Today’s consumers expect brands to deliver exceptional experiences across all channels, and marketing has to keep up with the changes in the marketplace. Due to the impending recession and rising inflation, professionals must keep up with the changes in consumer spending habits. Here are the top digital marketing trends that brands should be aware of.
Influencers
The 2023 Marketing Trends & Strategy Report from HubSpot revealed that influencer marketing is expected to continue growing its high ROI. It showed that over a quarter of marketers (24%) are currently using this strategy, which is expected to grow even further in 2023. The report also noted that 17% of marketers plan to invest in this area for the first time, and almost 90% intend to maintain their investment.
According to Pierre-Loc Assayag, the CEO of Traacker, a platform that helps brands connect with their consumers, despite the potential decrease in marketing budgets caused by the impending recession, he believes that spending on influencer marketing will still increase in 2023.
Local Marketing
The rise of mobile searches for businesses near me has been attributed to the increasing importance of local marketing. According to Google statistics, the number of searches for “shopping near me” has increased significantly over the past few years. In 2022, a report by SafariDigital revealed that almost a hundred percent of users searched for local businesses online. This trend is expected to continue in 2023.
Linda Pophal, the founder and owner of Strategic Communications, noted that in 2023, the focus on local marketing will continue to increase. She said that major brands are starting to gain ground in local markets due to their ability to produce content that is relevant and specific to the local regions.
ChatGPT
Recently, ChatGPT caught the attention of the media due to the emergence of AI technology, with some claiming that it could be used to help students complete their assignments, while others worry that it could be used to bypass the need for writing their own. ChatGPT could have positive and negative implications for both marketers and content producers.
According to Pophal, “disruption” from ChatGPT and similar AI-driven tools will eventually replace traditional content creation methods. She noted that this could help or hurt the livelihoods of freelancers and agencies that produce content. ChatGPT’s improved capabilities could allow agencies and freelancers to create more compelling content.
Social Media Marketing
A report released by Statista in 2021 revealed that over 4.26 billion people worldwide were using social media in 2021. It is expected that this number will continue to increase, and by 2027, it will reach almost 6 billion. According to the study, the average internet user spends about 144 minutes daily on messaging apps and social media. This means that advertisers can take advantage of the opportunities that social media provides. In 2020, the total amount of social media advertising was $132 billion.
Social media has become an integral part of people’s lives, with many Gen Z users turning to platforms such as TikTok to find reviews and endorsements of products and services and look for jobs and local businesses. TikTok users also reportedly spend a lot of time learning something. These platforms allow brands to reach customers through informative posts and relevant ads.
Customer Retention
It has been stated that it is cheaper and easier to retain a customer than to attract or convert new ones. According to a study, existing customers are reportedly 50% more likely to try a new product and spend more on average than new ones.
The retention rates of customers vary depending on the industry, with the highest in professional services and media companies at 84% and the lowest in hospitality, restaurant, and travel at 55%. With a potential recession in 2023, businesses are now more focused on retaining their customers.
As the economy worsens and consumers tighten their belts, marketers will need to change their strategies and focus in 2023. Social media, influencers, and content creators will play a significant role.
In addition to digital marketing, local marketing will also become more critical, as it is predicted that the rise of AI technologies will allow brands to improve their customer retention. Despite the potential cost of implementing new strategies, many businesses will still make significant investments in marketing in 2023.