- AI will grow to be permanently embedded across several areas of agency operations in 2024, in keeping with predictions shared by Forrester.
- One focus will be bespoke AI products trained on a client’s own creative intelligence and first-party data to create highly personalized campaigns. Low-cost AI content tools are expected to assist agencies increase revenue by attracting more business and result in the shrinking of remits for in-house shops.
- Growing use of AI can also be expected to present recent challenges for agencies. Concerns over AI misuse will result in a rise in agency reviews of 10% and digital agencies may disappear from the landscape entirely as all marketing becomes digital marketing.
“Predictions 2024: Agencies” analyzes what the agency landscape may appear to be in the coming yr, with the report putting a heavy emphasis on AI. As of 2023, 56% of B2C marketers already use generative AI in their efforts, in comparison with just 17% of in-house agencies. However, Forrester predicts AI will be used as an awesome cost saver in the months ahead as CMO budgets fail to cover what is required to execute an efficient marketing strategy. The rapid expansion of low-cost AI content will deepen the need for differentiation, resulting in an increased concentrate on creativity by the end of 2024.
AI technology has already shaken the industry, having been used for gimmicks and to extend efficiency in ways which can be raising questions on accuracy, brand safety and mental property. Sixty-one percent of AI decision makers indicated concern over privacy and data protection while 57% are concerned about output errors. The escalation of AI use in 2024 will only result in mounting uncertainty and the increased scrutiny is prone to drive recent business activity for agencies, in keeping with Forrester. Thirty-eight percent of B2C marketers already plan to review their media agency and 37% plan to review their creative agency in the next 12 months.
As generative AI spreads across agencies, the need for a digital-specific agency will likely disappear, per Forrester. In the months ahead, some could also be rolled up into larger integrated agencies or, they might be integrated into other digital services providers.
The report also predicts rising demand for PR agencies ahead of the election. Election promoting spending is predicted to hit $11.5 billion in 2024.
Read the full article here