In 2023, marketing budgets are expected to continue their upward trend. And businesses are allocating more resources to reach and engage their target audiences. As a result, the advertising industry is also likely to see significant growth in the coming year. In fact, according to the Association of National Advertisers (ANA), marketing budgets are expected to increase by an average of 5.6% in 2023. This trend is driven by a number of factors, including the shift toward digital marketing and the increasing importance of data-driven strategies.
Keep reading to uncover five types of marketing budgets the Winmo team expects to experience significant growth in 2023:
Consumers continue to increase the amount of time they spend on social media — two hours and 27 minutes a day in 2022. In fact, social media advertising is expected to account for nearly a quarter of all digital ad spending in 2023, according to eMarketer. Short-form video’s rise in popularity fosters the perfect conditions for fun facts, tutorials, and explainers to thrive on social. No wonder educational content is on most marketers’ minds when partnering with creators.
In 2022, shake-ups at core networks left consumers deprioritized in favor of profits and business dealings. Now, many are on the hunt for their next favorite corner of the internet. Networks like Mastodon, Tumblr, Hive, and Discord have become notable rising stars in a shifting social media landscape. As audiences continue experimenting with these new playgrounds, brands will be able to identify what’s a passing trend and what’s sticking around.
Influencer marketing involves working with social media influencers to promote a brand or product to their followers. Brands will want to jump on these trends to expand their audience, generate new leads, and earn more revenue. Influencer marketing was a $16.4 billion industry in 2022. However, the global market size is expected to reach $84.89 billion by 2028. So, it should come as no surprise that the prediction for 2023 is that marketers will collectively spend over $4.5 billion on influencers.
Video advertising is particularly effective at driving brand awareness and driving conversions, making it an attractive option for businesses looking to make the most of their marketing budgets. Every year for at least the last eight years, video content has been on everyone’s list of not just influencer marketing trends but marketing trends in general. And, there’s a good reason for that.
Bandwidth has improved worldwide in recent years. 5G is spreading across the globe, and fiber internet is commonplace in many countries. As a result, people are consuming more video and audio content with creators on Twitch, YouTube, and podcasts becoming more influential.
Programmatic advertising involves using algorithms and data to target specific audiences and deliver highly targeted ads. This approach is expected to become even more widespread in 2023, as businesses look to make the most of their marketing budgets by targeting the right people with the right message at the right time. At this point, programmatic touches pretty much every facet of digital marketing. Not that this is surprising. At a time when marketers are scrutinizing budgets and searching for operational efficiencies against economic headwinds and increased complexity, investing in programmatic makes perfect sense.
One potential challenge for the advertising industry in 2023 is the scrutiny around data privacy and the use of personal information in marketing. The implementation of new regulations, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States, have already had an impact on the industry, and it is likely that these trends will continue this year.