Advertising Predictions for 2023

From data privacy to the rise of chatty AI like ChatGPT, and a desperate plea for better advertising ethics, we make our Advertising Predictions for 2023. As we buckle up for the future, let us peer into the crystal ball to see how these trends will continue to evolve.

Advertising Prediction 1: Data Segmentation to Audience Consolidation

As user privacy takes the spotlight and third-party cookies make their exit, Google and Meta have made drastic changes to revamp their targeting capabilities.  As of this month, Google has started to phase out similar audiences. Likewise, Meta made changes to its customer match policies last year in line with iOS14+ updates, resulting in narrower match rates. 

I predict that these audience changes will lead to a more streamlined audience funnel. Say goodbye to segmentation across your remarketing strategies.  Instead, expect a shift towards broader audience sets. Advertisers will need to combine high-intent audience lists, allowing platforms to test and learn with limited data, to yield stronger return on investment.

Advertising Prediction 2: Moving Towards Holistic Reporting

Amidst the ongoing changes in the digital media landscape, the focus primarily revolves around third-party cookies,  whereas first-party data remains largely intact. This means that advertisers should shift their focus towards holistic business trends, utilising real-time sources of truth, such as platforms like Google Analytics, PowerBI, or Shopify.

Both in-house marketing teams and agencies should analyse business data to identify key performance trends. By aligning these trends with platform data, we can make informed media investment decisions based on accurate, owned data.

While user privacy takes centre stage in 2023, it’s important to understand that changes in advertising platforms mainly affect reporting rather than audience reach. Facebook reported a 1.81% year-on-year growth in Q1 2023, and TikTok usage is projected to grow by 28% by year-end. Users are clearly still active on these platforms. While it may be tempting for brands to reduce their investment due to the loss of reporting, successful brands  will be those who know what data to seek and ask the right questions.

As such, I anticipate that uplift studies, will gain more importance for brands assessing their return on ad spend. These studies will address crucial questions like, “Did my investment on this platform contribute incrementally to my goal?” or “Is this channel driving incremental uplift towards my business objective?” (You can read more about how uplift studies will function here).

Advertising Prediction 3: Data Ethics in Advertising

The media landscape is undergoing a significant shift in terms of ethics and user safety. Advertisers are facing increased pressure to uphold their ethical responsibilities regarding user privacy, transparency, and authenticity. In particular, there is greater legislative pressure on advertisers as well.  In Nov 2022, a bill was passed, with proposed changes to Australia’s Privacy Act, aimed to granting citizens more control over their personal information, including the ability to opt out of targeted ads, erase personal data, and sue for serious privacy breaches. 

 More recently, some of the proposed changes to Australia’s Privacy Act focus on banning targeted advertising for children and vulnerable groups. The IAB (Interactive Advertising Bureau) and AANA (Australian Association of National Advertisers) are calling for a balanced approach, considering the potential impact on the Australian economy and advertising industry. Targeting capabilities offer tailored content and brand safety measures,  so banning these practices could expose vulnerable groups to harmful content without proper controls.

This trend is expected to continue into 2024 and beyond, with advertising facing ongoing pressure from legislative bodies regarding targeting and data handling. However, further debate is likely to arise as we assess the implications of restricted targeting on areas like content filtering, safety controls, and sensitive content categories.

Advertising Prediction 4:  AI

As we enter the era of automation and AI, the future of marketing is a topic keeping advertisers on their toes. With Meta and Google’s dynamic, automated products and the rapid adoption of ChatGPT and similar technologies, the possibilities seem endless. However, as automation rises, the importance of original thought and strategic thinking is becoming more paramount.

In my view, advertisers have a responsibility to ensure ethical and effective use of this technology for businesses and individuals alike. While evolving AI technology promises greater efficiency in our roles, our roles will remain necessary as experts in marketing and media investment strategy.

Undoubtedly, we are witnessing an exciting time in media. The landscape is evolving at an unprecedented pace. Whilst some changes appear daunting and ambiguous, I’m excited to see how the industry evolves.

If you’re curious to learn more or want to prepare your business for the future media landscape, reach out to our team of ADMATICians today.