Eroding consumer trust may impact advertising on social media platforms in 2023: IAS
Media experts have called out declining consumer confidence as a major concern with advertising on social media platforms, as in Integral Ad Science’s 2023 Industry Pulse Report. Despite that caution, the compelling reach and engagement of social media means the vast majority of media experts still plan to advertise on the same platforms next year.
“IAS research found 77% of media experts agree that the erosion of consumer trust in major social media platforms could negatively impact their media spending,” said Khurrum Malik, Chief Marketing Officer of IAS. “At the same time, marketers cannot turn away from the allure of reach and engagement that social media can offer. This love/worry relationship underscores the need for greater transparency for social media advertisers.”
Challenges for social platforms
- While more than nine-in-ten respondents (91%) plan to advertise on social platforms in 2023, the study shows a decline in monetization intent across platforms, except for a slight increase for WhatsApp (2% year-on-year year).
- Two-thirds agree that insufficient transparency will negatively affect their media spending.
Digital audio and video game advertising will continue to disrupt the digital media landscape in 2023
- Above the priorities for 2023, a majority of media experts (70%) agree that audio listeners will continue to migrate to digital formats.
- Industry experts foresee risks to media quality – a majority (66%) of respondents are concerned about ad fraud and brand risk in digital audio (55%).
- Publishers are positive about video game advertising, with more than one-third (34%) recognizing the potential for opportunities in the year ahead. Nearly one-in-five (19%) media experts plan to prioritize advertising in video game environments next year.
Additional key takeaways include:
- Growing demand for CTV: Nearly half of media experts (44%) agree that CTV and digital video hold the most potential for innovation in the coming year.
- Contextual targeting as a solution to privacy concerns: Nearly 6 in 10 respondents (58%) would prioritize contextual targeting to combat consumer privacy concerns and cookie abolition, while still targeting desired audiences at scale.
- Mobile prioritization continues: Mobile remains a key priority for nearly half of media experts (47%), which is understandable, given that consumers will spend more than 5 hours on their mobile devices daily.
The IAS Industry Pulse Report provides key trends and emerging technologies expected to shape the advertising industry next year. Working with YouGov, IAS surveyed more than 350 digital media experts, including digital advertising professionals representing brands, agencies and publishers, as well as ad technology providers.