Predictions 2023 – Adtech

Predictions-2023-Adtech-Image by Geraldine Dukes from Pixabay

In our final Predictions 2023 look ahead, we’ve asked the adtech world how it sees the year ahead.

Economic uncertainty means customer budgets will shift, and new regulation and the drive for greater transparency and sustainability in the adtech sector means copanies will have much to deal with…

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Giovanni-Sollazzo-Founder-Chairman-AIDEMGiovanni Sollazzo, Founder & Chairman of AIDEM

“In a challenging climate, it’s critical that marketers seek to remove hidden fees from the media supply path. Indeed, by removing these fees, it is possible to improve results without extra, unnecessary spend. 

“What’s more, fraud free advertising is achievable and buyers should demand it. Technology can help here. 

“For too long, the ad industry has been operating opaque practices but, more than ever, transparency is required. A healthy media ecosystem also enables marketers to fulfil their objectives whilst protecting the privacy of their audiences. 

“In 2023 we expect more sophisticated approaches as we continue to build a better ad tech ecosystem, centred on sustainability, privacy and transparency.”

Chloe-Nicholls-iab.jpgChloe Nicholls, Head of AdTech, IAB UK

“Firming up a strategy to replace third-party cookies should be an absolute priority for all businesses in the digital advertising industry in 2023.

“We know there won’t be one single replacement to third-party cookies, so now is the time to be trialing alternative targeting and measurement solutions to see what works best for your objectives.

“As an industry we have the opportunity here to create and leverage solutions that are compliant with current data protection laws by design, rather than retrofitting pre-existing strategies to keep pace with changes in this space.

“I’d also use this opportunity to appeal to brands and agencies who aren’t already supporting best practice initiatives such as the Gold Standard to not put off this important step as the recession starts being felt more widely.

“Doubling down on best practice makes even more business sense when budgets are under pressure.

“Every company in the digital ad industry has a role to play in upholding shared standards and doing so is essential in driving the industry forward next year and beyond.”

Ned-Jones-Head-of-Advertiser-Customer-Success.jpegNed Jones, Head of Advertiser Customer Success, Permutive

“In 2023, reachability will overtake addressability as the key audience metric in programmatic. 

“If the various data privacy laws being enforced in 2023 weren’t indication enough, consumers are taking matters into their own hands. 

“Users browsing in cookie-blocked environments and, or independently disabling cookies, renders 70% of consumers on the open web unreachable.”

“Reachability allows advertisers to access target audiences outside of the other 30%, where much of traditional programmatic buying practice is focused today. 

“Next year will bring a new way of buying and selling media, solving reachability issues and prioritising consumer privacy, without reducing advertiser and publisher revenue.”

James-Leaver-multilocal.jpegJames Leaver, Founder and CEO, multilocal.media

“With the economic outlook in 2023 looking shaky, more advertising budgets will likely shift towards digital and more specifically programmatic.

“At the same time, the digital landscape will continue to evolve and become increasingly complicated with new platforms, formats and data challenges driving ever more signals to interested buyers. Understanding this landscape and knowing how to navigate it will be crucial.

“Curation services are becoming increasingly important as they allow agencies and marketers to improve supply strategies; gaining control over the way inventory is being bought whilst reaching audiences at scale.

“Certainly we must, as an industry, simplify the way digital media is bought and sold. But while much has been done on the buy side to improve efficiency and results, the supply side remains relatively untouched.

“In the new year, we believe this will continue to change with a developing service layer helping to reduce friction and waste and drive optimisation.

“After all, in a challenging economic climate, those investing in digital media must ensure maximum efficiency and effectiveness.”

Chris-Swarbrick-omg.jpegChris Swarbrick, Managing Partner, Omnicom Media Group UK

“Evolution not revolution with many trends continuing from 2022. Identity, leveraging 1PD, and regulation will be front of mind for many, with anticipated developments such as privacy sandbox testing, TTD’s EUID testing, but also the impact of TCF investigations in Europe and ongoing regulator reviews of major platforms. 

“Marketers will be looking at how to mature ad tech stacks to generate performance, efficiency, and incremental value against economic headwinds. 

“We will likely see further transition of activity into CTV and video environments. At a macro level we will need to see if major platforms can reverse 2022 financial performance declines.” 

Heather-Lloyd-Head-of-Product-Marketing-Nano-Interactive.pngHeather Lloyd, Head of Product Marketing, Nano Interactive

In August, Gartner announced helpful insights into advertising trends it expects to see in future, including around AI and contextual advertising.

First, Gartner highlights emotion AI, which it interprets as understanding users’ emotions, though this concept is questionable from a privacy perspective. 

“Instead, true potential in emotion AI comes by switching focus to context, measuring sentiment in the moment.

The second trend is generative AI, such as DALL-E, which uses AI to generate creative images, based on command prompts. 

“An example of a commercial application involves allowing advertisers to understand all of the different models belonging to a specific car brand – but also which of those models compete with other brands’ car models, all achieved via machine learning.

“Whether for media planning, or creative, the applications of and options around AI are growing. 2023 will be the time we take experimentation and understanding in this area to the next level.

James Prudhomme, CRO, OptableJames Prudhomme, CRO, Optable

“In 2023, the ad industry will see more publishers and advertisers adopting the data clean room approach.

“It’s my hope that interoperability standards will prevail, despite resistance from some vendors. 

“This is key to helping advertisers achieve their objectives.

“In this context, forward thinking brands with well developed first party data strategies look set to benefit the most, while clean room media will, increasingly, enable privacy-first monetisation; thereby enabling more advertisers to achieve precision and performance through exclusively available audience data. 

“This is all hugely positive, with this new ecosystem giving consumers more control and privacy protection than ever before.”

Matt-Nash.jpegMatt Nash, UK MD of Scibids

“Economic uncertainty, the increasing fragmentation of the media landscape and its drive toward greater privacy will see brands make efficiency of ad spend a priority in 2023. 

“As a result, there will be a tangible shift in focus toward the ad stack, as marketers look to maximise both performance and cost effectiveness. Artificial Intelligence (AI) solutions will be key to achieving this, especially customisable algorithms. 

“This is because they can utilise privacy-compliant user data to inform custom-media buying, significantly improving reach and productivity.”

Gavin Bowick, Senior Analyst, DAC Group

“Tracking and privacy are still in an arms race, but it’s time to accept that privacy will win. Marketers will find it increasingly challenging to join the dots between ads and conversions. 

“But this presents a first-mover opportunity to those willing to give up on following click trails in favour of embracing statistical models for attribution and media mix modelling.

“One of the biggest AdTech trends for 2023 will thus be a shift in thinking and a move away from tracking cookies, pixels and tags. User journey visibility may decline but marketers will still know what what the overall outcomes of their spend are.”

Charlie-Johnson-Digital-ElementCharlie Johnson, VP International (She/Her), Digital Element

“Privacy and relevance will be the twin forces dominating the adtech space in 2023.

“Amidst economic uncertainty, spending powers will become more restricted, which makes relevance critical: businesses and brands need to find privacy-first solutions that deliver on their targeting needs. 

“Only with quality data can companies truly tailor their strategies to meet these demands and advertisers must prioritise and scrutinise their data if they are to weather the continued turbulence expected around the corner.”