The strategies we use for paid media will continue to change as technology advances. Paid media will probably become even more automated in the coming years, with better targeting and deeper integration with new and emerging channels.
Here are some trends to watch:
1. Measurement
Over time, the customer journey will become more complex. As a result, advertisers need to understand their marketing channels’ relative value. You won’t be able to calculate this relative value without proper measurement.
In 2023, cross-channel measurement, attribution, and allocation will be critical.
When structuring your paid media campaigns, be sure you know what to measure. Set clear goals and determine key performance indicators (KPIs) to track. The KPIs you follow should adhere to your goal. Measuring KPIs like cost-per-click (CPC) and others will show performance. Based on this performance, you can continue to optimize your strategy.
For example, your goal might be to expand your reach. Here, you would target KPIs such as followers, web traffic, impressions, and post reach. To drive engagement, the best KPIs to track may include shares, likes, clicks, and mentions. For conversion campaigns, metrics worth tracking are conversion rate, bounce rate, and downloads.
With the help of the right analytical tools, you’ll get the most from measurement efforts.
Metrics to Track
Aside from KPIs, metrics to watch out for include:
- Ad spend
- Time-on-site
- Programmatic media
- Conversion rate
- Return on Ad Spend (ROAS)
- Cost-per-lead (CPL)
- Cost-per-action (CPA)
Metrics like these give you a more detailed view of how your advertising campaigns are doing. If you don’t pay attention to them, you won’t be able to accurately determine whether your paid media efforts are succeeding or failing.
When to Use Each Metric
Tracking the correct metrics ensures you’re focusing on what matters.
Ad spend, for example, is an effective metric to measure marketing campaigns requiring a lot of money upfront. In addition, time on site should be tracked to identify content that resonates with users.
Conversion rate is essential when measuring lead generation campaigns. Return on Ad Spend (ROAS) is ideal for campaigns with multiple interfaces, like an e-commerce site.
Cost-per-lead (CPL) and Cost-per-action (CPA) rank highly among metrics, too. CPL usually measures lead-generation campaigns, while CPA measures conversion campaigns.
2. Automation
Another crucial trend to follow is automation in paid media. The fact is that 93% of brands feel the need to focus on enabling automation.
More and more paid media will become automated. You must understand campaign measurement, analysis, and strategy. You also need to determine when it’s best to apply specific automation.
Many paid media tools can guide you with recommendations for automation. For example, Google, YouTube, and Facebook offer specific recommendations to follow. Based on your needs, you can follow certain suggestions.
Automation is invaluable, as it saves more time on manual tasks. These may include adding negative keywords, adjusting bids, or device type optimization. You can then reallocate that time to focus on growing your business.
Google Ads has led the way in paid media automation. The platform has been doing so by adding more automation options to the dashboard.
Concrete Examples of Automation
Dynamic remarketing is one of the most popular automated strategies. Targeting like this focuses on users who’ve been on the site before, whether they’ve made a purchase or not.
Advertisers can also use smart bidding in Google Ads. This automated bid management strategy uses machine learning to adjust bids automatically based on user profiles and other data.
Lastly, some platforms let you automate ads based on triggers. For instance, if a user abandons a purchase, an automated email can remind them to finish it.
3. Display & Video
The use of display and video is also crucial in paid media 2023. Display and video have been relevant for many years but will only become more important.
Modern technology has made it easier than ever to use these tools to their full effect. Because of this, 90% of brands place visual media as a top-priority trend.
Businesses will start using video and display to develop more holistic marketing plans. They’ll integrate top-to-bottom, full-funnel, and multi-channel video and display. Also, they’ll use other content to supplement those efforts.
The opportunities to use video to carry people down the funnel are almost endless. Video content is necessary from the start of the customer journey to building loyalty.
Performance Max
Google Ads also offers a Performance Max option. This helps you make the most out of each ad campaign through automation.
Google’s machine learning technology works to optimize the campaigns for maximum performance. It does this with features like automated bid strategies, ad and landing page testing, and keyword discovery.
Performance-max lets you confidently create campaigns and ensures you get the most for your money.
4. Enhanced Targeting and Bigger Social Media Budgets
A growing number of consumers are engaging in social shopping. As a result, platforms like Facebook and Instagram continue to see more use. More companies are increasing their social media budgets.
With growing social media budgets comes improved targeting. Advertisers want to push more personalized ads to users. Consumers also respond better to these ads. With many brands vying for attention, the key is standing out. By hyper-targeting ads to ideal audiences, brands can do so.
