2023Outlook:Ways Marketingand AdvertisingwillChange fortheBetter
The advertisingindustry is moving fast. Once a risky bet, digital advertising andmarketing are now becoming a norm.
A recent report highlighted that digital ad spending is anticipated to surpass $600 billionin 2022. Andthe numbers are set to rise to $876 billion by 2026.
With the ever-changing digital landscapes of social media and the internet, advertising and marketing companies must advance alongside. The rise of new platforms, changing regulations, and evolving user preferences, are compelling brands toexperiment with their existingadvertising experience. The sector is expected to witness new changes in the comingnew year, but to what extent?
While it is still certain what changes will take place inthe coming years, it is true that the future of the advertising industry is transitioning andstarting to take anew shape.
As new innovations continue to emerge and consumer expectations evolve, agencies andbrands are exploring ways to stay on top of the competition. Let's explore some of the most promising advertising and marketing trends to look forward to in 2023 and beyond.
Future of Advertising and Marketing:
2023 Predictions
1. DuetoProgrammaticAdvertising,Artificial IntelligencewillPlayaSignificantRole
Programmatic advertising integrates artificial intelligence (AI) to automatically buy and sell ad space in real time. This helps businesses to save vast amounts of their time and reduce the cost per lead. In 2022, more than 90% of display ads were transacted programmatically. And this trend is here to flourishin 2023 as well. While theincrease in programmatic advertising slowed down in 2022, marketers will spend more onprogrammatic ads by the end of the year and in2023.
The future of advertisingwill be AI-powered in2023. It will employ the effectiveness of AI to promote operations with machine learning. This implies that brands will be able tocreate personalized ads for their consumers. Artificial intelligence (AI)will play a vital role in how brands reach out to their target audience and understand what consumers want and need. This will enable brands to identify the different preferences of their consumers for their products or services.
Read more: TheFutureofConsumerInteraction:TheRoleofTech toEnhanceConsumerExperience
2. ShorterVideoAdswillDrivetheAdvertising Landscape
If there's one kingin the digital space right now, it's video. Video is likely tocontinue to be the most prominent digital marketing trend in 2023. 93% of marketers believe that video helps conversions better than any other content marketing format. Andthe popularity of video content is showing zero signs of slowing down. Another significant trend is that video ads are now getting shorter. More than 56% ofvideo ads are now less than two minutes long. Marketers are now optimizing their video content fordifferent platforms as users expect different lengths for their video content. Video marketingwill still be an integral part of content marketing strategy for businesses. The expected runtime of video content for each platformis as follows:
• Instagram - 30 seconds
• Twitter - 15 seconds or less
• Facebook- 1minute
• YouTube - 10minutes
Read more: GlobalBusinessTrendsOutlook2023
3. QRCodestomakeShoppingEasier
A QR or Quick Response code is the digital equivalent of a barcode. It offers a precise way to reach the targeted users ontheir devices. Today many smartphones also have a QR scanner in the camera that can activate a digital response when scanned. By integrating these QR codes, brands can build endless marketingpossibilities. The codes can be used to direct user traffic to awebsite with a product information display. And the best part, creating a QR code is easy. Once the QR code is generated, businesses can place it on their website and even display it in their digital ads and campaigns.
4. ThePhysicalRetailSpaceWillIntegrate
OmnichannelAdvertising
A strategy used tounify a brand's voice across multiple channels and touchpoints,omnichannel marketing is gaining new popularity among businesses. However, an omnichannel approach involves a display, CTV, video, audio, and digital out-ofhome (DOOH).
The omnichannel advertising trend is not limited to just digital advertising, though. Omnichannel is set to enter the physical retail space as well. While 30% of the world's population shops online, people still crave an in-store shopping experience. And the COVID19 pandemic intensified the urge for such experiences.
Conversely, 54% of consumers enjoy exploring in-store products and then buying them online. This is referred to as showrooming. This has led to32% of digitally native brands declaring their plans to expand or establish their presence in the digital place, hereby offering their consumers pop-up experiences.
Venturing into physical retail will open up a new pathof opportunities forbusinesses in today's realm of programmatic advertising. Due to this rising popularity, advertisers are integrating the use of geotargetingtools to serve ads to target their audience through dynamic digital signage screens.
Read more: BlackFriday2022:WillInflationImpactHoliday ShoppingforConsumers?
5. AugmentedReality(AR)willEvolveand becomemoreWidespread
As we move closer to 2023, it is safe to state that advertising and marketing will continue to modify and adapt with the rest of the world. One significant way advertising is changingis by integrating augmented reality into its operations and campaigns. Augmented reality (AR) is already finding a special place in ads and marketing campaigns. However, it is anticipated to become even more widespread in 2023 and beyond. With augmented reality (AR), marketers will be able to design interactiveexperiences for their consumers. Augmented reality canassist themin showing off their products in a new and innovative manner, as well as making their ad campaigns more engaging.
6.Advertiserswillneedtogetaccustomedto theChangingDataRegulations
With new data regulations being rolled out, data regulation compliance is being perceived as ahuge challenge for brands in 2023 and beyond. Brands often rely on third-party data consent tools that are often not updated quickly enough. In 2023, brands need to brace themselves to be challenged and explore new ways to keep their customer data systems compliant under the shifting data regulation.
7. TheAdvertisingIndustryWillTransitioninto theMetaverse
With the arrival ofthe metaverse and users showing their interest in this virtual space, users are transitioning the operations into the metaverse as well. 33% of people are interested in participating in the Metaverse, and it is expected torise to 42% among Gen Z and Millennials. Takingthese statistics into consideration,digital advertising is set to enter the metaverse. While users mostly use the metaverse towatch TV and films, play games, browse products, and connect for live events, it symbolizes a huge opportunity for advertisers and marketers.
Read more: DataAnalyticsinMedia&EntertainmentIndustry: 2023Trends
Final Thoughts
The digital advertising and marketing world has been in a constant state of noticeable flux in the last few years. Brands and advertisers have been grappling with the shift inconsumer priorities as well as the rise ofindividual first-party solutions.
With the advertising landscape continuing to transition at a faster pace, companies are seekingstrong and trustworthy strategies to meet their organizational goals and design impactful campaigns. Due to this reason, the next phase of advertising is likely to experience the prioritization of omnichannel campaigns, offering access to flexible testing and fulfilling the growing demands for cross-channel audience building.
Now brands are exploring new avenues to integrate a measurement-focused perspective into their campaigns whenit comes tostreamlining their advertising activities. While many solutions already exist, it is important to choose one that is more emerging. These approaches are necessary for businesses tostay competitive in this constantly changing market environment.
With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics,offers tailor-made services to enterprises worldwide.
A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contactus today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology.
