The marketing trends that will dominate 2023

In this report, we explore the marketing trends that are expected to dominate strategies in 2023. With the erosion of third-party cookies and the increasing focus on data privacy, brands are urged to invest in a first-party data strategy to adapt to the evolving digital landscape. As digital privacy regulations cover a larger portion of the global population, the importance of leveraging first-party data for legal compliance, optimization, and accurate measurement becomes paramount.

Additionally, we delve into the revolution needed in social media strategy, the rise of online video as a cost-effective awareness driver, the power of retail media in influencing purchasing behavior, and the renaissance of the luxury industry through digitalization and consumer connection with key takeaways and actionable insights provided

The marketing trends that should dominate your strategy in 2023

As we hurtle from one year of economic upheaval and unprecedented consumer behavior to another, uncertainty has become the new norm for marketers. Whilst that might sound scary, with it comes huge opportunity. From the rise of retail media and the evolution of the creator economy to the industry pivoting progress of AI (cough ChatGPT cough) and an evolving data landscape that has fuelled levels of innovation many couldn’t have imagined, 2023 is set to be not just a year of transformation, but of lift-off into a whole new world of possibilities for advertisers

Introduction

So how do we stay one step ahead, embrace these times and win big in the process?

To help you kick off 2023 with a bang, we’ve talked with Brainlabs’ experts across the globe to identify the don’t-dare-ignore themes and trends for the year ahead.

The impact of generative AI on content will disrupt, well, EVERYTHING!

What’s it all about?

AI generated content for copywriting and SEO is not a new phenomenon, so much so that Google released an algorithm update in October, which many in the SEO field took to be targeted with this in mind.

The biggest buzz drawing 2022 to a close was ChatGPT-3, or ‘Generative Pretrained Transformer 3’, a state-of-the-art natural language processing (NLP) model, developed by OpenAI. Experts are claiming that far beyond just content, it’s full capabilities could be used for all manner of tasks across different channels and skill sets.

Its functions include:

1. Text generation: Handy for writing articles, creating chatbot responses, and generating summaries of text.
2. Sentiment analysis: Useful for tasks such as identifying customer sentiment from reviews or social media posts.
3. Language translation: Easily translate documents or provide real-time translation during conversations.
4. Question answering: Helpful with tasks such as creating virtual assistants or providing answers to frequently asked questions on websites.
5. Text classification: Great for tasks such as categorizing articles by topic.
6. Creating tools: With minimal coding experience, users have been experimenting creating tools and apps, following a few carefully crafted prompts.

Fun fact: 90% of what you’ve just read was created by ChatGPT.

Key takeaway

While the full spectrum of use cases for marketing in general are still being tested, we certainly feel it’s a major sliding doors moment for AI.

The strength of AI transcreation is an incredible step forward for centralized advertisers, delivering dramatic efficiencies and the possibility of new agency operating models. While it’s strength cannot be denied, advertisers typically invest significantly in creative development and preserving their brand image, therefore generative AI content should not be used or trusted blindly.

Marketers should embrace AI – but as a tool rather than a replacement for humans. Human engagement in this process is a vital safety guard to ensure that local nuances are considered and brand images protected. After all, humans and machines trump machines operating in isolation.

Google Search is set for its most visual makeover yet

What’s it all about?

Google continues to have huge ambitions for updating its user-facing search product. At “Search On” 2022, Google discussed its vision for search becoming a far richer visual experience; moving away from the familiar SERP model of “ads at the top, and ten blue links”.

Advertisers can expect Performance Max to be positioned as a pivotal tool through which to access these highly valuable new experiences. As its name suggests, campaigns will be quite literally designed for maximum performance through AI-driven optimizations.

Images courtesy of Google

Key takeaway

Although the initial launch of PMax in 2022 was more subdued than Google would have hoped for, we’re anticipating them to push hard on PMax in 2023. Brands would be wise to get ahead here.

Google’s continual advances towards increased automation within Search is undeniable, so marketers must look at how best to take advantage of automation across channels to drive better results.

Reactive marketing will make its biggest leap yet, creating huge real-time opportunities for brands

What’s it all about?

Reactive marketing has always been an essential tool for marketers to become culturally relevant and responsive to trends, events and big moments in the real world. However, we now have technology at our disposal, that allows us to be reactive, responsive at scale and at pace.

The ability to create advertising that responds to a specific consumer need in real-time has never been greater and this will continue in 2023. Identifying trends and responding to them in real-time is unique and will give clients an advantage over their competition. Fanbytes by Brainlabs’ Bytesights platform was designed to do exactly this on TikTok. Brands must embrace the right TikTok trends early, whilst tying them back to a brand message to ride the wave of their growth. Adding an original spin can make the content more memorable too. In essence, think like a creator – if you’re not joining a trend, create one.

