Last week, we shared Part 1 of our deep-dive into the first half of our 14 emerging trends we’ve identified advertisers should watch out for in 2023 (if you missed it, check it out here).
In this blog post, we outlined the remaining trends – covering topics such as video ads, the metaverse, third-party cookie depreciation, and more.
Ready to learn more? Let’s dive in.
14 Advertising Trends You Need to Know in 2023: Trends 8-14
8. Voice search impacts SEO and SEM
“Hey Google, where can I purchase a treadmill?” Whatever the question may be, voice search allows consumers to easily browse the internet and receive quick answers about products and services they’re interested in. In today’s fast-paced environment where everyone wants results in the blink of an eye, it’s no surprise that the expected transaction value of e-commerce purchases made through voice assistants will be $19.4 billion in the US in 2023.
So as not to miss out on opportunities to capitalize on these searches, advertisers need to start optimizing content for voice searches. This can include more conversational content, targeting question-based keywords, or tailoring content towards question-based answers.
Learn more about Smart Speaker advertising in our blog here.
9. Amazon Dominates E-Commerce
Amazon serves as a one-stop shop for consumers worldwide. Shoppers rely on Amazon for their vast inventory, tailored recommendations, record-timing delivery, and affordable prime deals. In 2023, Amazon’s net digital ad revenue is expected to reach $39.45 billion. Amazon offers valuable tools for advertisers, including their own DSP, Amazon storefronts, and much more. As consumers continue to frequent the site, advertisers should take advantage of the opportunity to reach their audiences as they browse and buy.
10. The Growth of Retail Media Networks
Shopping online has never been easier for consumers. As for advertisers, retail media networks have opened a new door in reaching target audiences. As more retailers set up these online infrastructures, more inventory becomes available that is specific to a particular audience. For example, retailers such as CVS, Target, and Home Depot opened media networks on their websites for brands to advertise directly on their pages. The annual growth rate for the US retail media market is ~25%, increasing from $36 billion in 2021 to an expected $110 billion in 2026. These networks provide advertisers with valuable first-party data and low-funnel ad spots, allowing brands to reach consumers that are likely lower in the sales funnel.
11. Video Ads Provide Great ROI
What better way to capture consumers’ attention than with engaging, short-form videos? 80% of people prefer watching a video to reading text, and consumers are 27.4x more likely to click through online video ads than standard banners. If these numbers don’t convince you, consider why Tiktok has become one of the fastest growing social media platforms – consumers can easily digest entertaining videos or ads and the information sticks. Overall, customers remember 95% of the information gathered in a video. Now is the time to consider which channels to implement creative videos, whether that be on social media, in-stream, or even CTV that best resonates with your audience.
Learn more about video ad formats in our blog here.
12. Advertisers shift away from third-party cookies
Data. It’s crucial for advertisers to have in order to implement successful campaigns. As Google continues to push back the removal of cookies on Chrome, most advertisers are still relying on third-party cookies for consumer web habits and viewing data. However, as data and consumer privacy take center stage – 33% of U.S. consumers think better of brands that keep their data private and secure – advertisers need to think beyond Google’s timeline when it comes to rethinking how and what data they use to reach their target audience. Consider investing in first and zero-party data sources, in which brands directly collect, store, and implement data. Since this data comes right from the consumer to the brand, through owned websites or apps, it’s more favorably looked upon by consumers and can offer greater targeting in the long run.
Learn more about the case for zero-party vs. first-party data in our blog post here.
13. Consumers watch their spending
We don’t need to be the ones to tell you, the looming recession is on everyone’s mind. As prices skyrocket across all industries, especially on essentials such as groceries, rent, and gas – consumers are paying closing attention to their wallets. While discounts, coupons, and deals have been significant purchase drivers, in light of more economic uncertainty to come, consumers are primarily searching for a higher value in their purchases in 2023.
Additionally, these cutbacks inevitably affect marketing budgets as well; advertisers are tasked to do more with less. Having strong analytics practices to find areas of opportunity and improvement will be essential in the coming month to ensure you stay on track with achieving great ROI.
14. Advertisers Proceed with Caution in the Metaverse
While the metaverse has gained traction throughout 2022, there is still skepticism from marketers about the direction of this virtual world. Only about 50% of technology experts and business leaders believe that the metaverse will be fully operable with immersive virtual experiences by 2040. Now, this isn’t to say to advertisers need to shy away from all metaverse opportunities; now is the time to research and understand if and how the capabilities align with your campaign goals and target audience. As companies continue to invest in this digital space, improvements are on the horizon, and we’ll keep an eye on the metaverse throughout 2023!
Learn more about opportunities in the metaverse here.
Ready to Move from Trend to Actionable Strategy?
Each trend listed above in isolation will provide great value to your digital advertising strategy. If you’re interested in a plan built specifically to reach your target audience and achieve your goals, contact our team of media strategists today!
*All sources in this blog post are provided in our 2023 trends piece, “14 Advertising Trends you need to know in 2023.”