Hello and Happy New Year to everyone! 2023 was a very interesting year in many ways, but putting that year to bed, let’s welcome in 2023.
As we like to do every January/February, we bring you the most important trends affecting the world of marketing, digital, and business in general.
In 2020 and 2021, Covid-19 transformed the world in many ways, but as we enter 2023 we’re still suffering from significant inflation, a weak stock market, an anemic real estate market due to high interest rates, a continued labor shortage, some supply chain issues, growing crime rates, an unsecure Southern border, and many continued geo-political risks across the world (China, Russia, Iran, etc.)
With this as the backdrop, as we’re now both feet into 2023, let’s have a look into the ‘crystal ball’ to see where the marketing and business world is trending. I’m pleased to provide the 12 marketing/business trends and predictions I believe all businesspeople need to keep in mind, and to integrate into their 2023 planning and execution. In addition, these can help answer the question on everyone’s minds… What can I do right now from a marketing and sales perspective to grow my business despite the trials and tribulations of high inflation and spiking interest rates? After you read these, I’d love to get your feedback as to whether these do justice for what is really going on within the marketplace, so please feel free to connect via e-mail, LinkedIn or Twitter.
Yosi’s Crystal Ball – 12 Marketing & Digital Predictions for 2023!
And here they are….
- Inflation remains historically high, and is likely stay elevated for quite a while. – Inflation was up over 7% this past year representing the highest inflation rate in 40 years. This is a result of lots of money pumped into the economy from various Covid relief stimulus programs and a generally stronger economy on one hand, but a labor shortage and supply chain issues on the other hand. A rare combination of high demand chasing too small a supply of goods. And Rule #1 of Economics #101 is high demand + low supply = higher prices. Raw materials cost more, labor costs more, and fuel/transportation rates are way up, so you’re spending more to do business.
Two strategies I’ve advised clients in dealing with inflation include better articulating your value proposition and brand positioning so you’ll be worth a higher price to your customers, and raising your price, but upgrading your product/service at the same time.
The Fed is attempting to push interest rates up to slow the economy down which may lower inflation, but lead to a recession. If we’re lucky, they’ll be able to engineer a “soft landing” and prevent a full blown recession, but that outcome is probably unlikely. We’ll see how this all plays out…
- “Influencers” really picked up steam in 2022 as a truly powerful selling tool…when they are leveraged properly. – This is a topic I talk to every one of my clients about these days. The trick is to figure out which niche bloggers write either about your category (e.g. plant based foods) or the benefits you offer….and then engage with these influencers to use them somehow as a brand ambassador. The rewards here can be amazing! And the cost? It can often be zero or close to zero.
As purchase decisions are more informed than ever in history, online influencers and niche bloggers (even small ones) can help brands reach targeted global audiences. That’s because most influencers seem like “regular people”, so customers trust them. Even B2B and small businesses can get in on this act as the cost can be very low. No wonder 95% of marketers who use influencers believe that they are very effective, and 89% of marketers who currently engage with influencers plan to increase that investment in 2023.
Do you have a 2023 plan in place to properly leverage influencers at low or even no cost?
- Do you know what the “Mataverse” is? – In 2021, internet searches for the term “metaverse” increased by 7200%, and Mark Zuckerberg changed the name of Facebook to “Meta”. But what exactly is the metaverse? The metaverse is a vision of how the next generation of the internet will likely operate. According to McKinsey, it is something that we will be “immersed in” instead of something we just look at. It may realize the promise of vast digital worlds to parallel our physical one (e.g. virtual economies and games).
For marketers, the metaverse could represent a big opportunity to engage with consumers in entirely new ways. Roblox is a leading company in this arena with 50 million people engaging in their digital games every day. Last year Gucci drew 20 million visitors in just two weeks when it launched a metaverse version of its real world “Gucci Garden” on Roblox. So although widespread adoption of the metaverse will take some time, it’s worth keeping a close eye on it. So stay tuned…
- “Shopper Marketing” is quickly becoming one of the hottest marketing investment areas – It’s clear that consumers are continuing to control their own destiny, and the digital world is quickly introducing a wide array of new digital/app focused programs to help marketers incentivize their customers to try products and become loyal buyers.
Some of my favorites include brand sponsored ads on the Instacart mobile app (which are similar to Google pay per click ads) that target consumers who order from retailers for home delivery, participating in retailer specific mobile apps (e.g. Kroger’s app) by providing discount coupons for your brand at that particular retailer, and engaging in the Ibotta mobile app “cash back” offers. Clients of mine who focus these types of programs have seen dramatic increases in both sales and in store velocity.
So are you leveraging these kind of powerful programs in your 2023 marketing plan?
- Video, and especially short form video, will be the most influential form of digital content for businesses –According to Forbes, this is because as our attention spans decrease, marketers are relying more on creating short video content to get people’s attention, boost search engine rankings, increase engagement, and website traffic. And no wonder…With 5x higher recall than the written word, video is the most engaging media format and the most effective in assisting conversations. In fact, 72% of businesses say that video has improved their conversion rate. According to Cisco, by 2023, more than 80% of online traffic will involve video watching. And in terms of short form video, an amazing 90% of companies using it will increase (or at least maintain) their financial investment in short form videos.
And don’t think just You Tube for video dissemination. You can also post short form videos on Instagram, Facebook, TikTok, Twitter or LinkedIn as well. In fact, short form videos really deliver for marketers. Videos on landing pages increase conversion by 86% and shopping cart sizes by 125%.
Are you participating in the video revolution yet?
- “Purpose” and social responsibility are more important than ever, especially with younger consumers – According to the AAAA, 56% of US consumers are happy to hear about brands that take positive social action. In truth, telegraphing an objective of “purpose” is very important, especially in a time when people have been scared, and many were facing financial hardships (and still are…). Brands should think about what they can do from a charity and social responsibility perspective. Adding a “purpose” component message to your advertising, PR and/or social media can leave a positive and even lasting impression on your customers and clients. And this is especially powerful when targeting Millennials and Gen Z consumers who typically hold brands to a much higher standard.
So have you identified ways to articulate “purpose” oriented benefits in your brand messaging?
Yosi’s Final Predictions for 2023:
As there is so much to say, and we’re out of room here, please join me in a few weeks for the second half of this report when I’ll lay out the second set of 6 additional marketing predictions. We’ll discuss some of the other hottest topics and trends of the day including social commerce, geo-targeting, virtual pivoting, marketing automation, LinkedIn’s Sales Navigator, Amazon and more. Be sure you’re on our subscriber list, so you’ll get them hot off the press.
So until next time, good luck and good selling in 2023…and please stay safe!