January 2024

2024 Advertising
Outlook Report
Key insights on marketing trends that will impact the coming year, with
data gathered from 1,000+ leading marketing industry professionals.
 Table of contents
Introduction........................................................................................ 3

Foreword by Joanna O’Connell.................................................... 4

Insight #1: Macro ad spend

trends reflect industry optimism................................................. 6

Insight #2: Focus on AI comes

at expense of Metaverse................................................................ 7

Insight #3: Current applications of AI focus on

research and analytics over content generation .................. 9

Insight #4: Brand advertising

investment continues to accelerate.......................................... 10

Insight #5: The creative-media gap persists....................... 12

Conclusion and Methodology.....................................................13

About Mediaocean and Flashtalking....................................... 14

2  ©2024 Mediaocean
Introduction
Thank you for reading Mediaocean’s 2024
Advertising Outlook Report. These insights
reflect input from more than 1,000 customers
and partners, focused on key consumer
and technology trends along with 2024
projected media investments. We primarily
surveyed marketers and agencies, but also
included perspectives from media companies,
measurement firms, tech platforms, and other
industry cohorts. This is the fifth in our series of
biannual market reports, with the first published
at the end of 2021. The most recent data points
used in this research are based on surveys
conducted in November 2023.

3  ©2024 Mediaocean
Foreword by
Joanna O’Connell
We continue to weather uncertain storms as a global
community, but there is light. While geopolitical strife
and conflict continue to cast massive shadows, the
COVID-19 pandemic has waned and the economic picture
around the world shows signs of potential stabilization.

So, is cautious optimism warranted?

Certainly, we see confidence reflected in respondents’ media investment

expectations: they report plans to increase funding in a whole range
of digital media channels with CTV, digital display/video, social, and
search as standouts. Notably, this optimistic view is not new—the
last three years of survey data reflect a very similar pattern. Why?
For my part, I think several things are at play but fundamentally, to
work in this business is to BELIEVE in this business—advertisers and
agency professionals intrinsically understand the value of advertising
in shaping consumer perception and behavior. Perhaps this is also why
we see brand advertising given such weight in respondents’ minds:
now, nearly 50% of them note that investing in brand advertising
is critical (topped, importantly, only by performance media and
measurement/attribution), a number that’s also been on an upward
trajectory for several surveys in a row.

The overarching story I see reflected in these data points is one

worth belaboring a bit as we begin a new year. The media community
understands the intrinsic relationship among these things; if we
over-rotate to short-term performance-oriented activities, we
risk minimizing the longer-term benefits of investing in brand.

4  ©2024 Mediaocean
Foreword (cont.)

But effective measurement is fundamental to making strategic For my part, I’m approaching this new year with
investment decisions, in the day to day and over time. So as global optimism and curiosity—for the exploration we’ll
head- and tailwinds ebb and flow, long-term thinking is paramount. continue to do as an industry, for the new questions
(I say this also seeing in the data that media and creative remain far we’ll ask, and for the progress we’ll make to ensure
too disconnected—this is a gaping hole, strategically and tactically.) that advertising creates value for everyone it touches.

Speaking of optimism, if 2023 will be remembered as the year that

we all learned about this newfangled thing called “ChatGPT”, 2024
will surely be known as the one where the technology truly went Joanna O’Connell
mainstream. It took just one year (Nov 2022 to Nov 2023) for the tool Research Analyst
to grow from zero to more than 100MM active monthly users. And,
according to parent company OpenAI, a staggering 90%+ of Fortune
500 companies are building on its products. This very real shift from
theoretical to practical usage of Gen AI is evident in this latest round
of data: while the Metaverse was the topic du jour in 2022 (34% of
respondents called it out as the “most important consumer trend”),
in this latest survey that percentage is down to just 16%. Gen AI, by
contrast, captured 57% of respondents’ attention.

And while the use cases are near-infinite, respondents are moving
cautiously when it comes to business applications—data analysis and
market research top the list while other seemingly popular use cases
like copywriting and image generation, much less so. Given the myriad
open issues with Gen AI use—copyright questions, model opacity/
transparency concerns, potential bias issues and more—this feels
appropriate, at least today. In the absence of clarity, it’s incumbent upon
employers to help guide their employees—through clear governance on
when, how, and within what set of guidelines—they can most effectively
and responsibly harness Gen AI applications at work.

