A view on 2022 and what's in store next?

As the industry winds down from a busy and often challenging year we invited ADMA’s board to give us their view on 2022, and assess what is coming over the horizon in 2023. 

Paul McCrory, Group Industry Director, Meta

How would you sum up 2022?

It’s really been a wild ride. I think we’ve made great progress moving forward from the pandemic  to more face to face interactions, events and people wanting to be “back to normal”.

But that’s not to say 2022 hasn’t been challenging for the industry. Falling consumer confidence, rising interest rates, skyrocketing rents and cost of living pressures are all hampering economic recovery, compounding the disruptions of the past couple of years.

There’s not a single business, or person for that matter, that hasn’t been impacted by global events over the last two years. We’ve seen all businesses become performance-driven digital businesses. We’re also very much dealing with ongoing challenges, and it’s no secret these challenges will continue as household budgets become impacted by rising inflation.

But, despite all these market pressures, there is still room for positivity. Consumers still have an appetite to spend; brands just need to give them a reason. That’s why businesses need to understand that what customers value is no longer just driven by price, but rather tailored offers. 

How has that affected you as a marketeer?

To start, one word we saw a lot during the pandemic was “adapt” - and that still holds true. We, as marketers, need to exercise all the tools, creativity and strategic mindset to be able to think on our feet. And there is no such thing as a one-size-fits-all approach. Being a marketer is a matter of adopting an experimental attitude, and being consistent with testing and learning to uncover what works for your brand. 

Firstly, I think realistically, no brand has mastered leveraging first-party data yet. That is why there is such a big opportunity on how data is collected, how the data is used, and who brands partner with to help make it all happen. 

Secondly, in the current environment, brands need to be cognisant about how to best embrace their digital brand to drive growth. As the digital landscape continues to evolve, performance-oriented businesses are expanding customer acquisition efforts to start earlier in the consumer journey. They are using this strategy to reach new audiences.

Finally, I also think there needs to be more scrutiny into finding out whether the work we do as marketers is providing real value to our businesses.

So what can we expect in 2023?

The first thing to understand is that we can plan, but we’ve all seen the best plans go out the window over the past few years. Anything from market conditions and supply chain disruptions can change everything - and that’s not even accounting for something that can happen completely out of the blue.

We know there is a lot of movement happening in the world. Economic headwinds are impacting businesses around the world, as are changing consumer behaviours and digital platform shifts. 

But a key difference between this downturn and those of the past is that we now have tools at our disposal to perform analysis to a forensic level, and much more quickly and effectively. There are tools such as the new class of AI and advanced machine learning models that are having a positive impact on knowledge work.

Applying machine learning, using data creatively and adopting an experimental mindset, can all help companies lean into creating disciplined competitive advantages, and provide them with the insight to unearth new opportunities, further extending that competitive edge.

What does that mean for marketers?

Marketers need to take the time to analyse their business. They need to focus on what they do best and how to build a competitive advantage in those areas to come out the end of 2023 stronger than before.

Marketers also need the ability to identify activities that deliver truly incremental impact. Duplication and double-counting are rife in marketing measurement and this leads to inefficient waste. By measuring incrementality and scaling these practices with machine learning, businesses can operate more efficiently and get better outcomes. The resulting smarter decisions can be leveraged across the whole business.

And what does that mean for your business?

Despite these pressures and challenges, we’re optimistic. At Meta, we’ve increased our investment in AI and machine learning, and have been working with our clients to find strategies to pave a path forward to grow next year. We’ve done this through utilising three levers:

1. Maximise first-party data

Businesses want to deliver customer-centric, personalised experiences to drive better performance. By leveraging relevant first-party data, it’s possible to achieve that. The data can train AI and ensure that the outcome delivered is the best response to what customers are demanding. This approach is about using first-party data in a way that makes up for the emotional needs customers aren’t getting as they tighten their purse strings. It can be also useful in identifying the best performing channels that get customers over the line, as well as for top of funnel awareness. Recent research by GfK, commissioned by Meta, found that 87% of Aussie online shoppers say they are always open to discovering new products that match their interests. 

2. Embrace digital branding

It’s important to build a holistic view of the customer journey to achieve long-term value alongside individual sales. But how can you take that performance mindset to build a brand that can drive further growth? It’s a matter of building trust and being clear about what makes your brand unique and different beyond all the noise that exists in the market. It’s also important to note not all customer journeys are the same, which is why incremental testing of marketing efforts can help you understand how customers are reacting, whether that’s brand, offline, online, direct response, lower funnel or mid-funnel. This understanding can help ensure that what’s being delivered to customers is relevant and of interest. 

3. Adopt a test-and-learn mindset

Prioritising experimentation will help your business optimise the strategies that perform best. Working closely with all relevant parties to create an ongoing channel strategy can deliver on core business objectives, such as customer experience, lead generation and driving efficiency. Relying on just algorithms is no longer enough when it comes to making smarter decisions and increasing campaign efficiencies.
 
While there is still much work to do, we believe these levers will meaningfully improve the performance of businesses and help drive growth as we move into 2023 and beyond.