs at the start of the holiday season, driving efficiencies by leveraging the right technologies will be especially key for advertisers this year.
EXPERT POV: Ad networks aren’t incentivized to crack down on the increased bot traffic we’re seeing due to AI advances and the corresponding ease with which bad actors can create bots. So, the onus is on the marketer to stay alert for signs of high levels of bot traffic. These include high bounce rates and traffic spikes without corresponding conversion increases. Consider ways to block or limit these, like captchas, using conversion-based goals with machine learning bidding, and optimizing landing page content to be very specific to the intended conversion. — Jesse Foley | VP, Search Media Investment
THE NEWS: The IAB’s new comprehensive consumer privacy study found that nearly 80% of consumers would prefer to get more ads in exchange for not having to pay for websites and apps, and that 90% prefer personalized ads, but that nearly half feel websites and apps aren’t clear enough about how their data is used.
THE CONTEXT: With Google planning to fully deprecate third-party cookies in its Chrome browser by the end of this year, and signal loss across the industry as a result of data privacy concerns, figuring out how to use consumer data in ethical, transparent ways to serve personalized ads to consumers is a must for digital advertisers.
EXPERT POV: The fact that most consumers would rather receive more ads to retain their free access to websites and apps means that advertisers’ digital media investments are well-positioned to reach consumers who find them valuable. Advertisers should take a “test and learn” approach to understand which channels work best given their KPIs and to remain flexible and fluid with budget allocations based on results. —Laura Kubiesa | VP, Social Media Investment
THE NEWS: Google’s responsive search ads rely on artificial intelligence to combine headlines and descriptions based on consumer behavior and predicted outcomes. New AI-powered features allow Google to decide when an ad should display only one headline versus two, with the second headline appearing at the beginning of the ad’s description section. Google can now also supplement or override an advertiser’s manual assets—like images, sitelinks, callouts, and structured snippets—with its own AI-generated assets if it feels doing so will help an ad’s performance.
THE CONTEXT: AI’s influence on ad placement and creative continues to grow. Search Engine Land weighed the pros and cons of Google’s update, noting that while it may serve to drive engagement and performance, it also means that advertisers are surrendering more control to Google. At the same time, artificial intelligence tools often don’t perform with 100% accuracy—and as this is a newer feature, advertisers have no benchmark for how much accuracy these specific features can provide.
EXPERT POV: With the increased focus and adoption of AI capabilities in digital media, it’s no surprise Google continues to roll out these features within their campaign types and ad formats. As the industry continues to trend in this direction, getting left behind means being unable to capitalize on the reported improved performance of these AI-powered features. However, many advertisers need to maintain control over the images and copy that run within their ads, so turning off the auto-assets feature within Google Ads may be the better option. Advertisers who aren’t comfortable giving up control can still take advantage of some of the latest updates by testing the new campaign-level headlines and descriptions and scheduling them to run during certain time frames, which can help manage time-sensitive promotional copy. — Alyssa Theo | VP, Search Media Solutions
THE NEWS: AI and automation within Meta's ad products, such as its Advantage suite, helped fuel 24% year-over-year growth for Meta's ad business in Q4 2023. The social giant also shared advertiser success stories that included increased revenue and improved performance metrics for brands’ campaigns when they employed Meta’s AI ad tools. Meta plans to expand its generative AI features, including text and image variations, to further enhance advertising capabilities.
THE CONTEXT: Meta, along with every other social platform, is placing a high level of priority on building out further automation and AI solutions that work in tandem with their advertising algorithms to drive strong results for customers while making the lives of marketers easier.
EXPERT POV: In the face of ongoing question marks with Meta’s advertising platform (e.g. third-party cookie deprecation, ATT impacts, and data privacy regulations), capitalizing on AI and automation solutions integrated into the platform is an effective way to manage media campaigns efficiently, expand existing audience targeting to reach engaged new users, and create a high volume of ad iterations for easier creative testing. — Erik Chellberg | VP, Social Media Investment
THE NEWS: Pinterest has begun rolling out an integration that allows ads to show on Pinterest via Google’s Ad Manager. The integration will make it so that when Pinterest users come across a Google ad, they’ll be sent to the advertiser’s website to finalize their transaction. This partnership will not only broaden the reach of advertisers using Google Ads but will allow them to engage an active, high-value consumer base.
THE CONTEXT: Pinterest’s stock dipped almost 28% in early February, but bounced back after this Google deal was announced.
EXPERT POV: For those advertisers looking to generate discovery, this new inventory source could be very beneficial. Google is rolling out this new option over the next several quarters, and it will be available within Google’s Ad Manager. As of now, Basis Technologies is waiting to see how this inventory performs to inform future recommendations. — Robert Kurtz | Group VP, Search Media Solutions
THE NEWS: TikTok's Marketing Science team partnered with IPG's MAGNA Media Trials to conduct a study of digital video through the lens of TikTok’s impact on its advertisers. Contents of the report include TikTok’s positive effect on brand sentiment and consumer experience, higher engagement with skippable vs. non-skippable video ads, how contextual content adjacency increases ad view time, and the details of TikTok Pulse, a feature that guarantees ad placement next to top-performing organic content.
THE CONTEXT: TikTok has faced several hurdles in the past few years, not the least of which being several countries and US states implementing full or partial bans of the platform. And although TikTok’s growth is slowing, it still led 2023’s list of app downloads and consumer spending.
EXPERT POV: Advertisers are right to prioritize TikTok, given the time users spend on the app per day, averaging 53.8 minutes, and the platform’s abundance of out-of-the-box and accessible ad products, betas, incentives, and platform support. — Alana Putterman, Group VP, Social Media Investment
—
Want all the best digital marketing articles, POVs, and reports delivered straight to your inbox every month? Sign up for the Basis Scout newsletter.
Largely speaking, TV was simpler in the days of yore. Sure, there was the stress associated with missing the start of your favorite sitcom (in the days before DVRs or streaming), or the conflict that arose when two of your go-to shows aired opposite one another. But just a decade ago, watching TV was relatively straightforward.
Fast forward to today, and watching your favorite TV content has become an increasingly complex and decision-riddled endeavor.
First, there’s the question of what device to watch on: Your phone? Tablet? Smart TV? Laptop? All of the above (and, perhaps, all at the same time)? Then, there’s the consideration of where to watch: Hulu? Netflix? Disney+? MAX? Peacock? YouTube TV? Or maybe even good ol’ cable? Finally, there’s the choice of just what you’re going to watch—that is, if you have enough decision-making energy left to tune into anything other than your go-to comfort reruns.
For advertisers, this shift in audience habits and emerging opportunities has invited a host of new challenges: Just where, exactly, is my audience? How do I navigate the increased fragmentation of the TV landscape across linear and streaming? And how can I best meet my audience where and when they are watching to fully capitalize on the convergent TV opportunity?
This complexity has all culminated in convergent TV: a new mindset for TV advertising wherein strategies extend beyond any individual channel and instead account for the proper balance between traditional/linear TV, over-the-top (OTT) streaming, and connected TV (CTV). And though OTT and CTV are increasingly establishing themselves as forces to be reckoned with among viewers, linear TV still maintains a strong foothold.
Here, we’ll dig into everything advertisers need to know about convergent TV in 2024: from the lay of the land today, to emerging trends, to new innovations—and how viewers feel about them.
The last few years have seen significant shifts in the convergent TV landscape, including the 2023 writers’ and actors’ strikes, more streaming platforms releasing their own ad-supported tiers along with new original content, Netflix announcing plans to introduce its own adtech platform, an increase in streaming-exclusive live event broadcasts (including MLB and NFL games), and more.
Alongside these shifts in the TV landscape itself, audience viewership and ad spend trends have evolved as well.
Here’s where things stand in TV land in 2024:
In terms of viewership, traditional TV is on the decline: In June 2024, streaming amassed 40.3% of all TV usage, surpassing the previous record set by cable in 2021. As streaming grows in popularity, more and more viewers are opting to cut the cord (or, in the case of younger viewers, have never used a cord at all).
Over the past five years, time spent per day with traditional TV has decreased by nearly 17%. It’s likely not a coincidence that, during that same time period, OTT streaming services have exploded in popularity, and that time spent with CTV has increased by more than 137%. Though connected TV is especially popular with younger generations—millennials and Gen Z turn to CTV for more than half of their TV screen time—older viewers are doing a good amount of streaming themselves.
