Over the next year, exciting new trends will emerge in the field of digital marketing - for example, the role of Artificial Intelligence (AI) will be one to watch closely. To keep up with these trends, you will need an understanding of the fundamentals of digital marketing. Perhaps the most effective way to do this is to undertake a digital marketing course to enhance and ‘future-proof' your skills. Retailers supplying Consumer Packaged Goods (CPG) are leading the way in terms of innovation. Online shopping will continue to redefine the way people shop. There are however innate dangers that may emerge in the next year - supply chain instability may become a real concern.
Before evaluating the future trends heading our way, it's useful to look at the trends that got us here. In recent years the digital marketing sector has outperformed both the S&P 500 index but also other rapidly growing sectors such as information technology, telecoms, and energy. This is partly because of rapidly growing populations and incomes - particularly in developing economies. In some ways, the growth in CPG companies is simply reflecting wider demographic and economic trends. Product innovation has also been a driving factor, as has the sector's uncanny talent for passing on rising costs helping to dramatically improve its profitability.
In addition, CPG firms have increased their presence significantly outside their traditional strongholds, a trend that will likely continue. A significant proportion of income for companies such as PepsiCo is generated in countries outside the United States, while Coca-cola's international revenue has been boosted by more than half since 2006. Both these companies have leveraged digital marketing tools to enhance their footprint in developing economies.
Marketing and innovation are not strangers to each other. The pandemic provides myriad opportunities as well as challenges. Marketeers have had to adapt to the sudden suspension of real-world, in-person activities. The world is adapting to these changes pretty quickly. Here are some of the trends that are expected to emerge in the next year:
Marketeers had to cancel all kinds of in-person activities when the pandemic shut everything down. Virtual events took their place as the go-to method for interacting with consumers and potential customers. As the pandemic subsides, we are presented with two opposing forces. The impulse to get back together again and return to ‘normal' is a powerful one. However, many customers are content to keep things virtual. You'll need to create hybrid events that appeal to both audiences - both in-person and online. Augmented reality (AR) and virtual reality (VR) will be drivers behind this.
Influencer marketing is a powerful tool and will be with us for some time yet. In 2020, the industry was expected to be worth £7 billion ($9.7 billion) and by 2022 it is expected to be worth £11 billion ($15 billion). The majority of marketers claim that they spend more than 20% of their marketing budgets on influencer marketing. As Artificial Intelligence (AI) becomes more widely adopted, it will increasingly drive influencer marketing. AI can view and analyse millions of influencer videos in ways that an individual cannot. An AI-powered approach lets you engage with only the conversions and influencer activity you want to observe. This is likely to have a profound effect on Return on Investment (ROI).
Consumers are increasingly turning to sustainable brands and organisations that support the green economy. Businesses will be increasingly aligned with sustainable targets and charitable objectives that matter to them. Your marketing campaign shouldn't stop at simply showing your support for a charity. Your marketing objectives should reflect this worldwide move to a more sustainable world.
Marketeers will need to stop using cookie-based targeting techniques. Consumers are increasingly concerned about data protection and data management - digital marketing will adapt to meet these concerns. Marketeers will need to use new technologies like Federated Learning of Cohorts (FLoC) or Google's Privacy Sandbox to personalise and reach consumers without invading their privacy.
The rise of the consumer-packaged goods (CPG) sector over the last few years has been remarkable. In that time, the CPG sector has delivered a variety of new products to suit an ever-growing list of human requirements. Also, the market has expanded and now includes exciting new and developing economies. Digital marketing has been a big part of this expansion and shareholders have reaped the rewards of these initiatives. The above trends will ensure that this continues.
by Basit Ali | 27 Sep 23