Advertising sales and operations are rapidly evolving, driven by technological advancements and shifting consumer behaviors. This change presents both significant challenges and unprecedented opportunities.
With global ad spending projected to reach $1 trillion by 2025 (per GroupM’s This Year, Next Year report), the stakes are higher than ever. Digital channels are capturing an increasing share of this spend, with formats like Connected TV, social media, and programmatic display showing robust growth.
In this dynamic environment, inaction is not an option. Your competitors are leveraging advanced technologies and data-driven strategies to capture market share. However, as an established media company, you have unique strengths—loyal audiences, valuable content, and industry relationships—that, combined with innovative approaches, can position you as a leader in this new era.
The strategies we’ll explore are not theoretical—they’re practical, actionable approaches already delivering results for forward-thinking media companies. By embracing these strategies, you can unlock new revenue streams, optimize operations, and drive sustainable growth in the digital age. Do you need to drive all of them forward? Let’s be real, spreading your focus too broadly won’t result in success. But to compete – to gain share of ad spend – your organization needs to start playing the new game.
Are you ready to lead your company into the future of media advertising? Let’s take a look at the ten key trends and strategies that will shape your success.
1. Embrace Programmatic Advertising or Risk Obsolescence
Gone are the days of manual ad placements and negotiations. Programmatic advertising is now the cornerstone of efficient, targeted ad delivery.
Action steps:
Case in point: The New York Times saw a 20% year-over-year increase in programmatic revenue in 2023 by enhancing their programmatic infrastructure and first-party data offerings (NYT Q4 2023 Earnings Report).
And a “pro tip”: using solutions such as Operative’s STAQ offering, many leading media companies are proactively benchmarking their programmatic performance against the broader industry. STAQ provides them with a near real-time view into anonymized data from dozens of publishers, enabling quicker decision-making around pricing and sales targets.
2. Harness the Power of First-Party Data
With third-party cookies crumbling, your first-party data is your new competitive edge. It’s time to transform your audience insights into revenue.
Key actions:
Remember, in the new digital landscape, your data strategy is your business strategy. A modern Order Management System such as Operative’s AOS will collect, normalize, and activate your data, setting you up for success.
3. Turn Content into Commerce
The line between editorial and commercial is blurring. It’s time to make every piece of content a potential revenue stream.
Strategic moves:
NBCUniversal’s shoppable TV ads drove a 73% increase in purchase intent compared to traditional ads (NBCUniversal 2023 Advertising Impact Study). Are you leaving this kind of engagement and revenue on the table?
4. Conquer Connected TV (CTV)
CTV isn’t just another channel; it’s the present and future of television advertising, surpassing traditional broadcast and cable in viewing hours in June 2024. Ignore it at your peril.
Your CTV playbook:
The future of television is connected, powered by data.
5. Let AI Drive Your Ad Operations
AI and machine learning aren’t just buzzwords; they’re the key to unlocking unprecedented efficiency and performance in your ad operations.
Implementation strategy:
The Washington Post’s Arc XP platform, powered by AI, increased ad viewability by 40% and click-through rates by 30% (Washington Post 2023 Technology Impact Report).
Today, large media companies are beginning to move towards Operative’s Adeline AI, delivering on the promise of optimization, speed, and new revenue. We’ve been building out our AI toolset while crafting an AI playbook — a valuable guidebook for any media company in their AI journey. What could similar AI implementation do for your bottom line?
If AI is part of your 2024/2025 strategy, be sure to catch up on our series of articles on the topic:
6. Navigate the Privacy Paradox
In an era of increasing privacy regulation, your ability to deliver personalized ads while respecting user privacy will define your success.
Your privacy roadmap:
The companies that master privacy-compliant personalization will win the trust—and wallets—of consumers.
7. Capitalize on Retail Media Networks
Retail media networks offer a direct line to consumers at the point of purchase. It’s time to claim your share of this booming market.
Your retail media strategy:
Example: Amazon’s advertising revenue grew by 23% to $41.5 billion in 2023, largely driven by its retail media offerings (Amazon Annual Financial Results, 2023).
8. Pioneer New Ad Formats
Banner blindness is real. It’s time to captivate your audience with innovative, immersive ad experiences.
Your innovation agenda:
The most effective ads don’t interrupt the user experience—they enhance it. To win in the new era, it’s critically important for your team to consider how you will enhance your audience’s experience.
9. Prioritize Brand Safety and Fraud Prevention
In an era of fake news and sophisticated ad fraud, protecting your advertisers’ brands—and your own—is paramount.
Your brand safety action plan:
Procter & Gamble cut $200 million from its digital ad spend in 2023 due to brand safety concerns (P&G Annual Marketing Report, 2023). Every advertising dollar counts. Don’t lose advertisers over similar issues.
10. Embrace Performance Marketing
In today’s economic climate, every ad dollar must prove its worth. It’s time to shift from vanity metrics to real business outcomes.
Your performance marketing blueprint:
Remember: In the boardroom, performance talks. Everything else walks.
The Path Forward: Your Call to Action
The media advertising landscape is evolving at breakneck speed. The trends we’ve discussed aren’t distant possibilities—they’re today’s realities. Your company’s future hinges on how swiftly and effectively you adapt.
Here’s your immediate action plan:
The future of media advertising belongs to the bold, the innovative, and the adaptable. Will your company lead this new era or be left behind? Your next move could redefine your company’s future. What will it be?
