A new year means new emerging trends and technologies in the adtech community, and this year is no exception. Adtech is projected to grow to almost $30 billion in 2023 and is showing no signs of slowing down, which means that marketers and businesses need to stay on the ball.
In 2022, we witnessed the rise of CTV advertising, the sustained growth of video advertising, and major moves towards a more privacy-first industry. With the depreciation of third-party cookies approaching in 2024, marketers, agencies, advertisers, and brands need to maximize the value of their data. As data privacy norms shift and an uncertain economic forecast lies ahead, brands must be acutely aware of all new trends. Here are five adtech trends we expect to see in 2023.
- The Opportunity of Connected TV
We know from 2022 that more people prefer streaming channels to traditional television, a trend that was expedited by the pandemic. CTV can drive acquisition and help deliver on sales goals in a way that has remained largely untapped to date. Research shows that CTV is also easily scalable and effective: more than 80% of households have a CTV device, 82% of DTC shoppers take action after seeing an ad for a DTC brand on Connected TV, and those figures only continue to grow over time. CTV also outperforms display ads and online video ads in regard to audience quality, with 12% and 10% higher audience quality, respectively. And since CTV offers many lower-cost ad-supported options, they have become the default for many households. We expect to see Connected TV grow exponentially as streaming services become the default preference for the TV audience.
- The Rise of Digital Out-of-Home Advertising
As marketers plan to increase DOOH advertising budgets by 76%, much of that growth will come from rapid expansion, with real-time bidding opportunities now available via mainstream DSPs. With a projected DOOH ad spend of $367 million by the end of the year, this makes for a 15% increase when compared to 2021. Marketers and advertisers know that while DOOH expansion may come with some obstacles, largely around data processing, ad viewability measurement, and low-latency ad creative processing, resolution of these issues can set brands for an ideal growth scenario in 2023.
- Conscious Marketing is Here to Stay
Strong future identity solutions must incorporate conscious marketing, meaning that brands must take a deliberate and respectful approach in their communications, while also being responsible and accountable to their own business. Conscious marketing focuses on aligning a company’s mission with the values and principles of its customers by bringing a people-first approach to marketing, advertising, process, and ethos across a business. Conscious marketing enables brands to embrace a more respectful, transparent, and kind way of reaching people. Advertisers and marketers need to make the shift by choosing to follow a conscious approach, such as:
– Only using data that’s necessary to create a customized experience.
– De-bias data sets to avoid sending outdated, insulting, or alienating messages.
– Refrain from exhausting or annoying people with repetitive messages.
– Being privacy conscious.
- Growth of First-Party Data
With third-party cookies making their way to the graveyard, along with increased privacy restrictions, the entire digital advertising industry is being forced to rethink their strategies. Marketers are focusing heavily on collecting personal data, and first-party data is among the most valuable, as it gives better insight into an audience’s interests, and allows publishers and advertisers to offer a more robust personalized experience. That value exchange will continue to rise in prominence in 2023.
- Performance Marketing Will Become Your Secret Weapon
Performance marketing used to be about one thing: brute-force results at the lowest cost. Over the last few years, however, performance marketing has evolved, through rapid digital innovation and reshaped customer behavior and expectations. Outcome-based approaches— enabled by new technology and insights—have given rise to a new era of performance marketing that can deliver not only more predictable, sustainable results but also better, more conscious customer experiences. That’s why Outcome Navigator, Matterkind’s proprietary suite of connected solutions, was developed: to help advertisers and marketers maximize the return on their digital media investments.
We know that 2023 will bring significant changes to the adtech landscape, and publishers and advertisers need to be ready to do more with less personal data. Transparency, authenticity, and respectful messaging will always be the most honest and memorable. Learn more about how Outcome Navigator offers commerce solutions to drive sales and achieve addressable outcomes.