So, just what is driving these trends? Pandemic lockdowns famously helped accelerate the shift toward streaming and drove substantial CTV adoption. And in an age when consumers have grown accustomed to content being available on-demand and on-the-go, the increased convenience and flexibility that streaming offers—not to mention the ability to watch across multiple devices—also plays a significant factor. Additionally, beyond the extensive libraries of classic content that's long lived on streaming platforms, the emergence of new original content produced exclusively for streaming services has further increased the appeal of OTT and CTV. Coupled with a significant slowdown in new scripted content on linear TV in 2023 due to Hollywood labor strife and it’s not a huge shock that linear TV fell below 50% viewing share for the first time last year.
As more and more viewers choose a bundle of streaming services over a bundle of cords, advertisers are following in kind, attempting to connect with audiences precisely where they’re consuming their TV content.
Here’s what the convergent TV advertising landscape looks like in 2024:
This growth in OTT and CTV ad spending has, unsurprisingly, coincided with increased viewership on those platforms, but their advertising appeal extends beyond just eyeballs. CTV and OTT also lend themselves to highly targeted advertising, enhanced flexibility and customization based on user demographics and behaviors, and enhanced analytics and measurement capabilities. And, with increased signal loss and privacy-friendly advertising being top considerations for advertisers in 2024, CTV in particular can appeal as a privacy-first haven for digital advertising—after all, CTV has always allowed advertisers to connect with audiences in a targeted and privacy-friendly way.
Then, of course, there’s the other story that’s shaping the convergent TV landscape in 2024: political advertising.
Basis data shows that political programmatic CTV spend grew by 67% from 2020 to 2022, and strong growth is forecast for this year’s election cycle as well. In fact, of the $30 billion in projected total CTV ad spending this year, election year political spending is forecast to account for upwards of $1.8 billion—or more. With a controversial presidential race at the top of the ballot, combined with many other high-profile races and causes, advertisers across all industries will feel the effects of the 2024 election and should be aware of its potential impacts—particularly within the convergent TV landscape.
Linear TV has long been a staple of political advertising. With its familiar, lean-in viewing experience, it allows campaign teams to connect with and educate viewers in an emotion-driven way that fosters memorability. And though streaming is overtaking the convergent TV landscape, linear/traditional TV will still play a significant role in the 2024 election cycle, with 51% of total political ad spending during the 2024 cycle forecast to go toward broadcast television.
That said, political advertisers are increasingly taking a balanced approach to TV advertising by complimenting their linear ad buys with CTV and OTT. Digital video offers political advertisers many of the same benefits as linear TV, plus the ability to target and measure ads more precisely. It can also help them reach voters (particularly younger voters) who might not be tuning into linear TV—an increasingly pressing need given that 65% of likely voters prefer streaming to linear TV and 82% use ad-supported streaming services.
There are a variety of ways for political advertisers to tap into CTV inventory, spanning the open exchange, programmatic guaranteed, private marketplace (PMP) deals, and select partnerships with premium and/or exclusive inventory. By leveraging a well-balanced media mix and utilizing advanced targeted technologies such as automatic content recognition or district-based geopolitical targeting, political teams can turn to CTV to connect with key audiences.
Taken altogether, political advertising is set to spend, spend, spend across the convergent TV advertising ecosystem this year—and that will have a significant downstream impact on non-political advertisers, too. Linear, OTT and CTV inventory is likely to be more limited (and certainly more costly) in the days leading up to state primaries and Election Day itself. This is especially true in “purple” battleground states such as Pennsylvania, Arizona, and Georgia.
To adapt, non-political advertisers should be prepared to either pay significantly inflated rates for broadcast TV, or to shift dollars away from that channel during the weeks leading up to the election as political ads gobble up much of that inventory. When it comes to streaming, advertisers should consider leaning more heavily on other channels in their omnichannel mix or tapping into streaming inventory that does not allow political ads, such as Netflix, Amazon Prime Video, and Disney+. Additionally, advertisers should be especially mindful of brand safety and perception implications during the politically charged campaign season. By proactively understanding and adapting to the changes that political advertising will have on the larger convergent TV landscape, non-political advertisers can manage campaign costs, prioritize brand safety, and effectively reach target audiences in the runup to November 5.
In 2024, convergent TV presents a significant opportunity to all advertisers—particularly as more and more consumers shift towards streaming.
Across both linear and streaming, live sports advertising continues to be a powerhouse opportunity for advertisers looking to reach large and engaged audiences. And whereas live events used to be available only via cable/broadcast (think: the Super Bowl being broadcast live exclusively on CBS back in 2010), these events are increasingly being streamed simultaneously via connected TV and on OTT platforms (for instance, Super Bowl LVIII being broadcast on CBS, Nickelodeon, CBS.com and Paramount+). Some games are even being aired exclusively through these streaming services (see: Peacock’s exclusive NFL playoff game in January 2024 or the many NCAA sporting events that air on ESPN+).
In the year ahead, linear will continue to be a majority of viewers’ go-to home for live sports—and, in turn, a great way for advertisers to engage broad and captivated audiences in real-time. And as viewers increasingly turn to streaming for sports and other live events, advertisers can experiment with targeting these audiences via tailored and contextually relevant ads, ensuring their message resonates during these high-impact moments wherever those viewers happen to be tuning in. With Disney, Fox and Warner Bros. Discovery having announced a new ad-tiered streaming bundle where viewers can access live sports content from ESPN, FOX Sports, TNT, and more, those digital opportunities will only continue to increase in the months ahead.
Advertisers also have an array of new and emerging ad-supported tiers available to them on different OTT streaming platforms. Netflix’s ad-supported tier amassed 23 million monthly users less than two years after its launch, and Disney+ was sitting at just over 5 million ad tier subscribers in late 2023. Add in Amazon’s new ad-supported tier, and this all amounts to a significant amount of high-quality inventory that advertisers can use to connect with highly engaged audiences. And, by tapping into this inventory via private marketplace deals (PMPs) and programmatic guaranteed, advertisers can align their ads with streaming content most likely to resonate with their unique audience.
Viewers today consume content across a variety of devices—and often, on multiple screens at once. To capture and hold audiences’ attention, many advertisers are embracing interactive elements in their linear TV, OTT and CTV ads.
Innovations like shoppable ads and QR codes, in particular, can enhance the TV advertising experience and deliver value to consumers and marketers alike. Shoppable TV allows advertisers to seamlessly integrate e-commerce elements into their content, providing viewers with a direct pathway to make purchases. QR codes can play a similar role, offering a quick and convenient way for viewers to access additional information or promotional offers, and giving advertisers an easy way to meaningfully measure impact and attribution for specific ads.
Using these interactive elements can significantly boost conversion rates, as viewers can instantly act on their interest in a product or service. And, better yet, the features seem to be resonating with audiences, with one study finding that 70% of viewers like TV ads with QR codes and 62% would scan a QR code if they saw one in a relevant ad.
By leaning into new opportunities in the convergent TV landscape to capture and maintain audience attention—and, of course, balancing linear, OTT, and CTV ads with other channels to create a holistic, omnichannel experience for viewers—advertisers can engage with audiences intentionally and elevate their campaigns.
With the waves that artificial intelligence is making across the digital advertising landscape, it’s no surprise that it is also poised to shape the future of convergent TV advertising. GenAI, in particular, has the potential to revolutionize how ads are targeted, personalized, optimized, and integrated into content, particularly within the streaming landscape.
Take, for instance, contextual targeting. Contextual advertising has long been used in the TV advertising space to align ads with the content viewers are watching. Think: ads for kitchen gadgets during cooking shows, vacation ads during travel programming, home security systems during true crime shows, etc. Prior to recent advancements in AI, contextual targeting was less precise and relied on broader categorizations, such as whether a show was a comedy vs. a drama or was geared towards adults vs. teenagers. Now, thanks to GenAI, contextual targeting can tailor ads not only to specific shows but also to individual scenes within a show. For example, during a heartwarming family reunion scene in a popular drama series, an AI-driven platform could identify the emotional tone and insert a commercial for a family-oriented product, such as a minivan or a family vacation resort.
