Over the last two years, I made marketing predictions like the QR Code would rise again, everything would be an ad network, physical and digital spaces would unite into a phygital world, and brands would become more defined by their customer experiences than their actual offerings. Despite a marketing ecosystem that is deeper than ever, these trends are rapidly being adopted and changing our world. For example:
- QR codes are being used to launch web services natively for augmented reality (AR) experiences, no app required.
- According to Magna, retail media networks (RMNs) are expected to grow by 12% in 2023, reaching $121 billion.
- Walmart is pursuing new ways to connect physical and digital worlds in the metaverse. (Yes, the metaverse is still a thing, and it’s growing).
- According to Forrester, it’s more important than ever for brands to master customer experience, as “devoted customers will pay 50% to 200% more to stay with your brand.”
And although I mentioned artificial intelligence (AI) in general, we all saw how transformative it became in 2023 – thank you OpenAI!
Looking forward to 2024, the constant that continues to tie all these trends together is data – in all its many forms. Data is only becoming more powerful, more differentiating, and more prized as a brand’s most valuable asset. The trends that will move us forward will continue to focus on combining data and technology to create informed customer intelligence, in turn delivering better experiences for people and growth for brands.
Trend #1 – AI-Powered Personalization
Future-forward brands will use AI, not simply to supplement content creation, but will adopt it to fuel the next wave of personalization, including predictive personalization – anticipating consumers’ needs before they even express them. By understanding customer behaviors, preferences, and historic interactions, brands can craft and deliver bespoke customer experiences across their owned properties to truly delight customers in ways they never expected. This is where brand loyalty is built.
Strategic momentum: In the race to optimize user experience and engagement, pioneering brands are already realizing tangible returns on their investments in AI and machine learning (ML). By leveraging more first-party (brand-owned or created), and zero-party (consumer-volunteered) data, brands can enable and enhance these experiences.
Potential stumbling blocks: The substantial costs, lack of talent, and foundational requirements for these AI endeavors cannot be ignored. In a recent Acxiom study, Where AI and Marketing Collide, we found 88% of organizations do not actively predict customer needs using AI, with 42% citing not having sophisticated enough analytics capabilities, and 31% citing the lack of internal skills as the reason. Furthermore, potential GPU shortages could stymie the swift development of data intensive initiatives like AI.
Your next step: Don’t wait to get started. Make sure you have a solid data foundation in place – ensure your data is accessible, connected, and compliant – and it’s everywhere you need it to be. Choose an area of your business to lean into more precise personalization, like loyalty, and test and learn. Marketers have been talking about right time, right message, right channel for decades, but now more than ever, they have the chance to make it a reality.
Trend #2 – Seamless Digital Commerce
The digital commerce domain continues to expand, including direct-path-to-purchase in a variety of content forms like display, video, and messaging. Following China’s lead, major platforms will foster native commerce functionalities, striving to retain consumers’ time and money within their ecosystems. According to the IAB, sales through social commerce are expected to grow to $82 billion in the US and $7 billion in the UK by 2026.
Strategic momentum: This paradigm shift can be compared to the prevailing Amazon model – integrate purchasing and advertising everywhere you can. Amazon is expected to capture 12.4% of all US digital advertising spend in 2023, and is growing advertising by offering ads in video, live sports, audio, and grocery. Tech companies like Agora are also launching real-time APIs to enable live stream shopping, while TikTok debuted its shopping platform to US consumers this year.
Potential stumbling blocks: Shoppable ads are still relatively new to consumers. In our research, we found that while 62% of consumers were aware of them, only 17% have made a purchase through shoppable social media, in particular. In addition, any less-than-ideal customer experiences could redirect consumers to more trusted pathways, like conventional search engines and retail media networks.
Your next step: Pick one place to start; consider digital seamless commerce capabilities in a channel you already use. Be smart about who you offer shoppable ads to. For example, certain audiences tend to be more familiar and comfortable with seamless digital commerce; consider this as you wade into these waters.
Trend #3 – Immersive Content Evolution
I continue to see a more pronounced amalgamation of the digital and physical realms. Phygital is here to stay. Brands will incorporate AR and virtual reality (VR) elements into their digital presence across fan and customer experiences, weaving together engaging narratives and elevating user experiences from websites and apps to out-of-home advertisements and venues.
Strategic momentum: Noteworthy sports and entertainment events are integrating AR, and mobile devices are easily facilitating the experiences. Given Gen Z is now the largest generation in the US and most got their first smart phone before they were 12 years old, the audience for immersive content is only growing. Coupled with the advancements in AR and VR technology and a surge in investments toward differentiated experiences, a new digital era beckons.
Potential stumbling blocks: If brands misstep into inauthentic or overtly commercial experiences, they’re likely to find themselves with less than stellar consumer engagement at best and a black eye for their brands at worst. Additionally, technical constraints, demographic-based adoption rates, and virtual space privacy concerns remain challenges.
Your next step: Stick to experiences that make sense for your brand. Immersive content only works if it’s relevant and engaging – whether that be entertaining, inspiring, or educational. A great place to start is by working with a creative agency to add an immersive content experience to your next campaign plan.
Trend #4 – Voice-Centric Content
The digital landscape is resonating with the sounds of the future – literally. As households increasingly adopt smart speakers and seemingly every new device has smart voice search capabilities, brands will pivot toward voice-optimized strategies. Be prepared for chatbots that sherpa users through experiences and entertain people, as the surge in interactive voice content increases across diverse domains.
Strategic momentum: The smart speaker market is expected to reach $29.38 billion in value by 2023, up from $9.73 billion in 2022. That robust growth combined with burgeoning podcast audiences, adoption of voice in key areas like automotive, and strides in natural language processing (NLP), all herald a voice-centric revolution. Google, OpenAI, and Microsoft, along with numerous startups, will make voice marketing as easy as accessing an API.
Potential stumbling blocks: The voice search domain has limited major players; think Amazon’s Alexa, Apple’s Siri, or Google Voice. Brands will have to figure out how to navigate voice search algorithms, just as they constantly adjust their traditional SEO strategies. Additionally, there’s the need to monetize voice content, but with users generally averse to voice advertisements that can feel intrusive and stifle adoption, not to mention growing laws regulating biometric data. Headlines regarding “chatbots gone wild” continue – this is not smooth sailing, yet.
Your next step: Invest in a strategic content plan, asking yourself: What does your audience want and expect from your brand and ultimately where will they engage? How will you make the message and experience brand safe? What does voice content cost to create and how can AI help or hinder you? What are your competitors doing and how can you differentiate? Ultimately, what will be your ROI – is it about driving awareness or adoption?
Surprise and delight for the win
Moving forward, brands will struggle to keep up with the innovation happening around them. It’s no secret that technology is moving at break-neck speed, with connected IoT devices projected to reach 29 billion by 2030. The innovator’s dilemma will continue, and brands will be displaced by upstarts and known competitors who lean in smarter and faster to the innovation and available new capabilities.
As consumers, we have an insatiable appetite for new things and love to be surprised and delighted. Data-driven marketers who deliver on these promising experiences will win in 2024.