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 For each media channel below, do you expect to increase,
Macro ad spend decrease, or maintain your spend for the coming year?
trends reflect
industry optimism Increase Maintain Decrease

2022 2023 2024

In the dynamic world of advertising, understanding 56% 67% 69%

Social Platforms 38% 27% 28%
broader trends that dictate ad spend is crucial for
6% 6% 3%
informed decision-making. Our research indicates
62% 63% 65%
a wave of optimism sweeping across the industry Digital Display /
Video 34% 32% 30%
heading into 2024. 4% 5% 5%

60% 60% 56%

Marketers are gearing up for an active year ahead, Connected TV 35% 32% 36%
with a substantial majority expressing their intent 5% 8% 8%
to either maintain or increase their spending in every 48% 55% 55%
channel. The only channels with more respondents Search 48% 42% 40%
indicating they are decreasing investment compared to 4% 3% 5%

increasing are Print and TV. Clearly this is a commitment 38% 32% 34%
Retail media 59% 58% 58%
among the advertising community to a diverse mix of
3% 10% 8%
media channels, and we’ve seen a focus on omnichannel
25% 31% 32%
execution emerge over the past few years.
OOH / DOOH 66% 55% 58%
9% 14% 10%
While every channel holds its own significance, certain
24% 25% 24%
platforms are poised for exceptional growth in the coming Radio / Audio 61% 51% 54%
year. Unsurprisingly, social media, digital display/video, 15% 24% 22%
and connected TV (CTV) emerge as the frontrunners, 21% 12% 14%
seeing a continued surge in investment that mirrors National TV 66% 58% 59%
consumer engagement and time spent. 13% 30% 27%

20% 9% 11%
In 2024, 69% of survey-takers are planning to increase Local TV 65% 55% 56%
15% 36% 33%
social media spending, 65% for digital display/video,
and 56% for CTV in 2024. Meanwhile, the number of 10% 5% 7%
Print 56% 45% 49%
marketers maintaining their investments in these channels
34% 50% 44%
are 28%, 30%, and 36% respectively.
Source: Mediaocean 2024 Market Outlook Report
Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023

6  ©2024 Mediaocean
 Focus on AI
comes at expense What are the most important consumer
of Metaverse trends you’re watching for the coming year?
(Select all that apply)

In our October 2022 survey, when we first asked about November 2023 May 2023 October 2022

the most important consumer trends, 34% cited the

Metaverse. In April of 2023, we asked the same question 57%
Generative AI
and only 20% answered the Metaverse. As of our recent 59%
survey, the Metaverse is down to 16%. N/A

53%
Generative AI wasn’t an option in our 2022 survey as CTV / streaming 57%
it was not on anyone’s radar as a top consumer trend. 54%

But it was the most popular answer in our latest survey, 49%
with 57% of respondents calling it out. It’s clear that the TikTok / social video 48%
rise of ChatGPT and other apps built on large language 63%
models have caught the fancy of marketers and resource
40%
allocation has followed. In turn, the focus of companies E-commerce everywhere 35%
like Meta that were investing heavily in the Metaverse 47%
have shifted to AI.
30%
Consumer privacy 32%
While the survey metrics suggest a declining interest
35%
in the Metaverse, new innovations and use cases
abound. Mark Zuckerberg and Lex Fridman, for instance, 21%
recorded an entire podcast using photorealistic Kodak Gaming 26%

avatars, showcasing the creative potential of Metaverse 30%

technology. For that matter, the Meta Quest 2 remains 16%

a powerful platform for VR, while Apple’s Vision Pro Metaverse 20%
headset seamlessly blends the digital and physical realms. 34%

14%
As we move forward, let’s heed the lessons of our survey’s Political & advocacy trends 15%
journey—a tale of trends, shifts, and the enduring quest 15%
for consumer engagement. The metaverse may be down,
but it’s certainly not out. And, as for Gen AI, if 2023 was
the year it emerged, 2024 will be the year it breaks out. Source: Mediaocean 2024 Market Outlook Report
Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023

7  ©2024 Mediaocean
 Current Recognizing the challenges posed by the say/do gap, OpenAI
has taken a proactive step. Enter custom GPTs, a groundbreaking
applications of AI solution that allows users to tailor these powerful tools to their
focus on research specific use cases and needs. This strategic move aims to bridge

and analytics over the gap and, over time, eliminate the discrepancies between
what is promised and what is delivered in the realm of AI.
content generation
The journey to bridge the AI divide has begun, and
the destination holds the promise of more accurate,
In a strategic pivot, we adapted our approach to AI questioning,
context-aware, and creatively rich AI-generated content.
transitioning from potential use cases to the practical, day-to-
day applications that businesses and individuals are currently
embracing. The results are illuminating, showcasing a shift in
focus that mirrors the evolving landscape of AI utilization.

