9 Marketing Trends To Watch As 2023 Tests Transformation Bets
Marketing propositions will be revisited in 2022, as pandemic-induced trends previously thought to be permanent prove elusive and the economic downturn creates a digital upheaval. This year will test whether the industry's transformative moves have long-term viability: Will ad-supported broadcast really overtake television? Can cookies and third-party altcoins be charged for measurement? What practical value does Metaverse offer?
Meanwhile, with the Microsoft-Activision and Kroger-Albertsons deals, the big companies can grow even bigger. Apple's reach will increase on difficult platforms like Meta, and retailers will expand their media networks to take advantage of the dollar-to-performance shift.
The fog of uncertainty that has hung over marketing since the dawn of COVID-19 has finally lifted, but unlike previous pandemics, when online interactions skyrocketed and war chests abounded, marketers enter 2023 with their belts on their insurance. With BeReal and TikTok fighting for traction on multiple fronts, consumers will further increase their foresight in favor of simplicity and utility.
"As I see next year, the fragmentation of the retail media network market, as well as video platforms and advertising products, will continue. But consumers are going to look back and really start to minimize where and when they consume it,” said Dave Kersey, director of media for GSD&M. "There are so many opportunities to connect with people, but people are turning to less centralized channels."
Consumers take a "cautious stance"
Consumers have had a tough time, dealing first with the pandemic, then with fears of inflation, war and recession. According to J. Walker Smith, Kantar's director of brand and marketing, 2022 saw its confidence, but for the most part it also showed resilience. However, uncertainty about what to expect has led many to move further into what executives describe as a "cautious stance".
"Starting in December, we're seeing consumers worry more about where the year will take them," Smith said. "And there's still a lot of uncertainty."
To successfully reach consumers in 2023, advertisers will need to focus more on already dominant strategies, including messaging for valuable value exchanges. This helps reduce the sense of risk in uncertain times. Brands "need to come together with positivity," Smith added, both in terms of messaging and optimizing logistics.
"Take the stress out of the deal," says Smith.
Given the larger human experience, the spirit that grows after pandemic restrictions are lifted will remain vital, Smith said. The emotional appeal of hard functionality will resonate, and companies will need to prioritize core values around sustainability, diversity and inclusion, while the expectation of representation remains.
"I don't think we're in a period of economic dislocation because he's not going anywhere, he's not going to change his commitment to those values," Smith said.
The CMO must ensure that fewer resources are used
CMOs may have limited resources in 2023, but the tools of the future promise new efficiencies. Artificial intelligence (AI) software like ChatGPT has gained traction and ethical AI has become a top priority for marketers. New channels that are hard to follow or "obscure" like Discord will be more important to understanding groups like Gen Z.
"A complex financial environment creates fragmentation and people working against each other across multiple functions."
Ewan McIntyre
Vice President of Analytics and Research Leader in Gartner's Marketing Practice
In terms of messaging, CMO follows Roe v. They will walk on a political shell after seismic changes like the decision to remove Wade. Roll wear will also have a greater impact on strength and packaging as inflation issues are on the agenda.
"We are observing diversification, where problems arise with innovation. More often than not, it comes from CMOs trying to truly anticipate changes in value that are the result of potential economic hardship," said Camilo La Cruz, chief strategy officer at Sparks & Honey.
All of this means that the CMO will have multiple roles when faced with high turnover, making long-term strategy more difficult to execute. In these circumstances, the need to protect oneself is natural.
"A complex financial environment creates fragmentation and people working against each other in different functions," said Ewan McIntyre, vice president of analytics and research leader in Gartner's marketing practice.
Recent Gartner research confirms that self-proclaimed shared vendors often underperform independent vendors. But the fact is, separate paths don't necessarily cost more, according to McIntyre.
“I don't think that means CMOs should try to work independently anymore. I think that means they have to learn to work better together," McIntyre said.
The power of retail media is growing and strengthening
During the cancellation period in 2023, media retail will grow as marketers seek a more direct line between ad impressions and sales. Spending is forecast to grow 10.1% to $122 billion this year, making it the fastest-growing media channel. The concept will follow Marriott's leadership in all categories, as well as in formats such as connected television (CTV).
"It's difficult for advertisers to manage all these partners."
Laurie O'Neill
Head of Global Retail and Consumer Products Strategy at LiveRamp
But the problems of media retail growth over the past year will also worsen. Some marketers will do the right thing by prioritizing performance and losing control of the process.
