Over the past year, digital advertisers embraced ample opportunities – both within legacy channels and new – to reach and engage with consumers in targeted, meaningful ways. To name a few: digital audio usage soared, skepticism around CTV measurement was answered with new and improved analytics solutions, mobile continues to prove its dominance in device usage, and DOOH saw great benefits as people re-established their pre-pandemic routines.
As we begin 2023, the Digilant team is excited about new technologies, better data practices, and continued improvements in the digital advertising landscape to better reach and target today’s consumers.
So what can be expected to stand out this year? What trends, channels, and solutions will truly move the needle for advertisers? In our newest infographic, “14 Digital Advertising Trends You Need to Know in 2023” we’ve outlined the top trends we predict will make the biggest splash over the year.
Over two blogs, we’ll dive deeper into each of these trends, offering more insight into why advertisers really need to know about them and offering tangible solutions to incorporate them into their media strategies. We’ll cover trends 1-7 in this blog post and 8-14 in part 2 (which you can check out here).
14 Advertising Trends You Need to Know in 2023: Part 1
1. Ad-supported CTV takes center stage
In today’s TV landscape, there are new movies and shows available every day across many streaming platforms. Households often have multiple streaming subscriptions, making price now one of the top considerations for consumers when choosing a new streaming plan. 80% of consumers now use ad-supported CTV, allowing advertisers to deliver timely, targeted messages. Especially with streaming giants like Netflix and Disney+ offering ad-supported plans, advertisers can leverage CTV to reach those growing audiences in 2023.
2. Consumers Continue to Cut the Cord
While industry-old terms at this point, ”cord-cutting” and “cord-shaving” remain as relevant now as ever before. Each year, more consumers continue to switch their cable boxes for streaming platforms, viewing their television content through Connected TVs and over-the-top devices. In 2023, it’s expected that 82% of households will be “CTV-only,,” solidifying this channel as a necessity rather than a “new opportunity.” With better access to data, extensive targeting, ample inventory, and improved measurement solutions, CTV provides advertisers with unique and targeted access to connect with audiences as they stream their favorite content.
Learn more about Digilant’s Advanced TV Solutions here.
3. TikTok Adoption Continues to Grow
US adults spend an average of 45.8 minutes daily on Tiktok, with Tiktok users spending 50% more time on the platform than Facebook and Instagram users. As one of the fastest-growing social media platforms, users are drawn to short-form videos to consume fun and engaging content, including educational videos, product reviews, sports highlights, and so much more. Tiktok has also become a search hub, as almost 40% of Gen Z is using TikTok and Instagram for search instead of Google. With over 1 billion Tiktok users, now is the time to hone in on your Tiktok advertising strategy to reach this vast and engaged audience.
4. The Rise of Social Commerce
By 2025, social commerce spending is anticipated to reach $1.2 trillion. Social media platforms such as Facebook, Instagram, and Tiktok are paving the way in giving consumers more options to discover and even purchase new products directly within their platforms. While this buying experience has seen steady growth in the past few years, as consumers spend more time on mobile and expect seamless buying journeys, there’s no better time to incorporate shoppable ads in your media plan.
5. More Listeners Tune into Streaming Audio
What makes streaming audio so effective for advertisers is the ability to reach consumers at different points throughout their day. Between digital radio, music streaming, and podcasts, there is endless content for consumers and advertisers to tap into. About two-thirds of the U.S. population ages 12 and over listens to streaming audio at least once per week. Consumers can listen to what they want when they want to, and advertisers have the opportunity to deliver personalized ads at scale.
Learn more about Digilant’s advanced audio solutions here.
6. Podcasts Ads Produce Sales
Music streaming, digital radio, and podcasts have all experienced exponential growth within the last few years. But, advertisers have specifically taken note of podcasts. Since the pandemic, podcasts have gained new listeners and historic listeners have become even more engaged and loyal to their daily, weekly, or monthly episodes. By year-end, we’ll experience a 4.9% year-over-year growth in podcast listeners, totaling 131.2 million.
So, if the numbers alone don’t convince you that podcasts are a great medium to invest your dollars, consider that host-read podcast ads are one of the most trusted forms of advertisements and have one of the highest conversion rates. Of podcasts listeners that listen for at least 5 hours per week, 65% have purchased a product after hearing a podcast ad. Consumers trust and like the host(s) they listen to, and these feelings are transferred toward having a draw to the products they recommend.
Learn more about the power of podcast ads in our blog post here.
7. Digital Out-of-Home Grabs Consumers’ Attention
Out-of-home ads like billboards are great for capturing consumers’ attention while driving, but DOOH has grown far beyond roadside ads. With the incorporation of digital screens in nearly every aspect of our lives – elevators, doctor’s offices, taxis, grocery stores, gyms, malls, metro stations, airports, and more – there are now digital screens that allow advertisers to reach consumers wherever they are. As inventory increases, take advantage of opportunities to reach consumers beyond their computers and phones and create timely, targeted ads displayed as they move about their day.
Learn more about digital-out-of-home opportunities in our blog post here.
Ready to Move from Trend to Actionable Strategy?
We’ve just scratched the surface of key trends advertisers need to know in 2023. Interested in learning more? Download our full infographic covering all 14 trends and solutions to optimize your strategy today. And check out part 2 of our mini blog series here, where we dive deeper into trends 8-14.
Each one of these trends in isolation will provide great value to your digital advertising strategy. But 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 stats in this blog post are linked in our 2023 trends piece, “14 Advertising Trends you need to know in 2023.”