Key Trends That Will Shape The Ad Space in 2023

by | Dec 20, 2022 | Industry Insights

A Look Back

The ad tech industry is an ever-changing, increasingly-competitive, fragmented space, full of acronyms, complex tools, ad networks, and lots of data. With the ever-changing nature of the industry, it’s important to remain one step ahead.

 

2022 brought a lot of growth to the ad tech space, showing no signs of slowing down heading into the new year. The ongoing digitization trend and the rise in spending to improve workflow and productivity of employees is expected to fuel the market growth in the coming years.

 

The increasing investments into the flourishing advertising industry are further expected to influence the market demand.1 While 2023 will bring even more growth, advertisers will be looking for more capabilities around measurement and optimization and ROI generation.

Ad Spend Forecast

Looking back at the industry this past year, advertising revenue grew by 6.5%.2 Despite the economic downturn, large ad spend declines were limited to certain markets and are not reflective of the overall industry’s health. It seems that through 2022, large advertisers are still growing revenue, unemployment remains low, new business opportunities remain steady and digital media is still growing.

 

As we head into 2023, a notable trend emerging is the forecasted growth of connected TV—which should see double-digit increases next year and account for one-third of total TV spend by 2027,2 as it continues to steal dollars previously allocated to linear investments. TV advertising as a whole will grow by 1 to 3%2 over the next five years, reflecting how much certain traditional investments pull down the category as a whole.

 

With ad spend predicted to have positive growth, it’s vital to make sure your ad dollars are being allocated correctly. Working with an experienced media partner to optimize and measure ad performance in real time should be an investment brands are willing to make going into 2023.

What should advertisers and agencies expect in 2023? Here are some predictions from the Digital Remedy Team:

 

A Look Ahead

1. There Will Be More Focus on Data-Driven Strategies

As streaming continues to grow in popularity, so too has “subscription fatigue,” the sense of being overwhelmed by the amount of content available. Audience media consumption will continue to shift, which will not only be a challenge in the CTV space next year as consumers rotate through streaming services but also across all media platforms. Due to this shift, brands need to be agile with their strategies, which should be powered by data such as audience insights and campaign performance.

 

Data is at the heart of the business, and advertisers and agencies that are not leveraging it will be at a disadvantage. OTT platforms have access to owned audience data on what is being watched within their networks, as well as when and how they’re watching. And while there’s a lot of room for more detailed audience insights, the data they have now can allow streaming platforms to utilize data-powered content strategies that are more likely to resonate well with audiences.3

 

 

2. CTV will be the Fastest-Growing Performance Channel

The rise of ad-supported streaming on CTV is an opportunity to deliver real, measurable outcomes and will continue to become a focus for marketers in 2023. Streaming giants such as Netflix have announced ad-supported subscription tiers with favorable pricing in exchange for advertising within content. This year, ad-supported streaming will generate $19.1b and by 2024,2 marketers will spend $29.5b on CTV advertising. With all of the new inventory, the streaming space is becoming increasingly competitive. Advertisers have more ways to reach consumers than ever before, leveraging targeting and performance reporting is key to ensuring ad dollars are being utilized.

While brand awareness is critical, many marketers focus on driving (and measuring) bottom-funnel actions, such as website visits, in-store visits, and purchases. Improvements in measurement for upper-funnel media are coming fast and furious. These improvements are showing that lower-funnel media can have branding impacts, and upper-funnel media can have performance impacts that will be highlighted heading into 2023.

For more on Performance TV, check out our report.

 

 

3. Cross-Channel Campaigns Will Be Essential

CTV has been increasing in popularity with advertisers, but with the economic downturn, advertisers will focus on channel diversification in 2023 and follow their target audiences more closely wherever they’re watching. Consumers today are using many different screens and devices for streaming media, and advertisers need to make sure they are keeping this in mind. Running cross-channel campaigns can create touch points throughout the customer journey that will keep their brand top of mind.

A successful performance CTV strategy has a lot of moving parts. Utilizing real-time measurement to drive decisions and focus media budgets on the highest-performing channels will be a key CTV strategy to pull into 2023. To be effective, marketers must meet audience expectations for personalization, which means taking a dynamic and agile approach with targeting and execution.