In fact, at the upfronts this year, several major streaming players showcased their new AI features: NBCUniversal shared how they are using GenAI to better identify and categorize the emotions of individual shows and movies in their collection to place ads more impactfully, for example, and Disney touted their new AI product that “ties mood to messaging.”
Another significant effect of generative AI on convergent TV is its ability to enable dynamic content creation for ads. Traditional TV ads are static, offering the same message to every viewer. However, with generative AI, advertisers can create countless sets of variables for personalization. For example, a car commercial can be dynamically adjusted to feature different backgrounds, music, and even dialogue, tailored to match the viewer's preferences and viewing habits. If a viewer is watching a suspenseful thriller, the commercial might take on a darker, more intense tone, whereas the same commercial might be lighter and more playful if the viewer is watching a comedy. This level of personalization ensures that advertisements are more engaging and relevant to individual viewers, thereby increasing their effectiveness.
And, GenAI's ability to synthesize vast amounts of data and create highly personalized content extends beyond just visuals and tone. It can also adapt messaging based on demographic data, viewer behavior, and real-time feedback. This means that an ad campaign can continuously evolve, optimizing itself to better resonate with its audience. For example, if data shows that a particular segment of viewers responds better to humorous content, AI can adjust the ad to incorporate more humor, making it more appealing to that specific audience.
The next several years will continue to see evolution in the convergent TV landscape, as the shift from linear dominance to streaming supremacy continues. Advertisers who navigate this complex terrain with agility, embracing the emerging trends and opportunities, are poised to make the most of this transformative era in TV advertising.
__
Looking for a deeper dive into how TV advertising fits into your video advertising strategy? Explore how savvy advertising teams can leverage digital video channels effectively and cohesively to create customer journeys that engage audiences and inspire action with Video Unleashed: The Ultimate Guide to Digital Video Advertising.
“Buzzword: A keyword; a catchword or expression currently fashionable; a term used more to impress than to inform, esp. a technical or jargon term” – Oxford English Dictionary
All industries have their buzzwords, but the advertising space seems to invite a few more than its fair share. And, in many ways, it makes perfect sense: Advertisers are experts at selling brands, ideas, products, and services, and language is a key component of any pitch. Trendy words and phrases can help signal that the person or business using them is at the forefront of innovation.
Of course, as the OED notes in their definition of “buzzword,” these terms and phrases can be used more to impress than to inform. As a result, when words become buzzwords, their meanings and applications often become less clear.
That said, taking stock of the buzzwords of the moment can be instructive for advertisers looking to better understand their competitors and the industry. The marketing terms and phrases that are in vogue can tell us a lot about what’s top-of-mind for advertisers: their pain points, their needs, their anxieties, and more.
As the advertising industry transforms thanks to tectonic factors like AI, the shift towards privacy-first marketing, and media fragmentation and the increasing complexity of advertising work, the terms advertisers hear and use frequently can tell a meaningful story about the broader advertising landscape. To better explore this, we asked marketing experts at Basis to share their buzzword-related insights—specifically, which buzzwords they hear all the time, their level of value and meaning, why they’re currently so popular, and what their popularity says about the state of the industry.
Most-Heard Buzzwords: AI, Growth hacking
Colleen’s Take: Often, it feels like advertisers bring these words into conversation to demonstrate that they’re in touch with the latest trends. However, they aren’t always relevant or helpful.
‘Growth hacking,’ which refers to rapidly increasing a brand or client’s user base or revenue with minimal budget/resources, feels especially demonstrative of the industry today. I see this buzzword used frequently by brands (particularly start-ups) to describe an approach where every dollar spent is heavily scrutinized. If it’s not driving measurable growth, it's cut.
Reading Between the Lines: The underlying story is that brands and agencies have been battling economic turbulence and other financial pressures for several years now, and they’re doing everything they can to try and drive revenue and increase the efficiency of their spend.
Most-Heard Buzzwords: ID bridging, ID spoofing
Noor’s Take: 2024 has been marked by discussion about alternative addressability solutions, as third-party cookies were expected to be fully deprecated before year’s end. As the adtech industry sought out new methods for consumer tracking, ID bridging gained traction as a proposed option. This solution intends to link user IDs via matching across channels and platforms to create a cohesive profile.
ID bridging has received a fair amount of criticism, including concerns around privacy, the formulation of unreliable IDs, and the need for volumes of first-party data. The handling and linking of related data points for ID bridging makes room for another problematic buzzword: ID spoofing. ID spoofing occurs when bad actors manipulate IDs in a bidstream to masquerade as other user IDs which may be more attractive to advertisers.
While Google no longer intends to deprecate third-party cookies in Chrome, marketers must still grapple with signal loss and the shift towards privacy-first advertising, meaning that these terms will likely continue to make the rounds.
Reading Between the Lines: Both terms have brought new points of contention and confusion to the advertising space. We Are Raptive founder Paul Barrister summed up the issue by saying: “After a year+ of talking to dozens of companies about ID bridging, I can confidently say that all ID bridging conversations are a series of miscommunications and misunderstandings.”
Most-Heard Buzzwords: Halo effect, "Right message, right time, right place”
Molly’s Take: Neither of these phrases are necessarily easy to measure and achieve.
The popularity of the term “halo effect” reflects that brand awareness is growing as a known need as a response to the industry’s laser-focus on performance marketing in recent years. Meanwhile, “right message, right time, right place” speaks to the fragmentation of the media landscape and the importance of marketing strategies that are aligned with the customer journey. Advertisers are returning to this adage, which has been around since our industry began, to guide their strategies as they grapple with fragmentation and media complexity.
Reading Between the Lines: These terms reflect a wider trend of advertisers returning to the basics as a way to cope with the significant transformation and complexity that currently characterizes the industry.
Most-Heard Buzzword: AI
Andrew’s Take: People have seen the power of generative AI with ChatGPT and are trying to imagine all the applications for creating efficiency. The popularity of the term “AI” speaks to advertisers’ goal of leveraging technology to be more efficient and effective. The industry is looking to stretch budgets as much as possible and do more with less, and many believe that AI can be used to do that effectively at scale.
While there are many real applications for AI, there are also people who try to take advantage of the buzz around it and apply it to things that don’t quite fit (i.e., AI-washing). It seems like this happens every time something is capturing headlines—for example, when blockchain technology was all the rage a couple of years ago.
Reading Between the Lines: As AI develops, it’s critical for advertisers to weed out the PR plays from what's real. This applies to all buzzwords.
In reviewing the buzzwords that advertising leaders hear most frequently, two distinct themes emerge, each providing meaningful insights for advertisers looking to better understand the current landscape.
The first is financial pressures. Advertisers have been dealing with economic instability for years now, and agencies are under particularly acute financial stress. The popularity of terms like “growth hacking” signal the urgency marketers feel around making the most of their budgets. The same can be said of marketers’ infatuation with AI, as businesses increasingly look to the technology to drive revenue and increase efficiency.
The second is that, even with Google calling off its plans to deprecate third-party cookies in Chrome, advertisers are still scrambling to market their brands and clients effectively amidst signal loss and media fragmentation. In this context, new and uncertain tactics like ID bridging can seem like an attractive way to help advertisers connect with their target audiences—and that attractiveness is amplified by marketing teams’ urgent need for alternative addressability solutions—but their effectiveness isn’t proven, and they may open advertisers up to additional risk.
Ultimately, while buzzwords can often be frustratingly vague or overhyped, they also offer valuable insights into what’s currently top of mind for advertisers. The critical task for marketers is to discern meaningful information and thought leadership from mere buzz designed solely to impress. By critically engaging with these terms and understanding their real-world applications, advertisers can set themselves ahead of many of their peers and position themselves favorably in context to the industry’s greatest hopes and fears.
Though marketing to Generation Alpha might seem like a far-off reality (after all, wasn’t it just yesterday we started to talk about connecting with Gen Z?), today’s youngest generation is already beginning to demonstrate a remarkable influence. With Gen Alphas forecast to amass $5.46 trillion in spending power by 2029, the time for brands and marketers to begin understanding these young consumers is, well, now.
Born between 2010 and the present day (the generation will include those born through 2025), the oldest Gen Alphas are just entering their teen years. With an estimated 2.8 million-plus Gen Alphas being born each week across the globe, they are projected to number more than 2 billion in total by 2025. As the first generation born entirely in the 21st century, they have grown up with near-constant access to technology, and their digital habits are already being formed.
