By Our Staff
Criteo, the commerce media company, released its ‘2023 Commerce Media Market Trends Report’, which sheds light on how retailers and advertisers can seize opportunities in the rapidly evolving landscape of Commerce Media.
The report highlights 10 key trends that are set to alter the Commerce Media landscape which includes:
ChatGPT is rewriting marketing and retail playbooks
Generative AI like ChatGPT 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.
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 reach this cohort and tap into their values around sustainability, affordability, diversity, and inclusion more efficiently.
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.
Omnichannel becomes Essential
As online and offline channels increasingly converge, retailers and brands must accelerate their efforts to embrace a fully integrated commerce future. This will involve leveraging strategies such as research online purchase offline, cross-channel attribution, and physical attraction to create a seamless customer experience.
Data Monetisation Redefined
By leveraging first-party, closed-loop data sets, advertisers gain valuable insights into consumer behaviour and preferences. Retailer data sets offer several advantages, including reliable and compliant data in the face of growing privacy regulations and the vulnerability of third-party cookie replacements. As a result, retailers’ first-party data is becoming increasingly valuable for creating effective advertising campaigns.
Brand Budget
A brand budget is crucial for businesses looking to establish a strong brand identity. A brand budget is the amount of money allocated to promote and maintain a brand image, and it includes expenses such as advertising, content creation, and influencer partnerships. The report suggests that businesses should aim to allocate a minimum of their revenue towards their brand budget. However, this may vary depending on the industry and the stage of the business’s growth. The report also highlights the importance of tracking and measuring the effectiveness of the brand budget to ensure that it is generating a return on investment. By prioritising a brand budget, businesses can establish a strong brand identity and increase their brand recognition among consumers.
Agency partner
An agency is cited as a key strategy for businesses looking to improve their marketing efforts. An agency partner can provide a wealth of expertise and resources to help a business reach its marketing goals. The report suggests that businesses should look for an agency that specializes in their industry and has a strong track record of success. In addition, the report highlights the importance of clear communication and collaboration between the business and its agency partner. By working together closely, businesses and agencies can develop effective marketing campaigns that drive results. Overall, partnering with an agency can be a valuable investment for businesses looking to improve their marketing efforts and stay ahead of the competition.
Budget Migration
The concept of budget migration, which refers to the shifting of advertising budget from traditional channels to digital channels. With the rise of digital advertising, many businesses are recognizing the need to allocate more of their budget towards digital channels in order to reach their target audience effectively. The report highlights the benefits of budget migration, such as the ability to reach a wider audience and track the effectiveness of advertising campaigns more accurately. However, the report also acknowledges that traditional channels such as TV and print can still be effective for certain businesses and audiences. Overall, budget migration can be a valuable strategy for businesses looking to stay competitive in the ever-evolving landscape of advertising.
Going offsite
The growing trend of businesses “going offsite” to reach new audiences and diversify their marketing efforts. Going offsite refers to the practice of advertising on platforms and websites outside of a business’s own website and social media channels. This can include partnering with influencers or advertising on third-party websites and social media platforms. The report suggests that going offsite can be a valuable strategy for businesses looking to reach new audiences and increase their brand recognition. However, the report also emphasizes the importance of selecting the right offsite channels and tracking the effectiveness of campaigns to ensure a positive return on investment. Overall, going offsite can be a valuable addition to a business’s marketing strategy in today’s digital landscape.
Generative AI
Generative AI is a form of artificial intelligence that can create new content such as images, videos, and text. The report suggests that generative AI can be a valuable tool for businesses looking to create personalised and engaging content for their audiences. For example, generative AI can be used to create personalised product recommendations or to generate unique images and videos for advertising campaigns. However, the report also acknowledges that the use of generative AI raises ethical concerns, such as the potential for the creation of biased or offensive content. As such, businesses using generative AI must be careful to ensure that their content is ethical and aligns with their brand values.
Said Taranjeet Singh, Managing Director, Enterprise, APAC, Criteo on the report: “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. Our report captures the changing landscape of commerce media and the opportunities that retailers and advertisers will face in 2023. As the industry continues to evolve, Criteo is excited about the potential of commerce media and committed to empowering our clients with the technology and insights they need to succeed in this dynamic landscape.”