Likewise, the opportunities for cross-channel dynamic creative that extends from programmatic and social into CTV, OTT, DOOH and retail media are more welcome than ever. Put simply, brands must embrace the art and the science here. Dynamic creative optimization helps brands do more with less. AI utilization is streamlining the production and trafficking of creative variations at scale. In tough economic times, this ability to dramatically lower costs without compromizing on message relevance and testing needs will become indispensable.

Key takeaway

As more advertisers exploit the capabilities of AI and machine-learning models, it’s clear that this trend – uniting the art and science of marketing – is paving the way for innovation. Equally, investing in trend discovery and learning will help brands to better understand their audiences and inspire your approach to trends.

Marketers should be proactively reactive. The shift to an “always on, always responsive” marketing strategy should not be overlooked, but instead harnessed to improve ROI and campaign performance overall.

Bytesights tool Machine Learning Trend Discovery

As creator culture booms, influencer marketing get its seat at the top-table

What’s it all about?

In 2022, creator culture made some of its biggest leaps yet, earning influencer marketing a seat at the marketing top-table. This was helped by the continued hyper-growth of social platforms like TikTok, the emergence of new platforms and the long-tail hangover of the global pandemic, where brands were forced to pivot their strategies in new ways. While this started out with one-off projects for many brands, 2023 will be the perfect breeding ground for long-term, mutually beneficial partnerships between brands and creators.

Younger audiences in particular are highly savvy when it comes to influencer marketing – influencers are one of their most trusted sources of information and entertainment. But Gen Z and millennials grow with their favourite creators, so brands will do well to invest in developing trusted ambassadors over time.

Youtube influencers KSI and Logan Paul’s launch of their sports drink Prime proves this point to a tee, having built up a ton of social media hype, and is a shining example of how a cult following can build brands at a remarkable speed.

Creators using paywalls (like Patreon or members-only content) provide a unique and underused opportunity for brands. These creators are like modern-day publishers, offering free and exclusive content for their core (and paying!) audience. Tapping into these private groups is one way for brave brands to create long-lasting communities. For brands to have the most success with influencers – they need to have community as a core goal. Regardless of new social media platforms that appear in the future, a strong community can carry a brand onto those platforms..

Key takeaway

By developing a long-term dedicated and integrated influencer marketing plan, brands can future-proof their businesses at a time when economic uncertainty brings many challenges. To do so brands must use creators properly over these longer periods by constantly testing and learning.

There are several different ways to do so: whether that’s creators posting natively so a brand reaches a much wider network of people, or commissioning influencers to post content on the brand’s own channel, which in turn gives people a reason to follow their account as audiences are more likely to engage with those they recognize and trust.

The ‘ethical internet’ will be inevitable as data privacy remains king

What’s it all about?

With the erosion of third-party cookies and increased concern about data privacy, it is imperative brands invest in a first-party data strategy. This will be foundational in adapting to an ever-changing ecosystem. And if that doesn’t sell it to you… according to Gartner, by 2023 65% of the world’s population will be covered under digital privacy regulations (compared to just 10% in 2019). The writing is well and truly on the wall.

Despite Google pushing back the deadline on the deprecation of the third party cookie on Chrome (not for the first time!), brands should not see this as a continual trend and need to act accordingly to prepare for the cookieless world.

Key takeaway

Gone are the days of the application of first-party data in marketing activation being an advanced, optional strategy used by only the most forward-thinking brands. It’s also not a future solution to the lingering, slow death of the third-party cookie.

All marketers should start using first-party data to ensure legal compliance, to unlock optimization opportunities, to enable accurate measurement – and crucially — to deepen the relationship with their consumers across channels and touchpoints.

Watch out for the splintering and redefinition of social networks

What’s it all about?

Social media strategy – organic and paid – is overdue a revolution.

Historically, advertisers have relied almost exclusively on the platforms’ Pixel solutions for conversion tracking. Over the last few years, a rise in privacy-centric and cookie-mitigating policies have famously brought about substantial challenges in the capability of ad platforms to effectively capture high quality user data signals and use them for targeting and optimization.

This coupled with the chaos of multiple publisher low-earning reports and mass layoffs across Meta and Twitter has led to uncertainty in the once trusted platforms.

What we’re left with is advertisers unsure of where to best invest their media spend and content strategy when it comes to social. Advertisers will be asking themselves whether they should be chasing trends and casting a wide net, or rather, picking a stable platform to place their sole focus on.

Key takeaway

While the correct tactic depends on the client’s individual needs, our recommendation would be to diversify spend across platforms to build a wider audience whilst leveraging the nuances of each platform. The loss of third party data means we will see more reliance placed on first party data for targeting and personalized ad-experiences that remain compliant with changing data regulations and browser policies.

