As we are winding down 2022 and looking toward 2023, it is incredible to see how much progress has been made this year alone. While there have certainly been challenges, I think that across the industry we’ve shown that we can rise to the occasion and work together collectively to make the experience better for brands, publishers and consumers alike.
Faced with so many changes, advertisers are seeking out new strategies to successfully connect with consumers and the most compelling ad is the one that grabs the attention of viewers and drives engagement. Here are the top trends we expect to see next year and beyond.
1. Full stream ahead: the merger of streaming and linear. With the explosion of available streaming opportunities, the TV advertising business today looks a lot different than it used to. In addition to traditional advertising on linear TV, advertising within streaming environments allows brands to reach larger and more diverse audiences than ever before.
Today’s streaming giants like Netflix and Disney+ are adding ad-supported tiers to increase their viewership numbers. Although streaming made up one-third of television consumption among people in the U.S. as of June 2022, streaming companies are still trying to capture the other two-thirds that are watching elsewhere. The overall trend is that audiences are constantly diversifying their viewing habits, and publishers of all types are evolving to ensure growth.
With new viewing opportunities for consumers, brands will need to think holistically when trying to find their audience, especially as budgets are starting to get squeezed. Converged TV opportunities will be critical to reach brands’ overall audience, and they need to think about buying both linear and streaming to ensure they are reaching their most valued customers wherever they are. We see addressable TV as a unifying tool where advertisers can reach their audience holistically, with our offering available across linear and streaming in one unified buy.
2. Catching eyes (and keeping them) with innovative ad formats. Consumer attention is being pulled in a million different directions these days. With so much content overload, the need for creativity and innovation will play a critical role in the way advertisers think about how they earn the attention of their target audience and drive desired outcomes. According to a recent survey, 51% of respondents said they were agitated by ads that were not relevant to them.
As a viewer myself, I always prefer when an ad is both relevant and interactive. Brands are leaning in to differentiate themselves from the competition and build affinity by investing in engaging and innovative ad formats. This allows advertisers to interact with consumers in a nondisruptive way and encourage them to act, rather than passively view an ad or ignore it altogether. Between 2019 and 2023, the percentage of social users who make purchases on social platforms are expected to increase by 61%.
Looking to next year, we expect to see even more commerce and shoppable opportunities emerge, especially within the connected TV (CTV) space. Who doesn’t want to be able to buy the coolest new product that you’re seeing on TV with minimal disruption to the viewing experience?
At DirecTV, we’re always looking at new and exciting ways to engage with consumers, whether it be through interactive ads or using the pause experience. Pause Ads are one of the best tools at our disposal in offering a nonintrusive dynamic ad experience for customers that allows viewers to return to content at any time.
3. Making way for programmatic technology in TV advertising. Programmatic technology is revolutionizing TV advertising, with the digital space already capitalizing on automation, increased flexibility and transparency. Now we’re seeing programmatic technology transforming the TV space as well.
CTV is among the fastest-growing channels in digital advertising. Last year, CTV advertising spending in the U.S. was valued at $14.2 billion. In 2022, CTV accounted for more than one-fifth of total programmatic video ad spending, as well as one-tenth of total programmatic digital display. Since CTV advertising continues to grow overall, the programmatic component of this emerging market is also enjoying an upswing.
Programmatic technology will continue to transform TV advertising as CTV revenue grows and demand site platforms like Yahoo begin to tap into linear addressable inventory. We know that addressable advertising increases the relevancy of ads for consumers, which improves overall viewing experience. Bringing programmatic to the addressable space can enhance the benefits for both the buy and sell side. Advertisers can identify their target audiences and create reach and frequency at scale, which is where programmatic plays an important role.
Consumers are first
As we look toward next year, the most important thing for all of us to keep in mind is that consumers are always the top priority. Advertisers know this, and many are making necessary changes in order to keep consumer attention and boost loyalty at a time when there is more competition than ever. In 2023, we’ll continue to see advertisers shift and blur their media strategies across linear and digital, innovate with more creative ad formats and utilize programmatic technology in an effort to meet consumers where they are now and flourish in a crowded field.
