Future of Media Sales -- 2023

For Ad-tech, and the economy, I expect to see continued focus on AI, fast paced network protocols, cloud computing and blockchain.

So What can Advertisers and Agencies expect in 2023?

• Innovation -- especially in the areas of cross-device measurement, fraud, AI and ML based optimization and tools to find/deliver more efficiency
• A continued ad recession in national and global media and a potential impact in local as well
  • Local will be less hard hit because when the market slows, smart local marketers will become more efficient with their spending but cannot afford to cut back as much as national brands who have waste can
• A decline in the number of and possible closure of many second and third tier ad-tech companies, especially those not providing material value to the equation
• A focus on costs and results. Quite simply more of the ad dollar must go to media when budgets get smaller -- so reach extension, reseller, and ad-network like companies with their 50-300% margins will get hurt.
• Desperation from some sellers. More companies to stay relevant and survive will add a streaming, CTV or OTT message and a purpose-built message (regardless of whether anything was built or even exists on the tech front).
• Growth of Disney and Netflix in CTV
• Turnaround of the great resignation. With fewer companies in business, good companies will once again be in the pole position to hire and retain top talent.

How can one make the most out of the year, especially with budget cuts?

• Do not get fooled by new-fangled companies who have reinvented themselves with a bunch of marketing mumbo jumbo.
• Compare apples to apples not apples to chocolate and demand price transparency as well as disclosed margins. You should decide whether you can or want to pay the margins being asked, but you need to be a smarter buyer. Becoming more of an educated buyer is a must in 2023.
  • The move to the word transparency by the ANA and the industry has been like the move to CTR, VCR or similar instances. Asking for transparency just makes crooks work harder to take your money. A whole new group of arbitrage has been created, in the spirit of transparency. Some companies will now disclose media costs with their fees built in down to the publisher level -- but are not disclosing that their fees are 75-200%. I spoke to a client the other day who told me that our platform fee was higher than a new company they were speaking to. When they dug into what costs for media would be for publishers like the ones they have been buying, they quickly saw a CPM more than double what they were paying us, yet the company they were speaking claimed to be transparent. They were disclosing and sharing costs by publisher, but they were not explaining that they were adding such a large margin hidden in data costs that were 5x and other hidden fees. Yes, the platform fee was lower, but they had seven other ways they were taking margin and charging much more.

We have all seen moments like this before in our careers. For those who have not, this will not be the last time you see it (even if it is your first). Like in past periods, change breeds innovation. Innovation should breed success and success hopefully means smarter buyers.

Make yourself a resolution for 2023 to become a more educated buyer for your benefit and for the benefit of the company for whom you work.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.com/MyersBizNet.