Unique approaches that hinge on social media platforms and augmented reality, among others, are driving brands to continue enhancing existing digital marketing practices. Given increased investment activities in such initiatives, digital marketing is poised to reach a market value of $786 billion by 2026. Interestingly, more brands are looking to take advantage of new technologies as well.
So, what are the top five marketing trends shaping the industry in 2023?
Below, this article can take you through what you need to know:
1. Prioritizing inclusive storytelling
Inclusive storytelling will be at the forefront of various brands’ digital marketing campaigns this 2023. As a 2022 The Diversity Movement study on accountability points out, this is due to the fact that 70% of consumers cite diversity and inclusivity in marketing as a major factor that influences purchasing decisions. The study anticipates that many businesses will focus on advocating for unique perspectives to better reach audiences moving forward. Vogue Business writer Bella Webb explains that highlighting positive role models in ads could be one way to do this. To illustrate, makeup giant L’Oréal has done just this. In January, the company announced a handheld, computerized lipstick applicator that’s designed for people who experience limited hand and arm mobility. For their campaign, they featured people with disabilities in instructional clips to showcase how the packaging promotes a more convenient lipstick application.
L’Oréal has also deployed QR codes on their items to assist people with limited visibility in learning more about a product. Ultimately, foregrounding inclusive storytelling will allow brands to create timely and compelling marketing campaigns.
2. Cultivating micro-communities
According to a 2022 AdWeek feature on brand engagement, micro-communities are anticipated to gain even more popularity this year. That said, companies have started their own micro-communities in a myriad of ways. For one, brands tapped into existing micro-communities that were created by niche influencers. Aside from that, brands like APL and Urban Outfitters have enlisted help from platforms—think Attentive and Community—to send personalized texts to users. At present, these private groups promote stronger customer connections, which is why many businesses find it appealing to incorporate this initiative into their digital marketing strategy.
3. Deploying virtual reality (VR) and augmented reality (AR)
As more technologies and platforms penetrate the mainstream, many brands are upgrading their
strategies to include virtual and augmented reality in their marketing initiatives. Notably, Swedish retail giant Ikea successfully deployed AR technology to help customers virtually “fit” furniture in their homes. Similarly, Sephora has launched its own app called Virtual Artist, which allows clients to see how different products look on them before purchase. That said, more brands will look to bridge the gap between physical and digital this 2023. In fact, this 2023, studies from Kivisense state that AR and VR tech will be worth nearly $143 billion by year’s end. Furthermore, some have already started by selling digital products to their customers using alternative reality technologies.
CNN writer Oscar Holland shared how the likes of Farfetch and Tommy Hilfiger have set up shop with virtual events and avatar clothing collections, allowing them to gain immediate consumer feedback. Holland pointed out that, in the future, more marketers will follow in these fashion labels’ footsteps to improve customer engagement.
4. Leveraging AI to improve customer interactions
According to a 2023 Bloomberg article on digital marketing, artificial intelligence (AI) will allow companies to increase marketing conversion rates and drive business impact this year. This is seen through the rising adoption of ChatGPT, which is an AI language model that can produce responses to questions and even write stories. ChatGPT can simulate human-like conversations with users, and as such, digital marketers have used it to automate customer interactions and enhance their overall customer experience. Interestingly, according to a survey on digital marketing performance, companies who currently utilize AI predict that its use will rise to 38% over the next three years. That said, although beneficial, businesses shouldn’t become too dependent on AI as it can sometimes generate inaccurate information. Eventually, Google can also update its algorithms to penalize AI-generated content, so it’s best to be careful when incorporating AI into digital marketing initiatives.
5. Adopting decentralized marketing through Web 3.0
Our previous post on embracing Web 3.0 points out that this iteration of the internet can equip businesses with the means to gain more comprehensive consumer insights this 2023. In line with this, Web 3.0 technologies can also enable companies to offer a wide range of information-sharing options.
Take, for example, Alexander McQueen’s MCQ fashion, which embedded near-field communication (NFC) chips in garments. With this feature, customers could better understand the sustainability credentials of the brand. Interestingly, a study on the future of digital technologies explains that apart from offering more information to consumers, decentralized marketing can increase protection for customers’ privacy. This is a critical factor that is urging brands to adopt Web 3.0 into their marketing practices.
Trends for digital marketing are ever-shifting. It’s crucial for brands to be updated on these to develop better strategies that can reach consumers.
This article was written by Alicia Warren and submitted exclusively for Powerful Digital Solutions.
