Data: AI reshaping US local advertising
November 22, 2024
Eighty per cent of digital ad professionals now utilise AI tools for media buying and campaign management, according to a report from Frequence, a specialist in advertising sales automation and workflow software. Recently acquired by Madhive, the independent ad platform purpose-built for local CTV, Frequence’s 2024 Local Advertising Sellers Index (LASI) also found that, despite the uptake in technology, 65 per cent of digital advertising professionals report facing moderate to extreme pressure to grow digital ad revenue by 20 per cent or more.
The 2024 LASI report surveyed 500 local-market advertising decision-makers in the US during Q3 2024 and follows a similar survey that Frequence fielded last year.
Among the findings, the 2024 report found:
● High Omnichannel Demands: Seventy-one percent of respondents reported that their clients value omnichannel campaigns, an increase from 69 per cent in 2023. Media professionals are tasked with balancing the demands of complex, multi-channel campaigns, often stretching the available tools and resources.
● Stable Budgets Amid Performance Pressures: Sixty-nine percent of respondents reported stable or increasing budgets. However, internal and external pressure to deliver high-performance outcomes remains high, with 83 per cent of respondents indicating moderate to extreme internal pressure to grow revenue.
● Expectations for Growth: Sixty-five per cent of respondents report facing moderate to extreme pressure to grow digital ad revenue by 20 per cent or more. This is a slight increase from last year, reflecting the growing expectations placed on ad professionals as companies look to capitalise on the expanding digital advertising market.
“Advertisers demand performance across channels, which means that sellers need robust automation and advanced tools more than ever before,” said Jim Wilson, President of Madhive. “This year’s findings underscore the ongoing pressure on media professionals to optimise campaigns with limited resources and emphasise the importance of technological advancements in sustaining growth.”
Other notable insights from the 2024 LASI report include the continued need for training in AI tools, particularly as advertising shifts toward digital video and CTV. Over 60 per cent of respondents expressed a need for additional metrics and advanced tracking tools to optimise digital video and CTV campaign performance, reflecting the rapid expansion of these advertising channels.
In addition to AI and omnichannel complexities, the report emphasises a growing skills gap as digital ad professionals strive to keep pace with rapid technological changes. Nearly three-quarters (73 per cent) of respondents indicated they feel they’re not fully keeping up with industry advancements, particularly in digital video and CTV advertising. Integrating advanced tracking and analytics into campaigns remains a top priority, especially as advertisers demand precise measurement and performance metrics across all channels.
“Frequence’s LASI findings highlight the urgent need for investment in both technology and training as the industry faces mounting performance expectations,” Wilson added. “By equipping professionals with the right tools and knowledge, we can not only improve operational efficiency but also unlock new growth opportunities in local advertising markets.”