2022 Predictions betting on Real People and Stories
The past two years have taught us that dramatic change in consumer behavior and macroeconomic forces shape the media landscape in unexpected ways, accelerating trends and adoption. Here are a few trends that point the way forward in 2022.
The loss of cookies
The loss of cookies in 2022 is overhyped. With Google pushing the discontinuation of third-party cookies into 2023 and the impact of iOS 14, there won’t be additional loss of tracking personalization in 2022. We'll see a crucial opportunity for marketers to develop strategies for the near future, including investing in first-party data. Marketers will need to store it so the data is available to digital channels for remarketing into 2023.
Building a war-chest of first-party data
With consumers taking control of their privacy and tracking, brands need first-party data about the behaviors of their customers. This requires access to customers’ in-depth data management and analytics skills to stay competitive. To appropriately capture, segment, enhance and execute campaigns truly focused on human behavior is the differentiating factor for the winners and losers of brands in 2023 and beyond. The time to get serious about first-party data is now.
Rise of CTV
Connected TV (CTV) platforms have begun advertising to attract new users with fresh content and encourage habitual viewing. The result is a substantial audience among urban Millennials and Gen Z, with 70% watching video-on-demand and on average, subscribing to three new streaming platforms during lockdown. These consumption patterns and massive swing away from traditional linear TV are not changing. Marketers need to take advantage of CTV by understanding the right strategy and performance to be successful beyond 2022. Research from streaming service Hulu found that viewers pay 33% more attention to advertising while watching time shifted content versus live content, in line with increased attention to the programming.
The brands that win are those that tell great stories
Tell great stories using breakthrough creative that consumers relate to and engage with. People make decisions emotionally and justify them rationally, and the power of creativity remains undimmed. We see successful brands adopting an always-on, publisher mindset, growing audiences through editorial excellence. A memorable ad will often go “viral” with consumers doing the heavy lifting of evangelizing your story. As marketers measure attribution of marketing dollars towards performance and business outcomes, building brand affinity and winning mindshare authentically is critical to success among Millennial and Gen Z consumers.
What to expect beyond 2022?
What are the long-term bets that brands should consider over the next decade? Augmented and virtual reality will bridge physical retail and online environments, giving the next generation of consumers their virtual identity. Ariana Grande recently netted $20M in a series of virtual Fortnite concerts. Lines will blur for consumers between real and virtual as they spend heavily on virtual experiences for their avatars.
Along with virtual reality, Gen Z will push brands towards greater sustainability and purpose-driven transparency of their supply chain, the environment, and doing their part in slowing the effects of climate change. The use of biometrics replacing wallets and physical forms of identification creates new opportunities and challenges to consumer privacy for brands.