The Future of Digital Marketing
Digital marketing has come a long way in the past few decades. From simple banner ads in the 1990s to sophisticated data-driven campaigns today, digital marketing continues to evolve at a rapid pace. As technology advances, marketers must stay on top of the latest trends and innovations to engage with their audiences in a crowded online space. In this post, we will explore some key ways that digital marketing is likely to progress in the coming years.
Personalization Powered by Data
In the past, digital marketing campaigns took a one-size-fits-all approach, broadcasting the same message to a broad audience. Today, marketers can leverage data and analytics to segment audiences and craft targeted messages that resonate with each customer. Looking ahead, personalization will become even more precise and nuanced. With cookies giving way to more privacy-focused approaches, first-party data, machine learning and artificial intelligence will power hyper-personalized marketing at scale. The brands that succeed will be those that best leverage data to understand their customers as individuals and deliver a tailored experience.
The Rise of Video Marketing
Video consumption has exploded in recent years. Cisco projects that 82% of internet traffic will be video by 2022. Clearly, no digital marketing strategy is complete without video. Short social videos, live streaming, YouTube pre-roll ads, OTT advertising and other video formats allow brands to engage audiences in a visually compelling story. Video marketing will only grow in importance as 5G networks enable higher-quality streaming even on mobile devices. Brands that embrace video early on will have an edge.
Growth of Conversational Marketing
Chatbots and voice-based assistants like Alexa have opened new opportunities for conversational marketing. These AI-powered tools can deliver a customized experience, engage users through two-way dialogues and provide service instantly. According to Juniper Research, chatbots will deliver over $8 billion in cost savings by 2022. As natural language processing improves, expect brands to take advantage of conversational interfaces to create fun and useful experiences that feel less like marketing and more like an exchange with a friend.
Focus on the Customer Journey
Rather than looking at marketing channels in isolation, forward-thinking brands are starting to think about the entire customer journey across devices and touchpoints. This unified approach relies on cross-channel attribution to measure engagement, an integrated technology stack to create consistency, and customized content tailored to each stage of the funnel. Customer journey mapping will become even more important as the number of touchpoints and channels continues to grow. Brands that can intimately understand their audience’s path to purchase will more effectively guide them to conversion and build loyalty.
The Emergence of Augmented and Virtual Reality
Immersive technologies like augmented reality (AR) and virtual reality (VR) have long seemed on the verge of mainstream adoption. The Pokémon Go craze gave a glimpse of how AR can integrate with mobile marketing. As the supporting technologies improve and 5G networks spur mass adoption, marketers will finally be able to unlock the potential of AR/VR. These experiential mediums are powerful ways for consumers to engage with brands in an interactive, life-like environment. Those who are able to ride the wave early stand to gain an advantage and deeper connection with their audience. Brands already experimenting with AR/VR today will have a head start as the tech goes mass market.
Integrated Experiences with Connected Devices
As the Internet of Things proliferates, the lines will continue to blur between the digital world and the physical. An ecosystem of connected devices – from cars to appliances to smart homes – will open new frontiers for marketers. Soon it may be possible to seamlessly integrate your fridge, TV, phone and car into a unified marketing experience. A customer could see an ad on their smart fridge screen, get directions to the nearest retailer from their connected car display, and receive a mobile coupon to use in-store. With more touchpoints than ever, marketers must find ways to coordinate campaigns across all these interconnected devices.
The Trust Imperative
In the wake of data privacy scandals, consumers are increasingly wary about how brands use their personal information. Trust will only grow as a point of differentiation for brands in the digital age. Companies that demonstrate their commitment to transparency, safe data practices and ethical use of technology will earn favor among cautious consumers. In the coming years, expect trust to emerge as a critical metric for brands to track. Leaders will need to make trust building an integral part of their digital marketing strategy.
The Rise of E-Commerce Streaming
In China, Alibaba pioneered livestreaming e-commerce through its online platform Taobao Live. The trend is now going global, as consumers increasingly want to see products in action before they buy. Social platforms like Instagram and TikTok are adding shoppable video capabilities. Brands that embrace live, shoppable video will be able to mimic the brick-and-mortar store experience online. As the technology improves, interactive e-commerce streams could provide personalized guidance, product recommendations and after-sales service to each viewer. Early experiments show the potential to drive substantial conversions.
Smarter Use of Influencers
Influencer marketing has become an important staple in many digital marketing strategies. However, marketers are still figuring out how to genuinely integrate influencers rather than simply slapping a hashtag in a post. Looking ahead, we will see the rise of micro and nano influencers who boast strong engagement with specialized niche audiences. More sophisticated tracking and attribution data will help gauge true impact. And rather than one-off endorsements, brands will cultivate deeper relationships with influencers through content collaborations, product co-creation and community building. The companies that build authentic partnerships with creators will see more commercially successful campaigns.
