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  • Writer's pictureGian Sharma

Navigating the Future: Digital B2B Advertising in 2023

As we approach the end of 2022, digital marketers find themselves at a critical juncture. The ever-changing marketing landscape, coupled with the potential of an impending recession, has put pressure on marketers to prove their value. To stay ahead of the curve, it is crucial to understand the emerging trends in digital marketing and prepare for the challenges and opportunities that lie ahead in 2023. In this blog post, we will explore the insights provided by Magna's Advertising Update and delve into what to expect in the realm of B2B advertising in the digital sphere.

Economic Downturn and Digital Growth

Magna's report highlights a projected slowdown in non-cyclical ad spending due to recession fears, leading marketers to cut discretionary expenses. However, despite this cautious approach, digital ad spending continues to grow. In fact, the report predicts that full-year media owner revenues will surpass $300 billion for the first time, with a growth rate of +9.8% over 2021.

While traditional Out of Home ads saw the highest growth in 2022, digital formats such as Search and Digital Audio were not far behind. This indicates that the digital transformation witnessed during the pandemic is here to stay. The key takeaway is that digital advertising will remain a primary medium for B2B marketers in 2023, reaffirming its significance in reaching target audiences effectively.

Display Advertising Takes Center Stage

The dominance of traditional search ads in B2B ad spending has been shifting. Display advertising has experienced substantial growth, narrowing the gap between the two formats. Magna predicts that in 2023, display advertising will overtake search advertising as the preferred choice for B2B companies. However, search ads will still continue to be relevant and show growth, emphasizing the importance of utilizing both formats strategically.

To maximize results, marketers must understand the unique strengths of search and display advertising and leverage them in tandem. By complementing each other's advantages, businesses can create comprehensive campaigns that resonate with their target audience effectively.

Evolving Social Media Landscape

As pandemic restrictions ease and people return to their normal routines, social media ad spending has slowed down. However, this does not indicate a decline in digital advertising overall. Instead, marketers are exploring new avenues and formats, such as audio streaming, podcasting, advertising-based video on-demand (AVOD), and short-form digital videos.

While social media remains an essential component of any digital marketing strategy, businesses must be more creative in capturing audience attention. This presents an opportunity to develop bold and engaging ad campaigns that go beyond social media platforms, tapping into emerging digital formats and captivating audiences across multiple channels.

The Rise of Ad-Supported Video Streaming

Ad-supported video on-demand (AVOD) and connected television (CTV) have experienced substantial growth in 2022 and are projected to continue their upward trajectory in 2023. The introduction of cheaper payment tiers, including ads, has led to a heightened tolerance for advertising within the streaming environment. This shift in consumer behavior opens up lucrative opportunities for B2B marketers to reach their target audience through streaming platforms.

With the public's increasing acceptance of video ads on streaming services, AVOD represents a significant growth area for digital marketers. Furthermore, the potential for advertising on other streaming-based mediums suggests even greater growth potential in the future.

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