PIA Group | New Business - 2020-01-21
Always on and networked on all devices: Consumers today inform themselves about brands, products and services when, where and how they want. They expect relevant information and convenient technologies. These demands will continue to rise in 2020. For advertising companies, however, this also offers an opportunity: in 2020, it will be more important than ever to process, collect, secure and use data intelligently at all points of contact.
First published by New Business | A guest article by Christian Tiedemann
Privacy and customer power
The DSGVO of 2018 is gaining support worldwide. In the meantime, market-leading companies in the USA are pleading for similar data protection laws. User confidence could therefore rise again, especially if advertisers are clearly very careful and transparent in their handling of target group data and if buyers are also given the opportunity to control their own data. In 2020, technology companies and advertisers will therefore have to give more thought to how they can collect and monetise data. Consent management will become a priority. This is because technology companies such as Google, Facebook and Amazon are increasingly coming under criticism when it comes to the disclosure and lack of protection of user data.
Cooperation and better advertising
In addition to the responsible handling of customer data, brands and retailers should cooperate and manage their customer relationships themselves in order to become more independent of the closed systems of Google or Facebook (Walled Gardens). By sharing POS and inventory data in real time, both sides can use analysis to plan and implement advertising measures and optimize their product ranges. Agencies receive first-hand data on customer preferences and can develop advertising more targeted or play out the advertising formats more efficiently.
Getting to know the target group better through AI
At the same time, the use of artificial intelligence in digital marketing will continue to increase - at least for companies with large data stocks. AI can improve the personalization of offers and user engagement. Thanks to AI, customers can have positive experiences at the increasing number of touchpoints - according to Think with Google, 76 percent of consumers discover suitable offers on their customer journey, with over 85 percent of them dealing with them in the following 24 hours (Think with Google and Ipsos, 2019). Ideally, successful brands work on anticipating the wishes of their customers - supported by algorithms from 2020. In the future, more budget will flow into online channels and conversion rates will rise.
Include key channels
However, advertisers should make sure that the offers are made available to users at the desired touchpoints: From 2020, this will increasingly mean moving images and voice. According to Zenithmedia, the online video format will grow to a third of the TV advertising market by 2021 (Zenithmedia, Annual Online Video Forecasts Report, 2019). Demand for OTT inventory (Over the Top: video and audio content is made accessible via Internet access without an intermediary provider) and Connected TV (Internet-enabled TV sets) will continue to grow. Advertisers should therefore try to place video ads in premium inventory and on high-quality websites. As video content is increasingly consumed via apps such as Instagram, brands and agencies should necessarily include these channels in their media planning.
Voice makes user engagement more convenient and attractive through voice-controlled search. According to Gartner, 30 percent of search queries will be voice-driven by 2020 (Gartner Trend Insight Report "Predicts 2019: Leadership Means Expanding Options, Not Limiting Them", 2019). According to Deloitte, voice commerce will already account for 26 to 37 percent of e-commerce revenues in 2030 (Monitor Deloitte 11/2018 expert estimate (E-Com Market 2025-2030, Voice Impact)).
Conclusion: Creating unlimited brand experiences
In order to deliver creative brand experiences data-driven and based on the latest technologies, brands need to build up a strong partner network. By 2020 at the latest, they must treat traditional and online channels equally, whether mobile, social, TV, display, out of home, SEO, PR, affiliate, podcasts or voice. Because a successful marketing mix is thought of holistically - and is based on the experience of the customers.