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As early as the summer of 2022, forecasters have begun to moderate ad spend growth projections for 2023. After last year’s turmoil, the outlook isn’t all that different. The pace will be slower, but the budget will increase over the next 12 months. more than I thought.
Against the backdrop of the economic and geopolitical crisis, rising inflation, supply chain disruptions and technological change, marketing intelligence company WARC has cut $90 billion from its original 2023 advertising spending forecast, reducing its budget to It is forecast to grow 8.3% to reach $880.9 billion.
As a result, marketers continue to increase their spending on online video, social media, and gaming channels, while abandoning traditional offline media.
But rapid growth in digital spending is expected to slow again this year, according to a new survey of 1,700 brand leaders conducted by WARC for its global study, The Marketer’s Toolkit 2023: Future of Media.
Data reveals that growth in pure digital advertising plummeted to 5.5% from 42% in 2021 after a boom amid easing Covid restrictions. As marketers change their approach to media planning in 2023, companies like Google and Facebook will have to compete harder for advertising dollars. TikTok will be a winner along with retail media platforms from 2023, he said, WARC.
Flexible media planning
Marketers are under pressure to be effective and show ROI for their budgets, with more than a third (34%) saying media and audience fragmentation will be a concern heading into 2023. He said it was one of the biggest reasons.
As a result, the marketing team plans to adopt a more fluid approach to planning that emphasizes the importance of community over basic demographics in segmentation.
When asked how they expect their investments to change over the next year, 66% of marketers said they would invest more in targeting interest-based fandoms, and 63% said they would invest more in gaming channels. I replied that I was planning to.
More than half (52%) expect to increase their investment in social media influencers and creators, and a further 65% say they want to work with content creators to “focus on specific interests that are truly connected to their brand. We plan to connect with communities along the lines of.
In parallel, TikTok is increasingly being looked at by brands as a space to tap into niche interests and foster individuality and community, but 76% of marketers expect investment to increase in 2023. ranked as the top platform for YouTube comes in second, with 57% of marketers planning to put the Alphabet-owned platform high on their media seat. Google ranked him third with 53%.
Nadia Morozova, Global Measurement and Insights Lead at consulting firm EY, said:
“From a research perspective, companies will move from traditional types of segmentation (age, gender, education, location) to segmentation based on identifying and understanding different consumer attitudes and psychological need states. I have to find a way.”
Following the Elon Musk-induced exodus of top advertisers, Twitter came close to the bottom of the platform, with just 19% of advertisers saying they would spend more this year. Snap was in the same position.
Against the broader digital slowdown, retail media is increasingly favored by advertisers. Unilever, one of the world’s largest ad spenders, is already one of the companies betting heavily on the medium, and according to WARC, he is now the fourth largest medium by ad spend. increase. According to GroupM, global investment in retail media platforms in 2022 will reach $110.7 billion, and in 2023 he will reach $121.9 billion.
Similar to the power shift, media buying is also likely to become more conscious in 2023. More than half (54%) of WARC US respondents said their 2023 media plan recommendations would include more diverse publishers, reflecting the importance of underrepresented audiences .
However, with only 34% of advertisers planning to include low-carbon alternatives in their 2023 media plans, there is still an education gap, especially around the impact of digital media on the planet.
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