With 2023 fast approaching, it’s important to revamp your marketing strategy for the future. Everywhere we turn, we see content platforms adding commerce, commerce platforms adding advertisements and content, and vice versa. Everyone is looking for innovative ways to engage and monetize its people. Let’s explore the trends in media that are predicted to influence the marketing strategy of 2023.
Ad- based VOD (AVOD) eats subscription VOD (SVOD)
- Despite the fact that the entire video streaming sector is predicted to increase further, reaching 1.636 billion people by 2027, it appears that some consumers may terminate their subscriptions in order to save money. However, users will continue to subscribe to a streaming service, only shifting their choices within the market supply.
- The two largest premium streaming services, Disney and Netflix, have announced that ad-supported tiers will be available by the end of 2022. Netflix user counts have been flat for the past two quarters, and Disney now has more premium memberships through Disney+, Hulu, ESPN+, and Disney+ Hotstar. Let’s not overlook the Asian OTT services like iQiyi, Viu, Fim+, Vimeo, After Disney+ and Hotstar, Viu is now one of the top streaming services in Southeast Asia in terms of paying subscribers. Viu’s MAUs surged by 23% to 60.7 million in the first half of 2022, while the number of paying members rose by 31% to 9.1 million. Ad-supported tiers might raise the overall number of subscribers (a critical statistic for investors) while also bringing in more cash from advertisers keen to place their messages in Netflix content for the first time.
- With increased economic limits on consumers, streaming platforms competing in an increasingly expensive content arms race, and innovative technology enabling more targeted and creative messaging, AVOD is poised to enter a new era of supremacy.
Gathering zero-party data through practices like form building
- With third-party data becoming obsolete, zero-party data has arisen to assist advertisers in personalizing their advertising efforts to the appropriate demographic.
- Individuals contribute data in exchange for anything of value at these instances. In exchange for this information, several organizations provide webinars, special events, white papers, e-books, and other content. Other internet features, such as pop-ups and chat flows, are also useful for collecting data and engaging with contacts. Marketers should decide what data to acquire through forms, registrations, surveys, questionnaires, and so on, ranging from contact information to demographic data.
- Marketers should avoid gathering too much data at once. Users may walk away if they are asked to fill out too much or unneeded information, so marketing teams must strike a balance.
The cookie finally gets debunked:
- The advertising business has been developing solutions and seeking alternatives since Google declared that Chrome will no longer allow third-party cookies, joining Apple and Mozilla in removing/blocking cookies from their browsers.
- As a result of the changes, virtually all marketers (98%) are being forced to take proactive actions to prepare for the future. This would pave the way for new ways of collecting customer data such as UID or universal ID’s, which provides consumers with more control over how their data is being used. Check out the complete article on UID 2.0.
AI will take center stage
- It is expected to be the most important technology adopted, transforming key processes and business models to take advantage of ML. With the necessary algorithms, compute power, hardware, and skill sets, AI can become the fundamental driver for revenue and growth.
- Over the past several years, chatbots have emerged as one of the leading centers of AI innovation. They may be incorporated into a multitude of use cases, making them a perfect illustration of how AI is being adopted. One such example is ChatGPT, a straightforward chatbot that answers queries in-depth, solves arithmetic problems, writes texts and articles, summarizes texts and groups them, and fixes and debugs code, among other things.
- The media industry is centered around the customer as the customer has become more powerful than ever before. Globally, organizations are acknowledging that the customer is indeed king and cannot be ignored. They know that if they wish to sustain & grow, they have to keep the customers’ needs at the forefront of any decision making. Digital transformation is pushing businesses to be customer-centric, and today, consumer AI in e-commerce, retail, mobile, social, and other areas is largely focused on driving a better customer experience.
- Our proprietary algorithms leverage brand’s log level data to identify the most valuable consumers and predict the value of new visitors using machine learning. Read our most recent article to understand how Bidmath leverages artificial intelligence and machine learning for programmatic advertising.
