2024 trend watch: Platform partnerships will shift the ad spending landscape

Nascent partnerships from 2023 will start packing a punch in 2024. Companies without an overwhelming market advantage will need to join forces with rivals or complementary partners to keep boosting revenues. Partnerships have already cut across critical strategic spending areas, including the following:

• Pinterest allows Amazon to sell inventory via Amazon Ads, further connecting social and retail media.
• Meta and Amazon are testing Amazon product sales inside Instagram and Facebook.
• The partnership between X (formerly known as Twitter) and Google demonstrates what happens to platforms struggling to attract sufficient advertisers.

Some of these companies appear dominant in their respective markets. But their weak spots in others—Meta has struggled to drive native ecommerce on its platforms; Amazon has struggled to build a reputation as a place where consumers can find the kinds of exciting, quirky products TikTok makes famous—are pushing them to join forces.

This has significant implications for advertisers. In 2024, it will be easier than ever for advertisers to work with fewer, bigger partners. But at what cost?

• Tie-ups that allow more one-stop shopping enhance convenience but may heighten platform risk for the advertisers themselves. Partnerships could also raise privacy concerns and the prospect of regulatory scrutiny for the platforms involved.
• Advertisers may have to change their approach to these combined platforms. Brands that had built distinct teams to manage spend across different channels may have to figure out how to either combine them again or build frameworks that allow more collaboration. Without that reorganization, increased spending in one place will only create additional headaches.

Get the other top analyst trends in our Top Trends to Watch in 2024 report (Insider Intelligence subscription required).