January 5, 2023
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Ad Tech to Take Meaningful Steps in 2023: Advancing Identity, TV and Retail

Clients, partners and peers alike are looking for creative solutions to buoy themselves through uncertainty without stalling innovation and growth. Our bets are on identity, advanced TV and retail media.

By Elizabeth Herbst-Brady, Chief Revenue Officer, Yahoo

Happy New Year!

With 2022 in the rearview mirror, our sights are set on 2023 - taking into account the learnings, challenges and opportunities of the past year. And while the world has seemingly settled into a post-pandemic ‘new normal’, many are bracing for economic headwinds - in addition to the continued deprecation of online identifiers. Clients, partners and peers alike are looking for creative solutions to buoy themselves through uncertainty without stalling innovation and growth. And where will the focus lay? Our bets are on identity, advanced TV and retail media. All three harness the power of creative and data in a cookie-crumbled world.

Addressing the Non-Addressable 

While ID-based solutions abound, 2023 will be the year the industry finally begins to address - in earnest - the non-addressable. With new privacy laws making even more supply non-addressable - regardless of user login/registration - the need to embrace omnichannel solutions that don’t rely on IDs or solve solely for registered users will become more apparent. Further, in an uncertain economic environment, embracing non-addressable enables advertisers to realize cost efficiencies, as non-addressable supply is less expensive than addressable. Addressing the non-addressable will be an omnichannel challenge, not limited to web.

The power of first-party data and the value of direct consumer relationships will continue to be a focus in 2023, driving more power for publishers and differentiation for platforms.

Measurement Advances for Advanced TV

Growth for advanced TV was monumental in 2022, as was the continued proliferation and fragmentation of streaming services. The common denominator the industry is still looking for is measurement - across channels, devices and streaming services, as traditional measurement tools had been unable to account for this in a cohesive way. In 2023, the measurement challenge will be tackled with vigor, and features like ACR and set-top-box data will become more coveted. As with most makings of success, the key to thriving measurement solutions will be data.

Better measurement will lead to better optimization, supporting the gold standard of 1.) understanding and delivering the right ad frequencies between traditional linear and advanced TV tactics; 2.) managing the rest of your digital campaigns against those frequencies in the right sequence; and 3.) proving - through measurement - that ROI was achieved, and then optimizing for the next campaign.

As CTV, linear addressable and programmer linear addressable gain traction, and television becomes more addressable overall, measurement in turn will advance as advertisers will be able to tie channels together in a more cohesive, data-driven way.

Media Networks Advance Beyond Retail

Retail Media Networks were the hottest accessory for major retailers in 2022 and opened up new and meaningful revenue opportunities. In 2023, we’ll see other verticals like Travel and Auto ramp up, and off-site activations will gain popularity as on-site matures. Further, Retail and other vertical Media Networks will begin to approach their strategy in a more full-funnel model; activating against lower funnel, while expanding larger branding and awareness opportunities to drive loyalty and value for consumers. Both of these moves will bring more interest and opportunity for non-endemic advertisers.

Lastly, as measurement makes the top prediction lists across topics every year, Retail Media Networks in 2023 will be no different. Measurement across Media Network campaigns is diverse, and advertisers will push for more standardization and cohesion in order to be able to activate across networks.

The start of a new year is a chance to refresh, refocus and dig in. And even amidst economic headwinds, the industry is primed for meaningful change and opportunity. I’m welcoming 2023 with open arms and look forward to moving the industry forward together.

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