 

4. Contextual Will Continue to Appeal to Privacy-Focused Advertisers

Contextual targeting, which enables marketers to target users online based on contextual signals rather than third-party data, offers far more privacy for individual web users, and this is critical as we move towards a world without cookies. This means targeting the right user at the right time on the right channel with a personalized contextual message—without third-party data tracking.

First-party data infrastructure will be crucial for effective brand advertising. We see this marketing trend continuing, helping advertisers provide targeted experiences to key consumers through audience segmentation and smart audience management with the help of technologies.4

For more on the privacy-focused future of advertising, check out our talk.

 

 

5. Advertisers Can Take Control with Self-Service Platforms

With the goal of optimizing ad spending for ROI, marketers want to save time and money to ensure efficiency. That being said, many differing situations require varying needs when it comes to advertising platforms. Self-service platforms enable advertisers full control, where transparency is right at the tip of their fingers. When advertisers have the freedom to book their own campaigns, not only do they get an intimate, full-control experience, they also have the “natural” space to trial different aspects and elements within their campaign process. This includes budget, targeting, and creative adjustments.

For more on our self-service OTT platform, speak to a member of our team.

 

 

How Digital Remedy Can Help

Backed by over 20 years of experience in the ad space, Digital Remedy is a leading digital media partner for advertisers looking to maximize their advertising efforts. We provide unique targeting tactics to extend reach beyond linear, connecting with the right audience, in the right mindset, as well as granular attribution and reporting to understand the true impact of every variable within your campaign.

Digital Remedy offers performance-focused solutions, where brands gain access to a sophisticated reporting dashboard to monitor their campaigns on multiple channels, and real-time insights to optimize towards the KPIs that matter most. In addition to optimization, and granular, transparent bottom-funnel reporting, Digital Remedy provides a new standard in tracking, transparency, and results that will maximize your marketing efforts and optimize your 2023 ad budget.

Ready to turn these trends into actionable concepts for your 2023 media plan? Speak to a member of our team.

 

Sources

  1. PR Newswire: Worldwide Ad Tech Industry Report to 2027 – Key Drivers and Challenges
  2. Adweek: GroupM’s 2022 Forecast Is Rosier Than Expected, but Not Great
  3. Resonate: 3 Connected TV Developments to Watch in 2023
  4. Adpushup: Ad Tech Trends That We Can Expect in 2022

Mike Seiman

Mike Seiman, CEO & Chairman, is the founder of Digital Remedy, a digital media solutions company leading the tech enabled marketing space he co-founded while still a college student at Hofstra University in the early 2000s. The company has grown quickly and is now a major player within the crowded digital advertising landscape. The rapid growth of Digital Remedy, formerly CPXi led to its inclusion on Inc. Magazine’s list of fastest growing privately held advertising/marketing companies in 2008, 2009, 2010 and 2014. Mike was selected as a semi-finalist in Ernst & Young’s Entrepreneur of the Year initiative in 2010 and 2013 and as a finalist in 2009 and 2014. In his free time, Mike serves on the Board of Trustees of his alma mater, Hofstra University. He also focuses on numerous philanthropic initiatives including sitting on the boards of the H.E.S. (Hebrew Educational Society non-profit community center) and Children International, where he spearheaded the development of community centers in both Guayaquil, Ecuador in 2010 and Barranquilla, Colombia in 2014.

David Zapletal

Before graduating in 2005 with degrees in Retail and Consumer Science (with an emphasis in eCommerce) and a Minor in Public Business Administration at the University of Arizona, David Zapletal had already successfully grown a start up ad network from serving an initial 1 million impressions per day to over 10 million impressions per day. It was his deep understanding of internet advertising during the industry’s beginning stages that led him to another start up at the time, CPXi. More than 8 years that have passed and Zapletal currently serves as Chief Operating Officer for Digital Remedy. In that role he continues to help grow and implement optimization tactics across various ad serving platforms, oversee daily operations of the account management and trafficking groups and maximizes ROI for Direct Response advertisers as well as for Publishers. Outside of Digital Remedy, Zapletal commits his efforts to an organization called Camp Dream Street, a camping program for children with disabilities, where he serves on the Board of Directors.