One brand that’s dominated by personalization is Facebook. Over the last decade, the platform has worked toward perfecting targeting. Through Facebook, brands can customize ads based on user preferences. Optimize each element, from the image to the call to action for each audience segment.
Another development to keep in mind is Instagram Shopping. Using this platform, people can now shop online directly through Instagram.
5. Stories Ads
One recent development that’s connecting with users is Stories. First, Instagram started using Stories to engage audiences. Today, other platforms offer this feature as well.
Stories are short-format videos that can get people’s attention. They’re beneficial in connecting with mobile users. The full-screen nature of these ads further helps with engagement.
As time passes, Stories ads will replace news feed ads, another paid media trend to look out for.
6. User-Generated Content (UGC)
One way to generate more high-quality content quicker is through UGC or user-generated content. This content can include a mix of images and videos that customers create and share. This branded content may include product reviews, testimonials, demos, and more.
You can get audiences to create this content by taking various steps. For instance, you can launch a contest with a giveaway to users who post the best-branded content. You may also give freebies or discounts to anyone who shares their unique content.
When encouraging this content, give clear instructions. UGC should align with your brand message, complementing other content.
Through UGC, you can save more time and money on advertising. You encourage more people to engage with your brand. As more people create and post UGC, their friends, and followers will learn about you. This makes UGC perfect for increasing brand awareness along with engagement.
7. The iOS Conversion API
The introduction of iOS 14 in 2021 brought Facebook Conversions API. This update was important amid the increased concerns over data collection and privacy.
To get the most from this API, you can use various tools. For example, you can use Facebook’s API when developing your pixel, or you can use third-party solutions. You’ll then be able to measure the results of your Facebook marketing efforts.
8. Increased Transparency
In recent years, there have been more and more scandals involving the transparency of ads. People want to know that the brands they see are ethical in their advertising.
To establish your brand as transparent, show what you do to maximize transparency. Adhere to local laws and disclose your ad practices to audiences. Taking these steps will increase trust among your customers. This could go a long way in driving higher conversion rates and loyalty.
9. Flywheel vs. Funnel
Flywheel or funnel is an all-too-common marketing debate. Whether you invest time and effort into expanding your reach and bringing in as many leads as possible, or whether you focus on customer retention and enthusiasm.
The funnel focuses on the performance of ad campaigns and how well they turn leads into customers. The flywheel focuses on creating a seamless customer experience and building customer loyalty.
Funnels v. Flywheels
Most organizations fall somewhere in between the two models. For them, the perfect solution is to combine elements of both the flywheel and funnel models to achieve the best of both worlds.
So strive to reach out to potential leads and customers with engaging content, while also carefully crafting exceptional experiences that serve to retain current customers. As a result, you’ll get better marketing results, increased customer loyalty, and better customer retention.
In 2023, companies that have adopted a combination of the funnel and flywheel models will see an increase in lead conversion rates and a reduction in customer churn. Companies will also generate higher customer lifetime values since they can convert more leads into long-term customers.
Additionally, companies will benefit from better customer satisfaction rates, leading to more referrals and organic growth. This will help companies grow their business and build loyal customers they can rely on for years to come.
10. Machine Learning
It’s becoming more common for marketers to use machine learning techniques to collect and analyze customer data. Over 80% of industry experts integrate AI technology into their online marketing activities.
They use machine learning to optimize and personalize campaigns for better performance and get a more accurate picture of your campaigns and offer better customer experiences. For example, it can help you identify the most effective time to send out email campaigns or the right audience to target for a particular ad campaign.
Machine learning also offers
- Improved customer experience: Machine learning can help companies better understand customer needs and offer them more targeted content, personalized experiences, and better service.
- Increased efficiency: With machine learning, marketers can analyze and act on data to identify trends and opportunities to improve campaigns or strategies.
- Better insights: Machine learning helps marketers gain insights into customer behavior and better understand their customers, leading to more intelligent and effective campaigns.
- Increased ROI: With more significant insights and improved customer experiences, machine learning can help marketers increase their campaign ROI.
It’s also worth mentioning that machine learning brings challenges, such as collecting enough data, setting up the proper data infrastructure, and training the model correctly. But with the right resources and strategies in place, machine learning can be a game-changer for marketers looking to get ahead of the competition.
11. First-Party Data
First-party data is another trend to watch out for. This allows companies to get closer to their customers and better understand their behavior.
First-party data is collected from various direct sources, like website visits, customer surveys, online forms, and email newsletters. This information empowers organizations to understand their customers better and how they interact with their products and services.