Our previous survey in April 2023 underscored the high

expectations surrounding AI’s potential in content generation,
with 59% and 39% of respondents eyeing copywriting and image
generation as key areas. However, reality paints a different
picture. In the current AI landscape, data analysis and market
research have surged to the forefront, claiming 39% and 35%
of the spotlight, while copywriting and image generation have
experienced a decline, landing at 26% and 16% respectively.

The intriguing shift in AI applications, particularly regarding

content generation, brings us face-to-face with the notorious
say/do gap. This gap exposes the disparities between the claims
made by developers or providers about the capabilities of
AI-generated content and the actual performance and impact
of these systems—at least in a marketing context.

AI, despite its prowess, struggles with understanding context and

tone, impacting the quality of generated content. Instances of
misinterpreted context, inappropriate tone, or cultural insensitivity
underscore the limitations for advertising. Further, the output
of AI-generated content also lacks the nuanced creativity and
emotional depth characteristic of human-created content.

8  ©2024 Mediaocean
 In which areas do you see the biggest How are you currently using
potential with Generative AI in marketing? Generative AI in your marketing?
(Select all that apply) (Select all that apply)

April 2023 November 2023

Copywriting 59% Data analysis 39%

Data analysis 53% Market research 35%

Market research 48% Copywriting 26%

Image generation 39% Image generation 16%

Customer service 37% SEO 14%

Software coding 33% Customer service 11%

SEO 30% Software coding 8%

Website development 28% Website development 8%

Other 2% Classification taxonomies 5%

Other 15%

Source: Mediaocean 2024 Market Outlook Report Source: Mediaocean 2024 Market Outlook Report
Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023 Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023

9  ©2024 Mediaocean
 Brand advertising
investment
continues to This signals the continued need for innovative solutions and
improvements in advanced analytics, AI-powered attribution
accelerate models, and omnichannel measurement solutions. These hold
the promise of providing advertisers with the insights needed
While performance-driven paid media continues to bridge the gap between brand impact and tangible results.
to hold its ground as the most critical investment,
a focus on brand advertising has steadily intensified
over the past three surveys, painting a compelling
narrative of shifting priorities.

In October 2022, our research showed that 36% of

participants considered brand advertising a critical area
of investment. By May 2023, this figure had risen to 42%,
and in our most recent survey, nearly 50% now view
brand advertising as an indispensable component of their
advertising capabilities and media investments.

This surge in the importance of brand advertising aligns

seamlessly with the positive outlook highlighted in
our earlier insight. As the global economy rebounds
post-COVID, brand advertising budgets are experiencing
a resurgence, reflecting a renewed confidence in the
market. Seasoned marketers understand that investing
in the brand isn’t just a short-term tactic; it’s a strategic
move for the long-term health of the business.

Across our surveys, participants consistently underscored

the pivotal importance of measurement, with 52%
expressing a belief that measurement and attribution
stand as critical investments for 2024. Moreover, 43% of
those surveyed are most concerned with the decline in
their ability to measure the effectiveness of campaigns
on tech platforms and the open web.

10 ©2024 Mediaocean
 Given current macroeconomic conditions, which What are your largest areas of concern in
advertising capabilities and media investments your media and marketing initiatives?
are most critical? (Select all that apply) (Select all that apply)

November 2023 May 2023 October 2022 November 2023 May 2023 October 2022

61% Decline in ability to measure 43%

Performance-drive paid media campaign effectiveness on tech 42%
59%
52% platforms and open web 32%

50%
Measurement &
52%
attribution capabilities
41% Lack of preparedness for 39%
cookieless future and other data
39%
47% deprecation relating to consumer
37%
Brand advertising 42% privacy and walled gardens
36%

29%
37%
Creative testing & analysis 28% Consumer ad 36%
22% avoidance / ad blindness
29%
28%
First-party data mastery 28%
26% Poor ability to manage 36%
24% reach & frequency across 36%
Automation CTV and digital channels 26%
24%
22%

23% 33%
Demand generation Loss of access to
23% 33%
third-party data
24% 32%

23%
Experimental /
innovation budgets 25% 25%
Talent retention /
21% 25%
access to expertise
29%
22%
Privacy 25%
21% 2%
Other 9%
13% 1%
Identity 13%
16%

Source: Mediaocean 2024 Market Outlook Report Source: Mediaocean 2024 Market Outlook Report
Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023 Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023

11 ©2024 Mediaocean
 The ability to activate campaigns consistently across various
The creative- devices, formats, and ecosystems is pivotal. A comprehensive
media gap Creative Ad Tech stack that seamlessly integrates with
current platforms and collaborates with partners across both
persists creative and media realms empowers teams to effectively
bridge the existing creative-media gap.

