Programmatic Ads: What’s in trend for 2023?
5th Generation of mobile networks, billboards making a comeback in a digital form, and attribution model for retargeting- which of these technologies or strategies are going to dominate the programmatic advertising industry in 2023? At this point, marketers are curious about this revelation. If we were to package the current market and user analysis for 2023, we would say the expectations and appetite for personalization, entertainment, and creativity are going to be higher than in 2022. So how should marketers prepare for that?
With new challenges come new opportunities and possibilities. Advertisers are investing in innovative ad formats and multiple channels. They are acquiring strategies that are coherent with the current market and focusing more on tight budgets, resource efficiency, and definite results.
ML and AI are driving the contemporary advertising market. They have revolutionized the programmatic advertising industry and it has only begun. With these technologies, advertisers are able to unlock the full potential of their ads. The advancement in ML and AI has made Asia Pacific (APAC) the second-largest global ad market.
In spite of the global economic breakdown during Covid, APAC remains a hotspot for expanding advertising opportunities and ML and AI play a crucial role in this. We saw these technologies show a 5-year growth in just one year. It has helped advertisers segregate their investments into result-driven resources like research, programmatic platforms, data collection, and conversion-led strategies.
A 2022 report by Dentsu has given some incredible statistics that support this phenomenon. It suggests that Asia Pacific advertising spending is expected to grow by 5.9% to reach US$255 billion in 2022. Currently, China is the leading market space for global ad spends. However, in the past few years, India has displayed commendable ad growth and scope. It is the fastest-growing market globally at 14.6%. 2023 is going to be a crucial year in witnessing this growth.
Each year, advertisers and publishers prepare for new marketing shifts and fluctuating demands. 2022 began on the same note too. The rise in video advertising, niche targeting, and increased programmatic ads were some of the predictive ad trends that lived up to the expectations. However, what was not so accurately predicted was the current economic conditions. But if Covid has taught the ad market anything, it is to adapt and evolve.
One thing that remains common amidst any global pandemonium is demand. The user demand shifts from one need to another but continue to thrive. An innovator should always try to keep up with the user demands to be the industry leader and drive incremental ROI. Programmatic advertising makes this easier and more efficient. It offers holistic solutions to marketers with respect to accurate targeting, effective retargeting, allocation of budget, meticulous data to understand user patterns, contextual ad placement, and so much more.
On that note, let’s begin the preparations for 2023 and see what it has in store for the future of programmatic advertising.
Which programmatic ad trends are in for 2023?
- 5G will accelerate the programmatic industry
One of the most anticipated ad tech trends or technological advancements is the arrival of 5G. This is going to impact the global market on many levels. It will lead to a dynamic display of content bringing about personalized and immersive experiences for the audience. 5G will open more opportunities for next-gen publishers. Experts suggest that mobile advertising, OTT consumption, and advertising, and video ad formats like DOOH are expected to accelerate after 5G due to faster and easy accessibility to data. 5G is also expected to take the gaming market by storm. It will unlock a new streaming media and ad format- AR/VR advertising.
- Digital Out-of-Home (DOOH) advertising
We hear billboards are making a comeback and it is absolutely true! But with a twist. Digital Out-of-Home (DOOH) advertising is nothing but Out-of-Home (OOH) advertising fueled by ad tech. DOOH is an ad tech trend that everyone must utilize. It is real-time advertising that offers tracking, customization, retargeting, and attribution. DOOH has revolutionized the ad-buying process and from a business perspective, it has been highly engaging and lucrative.
- Voice-activated advertising
Brands are out there finding ways to connect to their consumers on more personal and emotional levels. Enter voice-activated ads! These are vocal ads that are interactive and leave a lasting impression on the users. This ad format has led to higher conversions as it gives the users an option to respond to the call to action. The key to making the most of this ad format is to be concise, target accurately, and be compelling with the brand message.
- Rise in White Label Software or Platforms
White label software offers third-party production and first-party ownership. To put it simply, it is a software that has all the right tools for carrying out designated operations but zero branding leaving the scope for owners to work on it. White label DSPs have been gaining prominence in the past couple of years as they have proven to be highly cost-effective. They are ideal for advertisers, publishers, advertising agencies, or even developers. It is ideal for marketers who want to go programmatic, use first-party data, and have more scope for optimizing bidding rules and floors.
- Programmatic campaigns run in-house
Programmatic in-housing is a trend that took off sometime in 2020 and is still prosperous. They are highly cost-effective which makes them an ideal choice for markets during the current economic scenario. But running programmatic ads in-house has many more promising and extended benefits that make them a coveted ad trend even in 2023. It provides a meticulous inspection of media buying, reduces the possibility of ad fraud, prioritizes data privacy, and is compatible with new advertising channels.
- In-game advertising
The gaming industry has been burgeoning for a few years now and with the advent of 5G, the growth is about to skyrocket. The global ad market is expected to invest more in this ever-growing ad media. The number of gamers is about to reach three billion and the majority of this fraction is established by APAC. The growing user base as well as the established gaming industry in this region makes it a top target for global marketers.
- OTT and CTV ads
OTT and CTV are revolutionary channels that experienced rapid growth during Covid. 2020 was the peak content-consumption year. The rise in this consumption directly led to a rise in ad spending. A GroupM -Kantar study reported that India is home to 20 to 22 million internet-enabled TVs. It also stated that the advertising spends on these connected TVs is estimated to increase to $86 million in 2023 and up to $395 million by 2027 at 47% CAGR. Sporting events like IPL and FIFA being telecasted on OTT platforms and CTV have accelerated ad spend growth in APAC. Factors like smart targeting, cost-effectiveness, optimization, and scope to abide by current events also make these channels a powerhouse of digital advertising.
- Contextual targeting replacing third-party cookies
2023-24 will be the year when third-party cookies will become history. It’s time that publishers start focusing on first-party collection as a priority. Third-party has been successful in tracking user activity and offering a customized experience. But marketers want more. In the cookieless world, contextual targeting will take over. It can be achieved with first-party data only. Contextual targeting will make ads more relevant and hence drive more impressions.
- Multi-channel marketing
Multi-channel marketing can be highly resourceful and lucrative. With the changing consumer demands come new media channels. Marketers need to capture these channels to capture growth. Programmatic advertising makes multi-channel marketing easy. The automated targeting and allocation of ad space saves time and brings real-time results. It also provides expanded reach, increased engagement, reaching the consumers where they are, and diverse targeting.
- Testing various ad categories
One of the prime benefits of programmatic advertising is that it gives a wide scope for experiments. It helps publishers find their best-performing inventories and ad categories which leaves more room for testing. Users are exposed to the internet for hours a day. To make them stop scrolling and take action, marketers need to upgrade their creatives consistently, call to action, strategies, ad formats, and media channels to find the ones that drive higher yields. Persuading with repetition has not been in vogue for a while. Exploring and testing will be the highlight of programmatic advertising in 2023.
With each year come new trends, challenges, and experiences. Combined together, they all make for opportunities to rethink and reinvent the previous trends. Marketers should look at the changing landscape of programmatic advertising as a catalyst for improved business performance. 2023 is all about unlocking the true value and revenue potential of businesses by experimenting with these ad tech trends. Marketers must keep an eye on the fluctuating market and economic conditions. They should adapt to these dynamics and new ways and direct them to provide intuitive, assistive, and creative experiences to consumers.