Digital Digest

Marketing Intelligence Weekly

Weekly updates on the digital marketing news you need to know, including data reform, AI, cookie deprecation and platform updates.

Programmatic Ad Spending Forecast H1 2024
Marketing by numbers

Programmatic Ad Spending Forecast H1 2024

  • Cookie depreciation has started. Now what? Insider Intelligence has released the H1 Programmatic Ad Spending forecast. Paul read it so you don’t have to. Here’s the outlook.
  • What you need to know: CMOs must strategically embrace programmatic advertising, prioritising first-party data and balancing investments between mobile, CTV, and diverse ad environments to navigate the cookieless future effectively.
  • Programmatic Ad Spending Dominance: Programmatic display ad spending is set to grow three times faster than non-programmatic in 2024, with programmatic capturing over 90% of display ad dollars (US data). This highlights the critical role of automation in digital advertising and underscores the need for advertisers to prioritise programmatic strategies.
  • Impact of Cookie Deprecation: Despite Google's gradual phase-out of third-party cookies in Chrome, programmatic spending dynamics remain strong. Advertisers are pivoting towards first-party data and more secure, private ecosystems, reducing reliance on open exchanges. This shift necessitates a stronger focus on data strategy and privacy-compliant practices.
  • Mobile Continues to Lead: Mobile retains its dominant position in programmatic ad spending, commanding around 70% market share. The resilience of mobile ad spending, despite privacy changes like Apple's ATT, indicates the ongoing importance of mobile-focused advertising strategies.
  • Rise of Programmatic CTV: Programmatic spending on Connected TV (CTV) has surpassed desktop/laptop, reflecting changing consumer media consumption patterns. This trend points to the increasing importance of including CTV in programmatic advertising portfolios.
  • Open Exchange Decline: The decline in popularity of open exchanges in favour of private marketplaces and programmatic direct transactions suggests a move towards more controlled, quality-focused ad buying environments. Advertisers should consider streamlining their supply chain to enhance efficiency and transparency.
  • Walled Gardens vs. Open Web: While walled gardens still capture a significant portion of programmatic ad spending, the open web is holding its ground, even as cookie deprecation and generative AI pose challenges. This balance indicates the necessity for a diversified digital advertising approach that leverages both walled gardens and open web opportunities.
  • Strategic Adjustments for Cookieless Future: The industry is adapting to a future without third-party cookies through investments in first-party data and cookieless identity solutions. Businesses must stay informed about developments in privacy-centric advertising technologies and prepare for adjustments in targeting and measurement strategies.
  • Future Programmatic Trends: Expectations for programmatic advertising include increased integration into upfront commitments, especially with CTV's growth, and a temporary shift away from the open exchange by smaller advertisers. These trends highlight the need for flexibility in ad spending and the strategic allocation of advertising budgets towards areas with the most significant growth potential.
  • We are not able to publish this report on our website. If you want the full report, contact us and we can share it with you.
OpenAI Announces Sora
AI in digital

OpenAI Announces Sora

  • OpenAI has announced Sora, its AI text-to-video model.
  • Today, Sora is only available to red teamers (or testers) to test the model for harms and risks before opening the model more widely.
  • While there are other video-generating models out there, none come close to the kind of realistic video Sora allegedly creates.
  • Users can generate video up to 1-minute long incorporating multiple scenes and characters.
  • Read more
ChatGPT Now Has Personal Memory
AI in digital

ChatGPT Now Has Personal Memory

  • ChatGPT now has personal memory, revolutionising how the AI retains information from your chats.
  • ChatGPT can now recall preferences and specifics to make interactions smoother and more personalised.
  • The feature is set for a gradual introduction, starting with a select group of users, and promises to enhance the experience significantly by remembering key conversation points and streamlining tasks.
  • It will also roll-out to custom GPTs, allowing agents like a story generator to remember your favourite genre.
  • The memory functionality allows users to decide what ChatGPT remembers or forgets, ensuring conversations align with your privacy and convenience preferences.
  • Read more
Google ‘cannot proceed with third-party cookie deprecation’
Cookies Platforms

Google ‘cannot proceed with third-party cookie deprecation’

  • Google cannot proceed with third-party cookie deprecation until it resolves concerns raised by the UK’s Competition and Markets Authority (CMA)
  • If Google fails to address the CMA's concerns, the timeline for third-party cookie deprecation in Chrome could be postponed, allowing brands more time to explore alternatives.
  • Google's Privacy Sandbox program is designed to provide targeted ad delivery options while safeguarding user privacy. However, the CMA's report raises questions about the fairness and effectiveness of this approach.
  • The CMA and Google are working together to address these concerns, with progress updates scheduled for quarterly reporting.
  • There are many complexities and regulatory challenges associated with Google's efforts to transition away from third-party cookies and implement alternative tracking mechanisms. But Google is confident the industry can make the transition in 2024.
  • Read more
Google Removes Cache Link
Platforms

