Media Trends & Predictions 2024 highlights opportunities and challenges for the sector
The year 2023 was marked by many political and economic uncertainties, changes in consumer behavior and accelerated technological advances – which had a direct impact on the media sector. Aiming to generate insights and prepare the sector for next year, Kantar Ibope Media released the Media Trends & Predictions 2024 study.
At the heart of our mission is the ambition to meet the public and help companies drive growth. This study aims to support this objective by presenting a unified and comprehensive view of a media environment that is in full development, says John McCarthy, CMO Kantar Media.
Based on data and insights, the study points to numerous opportunities and challenges facing content and advertising ecosystems around the world.
Macroeconomics
The study points out that, despite a year defined by continued economic problems, advertising revenue growth is reasonably stable. GroupM believes that growth will continue at the same estimate made in December 2022, which was 5.9%. They describe the numbers as positive when inflation is not considered, but bad when we take into account the correction in the value of money.
In this uncertain economic scenario, media companies are seeking evolution. Previously, the idea of subscription- or ad-based video on demand (VOD) services was simple, but now platforms not only offer content, but also adapt it to meet the audience’s individual preferences, making everything more complex.
Meanwhile, broadcasters and networks, known for their long experience in advertising, may find it easier to incorporate and sell advertisements than those for whom advertising is the new specialty.
On the other hand, industry experts raise concerns about ad-supported subscription trends. Companies need to shape their offerings, from content creation to pricing and promotional tactics, to suit the distinct characteristics of each region’s landscape.
Therefore, a deeper knowledge of the public’s specific behaviors and preferences is necessary. There is no single formula for creating successful content in the streaming world.
Sustainability
After the pandemic and amid environmental and social crises around the world, brand activism has grown.
Brands like Dove in Brazil stand out by taking active roles in defending social causes. As our Target Group Index data reveals, the majority of Brazilians attach great importance to the fact that a company operates ethically and acts without commitment to combating social inequalities.
Technology
The year 2023 stood out for technological advancement, with the emergence of generative Artificial Intelligence (AI) as a highlight, thanks to the launches of ChatGPT and Bard.
Furthermore, there has been progress in the search for post-cookie solutions. With 2024 now the official replacement year for third-party tracking cookies, Privacy-Enhancing Technologies (PETs) have become a beacon of hope for the advertising world.
Still keeping an eye on sustainability, the media and advertising sectors have made progress towards improving sustainability. At the heart of this transformation was a combination of technology and environmentally conscious approaches.
The study highlights the work of Ad Net Zero, which has continued to promote the use of its carbon calculator, allowing advertisers to measure and reduce the carbon emissions of their campaigns.
There are also concerns: a recent Human Driven AI survey revealed that 63% of US marketers fear potential copyright issues with AI-generated content, and cases have emerged of artists suing generative AI platforms for using their work without permission.
For Kantar, 2024 could witness an ironic situation: an abundance of technological solutions, but a potential increase in ad waste. With countless technological advances at their fingertips, companies may struggle to identify the most effective tools for their operations.
CTV
Connected TV (CTV) has not lost its spotlight. As people increasingly rely on CTV for entertainment, companies find themselves with an additional source of device data to enrich their audience understanding at a granular level.
Media Trends & Predictions 2024 ends by warning that, despite the growing availability of data, many media companies are not making the most of it. This can occur for several reasons. Companies may face limitations in time, resources, lack of appropriate tools or necessary experience. Additionally, some companies may be reluctant to use data to better understand their audiences due to privacy and security concerns.