Gen Alphas are not passive online users. They actively engage, create, and influence digital content, and prefer personalized, immersive, and interactive online experiences. As such, this generation’s emerging online behaviors and media preferences are already redefining how every sector interacts with them. For advertising teams to effectively connect with these young consumers when and where they’re spending time, they must understand what motivates them, how they’re currently engaging online, and how their behaviors are anticipated to evolve in the coming years.
Following in Gen Z’s footsteps, Gen Alpha is predicted to be the largest and most diverse generation yet. In the United States alone, there are approximately 45.6 million Gen Alphas now and they have already surpassed the general population in diversity. And by 2025, they will outnumber baby boomers.
This young generation is already showing distinct characteristics that are key for brands and marketers to understand. For instance, a striking 92% of Gen Alphas believe it is important to be themselves, reflecting a strong sense of individuality and authenticity. And, interestingly, most Gen Alpha parents report that their kids would rather play outside than in front of a screen, suggesting that traditional forms of play still hold significant appeal despite the rise of digital entertainment.
When it comes to Generation Alpha, the impact of the COVID-19 pandemic cannot be overlooked. Many of this generation’s members were born during the height of the pandemic or started school in its midst, experiencing firsthand the uncertainty and turbulence it brought. Gen Alpha’s early exposure to such a significant global event influenced their general outlook and mental health significantly. Notably, 75% of 8- to 10-year-olds say they are already thinking about mental health, and 37% of Gen Alpha parents are concerned their children will be worse off than they were in this regard.
Though they are showing distinct and unique preferences and behaviors, members of this generation are also significantly influenced by their parents. With more than half of this generation being born of millennial parents, researchers have dubbed them “mini millennials,” since so many of them are developing similar habits and brand preferences as their parents. That said, like each generation that has preceded it, Gen Alpha represents a new segment of consumers whose unique life experiences and values will shape the future of marketing.
Generation Alpha is the second wave of true digital natives, with an even deeper immersion in the digital world than the first digital native generation, Gen Z. In the US alone, there are 36.2 million children aged zero to 11 who are active internet users in 2024, nearly 12 million more than those aged 12 to 17. This early and extensive exposure to the internet sets Gen Alpha apart and will likely shape their online habits, preferred media channels, and other behaviors in the years to come.
Notably, 43% of Gen Alphas have a tablet before the age of 6, and 58% have a smartphone by the age of 10. This early and widespread access to digital devices from such a young age means that Gen Alpha is not simply familiar with technology—they are growing up with it as an integral part of their daily lives. For brands and marketers, understanding this deep digital integration will be key to engaging with this generation effectively as they grow older.
Additionally, 39% of Gen Alpha spends at least three hours a day looking at screens, and 24% spends at least seven hours a day on smartphones, underscoring how substantial a role technology already plays with this generation. And in 2024, 80% of internet users aged 11 and under will use a tablet at least once per month; 59.6% are connected TV viewers at least once per month; and 29.2% are smartphone users at least once per month. Even when they aren’t directly interacting with them, screens are everywhere in Alphas’ lives—in their classrooms, their parents’ hands, their living rooms, and even the stores they frequent. This pervasive digital media presence shapes their experiences, preferences, and behaviors. As they grow older, brands will need to think about how they will be able to connect with Gen Alpha given their deep immersion in the digital world.
It will be several years before Gen Alpha reaches an age where they can be advertised to. However, by seeking to understand their behaviors and preferences today, marketing teams will be well-positioned to connect meaningfully with them when they come of age.
Despite how young they are now, this generation is already forming brand affinities, both because they’ve gained some brand savvy through encountering different products and ads online, and because of their parents’ influence. In fact, just under half of Gen Alpha’s parents report that their kids already have favorite brands, and the cultural phenomenon of Gen Alpha “Sephora Kids”—aka kids dropping substantial money on skincare aimed at adults—has been making headlines. This early brand affinity presents an opportunity for marketers to start building brand awareness now by engaging with Gen Alpha’s parents. At the same time, it’s important for marketers to understand this generation’s emerging behaviors around digital video, gaming, and social media so that they can craft marketing strategies that will meet their unique needs when they reach an age when they can be directly marketed to.
Digital video is already establishing itself as an essential channel for reaching Gen Alphas: In 2024, 81.4% of internet users aged 0-11 watch digital video at least once per month, and half of Gen Alphas are streaming video daily.
In the US, children spent an average of 64 minutes per day on online video apps, representing a significant amount of their daily media consumption. YouTube tops the list as the most popular video app in the US for this audience, with Alphas averaging 84 minutes per day on the platform, followed by Netflix (49 minutes), Disney+ (30 minutes per day), and Hulu (30 minutes per day). The amount of time spent on these video platforms highlights their central role in Gen Alpha’s daily routines.
For advertisers, the fact that Alphas are spending such a significant amount of time on digital video now indicates that it will likely be a primary channel for engaging and connecting with them in the years to come. Unlike Gen Zers, who primarily discover brands through traditional social media, 51% of Gen Alpha say they first hear about brands through YouTube videos. Popular content types such as “storytime,” “review,” and “day in the life” videos captivate these young viewers, making them effective formats for brand messaging. Given the popularity of this digital channel now, it will likely only become more critical for connecting with Gen Alphas as they step closer to adulthood.
Another key channel for marketers to consider for connecting with Gen Alpha is gaming, given that 47.7% of internet users aged 0-11 engage in digital gaming at least once per month. Where relaxation is the number one reason for Gen Z to game, Alphas tend to see games as a way to express themselves or embrace their creativity. This distinction highlights the potential for brands to engage with this young audience by creating interactive and customizable in-game advertising experiences that allow Gen Alpha to explore their identities and showcase their creativity.
Though digital media is a near inextricable part of most Gen Alphas’ daily lives, members of this younger generation are showing early indications that they want a balance of online and in-person experiences. For instance, 78% of young consumers—including Gen Alpha—say they prefer shopping in-store. Gen Alpha’s preference for brick-and-mortar both paves the way for in-store digital advertising, such as digital out-of-home and retail media, as well as underscores the importance of crafting holistic omnichannel advertising experiences that remain consistent from digital spaces to in-person experiences.
Despite most social media sites requiring their users be 13 or older, many underage users are still accessing these platforms. Case in point: 65% of those between ages 8-10 already spend up to 4 hours a day on social media. And as they grow older, Gen Alphas appear on track to catch up to their Gen Z predecessors in terms of time spent on these platforms. This emerging trend underscores the growing importance of social media in Alphas’ daily lives.
For Gen Alpha, social media isn’t just about connecting with friends and family; it’s also about engaging with creators they admire and trust and discovering new things. In fact, 49% of kids say they trust influencers as much as their own family and friends when it comes to product recommendations. This offers brands a unique opportunity to collaborate with influencers and creators who resonate with Gen Alpha’s values and interests, thereby fostering deeper connections and brand loyalty. Additionally, younger generations are increasingly turning to social media rather than traditional search engines as their primary search tools, a trend likely to continue with Gen Alpha. This reliance on social media for search provides brands with an additional way to connect meaningfully with this younger generation in the years to come.
Like each generation that has come before it, Gen Alpha is poised to reshape the digital advertising landscape with their unique characteristics and preferences. As one of the first generations to grow up entirely in the digital age, their engagement with technology, digital video, gaming, and social media is already profound—and will likely only continue to deepen as they grow older.
For brands and marketers, understanding this dynamic generation now will be key for connecting with them as they amass more buying power. By focusing on authenticity and creativity and aligning with Gen Alpha’s values, brands can build lasting connections with what is poised to be the largest and one of the most influential generations.
As AI revolutionizes how advertisers work, media agencies are adopting the technology to drive revenue amidst slashed client budgets and shrinking margins.
Agency leaders overwhelmingly feel that AI will have a significant and positive impact on the advertising industry, with 82.4% believing that AI will be the most influential trend to shape digital advertising in the next ten years. At the same time, media agencies have a bit of a leg up when it comes to familiarity with AI, given that they’ve relied on the technology for longer than many other players in the industry via programmatic advertising (and programmatic optimization tactics like bid shading and machine learning optimization.)
