Six Major Trends in Marketing

The broader marketing world continues to evolve at a rapid pace, driven by advancements in strategies, tools and technologies to help businesses connect with target audiences. We have seen significant channel and content shifts in recent years, accelerated by COVID. We believe that the intersection of technology, data and creativity is fundamental to enabling market players to stand out in crowded markets, while targeting the right audience with the right communication in a cost-effective manner. In this article, we look at what we believe to be the biggest drivers in the market:

Scaled Personalisation

Marketing messaging that has been personalised for a consumer’s preferences and needs in a world where they are being constantly bombarded with content and data will be both more impactful than generic messaging. However, there is a lot of science behind personalising such messaging – this requires analysing huge amounts of data around personal characteristics, behaviour and preferences to deliver hyper-targeted marketing campaigns that resonate with consumers on an individual level. 

Our portfolio partner Sagacity https://www.sagacitysolutions.co.uk/, provides such services, operating at the intersection of technology, data and creativity to inform and direct clients such as The AA, Marie Curie and Staysure on their approach to targeted audiences across different channels such as social media and direct mail. This challenge is expected to become harder in coming years with the expected scrapping of cookies. As a result, clients will need to work with data providers such as Sagacity, utilising proprietary GDPR compliant data, and machine learning-based technology to guide decision making when reliance on third parties cookies is eliminated.

Scott Logie, Client Engagement Director at Sagacity, comments: “Every organisation wants to achieve a one-to-one relationship with their end customer. The bridge from mass marketing to this utopia is segmentation and personalisation, and the driver for that is relevant data married to insight and content.”

Continued Dominance of Video

COVID has accelerated the transition from traditional channels of marketing such as TV, radio and newspapers to video and online formats. YouTube continues to remain strong, however shorter form content from the likes of TikTok and Instagram Reels has been increasingly gaining ground. There are also more focussed platforms such as Twitch for gaming. Brands are increasingly utilising video to tell compelling stories, engage audiences, and showcase their products or services in creative ways. Live streaming has also emerged as a way for brands to interact with end customers in real time, fostering engagement, transparency and trust.

Content Remains King

Creation of valuable and relevant content is more likely to create long-term value to brand owners over other marketing tactics. It allows brands to build a connection with its audience as well as build trust, respect and engagement with the brand. Microsoft, Meta, Nike, Hublot and Aston Martin work with another portfolio partner of QPE, Forever (consisting of FutureDeluxe — Design, Technology & Moving Image and Tendril), to produce bleeding edge content to elevate their respective brands and support product launches. 

James Callahan, CEO of Forever remarks “The hunger for content has been growing YOY with the advances in super-fast internet. We are now consuming video content in every possible moment (and location). In order to stand out within a vast sea of ‘mediocre’, the smart brands are doubling down on creativity and quality. Choosing to focus on fewer key moments, then investing in high quality content creation that stands out, engages and cuts through the clutter. AI will soon allow all agencies and brands to create low-mid quality content on mass, at speed, very cheaply. At that point, Bespoke, high quality and visually stunning creative will be the only real way to grab attention.”

Influencer Marketing

Influencer marketing has experienced huge growth in recent years as consumers are increasingly being guided by endorsements from celebrities and subject matter experts. We have tracked the sub-sector for a number of years, which remains nascent and expected to grow over the medium term at teens CAGR. There is also an evolution as brands switch from mass influencers to micro-influencers, with smaller but highly engaged followings, to connect with niche audiences more effectively. Conversely, disintermediation is being seen at higher levels of influencer marketing. Moreover, brands are moving beyond simple sponsored posts and exploring long-term collaborations and influencer-generated content to create a more integrated and authentic brand experience.

Purpose Driven Marketing

Today’s consumers are not only focussed on a brand’s products and services, but also its values and broader impact on society and the environment. A recent study reports that close to eight out of ten consumers feel a deeper personal connection to companies with whom they share values. Purpose-driven marketing exemplifies a brand’s dedication and focus to making a positive impact on society, differentiating it from competitors in a saturated marketplace. By adopting purpose-driven marketing strategies, brands hope to cultivate more deeper relationships with their consumers while also establishing trust and loyalty.

Artificial Intelligence and Machine Learning (sorry couldn’t have an article not mention this!)

We struggle to have conversations about businesses today without discussing the impact of AI and ML over both the short term and the long term. AI has been long-established but ChatGPT has recently highlighted its capabilities. The honest truth is that we can only speculate about the long-term impact and broader implications. As James alludes to earlier in this piece, we see high volume, lower quality commoditised marketing as being under threat from AI. Higher end, specialist services to marketing should benefit. AI should, at a high level, create efficiencies by being used as scaffolding for output. Scott comments, “ChatGPT has created a real buzz around this obviously; from both a data and a content perspective it has a massive impact. Machine learning helps marketing by removing the mundane (profile creation, segment building, basic content generation) to allow the human impact to be used better. We can create thousands of segments now, and tailor content and creative for all of them, but that needs oversight and management to ensure it is applied correctly.”

We have invested behind a number of these trends already at QPE and are looking to continue to support our existing partners as well other businesses at the cutting edge of their art and profession.