The AdNews end of year Perspectives, looking back at 2024 and forward to next year.
John McNerney, Managing Director, Yahoo AUSEA
It’s been a year of much-needed reprioritisation across the industry. Tight budgets, stiff competition and a whole heap of disruption have forced businesses to restack their marketing priorities. For many, these changes were long overdue.
One of the most significant shifts has been the rise of privacy-first advertising. At the beginning of the year the focus was still very much on preparing for a definitive shift away from cookies - until that was scrapped in favour of a scheme to allow people to opt out. This can be seen as cookie deprecation by stealth, as we anticipate a large cohort of people will opt to cut the cookie chord.
This isn’t just a technical challenge; it’s driving an industry-wide transformation. Delivering personalised advertising is still crucial for results, but the ways in which we do this are being reimagined, hopefully for the better.
While these changes bring some uncertainty, they also encourage the adoption of new standards prioritising privacy and transparency. These have been in short supply across the advertising ecosystem for a long time, and the job for the whole industry is to bring consumers along for the ride and help them understand how these technologies actually benefit them.
These trends also help to explain the huge growth in Commerce (retail) media this past year. This booming channel has seen a lot of new entrants in Australia and disrupted traditional advertising strategies by offering brands new ways to connect with consumers.
But as it grows, so do the challenges. Managing reach and frequency, integrating commerce media with traditional campaigns and measuring success require advanced tools and insights.
It’s a complex puzzle. Yahoo’s mission is to empower advertisers with the right solutions in this space so we can help unlock commerce media’s full potential as a part of a broader media strategy.
Another emerging powerhouse channel is connected TV (CTV). Ad supported tiers from the global (Netflix, Amazon Prime) and local (Binge) streaming services have grown in popularity amid the cost of living crisis, and with HBO Max launching in Australia next year, we’re sure to see even more developments in this increasingly competitive space.
It’s creating a lot of new opportunities for advertisers to reach customers on the big screen in a more addressable and tailored way. Contextual targeting in particular is proving valuable in driving engagement and attention. CTV’s moment is here, and we’re just scratching the surface of what’s possible in this space.
Turning to the next 12 months there’s plenty to be optimistic about. The economic tide will eventually turn - it always does. When the time comes, the businesses that prepared and continued to invest during the leaner times will be the ones to thrive. That’s inevitable.
Success is going to come from simplifying and collaborating.
Simplification isn’t just a nice to have, it’s vital. If we’re going to succeed we need to make these channels easier to understand and buy, and that means empowering advertisers with the tools they need to succeed. At Yahoo,we believe that means continuing to invest in comprehensive AI-driven tools that help brands execute smarter strategies, faster.
Secondly, no brand, or platform, is an island. Success is going to have many parents, so it’s important to double down on connections. Whether it’s helping brands build deeper relationships with their audiences or working closely with industry partners, collaboration is the key to sustained growth. This also goes hand in hand with simplifying things - the whole industry needs to come together for a shared language and vision.
If there’s one thing 2024 (and the past few years generally) have taught us, it’s that tough times reveal what we’re made of. That’s why I’d encourage any business not to be daunted, but instead be inspired by what’s ahead, and use it as an opportunity to shore up strategies and teams.
By staying future-focused and adaptable we can all hit the ground running in what I believe shows all the signs of a year of recovery and growth.
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