There’s no doubt that the advertising industry is facing strong headwinds as we approach the year’s end. Consumer spending is down, inflation is up, and there’s a looming recession.
These challenges will require marketers to remain nimble: an eMarketer study found 50% of US marketing leaders plan to change their marketing channel investments in the next six months as a result of the economic outlook. We’ve never experienced this level of agility with the hefty scale of digital advertising today.
With challenges come opportunities. Though MAGNA reduced its overall 2023 advertising forecast, it still expects digital ad sales to grow by 10.5%. This is in large part due to connected TV (CTV), which will see 33% growth in 2023 thanks to new entrants and a booming ad-supported streaming market.
To help guide your plans, our team is sharing their top programmatic ad trends and predictions for 2023.
Prioritizing efficiency in an uncertain economy
The most overarching of the programmatic ad trends that we’ll see next year is marketers finding creative ways to maximize their resources. With budgets under scrutiny, marketers will focus on efficiency and prioritize measurable, performance-based media investments.
Realizing the true value of automation in CTV
CTV viewership has surged across all demographics—nearly 84% of all US households use a CTV. But it’s important to remember that CTV is still in its early innings with ad spend lagging viewership.
While the industry undoubtedly needs to continue to innovate to deliver the optimal buying and viewing experience, we’ll see existing improvements to ad podding, signaling, and standardization come to fruition and accelerate a shift in media spend in 2023.
Viewers don’t differentiate between streaming and linear TV—they simply tune in. As media buyers similarly consider the consumer experience, technology and automation will be able to facilitate more holistic and addressable TV buys.
Improving transparency and measurement in maturing channels
One of the key programmatic ad trends next year will be improving transparency and measurement to provide marketers with visibility into where their ad spend is going. In CTV, OpenRTB 2.6 was a major step in providing a consistent way to signal content information, and paves the way for media owners to deliver improved transparency.
Building a fair mobile ad marketplace
Next year will finally accelerate the trend toward fair monetization in the mobile ecosystem. Shifting market dynamics are increasing the importance of ad monetization and will encourage a transparent and balanced marketplace outside of the existing walled gardens.
Ready to shape your 2023 plans? Our team is here to help. We’ll guide you through the programmatic ad trends to come and arm you with an action plan to prepare for a successful year.
Lori Goode is the Chief Marketing Officer at Index Exchange, leading its global marketing strategy and enhancing its brand visibility. She also oversees learning and development and sponsors the company’s sustainability and DE&I efforts.
With nearly two decades in digital advertising, her expertise and experience spans across various domains from ad operations to brand marketing. Prior to Index, Lori led the marketing and training organization for Amazon Ads globally, launching its first advertising conference and leading a major brand relaunch for the org. She also held notable leadership roles at Meta (formerly Facebook) and Microsoft. At Index Exchange, Lori has driven transformative changes, redefining the company’s mission and brand identity, and launching "Index Explains," a video series on programmatic advertising. Lori actively champions sustainability and DEI, serving on Index's sustainability committee and the board of BRIDGE, a global DEI trade group. She is also an active member in Chief, a network dedicated to connecting and supporting women executive leaders.
Lori resides in New York with her husband and twin daughters.