AdNews asked industry figures for their assessment of 2022 and outlook for next year
Sonal Patel, Managing Director, Asia, Quantcast
I don’t think anyone disagrees that 2022 has been one of the most challenging years to date. COVID was ostensibly one of the biggest drivers of change this year, and at the same time the economy has gone through some painful volatility. For example, a slew of ad tech and data businesses that either went through an IPO, reverse merger, or special purpose acquisition company (SPAC), in 2022 have seen sharp declines and the advertising market has mirrored this.
Volatility has also been the name of the game when it comes to consumer behaviour, demand and even things like workplace practices, which have cumulatively caused constant friction and affected business growth.
Amidst all the ups and downs however, there has been a cacophony of interest in sustainable advertising, data clean rooms, buyer path optimisation and of course cookieless, the latter of which has been given a two-year reprieve by Google. And whilst the demise of third-party cookies heavily steered the direction of the ad tech industry from 2020-2021, it’s no longer dominating the list of challenges that companies are facing. More and more, businesses are moving on from being at the mercy of the tech giants and becoming better equipped for life after cookies, and that’s a good thing.
Connected TV (CTV) is slated to show enormous growth with the news of more ad supply from the likes of Netflix and Disney, which has stirred strong interest among advertisers. I predict that 2023 is when we may see the largest push into CTV buys, especially if there is a recession looming globally and spending in other market segments dwindle.
By all accounts the year was a bumper; plenty of business, however, many complained of a lack of talent. And then there’s the heavy workload, and the shifting nature of the way we work. What are your views on other challenges and opportunities to come in 2023?
In the coming months, I think the war on talent will subside due to businesses declining as a result of a looming recession, which will see many roles being held back for the time being.
As a result, we will continue to see a more challenged workforce pressured to balance the same workload and continually find more ways to do more with less. Companies that have built solutions to help leaner marketing teams speed up campaign execution and allow users to spend more time on other parts of their role, will add plenty of value in times like these.
On that, there is plenty of opportunity for businesses to fill skill gaps by adopting the right tech. Optimised AI and simplifying tech stacks are going to be key to 2023. Other opportunities that will naturally come for some businesses will be mergers and acquisitions, due to a slew of recent stock market debuts. I anticipate this will likely lead to talent teams in media restructuring even further in 2023, but also improving speed to innovation and adoption as they do so.
Brands who have survived COVID will realise that in times of recession or any global downturn, investing in their brand is key to their sales and business goals and continued marketing investment is a necessity. However it is likely as an aggregate we may see some decline in ATL advertising.
Predictions for the media industry in 2023:
1. CTV budgets will ramp up as household spending in several sectors declines due to the looming recession and inflation, resulting in reduced disposable incomes and rising demand in in-home entertainment consumption. Streaming companies are likely to boom as ad-funded models popularise, with companies such as Netflix and Disney paving the way for others to follow suit.
2. There will be more mergers and acquisitions in advertising simply due to the opportunity and expanded growth opportunity as some social media advertising diverts to the open internet.
3. Brands will realise there is no need to ‘buy’ consumers on a social media platform. Data, AI and precision targeting can help them find their audiences with smarter ways on the open internet.
4. Disintermediation between advertising companies will likely become collaboration or what we call ‘frenemy alignment’ –friends who also were enemies. There will be a blurring here based on survival.
5. Retail businesses will push for their own bite of the advertising pie and be seen to be more like their own walled gardens.
6. The new 2023 buzz word will be Generative AI.
7. ESG and sustainable advertising is here to stay.
8. The Metaverse will not be a real consideration amongst businesses at least in the first half of 2023, as experimental media will be held back due to economic turmoil.
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