As AI develops at a rapid pace, there are an ever-expanding number of ways agencies can employ the technology to save time and increase efficiency. To make the most of AI for driving revenue and staying competitive, media agencies may want to pay particular attention to AI-powered opportunities supporting campaign planning and optimization.
One of AI’s most meaningful impacts on marketing is its ability to organize and analyze huge amounts of data in a fraction of the time it would take for a human to do so. This AI-powered capability has already revolutionized the media buying space, most notably through the advent of programmatic advertising. Today, AI is growing increasingly effective at pulling insights from audience and historical campaign data to help marketing teams craft more impactful campaign strategies.
For instance, AI-driven social listening is becoming table stakes for marketers. Manually sifting through social media to gain insights on the top concerns of consumers looking for a certain type of product takes hours—but AI-powered social listening tools can get it done in a matter of minutes. Using these tools, advertisers can easily track their competitors online as well as quickly generate clear insights into consumer sentiments, preferences, and trends. They can then use those insights in the planning process to ensure their campaigns are attuned to both competitor activity and consumer sentiment and behavior. For example, Fulham Football Club uses social listening to gain a more segmented and nuanced understanding of their fanbase according to their online activity, which opens up opportunities to target those segments with personalized messaging. This heightened attunement to their audience helps Fulham spend more efficiently, which in turn drives revenue.
Moreover, these types of tools aren’t exclusive to social—AI listening tools can pull data from search touchpoints and synthesize data from consumer reviews as well.
Beyond customer listening, media agencies and their technology partners are finding more and more ways to refine campaign planning processes using AI’s data synthesis capabilities. For example, some advertising platforms can employ AI to synthesize data from all the campaigns that run within them, and provide advertisers with insights into performance benchmarks and budget distribution trends amongst marketing teams working in the same vertical. AI can also accelerate the forecasting process, enabling advertisers to predict available inventory based on specific criteria and implement new strategies using the precise targeting parameters from their forecasts.
Media agencies are also mitigating signal loss by using technologies like CDPs equipped with AI to quickly gather, standardize, and leverage consumer data to pull audience insights and track the customer journey to plan their campaigns more strategically as well.
Overall, leveraging AI to implement audience and competitor insights in the planning process can help media agencies save time and craft data-driven strategies that are finely attuned to their target audiences’ needs and preferences as well as market trends, helping them better drive ROAS and deliver revenue for their clients.
AI-powered campaign optimization has been around for a while, but new innovations in this area offer media agencies a variety of ways to allocate campaign assets and budgets more effectively. In fact, AI is moving the advertising industry closer to a world where teams will spend very little time on manual campaign optimization, freeing them up for more strategic and fulfilling tasks.
Tools like bid shading and group budget optimization, which automatically make campaign adjustments to improve win rates and drive increased ROAS, have begun this process and are growing more widely adopted. As AI continues to progress, more tools such as these are expected to emerge and help advertisers drive revenue by allocating their dollars towards the tactics, channels, and properties where they’re most impactful.
Major adtech partners are also rolling out offerings that include AI-driven campaign optimization features, such as Google’s Performance Max and Meta’s Advantage+. However, these walled-garden offerings don’t come without trade-offs—the most significant one being the transparency media buyers are used to. While it’s important for advertisers to test and learn on these tools, media teams must assess whether they are actually accomplishing their goals, rather than setting and forgetting their campaigns.
Dynamic creative optimization (DCO) is another developing area that’s helping media teams save time and spend more effectively, allowing media teams to serve high volumes of diverse creative that’s personalized to specific audience segments, which makes it more likely for ads to resonate with more consumers. One Jack in the Box campaign, for example, used DCO to generate 135 different ad variations and saw a whopping 85% increase in CTR compared to the campaign’s benchmark.
DCO not only reduces time spent on manual creative optimizations, but also provides media teams with extensive insights on how all those creative variations perform, allowing them to tweak their strategies based on those learnings.
These are just a few of the many ways in which AI is helping advertisers to automate and speed up the campaign optimization process, and there are plenty more coming down the line as the technology advances. When used effectively (and carefully monitored by human teams), these tools hold tremendous promise for increasing efficiency and personalization—and thus for driving revenue for media agencies and their clients.
Media agencies have a unique opportunity to leverage AI to drive revenue and enhance efficiency, at a time when such results are critically needed across the agency landscape. AI-powered planning and optimization tools are two areas that offer particularly strong benefits.
Additionally, the AI-driven campaign planning and optimization functionality detailed above can pair with workflow automation technology to help drive wider agency efficiency, reducing manual workloads for teams across the organization.
In exploring and integrating these types of AI into their operations, media agencies can open new avenues for growth and innovation, and position themselves at the forefront of an increasingly AI-driven industry.
How will the latest legislation out of Europe and the United States impact digital advertising in 2024 and beyond?
It’s been a busy couple of years for digital advertising industry regulators, with new regulations taking effect around the US and new legislation popping up across the globe. What’s the latest, and how will it impact advertising and marketing professionals? Let’s dig in and find out:
While the United States has taken its time determining how to handle Big Tech regulation, the European Union has embraced its reputation as the world’s fiercest tech regulator.
Unrestrained by free speech rules like America’s First Amendment, the EU has taken the lead on matters like consumer privacy (with GDPR), walled gardens like Apple’s App Store and the Google Play Store (with the Digital Markets Act), and misinformation and hyper-personal ad targeting on social media (with the Digital Services Act).
Though some requirements of the Digital Services Act (DSA) came into effect in 2023, with “Very Large Online Platforms” and “Very Large Online Search Engines” being subject to the law’s stipulations, it wasn’t until February 2024 that all platforms became subject to its broader implementation and enforcement. The law compels social platforms like Facebook, Instagram, and YouTube to dedicate more resources to stomping out misinformation and hate speech on their platforms, and bans any targeted online ads that are based on an individual’s ethnicity, religion, or sexual orientation. Google and Meta are also now subject to annual audits to uncover “systemic risks” related to their social assets, search engines required to suppress misleading search results, and even Amazon will have to comply with new rules aimed at curbing the sale of illegal products.
As for the Digital Markets Act, in September 2023 the EU designated six companies—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—as “gatekeepers” under this regulation. Though TikTok and Meta appealed this designation and Apple filed a legal challenge to the DMA itself, these tech giants have been forced to make changes to meet the rules and requirements outlined in the DMA, such as allowing users to choose different default browsers and search engines, download iPhone apps outside of Apple’s App store, and control how their personal online data is used.
Altogether, social media platforms face strict regulation in the EU—and serious consequences when they breach the bloc's privacy laws. Meta learned this the hard way, incurring a nearly $1.3 billion penalty for transferring user data between the United States and countries in the EU and the European Economic Area. It’s the biggest penalty an EU regulator has levied on a tech company since 2021 and a clear signal that privacy compliance is non-negotiable. (That said, the EU-US Data Privacy Framework should hopefully help prevent similar data flow-related fines and confusion going forward.)
Back stateside, industry regulation is a bit more decentralized—at least, for now. While federal-level legislation has mostly lingered in congressional purgatory (more on that in a bit), five new state-level data privacy acts took effect in 2023—with new regulations coming to Virginia, Colorado, Connecticut, Utah, and California. And in 2024, new rules are arriving in Texas, Oregon and Montana, with several other states to follow suit in 2025 and beyond. Notably, in May of this year, the Vermont Legislature passed one of the strongest data privacy measures in the country, which includes a provision that would allow individuals to sue companies that violate their privacy rights. Though it is unclear whether the state governor will sign the final bill into law, if enacted in its current form, it would make the state the first to allow individuals to sue not only for data breaches but also for violations of their digital privacy rights.
At present, the broadest and most impactful of these enacted state-level regulations is the California Privacy Rights Act, aka CPRA. Building off the foundation of 2018’s California Consumer Privacy Act (CCPA), the act created a California Privacy Protection Agency that’s dedicated to (and responsible for) enforcing the law—indicative of increased enforcement—while also reducing ambiguity around how to interpret some of the data-related aspects of the law. The CPRA now requires companies to give consumers the opportunity to not only opt out of the sale of their personal information, but also of giving or sharing that data with someone else, including a third party that might use it for cross-context behavioral advertising.
