Five key consumer trends to consider in 2023
Kantar’s Media Trends & Predictions report for next year gives expert insight on changing consumer behaviour, and what this means for the media and marketing industries
As 2022 draws to a close, marketing and media leaders look towards 2023 with apprehension. With the cost-of-living crisis showing no signs of abating, geopolitical conflict within Europe and a climate crisis whose shrill call to urgent action is growing by the day, consumers everywhere are rapidly changing their behaviours.
To give the media and marketing industries much-needed guidance on what this all means for targeting consumers in the future, Kantar has drawn upon its expert insights to examine five key consumer trends and how these are poised to evolve as we transition into 2023, as published in its Media Trends and Predictions 2023 report.
Here Christine Matthews, head of TGI customer success, Ireland, at Kantar, summarises the five fast-changing trends covered in the report.
Is the future of content ad-supported?
As 2023 progresses we expect to see blended strategies across both linear TV and VOD offerings. Additionally, consumers will become more accepting of ad-supported services that reduce or remove subscription payment. However, this may provide a dilemma for advertisers. Recently released Republic of Ireland TGI data reveals that currently 15 per cent of Irish adults claim that they do not mind sharing personal information in return for more personalised TV ads.
We have seen the trend of diversifying content delivery strategies in 2022, aided by the growth in smart TV ownership and online delivery of content.
Next year will mark a new chapter for the TV and video market. Broadcasters are adopting the aspects of VOD strategy that best fit their positioning while preserving their points of difference, and VOD platforms are adopting traditional concepts like appointment TV and curated content discovery via linear channels.
How will advertisers respond to inflation?
According to Kantar TGI data, in May 2022, 33 per cent of adults in Britain – where inflation reached double digits – said they were finding it difficult to cope on their current income; an all-time high since the data was first collected in 2006.
Kantar’s 2022 BrandZ report confirms that businesses that invest in their brands outperform the market, and that investment in marketing remains the most powerful form of defence in times of economic crisis.
Strong brands simply retain more economic value during tough times and recover more quickly when market conditions improve. This was the case during the 2008 global crisis and, as this year’s report shows, it’s also true today across virtually all categories.
Data-based targeting in a cookieless world
With the deprecation of third-party cookies creeping ever closer, we expect to see marketers prepare for a post-cookie landscape by experimenting with proxy-based targeting systems and contextual advertising.
Meanwhile, consumer attitudes towards cookies are mixed. According to Kantar TGI data, 51 per cent of adults in the Republic of Ireland claim to regularly delete cookies from their devices. Younger adults are more receptive to exchanging personal information for relevant free content, while those who regularly delete cookies tend to be older.
For marketers, targeting within closed ecosystems – in which consented first-party data is available – will still be possible, but wider cross-platform targeting has hit the barrier of consumer privacy. There will be incremental improvement in the coming years, but the hyper-targeted ecosystem the internet once promised looks increasingly unviable and initial assumptions about the granularity of targeting outside closed ecosystems may have to be reappraised.
How technology is shaping the future for TV-based advertising
During the pandemic, many homes explored the full functionality of connected screens. Consequently, we’re now reaching the tipping point in smart TV penetration and usage, with consumers increasingly using their TV to stream content directly, connecting via apps and inbuilt IP services.
The evolution and adoption of technology within the TV ecosystem has opened up new and viable avenues for marketers and advertisers to reach audiences. One particular area is product placement through IP delivery.
As a result of increased smart TV penetration, offerings such as shoppable ads on TV and livestream e-commerce will also become more commonplace, providing e-commerce brands with the opportunity to take consumers from awareness right through to purchase, all within a single ad format.
A year of green innovation for media brands
Next year should be seen as a year of green innovation – whether that’s brands offering green products and services, media owners offering more energy-efficient services, or agencies rethinking how their planning and buying strategies are impacting the climate.
For example, leading Irish AdTech company Converge Digital, in partnership with Scope3, already include measurement of individual publisher carbon emissions on their platform. This gives advertisers the information they need to optimise and offset the carbon weight of their campaigns, as well as setting their own annual ‘carbon budgets’. A number of leading media agency groups in Ireland are already using this emissions data from Converge. It allows them to help their clients make informed business decisions that align with corporate ESG values but are also balanced with the need for advertising performance and positive business outcomes.
And as media plans seek to go green – charting the impact on energy use alongside existing brand metrics – media owners who can offer better carbon deals are likely to attract more business.
Download the Media Trends & Predictions 2023 report at: kantar.com/MTP23