Will TikTok, the “top priority” of 2023, continue to evolve? What do agencies focus on?

CTV and digital video across social platforms are expected to continue to drive market growth. The outlook for 2023 from GroupM and Magna is generally positive, with digital advertising being the biggest driver of growth. After some platforms (TikTok) faced regulatory scrutiny in 2022 and tech giants made massive layoffs at the end of the year, social is expected to make a comeback in 2023.

Despite those uncertainties, Magna expects global digital advertising to grow 8% to reach $557 billion. That’s a whopping 65% of total ad sales in 2023. And this growth will be driven by e-commerce and the shift in media consumption to digital video, with this fast-growing ad format expected to generate $65 billion in sales in 2023. expected to achieve. Magna points to continued CTV usage and streaming consumption as “a tailwind driving the growth of long-form streaming.”

Ian Liddichourt, CTO and head of data science at AI advertising company Adludio, agrees. “[CTV]will continue to have a direct relationship with content development and consumers through the streaming platform, which will drive more marketer interest.”

There is still room for advertisers to grow their business, especially when it comes to streaming services. “I think the current CTV market is far from saturated, as the launch of ad-supported plans for Netflix and Disney+ shows,” said marketing firm RTB House. said Mateusz Jendloka, Head of Upper Funnel Solutions at . This hunger for on-demand content will continue to grow, he said.

“Marketers have long looked to OTT video on CTV as well as mobile,” said Jendloka. “This premium experience offers a more measurable and addressable alternative to linear TV buying, and it’s not surprising that more brands are investing heavily in it.”

Where are social media channels headed?

When it comes to ad spend on social platforms, experts believe the trend will continue to shift towards TikTok in 2023. Vicki Seeger, founder of influencer agency Village Marketing, said clients still spend the majority of their advertising dollars on Instagram and Facebook. On the other hand, however, he points out that there is a shift in advertising spending from other platforms to TikTok as the experiment with TikTok ends.

“Looking at all the client data, what I’m seeing is that ad spend that’s being pulled from Instagram is being put into TikTok. That’s the biggest shift,” Seeger said. “This is the simplest answer.”

Spending on other platforms like YouTube and Pinterest has also remained stable, but it’s growing faster than TikTok, especially when it comes to spending on creator content. “2023 will be the year we commit to a 12-month strategy and really scale what[Village Marketing]is doing. We haven’t given up on Instagram either. It’s becoming an increasingly important part of our strategy,” he added.

Magna’s predictions for 2023 also show TikTok’s impressive momentum. Social media ad revenue has hit unprecedented headwinds in 2022. TikTok was the only platform to thrive in the face of flat or declining competitors in ad sales.

Will it be the year TikTok rises further?

The potential it has for retail may also be a tailwind for the rise of TikTok. In recent years, TikTok has introduced new features like shoppable ads and “Shop This Trends,” as well as solutions for creators and commerce. Brands once reliant on Facebook and Instagram may see big success with TikTok ads in 2023. Ryan Turner, founder of marketing agency EcommerceIntelligence.com, said.

“We see a massive shift in 2023 as social media ad spend moves from other channels and networks to TikTok, especially for e-commerce brands.” says Turner. “CPMs and CPAs at point of purchase can be quite low due to low prices and virality of content… TikTok’s advertising landscape is still in its early stages. It offers many of the benefits enjoyed over the years of

Oz Etzioni, CEO of ad personalization platform Clinch, said social media will continue to evolve into programmatic advertising in 2023 as it expands its ad tech offerings. “Social media planning and buying processes will become more programmatic,” he said. “Third-party solutions build the underlying building blocks and define a standard taxonomy across social media platforms that unifies workflows and makes the whole process easier for all parties.” is not it”

Metaverse, any chance of live shopping taking off?

It’s too early to say whether 2023 will be the year commerce trends like the metaverse, immersive content, and live shopping take off. Live shopping, in particular, has become popular in China over the last few years, but has expressed mixed feelings about its potential in the United States. In 2022, brands believed the live shopping boom was on the way and companies wanted to experiment with it, but contrary to their expectations, live shopping has yet to evolve into a social part of their strategy, Seeger said. speaks.

“We could see that Asia was leading the way and the US was following behind,” Seeger said. “And by the time we hit the holiday season, we predicted that every gift guide would be live… but none of them have taken live shopping for granted as part of their social strategy. Absent”

Part of the reason is that creators don’t like the QVC-like sales approach[of TV shopping]which has slowed adoption, Seger added. He envisioned TikTok Live and YouTube Live evolving into live shopping, but so far neither has gone in that direction.

Metaverse is also a way to expand the use of current OOH advertising

But Richard Jones, chief revenue officer at performance marketing agency Wunderkind, sees it differently. He believes live commerce still has potential. Live commerce can be “the quickest way brands can monetize consumers who shop online, on social media, and who are highly engaged in the metaverse,” Jones said. .

Speaking of the Metaverse, 2022 will see many large holding companies and media companies do a variety of things in the Metaverse, such as building campuses on virtual reality (VR) platforms and partnering with brands on immersive experiences for consumers. It was a year of content testing. Some agencies see this as a way to make it easier to direct clients to the metaverse, but the future of that is still being debated.

Valu Vacante, Dentsu’s vice president of solutions and innovation, has previously said that Dentsu’s goal is to create the right experience for each client. “I’m a firm believer in the need for experimentation,” he told Digiday. “We play, we explore, we try, we succeed, we fail. How can we advise our clients without doing this?”

Paul Dimmock, co-founder and director of strategy at media agency Eidgensi, said the metaverse could be a way to expand the use of OOH advertising today. For example, digital OOH campaigns such as digital audio coupled with immersive storytelling.

“We already know that DOOH screens can engage users within the nascent metaverse environment. In the real world, NFTs can be activated by leveraging DOOH screens with embedded QR codes and visually appealing creatives. ‘ said Dimmock. “The endless creative potential of this environment means that audiences can be engaged with interactive, immersive content that helps create cohesive customer journeys across all channels.”