Advertising Briefing: Let’s finish the yr with a recap of the large advertising traits of 2023

This Advertising Briefing covers the most recent in advertising for Digiday+ members and is distributed over e mail each Tuesday at 10 a.m. ET. More from the series →

Much like 2022, 2023 hasn’t been the best of years for entrepreneurs as they proceed to navigate an unsure financial system, inflation, privateness and platform shifts and AI, amongst different traits. As we wrap up the yr, we needed to look again on the advertising developments that dominated 2023. (Our subsequent Advertising Briefing – out Jan. 2 – will dig into the burgeoning market forces for 2024.)

Earlier this month, ChatGPT turned a year old. In that point, adoption and use of AI inside advertising appears to have moved at an unbelievable tempo (so much so Digiday rolled out an AI Briefing) with main manufacturers like Coca-Cola making waves as an early adopter. It’d be troublesome to speak about traits over this final yr with out speaking concerning the influence of generative AI.

“In 2023, we noticed the advertising panorama reworked by generative AI, providing unprecedented personalization and artistic potential,” mentioned Jessica Berger, svp of innovation at Publicis Media in an e mail. “We noticed manufacturers use AI to design customized footwear, curate and generate music playlists – and even an advert marketing campaign with AI-generated graphics and slogans that dynamically tailored to real-time viewers reactions, showcasing a brand new degree of engagement.”

Berger added that the emergence of AI influencers – keep in mind Meta’s AI efforts with celebs like Kendall Jenner and Mr. Beast creating personas? – has made clear a possible “new frontier in AI advertising: AI-driven persona.”

On the similar time, AI hasn’t been with out its points significantly in terms of ethics, transparency and extra. That can proceed to be a sizzling matter subsequent yr as generative AI use continues to develop in advertising.

X (previously Twitter) drama and social experimentation

Advertisers have continued to leave X throughout 2023. The strained relationship between advertisers and the platform has been well-documented throughout the year. When you ask media consumers concerning the platform this yr, you typically heard that it was by no means vital however a pleasant to have, particularly throughout stay occasions just like the Tremendous Bowl, the Oscars and numerous sporting occasions. However hen you’re then cursing advertisers, as proprietor Elon Musk did earlier this month, it’s exhausting to think about they’ll come roaring again to spend on a platform that wasn’t a necessity. That’s unlikely to alter in 2024 as entrepreneurs and company execs anticipate the demise of X will solely proceed.

All that being mentioned, the drama with X has led advertisers to be extra open to experimenting with extra up-and-coming platforms, in response to Liz Cole, chief social officer at VMLY&R. “There’s an urge for food and a willingness to launch on new social platforms like we haven’t seen in quite a few years,” Cole mentioned. “There’s loads of debate and deliberation occurring about whether or not Threads is the Twitter alternative? Is it going to be this platform or that one? Does this platform have essential mass?”

Cole continued: “However I feel the fascinating factor about it’s that manufacturers are poised to attempt new issues, attempt platforms that don’t essentially have a longtime means of being for manufacturers and even monetization but, which is type of thrilling. It type of jogs my memory of the sooner days of social the place we hadn’t but been greatest practiced into oblivion and we’re nonetheless just a little little bit of a spirit of experimentation.”

Barbie and model IP

Warner Brothers’ and Mattel’s success with Barbie can’t be ignored when wanting again on the yr as many entrepreneurs have absolutely requested their company companions, “The place’s our Barbie second?” We’ll dig into this development extra in an upcoming wrap-up piece for the yr, however suffice it to say Barbie’s use of partnerships had many within the business speaking this yr. After all, it wasn’t simply Barbie.

In 2023 “model IP is fascinating in that it went past the standard film promotions,” famous Paul Prato, govt artistic director at PPK, in an e mail. “Sure Barbie was in all places with a number of manufacturers. However this was the yr of peculiar model hookups. Snoop and Solo Range. Liquid Loss of life and SJC Drums. Taylor and Travis. 2024 will decide up the place 2023 left off and be extra about which manufacturers get collectively to shock everybody that they’re relationship so to talk.”

Retail media middle stage

The ascent of retail media in recent times has been swift. As retailers like Walmart and Goal have matured their capabilities, others have simply began to launch with Deloitte Digital tracking roughly 45 retail media networks in the US and approximately 80 globally with the expectation that there’s more on the way. Entrepreneurs are taking discover and shifting {dollars} – although not all.

