During the recent Virtual Programmatic Day event, organized by the Interactive Advertising Bureau (IAB) Europe, experts discussed 2022 in the field of programmatic advertising and identified the main challenges and trends facing the industry in the coming year. According to the participants of the IAB debate, including Maria Ramiro from Huawei, the digital advertising sector is currently undergoing enormous changes: from the withdrawal of third-party cookies in some browsers to changes in consumer behavior. That is why advertisers are forced to adopt a flexible approach to reach, engage and retain audiences.
Selling services and products online means competing not only with other brands in local markets, but also on the international stage, which affects the cost of acquiring users. The tendency to use many devices and channels leads to an increase in the churn rate and makes user retention more difficult. Therefore, in 2023, the ability to retain them through deep interactions with multiple touchpoints across all smart devices and location-based services will be crucial.
#1 Catching micro-moments across multiple devices
2022 was a rollercoaster for the industry. It began optimistically, when workplaces reopened and advertisers focused on reaching consumers in offices again. Very quickly, however, it became clear that hybrid work would stay with us and that instead of returning to using one or two devices, consumers would use multiple devices in many places.
– Users are now scattered not only across different devices, but also across many channels. The consumer churn rate on a single platform is too high, and we know that they are more likely to buy a product if they have encountered the message across multiple channels. At Huawei, we have adapted our offering to include personalized ads not only on laptops and tablets, but also on smartphones, audio devices, and in information channels, on the pages of Huawei Assistant or Search. Thanks to this, advertisers can reach users in micro-moments and strengthen their engagement – said Maria Ramiro, WEU Head of Huawei Ads Business Development.
#2 Personalized and innovative ads
The 3 most important digital advertising trends in 2023
IAB panelists admitted that the challenges related to “cookie-free environments” and the current economic climate have caused uncertainty among advertisers. However, over the past year there has been a greater emphasis on measurement and metrics – this trend will also be visible in 2023. The future for brands lies in accurate, contextual ads that will automatically become more personalized. One panel member noted that due to economic and technological changes, brands have an increasing appetite for a more holistic approach.
#3 Sustainability will drive change
Sustainability emerged as one of the priorities in the IAB survey conducted after the panel session among the organization's members. When asked: “what will be the main priority for the programmatic industry in 2023,” 29% of respondents chose “solutions for third-party cookies,” 20% chose “new channels” 20%, and “sustainability” was indicated by 13% of voters.
Summary
In 2023, digital advertising will have to meet the demands of hybrid work, which forces reaching users across multiple devices and channels, as well as the challenges related to the withdrawal of cookies. According to IAB experts, micro-moments, contextual advertising and investment in sustainability will be key. In the IAB survey, 29% of members identified cookie solutions as the most important priority, while 13% pointed to ecology.
