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What does digital advertising have in store for us in 2022?

January 13, 2022 3 minutes to read

To say that the digital advertising landscape has changed over the past year is an understatement. As more players take action to address consumer privacy concerns, the industry has transformed once again. Luke Dickens examines how to spotlight new challenges and opportunities.

The same can only be assumed in 2022, there are always new things to consider as well. Here are some of what we can expect for the New Year:

Social makes things happen

Privacy changes among tech giants will usher in a new reality for social media marketing. Forced monetization of apps is starting to dampen growth. Investors have traditionally expected these companies to grow 10-30% per year, but in 2022 we expect a 5-15% contraction. This isn’t devastating news for the industry as a whole, but we need to keep an eye out for the reaction from the behemoths of the tech world, especially Google, nonetheless. It’s no surprise that Google could benefit from the shift to search advertising or the imposition of restrictions on Android’s GAIDs. Anyone can guess which path they will choose, if any. Perhaps this helps explain Facebook’s pivot to virtual reality, which presents a whole new area of ​​opportunity for brands to get involved in the new ‘metaverse’.

Small independent publishers will finally be heard

Even though third-party cookies will disappear (we don’t predict whether Google will ever arrive at an end date), that doesn’t mean third-party data will disappear. The reality is that third-party data will continue to persist because the alternatives that will arise in its absence are not feasible for small publishers. First party data or contextual targeting may not be the solution for publishers who do not have enough data to scale. Contextual data only works inside its own domain, which is way too small for small publishers. Plus, marketers are less willing to engage with sites that don’t have as many monthly visitors as the bigger ones. The industry as a whole seems to have forgotten about the small publishers because they come up with ideas that won’t work for them, instead of ideas that will work for everyone. In 2022, the cries of these publishers will be better heard.

2022: The year of CTV. And 2023, 2024, 2025, etc.

We all remember “the year of the mobile” in the ad tech world, having lasted for over a decade. We should all expect CTV to dominate headlines for the foreseeable future. And why not? Australia is a world leader in the growth of CTV’s ad spend, more companies seeing the value of one of the fastest growing digital advertising channels. More inventory will become available as identity and connectivity solutions come to the fore. And praise, no third party cookies to fight. Never.

Dear identity partners: stop the infighting!

Identification solutions for the open web will be invaluable for publisher monetization, so in 2022 collaboration will increase dramatically. Identity Partners in 2021 operated in the Identity arena as a circular firing squad. Everyone claims their privacy is better than others, and anyone with a solution means theirs is the only one that works. In reality, all must work together. Lay down your guns, identity providers, publishers and marketers. Instead, let’s focus on our common goal of giving the consumer transparency and control while making everything more efficient. The end result will be better for everyone involved.

As we head into the New Year, marketers and publishers alike have a lot to keep in mind. As we’ve seen in the past, the ad technology industry is fragmented in some places and on the same wavelength in others, but now we are in a new era. Where we stand together and where we stay at odds will determine our collective future and the opportunities for the future.

Luke Dickens is the Managing Director, Australia and New Zealand at Lotame.