Digital Media and Advertising Trends 2023: Exploring the Shifts and Predictions

In the realm of digital media and advertising, the landscape is continuously evolving, offering an array of viewing options for consumers. From on-demand streaming to live broadcasts, the rise of ad-supported connected TV (CTV) and over-the-top (OTT) services has expanded the avenues for advertisers to connect with their target audiences.

Looking ahead to 2023, it’s evident that this momentum will continue to grow, prompting marketers to strategize on how to leverage this dynamic landscape and capture the attention of viewers. But amidst this surge, what factors will encourage consumers to engage with ads on streaming platforms?

As we step into the new year, several key trends are expected to shape the digital media and ad tech sphere. Here, we delve into our predictions for the upcoming year:

1. Leveraging Premium Streamers for Enhanced Audience Engagement

The ongoing trend of price hikes in streaming services is anticipated to drive consumers toward accepting ads in exchange for more affordable subscription options. Notably, the recent shift in pricing strategy by Disney+ and Netflix signals the growing significance of ad-supported tiers in attracting a broader audience base. The integration of live sports events into platforms like Prime Video and Tubi further amplifies the potential for advertisers to access premium inventory and reach larger audiences in the upcoming year.

2. Adapting to Changing Viewing Behavior through Real-time Ads and Cross-Channel Integration

With the dominance of CTV over mobile for global ad impressions in 2022, advertisers and ad tech partners are compelled to adjust their strategies to align with evolving viewing habits. This calls for a proliferation of technologies that enable brands to efficiently engage with audiences immersed in live content across various channels, including CTV, social media, and digital out-of-home environments. Expectations point towards the exploration of new ad formats and an integrated approach that complements different streaming platforms, emphasizing the synergy between household entertainment names and video-social platforms.

3. Emphasizing First-Party Data for Enhanced Campaign Performance and Measurement

As the shift from traditional linear TV to CTV campaigns gains momentum, the importance of first-party data becomes paramount in justifying ad spending and assessing campaign outcomes. With data-driven strategies becoming essential for targeted media buys, advertisers will increasingly prioritize transparent attribution and advanced measurement tools to demonstrate the value of audience-based advertising. Expect the industry to witness a collective effort toward enhancing measurement practices, aiming to establish more consistent and reliable methodologies for evaluating campaign effectiveness.

4. Expanding the Role of Out-of-Home in Omnichannel Campaigns

The rapid digital transformation of out-of-home (OOH) advertising, alongside the integration of programmatic DOOH, is set to redefine the role of OOH in 2023. As brands seek to engage consumers beyond the digital realm, OOH presents a unique opportunity to create immersive brand experiences in the real world, augmenting consumer journeys and fostering deeper brand engagement. The convergence of OOH with social media platforms will further contribute to a cohesive brand narrative, encouraging consumers to interact with brands across multiple channels.

5. Addressing Sustainability Concerns with Universal Adtech Standards

Amidst the growing emphasis on sustainability, ad tech stakeholders are increasingly prioritizing carbon footprint reduction in the digital advertising supply chain. Anticipate the development of universal standards and best practices aimed at minimizing energy consumption and carbon emissions associated with ad inventory. With a focus on green initiatives, industry leaders are expected to collaborate towards establishing a sustainable ad tech ecosystem, aligning with the evolving demands for environmentally conscious advertising practices.

6. Engaging Gen Z as Co-Creators for Authentic Brand Experiences

In the pursuit of effectively engaging Gen Z consumers, brands are shifting their approach to embrace a more collaborative and inclusive strategy. Acknowledging the significant influence of Gen Z on digital culture, brands are encouraged to view this demographic not just as consumers but as active co-creators. By fostering an environment that fosters collaboration and inclusivity, brands can create meaningful connections with Gen Z, fostering authentic brand experiences and cultivating a sense of community and shared identity.

Looking ahead, 2023 promises to be a transformative year for digital media and advertising, marked by innovative strategies, enhanced audience engagement, and a heightened focus on sustainability and inclusivity. As the industry continues to evolve, staying attuned to these key trends will be essential in navigating the dynamic landscape and maximizing the potential for meaningful brand-consumer connections.