Programmatic advertising has grown to be one of the largest and most powerful forms of promotion on the planet. Each year brings new and exciting trends and technologies that shape the industry and there are a lot of important trends to watch out for in 2023. With the growth of social media and internet usage, programmatic advertising has consistently been poised as an ideal solution for advertisers seeking target demographics.
Here we have identified 4 important trends to expect in 2023:
- 5G and faster bidding for programmatic advertising. 5G is typically 3 to 6 times faster than 4G and as more phones use it, internet usage speeds up and allows for a quicker bidding process in programmatic advertising. Not only bidding, but other aspects of the industry are improved by 5G. Ads can be run with greater clarity and speed which provides new creative opportunities for advertisers. 5G will be one of the major trends to watch out for in 2023 as digital advertising is made faster and more efficient.
- Lots of video content. It goes without saying that video is one of the most dominant forms of content today. Apps like TikTok and Instagram thrive off of maintaining user interest through appealing short form videos. This dominance is expected to continue its growth in the year 2023 especially as 5G becomes more commonplace. The click through rate of video ads are also 18 times higher than that of banner ads and are much more likely to maintain interest. Maximizing the potential of video advertisements will be a major theme to pay attention to and a necessary aspect of digital advertising to understand.
- AI’s new power in advertising. Artificial intelligence has recently become a leading tool used by advertisers in everything from ad creation to identifying new audiences. It has demonstrated incredible results allocating budgets, gaining new insights, and even building creative campaigns. In 2023, we will see artificial intelligence being utilized all over the world of programmatic advertising. As more companies see its potential, new and powerful ways to make use of AI will be introduced which will change the inner workings of the industry. Below is a visual which identifies the top reasons artificial intelligence can be used for market personalization:
4.More audio advertising. Finally, possibilities within audio advertising have increased immensely since the advent of platforms such as Spotify and Apple Music. Within the freemium model of these services, ads are run on any form of audio content that is presented. However, podcasts in particular have become incredibly popular ways to connect with an audience. People are invested in what they’re listening to and so will have greater respect for the companies that their favorite podcaster might choose to advertise. We expect this trend to continue and grow in 2023.
Ultimately, each year brings new trends and possibilities in programmatic advertising. As the industry grows, exciting developments take hold and influence the market developments.
In 2023, new technologies such as 5G mobile networks and artificial intelligence will have huge impacts. Both of these will improve the overall speed of programmatic advertising as well its effectiveness as finding the correct demographic. Each trend is unique to itself yet they will all work interdependently as the industry evolves and will have big impacts in the coming new year.