Creativity in the tech space is rising, while retailers are acknowledging their role as media giants, and advertisers have more chances to reach customers at shoppable moments. This according to Criteo’s “2023 Commerce Media Market-Altering Trends” report examining 10 market trends it says will shape the future of commerce media.
The report additionally notes that with millions of consumers shopping online daily, retailers have become crucial players in the advertising landscape, providing an unprecedented opportunity to reach customers wherever they shop.
“In this competitive landscape, there remain opportunities for retailers and advertisers to continue engaging customers while expanding their reach and it simply lies in their ability to identify and create shoppable moments,” said Taranjeet Singh, Managing Director, Enterprise, APAC, Criteo.
“Our report captures the changing landscape of commerce media and the opportunities that retailers and advertisers will face in 2023.”
10 trends shaping the future of commerce media
Criteo created the following summary of trends that it says will offer both challenges and opportunities for retailers and advertisers:
Consumers couldn’t care less about channels
As e-commerce continues to grow, consumers increasingly expect a seamless shopping experience, regardless of whether they are shopping online or in-store. To differentiate themselves, retailers must integrate their digital and physical channels to create a frictionless shopping journey.
Retailer data is changing the programmatic paradigm
Retailers’ first-party data is becoming increasingly valuable and transforming the programmatic advertising landscape. Retailer data sets offer key advantages for advertisers, including first-party, closed-loop features that provide valuable insights into consumer behavior and preferences.
These insights provided by retailer data are a reliable source of information for creating effective advertising campaigns.
“Generative AI is set to transform the ad tech industry and will likely gain a permanent seat on the ad tech agenda due to its ability to provide a more personalized shopping experience.”
Brand and performance are now one
Advertisers are investing more of their brand budget in retail media as it grows in popularity largely due to the fact that it offers advertisers highly targeted and engaged audiences, insightful data, and a seamless combination of advertising and commerce.
While brands have typically concentrated on the lowest portion of the funnel, they are now broadening their product offers to draw customers in earlier on in the purchasing process.
A new breed of commerce expert is in demand
Comprehensive campaign management is becoming even more critical in 2023, as media campaigns are accountable to more granular reporting and tactics. As the retail landscape continues to evolve, a new breed of commerce expert is in high demand.
In 2023, agencies will move beyond platform reliance and focus on bridging the gap between retail and media with bilingual specialists known as commerce media experts. These experts will help clients navigate the new commerce models that streamline operations and distill outcomes.
Massive media budget migration continues
Media budgets are shifting away from traditional channels, with retailers offering new solutions and packages to support offsite advertising. The need for ROI-driven spending and the shift towards more measurable channels means that media buyers must adapt and evolve their budget allocation strategies to remain competitive in a constantly evolving digital landscape.
Going offsite into the open web
By providing brands with closed-loop measurement and access to their unique audiences on the open web, retailers can open up new revenue opportunities. There are limits to monetizing digital assets on their own sites such as sponsored ads, display ads, and video, so expanding to offsite advertising allows for upper-funnel tactics without sacrificing lower-funnel metrics.
ChatGPT is rewriting marketing and retail playbooks
Generative AI is set to transform the ad tech industry and will likely gain a permanent seat on the ad tech agenda due to its ability to provide a more personalized shopping experience. Retailers and brands are expected to adopt retail-specific generative AI tools to optimize their ad campaigns and improve customer service.
ChatGPT is one example of generative AI that has the potential to revolutionize the industry by streamlining workflows, enhancing customer service, and delivering more relevant results.
Gen Z’s new spending power is changing commerce
As Gen Zers move beyond TikTok and become more established as adults with significant spending power, advertisers are seeking to tap into this conscientious consumer demographic. In 2023, marketers will use a mix of tactics and platforms to more efficiently reach this cohort and tap into their values around sustainability, affordability, diversity, and inclusion.
Product SKU precision creates new outcome-based media
Product SKU-level reporting and targeting will become the focus of advertising outcomes. As consumers move from awareness to click in a few seconds, advertisers are looking for more granular targeting criteria to reach their desired audience. With the end support of third-party cookies, targeting based on SKUs and stores will become even more important.,
Sustainability in advertising
Media buyers and owners are expected to prioritize eco-conscious practices in every aspect of their business. Adopting carbon-neutral campaigns, utilizing net-zero emissions marketplaces, and leveraging attention-monitoring technology to optimize ad effectiveness are all examples of this.
Meanwhile, emerging enterprise climate platforms are connecting businesses with networks of vendors that help to clean up their operations. Sustainability is no longer an afterthought in advertising – it’s a key driver shaping the future of the industry.
The full version of the report is available here.
Image by Porapak Apichodilok