6 ad tech trends that will dominate in 2023
Staying in touch with current ad tech trends is crucial for marketers that want to steer a safe course through 2023. Driving efficiency through innovation will be key for brands aiming to lower costs in a challenging economy, but extreme cutbacks to experimental efforts and data analytics could be a mistake.
Transparent measurement will also be important for maximising ad spend, while advances in automation could play a key part in fuelling businesses’ international ambitions. From Connected TV to transparent measurement, omnichannel strategies to third-party cookies, here’s what will direct the advertising industry in 2023.
Which ad tech trends will be making headlines in 2023? Post-cookie technologies, emerging environments such as Connected TV (CTV), and business priorities are set to evolve in the next year, while challenging economic conditions will give rise to further innovation and more flexible approaches to advertising.
Read on to discover the six ad tech trends with the biggest potential in 2023.
Trend #1: Another strong year for CTV
Looking ahead, we’ll see marketers upping their spend in CTV as they adjust their TV investments to changing audience habits. The expanding TV landscape is driving viewer fragmentation and causing a distinct generational divide. Broadcast TV, for instance, is favoured by older age groups and is highly valuable for boosting mass reach and awareness. Meanwhile 18-24-year-olds find on-demand and social video platforms more appealing, and these channels present marketers with stronger targeting opportunities.
As more video platforms emerge, marketers will gain access to a broader range of ad inventory, but selecting the best channels for their campaign goals will be critical. Tools that provide accurate measurement and prove unique reach will help marketers identify their best TV mix.
Trend #2: Sharper measurement will improve clarity
Measurement won’t only be a key trend in the CTV space, it will matter across the wider advertising landscape too. Consumer spending is being impacted by the cost-of-living crisis, and advertising investment must work harder to achieve its full potential. As a result, marketers will be seeking to better quantify campaign outcomes, as well as use attention metrics to optimise their strategies and boost audience engagement. Since cookie deprecation will rule out some measurement methods, brands must trial alternatives to maximise ad budgets.
In 2023, technology partners will be refining and innovating their solutions to provide more transparent measurement capabilities. This will let marketers carry out in-flight campaign optimisations that heighten impact and ensure cost-efficiency.
Trend #3: Improving the post-cookie recipe for advertising
Cookie deprecation will continue influencing the next steps of publishers and brands alike. Publishers possess valuable first-party audience data that brands need to implement effective targeting and personalisation, which in turn improves the advertising experience and supports a key revenue stream for publishers.
The watchword for ad buyers and sellers should be quality — quality advertising meets audience expectations and generates positive associations for both parties. Consequently, brands and publishers will be looking to develop direct and relevant partnerships over the coming 12 months that keep the user experience front and centre.
Trend #4: Intelligent automation will fuel international ambitions
One tool that will likely underscore many successful ad campaigns is automation, particularly with ongoing advances in artificial intelligence (AI) and machine learning. When coupled with human oversight, these technologies open the door to streamlined advertising operations and optimised campaigns that resonate with audiences.
For businesses planning to break into international markets or expand their global presence, these solutions could be especially pivotal. Machine learning algorithms, for example, are now able to localise ad content so that it’s both grammatically correct and authentic. Over eight in 10 UK businesses generating £1M-£50m offer their goods and services internationally, emphasising the importance of accurately localised and culturally aware ad campaigns for global success.
Trend #5: Innovation is the heartbeat of agility
Prioritising innovation is paramount for both safeguarding long-term brand success and hitting immediate goals. From adopting new channels to improving media buying, innovation can come in many forms. Experimenting with different approaches allows brands and agencies to uncover where efficiencies can be made, alongside which tactics and technologies deliver the best value.
Brands will look at the big picture in 2023, driving marketers to break down the barriers between advertising channels. They will be onboarding tools that enable flexible, omnichannel media buying so they can adjust their spend throughout a campaign’s duration and build a comprehensive overview of results, with key channels for 2023 including digital audio and programmatic digital out of home.
Trend #6: Empowering the people behind the technology
Redundancies become a distinct possibility during difficult economic times and in 2022, Gartner research found that marketing analytics departments were under threat. But with data’s ability to inform impactful marketing decisions, brands must carefully consider their investment in these teams and how to unlock value from them.
Ask questions like: Do teams have the necessary tools and processes to collect, combine, and dig into the data available to them? Without these, marketers cannot access the insights needed for optimising campaigns, maximising returns, and navigating through tough times.
The world of ad tech is fast-paced, and 2023 may move even quicker than previous years with economic turbulence and technological changes driving the ecosystem forward. In the next 12 months, industry professionals will need to keep these six key ad tech trends front of mind so they can pivot accordingly.