2023 promises to be yet another year in which the digital and social landscape evolves in evermore innovative and exciting ways. Here at AM+A we've analysed the data and chosen the top trends to look out for in the year ahead, from a decline in paid social media advertising spend to the rise of personal devices.
Social media users have grown immensely in the past years, with a reach of 4.76 billion at the start of 2023. GWI states this might be due to the rise in using social media as an informational hub, rather than using a search engine for brand information. However, Skai.io saw a big drop in CPMs (Cost-per-Mille) - a paid advertising cost when delivering 1,000 social media ad impressions - during Q4 of 2022.
This 35% year-on-year decline in CPMs can be attributed to the fact that the rise in impressions is higher than the rise in overall spending on CPMs. This is particularly related to the current economic state and the cost pressure of online SoMe stores.
With reports by Data.AI and GWI both indicating that the time we spend on our phones is mainly dedicated to social and communications apps, there is no surprise that users will start to focus on quality over quantity time in 2023. GWI found that there has been a 20 minute decline in the time we spend browsing the web each day (a figure that has already declined by 4.8% since 2021).
Marketers and businesses therefore need to focus on understanding how their audiences engage with current trends, as users turn to platforms like Tiktok and Instagram to shorten the search time when buying products.
The rise of smartphones and personal devices such as smartwatches will change the digital advertising landscape in 2023. Based on a We Are social report, GWI reports that - while ownership of laptops and tablet devices is in decline - over 92% of people access the internet using a mobile phone.
The consistent increase in the use of personal hand-held devices makes social media an integral part of the marketing mix. Digital marketers must consider the limitations of mobiles and smartwatches when designing their campaigns. To be as effective as possible graphics, banners, advertisement slogans must suit the small frame of personal devices as well as the restrictions in place on social media, such as Twitter's character limit.
An overconsumption of online adverts has left social media users jaded and likely to ignore standard ads. In fact, a Millward Brown study titled AdReaction found that 82% of Gen Z skip ads while more than half use ad blockers. One way around this is to embrace interactive ads.
Artificial Intelligence and extended reality technologies such as VR have created new opportunities for user engagement. One of the most popular examples of this is interactive filters - these allow users to participate in the ads and further engage with a particular brand or product. AdReaction states that interactive-video-ads get 47% more viewing time than videos with no interactivity. There'll be more surveys, quizzes, and games across social media platforms designed to improve ad retention.
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