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The digital marketing landscape has been increasingly dynamic, to put it mildly. Pandemic-related restrictions and data security / privacy regulations prompted hundreds of companies to reexamine old strategies and platforms for ad placement, but what should a marketer expect next year? Together with the VlogBox team, I painted a picture.
Influencer Marketing: More Inclusive and Data Driven
Data from mid-2020, collected by public relations, creative services and digital marketing agency Matter Communications, revealed that surveyed consumers trusted information from influencers more than information offered only by brands, and also that the Social distancing and other pandemic restrictions have accelerated that trend, as social media users interact with influencers more frequently. The survey also indicated that more than half of Gen Z members and millennials consider the opinions of social media influencers when making a purchase decision.
It’s a little surprise, then, that most influencers now see themselves as entrepreneurs. A so-called “creative economy” has emerged, with more than 50 million independent content creators, and that new sector has reached the $ 1.3 billion mark in investment in 2021, according to a report published in July. New Yorker Article. There are also clear signs that influencer marketing is getting more polished and professional: As more brand ambassadors see it as real work, they have become more selective and cautious about endorsed products.
A key factor to consider is that most influencers are driven by inclusion today; Consumers closely monitor opinion leaders and brands to see if they embody diverse and inclusive cultures. Marketing campaigns that contain inclusive messages, such as #ShareTheMicNow, have attracted growing interest, so companies hoping for successful collaboration with influencers should develop or accentuate their inclusive components.
Influencer marketing on social media can be a great way to target a specific demographic, but finding the right influencer and measuring ROI can be a tricky proposition.
Related: Time to redefine the influencer
Mobile marketing and the rise of social shopping
One would expect to see a slight decrease in mobile device use due to the pandemic outbreak – after all, people have multiple devices at their disposal at home. However, recent data from Statista has indicated that this is not the case: 70% of users surveyed, he claimed, use mobile devices more than ever. A parallel dynamic is that expectations for a seamless mobile commerce experience are also higher than ever, and a frictionless and contactless shopping experience on social media is expected to be a turning point soon. One possible consequence of this could be the rise of “buy now, pay later” (BNPL) applications such as Klarna. At the same time, brands such as Walmart and Kroger have introduced “buy online, pick up in store” (BOPIS) applications, which were partly responsible for the latter company reporting an impressive 92% increase in sales in the US alone. first quarter of 2020.
The emergence of 5G opens up additional possibilities when it comes to mobile marketing. For starters, live trading is gaining momentum, with China leading the way here. Alibaba’s Taobao Live earned a staggering $ 7.5 billion in e-commerce transactions in just 30 minutes on Singles Day (November 11) in 2020. Meanwhile, TechCrunch reports indicated that no less than 37% of online shoppers in China (or 265 million people) made livestream purchases in 2019, and the industry is projected to generate $ 60 billion by the end of 2021. Combining an instant shopping experience with a reaction of audience through the chat feature clearly results in better audience engagement, and such social buying will only amplify. Since Walmart and Facebook hosted their live streaming events this year, it would be safe to assume that Western companies will try to keep up with their Chinese counterparts.
Related: Why Brands Should Be Excited About The Evolution Of Social Shopping
CTV advertising on the rise
Current Connected TV (or CTV) viewing figures have far exceeded pre-Covid-19 levels. Despite strong over-the-top (OTT) broadcast and viewing numbers over the past ten years, people have begun to take advantage of CTVs as they spend more time at home. However, the CTV industry is far from homogeneous: Roku tops the list, followed by Amazon, Samsung, Apple, and Vizio. Even with such network diversity, Roku is the obvious choice for most programmatic ads (49% of the CTV market), with Amazon coming in second, but still significantly behind (9%).
One possible reason that viewers are showing interest in CTVs is the availability of many emerging streaming and entertainment services. Launched in 2019, Disney + alone reached 54 million subscribers worldwide in less than half that year. (It took Netflix several years to achieve similar results.) After beating even its most optimistic forecasts, the company began producing no fewer than 57 new Disney + shows in 2021.
