The year 2023 will usher in newer trends in digital advertising. Those born between 1995 to 2010, also known as Gen Z, will soon dictate what they want from brands.
As Gen Z continues to grow up and reconfigure the Internet, digital marketers must figure out how to respect individual freedoms while offering personalized customer experiences.
As a generation that grew up with full access to the Internet, Gen Z is also more conscious of what they want and why. They are conscious consumers who research companies and brands before making purchase decisions.
It is not enough to have online reviews. This generation is comfortable with change and welcomes advancements in technology. They prioritize relevance and authenticity over quick profits and follow brands with a purpose.
Digital Advertising Trends for 2023
The digital advertising landscape is set to change drastically in the coming years.
According to Business Insider, by 2026, Gen Z will be the largest generation, at around 82 million people. And Gen Z is passionate about social issues and sustainability.
Digitally sophisticated and politically progressive, GenZ is ready to fight for what they believe.
Aneesh Dhawan, CEO of Knit, a Gen Z insights platform and video feedback solution provider, told CMSWire that Gen Z’s sense of self-expression carries forth in their decisions about the brands they choose to do business with.
He stated that the company found that 89% of Gen Zers choose to shop from brands that are socially and environmentally conscious.
Marketers need to keep in mind that no matter what the campaign is about, if it is not purpose-driven, they will lose the biggest demographic.
Gen Zers want to know if the organizations they work with align with their values.
According to the recent Verint report, less than 36% of consumers under 40 prefer to visit stores when interacting with retailers. This shows that online shopping will be a big part of the consumer experience and making it more interactive and fun is what digital marketers should aim for.
As digital natives, Gen Zers know how to weed out the chaff from the wheat and are unafraid to call out those who do not practice what they preach.
Short Videos
According to online video consumption statistics, 92.7% of global internet users watch digital videos. Ecommerce product reviews are watched by 27% of online consumers every week.
It is clear that online videos have become part and parcel of our everyday life.
TikTok changed the social media game with its simple, short videos that enamored the young and old. As over 40% of its daily users fall into the 18 to 24-year-old age group, brands quickly realized the potential of advertising on this platform. The video game app’s rivals weren’t too far behind. Instagram came up with Reels, while YouTube let content creators promote their wares through Shorts.
Digital marketers must to make short, engaging videos that give relevant information in bite-sized pieces. Short videos are easy to consume, and often people do not actively realize that they are marketing tools unless specified.
People browse short videos, while waiting in line, traveling, or killing time as they await something else.
Short videos fill the gap and, when presented thoughtfully, can draw people to the brand’s website.
Podcast Ads
In recent times, the podcast industry has become a multi-million-dollar industry. With its rise, the digital advertising industry has woken up to the huge market this presents.
Podcast ads have now become mainstream, as over 100 million Americans listen to podcasts every month.
According to the Edison Research Super Listeners 2021 report, podcast ads are the most recalled ad types. Podcast ads contain detailed information about the product or service being promoted. The host usually chimes with their experiences, if relevant.
In some cases, the podcast ad is a pre-recorded audio message inserted into the audio.
In a Nielsen survey, 70% of respondents reported that a podcast ad increased their awareness of a new product or service. The study also discovered that 69% of those surveyed correctly recalled the brand advertised in the podcast.
Podcast ads are more effective as they cut across demographics and have a loyal following.
The ROI for podcast ads will be much higher than a regular TV or radio ad campaign.
Some of the most successful podcasts earn thousands in revenue every month as they build up a dedicated customer base.
In Nielsen’s survey, podcast listeners admitted that podcast ads made them seriously consider new products/ services.
Influencer Marketing
It is the age of the influencers, and it is defined by the unique tastes of Gen Z. As a generation that grew up having access to and playing around the Internet, they know how to use it to their advantage.
Influencer marketing also lends a certain authenticity to your brand as the creators have already built credibility with their audience. Influencer videos and vlogs also rank among the most popular videos on the Internet. Research shows that around 25.2% of Internet users worldwide watch influencer videos every week.
The influencer industry generated over $13 billion in 2021, and is set to rise in the coming years.
To promote specific products that cater to a niche audience, it is better to partner up with a micro influencer. A micro influencer usually has between 1,000 to 10,000 followers.
