Advertising Trends for 2023 to Start Your Year off Strong

Update January 4, 2023

Starting the new year off strong will help you build momentum for a successful 2023. And updating your sales strategy now is going to give you the head start you need. But the landscape changes quickly, and things that were true a year ago may no longer apply. So let’s look at some of the most important advertising trends you need to know.

2023 promises to be a challenging year for advertisers and marketers alike. The economy's direction looks increasingly uncertain, and Covid continues to make an impact as markets readjust to a more pre-pandemic situation.

On top of that, increasing restrictions on advertisers’ abilities to collect data have made it harder to track and target audiences.

Advertisers will have to work harder to understand their target audience and how to reach them.

But these challenges also provide opportunities to do things differently and accelerate innovation.

With an understanding of advertising trends for 2023, those who can adapt will be in the best position to respond to any unexpected changes and succeed.

Key 2023 Advertising Trends to Watch

It is a good idea to check from time to time whether the advertising channels you are still delivering the best ROI for your target audience.

Facebook is the leading social media platform and will continue to attract the most advertising dollars and provide the biggest ROI in 2023, according to research by HubSpot. Facebook is followed by Instagram, YouTube, Twitter, TikTok, and LinkedIn.

However, the same research shows that TikTok in particular and YouTube and Instagram are expected to grow faster than Facebook next year.

On the other hand, Twitter has become a wild card following Elon Musk’s efforts to drastically reorganize the company and make it more profitable since taking it over in October 2022. Whether he’ll succeed or not is still unclear.

2. Generational Change Brings New Attitudes

A client checks a Viral Solutions social media page on her phone.

While Millennials reached their zenith at 40% of the adult population 2 years ago, the even more technology-dependent and savvy Gen Zs are becoming an increasingly influential sector as they mature into adulthood.

These demographics dramatically affect how advertisers reach younger generations. A growing number of people receive ads, discover new products, do their shopping, and search for content on social media mobile apps.

Not only that, but newer consumers are expecting businesses to step up in terms of transparency, personal service, and social responsibility too.

Advertisers need to understand what media their target audience uses and engages with to reach the most customers and achieve the best ROI.

Content marketing, including blogging, and email marketing, aren’t going anywhere soon. Graphics, carousels, and images are still highly effective for social media.

In addition, most marketers see search engine optimization (SEO) and keyword building as necessary to grow the reach of their organic content.

But one of the most significant advertising trends is how consumers embrace videos, especially short-form ones.

Videos

Videos already account for the vast majority of internet traffic and are much more likely to land on the first page of the search results than other SEO tactics.

Videos offer the highest ROI of any media format, followed by images, blog posts, and podcasts.

Short-Form Videos

Short-form videos will continue to see the most growth in 2023, attracting an increased advertising investment and ROI. While TikTok started the short-form video trend, Instagram, Facebook, and YouTube quickly adopted their version of shorts.

According to Google, YouTube Shorts has 1.5 billion monthly active users, making the platform a big opportunity for advertisers going into 2023.

Apart from achieving high engagement and great ROI, short videos are an extremely cost-effective way to create highly effective advertising copy with just a smartphone.

Augmented Reality

Buying ad space in the metaverse, where people share immersive experiences in a virtual world, has been touted as a burgeoning opportunity to reach audiences as an increasing number of people go there to shop.

The number of views has grown 38% to 15 million since last year, with the trend expected to continue into 2023, according to DigiDay.

However, there are mixed signs about which direction this advertising trend for 2023 is heading and whether marketers and advertisers are ready yet to invest in Virtual Reality (VR) and Augmented Reality (AR).

4. Customer Experience and Personalization Matter

A Viral Solution client on a blue sofa in the waiting room thinks it deserves 5 stars for customer experience.

Advertising is no longer just about making people aware of your products or service and selling them to a target audience

Advertisers’ roles have increasingly blurred with marketers with the understanding that the sale is just the start of the relationship. The aim is to keep customers loyal and advocates of your brand.

This comes as technology takes the buying experience to new heights in terms of efficiency, convenience, personalization, and accountability. Customers will continue to expect this level of service and attention as we enter 2023.

Consumers are more likely to buy products from companies that provide a personalized experience at every stage of the customer journey including targeting, content delivery, and customer service.

Rather than reading from a script, agents need to take a conversational approach to build a rapport with prospects. Direct messaging can help make these interactions more personal.

5. Data-Driven Results vs. Privacy

Having a full data set is more critical than ever as advertisers strive to improve their reach and engagement in increasingly saturated markets segmented across different media types.

Data is necessary for understanding and locating target audiences, creating strategies, choosing tactics, and providing content that prospects can relate to.

Undoubtedly, advertisers who collect data to strategize and choose advertising tactics will be in the best position to succeed in 2023.
There’s the catch, though. And it’s a big one…privacy

Privacy

One of the most consequential recent advertising trends affecting the ability to target and personalize data will continue into 2023. That is a growing movement to protect consumers’ internet and social media privacy.

Consumers have become less trustful of how social media companies and advertisers collect and use their personal data. And some of the biggest gatekeepers of consumer data have responded to the demands for more privacy.

Apple, for example, introduced protections that enable iOS users to opt in rather than opt out of third-party tracking. Browsers, including Safari, Google Chrome, and Firefox, are also phasing out or blocking third-party cookies by default.

According to Ad Age, efforts to phase out third-party cookies have halved the number of indicators available for marketers to use.

These new restrictions have upturned how marketers and advertisers can track consumer behavior across the web to target content at a time when data has become more important than ever.