As Basis Technologies General Counsel Derek Zolner put it: “Essentially, the CCPA, CPRA, and the other data privacy acts that are popping up around the US are establishing legal enforcement mechanisms around personal control of one’s personal data and codifying many of the core principals of our industry—namely, transparency, notice, and the right to opt out. Only now, instead of the industry self-regulating these matters, state governments are intervening to take control of that enforcement.”
Meanwhile, at the federal level, a bipartisan group of lawmakers released a draft piece of legislation in April 2024 that would establish a comprehensive federal consumer privacy framework, called the American Privacy Rights Act of 2024 (APRA). Though Congress has flirted with passing such legislation for many years, the APRA could be a major step forward given that it has garnered both bipartisan and bicameral support, including several key members of the House and Senate.
If signed into law, the APRA would have serious implications for the digital advertising ecosystem. Draft legislation establishes clear national data privacy rights and protections, gives individuals the right to sue those who violate these rights, establishes strong data security standards, and gives the FTC authority to enforce any violations of the bill. It may also require consumers to opt-in to any online tracking used for marketing purposes, which could have a significant impact on targeted advertising.
But the APRA isn’t the only bill that could fundamentally alter the entire digital advertising landscape: Some in Congress are floating legislation that, if passed, could potentially end the Big Four era of Big Tech.
In 2022, a bipartisan group of lawmakers led by Utah Senator Mike Lee introduced a bill that would prohibit companies that take in $20 billion or more in digital ad revenue—think Google, Meta, and Amazon—from owning all of the tech and marketplaces involved in both the buying and selling of those ads. The legislation, titled the Competition and Transparency in Digital Advertising Act, would also bring new levels of transparency to the industry, requiring companies with more than $5 billion in digital advertising revenue to “act in customers’ best interests and provide greater transparency on data collection, the terms of winning bids and the fees they charge.”
In essence, the law would force ad behemoths like Google to sell or spin off parts of its $237 billion global ad business while delivering new levels of programmatic advertising transparency for advertisers and publishers alike.
Now, whether or not the Lee-drafted legislation ever makes it to the President’s desk is far from certain. However, the fact that it has finally reached the Senate floor after months of rumor—and that it even has bipartisan cosponsorship in a very fractured Washington—shows just how real the desire is among many Americans for a digital advertising industry that’s less of a black box and more of a sunlit building with lots of South-facing windows.
As if pending legislative action wasn’t enough, Google and Meta are also facing both consumer scrutiny and federal lawsuits around alleged anticompetitive practices, ad auction manipulation, and monopolistic market shares in the US.
Google, in particular, has caught the eye of the Justice Department and several states. It has faced not one but two lawsuits alleging violation of US antitrust laws. The first case, brought by the Department of Justice and 11 state Attorneys General, aimed to prevent Google from “unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets.” This suit and its ruling come at a time when Google owns a whopping 90% market share in search, though the company maintains that its supremacy in the landscape is because they “simply provided a superior product.” The 10-week trial for this case concluded in early May 2024, and in August 2024, a federal judge ruled that Google had, in fact, violated antitrust laws in online search. In his ruling, Judge Amit P. Mehta stated, “Google is a monopolist, and it has acted as one to maintain its monopoly.” Potential penalties or remedies for Google’s misconduct have not yet been set.
Additionally, Google is the subject of a second suit accusing the company of “monopolizing digital advertising technologies” in violation of the Sherman Antitrust Act and is set to go to trial in September. While the first case addressed its monopolization of the search landscape, this second case relates to Google’s overall presence within the digital advertising landscape. If successful, this lawsuit would not just bar Google from engaging in anticompetitive practices, but force it to divest of some (or all) of its ad business, such as its ad server, ad exchange, ad networks, or DSP.
Together, Google, Meta, and Amazon account for nearly two-thirds of the $300+ billion US digital ad market. Between those antitrust concerns and accusations of political meddling against big tech from both side of the aisle, the possibility of major regulatory changes in the digital advertising industry is all too real.
This antitrust regulatory action isn’t limited to the US. Across the pond, Google faces similar antitrust charges for its digital advertising practices, with the European Commission citing Google’s heavy involvement at “almost all levels of the so-called adtech supply chain” and noting concerns that the world’s fourth-most valuable company “may have used its market position to favor its own intermediation services.” This marks the fourth time Google has run afoul of EU antitrust regulations in the last few years, and with the bloc’s history of action against US-based tech giants, the case is unlikely to go away anytime soon.
Beyond these antitrust suits, recent years have seen a notable increase in class-action lawsuits against brands for allegedly making false and/or misleading claims in their advertising.
For instance, Starbucks is being sued for advertising that they’re “committed to 100% ethical sourcing” despite sourcing coffee beans and tea from “cooperatives and farms that have committed documented, severe human rights and labor abuses,” according to the lawsuit filed by the National Consumers League. Soda company Poppi faces a class-action lawsuit for advertising “prebiotic” and “gut healthy” benefits, when such benefits are negligible—particularly given how much sugar their products contain. The makers of Liquid I.V. are being sued for including a “no preservatives” label on their electrolyte drink powder, despite using citric acid and other well-known preservatives. And Grubhub faces a lawsuit that alleges the company deceives customers by promising free delivery, but then charging fees at checkout.
This uptick in false advertising lawsuits shows a growing awareness and intolerance towards deceptive marketing practices among consumers and regulators alike. Both are increasingly willing to hold companies accountable for misleading claims, reflecting a broader demand for transparency and honesty in advertising. Additionally, several new enacted and proposed state-level regulations echo these growing demands, including a California law that targets misleading product labeling around recyclable plastic, a proposed Arizona bill aimed at helping to eliminate misleading information in healthcare advertising, and a proposed Louisiana bill addressing truth in advertising, specifically as it relates to related to how foreign seafood is sourced and labeled.
Given the increased legal scrutiny, consumer sentiments, and uptick in legislation aimed at tackling misleading or false advertising, brands and marketers must be diligent in ensuring that they are not only meeting all regulations but also crafting marketing messages that are truthful and authentic—or risk legal repercussions and lasting damage to their reputations.
Since its public release in 2022, generative AI has garnered a lot of hype—and for good reason. From AI chatbots like ChatGPT and Bard, to AI image and art generators like DALL-E 2 and Midjourney, to Microsoft and Google both embracing new AI-powered search capabilities, this emerging tech is making some serious waves in the marketing and advertising world (and beyond). But for all the excitement around generative AI, its boom has also been accompanied by fierce warnings and concerns from experts across the globe.
Amidst these mixed emotions, it’s no surprise that AI regulation has become a hot topic. After briefly banning ChatGPT in March 2023, Italy’s data protection authority has since further solidified its plans to closely scrutinize and evaluate generative AI tools their compliance with data protection and privacy laws. And last summer, the EU came out with the world’s first comprehensive AI law: The EU AI Act, which was finalized in December 2023, approved by the European Parliament in March 2024, and officially came into effect on August 1. In the act, they outline the many potential benefits of AI, as well as “establish obligations for providers and users depending on the level of risk from artificial intelligence.”
The US, meanwhile, has yet to take action quite as deliberate as the EU’s, but that doesn’t mean Washington has been ignoring AI’s emergence. In May 2023, OpenAI CEO Sam Altman appeared before Congress and directly encouraged lawmakers to regulate artificial intelligence, and shortly after, a bipartisan collection of congresspeople introduced a new House bill for an AI-focused oversight commission.
Additionally, President Joe Biden signed an executive order in late October 2023 that aimed to address the “safe, secure, and trustworthy development and use of Artificial Intelligence”. Though this order touches on many of the challenges that have arisen with AI and outlines tangible guidelines and action steps, it’s worth noting that these are merely voluntary guidelines, not enforceable regulatory standards. To become law (and enforceable as such), this order will almost certainly need to be accompanied by congressional action. All of that said, tech leaders appear largely divided on how AI should be regulated—with some even questioning if it should be regulated at all. As this disruptive technology continues to evolve, so too will governments’ regulatory approaches, and we are likely to see more concrete activity on this front in the months ahead.
Last but not least, while much of the focus of recent regulation has had an eye toward American-based companies, there is one notable exception to the trend: TikTok.
Many no doubt remember the TikTok regulation sagas of 2020, when then-President Trump attempted to remove the app from Apple and Google app stores over data privacy and national security concerns and even worked to force the company to sell its US operations to an American firm such as Oracle or Microsoft.
