Welcome to 2022: The only constant will be change.

by Iván Markman, Yahoo Chief Business Officer

2023 is just a formality: The time is up on identity

While the future of identity will continue to emerge and evolve in 2022, time waits for no one – and the time for a world with cookies is quickly running out.  Google will  not grant another extension, and  cookies and IDs have already eroded across major operating systems. Those that delay risk revenue loss and consumer irrelevance.

The good news: this time crunch will yield new audience creation, engagement and measurement solutions. The importance of first-party data to create these solutions is undeniable and the relative weakness of those without that access will increase.

The new year will also elevate the discussion on value exchange – specifically, the strength of a brand’s offering to entice the consumer to connect. We all understand the premise of data for access, but true brand loyalty, advocacy and affinity will reign as key trust elements incentivizing consumer signups and consent. While in the past a simple online transaction would have justified a brand’s use of cookies, in 2022 and beyond, what the brand stands for and the value it provides consumers will be key to first-party data activities and trusted engagement more broadly.

Lastly, next-generation contextual advertising solutions will break through as a key component to the future of identity. Not your 1990’s, standard contextual, but contextual paired with rich and real-time data insights supporting and, in some cases, augmenting how audiences are inferred in a cookieless world. As non-addressable inventory eventually overtakes addressable, contextual – paired with those critical data insights – will help brands deliver meaningful connections while supporting consumer trust.

When advanced TV is one-third of the Upfronts, it’s mainstream and a mainstay

TV viewership continues to skyrocket, with CTV at the forefront of that growth and consumer engagement. In 2022, brands will refine their strategies and unlock incremental linear reach with CTV spend. But with fragmentation across linear and CTV viewing, robust frequency management across both will be critical to the effective use of ad dollars.

We’ve seen the Upfronts become more CTV-centric, and now that it makes up a third of Upfront spend, it’s no longer experimental – it’s a mainstay. At the same time, the critical task of eliminating overlap and excess household frequency requires advertisers to increase the sophistication of their CTV buys. This will include a higher percentage of CTV bought in the Upfront and activated programmatically instead of IO. It also leads to a decrease in programmatic guaranteed spending and an increase in bidded private or open marketplaces. These changes allow advertisers to manage their campaign reach and frequency more dynamically and granularly.

The light is always on: Commerce access anytime, everywhere

Consumers are looking for a shopping experience truly specific to how they want to buy, interact and build a relationship with a brand. A data-driven retail strategy is mandatory to deliver that level of personalization. As the industry moves toward a cookieless world, first-party data and direct consumer relationships will be critical.

Retailers are seizing advertising opportunities to deliver even more customer touchpoints and provide greater personalization at scale – from in-app and loyalty programs that enable faster checkouts to real-time in-store pushes offering product suggestions based on the customer’s unique needs.

With support from consumers, brands will push the boundaries of immersive experiences, going beyond “try ons” to fully interactive experiences that make shopping more fun and convenient. We expect to see a resurgence of tech like QR codes that make it easier to get brand experiences into consumers’ hands. Lastly, a growing demand for more contextual shopping experiences that feel less branded and more authentic will come to life through native ads, dynamic PDAs, or dynamic creative. Strategic advertisers and agencies will lean into this to deliver on evolving consumer expectations.

Through the consumer lens

I’m finishing this look forward with a look back at CES 2022. Advancements in autonomy, digital wellness, AI and immersive entertainment filled the show floor. Be on the lookout for these emerging consumer trends to chart the industry’s course for the year ahead.  Watch the video recap now.