Without third-party cookies, it’s much harder to collect data from across the web on target audiences’ shopping habits, needs, and preferences.

The phasing out of third- party cookies has made it much more difficult for marketers to track user data, but also to target users with relevant ads. There is less data available to you to target your ads, leading many marketers to have to spend more to get the same results.

Some states are also jumping in to regulate data collection with new legislation, some of which could become law in 2023.
Therefore, marketers and advertisers will have to be more proactive about collecting data and adopting new ways to get around one of the most challenging 2023 advertising trends.

First-party data is going to be more important now than ever before. This is data collected and owned by the company gathering it, which oftentimes is collected on your website (user browsing activity, actions taken, pages/products viewed, etc.). A popular way to gather first-party data is to offer a piece of valuable content (like an ebook) in exchange for their email address.

In addition, it could mean businesses have to advertise more with social media platforms that track every user’s keystroke, diversify advertising channels, partner with influencers, or collect real-time data through chatbots and messaging apps.

Advertising Trends and Innovations Needed to Survive and Thrive in 2023

From the unpredictable economy to changing generational expectations to finding workarounds for data collection roadblocks, here are some advertising trends that will help your year start strong.

One Advertising trend for 2023 likely to accelerate because of increasingly restrictive privacy measures, and generational social media expectations, is the ability to use social media not just to advertise and promote products but also to sell directly to users.

An increasing number of social media platforms now enable users to buy products they see promoted through Instagram Shopping, Facebook Shops, and TikTok Shopping.

2. Influencer Marketing

In recent years, TikTok, Instagram, and YouTube have enabled businesses to partner with creators and influencers to advertise, promote, and sell goods directly to their fans.

TikTok’s Creator Marketplace also enables brands to find influencers whose fan base matches their products and services.

In 2022 the global influencer market was valued at $16.4 million, according to Forbes.

As advertisers and marketers look for solutions to reaching their audience without the benefit of third-party tracking, collaborating with influencers will become an even more crucial part of their advertising strategy in 2023.

When advertisers work with influencers, they’ll be able to promote products to fans who match their target audience. With shoppable posts, the influencers can sell the products too.

3. Native Advertising

Native advertising, where products are placed carefully in videos and images, is not new but has seen significant growth in recent years, especially with growing influencer marketing. Using native ads is expected to only grow more in 2023.

They are particularly relevant now because they provide another solution to dealing with data collection and advertising barriers, including ad blockers.

They can build product awareness. Since products are placed in context, they aren’t intrusive as pop-up ads. Combined with shoppable posts, they can also provide opportunities for direct sales. So think about using native ads to your advantage.

4. Artificial Intelligence

Artificial Intelligence driven devices are continually becoming more sophisticated, helping sales, marketers, and customer service teams alike. AI-driven automation frees up advertising teams to focus more on strategizing and developing creative solutions.

Chatbots can answer questions around the clock, helping people through the customer journey.

Programmatic ad buying uses software to purchase digital ads, allowing advertisers to focus on optimizing ads, planning ad initiatives, and meeting clients’ needs.

AI-driven analytics provide insights to inform advertising strategies. Chatbot analytics can collect and analyze information collected from chatbots and messaging apps to build profiles of prospects and customers who interact with the company.

5. Employee Activation and User Generated Data

Employee activation is another way to reach target audiences without needing to collect third-party data.

Employee activation works similarly to user-generated content, where fans of a brand create videos and posts that feature products on social media. Satisfied employees can promote and inform their social media friends and followers about the company’s products and services.

These methods of reaching audiences not only avoid hefty advertising costs but add a layer of authenticity from people who know the brand inside out.

Half of Gen Zs and 40% of Millennials expect companies to take a stance on sustainability and social issues and demonstrate they are actively promoting these causes. And marketers are getting the message. According to HubSpot, marketers who plan to continue or even increase investment in socially responsible strategies have doubled from 45% in 2022 to 89% in 2023.

7. Searching for Content

Gen Zs and Millennials are increasingly turning to their favorite social media apps to search for content, check facts, get answers to questions, and research products.

Users love searching on TikTok and Instagram because their searches provide results that are most likely to appeal to them. These platforms can provide accurate results because they can track the users’ every browsing decision.

SEO advertisers must provide culturally relevant optimized content to appear high in social media app search results.

Another area to explore in 2023 is doing more visual searches in response to Gen Z’s preference for them over text searches. Pinterest pioneered visual search, and now other companies offer it, including Google Lens, Instagram Shopping, Amazon Rekognition, and Snapchat Camera Search.

8. Mobile Optimization

By 2023, North America will have 329 million mobile users, or 88% of the population, according to research by Cisco.

When you factor in the younger generations’ love of mobile devices, it is no surprise that most SEO marketers consider it a good investment to optimize websites on mobile devices.

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Takeaway

An uncertain economy, restrictions to collecting data, and generational changes make 2023 an unpredictable year for advertising and marketing. This makes the ability to change course when facing roadblocks more important than ever.

New moves to protect consumers’ data and privacy will make it harder for advertisers and marketers to get accurate profiles and reach their target audiences in 2023.

Advertisers will have to find innovative ways to understand, identify, and reach their target audience, whether it’s through creating more influencer partnerships, optimizing social media searches, or selling products through social media apps.

A new generation has come to expect more personalized service and convenience. They are also ready to call out brands they think are not doing enough to promote sustainability, social responsibility, and inclusiveness.

Advertisers must be responsive, establish relationships with their audience, and create messaging that addresses the concerns of a more demanding audience to succeed in the new year.

If you need help updating or building your strategy, our marketing team is here to help. Contact Viral Solutions now to set up a free consultation!