First-party data is also excellent for personalizing campaigns, providing customers with a more tailored experience, and increasing their engagement with the brand. For example, an online retailer can use first-party data to create customized product recommendations for each customer based on past purchases.
It’s like a sommelier recommending the perfect wine for each dish served at a restaurant. Knowing the customer’s preferences and tastes allows the sommelier to suggest accompaniment and create a more memorable dining experience.
Third-Party Data Restrictions
Third-party data is becoming increasingly difficult to use. Regulations such as the GDPR have made collecting, storing, and using third-party data.
This is one substantial reason organizations are turning to first-party data. First-party data is collected from customers directly and stored in compliance with data protection regulations.
Surveys, for example, are an invaluable way to gather information directly from customers and better understand their needs and desires. Marketers can also use first-party data to create more personalized campaigns, tailor content, and optimize campaigns for better results.
First, Second, and Third-Party Data
12. Paid Media Meets Influencer Marketing
The use of influencers in paid media campaigns is also on the rise. Influencers are viewed as authorities in their field and can be massively helpful for building brand awareness and engaging audiences more meaningfully.
This is because influencers have already built a large following of people who trust and admire them. Because of this, they can easily communicate the message of a brand’s campaign to a larger and more engaged audience than traditional forms of advertising.
It’s like having a team of ambassadors for the brand, promoting it to their wide circle of friends. Each ambassador has the potential to reach a broader audience than the brand would reach on its own, making it an effective way to increase brand awareness.
13. Omnichannel
An omnichannel marketing strategy creates a seamless user experience across multiple channels. This lets organizations provide customers with a consistent message and experience, no matter where they advertise.
With omnichannel marketing, customers can switch from one channel to another and still receive the same message. The result is a more unified customer experience and a more loyal customer base.
The trend toward omnichannel marketing is largely driven by the need to reach customers in differently. As more people move away from traditional media, organizations must find new ways to engage them.
Creating a seamless experience across multiple channels ensures organizations reach customers more effectively.
It’s like painting a picture. Each brush stroke on its own may have limited impact, but when combined, they create a unified, beautiful work of art.
Similarly, each channel may have its own goal, but when combined, they create a powerful marketing experience that reaches customers wherever they are.
14. Local Targeting
Local targeting is becoming increasingly essential for businesses looking to make a profitable impact with their marketing campaigns.
It allows companies to target ads to a specific group of people within a particular geographic area. This precision enables brands to narrow their target audience and ensure their ads reach a more relevant group of people.
It’s like a fisher who knows the best spot to catch their favorite fish. By knowing their chosen fishing spot well, fishers can catch what they want and maximize their time on the water.
Similarly, by targeting ads to a specific location, companies can ensure they reach the right people and get the most out of their marketing campaigns.
Follow the Right Paid Media Trends to Fuel Your Success
Keep up with the latest trends to succeed in the long term with your paid media campaigns. Following the most important paid media trends in 2023 and beyond will enable you to excel. These strategies will help you supercharge your campaigns and maximize your return on ad spend (ROAS). As your business grows, you’ll save more time, energy, and money on marketing.
FAQs
1. What are the biggest paid media trends for 2023?
The biggest paid media trends for 2023 include machine learning, first-party data, influencer marketing, omnichannel marketing, and local targeting. These strategies can help you supercharge your campaigns and maximize your ROAS.
2. What is first-party data?
First-party data is collected from various direct sources, like website visits, customer surveys, online forms, and email newsletters.
This information empowers organizations to understand better their customers and how they interact with their products and services. Use it to personalize campaigns and increase customer engagement with the brand.
3. What’s third-party data?
Third-party data is collected from external companies and organizations, such as demographic reports and marketing analytics. This data is more generalized than first-party data and is often used to target new customers or create lookalike audiences.
4. How can I create a more unified customer experience?
An omnichannel marketing strategy is one of the best ways to create a more unified customer experience across multiple channels.
This will let customers switch from one channel to another and still receive the same message, leading to a more loyal customer base and improved marketing results.
5. How can I target my ads more precisely?
Local targeting is one of the most effective ways to reach a specific audience if you operate within a particular area. They ensure that your ads are only delivered to customers in a specific geographical area and target users with interests relevant to your business.
6. How can I leverage influencer marketing?
It starts with choosing the most appropriate social platform, identifying the right influencers to collaborate with, and creating content that effectively communicates your brand’s message.
For example, if you’re targeting Gen Z, TikTok is the best platform, as this is the most popular platform among this demographic. Conversely, Facebook is best for marketers looking to reach Gen X or the older population.