Similarly, utilizing the platform’s native Social Commerce solutions would allow advertisers to double down on in-platform signals and make targeting, optimization and conversion tracking efforts more sturdy.

Video will be at the heart of the new reality of media consumption

What’s it all about?

Video has, and always will be, a powerful way to engage with audiences. The COVID-19 pandemic brought about new normal ways of working and living as we know it, causing a real shift in media consumption – TV and video, in particular. With the rising cost of TV and its respective diminishing return as a channel, will 2023 be the year online video takes over as the next best way to drive cost effective and potent awareness?

Video viewing habits are changing – the stats prove it. From 2020 to 2021, viewing of linear TV fell by 7%, whilst online video viewing grew by 8%. This growth of online is largely attributed to the popularity of YouTube and TikTok, which when combined, claimed nearly 70% share of all 16-34s’ online video viewing time in 2021.

Brainlabs’ research on how Gen Z in particular behave on social media corroborates this with TikTok proving itself as the platform of choice for younger audiences. 69% of those surveyed said they’ve had an account, and 34% claimed it’s the ‘platform they spend the most time on’. Rather unsurprisingly, nearly half of 16-17 year olds admitted to never even having an account on Facebook – further highlighting the importance of maintaining and innovating as a platform.

Key takeaway

Ad spend should reflect consumer behaviour, but that doesn’t have to mean dropping traditional media, like TV, entirely. Marketers should consider the most cost effective ways of reaching their audience and plan AV spend holistically, allocating budget based on audience consumption, quality and effectiveness. A blend of digital and traditional video strategies is key.

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Retail Media will nurture consumers through the ‘messy middle’

What’s it all about?

Shopping behaviours are changing, and the ‘Messy Middle’, which makes up the bulk of the potential customer’s purchase journey, is more prevalent than ever due to economic uncertainty. But smart marketers will see opportunity here.

Wishlisting has risen in popularity during recent promotional shopping periods, with brands not gaining as much traction during pre-sales as they may have done in previous years, supposedly as people choose to wait for the best offer or discount. In some cases, this has also led to a rise in basket abandonment as people shop around, discarding brand loyalty in exchange for a bargain.

Retail media is being described as the “third big wave” of digital advertising and is hailed for it’s savviness in nurturing customers through the messy middle. Retail media is currently the third largest digital ads channel in the US and is taking more than 11% of the total digital budget for US companies. 95% of companies that took part in a recent survey by Skai said they will increase their retail media investment significantly during 2023.

Key takeaway

Retail media has the power to “fix” the messy middle and influence purchasing behavior in a powerful way. Thanks to the first-party retailer data available through retail media networks, brands are able to gain closed loop sales data and are given the opportunity to target highly relevant customers.

Better yet, retail media will not be impacted by the anticipated deprecation of third-party cookies. Lastly, the activation of retail media helps companies build stronger relationships with retailers, something that should not be overlooked if the customer is to have a positive experience.

That said, retail media environments are highly competitive, which may put some advertisers off. In spite of that, not featuring represents a missed opportunity to convert hard earned brand awareness and push consideration to conversion – leaving the door wide open for competitors to steal share.

Luxury will have its greatest renaissance – and it’ll be entirely digital

What’s it all about?

Despite the cost of living crisis wreaking havoc on consumer sentiments across the world – the luxury industry need not fret. Time and again, it has proven itself to be one of the most resilient sectors in economic crises, and the trend we’re witnessing now is similar. There is one difference though…a change in the audience profile.

The global luxury market grew by 21% from 2021 to 2022 and remains poised for further growth. Millennials and Gen Z’s are proving their legitimacy as key demographics once again, and are set to account for 50% of the total luxury market by 2025 as luxury items become more mainstream and accessible. This change in audience profile has prompted brands to steer away from the traditional luxury flagship store model, and champion digitalization and consumer connection like never before.

One of the key reasons for growth in luxury markets is the new exclusive and inclusive image luxury brands have been cultivating. Digital channels enable consumers to spend more time with these brands, a behaviour typically not part of the “luxury code”. Clever brands will have embraced the hype around the metaverse to explore new ways of engaging with high-value younger audiences. Capturing relatively untapped platforms and passions such as gaming, as well as word-of-mouth, prove to be an impactful and engaging way to build high-value communities with consumers.

Key takeaway

Encouraging consumers to increase the time spent with a brand, regardless of whether sales is the main goal, will pay off in the long run. With the change in audience profile in mind, building strong consumer relationships with younger audiences will help to future-proof brands, whilst increasing awareness and consideration.

It’s also important to remember that experimentation with mainstream digital platforms is possible with luxury credentials still coming across to consumers. What’s absolutely key is maximizing relevance to consumers, all while staying true to your brand.