Jeff Reitzen

Jeff has worked in multiple facets of the online industry, from sales to operations as well as consumer engagement, content analytics and most recently in data optimization. His career began as a wedding, bar mitzvah, and Sweet 16 DJ where he learned the delicate balance of crowd energy management. Quickly, this skill made him incredibly successful in managing online sales for Geico. He joined CPXi at its startup stage as employee number 4 and has been a key driver of continued growth. His unique knowledge of what converts in the digital ad space, the application of data, and how to optimize platforms for efficiency continues to be invaluable to Digital Remedy clients. Today, Jeff is responsible for innovating and optimizing all Digital Remedy offerings including platforms, systems, tools, and internal processes—ensuring the organization remains on the precipice of the marketplace.

Mike Juhas

Mike Juhas, has over 13+ years of experience in ad tech client services, working with brands, agencies, and publishers ranging from top 10 advertisers to small regional organizations, to rep firms, holding companies and independent shops. An integral member of the Digital Remedy team, Juhas leads all client relationships, including facilitating onboarding and integration, establishing relationship protocols, overseeing Quarterly Business Reviews and status meetings, navigating financial coordination, and overseeing 24/7 team support. His specialties include consultative services, planning strategy, and account management disciplines. Juhas lives in New Canaan, CT with his wife and two daughters, and their dog, Perry–the unofficial company mascot.

TJ Sullivan

TJ Sullivan has over 20 years of media sales and leadership experience. His knowledge of the digital media landscape, ability to develop strategic solutions that solve brand challenges, and talent for motivating sales teams, have made him a vital member of several media and ad tech organizations. Before joining Digital Remedy, Sullivan was VP, Connections at iHeart Media, a cross-divisional group that enabled national advertisers to seamlessly work with multiple iHeart business units; CRO of Reelcontent, a video distribution company for brands; SVP of sales at AdoTube, a video ad network; and was Co-Founder and SVP of video measurement company, OpenSlate—for which he is still an advisor.

Sullivan had served as the President of 212, New York’s Interactive Advertising Club, and currently advises many early stage start-ups in the programmatic and video space. Notably, RUN (sold to Publicis in 2014), Futures Media, Transmit.Live, and Kubient.

Outside of his work in the media industry, Sullivan sits on the Board of St. Elizabeth School in Wyckoff, New Jersey and the Advancement Committee of St. Peter’s Prep in Jersey City, New Jersey. He resides in New Jersey with his wife and four children.

IP Zone: Leverage the relationship between users and the location of their IP addresses in a cookie-free, safe and scalable way.

Behavioral: Combine first party with network analytics and enormous scale to define custom audience channels that are optimized to sites with high brand engagement.

Demographic: Reach the right audience based on demographic characteristics such as age, gender and income.

Mobile Device: Target users by mobile device type (Smartphone, tablet, etc.), carrier and operating system.

Geo-Location: Target your audience residential cluster, proximity to retail locations, campaign level DMAs and more.

Contextual: Place a relevant ad in front of a user who is reading content that contains specific terms.

Buying Power and Quality

Let’s be honest. Your ad ops are limited by your access to only a handful of channels and DSPs. You want more reach and better prices, but don’t want to sacrifice quality in order to achieve those goals. Digital Remedy has access to a vast multitude of channels based on relationships we’ve cultivated over nearly 20 years in business. That means we get the best prices, have personal relationships, and don’t get sent to voicemail when we call.

It also means that we can execute omni-channel ad ops for better prices than an internal team, while ensuring the quality is up to industry standards. On top of access to all sorts of specific audiences we’re able to to leverage first- and third-party data across all your campaigns and pivot across platforms based on results. Any campaign, any budget, any platform, any audience. Digital Remedy backed by AdReady is restriction free ad ops….and what could be better than that?

Resources, Time, and Overhead

When was the last time you enjoyed balancing budgets, reading resumes, dealing with aggressive sales teams, or wasting years of time for small gains in performance. By partnering with Digital Remedy you get the full support of $30m in OPEX including marketing teams, sales teams, and a dedicated 24/7 ad operations team. No hiring new employees for media optimization, business development, or account management. No months of training and on-boarding. No long meetings crafting sales materials. Just your team focused on making deals, and our teams and tech focused on supporting and executing those deals in a tech-enabled, digital ecosystem designed to get the most out of any KPI.

