From Clicks To Connection
Thursday, June 6, 2024Article
Marketing and advertising is undergoing significant change, as audience attention shifts, buyer attitudes evolve and tech firms and tech advances open up new possibilities.
Continued shifts in audience consumption
Attention has shifted from traditional linear and pay TV; brands seeking younger audiences need to seek them out on digital video and social media. Gaming is increasingly mainstream and increasingly monetized by advertising; the metaverse, and augmented reality (AR) are nascent but have appeal particularly to Gen Alpha.
Emphasis on Measurable ROI … has it gone to far?
The growth of ecommerce has fueled the growth in digital advertising and within that, performance marketing; the historic 80/20 brand:performance mix has now reversed. Whilst questions are now being asked about whether this shift has swung too far, it is all-too-easy to spend on platforms like Meta and Google, who offer easy planning, buying and attribution tools, and forge direct relationships with brands.
There is also a growing cohort of digitally native advertisers, who have a tendency to prioritize digital media over traditional channels like TV, radio, and outdoor advertising, and control a growing proportion of media spend. As these brands scale and grow, it is key for them to evaluate whether their media mix maximises their marketing effectiveness; and for traditional media owners to forge direct relationships with them.
Agile Marketing Operating Models
A notable trend is the movement toward in-housing marketing functions. Brands are internalizing capabilities and processes to enhance agility, streamline operations, and ensure coherence across marketing activities. Whilst the right approach varies from brand to brand, the optimal approach allows for better integration of marketing efforts across the funnel, optimizing both spend and creative output.
Innovation and Technology
Technological advancements, from increased connectivity and addressability, data, and of course generative AI (Gen AI), are poised to revolutionize ad product innovation. Gen AI promises to enable real-time optimization of creative assets, more personalized advertising, and efficient creative processes. Moreover, the ad-tech landscape is evolving with new partnerships and innovations in programmatic advertising. The convergence of media buying budgets and the development of cross-media universal IDs are opening up new opportunities for brands and media owners alike.
Strategic Considerations for Brands and Media Owners
As these trends reshape the marketing and advertising landscape, brands and media owners face new risks and new opportunities.
For brands, ad innovation through tools, techniques and data presents an amazing array of ways to reach your consumers in an intimate way. This will also enhance the brands’ ability to optimize marketing spend, making it work smarter and harder. However, there is increased competition in the space for brands. Consumers have ever growing expectations around brand authenticity, ESG and targeted content. The stakes are high: brands who navigate this increasingly complex space well will thrive, and those who do it badly risk compromising brand equity and sales.
For media owners, innovation opportunities abound across product innovation and go-to-market expansion, which can expand the set of use-cases up and down the marketing funnel; and enable access to new buyers via new sales routes. Forging strategic partnerships and innovating together is critical to just ‘keep up’ in this race; the alternative is to risk shrinking relevance and declining revenues.
By addressing these opportunities and risks, executives can navigate the complexities of the modern marketing environment and drive sustained growth and engagement.
For further discussion on our expertise, please reach out to our team we’d be happy to support.
Kim Chua, Partner
Ye Chen, Partner
Mostyn Goodwin, Partner
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