Although the economic crisis and the rising cost of living affect the reality of businesses, Kantar, a specialist in analysis and marketing data, presents its 2023 Media Trends & Predictions report. the changing media landscape for the coming year. To produce this report, Kantar relies on its own data, but also on the insights of its experts. The goal: help media and brands navigate 2023 and plan for the future.
1. The future of video: VOD uses television strategies
In 2022, one of the identified trends for video is the diversification of business models. Subscription VOD (video on demand) platforms are not only operating in a saturated market but have also been affected by a lack of consumer interest as well as inflation.
By the end of the year, the sector is on the dawn of an inflection point. Thus, the Disney+ and Netflix platforms began to introduce offers with advertising subsidies, in order to offer cheaper subscriptions, retain customers and attract new ones. On the other hand, diversity of formats is observed in VOD platforms. Thus, they find a new balance between VOD and linear, feature and short films, online broadcasting and live.
Among the ways Kantar presents for the video sector in 2023:
- “Mixed” visualization techniques: VOD platforms will continue to adopt concepts borrowed from television such as main events or linear programming tests, while television channels choose VOD characteristics. The streaming video market will move away from launching an entire season at once and promoting binge watching.
- Democratization of advertising-funded offers: as Kantar’s 2022 Media Reactions study shows, consumers are likely to be more receptive to advertising on VOD platforms. However, there is a risk of seeing the emergence of 2 types of viewers: those with little income and targeted by advertising, and those with higher income, but harder to reach.
- Increasing budgets: again according to the Media Reactions 2022 study, advertisers will continue to increase their investments in online video, streaming and social media. The arrival of new channels like metaverse, however, will further divide budgets.
2. Managing the impact of inflation: ad-supported models to address it
The year 2022 is marked by geopolitical upheavals, starting with Russia’s invasion of Ukraine in February. Inflation, which first affected the energy and food sectors, spread to many other sectors. Media and marketing therefore do not escape the effects of inflation, the consequences of which are a reduction in the purchasing power of consumers, an increase in SVOD subscriptions and an increase in advertising costs.
The 3 ways to guide marketing professionals to beat inflation:
- Show brand value for growth: according to Kantar, French consumers can easily search and find new brands that can fit their budget. This is why brands must demonstrate their value by targeting a set of previously untargeted consumers. For this, they need to study the dynamics of the market and study the situation of consumer groups.
- Focus on product placement: the acceptance of budget-conscious consumers to subscribe to cheaper, ad-supported VOD offerings should lead to better integration of advertising and content. As such, product placement is a high-growth sector. This is illustrated in particular by Amazon, which includes virtual products in the series, for example.
- Investing in branding: Kantar identified, in its BrandZ Top100™ report, that companies that invest in the image of their brands outperform the market, and that marketing investments remain the most powerful form of defense in times of economic crisis .
3. Data quality: preparing for a post-cookie landscape
Although Google has announced a further extension of the deadline before deleting cookies, many players in the AdTech sector claim that cookie use has fallen by 2022. To support their argument, they rely on the fact that mobile applications and connected TV is cookie-free.
On the consumer side, their attitude remains mixed vis-à-vis cookies. On the other hand, Kantar pointed out in his report that “2022 revealed a certain disconnect between consumer and marketer preferences. For example, advertising on Amazon is considered most relevant and useful by consumers but currently it is not in the top 5 rankings of marketer preferences..
The 3 ways Kantar announced for better data quality:
- Prioritize permission for targeting: In the face of increasingly strict data sovereignty and legislation, measurement panels made up of fully consented people will become more important for media, agencies and advertisers. This is to understand the behavior of viewers (the way they navigate between platforms or the device used to consume content).
- Betting on proxy targeting systems and contextual advertising: Kantar made it clear that while targeting within a closed ecosystem will always be possible, broader cross-platform targeting runs counter to consumer privacy. As the hyper-targeted ecosystem promised by the Internet seems less viable, marketers should consider, in the long term, a move towards proxy targeting systems and contextual advertising.
- Embrace cross-media: According to the organization, one of the most difficult strategies in advertising and brand planning is profiling their audiences through media touchpoints.
Winning brands are those that most effectively combine creativity and context, using real-time data to understand audiences and competitor activity. This will allow them to leverage the full power of their direct-to-consumer relationships, delivering relevant stories to the right audiences at the right time to drive growth, Kantar said.
4. New technologies: product placement by IP address is approaching
The report points out that on the technology side, the year 2022 will be marked by the growth of Smart TVs, but also by increased interest in the metaverse. If the latter did not experience a clear success, it appears to be one of the main drivers of marketing activity in 2023. To this is also added the very strong enthusiasm for NFTs in the world of marketing, but also part of consumers, before experiencing a mid-year slowdown.
The predictions for new technologies in 2023 according to Kantar are:
- Smart TV to build segmented TV: Smart TVs help facilitate new forms of advertising, such as display ads on home screens and menus, to transform segmented advertising capabilities and expand its penetration into homes.
- Product placement by IP: dynamic product placement expands and allows a product, sponsorship or display to be overlaid with another brand or advertisement. For this, Kantar defines that “The technological possibilities have to be weighed against what is acceptable to the audience. […] There will also be a need to regulate information to viewers more strictly as content is adapted”.
- The rise of interactive television and live e-commerce: Livestream commerce is expected to grow in popularity by 2023, with opportunities for live interactions and purchases offered during livestream sessions on connected screens, now including television.
- The growth of virtual worlds: the first in-depth exploration of virtual worlds should take place in 2023, especially with the participation of players such as Apple, Microsoft, Meta, Roblox and Epic Games.
5. Reducing the impact of media and advertising: towards “Net Zero”
Faced with the climate emergency, the media and marketing sectors are working to reduce the carbon impact of the development, production and distribution of advertising and content, thus moving towards “Net Zero”. A movement followed by brands that promise their customers to respect the principle of carbon neutrality, to reduce their energy consumption and to create sustainable products.
For 2023, the 3 ways Kantar presents for reducing the impact of media and advertising are:
- Move towards green change: the year 2023 should be like a year of change, whether it’s brands offering green products and services, media offering less energy-intensive processes or agencies rethinking their approach to advertising buying plan in consideration of climate impact.
- Refine analytics: the challenge is not only to offer ecological products and services, but also to sell to unconcerned consumers. Advertising messages should promote the adjacent advantages of a green product or service, rather than its impact on the environment.
- Reducing inflationary pressures: brands will need to balance green value messages with managing consumer concerns about rising prices.