Reporting and Support

How nice would it be to have all of your data and insights in one location. We don’t mean an excel sheet sent out once a week with complicated charts, or an XML file with pages and pages and pages of tables (what is this, 2003?). We mean a fully customizable dashboard reporting in real time, or as real time as possible. You get to decide the how, what, and when of the reporting you’re seeing. And that’s ALL of the how, what, and when’s. If you want to see breakouts of all of the individual campaigns in your system, done. If you want broad scope comparisons of all of the campaigns in the last year, done. If you want to see CTR’s for specific audiences and compare them to CPM for your best performing advertiser but limit the scope to campaigns greater than 30k, done. All of this is at your fingertips with the AdReady Dashboard, all in one place.

Jessica Cortapasso

With more than a decade of experience in human capital management, Jessica Cortapasso serves as SVP, People at Digital Remedy. After graduating from Muhlenberg College, she quickly recognized her passion for people and entered the workforce in Human Resources where she gained expertise in employee relations, designing strategic benefit plans, and the development, implementation, and curation of corporate engagement initiatives for big-name brands and small companies alike. Becoming a member of the Digital Remedy family in 2013 while simultaneously acquiring her Masters Degree in Human Resources Management and Development from New York University, Jessica has steered company culture through significant events ranging from acquisitions and a rebranding, to the development and application of our Core Values that shape our daily business practices. Cortapasso resides in Brooklyn, plays competitive volleyball, and loves spending time with her nieces.

Erez Feld

Responsible for the financial and legal practices of Digital Remedy, Erez brings 22 years of experience in precision financial analysis, growth management practices, strategic acquisition, and investment leadership. A graduate of Hofstra University, Erez began his career modeling for corporate finance, and expanded his accounting prowess in the real estate sector. Erez joined Digital Remedy in 2008 as a senior accountant, and helped to create and build an accounting department that could support the rapid growth of the company and aligned with those needs. Over the past 12 years he has evolved through various positions at the company within the finance discipline, supervising and mentoring additional finance personnel, while growing under the tutelage of Michael Fleischman, former CFO of Digital Remedy. Today, he leads the Finance Department by supporting high-level projects such as acquisitions and restructuring, and is responsible for overseeing all financial assets, establishing financial procedures, controls, and reporting systems.

Michael Fleischman

After a successful career as an accomplished Fortune 500 financial professional leading Corporate Finance and Strategic Planning at Cablevision Systems Corporation and its programming subsidiary Rainbow Media Holdings, Michael currently plays a role in the overall management of Digital Remedy including direct responsibility for all financial-related activities including accounting, financial planning, M&A, legal, insurance, real estate and banking relationships. Michael brings more than 25 years of media experience at Cablevision and Rainbow Media and during his career was instrumental in the launching and managing of a number of cable television networks including 10 Regional Sports Networks across the US, American Movie Classics, Bravo, and the Independent film channel as well as the structuring of corporate partnerships with companies including Liberty Media, NBC, Fox/NewsCorp and MGM. Additionally, he was the finance lead on a number of professional sports team acquisitions including Madison Square Garden, the successful IPO of Cablevision and a tracking stock at Rainbow Media.Michael was involved in the creation and launch of Rainbow Advertising Sales which was one of the Cable Industry’s first Local Advertising Sales Divisions.

Tony Pascal

With over two decades of experience in the design, product, and technology space, Tony joined Digital Remedy as a graphic designer in 2007. His responsibilities quickly expanded, landing him in leadership roles across multiple disciplines including creative direction, analytics, monetization optimization, and management of platform development. He continued to grow with the organization over the last fourteen years, overseeing all design, development, and execution of Digital Remedy products and platforms. In his current role as SVP, Product & Technology, Tony leads product and technology development for the company and acts as the go-to liaison across teams, ensuring alignment on all aspects of internal and client-facing technology initiatives.

Prior to Digital Remedy, Tony built and ran his own direct response company from 2002-2007 after graduating from New York Institute of Technology, where he learned the fundamentals of digital advertising and optimization strategies that still remain relevant today.

In a previous life, Tony was a ski instructor and still remains an avid skier today. When he is not leading product development, he can be found working on old cars, rock climbing and hitting the slopes.

Gayle Meyers

Gayle Meyers is an entrepreneur, venture partner, investor, and operating resource in the digital media and marketing industry, with over two decades of executive leadership experience. After launching a management consulting firm, Growthing which is focused on optimizing growth strategies for executive leaders and their organizations, Meyers has frequently been tapped for high-profile consulting and advisory positions to help marketing technology companies enhance their in-market presence.