“We’ve seen an enormous shift of endemic companions shifting spend from different efficiency channels and even model channels to gas Retail Media Community progress,” mentioned Rob Silver, evp and head of media at Razorfish in an e mail. “However what has been harder to seize has been spend from non-endemic companions.”

Whereas retail media networks’ first-party knowledge is a part of the attraction for advertisers, the deprecation of third-party cookies remains to be having an influence on “the reporting constancy of present companions,” famous Silver. That mentioned, “clear rooms are taking middle stage as measurement options that can extra absolutely present the worth of retail media community environments and knowledge.”

“In consequence, retail media networks are already proving to be a viable channel for efficiency, and their wealthy knowledge will present distinctive insights and alternatives to attach with customers throughout their shopping for journeys,” mentioned Silver.

Diversification and streaming

Entrepreneurs are persevering with to grapple with the altering consumption habits of customers. Clearly wherever customers are spending their time, entrepreneurs will comply with within the hopes of getting their consideration. The continued transfer from linear to streaming in addition to altering nature of social platforms has entrepreneurs needing to alter their methods and diversify to do exactly that.

“2023 was the yr that digital video viewership surpassed that of conventional TV,” mentioned Diana Bojaj, chief media officer, Carat U.S., in an e mail. “The penetration of streaming platforms, mixed with the rise of social video, have reworked how we view video, with social video now being a significant participant within the video stack.”

Bojaj continued: “Even sports activities, which nonetheless drives the vast majority of TV viewership, is turning into the quickest rising type of social content material. As main tentpoles just like the Olympics modernize and increase their content material choices, we anticipate to see entrepreneurs take a way more surround-sound strategy to video in 2024.”

3 Questions with Chris Hodge, senior efficiency advertising supervisor at UrbanStems, an on-demand flower supply firm

The corporate has made loads of adjustments, like extra curated net pages, enlargement of same-day supply. What do current adjustments in your advert technique appear like?

One of many large issues and one of many particular causes we went to Bloomreach [marketing automation company] was the power to higher phase primarily based off of these viewers indicators. As a result of flower supply is a service, we profit enormously on the paid search facet. So, it’s a pretty big a part of our total paid combine. We additionally run throughout a number of paid social channels. You’ll discover us on Fb, Instagram, Tiktok, YouTube, Pinterest. Then, exterior of that, we now have a fairly good, strong CRM system–so, e mail, SMS.

What channels have been added or eliminated?

TikTok is unquestionably one of many newer ones. You see loads of companies battle to determine how you can appropriately market on [it]. TikTok is unquestionably one which we’ve put extra consideration, concentrate on within the final yr, particularly as their person base is expanded. We’ve seen extra people who match our clients which are spending extra time on TikTok. That has continued to rise as they’ve seen their day by day lively customers rise. So, as we’ve seen our clients spend extra time there, we’ve invested extra time in ensuring that we’re connecting with them there as effectively.

What’s the TikTok technique and the way does it differ from different quick kind video methods?

Content material that works on TikTok works on Instagram Reels and YouTube Shorts. We’ve seen positively a consistency there in what customers need to interact with. We nonetheless wish to ensure that the content material we’re put out nonetheless matches what customers are in search of there. You’ll see some tweaks relying on what we’re speaking about. — Kimeko McCoy

By the numbers

The aim-driven advertising hype appears to have gone from a fever pitch to a whisper in mild of public backlash toward “woke” marketing from major brands like Bud Light, Miller Lite and Adidas. Nevertheless, customers don’t need manufacturers to backtrack on their commitments to variety, fairness and inclusion, in response to recent research from the ANA’s Alliance for Inclusive and Multicultural Marketing (AIMM). Discover a breakdown by the numbers under:

76% of customers which have boycotted a model would by no means return to the model once more or will solely return as soon as the model has legitimately modified its place and practices.
63% of customers consider the time period “woke” has been politicized, with solely 34% believing the time period is essential in advocating for social justice points.
Solely 23% of customers would keep their model purchases if a model backtracked on help for a social trigger they believed in. — Kimeko McCoy

Quote of the week

“I feel that cash is more durable to return by. The free-flowing monetary world inside esports is over. And it’s now forcing corporations to actually look within the mirror and course appropriate their enterprise — in any other case, they’ll go extinct.”

— Ben Spoont, CEO of the gaming and esports firm Misfits, when asked about the current state of marketers’ spending in esports and what it’s been like throughout this past year.