Given that 15% of US viewers canceled their cable subscriptions last year (a figure that is projected to double when the 2021 figures are counted), CTV is on track to gain audience exposure yet. higher. Video streaming is undoubtedly leading the way, but games show great potential, accounting for nearly 20% of all apps on Amazon Fire TV and Apple TV. Connected TV advertising is also proving to be more effective than traditional TV advertising, with CTV viewers 42% more likely to purchase advertised products as a result of the ads, according to ExchangeWire.
Related: Like mobile apps after the iPhone launch, CTV apps are ready to blast
Facebook is still king, but will Snapchat see another breakthrough?
As reported by SproutSocial, Facebook, Instagram, and YouTube are the top three media platforms that e-commerce consumers use to stay in touch with brands. But will they stay that way, given that, for example, TikTok is growing faster than any other social network? Certainly, Facebook is still by far the largest social media network on the planet, and despite steady organic decline for a few years, it still has a relatively low cost of $ 7.19 per thousand (CPM) compared to its counterparts. . Facebook will continue to occupy a special place in millions of marketers’ toolkits, although Apple’s iOS 14 update will likely force it to consider allocating some of its advertising budgets elsewhere.
Snapchat shows signs of continued growth, albeit slightly lopsided (its number of users in the US outpaces users in the UK, France, India, and Mexico combined). In demographic terms, the average Snapchat user is between the ages of 15 and 25, and the company has recently made moves to beef up with Gen Z users, adding AR features and Snap games to the platform. 2022 is expected to mark the first time that Snapchat will bring fierce competition to Instagram.
Although Twitch is generally considered a streaming platform, it does have some social media features, such as a streaming chat. While live video is among the most valuable content formats, this platform, which was initially popular with the esports-oriented audience, now has virtually any type of content to offer to its 44 million and counting users. Generation Z, including music, lifestyle and even cooking.
Product placement goes programmatic
According to Bloomberg, streaming video product placements will exceed $ 23 billion in 2021. What makes that such an effective advertising strategy? Unlike typical ads, this placement cannot be bypassed or muted – it is indistinguishable from the original content.
Numerous studies confirmed that it also improves brand awareness and creates a positive attitude towards advertised products. However, placements can generate negative connotations if they are made too obvious, so subtlety is the key and predisposition towards a certain product is very important, especially when viewers are lacking in general information. Product placement must also become increasingly measurable in terms of performance, so that marketers can accurately predict ROI, and another change around the corner could be the introduction of a programmatic approach to placement. of products in CTV and OTT devices.
Games and audio
The video game advertising market consists of the mobile, computing, and console segments, with projected revenues of $ 4.2 billion worldwide in 2021. Despite this apparent market potential, publishers are cautious when integrating Ads in games, especially since it has been reported that failure to provide an immersive advertising experience can disrupt the gaming process, potentially creating a risk of damage to high-value game IPs.
Virtual reality (VR) technology in the gaming market is projected to grow at a compound annual growth rate of 32.75% between 2021 and 2026, and the games and entertainment industry seems like a natural fit for the virtual reality. The retail industry is also likely to be among the early adopters of augmented reality (AR) technology, with 70% of customers wanting to have a “try it before you buy” experience. AR and VR have comparatively limited advertising capabilities as of now, but there will likely be prime time for such tools.
Finally, there is the audio advertising sector, which has existed since the advent of radio in the early 20th century. In 2021, this market has been limited primarily to streaming music and podcasts, with a projected volume of $ 3.177 billion. Recently, Spotify launched its first B2B audio campaign that proved to be more immersive and engaging than traditional radio and television, and such audio advertising is showing clear signs of maturity as it is a solid alternative to radio ads.
Related: 11 Unique Spotify Podcasts For Entrepreneurs
In 2022, advertising will be driven by inclusiveness and a broader targeting of millennial and Gen Z audiences. At the same time, customers will demand an even better and more immersive shopping experience, while marketers will still look back. more towards programmatic media buying. Social media will continue to be dominated by Facebook, but Snapchat will have something more to offer.