2023 is here, and it’s always exciting to think about what’s next in this ever-changing digital landscape. Conversations ranging from pandemic recovery to heading towards a global recession have filled the air with several uncertainties for the future. Considering this, marketers must continue to plan on how they can grow and increase engagement for their brands. The dentsu ad spend report released a few weeks ago showed 2022 as a strong year for the growth of advertising (~8%) as several markets were still recovering from the pandemic, but growth predictions for the future remain conservative. With ad agencies and companies releasing their year-end ad spend forecasts for 2022 along with future prognostications, we can expect the following things with some level of certainty:
- Ad spending will continue to increase but not at the same pace. (APAC 4.0%, EMEA 3.8%, Americas 3.7%).
- Digital will be the more preferred medium for advertisers, especially during unstable times. Digital ad spends are estimated to reach 57% of the total ad spends in 2023.
Without a doubt 2023 will be the year to sharpen our focus around customer retention and brand loyalty. To help our readers put their best foot forward this year, we have predicted top 5 marketing trends that you should know about to help you plan better for your brands.
- Creator economy will rise
Did you know? Zara Was the Most Mentioned Brand on Instagram in H1 2022.
-Statista
There has been a shift in the way brands are choosing social media profiles to promote their products. Number of followers is no longer an important criterion as brands approach profiles that have relevant content, organic engagement, and a strong sense of community to advertise their products. This has opened an opportunity for several micro-influencers that can be considered as experts in their niche. This helps content creators on social platforms to continue building their community based on relevant content without worrying too much about the increase in their followers.
Additionally, the emergence of several content creator funds from premium platforms like YouTube, TikTok, Meta, etc. gives creators an incentive to spend the time to create quality content.
2. Short-form videos will dominate
Did you know? Short-form videos ranks #1 for lead generation and engagement.
-HubSpot
Today, people use social media platforms to keep up with everything – family, friends, sports, news, entertainment, etc. This certainly leaves them with less time to spend on each post as they are trying to play catch-up, hence it’s no surprise that short-form video format has emerged as the crowd favourite. Furthermore, the increase in investments by platforms like TikTok, YouTube (YouTube Shorts) towards short-form video formats will also make it easier for creators to post content quicker. In 2022, 51% of marketers who had invested in short-formed video planned to increase their investment after seeing the ROI (HubSpot Blog’s 2022 Marketing Industry Trends Survey). This shows that the format has proven to be promising for ad campaigns on social media.
3. Experimenting with Metaverse and Web3 will gain ground
Did you know? A digital Gucci bag was sold for over $4100, outbidding the item’s real-life price
-Hypebeast
Brands have started to think about reaching their audiences in more unique ways, leading to experimenting with immersive experiences and virtual reality. A McKinsey report estimated that the metaverse could reach up to $5 trillion in value by 2030. In line with this we’re seeing a shift emerge in the gaming and fashion verticals, as they are choosing to invest more in experimenting advertising opportunities in this space. Meta’s relentless commitment to Metaverse and its massive investment in Web3 based projects has encouraged brands to understand how Web3 will evolve and what it would mean for them.
4. Super Apps will be on the rise
Did you know? One in three people in the world are super app users
-Dentsu Report
Over the last decade we started to slowly see tech giants starting to diversify from their core services, adding several features or related solutions along the way. Uber isn’t just a ride-booking app, Line is no longer just a chat app and Google is more than just a search engine. Each of these, and so many more are becoming an on-demand platform that meets multiple customer requirements. While Asia is certainly leading the way for super apps, we will see brands in the West also making headway in providing their customers with a fuller service so that there’s no need to download additional apps.
The biggest reason super apps are a success is because of the convenience they bring to the users. Brands can certainly evaluate if they can create a similar experience for their customers. It will be key for brands to understand and identify if there are similar diversification strategies that can be adopted across their owned channels.
5. AI and Automation will take center stage
Did you know? Netflix estimates it makes $1 billion annually from its automated personalized recommendations
– Business Insider
AI and automation technologies have the potential to revolutionize many industries and change the way we work and live. AI, in particular, has made significant strides in recent years and is being used in a variety of applications, such as image and speech recognition, language translation, and decision making. Many companies are using automation to automate repetitive tasks such as creating and scheduling ads, monitoring campaigns, and analyzing data. This helps to save time and resources, and allows companies to focus on more strategic tasks.
AI and automation are also helping companies to gain a deeper understanding of consumer behavior. For example, AI-powered tools can analyze consumer data and provide insights into what type of content is most likely to resonate with a particular audience. This helps companies to create more effective advertising campaigns and improve their overall ROI.
Overall, AI and automation are becoming increasingly important in the advertising industry, and are helping companies to improve their advertising efforts and gain a better understanding of consumer behavior. As technology continues to advance, we can expect to see even more uses for AI and automation in advertising in the future. (Generated from ChatGPT).
Our customers are constantly embracing new mediums to connect, share and consume content. With uncertain times ahead in 2023, marketers must adapt and be prepared to leverage these mediums at the right time to make a perceivable impact for the brand.
