News | Key advertising trends of 2023, according to new report
Driven by evolving technology and consumer habits, the world of advertising is in constant flux. Kantar Media Reactions 2023 offers enlightening insights into the ad choices of marketers and consumers for the year.
Explore the intricacies below, or for a concise snapshot, browse our summary of the primary findings.
Online Video Reigns Among Marketers
Even with online video not particularly being a crowd-favorite among consumers, it remains the number one choice for marketers. For the fourth straight year, online video persists as the top media channel choice for marketers. A whopping 74% of marketers are signaling their intent to heighten their investment in online video by 2024.
In-Person Channels Rule Consumers’ Hearts
The 2023 findings point to a clear preference among consumers for “in-person” touchpoints. Sponsored events, cinema ads, point of sale, and Out-Of-Home / Digital-Out-Of-Home mediums are the undisputed favorites.
Marketers and Consumers Both Like Sponsored Events
Sponsored events also continue to maintain a favorable stance in the advertising spectrum – particularly among consumers – with the absence of negative perceptions standing firm over time.
Sponsored events have transitioned into the digital era, especially during the pandemic, blending traditional face-to-face formats with polished online counterparts in a hybrid approach.
This evolution has only boosted their credibility. Since 2021, marketers have increasingly recognized and valued sponsored events as a potent advertising channel, largely driven by this growing trust.
Real-world experiences are key
Today, the top ad channels for consumers are ones that require them to go outside, showcasing the value of real-world experiences. One thing is clear: people enjoy ads that merge digital with the real world, proving that impactful ads aren’t limited to screens at home.
Amazon: Earning Consumer Trust One Ad at a Time
The e-commerce giant Amazon once again clinches the title of consumers’ most preferred advertising platform. Many find the platform’s ads pertinent and unobtrusive. Interestingly, while not in the top five picks for global marketers, Amazon has seen a commendable 10% YoY boost in trust scores. It also emerges as a frontrunner in select markets including Brazil, Germany, and Mexico.
YouTube’s Stellar Ascent
YouTube’s ascent in the marketing world has been evident, securing a commendable 6% surge in trust since 2022. This climb underlines marketers’ inclination towards brands with a solid reputation and longstanding presence in the industry.
The unwavering confidence in YouTube by marketers suggests an appreciation for platforms that have consistently demonstrated their reach and reliability. Yet, in a twist of consumer sentiment, YouTube hasn’t garnered the same level of endorsement. Despite its monumental presence in the digital space, it remains outside of the top five ad platforms for the general public. This divergence between marketer and consumer preferences serves as a reminder of the dynamic and sometimes unpredictable nature of the advertising ecosystem.
Marketers vs. Consumers: A Dichotomy of Preferences
A striking contrast is evident between the platforms marketers are investing in and those consumers find engaging. A glaring 50% of marketers are indifferent to capturing consumer attention as long as brand or sales outcomes are achieved. However, mediums like cinema ads, sponsored events, and Digital-Out-Of-Home have emerged as mutual favorites, drawing attention from both cohorts. Additionally, both marketers and consumers concur on TikTok being the most captivating media brand.
Gonca Bubani, Kantar’s Global Thought Leadership Director of Media, weighed in, emphasizing the significance of aligning ad campaigns with consumer preferences. “For marketers, understanding the nuances of various ad platforms and directing investments judiciously is paramount,” says Bubani.
The Metaverse & ‘X’ (formerly Twitter): Under the Microscope
While the metaverse was anticipated to be a game-changer, it hasn’t lived up to the initial fervor. The platform known as ‘X’, previously Twitter, has also experienced a dip in favorability among marketers. Notably, X has been elbowed out of the top five list for marketers.
Generative AI: The Future of Media Technology?
As the digital landscape undergoes rapid transformations, generative AI emerges as a potential game-changer in the media sector. Kantar’s latest study, “Media Reactions 2023,” delves into the implications of this groundbreaking technology on diverse aspects of media — spanning planning, targeting, creative development, and effectiveness assessment.
