Global Ad Spend Growth Expected to Decelerate in 2024
Image sourced from Shutterstock
Despite a slowdown in inflation, analysts expect global advertising expenditure to increase at a reduced rate next year compared to initial forecasts. In November, the marketing data firm WARC anticipated an 8.2% rise in advertising spending in 2024, following a modest 4.4% increase in 2023. However, newer reports from Dentsu and GroupM indicate more moderate growth rates of 4.6% and 5.3%.
If GroupM's 5.3% growth prediction holds, spending will reach $935.9 billion, excluding U.S. political advertising. The Dentsu Global Ad Spend forecasts that eliminating third-party cookies will substantially impact digital advertising targeting and measurement. The forecast anticipates a $33 billion growth, and the global advertising market will reach $752.8 billion in the following year due to significant events such as the U.S. presidential election, the Paris Olympics, and UEFA's European championships in Germany.
Many industry professionals gave up on the idea of an ad recession, but is this slow growth rate a cause for concern? Only 2024 can tell us.
Apple Tightens Reins on Privacy Manifests
In 2024, Apple will require app publishers to explicitly state reasons for using SDKs that could impact a user's privacy. "Starting in spring 2024," the tech giant noted, "in order to upload your new app or app update to App Store Connect, you’ll be required to include an approved reason in the app’s privacy manifest which accurately reflects how your app uses the API." Reporting on this news, PocketGamer.biz explains that Apple aims to work through any loopholes in popular SDKs that can impact users' privacy unknowingly. Apple has also warned that developers will ultimately be responsible for privacy breaches.
As part of this announcement, Apple also released a list of commonly used third-party SDKs mandated to publish Privacy Manifest files. Eric Seufret of MobileDevMemo pointed out on X that Mobile Marketing Partners were suspiciously excluded from this list. "The Required Reasons APIs and 'tracking domains' feature already limit the collection and transmission of fingerprinting parameters. And most MMPs might need to publish Privacy Manifests under current guidelines, anyway," he explained. "Apple doesn’t view IP-based fingerprinting as a significant privacy vulnerability. Having obstructed access to most of the relevant parameters for fingerprinting, Apple may view IP address-based fingerprinting as a tolerable privacy vulnerability."
Either way, next year we can expect more developments when it comes to what Apple requires from publishers to keep thinking privacy-first to make sure their apps don't get ousted from the App Store.
Ai Disclosure Is a Must for Readers, but It's Also Full of Risk
According to new research, users want full disclosure when publications use AI to generate content such as text or images. At the same time, those disclosures weaken their trust in the publishers that use them. Deploying a "novel survey experiment," researchers Benjamin Toff, University of Minnesota, and Felix M. Simon, University of Oxford, found that audiences deem AI-generated news less trustworthy, especially among those who generally have a higher level of trust in the media and knowledge about journalism.
"As news organizations increasingly look toward adopting AI technologies in their newsrooms, our results hold implications for how disclosure about these techniques may contribute to or further undermine audience confidence in the institution of journalism at a time in which its standing with the public is especially tenuous," the report warns. AI is changing the online publishing sector, often in ways we don't fully understand.
MediaMath Rebuilds Its Bones After Surprising Resurrection
Infillion acquired MediaMath in a bankruptcy auction for $22 million, marking a turnaround since its Chapter 11 filing and fall from a nearly $1 billion valuation. Infillion's CEO, Rob Emrich, wants to reshape perceptions of MediaMath beyond its recent setback, "If MediaMath was Will Smith — he had a whole acting career before he slapped Chris Rock in the face."
Emrich plans to relaunch MediaMath's demand-side and data management platforms, merging them with existing assets like Gimbal and TrueX. In addition, Emrich has rehired 40 ex-MediaMath employees. Infillion has made significant progress, securing deals with "Multiple Fortune 100 brands" and two agency-holding companies beyond the "big six" to trial MediaMath's new technology.
This isn't just a facelift but a full-body restoration. Publishers scrambled after they thought the DSP's former $100 million debt would fall onto them, but Infillion gave MediaMath a new set of wings. Sequential liability who?
Programmatic Sales Is Like...
Programmatic sales
The Guys From Taking Inventory Talk Social Commerce
James Borow and Daniel Druger host the Taking Inventory podcast where they talk all things commerce media and social commerce. In this episode, they join Marketecture to talk about Snap, X, open web, and everything else.
Like this article? You can get more stories with similar insight right in your inbox when you sign up for our weekly eletter.
Please visit this page to reset your account and continue browsing our exclusive content. You'll only need to do this the first time you sign into the new AdMonsters.com website. We apologize for any inconvenience, your privacy and your membership are important to us.
New Users: Become a member
Get access to exclusive content, event perks, and discounts.
