Amazon Ads: Advertising industry trends to watch in 2023

Partner content provided by Amazon Ads


The one thing we can count on as marketers is that nothing stays the same for long. Change is constant, and the advertising landscape is evolving faster than ever.

Digital consumption is at an all-time high, which is exciting for advertisers. But with a growing number of devices connecting customers with more media channels, customer journeys are becoming increasingly fragmented.

In 2023, it is projected that digital media consumption will outpace traditional media consumption. By 2024 this will reach record highs, with nearly eight and a half hours of digital media being consumed globally on an average day[i]. Beyond mobile devices, the average time spent on connected devices – including TVs, game consoles, wearables, and smart speakers – is also projected to grow 23 per cent by 2024 compared to 2020[ii].

Amazon Ads provides holistic solutions across the funnel that can help guide marketers through this fragmented and complex advertising landscape.

With another year firmly behind us, Amazon Ads reflects on the new opportunities on the horizon for brands and businesses to reach their goals in the coming year.

Retail media evolving: The interconnected worlds of ecommerce and digital media 

As connectivity and content consumption among customers increases, the retail media landscape has evolved. Ecommerce is here to stay, and in 2023, customers will still head online for discovery, convenience and ease of fulfilment[iii]. Audiences are now engaging with e-commerce and digital media in an interconnected way, and this presents a big opportunity for brands. Looking at our region, MENA is a ~$2.8 trillion economy with a young, digitally sophisticated population, making the region a fertile ground for digital solutions.

E-commerce revenue is expected to show an annual growth rate of 19.51 per cent through 2025, resulting in a projected market volume of US$20.04bn by 2025, and an e-commerce user penetration of over 70 per cent.

Making ad dollars stretch further

As consumers across the world are more budget-conscious, advertisers will also look at how to make their ad spend work better for them in 2023. For example, an Advertiser Perceptions study[iv] looking at the advertising industry as a whole reports that about 49 per cent of advertisers in the US have already pulled or paused ad budgets for this year. The industry is already seeing a “flight to performance” in advertisers’ remaining spend. During a time when brands are particularly focused on getting more from their investments, actionable insights and measurement are critical in developing campaigns that effectively resonate with audiences. From brand building and demand generation to omnichannel outreach, brands will be searching for ways to maximize their ad spend and supporting those decisions with measurable insights[v].

Future-proofing your business

To navigate this new landscape, having a plan to future-proof your business can help. There are three key areas of focus that can amplify and extend your e-commerce and digital strategies:

  • Develop fluency in your core retail topics, including retail management, content management, merchandising, brand building and analytics.
  • Equip yourself with a strong understanding of the interconnections of online retail and media to both build your brand and help grow sales.
  • Having a full-funnel approach, inclusive of e-commerce, is where you can see real growth.

Brands no longer have the luxury of planning for the online shopping revolution and retail readiness — it is here and gaining some serious momentum.

Retail media is evolving and Amazon Ads has a range of full-funnel solutions and first-party insights to support your audience strategy and deliver meaningful results. We can help both native brands selling on Amazon and brands that sell elsewhere, including automotive, finance and travel.

Leveraging first-party insights for brand and business growth

As we head towards a cookie-less future, first-party insights will become even more vital in fueling audience strategies, creating contextually-relevant ad experiences and generating closed-loop reporting and measurement. However, according to a study by Advertiser Perceptions[vi], 85 per cent of advertisers surveyed believe that first-party audience insights are superior, but 1 in 3 advertisers don’t believe their current first-party insights strategy is mature enough.

From shopping to streaming to gaming, Amazon Ads is integrated into consumers’ daily lives. These touchpoints give us billions of signals, enabling us to generate unique first-party insights. We have the ad tech to help – including Amazon Marketing Cloud (AMC), Amazon DSP, Amazon Publisher Direct and our Sizmek Ad Suite. With these, we are tackling challenges like ad addressability, cross-channel measurement, and efficiency.

Media sustainability

In 2023, sustainability will be one of the most top-of-mind themes across the industry, according to industry experts. Even more importantly, customers will have their eyes open for brands merely discussing sustainability versus those that prioritize sustainability in all parts of the business. “The Rise of Sustainable Media,” a March 2022 global study from Microsoft and dentsu international, surveyed more than 24,000 consumers from 19 different countries about their awareness and behavior as it applies to sustainable consumption and media usage[vii]. On a global scale, an overwhelming 86 per cent of those surveyed said they’re concerned about climate change and 91 per cent agreed that companies can positively impact efforts to curb climate change through business operations[viii].

Visit the Amazon Ads’ website to find out more about our products and solutions.

[i] Global Media Outlook Report 2022, YouGov, global

[ii] Global Media Outlook Report 2022, YouGov, global

[iii] E-commerce Worldwide Statistics and Facts, Statista, 2022

[iv] Advertiser Perceptions study, July 2022

[v] unboxed 2022: 4 advertising trends to watch, Amazon Ads, September, 2022

[vi] Advertiser Perceptions, July 2022

[vii] Why a sustainability strategy is critical, Business Insider, November 2022

[viii] The Rise of Sustainable Media, Microsoft and dentsu international, March 2022