The AdNews end of year Perspectives, looking back at 2023 and forward to next year.
Prepare to explore the forefront of digital marketing in 2024, where emerging trends promise to redefine industry strategies. We will delve into the intricacies of profit-based bidding, the strategic potential of AI-driven approaches, and the pivotal roles played by Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA).
These innovations are re-shaping the digital marketing landscape, offering businesses the tools they need to excel in this ever-evolving environment.
So let’s cut to it and dive straight in, as we unveil the trends that will shape the year ahead...
The Future Is Profit Based Bidding
A revolutionary trend gaining traction is the integration of profit tracking; providing a more nuanced and precise perspective on campaign performance and the natural evolution of margin-based bidding utilising product margins. This results in retailers earning higher profits while simultaneously maintaining or growing revenue over time. Essentially; digital marketing nirvana where profit AND revenue grow simultaneously.
Enter profit tracking, representing a natural evolution in the trajectory of revenue and ROAS tracking. Shifting the focus from revenue and ROAS to actual profit empowers advertisers with a comprehensive understanding of campaign success. This approach enables retailers to make strategic decisions directly impacting the bottom line. And what every marketer wants to take to the boardroom!
We also strongly recommend you customise your product feed with margin brackets strategy for maximum impact utilising feed management such as Feeditor. Take your tracking to the next level with profit-based website tagging and the introduction of Profit-Based Conversion Goals (PROAS - {Profitable Return On Ad Spend). Gain valuable insights with detailed profit reporting at both the product level and the overall business level. Shift your bidding strategy to prioritise profit over revenue, ushering in a new era of strategic and profitable marketing and advertising management.
Embracing profit tracking as the next frontier in PPC optimization promises a more accurate, strategic, and profitable approach for retailers.
Making AI Work For You:
Artificial Intelligence (AI) is revolutionising the retail and marketing sectors, not by replacing human creativity and strategy but by augmenting it. AI serves as a complementary tool, enhancing efficiency and allowing professionals to focus on higher-value tasks, and we’ve listed 3 of those areas below:
In strategy development, AI algorithms can analyse vast amounts of data, identifying trends and patterns that might be invisible to the human eye. This data-driven insight helps strategists in making informed decisions, tailoring their approach to meet the ever-evolving market demands.
Creatively, AI is transforming how content is generated and optimised. AI tools can suggest content themes, generate basic layouts, and even propose colour schemes, streamlining the creative process. This doesn’t replace human creativity but rather enhances it, automating the routine parts of creative work and allowing designers and marketers to focus on more nuanced and innovative aspects.
Campaign management is another area where AI is making a significant impact. By automating the more mundane tasks like scheduling, monitoring, and reporting, AI allows marketers to focus on campaign strategy and creative content.
This collaboration between human and machine is creating more dynamic, responsive, and effective marketing and retail strategies, leading to growth and innovation in the sector.
Navigating the Marketing Landscape in 2024: The Role of MMM and MTA Solutions
In the dynamic realm of digital marketing, the impending deprecation of third-party cookies by industry giants like Google and Apple has sparked a need for innovative solutions. Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA) are poised to play pivotal roles in overcoming these challenges.
MMM is anticipated to be a linchpin in mitigating the consequences of third-party cookie deprecation. By assessing the incremental value that each channel and every dollar spent brings to the bottom line, MMM offers a holistic view of marketing performance, allowing businesses to re-allocate budgets effectively.
The impact of losing third-party cookies on Multi-Touch Attribution is substantial. However, MTA solutions are not merely anticipated to evolve; a new approach, rooted in the utilisation of first-party data and advanced analytics, has already emerged. This evolution underscores the adaptability of MTA solutions, ensuring marketers can navigate the evolving terrain with confidence.
Both MMM and MTA contribute to a comprehensive analysis of marketing performance, transcending the confines of the digital space. By gaining insights into the complete customer experience, businesses can fine-tune their strategies for maximum effectiveness.
At Adcore, we recognize the importance of advanced measurement solutions. That's why we are pleased to offer both MMM and MTA as part of our comprehensive suite, empowering businesses to thrive in the evolving digital marketing landscape.
In Conclusion
To conclude, the year 2024 heralds a digital marketing inflection point that will be defined by innovation and strategic evolution. Profit-based bidding, guided by a focus on actual profit, revolutionises campaign performance metrics. AI will continue to augment human expertise, enhancing data analysis and creative processes. Meanwhile, MMM and MTA solutions offer indispensable insights in the face of evolving privacy regulations.
Together, these trends empower businesses to navigate and prosper within the incredibly dynamic digital marketing landscape.
And let’s face it; right now in the current macro environment, all sophisticated digital marketers are looking for an added advantage to reduce any excess spend, and further fuel efficiencies.
Marlon Thain is Digital Marketing Team Leader at Adore Australia and Natalie Teoh is Data Specialist at Adcore Australia
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