According to Forbes, a micro influencer has more engaged audiences compared to a macro influencer (between 10,000 and 1 million followers) or mega influencer (over 1 million followers).
Digital influencers are expected to impact how to shop, eat, and travel in 2023, as brands realize their impact on consumer behavior.
As consumers place greater value on how they spend their money, they are turning to more reliable sources (read influencers).
LinkedIn Storytelling
If you are on LinkedIn you will come across multiple stories and campaigns by different brands. But more than the curated ones, LinkedIn has the potential to generate organic traffic.
From blog posts, case studies, experience sharing, and getting new joiners to pen their thoughts about the company culture, LinkedIn marketing has evolved into something much bigger.
Today, reviews and testimonials are widely shared on LinkedIn and sometimes outdo paid marketing strategies.
LinkedIn marketing is part of professional networking, but it also serves as a news source. Everyone, from customers to HR professionals, talks about big organizations and what they approve or disapprove of.
As digital marketing evolves in 2023, unpaid LinkedIn marketing will boost company image and customer engagement.
There have been posts about exceptional customer service by Uber drivers, big tech giving people with large career breaks a chance, and bosses who help employees maintain a work-life balance.
Conscious consumers pay attention to these facts when deciding which brand to go with before making a purchase.
Augmented Reality Experiences
Augmented reality (AR)and other immersive experiences will redefine digital advertising. Online shopping picked up during the pandemic.
To enhance online shopping, brands are now experimenting with AR techniques to offer better feedback and personalized experiences. AR empowers customers with the ability to visualize and customize products in 3D when shopping.
Apple CEO Tim Cook believes AR will soon become a part of our everyday life. He said, “I do think a significant portion of the population of developed countries, and eventually all countries, will have AR experiences everyday, almost like eating three meals a day. It will become that much a part of you.”
According to a report by Mobile Marketer, only 1% of retailers are currently leveraging AR or VR (virtual reality) in their customer buying experience. The report also found that 52% are not prepared to integrate AR and other technologies.
Recognizing the power of these technologies, Google has now launched AR to help shoppers figure out the best beauty products for their skin tone and color.
Consumer experiences will be defined by the AR experience retailers offer.
On the IKEA Place App, customers can visualize how furniture will look in their living space in real-time, and offer customization options. When given a choice, 61% of customers will prefer retailers who offer AR experiences.
According to Vibrant Media, AR ads are enabling brands to bring their products to life right in front of consumers. Digital advertising agencies are scrambling to play catch up, and those who don’t will be made redundant in a few years.
Luxury brand Miss Dior launched a campaign early this year that used Google Lens and allowed customers to create an AR garden of blossoming flowers to promote their perfume. Miss Dior reached 2.5 million clients and garnered 350,000 global user engagements.
Data Privacy
While it is not something that is often talked about in advertising, data privacy will be a big factor in digital advertising. As the world unites over data privacy and fundamental human rights, companies that ask for consent will generate trust and credibility.
Mining customer data for personalized ads targeting has been the norm in the last decade. But all that is set to change.
A business that shows that they value and respect user privacy will gain the trust of consumers. In 2023, many more laws will be put in place to prevent tracking user data without consent.
Failing to protect the integrity and privacy of customers can have repercussions that extend far beyond legal and financial penalties.
In 2016, European governments came together to launch the General Data Protection Regulation (GDPR) act. According to the GDPR, consent must be “freely given, specific, informed, and unambiguous”. It is a constantly evolving piece of law.
The EU has also fined big tech for data privacy violations and for using consumer data for more than intended.
The US Congress has a data bill that seeks to entrench privacy by design into technology.
According to research by Google, consumers view bad privacy experiences as almost as damaging as theft of their data. It is enough to make 43% of them switch to another brand.
Studies have shown that no matter how enticing a product is, GenZ will reject it if the brand partners with inauthentic celebrities or influencers. The Knit 2022 report found that 44% of the younger generation will not give their business to such brands.
“With about $150B in buying power, Gen Zers are using their individuality to shop from brands that understand these values,” said Dhawan. “The brands that successfully engage Gen Zers are doing so because they aren’t lumping them all together.
They aren’t just marketing based on a widespread identity; instead, they speak to specific consumers and hone in on their unique individuality as a generation.”
