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The annual 4A’s Look Ahead report outlines the industry trends that will impact agencies the most throughout the next year.
The latest version of the report, released today, homes in on the biggest threats facing agencies right now. In 2024, according to the report, agencies must make sense of complex and still-changing data privacy legislation; they’ll experience similar challenges when it comes to ESG reporting, given new state laws and pending changes to federal guidance; and, at the same time, agencies will grapple with AI integration, declining TV spend and succession planning.
Pitch processes will likely undergo further revisions this year, a boon for agencies fed up with the old, expensive review model. Plus, the 4A’s expects agencies will explore alternate compensation models that veer away from emphasizing full-time-employees.
4A’s president and CEO Marla Kaplowitz spoke with Adweek about the report and what the trade group is focused on in 2024.
More confusion over privacy laws
Limited federal privacy legislation and state-by-state privacy laws will continue to evolve and become more complex, according to the report. The 4A’s doesn’t expect federal privacy legislation to make tremendous progress this year, leaving privacy decisions up to state governments. This creates confusion for advertisers who must keep track of, and abide by, privacy laws in any geography they serve media.
“Not only are we going to continue to see data privacy state-by-state, but we also believe that from a federal regulatory standpoint, we see the FTC and Health and Human Services are taking steps to look at new rules around privacy,” Kaplowitz said.
Alongside the ANA, the 4A’s leads the Responsible Privacy in Advertising Initiative, which exists to help advertisers understand and become compliant with privacy laws.
Know your carbon footprint
As some did with privacy legislation, states are beginning to create their own ESG reporting and sustainability measures. In the absence of federal laws, California is now mandating Scope 1, 2 and 3 reporting. The 4A’s is now waiting on the SEC to issue an update on its Green Guides, which are now outdated at more than a decade old.
“In the same way we saw California trigger this focus on data privacy at the state level because the federal government had not stepped in, we’re starting to see this happen when it comes to emissions reporting,” said Kaplowitz. The 4A’s is now working with agencies to help them calculate their carbon footprint, in partnership with EMEA-based company 51 to Carbon Zero.
