Transformative marketing trends in 2024 : Reinventing brand-customer engagement
The realm of marketing is in a constant state of flux, perpetually shaped by technological advancements, changing consumer preferences, and the ever-evolving data privacy landscape.
As we head into 2024, the marketing landscape stands poised for further transformations,” says Dovetail Director Marcus Gibbs. “It will be fuelled by a mix of data privacy concerns, the ascent of AI integration, and a shift in consumer behaviour.”
We look at the pivotal trends dictating this landscape, offering brands an insight into the transformative strategies that will redefine consumer engagement.
Embracing first-party data and privacy compliance
Amid mounting concerns over data privacy, recent studies, including the 2023 Pew Research Center survey, have spotlighted consumer unease regarding how brands handle personal data. A staggering 67% of respondents expressed confusion or lack of understanding about how their personal data is used by brands. In addition, apprehensions extended beyond corporate realms, with 71% also expressing concerns about government data usage.
In Australia consumers have been hit hard by data breaches, such as the highly impactful Optus breach of 2022 where sensitive consumer data was stolen by hackers in a cyberattack.
In response to increasing consumer fear over their personal data, 2024 heralds a significant shift towards first-party data, transparent data practices, and stringent adherence to privacy regulations.
The diminishing reliance on third-party cookies has propelled brands towards first-party and zero-party data, garnered directly from customer interactions. Unlike their third-party counterparts, these data sources promise accuracy and align seamlessly with consumers' increasing demands for data privacy and control.
DATA DEFINITIONS
First-Party Data:
Data collected directly from customers during their interactions with a company, including basic information and behaviour eg contact details, purchase history, click through rates.
Zero-Party Data:
Customer-provided data that goes beyond basics, offering insights into preferences, interests, and intentions, often shared proactively eg survey responses, favourite colours.
Third-Party Data:
Third-party data is information collected from external sources such as social media platforms and data-brokers, not directly connected to a company, often used for marketing and advertising purposes.
“The challenge now resides in responsibly harnessing this data while respecting consumer privacy”
This paradigm shift necessitates transparent data collection, forging direct customer relationships, and striking a balance between data-driven insights and privacy protection. Ultimately, this trajectory is set to foster a more trust-based relationship between brands and consumers, guiding marketing strategies towards personalisation, data-driven decisions, and privacy consciousness.
Easier advertising for everyone
In 2024, advertising is getting simpler and more independent, meaning that small- and medium-sized businesses have access to marketing tools that were previously out of reach. Self-service ad platforms like Nine Ads Manager The Trade Desk, Adform, and MediaMath are leading the way. They give advertisers more control and smart AI tools, changing how we advertise.
Says Marcus, "These platforms let advertisers, especially smaller ones, take charge. They're flexible and use smart AI, making ads work better even with new privacy rules. It’s going to be interesting to see how these are adopted in the next few years."
Retail and advertising are more integrated than ever
The growth of self-service ad platforms goes hand in hand with the increasing rise of commerce and retail media. Big players in retail media, like Amazon DSP (Delivery Service Partner) and Walmart Connect lead the way, and locally supermarket giants are embracing retail media too.
“Coles 360 is a prime example of how media and retail are now becoming one and the same”.
These platforms are making marketing a seamless part of your shopping experience. They use a lot of data about shoppers to put ads where they are most likely to make a purchase. These ads feel like they fit naturally into your shopping journey and offer helpful suggestions, rather than interrupting you. This can lead to a big boost in sales and helps brands build strong relationships with their customers.
As people expect more personalised experiences, brands are using retail media to show them exactly what they're interested in, especially as it gets harder to use data from other sources.
DEFINITION
Retail media:
Advertising and marketing services offered by retailers on their own digital platforms. These platforms can include their websites, mobile apps, and even in-store digital displays.
AI’s bigger impact in 2024
The explosion of artificial intelligence (AI) and its many marketing applications in 2023 will likely be exceeded In 2024.
Used properly, AI can be immensely valuable to marketers. "AI is like having a personal assistant for marketing. It helps us create content that's tailor-made for each customer - this drives engagement and moves customers up the Brand Engagement Pyramid,” says Marcus."
But it comes with a caution.
“While AI is a transformative force in marketing, marketers should exercise vigilance in not becoming overly reliant on AI-driven solutions”
AI excels at data analysis and predicting consumer behaviour, but it might not fully grasp the subtleties of human emotions and context. Therefore, it's imperative for marketers to maintain a human touch in their strategies and decision-making processes. AI should be viewed as a powerful tool to augment marketing efforts, not replace the creative and empathetic insights that humans bring to the table.
Furthermore, ethical considerations and data privacy (as we discussed above) should always be at the forefront when deploying AI in marketing to prevent potential controversies and legal challenges.
“Striking the right balance between AI automation and human expertise is the key to harnessing the true potential of AI in marketing.”
From likes to buys - the emergence of social commerce
Social commerce is a convergence of e-commerce and social media, revolutionising the traditional retail journey. It empowers customers to discover, engage, and seamlessly purchase products directly through social media platforms. This dynamic approach to shopping not only transforms the consumer shopping experience but also redefines marketing strategies for businesses.
By integrating social commerce, brands can harness user-generated social proof and foster more personalised interactions with their customers.
It is clear that as we look forward to 2024 and beyond, profound changes are underway, driven by technological advancements, data privacy concerns, and evolving consumer expectations. These transformative trends demand a proactive approach from businesses, necessitating a robust adaptation to these evolving landscapes.
2024 will be a year where creativity, adaptability, and customer-centric strategies will shine. It promises to be an incredibly interesting and pivotal year for marketers.
Dovetail Brand Engagement is a leading strategic brand consultancy that specialises in helping businesses navigate the evolving marketing landscape. With a focus on innovative strategies and a deep understanding of emerging trends, Dovetail empowers brands to build meaningful connections with their audiences in an ever-changing digital world.