Josh Campo, CEO Razorfish.
With every digital innovation, data grows exponentially. Over the past 10 years, the world’s total data has grown from an estimated 6.5 zettabytes to 97 zettabytes by 2022. We’ve increased the size of phones, storage capacity in the cloud, and buildings with trusted servers to manage data. data growth. We also continue to increase the speed of digital exchange (i.e. 5G, fiber optic cables), which means more information can be shared faster between people, no matter the distance.
When combined with the speed of culture—how quickly a moment becomes a meme, or a dance goes viral—digital technology has exponential momentum. Every industry has its own pace of innovation and culture. But marketing is uniquely necessary and must embrace its positioning to facilitate meaningful experiences and drive the exchange of value between brands and people.
As the leader of a marketing transformation agency, I am excited about emerging technologies and digital innovations. The world (or should I say “the world” – the physical world and the digital world) is racing at full speed as we fly through one new development after another. Just when brands learned about the latest thing to come out, another came along. And the pace is getting faster and faster.
Moving into 2023, marketing leaders will be looking for ways to modernize their approach, prioritizing authentic and purposeful experiences and venturing into new territories, all while adapting to current disruptions and focusing on the not-too-distant future.
With that, here are five of my predictions for 2023 marketing trends.
Shifts in consumer and corporate spending
In times of uncertainty, expect more conscious consumers to shift their purchasing patterns toward options that maximize impact, utility, and convenience. In response, marketing leaders are under greater pressure to deliver value when buyers are more selective. Organizations that adapt quickly to stay at the forefront of rapid change are nothing new. For example, most people have been shifting resources to digital channels since the start of the pandemic, and some have experienced multiple cycles of improved ROI and conversions as a result.
In 2023, a key change to watch out for is the loss of third-party cookies. While some businesses have been preparing for a cookie-free future for years, other brands will need to act quickly to reach potential customers in new ways.
Acceleration of physical/digital connections
The Covid-19 pandemic has brought about an accelerated shift from physical to digital experiences. In 2022, physical experiences are back for many, and while they remain important and valuable this year, those who succeed in 2023 will focus on creating moments that feel sustained and thoughtful.
We’re already seeing this as consumers spend more time in the Web3 space. Early adopters were resolute, with more than 70 percent of those who own or have owned virtual goods saying they value them as much or more than physical goods.
By 2023, I expect brands to be more strategic and selective in the way they test and learn in Web3. As new trends emerge and adoption grows, in order to be ready to take full advantage, companies must embrace the concept of creating a consumer journey that spans digital and physical spaces.
The Rise of the Next Generation of Marketing Leaders
The marketing landscape is rapidly evolving. Many traditional campaigns now have lower returns or less measurable ROI than digital channels. As a result, a new generation of CMOs is emerging, and they face many challenges heading into 2023. These forward-thinking minds are working to create positive brand experiences across channels that directly correlate to consumer spend and loyalty.
By 2023, I believe successful marketing leaders will focus less on traditional investments and more on where potential consumers are, such as Web3, live streaming platforms, and other evolving digital communities. They also need to understand the importance of technology in this evolution, including artificial intelligence and machine learning, and start putting people in place with the right skills to meet these new demands.
Increased focus on alpha generation
Speaking of the next generation, Generation Alpha is by far the youngest brand-aware and tech-savvy generation, and they are already influencing households’ purchasing decisions, especially in the “toys and games, apparel, and food and beverage categories.” Given their extensive exposure to virtual spaces like the Metaverse, Gen Alpha’s expectations for experiences are not just evolutionary, but revolutionary.
This year offers brands a powerful moment to understand that these future consumers will be different from anyone before them, and now is the time to start preparing. Not only do brands need to understand how this exposure to technology and the virtual world will impact Gen Alpha’s consumption choices, they also need to recognize the impact these experiences will have as they enter the workforce in the coming years. If you don’t start preparing now for a massive shift in your brand’s consumer and employer base, it will be costly in the years to come.
Purposefully Push for Authenticity
With 82% of consumers choosing to buy from brands that represent a greater mission or purpose, organizations know this has become a priority. But by 2023, those committed to purpose-driven initiatives will need to demonstrate tangible results to make a real impression.
With true brand purpose initiatives, companies can reap growth and performance benefits through customer trust and loyalty. Businesses hoping to reap the rewards must successfully secure board and executive team buy-in to scale up these initiatives by demonstrating the power and impact of executing on the purpose of investing.
With the exponential acceleration of digital technology, exciting opportunities await marketers and brands. Those who will succeed in 2023 will be willing to move away from preconceived ideas about connecting with consumers, keep up with the pace, stay true to how brands add value, and use their potential to make the world a better place.
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