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PMG’s Mary O’Brien shares her optimism as she explores media’s expanding growth opportunities.
Recession or endless opportunities waiting to be seized? / Scott van Hoy via Unsplash
An emarketer recently lowered its 2023 U.S. digital ad spending forecast by $5 billion. This is because expected macroeconomic headwinds such as rising inflation, geopolitical instability, economic recession and supply chain disruptions have negatively impacted planned marketing budgets.
The macro environment of 2023 will put pressure on marketers to respond to changing economic conditions. As a result, many advertisers tighten their marketing budgets in preparation for the economic slowdown. Many brands will cut their budgets and lower their forecasts. Some brands (disadvantageously) back off their spending on awareness and testing at the top of the funnel.
But experienced brands will learn lessons from history by investing in the recession and gaining competitive cost advantages while driving long-term growth for their brands. Marketers who are willing to spend less will be able to take advantage of specific media opportunity areas. These include cookie-free solutions and growing channels such as connected TV and ad-based video on his demand.
1. Cookie-free solution and future proof
Marketers will have a unique opportunity to test cookieless solutions before Google Chrome’s cookie deprecation in late 2024.
PMG has already seen that cookieless impressions are twice as cost effective (compared to cookie-targeted impressions). This will also help brands position themselves well for Google Chrome’s upcoming cookie deprecation.
With costs low and cookie tracking still enabled in Google Chrome, now is the time to test and learn what solutions will deliver business results before the uncertain future of identity tracking.
2. Growth Channels: Retail Media and Connected TV (CTV)
Overall digital ad spend forecasts have been revised downwards, but not all media formats are equally impacted. Growing media channels such as CTV and retail media networks offer marketers opportunities for innovation at scale and at lower costs than expected in the long term.
In addition to cost efficiencies, the intersection of connected TV and retail media networks will allow CTV, for the first time, to take responsibility for sales metrics through partners such as Amazon and Walmart, enabling real-time optimization and optimization across CTV. Allows for budget allocation. Connected TV’s increased accountability to sales targets comes at a perfect time in the current macroeconomic climate and the growing need for all media investments to drive business performance.
3. Unique opportunity for ad-based video on demand (AVOD)
In 2023, AVOD is uniquely positioned as the appeal of ad-supported content goes hand-in-hand with consumer desire to cut costs amid inflation and subscription fatigue.
Deloitte predicts that by the end of 2023, all major subscription video-on-demand (SVOD) services will launch an ad-supported tier to complement their ad-free options. 2022. AVOD revenue is expected to triple his video subscription revenue by 2027, further demonstrating that the video landscape is changing significantly. This move to AVOD provides a competitive advantage for marketers investing to reach consumers with premium content that was not previously ad-supported.
Marketers who remain agile in their approach and continue to invest in full-funnel marketing will realize short-term cost efficiencies from reduced competition while driving long-term brand growth. By investing in cookie-free solutions, retail media networks and video, the marketer will have limitless opportunities to drive competitive brands his edge into her 2023 and beyond.
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