ChatGPT is set to transform the ad tech industry: Criteo report
The report captures the changing landscape of commerce media and the opportunities that retailers and advertisers will face in 2023.
Criteo, the commerce media company released its “2023 Commerce Media Market Trends Report”, which sheds light on how retailers and advertisers can seize opportunities in the rapidly evolving landscape of Commerce Media.
Taranjeet Singh, managing director, Enterprise, APAC, Criteo, said that in this competitive landscape, there are opportunities for retailers and advertisers to continue engaging customers while expanding their reach and it simply lies in their ability to identify and create shoppable moments. He said, "As the industry continues to evolve, Criteo is excited about the potential of commerce media and committed to empowering our clients with the technology and insights they need to succeed in this dynamic landscape.”
The report highlights 10 key trends that are set to alter the commerce media landscape which includes:
ChatGPT is rewriting marketing and retail playbooks
Generative AI like ChatGPT is set to transform the ad tech industry and will likely gain a permanent seat on the ad tech agenda due to its ability to provide a more personalized shopping experience. Retailers and brands are expected to adopt retail-specific generative AI tools to optimize their ad campaigns and improve customer service.
Gen Z’s new spending power is changing commerce
As Gen Zers move beyond TikTok and become more established as adults with significant spending power, advertisers are seeking to tap into this conscientious consumer demographic. In 2023, marketers will use a mix of tactics and platforms to reach this cohort and tap into their values around sustainability, affordability, diversity, and inclusion more efficiently.
Sustainability in advertising
Media buyers and owners are expected to prioritize eco-conscious practices in every aspect of their business. Adopting carbon-neutral campaigns, utilizing net-zero emissions marketplaces, and leveraging attention-monitoring technology to optimize ad effectiveness are all examples of this.
Omnichannel Becomes Essential
As online and offline channels increasingly converge, retailers and brands must accelerate their efforts to embrace a fully integrated commerce future. This will involve leveraging strategies such as research online purchase offline, cross-channel attribution, and physical attraction to create a seamless customer experience.
Data Monetization Redefined
By leveraging first-party, closed-loop data sets, advertisers gain valuable insights into consumer behaviour and preferences. Retailer data sets offer several advantages, including reliable and compliant data in the face of growing privacy regulations and the vulnerability of third-party cookie replacements. As a result, retailers' first-party data is becoming increasingly valuable for creating effective advertising campaigns.
The report also highlights that retail media will move up funnel, taking a greater share of brand spend. Additionally, agencies are expected to restructure themselves to become experts in commerce, and there will be a significant shift of media budgets towards the open web. Furthermore, budget allocation is shifting to new and emerging channels and focusing on product stock keeping units (SKUs) with greater precision is expected to generate outcome-based media.
