It may not seem like there are plenty of opportunities for advertisers given continued economic uncertainty, supply chain issues and general world turmoil impacting budgets this year. Ad intelligence firm MediaRadar would beg to differ, however, as it's just released its predictions for 2023, with some promising sources of ad income – and therefore potential good news for radio – in a changing world.
“It seems all but inevitable that 2023 will bring its own set of challenges, and as it does, advertisers will face opportunities they must be ready to capitalize on at a moment’s notice,” MediaRadar's blog says. “While current events are creating unimaginable hardships for millions around the world, some advertisers will find their products and services in greater demand. Ad spending will undoubtedly follow.”
The report notes that rising interest rates' effect on major companies such as Google, Amazon and Disney are likely to lead to layoffs, selloffs and mergers, not to mention ad opportunities. “When a recession strikes, a consolidation of media companies, typically weaker firms looking for scale by pairing, becomes inevitable,” MediaRadar's forecast says. “This fragmentation will create opportunities for advertisers to gobble up ad inventory at lower prices, as these ecosystems look for every life raft to stay afloat.”
Meanwhile, the growth of digital retail media is expected to continue this year, especially for supermarkets and big box retailers such as Walmart. “Supermarkets have the most to gain thanks to a captive audience, a strong presence in the local community, frequent buys from their websites, and higher margins,” the reports says. “Walmart will likely serve as the “gold standard” as competitors mirror its strategy in their attempt to rise to retail media stardom. The explosive growth will undoubtedly pressure other retail media networks to innovate quickly.”
MediaRadar takes a never-too-early approach when it comes to the Metaverse, citing major advertisers such as Pizza Hut and Doritos which have jumped in with interactive media. “These parallel universes will continue to open up new inventory for advertisers looking to delight consumers in new ways and break free from over-saturated digital ecosystems,” it says. “While the advertising implications of the Metaverse seem a bit far off, advertisers should keep their eyes on it as the ecosystem matures and advertising opportunities spread.”
Even ChatGPT, which MediaRadar reports has reached 100 million monthly users in just two months, offers ad opportunities. “It will likely change the business of selling ads,” its report says. “Given the pressure to do more with less during a down economy, additional resources and headcount are unlikely. Thankfully, ChatGPT can fill that void with mass customization of outreach. ChatGPT and other AI-powered tools are positioned to improve the number of advertisers a sales team could contact while collapsing the time required by ad sellers to hit their quotas.”
MediaRadar also notes the opportunities stemming from government spending in 2023. “Advertisers in certain industries, namely energy, agriculture, and defense, are finding their products and services in more demand than ever,” the report says. “The Infrastructure Investment and Jobs Act will invest $1 trillion in updating roads, bridges, and tunnels across the U.S. These updates will create employment, travel and business opportunities for Americans—all of which will require advertising to spread the word.”
With COVID concerns fading, in-person sponsorships and events are also likely to make a comeback this year. “Our early analysis in Q1 suggests an exceptionally robust market for live events,” MediaRadar's blog says. “Brands are eager to interact with customers in-person, and these fun events will bring new advertising opportunities for media companies.”