Rewind 2023: Digital media will be a key driver for adex growth - Aparna Tadikonda

It’s that time of the year when we review the most significant industry developments as the year draws to a close. Adgully is reviewing the year 2023 for the M&E, advertising, digital, marketing, PR, and communications, along with leading names in the industry as part of our annual Rewind series.

Recapping the year 2023, Aparna Tadikonda, EVP – South, Interactive Avenues, speaks at length about the shifts in consumer behaviour, key trends they have observed emerging, their expansion plans in 2024, and much more…

Performance of the digital sector in 2023

With major shifts in consumer behaviour, marketers had to re-align their key strategies in 2023. Digital played a crucial role in helping brands reach their target audiences effectively. Many D2C brands pivoted to digital as their primary channel for their advertising needs. Even categories like FMCG are adopting digital-first strategies to optimise their spends, remain ‘always-on’ and ensure top of mind recall amongst consumers. From data-driven strategies to hyper-local personalisation and ROI-driven performance, digital media became mainstream for many brands. With the digital sector witnessing 35% growth this year, digital media will become a key driver for adex growth across categories going forward.

Key industry trends in 2023

Some key trends that were prominent across industry categories:

Increase in AI and Automation: Greater use of artificial intelligence and automation in various aspects of digital marketing, including chatbots, personalised content recommendations and more.

Growing importance of video marketing: Video content dominated social platforms, with short format videos like Insta Reels and YouTube Shorts climbing popularity charts.

Influencer marketing coming of age: Continued growth and maturity of influencer marketing, with brands focusing on long-term relationships and KPI accountability.

Personalised customer experiences: More emphasis on personalised consumer experiences, with advertisers leveraging data to deliver tailored content, offers and communication to their target audiences.

Surge in CTV advertising: Changing preferences and behaviour of consumers powered the growth of CTV advertising. CTV’s current reach is estimated at 35 million households and is poised to reach ~60 million households by 2026, with predominant viewership across metros, affluent and younger audiences. The trends of cord-cutting and cord-shaving are further accelerating the growth of CTV throughout India.

Outlook and plans for 2024

The year 2024 promises notable shifts in the digital ecosystem, driven by technology, data and privacy. Data will be at the forefront of our digital transformation strategies, with a focus on delivering business outcomes like improved efficiencies, lower operational costs and exceptional revenue growth. We will continue developing and leveraging best-in-class AI/ML capabilities to deliver better content recommendations and seamless, personalised user experiences across touchpoints.

The industry will also witness growth of immersive technologies like Augmented Reality (AR) and Virtual Reality (VR), enabling more engaging and interactive user experiences.

As third-party cookies phase out, brands will accelerate the use of their first-party data and self-service ad platforms. We also expect to see increased awareness of privacy issues leading to more stringent regulations, impacting how organisations collect, use and manage consumer data in compliance with privacy laws.