5 Martech Trends That Will Define 2023
2022 was an eventful year for marketers. As legislation developed, privacy was thrust into the spotlight — and consumers are more concerned about data privacy than ever before. End users want more choice over what actions websites and apps can track and want to have more control over how their data is being used.
The way consumers use the internet is different now, too. Users interact with media across multiple channels and platforms, including mobile phones, browsers, apps and in-home devices. With the amount of marketing and advertising materials consumers interact with, it’s easy for consumers to tune out messages that don’t relate to them. There needs to be a focus on viewing consumers as people rather than just cookies or IDs used to centralize data.
The marketing landscape is different than it was ten years ago, and legacy systems like Google Analytics (GA) are evolving to meet the needs of today’s consumers and marketers alike. In 2022, marketers scrambled to keep up with evolving compliance regulations and to adapt to privacy-centric marketing strategies — and in 2023, privacy-first data-driven strategies will take center stage.
Here are five trends that will shape the martech industry in 2023.
- Federal data privacy court decisions bring regulatory compliance to the forefront
From Meta to Sephora, 2022 saw large retailers being held accountable by federal courts for flouting data privacy compliance regulations – and we can expect to see more of these cases in the coming year. These cases have been a wake up call to brands on the importance of privacy. While there is confusion around growing compliance regulations in the US – especially with legislators still working to pass a federal privacy legislation, most recently, the American Data Privacy and Protection Act (ADPPA), that will provide a single, national foundation for data privacy – GDPR will be the golden standard for brands to follow in the near term. The “grace period” for privacy compliance is closing, and both global and US brands have to ensure their compliance standards are up to par if they don’t want to be taken to court.
- Decision-making flexibility is a priority amid economic turmoil and budget cuts
Businesses have seen their share of disruptions over the last year, and in 2023, they will continue to deal with the impact of rising inflation and budget cuts, as well as greater regulatory and compliance changes at least for the short term. What’s most essential is how organizations will mitigate the effects of these disruptions on their marketing and business performance. Increased granularity in marketing dashboards and the use of predictive analytics to understand forecasting and demand generation will empower marketing professionals with real time data insights to meet fluid market conditions. Expect to see marketing teams delay non-critical changes and place an increased emphasis on flexibility in marketing tools and planning in the coming year as marketers look to remain nimble and quick footed in their strategic decision making amid a possible recession.
- Data clean rooms take center stage with increased privacy capabilities
With the sunsetting of third-party cookies, we have seen data clean rooms grow in popularity this year. In 2023, we expect to see them take center stage. As we move into a world with tightening privacy regulations, we will see marketers increasingly demand solutions – like Publisher Advertiser Identity Reconciliation (PAIR) – that allow for the continual sharing of data in a safe and privacy-first way. Data clean rooms enable brands to cross-match anonymized, aggregated data without actually revealing any personally identifiable information or allowing access to the data outside of the clean room.
- Media Mix Modeling makes a comeback and drives data-driven decision making
The rise of biddable media and audience planning raised expectations for a granular, near-real-time feedback loop that traditional Media Mix Modeling (MMM) studies are not designed for – leading marketers to believe MMM is “dead.” However, in 2023, we expect MMM to make a comeback, in an evolved form. As third-party cookies fall by the wayside, there is a growing need for greater control over all steps of the marketing decision-making process – and a refreshed, faster, more granular and transparent version of MMM will offer marketers that. As we enter this new privacy-centric era, we expect to see marketing teams reconsider their approach to MMM in order to gain greater control over the marketing decision process, provide pragmatic recommendations and accelerate decision making.
- Customer Data Platforms are the key to breaking down data silos in a privacy-first era
Data silos are a pervasive problem for companies across industries and can impact nearly every department, from marketing and sales to customer experience and HR. While businesses have been trying to reduce data silos for years, with the sunsetting of third party cookies, the need to break down silos to drive continued business disruption will become paramount in 2023 – and Customer Data Platforms (CDPs) will play an increasingly important role in doing so. CDPs are one of the most effective ways to create a personalized customer experience while putting a stop to disjointed profiles, and will be a core element to the martech stack in 2023.
The year ahead
As the US follows in the EU’s footsteps, privacy regulations will only play a larger role in marketing in 2023. While the GDPR is still the strongest privacy regulation to date, we will see an increasing number of regulations in the U.S. The best marketers are agile and should be using the coming year to make preparations for the loss of third-party cookies. One thing is clear: decisions must be strategic, privacy-centric, and backed by data.