Payment using data instead of cash allows digital service providers to continue advertising despite privacy restrictions. (Photo: Unsplash)
It has been close to two decades that technological developments have dictated and shaped the advertising market, however it seems that in 2023 the technology giants will dictate the boundaries of the sector for advertisers in Israel more than ever, when personalized advertising becomes a standard not only on social networks but on almost every website and online platform.
A series of trends that have already begun to establish themselves in the world will also arrive in Israel this year and present opportunities and challenges to advertisers, which entail difficult decisions.
New era: not paying?
At least sign up
With a slightly fashionable Israeli belatedness, we are officially entering the First Party-Data era.
Or in other words - not paying?
At least sign up.
As surfers of American websites already experience, entering Israeli content websites may require a paid subscription or at least registration with an email address.
Most of the high-quality content that Israelis have become accustomed to consuming for free and with maximum accessibility - including podcasts - will gradually condition the use of surfers with consent to advertising use, in order to preserve the effectiveness of targeting and advertising in the era of third-party cookie restrictions on the part of Apple, Google and others.
The content sites will have to re-decide on their registration policies, and the advertisers - to decide whether these changes affect their media layout.
Not only on Netflix: personalized advertising on smart TVs
Liron Avraham. (Photo: Outbrain)
The changes in the privacy and targeting procedures also have the opposite effect, opening up to advertisers a long list of tools that are expected to benefit from increased effectiveness.
If there is already content that surfers are willing to sign up to consume - it now becomes valuable for advertisers, and new technological alternatives for personalized advertising are quickly emerging.
Where will this be reflected?
For example, in the expansion of personalized advertising on smart TVs and streamers, a trend that has already gained momentum overseas.
If most Israelis are familiar with the phenomenon mainly from watching YouTube, Keshet's and Click.tv's new ventures and Netflix's transition to an advertisement-based model are expected to make the model common in many homes in Israel.
More and more content entities are expected to adopt the model and offer us a discounted TV subscription for agreeing to tailor advertisements to us based on our viewing habits.
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The next generation of personalized advertising in podcasts
The podcasts, which have become more popular than ever in Israel in the past year, are also expected to join the personalized advertising revolution, and limit their availability to platforms that will require our consent to customized advertising in exchange for consuming the content for free.
In other words - instead of advertising offers based on personal surfing habits being without the surfer's knowledge as before - the new free content will require the surfer to make a choice - conscious consent to personalized limited advertising, or payment.
Much more than a gimmick: the AI tools are available to every advertiser
It doesn't end there.
Artificial intelligence (AI) tools are getting smarter and more advanced, making it easier for advertisers to allocate campaign resources across multiple sites and platforms.
The fact that advertisers can produce masses of A/B tests and choose a creative combination optimized for almost every surfer at a much lower cost than before, allows advertisers to be more efficient and effective on a variety of platforms and reduce dependence on the digital advertising duopoly.
The crack in the Google-Facebook rule: Advertisers on all platforms
This is a single aspect of a wider trend we will see in 2023, the decentralization of digital campaigns across more platforms.
The soaring costs of advertising on Facebook and Google, alongside the strengthening of the effectiveness of advertising on Tiktok, Amazon or sites on the open internet, lead to the dispersion of media purchases over more avenues, which will stand out even more during a recession.
You can already see that for the first time Facebook and Google are falling below the 50% mark and this trend is not expected to stop.
The new queen is not satisfied with just pairs of eyes
These trends will also affect the nature of the campaigns.
The type of relationship that advertisers manage with the brand's audience is tightening.
Content is still king, but the new queen is the drive for action - and she's starting to run the palace.
Advertisers will have to move from a strategy of waving their hands to millions of surfers who do not interact with them to shaking hands, providing value and motivating action.
This will be reflected in increasing customer engagement, creating meaningful relationships with the audience and increasing customer share.
Even in the shadow of the expected recession, digital marketing budgets are expected to continue to grow this year at the expense of traditional marketing channels.
In all channels and platforms, we expect to see a race of advertisers to prepare for the new age of privacy - to diversify and refresh the use of platforms and websites and to find the channels in which the targeting is effective, the engagement is high and the advertising investment is worthwhile.
These rapid changes are an opportunity for many brands to reinvent themselves and find more effective ways to maximize digital campaigns across multiple platforms.
The writer, Liron Avraham, is the director of Outbrain activities in Eastern Europe, Africa and the Middle East
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Outbrain
2023
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