Generative AI isn’t just another buzzword; it possesses the capability to revolutionize media engagement. Yet, the extent of its impact remains shrouded in anticipation.
The early numbers, however, are promising. According to the study, consumers exhibit a budding enthusiasm for AI technologies, with 55% showcasing a positive outlook. Marketers seem even more bullish. A notable 66% of them are optimistic about the prospects of AI.
The excitement is palpable, but will it translate into tangible adoption rates? As the industry awaits broader AI integration in marketing strategies, one key question looms large: Will marketers wholeheartedly embrace AI in their campaigns in the upcoming year?
The media industry stands on the cusp of what could be a transformative phase. Whether generative AI becomes an integral part of this transformation or remains a fascinating potential, only time will tell.
Summary of the findings
Amazon is the most preferred ad platform for consumers.
Consumers find ads on Amazon relevant and useful.
“In-person” channels are favorites, with sponsored events leading for the second consecutive year.
Other top “in-person” channels include cinema ads, point of sale, and both traditional and digital out-of-home advertising.
TV does not rank highly among consumers and has seen a decline in preference among marketers.
Marketer Preferences and Trust
YouTube is now the top platform for marketers, showing a 6% increase in trust since 2022.
Marketers increasingly trust Amazon, with a 10% YoY rise in trust scores.
Marketers’ and consumers’ preferred channels differ significantly.
Only 6% of marketers plan to increase TV ad spend in 2024.
The Metaverse remains largely unexplored, with only 22% of marketers planning to increase spending there in 2024.
Shifts in Platform Trust
X (formerly Twitter) sees declining trust among marketers, with drops in perceptions of innovation and trustworthiness. There’s a projected 14% net reduction in ad spend on this platform in 2024.
Attention and Impact
Marketers value influencer content for grabbing attention, but consumers don’t rank it in their top five.
50% of marketers don’t prioritize attention as much as brand or sales outcomes.
Cinema ads, sponsored events, and digital out-of-home are viewed as attention-grabbing by both consumers and marketers.
Both groups agree: TikTok is the top attention-grabbing media brand.
Conclusion: The Dynamic Dance of Digital and In-Person Media
In a world perpetually evolving, the media landscape is no exception. Kantar’s “Media Reactions 2023” report hints at a nuanced transition rather than a complete digital overhaul. The fervor around the digital revolution may have tempered, but the battleground remains in flux, with ever-emerging trends and shifts.
One key revelation from the study is the steadfast significance of in-person media channels. These channels, often thought to be relics of a bygone era, have demonstrated their potency in commanding consumer attention and fostering receptivity. With the right content strategy and customization, these traditional mediums can create impactful brand narratives that resonate with audiences.
But dismissing the might of digital would be a folly. The digital domain continues to evolve, melding the boundaries between the online and offline worlds. It isn’t merely confined to our screens; it’s intertwining with our physical realities, reshaping the way we experience traditional offline channels.
For marketers navigating this intricate terrain, the tools at their disposal are multiplying. Yet, amidst the plethora of metrics and strategies, the study emphasizes the often overlooked metric of ‘attention’. This unassuming indicator might not be the most sought-after measurement yet, but it holds the key to discerning consumer preferences for ad platforms.
Furthermore, the significance of locality can’t be overstated. Local ad platforms often have an innate ability to captivate audiences, sometimes even overshadowing their global counterparts. As marketers look ahead, striking a harmonious balance between global reach and local relevance might be the linchpin for branding success.
To ensure the credibility and depth of their findings, Kantar undertook a comprehensive research methodology for the “Media Reactions 2023” report. The consumer survey encompassed a staggering 16,000 interviews, spanning across 23 diverse global markets, from Argentina to Vietnam. This broad spectrum ensured a holistic understanding of consumer perspectives from both established and emerging markets. On the other side, the marketer survey delved into the insights of approximately 900 professionals. This group was not limited to just advertisers, but also incorporated voices from agency and media companies globally, offering a multifaceted view of the industry’s future trajectory.