2024 is set to be a pivotal year in the media industry due to significant events such as a Presidential election and the Olympics. This is expected to drive ad spending to unprecedented levels.
Due to the Hollywood strikes and a related absence of new content, audiences are liable to shift towards digital streaming catalogs from services like Netflix and Hulu. This will likely cause advertisers to reallocate budgets to streamers to capture audience share.
Media agencies are leveraging technology to address industry trends, overcome challenges and develop operating efficiencies amid these headline-making events. Below are some of the ways we predict tech will impact the media industry this year.
Media companies are focused on innovating with interactive content that uses emerging technologies such as virtual reality (VR) and the Metaverse. They aim to create immersive and engaging experiences for their audiences, exploring the potential of these advancements in shaping media consumption.
Data collection and analysis are increasingly important for media companies, as it helps them understand and predict audience behavior, measure marketing effectiveness and optimize content delivery. Additionally, media companies can use data to curate bespoke programming for targeted audiences.
As viewers abandon traditional broadcast television for digital streaming platforms, advertisers are following suit. Digital advertising is expected to account for 77.6% of all ad spending in 2024, up from 75.1% in 2022.
More frequently, individuals are using mobile devices to engage with digital media. Younger viewers are turning to media for more than entertainment – they cite community, escape and emotional support as reasons why they tune in. Accessing media on mobile platforms lets viewers connect with content on their own terms, despite time or place.
Artificial Intelligence (AI)
The media industry is increasingly leveraging AI and machine learning to enhance content creation, distribution and personalization. These technologies help optimize recommendations, analyze audience behavior and automate various tasks, ultimately improving efficiency and delivering tailored experiences to consumers.
As more finance teams adopt AI-powered tools, they will improve efficiency and accuracy. Access to advanced data analytics will help pinpoint areas for improvement and inform organizational decision-making. Employees will have better visibility and access to systems whether they’re working remotely or in the office.
Real-time payment methods will also enhance financial efficiency by enabling immediate transactions, reducing settlement times and enhancing cash flow management.
Finance leaders are adapting to a digitized landscape by investing in technology tools to enhance their strategic function within the organization. AvidXchange conducted a survey of 500 finance executives to learn more about their priorities heading into 2024. We found that AI, data analytics, real-time payment platforms and technology that enables more effective remote work are top-of-mind for these leaders.
To read the complete report, which includes trends impacting the media industry and how finance leaders are preparing for next year, download our free whitepaper, “Media Forecast 2024.”