Evolving economic concerns have wide-ranging implications for the future of digital advertising. After decades of low rises in interest rates and consumer goods prices, The Reserve Bank of Australia advises that high inflation is here to stay, and warns households to prepare for continued cost pressures, and repeated interest rate hikes.
The digital advertising industry finds itself at a similar crossroads, as content consumption habits shape new digital behaviours, while economic uncertainty impacts the size of media budgets. On the other hand, platform updates, the ongoing battle over identity, and increased regulatory scrutiny means we must move faster each year to create a fair and efficient marketplace.
As consumers continue to access digital content on a plethora of devices, the consumption experience is becoming more fragmented. Only heightened by growing inflation, consumers have maxed out the number of subscriptions they’re willing to pay for, from streaming services to gaming apps. This impacts the media owner’s ability to provide a truly connected omnichannel experience in an efficient and effective way – which is especially important when ad budgets are shrinking, and marketers are demanding results.
This was the topic of discussion during our recent webinar featuring Index’s regional managing director of APAC, Adele Wieser, Foxtel Media’s executive director of agency sales, Nev Hasan, and GroupM’s general manager of specialty business, Nick Brignell.
The trio sat down to discuss the challenges that lie ahead with evolving digital consumption habits, and why ad-supported mediums are the digital advertising industry’s bright spots for 2023.
Here are the top three takeaways about the future of digital advertising:
1. Marketers need to be agile
As economic pressure mounts, marketers will be pressed to pivot their media strategies more quickly than ever before. The pandemic helped to accelerate the ability to re-plan and shuffle media buys, particularly across digital channels. In 2023, speed to market and efficiency is going to be key factors for media planners, media buyers, and marketers in their ongoing bid to respond to shifting consumer sentiment, and the insatiable demand for digital content.
2. Content viewing hours are shifting
In the early days of traditional TV, viewers would watch the most popular shows offered by broadcasters, which aired at scheduled times. Today, viewers demand access to their favourite shows whenever, and wherever they want.
In Australia, the standard TV viewing hours of 6-9 pm are shifting based on consumer desire for on-demand access. Consumers no longer need to rush home for the 6pm news hour, they know they can access content from major broadcasters and streaming platforms, later, and on any digital device. It’s up to us as an industry to provide a medium that is in line with the content and the experience consumers crave.
3. Ad-supported models will fuel premium online video growth
Premium online video is the key channel marketers will funnel their ad dollars into in 2023. The reason? It’s where the audiences are. The average Australian household has access to at least two streaming services.
The introduction of ad-supported streaming with the likes of Netflix, and more recently Binge, has made more ad inventory available in the marketplace. This provides marketers with more opportunities to reach audiences that are becoming more difficult to find on traditional mediums like linear TV.
Learn more about how innovation in programmatic will improve efficiency across channels in 2023.Back to blog