Between memorable Super Bowl ads, viral marketing campaigns, and Twitter’s blue checkmark fiasco, 2022 proved to be another eventful year for brands and organizations. Marketers are looking to learn from this year’s highlights and disasters to shape their strategies for next year, from ongoing developments in the socioeconomic landscape to changing patterns in consumer behavior to new innovations in marketing technology. What are the most significant ongoing and upcoming marketing trends that brands need to be aware of?

Governments and regulatory bodies affect the ways brands do business now more than ever, continuously developing more and more laws that govern production, logistics, advertising, and so on. Recently, organizations have become especially strict about managing consumer privacy through data protection policies. In addition to well-known acts like Europe’s General Data Protection Regulation (GDPR) and Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), the United States is currently developing their first nationwide data privacy bill, the American Data Privacy And Protection Act (ADPPA). These regulations affect how companies collect, manage, and use consumers’ personal information, making it more difficult for marketers to create targeted advertising campaigns.

On top of increasingly strict regulations, brands and consumers have expressed concerns about “rising interest rates, inflation, and the threat of a looming recession”. People’s spending habits and shopping behaviors are shifting, with many restricting their budgets and either shopping online or closer to home to reduce gas expenses. To save money, many are starting to purchase necessities like groceries and household goods from budget brands. Brands must closely follow consumer behavior patterns to understand and ease their financial concerns by offering deals like bulk discounts or gift with purchase promotions.

The COVID-19 pandemic permanently impacted how people interact with brands and how marketers reach consumers, shifting the focus from in-person to hybrid to online experiences. More and more companies are experimenting with different types of inbound marketing by creating content like videos, blog articles, and virtual events. Instead of reaching out via calls, emails, or paid ads, marketers draw consumers in with relevant, valuable content before they even make their first purchase. Inbound marketing generates 3x more leads than outbound marketing and costs up to 62% less.

With the rise of inbound marketing, more brands are also replacing the traditional marketing funnel with the flywheel, which is a cyclical approach to the buyer’s journey. Rather than constantly moving on to new audiences, marketers are nurturing long-term relationships with existing users. They create quality content and experiences to engage consumers continuously and encourage them to move from the purchase stage to the loyalty and advocacy stages. The flywheel is also more effective for addressing consumers’ needs, interests, and purchase motivations. Marketers can boost return on investment and customer lifetime value by developing content strategies that attract, engage, and delight consumers.

In a successful omnichannel marketing strategy, brands create clear, consistent messaging across all of their marketing channels. This includes their website, mobile app, social accounts, product packaging, in-store displays, and so on. Consumers want to move through their path to purchase and between user touchpoints seamlessly, not independently. For example, if a brand mentions a holiday sale in its email newsletter, shoppers expect to see it on their website, social media, and store advertisements, too.

Recently, omnichannel marketing has taken on another name: phygital retail, which helps “bridg[e] the gap between brands’ physical and digital presence”. Much of phygital retail focuses on reducing friction for consumers and employees, such as having consistent stock management practices both online and in-store so employees can help consumers find what they’re looking for. Recent trends in phygital retail include checkout-free shopping and click-and-collect (also known as curbside pickup), helping consumers tailor their shopping experiences according to their own lifestyles and purchasing behaviors.

As younger generations gain greater purchasing power and become more politically active, brands face increasing pressure to get involved. Consumers are no longer satisfied with companies that take a neutral stance on important issues like climate change and gender equality. They’re also more likely to trust and remain loyal to brands whose values align with theirs than those who don’t. The two most widely-discussed topics in brand activism are diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG).

DEI initiatives include brand accountability for past mistakes, increased diversity in marketing campaigns, and better representation in company leadership. Shoppers want to see more women in executive positions, more people of color in advertisements, and more accessible products for people with disabilities, with 49% of consumers reporting that DEI significantly impacts their purchasing decisions and habits. Many major brands have recently stated their commitment to DEI, including Mattel, Procter & Gamble, and Microsoft. Companies who neglect diversity and inclusion in their 2023 strategies may risk losing valuable consumers.

