Robert Gibbs is CEO of Nomology.
Following recent quarterly earnings calls, media giants expressed his caution and reserve in a complex economic and geopolitical context. This is not surprising given current global tensions and conflicts, and modest expectations for economic growth. The upcoming US presidential election, with its promises of polarized advertising targeting, further complicates the situation.
Overall, I see a picture emerging of a complex and competitive reality that shapes marketing strategies and approaches to connecting with audiences throughout the rest of the year. Brands and agencies have their work cut out for them to cut through the noise in a way that is relevant and brand-safe. Here are some trends that I believe will shape the marketing space, along with tips for navigating them.
Consolidation in the retail media market
Retail media networks have proliferated in recent years. Nearly every major retailer has launched theirs, from high-profile models from Amazon and Target to niche platforms like Home Depot’s Retail Media+. This diversification, while providing more options for advertisers, has created overabundance as well as fragmentation.
The scenario calls for consolidation and streamlining of processes. This could happen under current leaders like Criteo, or the time could be right for a player like The Trade Desk, which powers many of the major demand-side platforms in retail media, to offer its own supply-side platform offering an interface unified platform for advertisers to access a wide range of retail networks.
Such consolidation would not only bring efficiency, but also improve the accuracy of contextual advertising, making it easier for brands to reach their target audiences at the right time in their increasingly short shopping journey. A practical example of this could be to start leveraging more top-of-funnel contextual tactics in symphony with your bottom-of-funnel conversion and retargeting. You can also anticipate possible supply consolidation in retail media by forging deeper partnerships with the retail companies that matter most to you, whether through measurement, research, or simply ‘a good investment in old-fashioned media.
Strategic advertising placements during political cycles
Political election cycles always present a challenge for advertisers, and that challenge is tripled during U.S. presidential election years. The media landscape will be saturated with political content, making it more difficult to run non-political ads.
As in previous election years, traditional channels like linear television will be inundated with political advertising, increasing costs and reducing visibility for other advertisers. For larger advertisers, avoiding news and using higher CPMs can be effective. Now is the time to seek out new audiences, even as competitors pay more to stick with their old strategies. Think of it like exploring different stocks in the market: When everyone is investing in a stock, driving its price up, look for other opportunities in the hot sector where the dollars are less concentrated.
You may find it more useful to look to other media platforms and channels, where you can leverage contextual advertising to reach audiences in non-political environments. This approach is not only about avoiding high-traffic, high-cost areas, but also about finding those unique spaces where your target audience’s attention is not divided. It’s about deliberately choosing environments that align with your brand values and messaging, to ensure ads resonate more effectively with your audience.
A data-driven approach to advertising spend and effectiveness
Media mix modeling, an analysis technique that measures the impact of marketing efforts on sales, is equal parts art and science. To date, its application ranges from the complex mathematical processes of large brands across multiple channels to the instinctive intuition of an industry veteran when managing small brands.
But as the expression goes, data doesn’t lie. Data-driven approaches to ad spend and effectiveness will likely only grow in intelligence and practical application, improving consistency and reliability.
One of the natural results of the data-driven approach is that we see advertisers moving toward trusted platforms like YouTube and away from less proven channels. like snapchat or niche editorial sites.
This trend highlights a broader shift in the digital landscape: if a site doesn’t inherently align with the advertiser’s goals, it will likely struggle to make money. Platforms need to think more broadly about monetization strategies in an increasingly demanding market.
In the future, brands will likely adopt advanced analytics and machine learning to refine their advertising strategies. This means going beyond simple clicks and impressions to achieve a deeper understanding of consumer behavior, effective audience segmentation, and accurate prediction of future trends. Tools like A/B testing, segmentation analysis, and predictive analytics will be essential. This nuanced, data-driven decision-making will allow you to allocate your budgets more strategically, target your audiences more precisely, and achieve better returns on investment.
If you haven’t already, prepare for this trend by applying AI, including machine learning, to every aspect of your business. data-driven advertising stack, from segmentation to advanced predictive contextual and behavioral targeting. Turn to trusted partners such as Salesforce, VidMob or Resonate can accelerate your journey to integrating AI decision-making into your marketing and advertising.
The digital advertising landscape is constantly evolving and transforming. Brands and advertisers that quickly adapt to these emerging trends – from market consolidation and strategic advertising placement in a politically charged environment to a robust, data-centric approach to advertising – will lead during a year marked by efficiency, effectiveness and increased impact.
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