While those more immediate federal-level threats seemed to taper off following the election of President Joe Biden, the lull proved to be short-lived. In March 2023, the Biden administration demanded that TikTok be sold or risk facing a nationwide ban. In the months that followed, lawmakers in Washington indicated widespread, bipartisan support for regulating the app, pointing to ongoing concerns around TikTok’s data practices and its ties to Chinese-owned parent company ByteDance. Then, in April 2024, Congress took action, passing legislation that stipulated ByteDance must sell its stake in TikTok within 12 months or else the app would be banned in the US.
Since President Biden signed that bill into law, backlash from TikTok and its users has been both swift and severe: TikTok content creators are suing the US government, a battle which could end up before the Supreme Court. “Rest assured, we aren’t going anywhere..." said TikTok CEO Shou Chew. "The facts and the Constitution are on our side, and we expect to prevail again.”
The app has also faced harsh scrutiny at the state level. In May 2023, Montana became the first state to ban TikTok, but a federal judge temporarily blocked that law before it could take effect. Additionally, TikTok has been banned from government devices in more than half of all US states, numerous universities have blocked the platform from campus Wi-Fi networks, and a group of 15 state attorneys general have called on Apple and Google to change TikTok’s app store age ratings.
As TikTok continues to soar in popularity, gobble up market share, influence global culture, and embrace advertising opportunities, it will no doubt attract increased legislative and regulatory scrutiny from governments around the globe. So while it is still operating in the US and around most of the world, the clock is ti(c)king...
On to the big question: what does this all mean for digital advertisers?
For one thing, the Digital Services Act will potentially lead to safer advertising environments—particularly on social media—helping both brands and users enjoy a more hospitable digital ecosystem. With brand safety an increasingly-meaningful aspect of the brand-customer relationship, an internet with less misinformation and more trust would be more than welcome across the globe, let alone in Europe. The EU legislation will also mean some aspects of targeted digital advertisements in the region are slightly less personalized, at least on the basis of ethnicity, religion or sexual orientation.
Additionally, the uptick in class-action lawsuits against brands for false advertising and increased state-level legislation aimed at addressing misleading advertising signals the need for marketing teams to prioritize truthfulness and intentionality when it comes to their messaging. Consumers aren’t buying unsubstantiated or misleading claims, and advertising teams will be well-served to ensure they’re communicating about brands, products, or services in a way that builds trust.
When it comes to TikTok, the app's booming growth and rising ad revenues do not appear at risk with any new agreements surrounding US user data, and advertisers will likely remain until a ban actually comes into effect (if it can surpass the legal hurdles ahead).
As for Google, the biggest threats to its digital ad dominance (other than an AI-fueled search revolution) are the 2024 ruling on its monopolistic search practices as well as the adtech antitrust suit, which goes to trial in September. The US-based advertising-specific suit—an “ambitious swing” from the Justice Department—nevertheless has a very real potential to succeed. Google, for its part, has said the US suit “ignored the enormous competition in the online advertising industry” and that the EU charges “focus on a narrow aspect of our advertising business.” Regardless, both the recent ruling and the suit could cloud Alphabet’s forecasts and bring further uncertainty to a company that in the last 12 months has conducted several rounds of layoffs, including its largest ever, while facing new search competition from an AI-powered Bing.
In regard to the other US bill, Google, Meta, and Amazon—not to mention their lobbyists—will no doubt have plenty to say about its contents. Google's immediate reaction was to say that the bill will "hurt publishers and advertisers, lower ad quality, and create new privacy risks" and pointed to "low-quality data brokers" as the true problem. And in the years since it was first introduced, the bill’s progress has (like so many others) predictably stalled. But whatever the outcome, it’s clear that Washington is hearing the rising calls for digital advertising transparency from brands, publishers, and consumers alike.
Finally, when it comes to data privacy regulation, state-based US legislation such as the CPRA should lead to increased transparency and control over personal data for consumers—or, at least, for consumers from those states that have enacted new privacy laws. And the APRA is likely Congress’ best chance yet at passing a federal consumer data privacy law, given its bipartisan support across both the House and Senate. The months ahead should see more action on this legislation, given that high-level lawmakers have indicated it is among their top priorities.
As much as people want a unified, omnichannel consumer experience, they’ve also made it clear that they want more control over who can—and who cannot—access their personal data as part of the advertising process. Private companies like Apple (with iPhone’s App Tracking Transparency and lack of third-party cookies on its Safari browser) and even Google (which is no longer deprecating cookies in Chrome but instead allowing users to “make an informed choice” about whether or not to allow cookies ) have shown a willingness to slowly but surely give consumers more control over their data. However, the rest of the advertising industry has at times seemed reticent to accept the realities of increased signal loss.
One way or another, though, the digital advertising industry is going to have to prioritize privacy. Consumers and regulators alike are demanding increased transparency and individual control over user data. And if Big Tech—and the advertising industry—don’t want to make the difficult choices involved in regulating themselves when it comes to consumer privacy, then world governments will likely be all too happy to do it for them.
If all this regulatory activity out of the EU and the US tells us anything, it’s this: Regulators have their eye on the digital advertising industry. Advertising leaders looking to balance innovation with compliance must take regulators’ concerns seriously by prioritizing consumer privacy, avoiding false and/or misleading messaging, approaching AI with caution and intentionality, and keeping an eye on regulatory developments across the board.
Post updated August 7, 2024
Despite continued privacy and cybersecurity concerns from regulators within the US and beyond, the TikTok era of social advertising marches on. Moving way beyond its roots as a forum for lip-syncing and dancing teens, the short-form video app has blown up the model of what a social network can be, and is increasingly a must-buy for a growing number of advertisers.
To excel on this channel, brands must embrace creator-led, user-generated, unfiltered content to tell their story. And above all, they must be authentic. Indeed, nailing the creative in a way that is real and raw should be priority number one for advertisers on TikTok.
Powered by a dynamic algorithm that quickly gauges individual user preferences and then curates a highly personalized “For You” page (FYP), TikTok doesn’t have its users tell the platform what they want to see—rather, it tells them. And the internet, and advertisers, seemingly can’t get enough. The app is continually developing and implementing ad capabilities and features, and there is already much for media buyers to get excited about, particularly since it offers a complete in-app experience where users can shop directly through LIVEs, in-feed videos, or links on brands’ or creators’ profiles and check out without ever having to leave the TikTok app.
Of course, it’s not a channel without its share of troubles and controversies. Over four years after the Trump administration threatened to ban the app if its Chinese owner ByteDance didn’t divest, TikTok is once again facing an existential threat. In April, President Biden signed a law that will ban TikTok in the US unless its parent company, ByteDance, sells its stake in the app within a year, citing perceived risks to national security and user safety. That said, the law has already faced numerous legal obstacles, with a US court set to hear challenges to the potential ban this September.
Even in the face of all the controversy, TikTok has become a go-to app for millions of users and a must-use for countless advertisers. Here, we explore the evolution of TikTok through a collection of stats and facts. We’ll cover all the good stuff and all the ban-related stuff as we look to paint a picture of why TikTok continues to be the talk of the digital advertising town.
It is, quite literally, a multi-billion-dollar question: Just how did TikTok go from being a niche player to one of the most popular apps on the planet? The reality is there is no single answer, but instead a combination of factors: simple and easy-to-use video creation tools that blur the metaphorical line between creator and consumer; shrinking attention spans that pave the way for short-form video to thrive; a vast library of licensed music that allows users to easily enrich their clips with audio without fear of copyright infringement; and a community and collaborative feel within the platform (think hashtag challenges and Stitch). Its model is so successful, in fact, that it has frightened Meta and YouTube (among others) into disrupting their own business—Instagram Reels and YouTube Shorts, anyone?
“Don’t make ads, make TikToks.”
That was the invitation TikTok laid out for advertisers when it opened its brand-facing wing back in 2020. And with the company’s revenues skyrocketing, it appears that challenge has been gleefully accepted. TikTok’s ad business made its first foray into performance marketing with lead-generation ads that empower brands to collect information from prospective consumers through forms and contests. Since then, TikTok has been busy significantly expanding upon those offerings, rolling out formats like interactive add-ons, search ads, and collection ads that together play a fundamental part in the app’s monetization strategy.