Burberry Prada Images courtesy of Burberry & Prada

Go green or go home – accountability can’t be optional anymore

What’s it all about?

Sustainable media solutions will be big in 2023. No surprises there. But 2023 will be the year this truly becomes a must versus a nice to have. It’s a well known reality that digital media is one of the biggest contributors of global greenhouse gas emissions. In fact, The Internet represents at least 3.7% of global greenhouse gas emissions – to contextualize, that is on par with the aviation industry.

Brainlabs has partnered with Scope3 and DoubleVerify globally, enabling us to measure carbon emissions for clients. We can see the carbon footprint of each publisher, SSPs, formats (and more) as well as helping our clients make more environmentally conscious decisions with their media budgets.

Key takeaway

Digital media’s CO2 footprint stems from the large amount of data transported through the Internet’s infrastructure to ensure digital ads are delivered to an end user. Yet, up until now, this source of emissions has been largely overlooked.

Now is the time for businesses to take accountability for their own environmental footprint and choose more sustainable media options to ensure they are playing their part in a greener future. This cannot be achieved in isolation, everyone has a part to play.

In summary…

Brands that want to survive and thrive in 2023 will make purposeful investments to connect smart creativity to brand and marketing performance as outlined in our trends. The key takeaways for each will help to position businesses for success in what is set to be a year of transformative disruption like no other.

Here’s a quick recap of the ten trends that should dominate your 2023:

1. The impact of generative AI

   The strength of AI transcreation is a major step forward for centralized advertisers. Embrace AI – but as a tool rather than a replacement for humans.

2. Google Search make-over

   Look at how best to take advantage of automation across channels to drive better results. Expect PMax to become your key to success!

3. Reactive marketing will make its biggest leap yet

   The shift to an “always on, always responsive” marketing strategy shouldn’t be overlooked, but harnessed to improve ROI and campaign performance.

4. Influencer marketing get its seat at the top-table

   Develop a long-term dedicated and integrated influencer marketing plan to future-proof your business and build a valuable community.

5. The ‘ethical internet’ will be inevitable

   Invest in a first-party data strategy to ensure legal compliance, to unlock optimization opportunities, to enable accurate measurement – and crucially — to deepen relationships with consumers

6. The splintering and redefinition of social networks

   Be sure to diversify your ad spend across platforms to build a wider audience whilst leveraging the nuances of each platform.

7. Video at the heart of media consumption

   Consider the most cost effective ways of reaching audiences and plan AV spend holistically. A blend of digital and traditional video strategies is key!

8. Retail Media and the ‘messy middle’

   Be sure to harness the power of retail media to convert hard earned brand awareness and push consideration to conversion.

9. Luxury has its greatest renaissance

   The luxury market doesn’t have to be traditional. Champion digitalization through untapped platforms and passions such as gaming to build high-value consumer connections like never before.

10. Go green or go home

    Take accountability for your own environmental footprint. Choose more sustainable media options to ensure you’re playing your part

Thanks to our Brainlabs expert contributors from across the globe

• Andy Goodwin Head of Paid Search
• Katie Burns Head of Social
• Tom Sweeney Head of Creative Strategy, Influencer
• Naomi Litowitz VP Head of Planning
• Kamala Johal Activation Planning Partner
• Jake Roman-Capon SEO Partner
• Ofir Halfon Global Vice President, Social
• Julia Amorim Global VP, Creative
• Tom White SVP Data Services
• Deni Petrova Strategy Director, Retail Media and Marketplaces
• Hayati Alaluf Senior Client Planning Director
• Venya Wijegoonewardene SVP of Strategy and Planning

Sources

1. Google Search On 2022: Search outside the box: How we’re making Search more natural and intuitive
2. The Grocer: Prime sports energy drink: what’s the secret of its success?
3. Gartner Inc: Top five trends in Privacy through 2024
4. Forbes: Meta And Twitter layoffs might not generate all of the companies’ desired benefits
5. Thinkbox: A Year in TV 2021/22
6. Fanbytes by Brainlabs: What Social teams need to know about Gen Z
7. Consumer Confidence Index Jan 2014 – July 2022
8. Skai: The State of Retail Media 2022
9. Bain & Company: Global luxury goods market takes 2022 leap forward
10. Forbes: 3 Ways Millennials And Gen-Z Consumers Are Radically Transforming the Luxury Market
11. Climate Impact Partners: The Carbon Footprint on the Internet

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Get in touch

• APAC Gyn Ang APAC SVP gyn.ang@brainlabsdigital.com
• EMEA Leo Jennings UK SVP, GROWTH leo@brainlabsdigital.com Rachelle Risner VP, NEW BUSINESS rachelle.risner@brainlabsdigital.com
• North America

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