What's on the menu for media in 2023?
Welcome back to dunnhumby's?The Science of Shopping?newsletter where we look at the trends shaping the future of retail, and share the top insights that matter most to retailers and CPGs. In this edition,? Julie Jeancolas gives her views on what 2023’s big trends might be from a media and advertising perspective.
1. Recessionary times demand sure fire solutions
For consumer packaged goods (CPG) companies, where competition is fierce, margins slim, and private brand products are waiting in the wings to take your place, the task of convincing consumers to choose your own products over a rival’s, or even to spend anything at all can be hard. Discretionary spend tends to be one of the first casualties of a recession, with shoppers typically opting to cut back on anything they perceive to be non-essential.
It's in this kind of environment that the focus turns to results – and more specifically, sales. It’s much easier to make the case for a bigger marketing budget when you can demonstrate how your proposals will improve the bottom line, after all.
Of the many benefits that retail media provides, one of the most important (from my perspective) is to be able to track the direct connection between what people see and what they buy. Few media channels offer that kind of tangibility in terms of measurement, and that appeal will only increase as brands find themselves needing a sure fire answer to a recession’s impact on sales.
2. Retail media measurement goes beyond ROAS
Having touted retail media’s value as a sales-driving, lower funnel activity, it’s important to acknowledge that it can also be used incredibly effectively across the rest of the marketing funnel, too. From awareness and consideration, all the way through to loyalty, retail media gives brands the opportunity to engage with customers in any number of objective-driven ways.
Naturally, that also means that advertisers need to be able to measure the impact of those activities effectively, no matter what they are. Key metrics here will include the ability to understand the impact of retail media on customer behaviours higher up the funnel, as well as a more nuanced appreciation of the long term impact of those activities – whether a customer is new or existing, whether they become a repeat buyer, and their lifetime value, for example.
3. No reprieve for cookies makes audience targeting the new priority
Can it really happen again? For Google, third time really does seem to be the charm, with the deprecation of third-party cookies in Chrome set to finally go ahead come 2024. Having been delayed out of both 2022 and 2023, that deadline now appears to be finally locked in, giving advertisers just over a year to find alternative sources of insight for segmentation, targeting, and measurement purposes.
While many CPGs have started collecting their own data in preparation for that date – via the likes of sweepstakes and digital promotions – a huge amount of work is still required to process and analyse that data in an effective (and, vitally, legally compliant) way.
This is one of the main reasons behind the growing popularity of data clean rooms – privacy-focused analytics software that can be used to understand which campaigns drove sales without exposing customer data. Not only do clean rooms enable brands to use that knowledge in order to refine their targeting and segmentation capabilities, they do so in a way that’s in adherence with current consumer privacy laws as well.
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The pending disappearance of cookies also helps to explain the growing importance of first-party retailer – it’s accuracy, granularity, and legislation-compliant nature making it a perfect (and in many cases much better) substitute for what is being taken away. For CPG marketers, who’ll undoubtedly want to maintain and improve their customer understanding and audience targeting capabilities come 2024, retailer data is likely to end up being their preferred replacement.
4. Social channels suffers as the advertiser exodus continues
From the metaverse to Musk, it’s been a strange year for two of the world’s social media giants. Meta’s shift in focus towards virtual worlds looks set to continue despite shareholder protestations, and Twitter’s recent spate of users posing as “verified” entities is likely to have caused serious concern for any marketer with even a passing interest in brand safety. Spend will continue to shift away from those platforms as a result, which will only benefit brand safe environments offered by retail media...
5. Personalisation is the new “price of admission” for marketing
For consumers, personalisation is now a basic requirement. Naturally, that goes much deeper than just having a contact centre or live chat operator being able to pull up your details, too – it’s a truly pervasive expectation.
For marketers, that’s both an opportunity and a threat. On the plus side, the data, science, and media products needed to deliver on that expectation are abundantly available. The counterpoint to that, of course, is that consumer tolerance for those who don’t personalise their communications is becoming increasingly low. For marketers, personalisation is now table-stakes – and consumers are about to call.
6. Value-centric content takes centre stage
If there’s one critical rule to media creative, it’s that you need to capture the mood of your intended audience. As the cost of living crisis continues, the likelihood is that many brands will try to reflect that reality in their campaign creative.
While there will still be a place for glossy, glitzy, and aspirational messaging, I’m expecting to see a return to down-to-earth, value-centric content that serves to align advertisers behind the majority of their customers’ current economic realities.
There’s more at stake here than simple goodwill, too. As noted above, recessionary times can be dangerous for brands; with customers more easily swayed by cheaper products, positioning is key. Used well, media can help to show that you’re there for your customers through the good times and the bad, something that could end up having a critical impact on long term loyalty.
What do you think could be the top media trends for 2023?
Data Analysis | Data Science | Font-end Developer
2 年This is great
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
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Senior Marketing & Brand Strategist
2 年dunnhumby Personalisation has been a mega trend and is here to stay, so is value based content . Just wrote an article today on relevant content being in the main stay. A valuable article as cookies disappear and clean rooms take the centre stage eventually .