And video has become a clear powerhouse, illustrated by Instagram’s pivot to video reels. Social commerce will only get bigger, with more than one-third of Facebook users planning to make a purchase directly through the platform in 2022. The typical social media user now spends about 15% of their waking life using social platforms. One in five dollars spent on online retail in Southeast Asia now happens through social media.Īfter more than a year of working from home, people around the globe are spending even more time scrolling through social feeds. In Southeast Asia, social media is the number one channel for discovery. And to encourage data sharing, 44% of brands * already plan to be more transparent around how they use customer information. Our survey showed that in 2022, 42% of brands * plan to offer their customers personalized product recommendations through tools like quizzes, custom mobile apps, and first-party or third-party behavioral data. This is the data a brand collects directly from their customer, with their customer’s consent. More importantly, customers are more privacy aware than ever before and trust is getting harder to earn.īrands are turning to first-party data to fill the void third-party cookies will leave. In a commerce world where omnichannel is king, the fragmented customer experience offered by the third-party cookie isn’t cutting it anymore. But that doesn’t mean brands should rely on Google’s cookies in 2022. Google Chrome, representing over 60% of search engine market share, announced in July 2021 that it will delay third-party cookie blocking until late 2023. At least 28% of technology decision makers * around the world expect changes to customer data and privacy regulations to hinder their 2022 growth goals.Īpple, Firefox, and Brave already automatically block third-party cookies. California’s Consumer Privacy Act put data transparency into state law immediately before the pandemic, and The European Union’s General Data Protection Regulation (GDPR) has cost some businesses dearly in fines since its institution in 2018.Ĭompliance costs aren’t the only problem these laws pose to businesses. And only a few months before, Brazil began issuing penalties to violators of the country’s General Data Protection Law. In November 2021, China’s Personal Information Protection Law came into effect. Internet users are exercising their privacy rights, and governments are making it easier for them to do so. As the digital space becomes more crowded, brand identity and brand awareness will only become more crucial. Strong brands draw more organic acquisition, retain more customers, and can raise prices-the most powerful lever you can pull to increase profits. A business needs a strong brand to earn their place in the minds of consumers.Ī strong brand not only makes performance marketing more effective in the short term, it’s also the foundation of sustainable growth. In fact, Google reports that more than 80% of customers conduct their research online before making a purchase decision. While conversion rates are important, most consumers already have a brand in mind by the time they’re ready to buy. But performance-based advertising is only part of the equation. That’s why 70% of marketers who are cutting their budgets in 2022 will sacrifice investments in brand building, and only 13% will reduce performance marketing spending. Marketers who want immediate, measurable results tend to undervalue brand, which is a longer-term investment. It’s no wonder the world’s top companies have brand building at the heart of their marketing strategies in 2022. The brands most reliant on short-term performance marketing will struggle the most in the increasingly saturated commerce space. Creating a sustainable customer base will require brands to build awareness and confidence with consumers who aren’t ready to buy, or who aren’t even in the market yet. Even when high upfront ad costs and granular targeting create short-term wins, they aren’t long-term profit drivers.As advertising platforms get more competitive, brands that haven’t developed familiarity and trust with consumers will become more entrenched in a direct-marketing battle to offer customers the lowest price.The age tier was only correct 23% of the time, and gender was properly identified in well below half of cases. Harvard Business Review tested the accuracy of the digital profiles data brokers sell, and the results were dismal. Audience segmentation is not as reliable as merchants think.But there are at least three problems with this approach: Many hope that advances in hypersegmentation will make their advertising dollars more effective by targeting consumers who are ready to purchase. Despite the changing digital ad landscape, 41% of brands * plan to increase investment in paid and organic search.
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