"The hope for 2023 is a better balance between brand and performance," said GSD&M's Kersey.
A more measured approach to media retail could mean consolidating power for fewer players. Physical giants already dominate this space, and the potential Kroger-Albertsons merger further underscores the importance of big data. Some retailers also run their own operations and create challenges for the partner ecosystem.
"It's difficult for advertisers to manage all these partners," said Laurie O'Neill, director of global consumer and retail strategy at LiveRamp. "They will get to the point where they leave with the top 10 or the top five."
While the Kroger-Albertsons deal is large and could still be challenged by regulators, other retailers may look to areas like ad tech to complement their digital infrastructure and talent.
"There is a belief that valuations will be more realistic on the buy and sell side in 2023," said Sean McCaffrey, president and CEO of GSTV. "I would suspect a market for new contracts in 2023."
Experts say data-driven partnerships, such as the new business alliance between Walmart and Roku, may also evolve as marketers pool resources to gain more insights.
The resistance of the water test board is tougher
The agency beat expectations in 2022 as legacy advertiser groups increased targeting despite inflationary headwinds. Some of the broader slowdown may finally accelerate in 2023.
"While the creative style may be driven by artificial intelligence, the name of your agency is less important than the results you can achieve with the data you have in your network of partners."
Greg Paul
Co-founder and Director of R3
Layoffs, previously unheard of in the industry, are on the rise, especially in the creative industry. With less appetite for bargains and bills changing hands during the pandemic, past purchases should show their worth.
"After several years of aggressive M&A, the parent company now needs to demonstrate long-term [return on investment]," R3 co-founder and principal Greg Paul said by email.
Investments in areas such as media and data also require new talent. Some researchers expect leadership to shift to more technology-oriented executives. Mass layoffs at Big Tech platforms could add to agency headcounts.
"As agencies continue their digital transformation, skill sets are relative and relevant to what we do," Kersey said.
However, attracting the right people will be difficult as the sense of agency culture is weakening. Individual agency brands will experience a decline, while the network's strengths, including new mid-sized players such as The Brandtech Group and Plus Company, will come into focus.
"Advertising is becoming more transactional. It's the nature of our media, information and technology culture," Paul said. "When creative talent can be generated by artificial intelligence, the name of your agency becomes less important." than the results you can achieve with the data you have in your affiliate network.”
The Metaverse has become less of a guessing game
Metaverse has been attracting traders since 2021, which has resulted in a large number of unique activations. There's still excitement around the concept, but this year will bring more clarity on privacy and security, especially for younger consumers, and a better explanation of what the term "metaverse" actually means.
"2023 is redefining the meta universe, from gaming to communication strategy," said Vatom CEO Eric Poulier.
Today, many meta universe activations mean activations on sites like Roblox and Fortnite. According to Matt Murut, principal analyst in Gartner's marketing practice, this understanding continues and will lead the platform to increase monetization through advertising. For brands to continue to take full advantage of this tactic, they must focus on differentiation.
"Initially, when you create a new skin or arena in a game, it's newsworthy. Now you should be able to create the right campaign promotion strategy with [KPI] in order to find value in it,” Mouret said via email.
The Non-Fungible Token (NFT) was once considered the darling of the meta universe. But controversies surrounding cryptocurrencies, including the collapse of FTX, have left the adoption of digital collectibles faltering. Regardless, Poulier de Vatom predicts that NFTs will find a place in loyalty by 2023, similar to what Starbucks is already exploring.
Augmented reality will continue to evolve in 2023, Poulier added, with giants like Snapchat leading the way. We can expect space activation to move beyond the entertainment filter and into an overall richer experience.
"You'll see people interacting with the boards in a variety of ways, taking items from them, putting them in their wallets, and bringing them back to the vendor to be attributed," says Poulier.
A diverse social strategy to gain trust, information
Consumers have shown a willingness to go beyond the social media status quo in search of exciting new beginnings, paving the way for apps like TikTok and BeReal. In 2023, advertisers will increase their engagement offers, preferring to test broader platforms as incumbents like Meta and Snap decline.
"We're seeing a lot of people from all different verticals really thinking outside the box," said Amy Rumpler, senior vice president of paid search and social services at Basis Technologies.
In 2023, the edgy video format that popularized TikTok will still be a shiny toy on social media, but not at the expense of longer videos, said Rumpler, who predicts shorter videos will be used to generate interest. longer content.