Social commerce will rise and fall
- By 2023, 45% of customers will prefer to buy straight from their favorite platforms, but they also prefer a more streamlined experience. Although Gen Z is the most likely to use this function, with 52% eager to buy, everyone anticipates a faster browsing and purchasing experience.
- The area is currently on track to outperform prior projections and reach $360 billion by 2025. Consumer and merchant behavior, as well as increased investor interest, will propel the SEA area to $1T GMV by 2030. Social commerce, however, is still getting off the ground because it is so new. But as more people turn to making purchases on social media, social commerce is expected to quickly overtake the e-commerce market.
People want brands to put people and the planet before profit
- The coming year will see disruptor brands focused on sustainability take a larger share of the market. A greater backlash against potential “greenwashing” claims will result from more discerning consumers challenging ecological claims. According to the study, 82% of consumers want businesses to prioritize the well-being of people and the environment over their own financial interests.
- There is a shift toward purposeful, moral, and sustainable business practices. It challenges the way we think about conventional profit-based models by emphasizing business as a “force for good.”
- More emphasis will be placed on a brand’s authenticity as Generation Z’s purchasing power increases. In fact, according to a survey of Gen Zers, 82% said they trust brands more when they use real-world customer images in their marketing than when they don’t.
- When evaluating a brand’s marketing success, authenticity is arguably the most valuable metric. According to a survey conducted by Social Media Today, 90% of millennials agree that brand authenticity is key when making purchasing decisions. Although authenticity is crucial to both short-term and long-term success, it can be a challenging concept for companies to grasp.
Gaming is the new social media playground.
- With an estimated 3.2 billion video game players worldwide in 2022, gaming has become a mainstream activity. This has not gone unnoticed by technology platforms and media outlets, which are actively working to incorporate gaming elements into their offerings as a means of attracting and retaining audiences.
- Social media apps are increasingly using gaming content. When Facebook first launched, games were a big part of the experience. Games like FarmVille became popular with users for a while and were featured in the news feed until Facebook changed its algorithm.
- It’s 2022, and we can see that Twitch.tv, Youtube Live and Facebook Live have come full circle. You’ll have noticed that gamers aren’t the only ones streaming content anymore. Despite competition from other streaming platforms, Twitch continues to dominate the market. It appears that these game broadcasters are here to stay based on their rise since COVID.
- When you use these platforms these days, it may appear that half of the content is from accounts you do not actually follow, with explanations like “Based on your likes” or “Accounts you follow also follow.
- The endless feed on TikTok, which is based on observed interests and trending content instead of follows, is the platform’s most significant innovation. Although users’ feeds vary, this is largely due to the algorithm rather than people they have consciously chosen to follow.
- Services such as Instagram also rely on algorithms, but until recently the algorithms picked the content users would see from accounts they followed rather than broadening the pool to include all content on the platform.
- This demonstrates how the content shared on social media is now much more important than the user’s popularity or the number of followers they have. Now, if a piece of content is deemed to be worthwhile by algorithms based on likes, shares, video views, and other factors, it is much more likely to go viral and to be seen by new users.
Predictive analytics will disrupt marketing
- Marketers have already begun integrating predictive analytics into their marketing campaigns due to the predictive models equipped with AI-powered mechanisms, which accelerate the performance and scalability of the campaigns.
- Predictive marketing will also transform the advertising industry because it fosters a bond between brands and consumers. Marketers will work to cater to users’ needs by offering them individualized content based on their deep insights. Along with streamlining business operations, this also maximizes marketing efforts.
- Predictive analytics has altered the way that many organizations conduct their operations. Following the adoption of this technology, organizations across practically all industries saw significant advancements. From a marketing perspective, efficiency savings in cost per acquisition, videos views and audience reach are all benefits of stronger predictive models.
With customers constantly embracing new mediums, businesses must catch up. It’s important to introduce and test new channels, and don’t forget to employ fresh techniques.