The adtech landscape and digital marketing have undergone tremendous transformation in the last 12 months. Many media businesses are being drawn toward the ad-supported model today by the exponentially increasing screen time, as well as tighter privacy laws and mounting financial challenges from the economy’s sluggish growth.
Last year witnessed the emergence of several new ad networks, including those from Marriott, Netflix, and Xbox. Any corporation with a large enough database today is interested in establishing an ad network. For novices, programmatic is the best way to break into the advertising landscape. Marketplaces that are standardized and interoperable enable new ad networks to develop quickly and meet demand on a global scale.
Given that the majority of campaigns are based on cookies, marketers must deal with a considerable change in targeting and metrics factoring in the adtech trends in 2023. Google’s decision to exclusively allow cookie-less advertising has allowed publishers and marketers more time to come up with fresh ideas. Due to the cookie constraints and the introduction of stronger privacy regulations, publishers have also begun looking into the best AdSense alternatives and other available options. Here are our predictions for the future of the adtech market in 2023.
Adtech Trends in 2023
It is believed that the growth and innovation observed in 2022 in the adtech industry along with a consistent rise in global ad spending will continue in 2023. The following is a list of our most important predictions for adtech industry trends in 2023.
Proliferating First-Party Data in AdTech Domain
Google has again delayed deleting third-party cookies. What was initially postponed to Q2 2023 has now been delayed till 2024. Despite the delay in cookie deprecation, the first-party data era is now entering the market.
The Privacy Sandbox will require numerous adjustments to function as a reliable ad identifier and win regulatory approval. Google will probably feel pressured into providing fewer thorough cohorts for targeting, which won’t make up for the deprecation of third-party cookies. AdTech must come to terms with and put into action a high-level solution built on a tenable universal ID, first-party infrastructure, and clear consent procedures for data sharing.
Hyper-personalization – Catering to you
The adtech sector’s game-changer is hyper-personalization. Hyper-personalization entails sending a customized contextual message to the correct user at the right time on the right channel. This adtech trend in 2023 is going to continue, and technologies like data analytics, AI, and ML are assisting advertisers with customized experiences through segmenting and smart audience management. Contextual advertising powered by AI/ML to promote apps and products has, in our opinion, just begun to gain traction and will continue to expand dramatically throughout this year and beyond.
CTV: One of the most important Adtech trends in 2023
According to Pixalate, 92% of U.S. households are reachable via CTV open programmatic advertising, up 11% year-over-year. Especially during the COVID-19 pandemic, cord-cutting has become a way to go for many wishing to reduce spending on traditional (linear) TV and explore limitless streaming options. No wonder the growing CTV market has also attracted unprecedented advertisers’ attention.
Although ad-free business models have traditionally been associated with streaming services, this is no longer the case. This market is about to expand because nearly half of current ad spending is split across YouTube, Hulu, and Roku. Also, with the advent of 2023, Netflix intends to roll out its ad-supported tier, which will comprise the vast bulk of content that subscribers are already watching. To increase the appeal of this tier, Netflix is attempting to work with studios to add more content. Additionally, Disney+’s ad-supported tier is also supposed to debut in December adding the cherry on top for adtech trends in 2023.
All of the aforementioned signs show that the streaming industry is paving the way for itself to create Walled Gardens. They may be competitors of the massive walled gardens of advertising, like Google, Facebook, and Amazon, due to the wealth of data they own. Additionally, the global data from Hootsuite reveals that 93.5% of internet consumers access material using streaming services.
AI Converging in Adtech
Digital marketing adopted artificial intelligence (AI) as a solution to the mounting difficulties faced by publishers and advertisers when attempting to predict future consumption habits.
Although businesses have historically relied on a variety of technology advertising and solutions to analyze data and monitor performance measurements, they have nevertheless had difficulty keeping up with the fast-paced changes in the market. As a result, businesses are expected to keep using AI solutions to produce better results as a result of big data analytics. This enables businesses to predict events more accurately and make more strategic choices.
There is a growing interest in utilizing AI for both publishers and marketers due to the significance of advertising data. Publishers are looking for the best adtech investment trends that can monetize their ad space at the most competitive price and with the most relevant content, while advertisers are looking for the best solution that fits their audience.
Programmatic Advertising To Propel AdTech Trends in 2023
There is no denying the growth of programmatic advertising. This implies that corporations can target particular audiences in real-time and with extreme precision. Advertising of this kind is quite effective and efficient, and it will only grow in popularity in the future.
One of the most effective ways to distribute advertising budgets is through programmatic advertising. Ad spending in programmatic advertising is automatically distributed to ad inventory that has the best chance of producing the desired result, such as a click or a conversion.
Brands and marketers nowadays are under continual pressure, they have to deal with competitive situations and budget constraints, and every dollar matters. Markers must make sensible financial decisions because the brand value will be significantly higher in 2023. Marketers anticipate using programmatic marketing to help them negotiate the rapidly evolving digital landscape following privacy restrictions and the removal of third-party cookies. Marketers must demonstrate cost-effectiveness and ROAS to corporate executives.
Although no one can predict what the upcoming year will bring, we can extrapolate from current trends to gain a trustworthy idea of where the industry is headed. Publishers and marketers need to be prepared to accomplish more with less personal data since the media and marketing landscape is expected to undergo considerable changes in deciding the adtech trends in 2023.
Due to Google’s decision to postpone the removal of third-party cookies from Chrome, publishers and marketers have had more time to explore new prospects involving the gathering of personal data.
For businesses to develop their distinctive voice and connect with the right audiences, this year must be one of openness and sincerity with new advertising technology. Additionally, there will be a significant increase in the use of AI to capitalize on economic opportunities.