Google Removes Cache Link

  • Google no longer links to cached versions of pages in the search results.
  • While the cache operator still works, Google confirmed it too will be retired soon.
  • As one of the oldest Google features, the cache link was intended to offer alternative access to slowly loading pages.
  • Over the years, however, the ability to see a Google-cached version of the page plus the last date it’s been cached proved to be an extremely useful way for SEO experts to troubleshoot issues with websites.
  • With the feature completely gone, the only way to interact with Google cache will be via Google Search Console.
  • Read more
A Bold Statement on the Future of Automation
AI in digital Platforms

A Bold Statement on the Future of Automation

  • Vision for the Future: Publicis Groupe envisions all employees as data analysts and engineers, using AI to boost client growth.
  • Evidence of Change: Workato's 2024 report provides empirical evidence supporting this vision, indicating that non-IT teams are now initiating a significant portion of automated processes (44%)
  • Expertise Beyond Expectations: Despite initial scepticism, non-IT teams demonstrate proficiency in automating simple tasks and handling complex processes, showcasing their evolving expertise and adaptability.
  • Empowerment through AI: Generative AI empowers non-IT teams further, driving growth in automation and technological innovation within organizations.
  • What the Future Holds: While not all marketers will become data analysts, the shift towards business-led automation and self-service analytics will be more prevalent in our daily jobs.
  • Read more
Navigating the flood of spam in Google Search: Why expert SEO is more crucial than ever
Platforms

Navigating the flood of spam in Google Search: Why expert SEO is more crucial than ever

  • Study on Google Search Quality: Researchers found significant SEO spam in Google's product review queries, indicating a challenge in maintaining search result quality.
  • Ongoing Battle Against SEO Spam: Search engines struggle to permanently remove SEO spam, showing only temporary improvements when spam is taken down.
  • Google's Stance: Google asserts that the study's focus is too narrow and doesn't represent the overall effectiveness of their search engine.
  • Increasing Prevalence of Spam: Other reports confirm a rise in SEO spam on Google, including a major spam attack in December 2023.
  • Paul's Takeaway: This underscores the growing importance of having skilled SEO professionals in your marketing team to navigate the evolving challenges in search engine visibility.
  • Read more
How AI is leveraging the digital transformation effort
AI in digital

How AI is leveraging the digital transformation effort

  • The gap in digital/AI maturity between leaders and laggards has widened by 60% in the past 3 years.
  • Leaders have focused on building a broad set of hard-to-copy capabilities across strategy, organisation, technology, data, and adoption.
  • AI performance sits on the back of unified strategy to build a moat for the business
  • The effort in AI sits on top of the digital transformation efforts these companies have undertaken
  • The need to have a unified approach to the marketing tech stack and upskilling the team becomes critical to keep up with the market
  • Laggards can catch up by committing to rewiring their companies, but the longer they wait, the harder it becomes.
  • Read more
Changes in Australian holiday period spending habits
Marketing by numbers

Changes in Australian holiday period spending habits

  • Australians are increasingly participating in BFCM shopping at the detriment of Christmas shopping.
  • This is due to the combination of perceived value from sales and continued market saturation of the period alongside economic uncertainty pushing consumers to tick off their Christmas lists earlier to not miss out.
  • E-commerce businesses should plan early to focus on this period in 2024 and expect lower December numbers for end-of-year targets.
  • Long term issues include an increasingly competitive marketing and sales race to the bottom, driving up marketing expenses and reducing profits to capitalise on the period's incremental value.
  • Read more
New Gmail sender requirements come into effect
Platforms

New Gmail sender requirements come into effect

  • Google’s new requirements for bulk email senders come into effect today (1 Feb 2024)
  • Greater focus on email validation for bulk senders (those who send more than 5000 emails to gmail accounts per day
  • By today bulk senders will need to comply with the new requirements by Google to not end up in spam:
  • Authenticate your email, enable easy unsubscription (1-click unsubscribe), and send only wanted emails to stay under Google’s spam rate threshold
  • Read more
Google indicates SGE is on a longer timescale
AI in digital Platforms

Google indicates SGE is on a longer timescale

  • There is chatter in the SEO community that Google won't be launching SGE soon, based on the wording in a recently published article by Google. ”We'll continue to offer SGE in Labs as a testbed for bold new ideas”.
  • The same article also introduced two new ways to search. 1) by circling anything on Android phones and, 2) AI-driven updates to Multisearch (which is a Google feature that lets you search images & text at the same time).
  • It's clear that search will evolve significantly in the next year, but it's the belief of many that SGE won't replace what we have currently.
  • Read more

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