Where Are Digital Marketers Allocating Their Budgets in 2023, and Why?
A challenging economy has digital marketers sharpening their pencils before setting their 2023 budget. As a result, investing in digital campaigns that produce strong, trackable results that can be tied to immediate ROI is more important than ever. Here are the six marketing channels that digital marketers consider non-negotiable this year.
Companies need fresh content produced rapidly to maintain a consistent and relevant digital presence. Consequently, digital marketers will be investing in video creation more than ever this year. Because video marketing is more engaging and produces a significant ROI, it has become a key component of any robust omni-channel strategy. Digital channels require different video formats and lengths, so a substantial part of the 2023 marketing budget is allocated to content production, editing, and customization.
Streaming Television Advertising
Also known as Connected TV advertising, this rapidly growing channel performs better than “traditional” TV commercials in a few key ways: it’s more affordable, targetable, and measurable than its cable and broadcast counterpart. Digital marketers leverage CTV's reporting and low-cost campaigns to optimize video marketing strategies. In 2023, over 50% of digital marketers plan to spend more advertising on streaming platforms.
PPC - Google & Bing
Google and Bing ads consistently produce positive ROIs for businesses, and PPC campaigns are a must on every digital marketer's budget sheet, across industries. In addition, these platforms provide in-depth reporting and data that can be used across other marketing initiatives to optimize campaigns.
In 2023, digital marketers will spend most of their social media budget on TikTok. Due to privacy changes on Apple devices, ad performance on Facebook and Instagram has severely decreased. In contrast, consumers are heavily engaged in TikTok ads. The platform's popularity has made TikTok an essential marketing channel.
Email is the most accessible and effective mode of direct response digital marketing, and digital marketers will continue to allocate budget dollars toward email content creation and campaign automation. This year especially, marketing teams are reporting more email sign-ups than in previous years, resulting in a renewed focus on optimizing this digital channel.
Purchasing AI tools are on the budget sheet for 2023. Digital marketers are using AI to drastically reduce the time spent on creating content. 2023 will be the year of efficiency. Utilizing AI tools is a big step towards automating digital marketing scheduling and content.