Dentsu’s 2023 predictions: a bigger role for advertising

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Originally published by The Map The Map •

Advertising is set to regain a bigger role in media economics as subscription content services add new ad-funded offerings, according to a 2023 forecast.

The 2023 Media Trends report from media agency network dentsu International – whose agencies include Carat, dentsu X and iProspect – spotlights 10 trends executives across the group believe will bubble-up in 2023.

Chief among them is new ad-supported offerings from Disney+ and Netflix. They are services which have epitomised the recent booming era of subscription video-on-demand.

“However, times are very different now,” the report says, citing three factors:

  • a slow-down in subscriber acquisition.
  • the spiralling cost of premium entertainment production.
  • suppressed demand from consumers bitten by cost-of-living increases.

In early 2022, we wrote how “Media’s fourth wave could mean an advertising renaissance” – how these factors are likely to return advertising to increased prominence within media economics.

And dentsu agrees, urging brands to explore new opportunities in ad-funded channels, including ad-funded content and product placement.

Media’s fourth wave could mean an advertising renaissance

10 trends for 2023

Here are all the Media Trends 2023 dentsu executives expect to be key…

Content

  1. AVOD eats SVOD – new ad-supported streaming services could grow revenue while increasing subscribes.
  2. Games Everywhere – media services and social platforms will aim to add games.
  3. Attention Brings Back the Essence of Advertising – new attention metrics will level actual consumer attention.

Commerce

  1. From Going Shopping to Always Shopping – with ubiquitous retail channels, shopping becomes an always-on state of mind.
  2. Retail Media Shakes Up Adland – ads on retailer sites bring creative close to point of purchase.
  3. The Rise of the Super App – inspired by Asia, social and commerce apps diversify their offerings.
  4. No Way Back for Third-Party Cookies – transition from the old identifiers goes into overdrive.

Community

  1. ‘Going Live’ goes a long way – services will discover how live content brings communities together, with live commerce taking off.
  2. Responsibility takes centre stage – societal concern will drive more brands, while sustainable supply chains will be a top priority.
  3. Social algorithms give users what they don’t know they want – playing catch-up to TikTok, social platforms will focus less on surfacing followed content and more on the right content.