Which trends in e-commerce and advertising will be important in 2023?
The year 2022 was characterized by consumer reticence on the one hand and a lot of movement in the advertising market on the other. What does 2023 have in store for the industry? We asked our experts what they expect from this year and which trends will be important. Sabine Jünger and Markus Vones from OTTO Advertising, Kim Niedner from OTTO Market and Lara Fiebig from the UX team reveal what they expect as they look to the future.
from Yasmin Yiu
#1 Cookieless Future
Cookies have been the foundation of personalized user experiences in advertising for years – now the cookie is crumbling. Now that the question is “What does the future look like without cookies?” many advertisers are concerned with their data sovereignty. “For us at OTTO, data is clearly a high asset. The data of the 31 million active user accounts of the Otto Group is not only valuable for our advertising business partners,” says Sabine Jünger, Vice President OTTO Advertising. She adds: “For me, this also conceals an ethical responsibility: We protect our customer data by protecting the data in our own ecosystem and at the same time offering cross-channel solutions – in this way we make the data maximally usable for our partners.”
#2 Programmatic Advertising
“For me, it’s quite clear that retail media will continue to be one of the strongest growing segments of the advertising market in the future,” knows Markus Vones, Division Manager Sales & Account Management at OTTO Advertising. In the area of programmatic advertising, it will still be a matter of reaching the right person at the right time with the right message. Only through AI and machine learning can the collected amount of data be managed and efficiently harnessed. “In order to control advertising campaigns in the best possible way, the main thing is to optimize the technology across the entire funnel – which is why we are currently successively moving all products onto our specially developed marketing tech stack,” reveals Markus Vones.
#3 Shopping Apps with top User Experience
The increasing use of mobile devices has significantly driven online retail. Millenials and Generation Z in particular use their devices not only to make the purchase itself, but also to research and browse before making their purchase decision. They shop more frequently via their mobile devices compared to the older generation. Shopping apps are becoming increasingly popular in this context – they shine with an excellent user experience, personalization and additional functions. “The OTTO app is more important than ever in terms of sales, because millions of orders are placed via the app every month. App users spend comparatively less time in the app than desktop users, usually less than five minutes. But they have a higher return rate,” reports Lara Fiebig, Strategic UX Manager. “In terms of traffic, the app has already overtaken the store at otto.de.”
#4 Sustainability in E-Commerce
In e-commerce, price is no longer the only deciding factor. Half of digital consumers now say that environmental and sustainability aspects influence their consumption decisions. It is therefore essential for e-commerce companies to address the issue of establishing more sustainable processes, products and procedures. Kim Niedner, Head of Sales and Partner Portal OPC at OTTO Market emphasizes, “As Germany’s largest online store, we also have a social and environmental responsibility. We want to be carbon neutral in our business processes by 2030 at the latest. Clear guidelines for our marketplace partners are also part of this further development.”