Rumpler adds that opting out of third-party cookies can lead to higher social media advertising costs and problems with channel targeting and measurement. At such a critical moment, Twitter will face the challenges associated with Elon Musk's dramatic acquisition.
Cookie stale deja vu
After Google backtracked after initially announcing it was rejecting third-party cookies, advertisers are looking for ways to protect their data investment. Experts predict that the year 2023 will not be different in the macro principle, but there will be new targeted decisions.
"I think in 2022, third-party cookies will be deja vu," said John Puterbaugh, Quad's executive director of innovation and advanced media. "All the action will revolve around the cookies themselves."
In 2023, attribution and measurement will come to the fore, especially as third-party cookies may become obsolete before they are completely removed. According to ID5 co-founder and CEO Mathieu Roche, 40% of global traffic is raw cookies.
New solutions to measurement and attribution issues will be expanded. For example, Trading Desk introduced Galileo in early January, which aims to provide accurate data across multiple channels. The clean data space is expected to become more popular after major players Amazon and Disney began expanding their capabilities last year.
"The bottom line is that the industry needs to move away from cookies and test and adopt next-generation identification solutions that are cookie-independent and provide better targeting and data protection mechanisms," Roche said in a email.
Sports marketing reaches the "tip of the nose"
Sports marketing will continue to be fragmented as consumers increasingly look to alternative platforms. NFL Sunday Ticket will move to YouTube TV for the 2023 season after Thursday Night Football moves to Amazon Prime.
"I predict that we will continue to see further consolidation of eSports teams due to the lack of revenue and the struggle that means the inability to raise the necessary capital."
Chris Mann
REV/XP Sports and Gaming Group Senior Vice President at Revolution
Amidst the digital push, there may be a difference for advertisers. While consumers expect to see the usual ads for packaged goods and alcoholic beverages, more are likely to appear from industries such as gambling and even cannabis.
Beverage giant Diageo will air its first Super Bowl ad this year. Additionally, sports betting platforms like DraftKings and FanDuel are competing for a piece of the pie. FanDuel topped $10 million live during the commercial break in the third quarter during Super Bowl LVII.
"We're now at a point where the money behind betting, the alcohol industry and the cannabis industry is so big that the leagues, the teams and the athletes can't continue to take money from them." . says Evan Scott Schwartz, partner and head of content at creative consultancy Kingsland.
Experts predict that other sports, such as soccer, will continue to grow in the United States. 31 percent of American consumers identify as soccer fans, an all-time high. Esports is also expected to attract sponsors, although this will be difficult as finances become tighter.
"I expect we will continue to see further consolidation of esports teams due to the lack of revenue and the difficulty in raising the necessary capital," said Chris Mann, REV/'s senior vice president of gaming and esports. XP to Revolution, by email.
The Women's World Cup is right around the corner, and the WNBA's ratings are steady. Some experts predict that women's sports could be better marketing investments than men's, if given the chance to grow.
"Investment in women's sports media, sponsors and athletes will continue to grow as more brands leverage their spend and see the power of the communities that have formed in and around women's sports," said Lou Kovacs, president of marketing. North America Octagonal, by email.
Broadcast fatigue is made for CTV
CTV will continue to be an important part of the digital ecosystem in 2023, with new ad-supported offerings from Disney+ and Netflix to watch out for. In such a fragmented space, measuring performance across channels will become even more important for brands, ensuring their message can cut through the clutter and engage jaded consumers.
"You avoid advertising," says Eric Schmidt, director of research at Gartner. «Мы все прапускаем рекламу, мы все блакуем рекламу, але ней у вас ијестье секрану, кали ... a very attractive segment of customers can avoid a large advertising segment».
У той час як стримеры вмяжиются за очные апблы, спаживцы может большу уважілівімі да таго, куді их манікі. Such services, such as HBO Max, already begin to play with cancellation and reduction of content cost, and this trend can continue. Warner Bros. Discovery is expected to launch a service that combines HBO Max and Discovery Plus in a step that will revolutionize the space.
In addition, the level of advertising support will become more important, since the platforms are looking for new sources of income and more economical users. Па мере таго, як спаживцы затягаважен паясы, телевизийный услуги на раздания курыуться рекламадавцами, и франционный телевизийный уставление з попутеряй прибратика выбера, проблемый буку расци.
Editing: John Puterbaugh is the executive director of innovations and forward-looking media at Quad. This article has been updated to accurately reflect the title that was incorrect in previous versions.
Comments
Post a Comment