5 factors that will drive the adtech industry in 2023
LiveRamp APAC COO, Melanie Hoptman, shares her five key themes from the adtech industry that marketers need to be aware of in the year ahead.
Privacy concerns and recession rumours were some of the hurdles marketers faced last year. As the advertising land buckles up for a roller-coaster 2023.
Marketers had a tumultuous year in 2022. The explosion of retail media networks, growing signal loss from antiquated identifiers and navigating ongoing hurdles like privacy regulation and a looming recession – just to name a few.
As we prepare for the new calendar year ahead, marketers, retailers, publishers and their partners will need to sharpen their advertising strategies to drive efficiency, better proving ROI and deliver on consumer expectations.
Media networks rise beyond retail
The world has well and truly embraced the retail media network revolution. This comes as no surprise as media networks allow retailers to compete for more upper-funnel marketing dollars that would traditionally have gone through a generalist platform like a DSP.
This year, retail media networks are set to continue to rise, but we can also expect media networks to grow beyond the retail space to other verticals with sought after data sets, such as travel and financial services.
For retailers, those who don’t already have a media network will likely explore alternative ways to monetise their data through DSPs and other partners. With 90% of Australians preferring in-store grocery shopping (Australian Online Grocery Report 2022, Spryker), retailers will also seek new ways to monetise in-store assets to reach consumers.
Data collaboration becomes a necessity
We can expect data collaboration to proliferate this year as marketers look to increase ROI during a wobbly economy. For example, only through data collaboration with partners will brands or CPGs gain a 360-degree view of consumers and fine tune their customer’s journey. Data collaboration will also grow as even more brands build up their first and zero-party data sources and have more information to securely share with partners.
It’s needless to say that data collaboration has now become a competitive necessity.
Data utility meets data privacy
Data regulations were already a focus area for companies in 2022, and after the data breaches towards the end of last year, privacy-first data has become an absolute necessity.
In 2023, brands will have to regain customer trust and demonstrate their commitment to protecting data and privacy-enhanced marketing strategies, such as data clean rooms, are expected to rise in the coming months.
CTV will be a bright spot and growth driver amidst advertising’s macroeconomic woes
As consumers step away from traditional TV habits, we project to see a massive shift from using the scale of linear TV for brand awareness to a hybrid, cross-screen approach of bundling both traditional TV and streaming/CTV campaigns, which brings together the best of both TV scale and digital precision audience personalisation.
With the emergence of premium ad-supported models at Disney+, HBO Max, and Netflix, CTV will enter its next phase of growth. Consumers have to authenticate to access these services, meaning these models will unlock 100% addressable audiences, making them more appealing to advertisers.
What’s more, marketers building omnichannel views of their customers will be able to finally connect impressions on these platforms together for a holistic cross-screen view while tying these impressions to real world events, such as in-store transactions. This will help brands better target consumers and measure campaigns.
Melanie Hoptman is the COO for LiveRamp Asia-Pacific.
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