The year 2022 has been a period of uncertainties, where the entire world economy has gone through a disastrous pandemic era. The Covid-19 lockdowns and restrictions drastically impacted every business, it gave them a rejuvenating time to regain their energy and commence operations at their full potential.
As we are on the verge of entering a new year, economic recessions are the other major threat that we are confronting at this phase of time. This will make it erroneous for the inception of innovative ideas and only those who are incredibly expert and prove the value of their product will survive.
This blog will introduce you to the AdTech trends that could produce notable outcomes in the upcoming year.
New Strategies of the AdTech Industry
- Long-term brand building
The uncertain scenario always compels marketers to conduct performance marketing rather than building a strong brand. Ideally, marketers should give great prominence to the long-term brand building so that when consumers are ready to purchase, this brand has to be at the top of their minds. Performance marketing is always imperative but at unpredictable times, marketers must move forward with a strategy that can drive sustainable results. Proficient marketers must coordinate brand-building and performance marketing as one, simultaneously resulting in higher er r er OAS( Return On Advertising Spend). Subsequently, it ensures the brand’s popularity above everything.
- Value-based decision making
For a brand to sustain itself in an unprecedented time, advertisers have to align their activities with the values of their target audience. This is what we saw when Elon Musk takeover Twitter which resulted in half of Twitter’s top 100 advertisers seemingly halting spending on the platform amid brand safety concerns. In the upcoming years, we are going to witness a drastic change in businesses to operate in an environmentally sustainable way to meet consumer expectations. As far as consumers are concerned, they are least interested in brands talking about sustainability, rather they want to see it embedded into business strategies.
- High focus on first-party data
Until now advertisers heavily depended on third-party cookies for collecting data. The surge in privacy-driven restrictions has consequently resulted in the compulsion of the entire digital advertising industry to reanalyze its marketing strategies. Due to the recently announced privacy regulations, marketers have to come up with a new solution to target the audience. Contextual audience targeting by Adtech companies is probably going to become quite popular in 2023.
Contextual advertising is a kind of targeted advertising that takes keywords and content of the webpage into consideration when displaying ads instead of user behavior.
- Efficient utilization of video advertising campaigns
Video can grasp the attention of the audience far better than any other medium. Thus, video ad campaigns can produce more lucrative results than any other mode of advertisement. The recent statistics on video advertising ascertains that viewers are likely to retain 95% of the information they receive through video, compared to the 10% absorption rate via text.
The impact of video advertising campaigns was much evident from the social media platforms like TikTok, Instagram, and YouTube. As these platforms staggered into popularity among users has motivated brands to utilize these channels for running their ad campaigns. Brands can make use of video ads to raise awareness and make consumers about their brand. To make it highly successful, they have to research how their audience consumes video to mitigate their efforts.
- Transparency in brands
The year 2022 has been filled with a growing awareness of online users’ privacy rights, 2023 can be foreseen as marketers’ efforts to adapt to new changes formulated out of privacy issues. As advertisers highly want to integrate their brand values and beliefs into users’ requirements, they will have to completely redefine their marketing strategies. There are more chances to shift their focus on the value exchange between marketers and consumers where advertisers have to think about marketing efforts that build trust.
- High effectiveness of CTV
Data-driven connected TV viewing is expected to proliferate remarkably considering the fact that more than 68% of TV viewing already is from streaming devices. Hence, CTV can be included among the ones that provide subsequent advertising opportunities in the year 2023.
- AI in digital marketing
Artificial intelligence(AI) has found its role in digital marketing due to the challenges that both publishers and advertisers confront when trying to run effective ad campaigns. When companies leveraged traditional strategies and techniques to analyze data and monitor performance they still struggled to reach the desired customers. Eventually, companies started to embrace AI solutions to achieve targeted results due to big data analytics. Thus, companies started to make better predictions and more result-driven strategies.
- Traditional panel-based distribution
Marketers are turning to new technologies that maintain track of continuously changing consumer behavior as traditional panel-based measurement fast becomes obsolete. They are moving away from conventional panel-based measurement and shifting their spending from linear TV to CTV as they search for new alternatives.
To sum up
The change to privacy-first advertising and the widespread deprecation of ad IDs will propel programmatic advertising into an inventive phase in 2023. For the industry to adapt and flourish, the adoption of industry standards, consideration of contextual signals, and development of open data exchange channels will be essential. First-party data sources are essential for efficient brand promotion as always. Additionally, programmatic advertising may succeed as we move into the year 2023 if we take advantage of emerging techniques in the market like CTV, DOOH, digital audio, and gaming.