2022 is a very challenging moment not only for digital advertising, but globally.
In 2022, the world begins to recover from the pandemic. Most countries are also starting to reduce travel and work restrictions, encouraging economic development for the better.
This positive trend has led to the emergence of numerous new unicorns on the global market. But on the other hand, the Russo-Ukrainian war, the Chinese blockade, and the slowdown in the cryptocurrency market also had a negative impact on 2022.
However, brands continue to grow as they begin to adopt measurable marketing mediums that have a significant impact on positive return on advertising spend (ROAS).
This growth can happen despite the effects of a deteriorating global economy, including destabilizing digital ecosystems.
Xapads Media’s COO, Ramnik Chadha, looks back to 2022 and discusses six things to watch from an economic/industry and technological perspective in the digital advertising space.
1. Web 3.0 and the emergence of the metaverse
When Web 3.0 was conceptualized in 2014, continued adoption will begin in 2021, making 2022 even brighter. Since then, many new terms have penetrated major fields such as Blockchain, Decentralization, DAO, NFT, etc.
In a written statement on Wednesday (December 28, 2022), Ramnick said, “We have now confirmed that we are interested in brands executing their communications by adopting an experience-oriented metaverse platform versus standard banner or video ad formats.” “he said. .
While still in its infancy, he believes user adoption of the platform will grow exponentially, forcing brands to retool their digital marketing strategies.
For example, brands like Gucci, JP Morgan Chase, and Coke are experimenting with experience-based communication on their platforms. Then they did well and paved the way for other brands to gain more clout this way.
2. A World Without Cookies
Digital advertising and cookies are like two hands in one glove. Since the dawn of digital marketing, brands and ad tech platforms have relied heavily on these two components to build audience segments and retarget customers.
Google is one of the beneficiaries of this, but the current idea is to remove third-party cookies by the end of 2023.
“Without first-party or third-party data based on cookies, it’s difficult for brands and ad-tech platforms to target the right consumers,” Ramnick said.
This is emerging as the biggest challenge in 2022, as most ad tech companies are investing heavily to comply with Google’s policies.
“They’re preparing for a cookie-free future,” Ramnik added.
In today’s hybrid world, people live both offline and online. So it’s important to understand how digital advertising affects offline sales and vice versa.
It is also important to identify and target the same users on both channels (multichannel/omnichannel) to get more subscribers and achieve higher ROAS.
Brands, advertisers and ad tech platforms have invested heavily to overcome these challenges over the course of the year with much success.
“Digital advertising spend by crypto-backed companies increased during 2021-2022, making them one of the largest digital advertising spenders throughout 2022,” Ramnick said.
However, he estimated that cryptocurrencies will decline in the second half of this year as governments and central bank rules tighten around the world.
Unsurprisingly, the cryptocurrency market cap is down more than 70%. This could lead to an abrupt halt in the marketing efforts of crypto-based companies.
On the other hand, Ramneek sees the gaming sector growing exponentially during the pandemic.
Many believe that this has happened because of the hybrid business model implemented at the beginning of the pandemic and will change once stability is achieved over the next few years.
However, these assumptions have proven to be at odds with the continued growth of the sector, with gaming companies becoming one of the largest ad spenders by 2022.
Many countries are seeing 5G network implementation this year as speeds are up to 20 times faster than 4G.
As a result, content consumption is skyrocketing worldwide. At a much higher rate, more people are consuming video content via streaming, OTT and streaming platforms.
Later, several sports events were also broadcast through the live broadcast platform, encouraging more users.
The consumption of video content through smartphones and smart devices has finally made brands or advertisers interested in running video ads through the platform. This leads to a massive increase in advertising spend on the platform.