Standing out in an Oversaturated Market
Frontify has recently conducted research on the relationship between brand and marketing. The results, indeed, were surprisingly shocking. They found out that 92% of brands face challenges in standing out in an oversaturated market.
Marketing is often seen as a battleground with differing priorities: Performance versus branding and creativity versus rationality. Nevertheless, these aspects must coexist.?
At the same time, economic pressures have heightened the focus on short-term results, often at the expense of long-term brand equity. Meanwhile, marketers face the challenge of navigating new channels and customer behaviors in an environment where consumer attention is scarce and competition is fierce.?
How can the brand allocate itself to the market noise? How did recent trends lead to such an outcome, and what can we learn from it? Adello's team analyses the research results and highlights the important key points.
Creativity is the way?
The research survey highlighted that creativity in marketing is viewed as more crucial now than three years ago, with roughly two-thirds of respondents predicting its growing importance in the next 3 to 5 years. Only a small fraction believe it will become less important. The primary reason cited for this trend is the need to differentiate brands in a crowded market, with 77% of brands and agencies acknowledging the difficulty of standing out in today's advertising landscape.
To stand out in creativity as a brand and marketer, it's important to encourage innovation and divergent thinking. At the same time, brands and marketers have to deeply understand their audience. This knowledge allows to create messaging and campaigns that resonate personally and powerfully.?
Adello, for instance, takes a client-oriented approach and tailors campaigns that represent the brand in the most creative way. Examples of ad creatives can be seen in the Creative Gallery.
It’s hard for brands to keep up with the changes in creative marketing
"Do more with less" has become increasingly relevant as marketing budgets face certain constraints, yet the emphasis seems to be shifting towards simply "doing more."?
Marketers are feeling the pressure. A survey reveals that the only aspect where brands are perceived as succeeding is in achieving short-term performance goals. Both brands and agencies agree that brands are facing challenges, particularly in adapting to changing consumer behaviors, with 64% of brands and 81% of agencies noting struggles in this area. Over 90% of participants indicated that standing out in the crowded market remains a significant hurdle for brands.
To navigate the challenges of adapting to evolving consumer behaviors and standing out in a crowded market, brands should focus on gaining deep consumer insights, adopting agile marketing tactics, and effectively leveraging digital platforms. Also, cutting the marketing budget has a negative influence on sales in the long term perspective.
Short-term gains don't match up with the long-term value of the brand.
42% of brand marketers and 39% of agencies focus primarily on performance metrics. However, this emphasis on short-term results presents challenges in building long-term brand equity.?
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Marketers may need to shift their focus toward branding strategies to differentiate themselves in a competitive market. Yet, measuring the impact of creativity remains a significant obstacle to this shift.
Tension remains between brands and agencies?
The survey revealed a complex dynamic of collaboration and conflict between brands and agencies. Both parties acknowledge a "complicated" relationship characterized by differing expectations and communication challenges, with 41% of brands and 47% of agencies. Behind closed doors, brands criticized agencies for a lack of understanding of their core activities, while agencies lamented that brands do not provide sufficient time for developing impactful ideas.
Brands and marketers can hold a balance by focusing on quality over quantity in their messaging. By prioritizing valuable, relevant content that genuinely resonates with their audience, they can avoid overwhelming them with excessive promotions. Implementing targeted marketing strategies can also ensure that messages reach those most likely to be interested, minimizing the need for constant repetition.?
AI reshapes the creative future
Over 40% of brands and agencies believe generative AI will make creativity even more crucial in the future to differentiate campaigns. Respondents also shared their perspectives on the future of creative marketing with AI, predicting significant changes in agency roles and emphasizing the need for openness and transparency in facing the unknown possibilities AI brings.
The fast development of generative AI, has transformed professions like copywriting and illustration. Nevertheless, marketers have to adapt and see AI not as a threat but as a bicycle for creativity in marketing. By integrating AI's capabilities with human creativity, professionals are not merely adapting to but actively shaping the future landscape of their industries.
A need to be business-oriented
Survey results indicate that the key to creative marketing success is a business focus. Both brands and agencies rated it highly among factors like execution excellence, big ideas, unified teamwork, and shared creativity standards. While 92% of agencies and 87% of brands deem business focus crucial, over half of the brands prioritize it above all. In contrast, agencies also value big ideas significantly, with 28% considering them most important, compared to 13% of brands.
To be more business-oriented, marketers should start by aligning their strategies with the company's overall business goals, focusing on metrics that directly impact revenue and growth, such as lead generation, conversion rates, and customer lifetime value. Also, integrating cross-functional collaboration with sales, product development, and customer service teams ensures that marketing efforts are cohesive and directly support the business's objectives. By prioritizing these elements, marketers can create campaigns that not only resonate with their audience but also drive tangible business results.
Bottomline
No doubt, in times of intense competition and rapid technological advancements, brands and agencies face certain challenges in distinguishing themselves and cultivating long-term brand equity. The key to thriving in this complex landscape lies in embracing creativity, adopting a business-focused approach, and leveraging the power of AI as a creative ally. By prioritizing deep consumer insights, agile marketing tactics, and effective cross-functional collaboration, marketers can design campaigns that resonate with audiences and drive sustainable business growth. As we look towards the future, the ability to integrate innovative technologies with human creativity will not only differentiate brands but also shape the evolving narrative of the marketing industry.