Consumer Trust and Green Shopping Lead the Way in 2023
For advertisers, marketers, publishers, and consumers alike, 2022 was a year that represented newfound balance. Even though we’re a few years out of the pandemic, consumers are still developing new habits and trying to find stability around volatile economic conditions. Despite these factors, businesses took strong steps towards normalcy. With almost every business continuing to evolve, 2023 will present opportunities to build consumer trust, innovate digital marketing tactics, and advance our industry’s effort to reduce our industry’s climate impact.
Here’s a look at what the industry is poised to experience in the next year.
Changes in Targeting
With consumers giving more attention to how their data and online presence are used, a growing focus on privacy is emerging. As such, privacy regulations will be implemented in five states — California, Colorado, Connecticut, Utah and Virginia — and more states are considering similar laws.
In 2023, brands and advertisers will place greater emphasis on probabilistic strategies. The shift towards upper-funnel campaigns helps ensure privacy regulations are met, all while effectively engaging audiences at scale. Additionally, developments in rich media and interactive ad units will become more prominent and expected by brands.
A New Adtech Sleeping Giant Emerges
For years, M&A activity has been a major aspect of the digital marketing industry. As new deals solidify, fresh players come into the fold and the roster of category leaders evolves. Notably, Microsoft completed its acquisition of Xandr this year, positioning it as a strong option for brands and advertisers’ CTV dollars.
Xandr has exclusive access to Netflix inventory. Because of this, ad budgets will begin shifting away from existing large players to accommodate for the unique inventory offerings from Xandr. This will pressure its competitors as well as marketers, who will need to learn a new platform.
Commitments to Environmentalism
The advertising and marketing industries will bolster their efforts around taming emissions through 2023. While there was a large uptick around this in 2022, next year will see a massive collective effort from all industry organizations. Brands and advertisers will make business and campaign decisions not just based on traditional KPIs but also on their environmental impact.
The jarring reality is that the majority of tools on which digital marketers rely negatively impact the climate, including cloud-based documents, process-tracking software, video calling technologies, and even email systems. Next year will see both large and small companies step up to the plate to evolve workflows and foster a greener future.
Ken Harlan is founder and CEO of MobileFuse.