MARKETING

By William Powell

7 Marketing Trends and Predictions

to Watch Out For In 2023

Image by Freepik

Over the past two years, marketing has encountered numerous changes, significantly influenced by continued inflation and impending recession that seems to be inevitable. This results in customers expecting businesses and brands to give them exceptional and personalized experience for products and services.

And since the expectation applies to all channels, marketing professionals must now scramble to grow and adjust with the evolution of consumer spending habits. Here are the top trends and predictions that marketing leaders must be aware of to achieve results while building consumer trust and confidence.

1. Social Media Influencers Will Continue to Dominate

Influencer marketing will continue to tout a potentially strong ROI, according to HubSpot's 2023 Marketing Strategy & Trends Report. More than 1 in 4 marketers are presently leveraging influencer marketing, which gives the second highest ROI among other trends. Influencer marketing will experience significant growth in 2023, the report says, and that 89% of marketers who are using influencer marketing will maintain or increase their investments next year.

2. ChatGPT AI Will Bring Major Disruption

No one can deny the presence and impact of ChatGPT anymore. While some celebrate the potential of the AI technology, others are concerned about its negative implications, most notably in the livelihood of content producers. The technology can both help and challenge agencies and freelancers whose main business is to produce content.

Producing content has definitely become easier with the rise of AI - with just a click of a button, one can easily create written material, images, and videos. This does come with a with a downside - marketers are apprehensive about the possible oversaturation of content. This will make it hard for high-quality content material to stand out from others.

When this happens, consumers will demand more creative and truly unique content. This will force content marketers to use AI in such a way to create quality content in the most appropriate context.

Image by rawpixel.com on Freepik

3. Local Marketing Will Continue to Dominate

Over the past several years, there has been a meteoric rise in the number of mobile users conducting "near me" searches for local businesses. Statistics from Google reveal that the search term "shopping near me" increased by more than 200% between 2016 and 2018. SafariDigital found that in 2022, nearly all consumers used search engines to locate nearby businesses. In 2023, the emphasis on local marketing will remain at an all-time high.

The experts agree that regional advertising will remain a priority in 2018. Despite the best efforts of national and international brands, local businesses often outperform their national and international counterparts in search engine rankings. This is because local businesses' content is often more targeted and relevant to specific regions. Multinational corporations need to optimize their content for each local market by creating something fresh and relevant. Meticulous dedication to creative lifestyle photography will also play a part in creating unforgettable, tailored campaigns.

4. Retaining Customers Will Become More Important Than Acquiring Them

It has long been argued that retaining current consumers is less difficult and more cost-effective than acquiring new ones. Existing consumers are more inclined to try new items and they spend 31% more money than new customers do, according to research. Professional services and media industries may continue to hold their retention rates (84%). Hospitality and restaurant industries may continue to deal with the lowest retention rates (55%). A possible economic downturn this year has increased the importance of maintaining current clientele.

In 2023, as businesses continue to deal with inflation and shifting consumer spending, customer retention will grow increasingly important. Customer loyalty may not be a direct result of the resurgence of loyalty programs. Most stores' marketing strategies have long included loyalty programs, but in recent years, they've taken on an even greater significance. This year, companies plan to pour more money into these initiatives, keeping in mind that current consumers will expect more than just birthday discounts and loyalty points.

Photo: Pexels

5. Social Media Will Become Even More Important

Over 4.26 billion individuals around the world used social media in 2021, and that number is expected to rise to over 6 billion by 2027, according to data from Statista. The average time spent daily by internet users on messaging and social media apps is 144 minutes. Because of this, advertising and marketing on social media has become an even more fruitful endeavor.

Social media platforms like TikTok are becoming increasingly important in people's daily lives, with many users (especially Gen Z) making good use of them to research products, scout for new places to eat, look for the latest trends in fashion and lifestyle, and even find employment opportunities. Over half of Gen Z users enjoy TikTok on a regular basis with the intention of gaining new knowledge. This means brands must connect with consumers across most or all preferred communication channels by putting out insightful and engaging content on social media.

Social media has progressed well beyond just being a collection of online platforms for chatting with other people. Companies of all sizes are seeing the potential of social media as a platform for e-commerce, providing their followers with a simple option to buy their products without leaving the app. Platforms now need to have built-in browsers to serve as online stores.

6. There Will Be a Shift in Spending For Both Companies and Consumers

This year, shoppers who care about their effect, usefulness, and convenience will shift their habits in response to economic uncertainty. Marketing leaders will be forced to make adjustments to meet consumers' demands, which means delivering even more tangible value at a time when they are exercising greater discretion in their purchasing decisions.

7. Brands Will Invest Even More in Marketing

There's a common misconception that when a recession is on the horizon, businesses would reduce spending across the board to stay afloat. There may be legitimate reasons and areas for reducing costs, but marketing is certainly not one of them. This year, brands should up their marketing spending with more focus on metrics and ROI.

It may seem counterintuitive, but bear markets will have a great chance to gain market share. That means that this year, the companies that keep up and speed up their marketing efforts will be the ones that will do best when the market gets better - and it will, eventually - because, as they say, what goes up must come down, vice versa.

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To sum it up, marketers will need to shift strategies and priorities in response to rising consumer anxiety and careful spending. The power of social media, content creators, and influencers will become even more powerful in making people decide on what to buy and where to buy them.

The focus of marketing efforts will shift from acquiring new customers to keeping the ones they already have. Although it may seem counterintuitive, brands will have to make bigger expenditures in marketing - targeting measurable results and ROI - utilizing new technology and embracing it rather than turning away from what consumers want to see.

ABOUT THE AUTHOR

William Powell is a writer and educator with a passion for marketing. He enjoys learning about the latest business trends and analyzing how global events impact domestic and international economies.

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