3 Key Trends That Shaped the Advertising Industry in 2024

The rise of CTV, cross-media measurement, first-party data, and immersive formats have been the standout trends in the advertising sector.

In recent years, the changes within the digital advertising sector have been remarkable. Technological advancementshave opened up a range of opportunities for brands to enhance their effectiveness and efficiency. At the same time, they have introduced numerous challenges for advertisers, challenges that have been front and center in 2024 and will continue into the coming year.

This rapidly evolving digital landscape demands agility from industry players to adapt to a complex yet thriving environment. Globally, according to a WARC report, digital advertising investment is expected to grow by 10.7% this year. In Spain, advertising investment grew by 4.2% in the first nine months of 2024, with digital channels (web +8.2% and social media +8.4%) leading the growth compared to the previous year, according to InfoAdex data.

The CTV Revolution: Growth and New Challenges

Connected TV (CTV) is now a reality in Spain. With a penetration increase of 5 percentage points in 2024, according to IAB, it has emerged as one of the fastest-growing advertising channels. Its ability to blend linear and digital televisionprovides advertisers with significant advantages, such as greater brand recall and increased visibility, all while maintaining a high-quality user experience.

This trend mirrors global developments, with the CTV market expected to continue strong growth in 2024. The market size is forecast to reach $9.28 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 13.2%, reaching $17.25 billion by 2029.

"Connected TV (CTV) has established itself as a key strategic solution for advertisers, enabling them to reach their audiences more personally and effectively through the hybridization of linear and digital TV. This integration offers brands a more efficient way to communicate with their audiences, ensuring greater visibility without being intrusive. Additionally, cross-media measurement has been critical for optimizing the effectiveness of these campaigns. It allows advertisers to measure the incremental reach not just of CTV but of other digital channels as well. This significantly improves communication efficiency and impact distribution, maximizing return on investment,” says Fernando García, Global CEO of EXTE.

Advanced Segmentation: The Era of Privacy and Contextual Data

2024 began with what seemed to be a historic move in the digital world: the elimination of third-party cookies. Although Google ultimately reversed its decision, this potential shift prompted the industry to adapt to a new environment where user experience and audience loyalty became more critical than ever.

“Although the paradigm shift was initially driven by Google, the future is shaped by users. The demand for greater privacy, personalization, and quality interactions with brands highlights the need to adopt strategies that prioritize contextual tools to enhance communication relevance, the effective use of AI and automation for more precise segmentations, and above all, the focus on building solid, trust-based relationships with the audience,” explains Fernando García, Global CEO of EXTE.

Advertising Innovation: Embracing Immersive and Interactive Formats

Amid advertising saturation, technology has not only allowed for more precise consumer targeting but also more creative engagement. The development of experiences with technologies like augmented reality (AR), interactive advertising, and gamification enhances user receptivity to brand messages. By blending advertising with entertainment, these innovations add value through enriched experiences.

In 2024, the global augmented reality market is expected to reach $5.4 billion. Looking ahead, it is forecasted to grow at an annual rate of 9.25%, reaching $8 billion by 2029, according to Statista.

“These figures highlight the vast potential of technology in creative applications and the need to focus on innovation to create deeper connections with consumers, driving long-term conversions,” says Fernando García, Global CEO of EXTE.

2024 has brought equal parts opportunities and challenges to the advertising industry, which will undoubtedly continue to evolve rapidly in the coming year. The task now is to face an uncertain but promising future, guided by the essential triad in today’s complex digital landscape: technology, creativity, and data.