2024: Confidence in metaverse declines, investment in online video to grow exponentially
By Zion Rufus
The digital marketing landscape in 2024 is projected to be characterized by a surge in investments in online video, social media, and mobile platforms with TikTok and YouTube emerging as the frontrunners, while X faces challenges, and the metaverse experiences a decline in confidence.
The allure of TikTok and YouTube as advertising platforms appears to be gaining momentum, reflecting a shift in audience engagement and preferences. As users flock to these dynamic video-sharing platforms, marketers are keen on capitalizing on the potential reach and impact offered by these channels.
Meanwhile, traditional channels like print, cinema, and TV, however, might experience either a stagnation or a decrease in spending, according to projections.
Aizehi Itua, Founder of Aimone creative agency believes that consumers, driven by a desire for value and a focus on essentials, are steering the marketing narrative toward authenticity and results.
Backed by latest insights from a WARC report which reveals that the continuous shift in consumer preferences has pinpointed TikTok and YouTube as major beneficiaries of increased marketing spend in 2024, Itua advised “Going into 2024, I think it is really important for brands to emphasize their value propositions, showcase tangible outcomes, and align with consumer values to maintain resonance in an era where discerning consumers prioritize substance over style.”
On the flip side, X (formerly Twitter) faces challenges due to recent controversies, leading 31% of marketers to anticipate a reduction in investments – the highest drop seen in the past three years.
Peter Adesanya, Deputy Group Head, Digital Strategy, The REDWOLF Company also attributes the expected increase in YouTube and TikTok marketing spend to the surge in views on generative AI tool-related videos.
“In 2023, videos related to generative Al tools amassed over 1.7 billion views on YouTube. To amplify this trend in 2024, numerous stakeholders will explore collaborating with YouTube to launch their Music Al Incubator and I believe this initiative will delve into experimental exploration, providing feedback on Al-driven musical tools and products.
The eventual aim is to expand creative options, like TikTok has done successfully,” he shared.
A noticeable change in confidence towards the metaverse is also evident according to the WARC report. While 47% of marketers foresaw an increase in metaverse investments in 2023, only a mere 11% hold the same expectation for the following year. This significant change signals a reevaluation of the metaverse’s current impact and its potential role in marketing strategies, causing marketers to approach this evolving landscape with caution.
Conversely, X will continue to grapple with a decline in marketer confidence owing to the platform’s turbulent journey that has cast shadows on its appeal, prompting a substantial number of marketers to reconsider their investment strategies.
This 31% reduction in expected spending on X signifies a notable shift away from this platform, suggesting a need for the platform to address concerns and rebuild trust among marketers.
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