3 Predictions for 2023 MarTech/AdTech Trends

2023 Sitting On Financial Graph Background stock photo..

By Paul Brenner, CSO, Vibenomics

We live in an increasingly digital world. And with the average person being exposed to between 4,000 and 10,000 ads each day while scrolling social media, streaming a show, listening to a podcast or browsing online, that’s a lot of noise. Ironically, because our brains protect us from information overload, we only actually notice or register about 100 ads from that deluge — and the number we pay conscious attention to? It’s even smaller.

Those numbers translate to increased competition among brands for a tiny fraction of consumers’ attention. Only the most impactful advertising is likely to land. Brands know they must maximize their marketing budgets to stay competitive, and they’re doing so by leveraging innovative advertising technology to capitalize on evolving shopping trends and consumer behavior.

Ultimately, brands want to elevate in-store by incorporating digital solutions that provide personalized shopping experiences. Taking an omnichannel approach to advertising — including implementing more programmatic strategies for brick-and-mortar retailers — is just one trend that will continue growing in 2023 and beyond. Here are three other trends anticipated for next year.

Trends in holiday (and regular) shopping

Last year’s shoppers tended to absorb inflation-driven prices because of the desire for normalcy in celebrating the holiday season. This year’s projected shopping statistics suggest a different story, with cost taking precedence over tradition. While COVID concerns have decreased, recession worries remain. Nearly 25% of Americans plan to spend less on gifts this year than in 2021, with just over 50% spending about the same.

To reel in customers with deals and promotions, retailers must pull out all the stops and utilize every omnichannel strategy available. The most successful brands this holiday season will be those willing to invest in the innovative in-store advertising strategies with campaigns designed to engage shoppers at the point of sale via:

  • Audio
  • Digital displays
  • Pop-up kiosks
  • Push notifications

Non-addressable markets

As paid search and social media advertising continue to underperform in 2023, in-store audio advertising, in-store displays, product placements and other non-addressable advertising tactics  will accelerate. Marketing executives, faced with waning data access, will finally start to realize the value of non-addressable markets for omnichannel advertising campaigns, even though using these strategies will require modifying targeting tactics.

As third-party cookies disappear, we’ll see a renaissance of journey-based brand awareness campaigns. To build brand awareness, identify new marketing channels — and ultimately reach their ideal customers — brands will revert to more traditional advertising tactics.

Brands will also continue prioritizing their in-store presence. After all, almost 75% of shoppers still visit grocery stores in person each month. This increased demand will drive innovation among retail media networks to deliver simplified solutions for brands to elevate their in-store advertising presence by obtaining consumer shopping behavior data and managing in-store advertising in real-time.

Brick-and-mortar stores — here to stay

Although we saw rapid e-commerce growth during the pandemic, online retail growth has plateaued as conditions have stabilized and people feel more comfortable shopping in-store. In 2022, physical stores have accounted for almost 90% of retail sales with 94% of customers resuming in-person shopping since 2020.

With such high percentages of in-person shopping, brands will continue to invest in retail media and expand their ad inventory to deliver an enhanced in-store experience. Brands will continue prioritizing their in-store presence and exploring ways to implement innovative technologies such as in-store Audio and Digital Out-of-Home (DOOH) to target key audiences.

Technology will never completely take over our lives. Forward-thinking grocery and retail chains will continue to take advantage of the technology designed to meet and educate us in physical environments, improving the in-person shopping experience.

Retail media remains table stakes for marketers, as it influences higher performance standards in brand advertising, making it more effective and less wasteful. Contextually relevant messaging with programmatic solutions empowers brands to target and capture consumers’ attention. Next year, expect to see retailers take further advantage of in-store audio as a way to engage with and deliver exceptional experiences to in-store shoppers.

About the Author

Paul Brenner joined Vibenomics as Chief Strategy Officer in 2019 to help develop the go-to-market strategy for the company’s first-to-market Audio Out-of-Home™ advertising solution. After a successful launch, Brenner was promoted to President of Audio OOH to oversee all efforts surrounding revenue-generating activity and related partnerships. He recently joined the DPAA Research Committee and IAB Retail Committee. Brenner has over 25 years of experience in media & entertainment, as well as technology leadership. He has served in several c-suite roles, including division President with Emmis Operating Company [NASDAQ:EMMS] and President of NextRadio/TagStation, where his work focused on global innovation through FM Chip activations in all smartphones for audience measurement, improved in-car user experiences, and data attribution platforms for all broadcast radio.

SIGN UP TO SKILL UP
The All Access membership allows you to discover 500+ hours of best in class thought leadership