In our research, 89% of respondents said they did not

have fully synchronized media and creative processes
and technologies. This aligns with a separate September How well synchronized are your
2023 survey of 100 marketers in which 85% reported media and creative efforts?
a gap between creative and media execution.
Not at all: Our media and
Very well: We have fully creative processes are
This “creative-media” gap is caused by our industry synchronized media and creative totally separate.
over-indexing on media at the expense of creative, processes and technologies.
and its impact is enormous—especially in a world
where consumers respond to and reward customized
experiences. Solving this gap represents the largest 10%
11%
growth opportunity for brands.

Today’s creative-media gap manifests itself in three

distinct ways. First, siloed teams, process, and technology,
creating inefficiencies with escalating costs and slow go- So so: We have
some processes
to-market. Second, repetitive and irrelevant messaging, 39% that overlap, but
numbing consumers and reducing their responsiveness. there’s room for
improvement.
Third, the lack of creative intelligence, creating hurdles in
learning what content resonates.
40%

Addressing these gaps requires the implementation of

independent ad tech platforms specifically designed for Well: We have a
enhancing creative relevance and activation across formal approach
to media/creative
diverse digital marketing channels. Essential to this collaboration.
solution are tools dedicated to providing a unified,
omnichannel workflow supported by a consistent toolkit. Source: Mediaocean 2024 Market Outlook Report
Methodology: Survey of 1,000+ marketing professionals conducted through TechValidate in November, 2023

12 ©2024 Mediaocean
Conclusion
2024 is shaping up to be a year of innovation and creativity.

Despite macroeconomic headwinds holding over from 2023, optimism

pervades the advertising industry. Marketers are gearing up for an active year,
expressing their intent to maintain or increase spending in every channel.

Generative AI, particularly ChatGPT, has captured everyone’s attention,

leading to a shift in focus and resource allocation. 2024 promises to be the
year that AI moves from speculative use cases to practical, day-to-day
application—particularly in the areas of data analysis and market research.
Methodology
This survey was conducted via TechValidate in
While direct-response campaign performance remains a top priority for November 2023 and contains data from 1,085
marketers tasked with delivering tangible ROI, brand advertising is gaining respondents representing brands, agencies, media
momentum as companies take a longer-view approach to driving customer companies, measurement firms, tech platforms,
loyalty and lifetime value. and other marketing industry constituents.

From an operational standpoint, a prevalent gap between creative and

media execution persists, negatively impacting team workflow, messaging
relevance, and market intelligence. Solving this gap emerges as the largest
growth opportunity for brands in a year that will be marked by data
deprecation, antitrust regulation, and privacy protection. This sets the stage
for substantial progress, benefiting all stakeholders in the upcoming year.

13 ©2024 Mediaocean
About Mediaocean About Flashtalking
Mediaocean is powering the future of the advertising ecosystem Flashtalking unleashes the power of creative to make media
through technology solutions that empower brands and agencies work better. As the leading independent ad tech platform for
to deliver impactful omnichannel marketing experiences. With personalization and intelligence across marketing channels,
over $200 billion in annualized spend managed through its Flashtalking bridges the gap between creative and media.
software, Mediaocean uses AI and machine learning to control Flashtalking’s solutions operate at scale across CTV, Video,
media investments, optimize creative assets, and improve business Display, Social, Native, Audio, and Retail Media, and integrate with
outcomes, The company’s advertising infrastructure and ad tech existing technology stacks to optimize campaigns through DSPs,
tools are used by more than 100,000 people globally for everything DAMs, ad servers, verification providers, measurement tools,
from planning, buying, ad serving, and creative personalization and more. As part of Mediaocean, Flashtalking is tied into the ad
to campaign analysis, optimization, invoices, and payments. Visit industry’s core system of record for planning, buying, and billing.
www.mediaocean.com for more information. Visit www.flashtalking.com for more information.

14 ©2024 Mediaocean