AdRoll, the leading marketing and advertising platform that helps direct-to-consumer brands of all sizes grow their businesses, released the Q2 2023 edition of its State of Digital Marketing Report, a comprehensive summary providing invaluable insights into the changing digital marketing landscape in the first quarter of 2023. The report encapsulates a deeper understanding of overall marketing trends and offers strategic ideas to further improve marketing return on investment (ROI) during these dynamic economic times.

“At the start of 2023, businesses faced the challenge of consumer post-holiday blues, resulting in lower advertising costs and conversion volume due to fatigue and recession worries,” said Vibhor Kapoor, president of AdRoll. “However, as the year progressed, we saw a shift in mindset, causing a gradual improvement in conversion volume throughout Q1. In these circumstances, marketing leaders must optimize ROI across marketing channels to succeed.”

Marketing Technology News: Martech Interview With Mike Nash, President, KS&R

AdRoll analyzed data from 2,000 online businesses in North America across finance, beauty and fashion, fitness, technology, travel, and other industries, resulting in these key findings:

• Businesses Spent Less Advertising, But Still Saw Success. Advertising costs in Q1 were at their lowest in the past two years, even while online conversions increased. Consumer sentiment improved and continues to be stable. Advertising costs are expected to remain below the level of the past two years through the summer.
• Marketers Can Make the Most Out of Their Budgets with Retargeting. Even more so than handling decreasing budgets, marketers are focusing on how to allocate those dollars. Retargeting will become an essential lever as advertising budgets continue to shrink and return on ad spend (ROAS) is prioritized.
• Integrated Marketing Strategies are Necessary for Effective Marketing. Businesses should prioritize conversion-driving campaigns by focusing on optimizing multi-channel retargeting. By identifying cost-effective channels and leveraging email, companies can accurately target visitors who left their website without taking any action. Exploring and experimenting with paid media platforms like display and social media advertising can expand businesses’ reach to target audiences by using tailored messages to increase the chance for conversion.
• There’s Two Sides of Media Channels and You Should Know the Difference Between Seizing Opportunities and Overcoming Challenges. The vast amount of media channels available presents both a marketing opportunity and a challenge. Businesses should rely on digital management tools to help them effectively run multi-channels campaigns and optimize performance.

Marketing Technology News: 6 Ways to Elevate E-Commerce Content and Experience Management to Optimize Your Digital Presence