DIGITAL ADVERTISING TRENDS TO WATCH IN 2023: FROM PROGRAMMATIC TO AI-DRIVEN CAMPAIGNS.

Background Theme

As the world becomes increasingly digitized, advertising has undergone a major shift from traditional to digital channels. In 2023, businesses will continue to rely heavily on digital advertising to reach their target audiences, but the landscape is constantly evolving, and staying ahead of the curve is crucial for success. Here are some of the top digital advertising trends to watch in 2023:

  1. Programmatic Advertising: programmatic advertising is the use of automated technology to buy and sell ad space in real-time. In 2023, programmatic advertising is expected to continue to grow, with advertisers leveraging machine learning and AI to optimize their campaigns for better performance and efficiency. In 2023, programmatic advertising is expected to account for 86.2% of total digital display ad spending in the United States.
  2. Interactive Ads: Interactive ads are ads that engage with users in a more dynamic way than traditional ads. These ads often involve some sort of gamification or interactivity, which can increase engagement and retention rates. In 2023, we can expect to see more interactive ads across various platforms. A study by Innovid found that interactive ads have a 47% higher engagement rate than non-interactive ads. Also, Snapchat’s “Swipe Up to Play” interactive ads have seen engagement rates as high as 5%, compared to the average of 2% for mobile ads.
  3. Native Advertising: Native advertising is a form of advertising that blends in with the content of the platform it appears on. In 2023, native advertising is expected to grow, as consumers are more likely to engage with ads that feel organic and less intrusive. According to Business Insider, native advertising spending is projected to reach $52.75 billion in 2020. Additionally, a study by Sharethrough and IPG Media Lab found that native ads are viewed 53% more frequently than banner ads.
  4. AI-Driven Advertising: AI has the potential to revolutionize advertising by providing insights into consumer behavior and preferences that were previously unattainable. In 2023, we can expect to see more AI-driven advertising, where machine learning algorithms will analyze data and optimize ad campaigns for maximum effectiveness. A report by MarketsandMarkets estimates that the AI advertising market will grow from $2.7 billion in 2019 to $10.6 billion by 2024. According to an article by Forbes, AI-driven ads can increase click-through rates by up to 50%.
  5. Video Advertising: Video continues to be a popular medium for advertising, with more and more businesses investing in video content for their ad campaigns. In 2023, we can expect to see more short-form video ads, particularly on social media platforms. According to a report by Wyzowl, 87% of businesses use video as a marketing tool, and 91% of those businesses feel that video is important to their marketing strategy. A study by HubSpot found that video ads have an average click-through rate of 1.84%, which is higher than other ad formats.
  6. Voice Search Advertising: With the rise of smart speakers and voice assistants, voice search is becoming more prevalent. In 2023, businesses will need to optimize their advertising for voice search queries and consider developing specific ad formats that are tailored to voice. A study by PwC found that 71% of consumers prefer using voice assistants to perform simple tasks. According to a report by Alpine AI, voice commerce sales are expected to reach $40 billion by 2022.

As digital advertising continues to evolve, businesses must stay on top of the latest trends to ensure their advertising efforts are effective and engaging. By leveraging programmatic advertising, interactive ads, native advertising, AI-driven advertising, video advertising, and voice search advertising, businesses can stay ahead of the curve and reach their target audiences in new and innovative ways.