TikTok has disrupted how an entire generation connects, shops, entertains and educates itself, and ultimately perceives the world. To understand why TikTok is so popular with Gen Z is to understand their inherent characteristics. Research shows that one of the defining features of this generation is that they view consumption as an expression of “individual truth.” They are also the first generation of digital natives, so they’re well-acquainted with digital advertising tactics and therefore naturally drawn to fresh ideas and creative storytelling (for example, unfiltered videos!). The fact that TikTok facilitates self-expression and celebrates authenticity plays right into their hands. In other words, TikTok and Gen Z were made for one another.
For a long time now, TikTok has been the elephant in its competitors’ boardrooms. The app’s advances in ad technology, measurement capabilities, and expansion into the digital marketing ecosystem (for instance, through music streaming and mobile gaming) indicate that TikTok is not content to simply sit in the realm of short-form video. The platform is siphoning ad dollars away from Meta, but the diversification of its portfolio could soon pit TikTok against the likes of Spotify, Apple, Amazon, and Google as it transforms into a public square for news and conversation.
After the US federal government and numerous states outlawed use of the app on government-issued devices (something many other countries have done as well), earlier this year, President Joe Biden signed a law that will force ByteDance to sell its wildly popular app—or face an outright ban across the US.
This isn’t the first time that TikTok has felt the metaphorical heat, and the months ahead should provide greater clarity on the future of the app in the US. Creators on the app, as well as TikTok itself, have filed lawsuits against the federal government in the wake of this law, and hearings are set for September. Even barring a federal ban, the app is facing regulation and scrutiny at a variety of levels.
TikTok grew into a digital advertising powerhouse seemingly overnight. Its consumer appeal and high engagement rates across numerous verticals make it a worthy option for ad spending for a wide variety of marketing teams. But as a new(ish) channel, figuring out just where it fits into the digital media mix and how much budget should be dedicated to the platform remains up in the air for many brands. And with the threat of a ban looming, marketers would be wise to start scenario planning and maintain flexibility with social ad buys so they can quickly pivot to an alternative video platform quickly if needed.
One thing is for sure, though: TikTok remains social media’s golden child, and there are great rewards available to those that get it right.
In many ways, native advertising is the veritable chameleon of the digital marketing world. It’s come a long way since its inception over a decade ago, evolving into an important strategic component of digital campaigns—so much so that US native ad spend accounted for almost 60% of total display ad spending last year. Against all the disruption and recalibration across the digital marketing industry right now, native advertising shines through as a reliable and trusted way for brands to communicate their story. In fact, one study found native advertising to be the most impactful channel for brand favorability.
Here, we define what native advertising is and unpack what it looks like, how it can drive performance, and what the future holds for the medium.
At its most basic level, native advertising is a form of paid media that mimics the look, feel, and function of its editorial environment. In other words, it fits in naturally alongside the original content on its host website or app without disrupting the user’s browsing experience—sometimes to the extent that consumers don’t even register they’re engaging with an ad. If you’ve ever been reading an article on a news site, or scrolling through TikTok or Instagram and not realized that content you’re enjoying is is an ad until you’ve 15 seconds in (or more!) because it blends in so seamlessly with the rest of your feed, then you’re already intimately familiar.
Native advertising is most commonly deployed as paid “in-feed" posts on search engine results pages (SERPs) and on social networks such as Instagram, TikTok, and Reddit. Indeed, close to three-quarters of native display ad dollars are spent on social networks, while 97% of all social network ad spending is native.
Native display advertising stands out from other ad types by “blending in” with the content around it, offering a user experience that can feel less disruptive . Unlike traditional banner ads that can feel intrusive and are often ignored, native ads match the form and function of the platform on which they appear. By integrating naturally into the user’s experience, native display advertising can foster higher engagement rates and deliver a more authentic interaction with the audience, ensuring a brand’s message resonates effectively.
Beyond display, this channel can take other forms as well: as “recommended content” typically found at the foot of news sites, or as more extravagant “branded content” that consumes entire webpages (and occasionally entire websites). Let’s dig deeper into these different formats:
In-feed native ads copy the layout (arrangement of elements) and the design (font, color, scheme, aesthetics, etc.) of the surrounding environment while simultaneously including visual cues informing the reader that it is a paid ad and not organic content. For instance:
Historically, when a consumer interacts with an in-feed ad, they will subsequently navigate to the advertiser’s website. But through the rise of technologies and spaces such as social commerce and retail media networks, brands can now enable users to shop and take action directly on many publishers’ sites, putting customers closer to the transaction point. As these systems evolve and mature, in-feed native ads could potentially assume even greater importance.
Content recommendation ads are delivered via widgets into the main hub of a publisher’s page or underneath or beside individual articles. These native ads don’t necessarily imitate the appearance of the editorial content neighboring them, and the majority will link off-site. Disclosure language for these units can be anything from “You might also like” or “Elsewhere from around the web,” to “You may have missed” or “Recommended for you.” If served via a third party, the technology provider may also include its name or logo to further indicate that content is not produced by the publisher, i.e., “Recommended by Outbrain” or “Recommended by Taboola.”
This type of native advertising goes beyond the initial ad by also incorporating written content and (sometimes elaborate) design work that takes the form of an article, blog post, vlog, infographic, or interactive webpage. This branch of native has grown to be quite lucrative in recent years, with many major news outlets opening their own in-house commercial teams specializing in producing multi-dimensional content on behalf of brands (think T Brand Studio at The New York Times or Brand Studio at The Washington Post).
This content lives on the publisher’s site but will typically feature multiple outbound links directing to the advertiser’s own pages. The key thing to note here is that branded content is created and produced through direct partnerships between an advertiser and a publisher, with their placement guaranteed based on a fixed pre-negotiated (and oftentimes premium) price.
For advertisers looking to scale their campaigns in a cost-effective way, programmatic native advertising offers great opportunities. By automatically serving ads in real-time through a demand side platform (DSP), advertisers can create richer, more relevant brand experiences for consumers across screens and devices. Advertisers simply need to provide an image, headline, description, and click-through URL. Then, depending on the form of the organic content on the site where the ad will be shown, the programmatic native platform used by the DSP will determine which of those elements to bring in so the ad matches its context as closely as possible.
Programmatic is so dominant in the native ecosystem today that native programmatic advertising constitutes 95% of all native display ad spending. Additionally, close to 66% of all programmatic display ad spending in 2024 will be native, though that share has been dropping for a few years as programmatic increasingly permeates newer, emerging channels such as connected TV (CTV), digital out-of-home (DOOH), and podcasts.
As adtech becomes more sophisticated, advertising teams can leverage a host of creative native advertising formats to make a more compelling impression on consumers, going even beyond branded content. No longer are marketers restricted to the use of a single, static image: Native ads can now incorporate animated GIFs, carousel ads, click-to-watch video ads, instant play video ads, and more—options that are particularly attractive for advertisers looking to reach younger audiences. Advertisers can then pick and choose which style(s) best serves their message and potential customers.
For example, B2B brands looking to tell a story around a campaign to drive leads can create a click-to-watch video ad with an embedded CTA. Retail and e-commerce brands can use native carousel ads to showcase a collection of products (or multiple images of one product). And travel and tourism brands can create snazzy photo spreads or short-form videos to showcase the allure of a particular destination or travel experience that customers may come across as they browse their social feeds.
What does the future hold for native advertising? Well, there is definitely change afoot.
The channel is still growing, but its share of total display has plateaued of late—largely because its success is so intrinsically tied to that of social media, and the social landscape has seen significant upheaval in recent years.
However, the tides appear to be turning for social platforms in 2024, as social media spend is forecast to increase by 14% year-over-year, becoming the largest media channel worldwide by advertising investment.
Still, while social platforms have dominated the native space for so long due to their audience targeting capabilities and array of available ad formats, streaming and mobile channels are opening up new opportunities for native ads with more inventory available programmatically. All in all, while social will likely remain a significant force in the native advertising world, advertisers are diversifying their native spend across other channels as well.
Native advertising can be a dynamic addition to any marketing mix. By seamlessly and authentically integrating into consumers’ online browsing and shopping experiences, native ads are often able to achieve higher levels of engagement and brand recognition than other channels. Plus, innovations across the digital ecosystem could expand native advertising’s reach and capabilities moving forward.
Want more insights into how native reimagines consumer connection in meaningful and less disruptive ways? Check out our Native Advertising Guide.