“Gayle is widely recognized as a leading strategist with years of expertise in the ad tech space,” said Mike Seiman, Chairman and CEO of Digital Remedy. “Her career in discovering and integrating game-changing technologies in the marketing industry will serve as an invaluable resource as we continue to enhance our product suite in the months ahead.”

With expertise spanning multiple disciplines, Meyers frequently serves as a keynote speaker at industry conferences for companies such as Google, Verizon, Omnicom, LiveRamp, LinkedIn, Twitter, and Oracle. A list of her notable past clients who have benefitted from her unique insights to increase shareholder value includes Tinuiti (acquired by New Mountain Capital), Adometry (acquired by Google), MediaForge (acquired by Rakuten), Integral Ad Science (acquired by Vista Equity Partners), and Tapad (acquired by Telenor).

Matt Sotebeer

With 14+ years of experience in ad tech and emerging technologies, Matt Sotebeer brings an uniquely innovative approach in his role as Chief Strategy Officer at Digital Remedy. As CSO, Matt focuses on the intersection between the product, product marketing, tech, data, and sales teams, while fostering productive cross-functional company-wide relationships to inform and influence sales, educate clients, and optimize company performance.

Matt has an extensive knowledge in the integration of data science, creative, and media solutions to drive sustainable growth for companies, with a focus on designing customized, scalable solutions leveraging machine learning alongside human intelligence. Throughout the tenure of his career, he has successfully managed global teams aligned to common goals, encouraged collaborative problem solving, and supported talent growth for entrepreneurial companies including MiQ, Rocket Fuel, and Audience Science.

Jeremy Haft

A proven strategic, revenue, and team leader with over 20 years of experience managing and scaling revenue in the competitive ad tech landscape, Jeremy serves as Chief Revenue Officer at Digital Remedy.

Before joining the team in October 2022, he served as CRO at Channel Factory, where he reorganized the revenue team for sustainable growth and increased the sales team by 3x to drive predictable and more accountable revenue. Prior to that, he served in a decade of leadership positions. Most notably, as SVP of Sales at Amobee and as VP of North America Sales at Viant/Adelphic. At both organizations, Jeremy successfully built and scaled platform and business solutions from their infancy to achieve the desired corporate goals.

Jeremy graduated from The University of Vermont and currently resides in New Jersey with his wife and two children. In his spare time, he enjoys traveling to tropical locations, dining out, cooking feasts with friends, and any new fitness trend he can get his hands on.

Randall Rothenberg

Randall Rothenberg has been a prominent leader in marketing, media, and advertising for 40 years. Most recently, he led the transformation of the IAB into one of the largest and most potent media and marketing trade bodies in the world, helping to develop technical standards, self-regulation, government regulation, market and consumer research, global digital content marketplaces, and professional development programs. Under his leadership, IAB opened the industry’s first major public policy office in Washington, D.C., launched the IAB Tech Lab to oversee digital marketing technical standards, started an industry-leading training program that has certified more than 14,000 digital media sales professionals, created the IAB Digital Newfronts and Podcast Upfronts, and published comprehensive research on brand disruption, the evolution of video, and the economic impact of the ad-supported Internet ecosystem. During Rothenberg’s 14 years as CEO, IAB quadrupled its association membership and quintupled revenue.

Randall has served on numerous nonprofit and commercial boards, including the Ad Council, the Columbia Journalism Review, the Advertising Self-Regulatory Council, the Chamber of Progress, the International Center of Photography, and the Executive Advisory Board of EDO, Inc. He is a magna cum laude graduate of Princeton University with an A.B. in the classics.

He is also an avid nature, urban, and portrait photographer—and Jazz guitarist.

Martin Kristiseter

Martin Kristiseter is an accomplished entrepreneur and digital executive with over 18 years of experience in digital media, ad technology, and programmatic solutions. He currently serves as the Managing Director of Compulse, a marketing technology and managed services company built for local media and agencies.

Prior to Compulse, Krisitiseter launched the digital advertising business at Marketron that transformed a declining revenue management & radio traffic business (SaaS) into a growth company through Pitch — an omni-channel workflow, sales enablement, fulfillment, and reporting platform for media companies.

He is a graduate of the University of Colorado, where he earned a BA and MBA in Finance.

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