In today’s rapidly evolving business landscape, companies of all sizes actively adapt their marketing strategies to keep pace with changing consumer behaviour.
This article explores 12 marketing trends to reshape the industry in the next few years.
1. Harnessing the Power of TikTok
Social media plays a pivotal role in business marketing plans, with over 90% of US companies investing in social media promotion. However, one platform that remains underutilized by marketers is TikTok.
Despite its immense popularity, only 4% of social media marketers leverage the platform. Many dismiss it as a Gen Z-oriented platform or struggle to understand how to promote their brands effectively through its unique content format.
Nonetheless, TikTok’s rapidly growing user base, exceeding 1 billion worldwide, and high engagement levels make it an attractive marketing channel.
Industry experts increasingly recommend that businesses emphasize TikTok due to its sheer number of active users and untapped marketing potential.
2. AI-Powered Personalization
Today’s marketing strategies rely heavily on data, enabling companies to create personalized interactions between their brands and consumers.
Personalization has become a key driver of purchase decisions, with 80% of consumers more likely to buy from brands that offer personalized experiences. However, a significant challenge lies in transforming data into actionable insights.
A staggering 78% of businesses lack trust in their data quality, hindering their ability to leverage Personalization effectively. Interestingly, consumers are highly willing to share data about themselves, with 90% stating they would do so in exchange for a more convenient or cost-effective shopping experience.
Successful examples of Personalization, such as Crate and Barrel’s “view in my room” feature, demonstrate the potential for data-driven customization.
3. E-Commerce Empowers Instagram
Instagram, known for its strong visual appeal, is making significant strides in e-commerce. Instagram has become a hotspot for marketing professionals with an ever-expanding user base, adding more users than any other social platform between July and September 2020.
Boasting over 1.28 billion active users as of May 2022, the platform provides a fertile ground for brand engagement. Surveys indicate that 36% of users follow brands and companies on Instagram.
As Instagram continues introducing new e-commerce features, marketers can leverage its growing audience to drive business growth and connect with potential customers.
Don’t forget to read: Top Digital Trends
4. Influencer Marketing for Every Business
Influencer marketing remains a powerful strategy for companies, from mega-influencers with millions of supporters to nano-influencers with smaller yet highly engaged audiences.
Projections suggest that the influencer marketing industry will reach $15 billion by 2022, nearly doubling its value from 2019. This strategy offers a compelling return on investment, with 48% of marketers reporting better or much better ROI than other channels. Influencer marketing provides $5.20 of value for every dollar spent.
Noteworthy examples include Dunkin’ Donuts’ successful partnership with TikTok influencer Charli D’Amelio, which increased sales and app downloads. As marketing experts anticipate a renewed focus on authenticity after recent societal changes, partnering with authentic influencers is expected to gain prominence in the coming years.
5. YouTube Ads: Expanding Reach and ROI
With a decline in traditional television viewership, companies are redirecting their advertising budgets to more effective platforms.
YouTube has emerged as a powerhouse in advertising, boasting impressive financial figures. In 2021, its global revenue skyrocketed to nearly $29 billion, marking a substantial 46% increase from the previous year.
During the first quarter of 2021 alone, ad revenue experienced a remarkable surge of 49%, surpassing the $6 billion mark.
In the fourth quarter of 2021, ad revenue on YouTube peaked at $8.6 billion. A report by the Social Media Examiner reveals that 52% of marketers are currently leveraging YouTube. In contrast, over half of all marketers express interest in gaining deeper insights into YouTube ads.
Digital marketers utilizing YouTube ads enjoy access to an extensive potential audience, with a monthly reach of 1.7 billion unique visitors.
Their affordability makes YouTube ads even more appealing, costing a mere $0.03 to $0.30 per impression.
An exemplary success story is Grammarly, a cloud-based typing assistant with 30 million users. They recently adopted YouTube’s full-funnel ad strategy, focusing on long-term brand building and acquiring new customers.
The outcome was remarkable, with a 9% higher return on investment (ROI) than solely utilizing awareness advertising. Moreover, they experienced a 13% increase in conversions while maintaining the same ad budget.
In conclusion, the evolving marketing landscape of 2023 and beyond emphasizes the significance of social media platforms. However, today’s consumers demand authenticity and Personalization from businesses.
Brands that strike the right balance between paid marketing efforts and fostering direct digital word-of-mouth from their customers are poised to achieve exceptional success in the years to come.