Focus on Mobile Optimization
As consumers do more browsing, shopping, viewing and engaging on mobile, brands must ensure the mobile experience is completely optimized. Facebook predicts e-commerce revenue on its platform to reach $100 billion by 2022, most of it mobile transactions. Unfortunately, many companies still take a desktop-first approach. Marketers will need to perfect on-the-go usability – not just adjusting typography and layout but streamlining processes like checkout and data entry on smaller screens. Those who master mobile UX, deliver responsive design and craft campaigns tailored to mobile users stand to capture the most value.
Advanced Integrations with E-Commerce
Online shopping continues to gain momentum, projected to account for 19% of all retail sales by 2024, according to eMarketer. Increasingly, digital marketing and e-commerce will become one and the same. Brands must tightly interweave their digital presence with the transaction process. This means seamlessly sharing data between channels, creating consistent messaging, reaching consumers at the right moment in the buyer’s journey, and eliminating friction during checkout. Marketers who can execute an integrated strategy from awareness and consideration to purchase and retention will thrive.
Focus on Customer Loyalty
In today’s crowded marketplace, simply acquiring new customers is not enough. Brands must keep consumers coming back again and again. This will require a digital marketing strategy centered around loyalty building. Tactics may include members-only access, special rewards programs, personalized recommendations, interactive communities, exclusive content and surprise perks. Essentially, any action that makes the customer feel valued, engaged and connected to the brand long after the initial purchase. With switching costs lower than ever, earning loyalty through digital engagement will be the differentiating factor.
Direct-to-Consumer E-Commerce Growth
By selling products directly to consumers online, brands can gain invaluable customer data while bypassing middlemen and retail markups. Pioneered by startups like Dollar Shave Club, the DTC model has now gone mainstream. Digital natives like Bonobos, Glossier and Casper have built huge online businesses. Traditional CPG and retail players like Nike, PepsiCo and Walmart are also getting into DTC e-commerce. The coming years will see even more brands test their hand at owning the full e-commerce value chain. Those able to vertically integrate production, marketing and distribution under one roof may gain an edge over intermediaries.
Rise of Digital Assistants
Smart speakers like Amazon Echo and Google Home have found their way into millions of homes. And chatbots like Apple’s Siri and Microsoft’s Cortana have become ubiquitous. As their functionality improves, digital assistants will increasingly become an important marketing channel. Brands that optimize for voice search, develop engaging voice app skills and build chatbot tools that provide real utility to users will have an advantage. Soon digital assistants may become de facto digital concierges – the default way consumers search, browse and transact online. Savvy marketers must prepare for this voice-controlled future.
The Democratization of Commerce
Today, digital platforms allow businesses of all sizes to reach customers around the world. Shopify and Wix have made it easy for anyone to set up an online store. So-called “citizen marketers” can run digital campaigns and influencer partnerships using DIY tools. With a small initial investment, startups are now on a more level playing field with established brands. The coming years will see further democratization of e-commerce. Those who are able to harness the reach and scalability of digital marketing without massive budgets have the most to gain.
Blurring Lines Between Online and Offline
Historically, online marketing operated in its own silo separate from brick-and-mortar. Today, the connective tissue between online and offline is strengthening. Data-driven attribution helps correlate digital interactions with in-store purchases. Shoppers seamlessly switch between desktop, mobile and in-person as they progress to a final transaction. Omnichannel coordination is becoming essential. Looking ahead, the distinction may dissolve altogether as online/offline give way to unified commerce in all its forms. Brands must adopt an integrated approach that delivers consistent experiences however customers choose to engage.
A Shift Towards Brand Purpose
Today’s consumers, especially young millennials and Gen Z, increasingly support brands that take a stand for social and environmental issues. They expect companies to articulate their values and purpose. This ethos will only grow in the digital age as socially-conscious consumers vote with their clicks and wallets. Successful marketing campaigns will be those that resonate with and promote a brand’s larger mission. Companies will need to demonstrate their commitment through real, tangible actions before hopping on any cause bandwagon. Authenticity will determine which brands ultimately build loyalty and trust through purpose-driven marketing.
In Summary
Digital marketing is moving faster than ever before as technology and consumer behavior evolve. To stay ahead in a hyper-competitive space, marketers must keep their finger on the pulse of important trends on the horizon. Personalization, video, conversations, customer journeys, voice, mobile, influencers, commerce, loyalty, and integrated experiences will all shape the marketing strategies of successful brands in the years to come. Marketers who can pilot emerging technologies while staying laser focused on their audience will be best positioned to engage both hearts and wallets. By keeping the human at the center, digital marketing leaders will pave the way to a more interactive, integrated and immersive future.