Industry Trends To Keep An Eye On Next Year

by Corinne Casagrande

If I had a crystal ball and could predict the future, I would have won the Powerball billion-dollar jackpot. But with changes happening in the U.S. media landscape daily, here are the areas of the consumer media diet I predict will shift most in 2023.

Listen More and Learn

Audio ad growth is led by podcasts:  Podcasts now dominate time spent for ALL audio, even surpassing the reach of AM/FM audio.  This growth comes from both time spent and new users; daily podcast listening has nearly doubled in the last five years, with two in five Americans now listening to podcasts daily (Source:  Edison Research).

People will watch podcasts like they listen to music videos:  Six in ten weekly podcast listeners prefer podcasts with video, and this makes sense, since YouTube isthe top preferred platform for podcasts (Source: Voices.com).

Play and Pay on Mobile

Gaming will continue to grow on smaller and smaller screens: It may be hard to believe, but most Americans are gamers; 66% play at least an hour a week.  The $85 billion gaming industry in the U.S. includes mobile gaming, with 74% of gamers playing on a smartphone (Source:  Newzoo). This trend will only increase as 5G adoption continues, since it allows games to run faster and clearer.

Gamers pay to play:  U.S. users are willing to invest to improve and personalize their virtual experience, showing a positive sign for the developing metaverse economy.  But brands can swoop in and provide relief to users, incentivizing opt-in ads in exchange for a “reward” within a game, or sponsoring gaming video content to build affinity for fans of streamers through videos and live streams.

Watch Differently

Ad-free streaming subscriptions will slow as consumers hit saturation:  With 80% of households having access to CTV, and now knowing that consumers are OK with watching ads on CTV, we may begin to see those with multiple SVOD services easing up a bit to cut spending.  Next will also finally be the time that many predict non-pay TV households will overtake the number of pay TV households, continuing the long, slow decline of traditional cable services.

As we look to 2023, what does this all mean for advertisers and marketers?  It will not be as simple as dusting off a cookie-cutter media plan from years past and making it work for the new year.  New strategies will need to be implemented to reach the right consumer, on the right platform.  Maybe that means trying something new in the gaming world, or reallocating funds from one medium to another.  But most importantly, it’s about keeping your finger on the pulse as things evolve, and being nimble and quick-thinking.

Here’s to a happy and successful 2023 for all!

View the original article published on MediaPost.