It’s estimated that global digital advertising spend now exceeds $600 billion and much of that is driven by AdTech. These tools are used by publishers and advertisers to manage digital advertising on a large scale, which simply wouldn’t be possible otherwise. The AdTech stacks most marketers work with have evolved over time, with software platforms brought in to plug holes and integrate with other systems.
How your AdTech stack works within the wider ecosystem will depend on your business objectives, audience and budget. Like many aspects of the digital world, the evolution of your AdTech will be influenced by external trends as you strive to keep up with competitors and find new ways to maximize yield optimization.
AdTech trends 2023
The COVID-19 pandemic was hugely disruptive to marketing, making 2022 and the years that follow an interesting time to be in the industry. Here are six AdTech trends that are establishing themselves in the post-coronavirus world.
1. New approaches to programmatic
Programmatic advertising algorithms can’t be ignored, as they provide the information to understand the audiences most likely to convert into customers. Such advanced automated marketing tools allow for better targeted messaging to an audience where it will resonate deeply.
Dynamic ad insertion means video content can be delivered in linear, live or on-demand formats for a more personalized experience. Connected TV, which facilitates programmatic ad delivery, was the fastest-growing channel during the pandemic as video consumption rose dramatically.
Learn more: What Does the Future of Programmatic Advertising Look Like?
2. Omnichannel and digital out of home approaches
Traditionally, ad campaigns would be run across one or two channels, but they’re consistently being outperformed by those on four or more channels. This means marketers must embrace a diverse media mix in order to succeed, with digital out of home solutions an effective element.
These screens can be found in locations as varied as subways and shopping malls, driving customers into local businesses. They can react in real time, such as during busy sporting events, directing potential visitors to another pub or restaurant in the same chain if all the tables for viewing the action are taken.
3. A cookieless future
Third-party cookies have become so ubiquitous that Google’s announcement of plans to stop using them must have come as a shock to many marketers. While the search engine giant has stepped back its deadline for their removal to the end of 2023, the future will still be cookieless.
What this will look like is still to be established, but brands that adopt innovative approaches to their use of first-party data are likely to be rewarded. There will also likely be a shift towards zero-party, which is provided voluntarily by happy and loyal customer bases. Whether adopting first or zero-party techniques, AdTech based on cookies will need to be updated.
4. AI for advertising at scale
One answer to the issue of advertising without the use of cookies could be artificial intelligence (AI). This technology is able to process large quantities of consumer and advertising data at speed, facilitating advertising at scale and therefore bypassing individuals’ data.
Identifying trends and reaching out to customers in response to changes in behavior, AI has much potential for AdTech that hasn’t yet been realized. Tap into it and marketers won’t need to fear the end of the cookies era.
5. From impressions to attention metrics
Impressions have long been an ineffective metric for measuring ad views, as they simply tell marketers how many people could have potentially seen an ad, not those that actually did. This is where attention metrics come in, utilizing methods such as eye-tracking data, duration and position.
Implement these new metrics into your AdTech strategy and compare them across platforms to discover the best places to target your budget. A move away from impressions should cut down on ad fraud and provide a more accurate picture of the effectiveness of any campaign.
6. Harnessing the power of ID graphs
ID graph solutions are effective for segmenting audiences across devices and it’s expected more marketers are going to tap into this resource in the coming months. The number of solutions available has increased exponentially in the wake of news that Google is abandoning cookies, so software providers have faith in this trend.
To make the most of ID graphs, layer in IP data for better insight into your target audiences. That way your segmentation will be more nuanced and allow pinpoint targeting of customers. With so many new ID graph options appearing, make sure you carefully select the right one for your needs.
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