ESG strategies revolve around a company’s commitment to ethical and sustainable business practices. This includes their carbon footprint, data protection laws, auditing practices, and so on. ESG is more widely recognized than DEI, as governments and organizations around the world already regulate companies for factors like labor standards and greenhouse gas emissions. Companies with established ESG commitments include LEGO, Nike, and Apple. In order to keep up, brands should focus on identifying their ongoing impact on their employees and the environment in 2023.

With the overabundance of competitors available in any given industry, consumers hold the power of choice, making it harder for brands to stand out in a shopping center or a store aisle. Some shoppers base their purchasing decisions on convenience or price, while others choose based on quality or familiarity.

To encourage consumers to explore outside of their typical shopping behaviors, more and more companies are developing memorable brand personalities through humanistic attributes, visuals, and language. Successful marketing campaigns often aim to create aspirational lifestyles, from Disney’s focus on family-friendly experiences to Rolex’s perceived image of wealth and sophistication. Marketers also use social media to start humorous, engaging conversations with consumers, as seen with brands like Wendy’s, Old Spice, and Taco Bell. This improves brand recall and increases the likelihood of user retention and long-term customer loyalty.

Another increasingly popular method of building a brand identity is employee engagement and advocacy. Rather than presenting themselves as a faceless organization, companies are starting to highlight the people behind their brand, whether they’re capturing a candid moment, celebrating a team accomplishment or successful event, or creating an employee-centric marketing campaign. They also encourage employees to share stories about their work experiences and company culture on social media. Employee advocacy helps brands appear more authentic, relatable, and socially aware.

Personalization plays a huge role in consumer decision-making, as shoppers want brands to understand and cater to their individual needs. For example, companies that send tailored emails based on past purchases are more likely to receive desired conversions than those who send generic emails to all of their subscribers. Marketing personalization relies heavily on having the right customer data, such as their location, age group, and interests. Currently, “over 70% of consumers now expect personalization and are frustrated when they don’t find it”, leading to increased brand switching and decreased customer loyalty. If brands want to retain consumers in 2023, they need to leverage zero-party and first-party data to meet shoppers’ expectations.

One of the biggest trends in marketing personalization is conversational marketing, which connects sales, marketing, and customer service through asynchronous communication. This is most commonly seen in chatbots and messaging services, where consumers ask questions, learn about the brand’s products and services, and complete purchases. Instead of browsing a company’s website or social media for information, consumers have one-to-one conversations tailored to their interests and build deeper relationships with their favorite brands over time.

While most brands are active on well-established social networks like Facebook, Twitter, Instagram, and TikTok, others are starting to find their user base on smaller platforms like Discord, Clubhouse, and Twitch. These niche communities, which include online spaces like review websites and discussion forums, help marketers form strong connections with passionate audiences who share particular interests. For example, bookstore owners might check out Goodreads to see what people are reading and recommending, while skincare brands can visit Reddit to learn about consumers’ skincare concerns and preferences.

Whether brands find their target audience on popular social networks or in niche spaces, they need to cultivate their community in order to foster long-term customer loyalty. Marketers nurture emotional connections with consumers through community building initiatives like brand merchandise, exclusive events, and loyalty programs. For example, brands with a “cult following” like Apple and Marvel regularly host fan gatherings to generate a sense of likemindedness and belonging. If companies want to see higher levels of user retention and customer lifetime value in 2023, they need to develop reciprocal relationships through brand communities.

Today’s consumers are becoming increasingly skeptical of brands and are more likely to trust online reviews and recommendations than a company’s advertising campaigns. This is because of our reliance on social proof, also known as informational social influence, meaning we like to model our choices and behaviors based on other people's actions.

Brands can leverage this psychological concept by working with creators and influencers to promote their products. In a successful partnership, influencers give brands higher levels of credibility, introduce them to new audiences, and encourage higher levels of engagement. Similar to niche social platforms, marketers might want to seek out micro-influencers with a small yet dedicated following over creators with a large but broad audience. This can help them target specific user needs and build deeper one-to-one relationships. 89% of brands who use influencer marketing plan to maintain or increase their investment next year.

Another way to incorporate social proof is with user-generated content. For example, brands can create a branded hashtag and ask consumers to share photos and videos of them using their products. They can also run contests where consumers enter by leaving a review on their website or a comment on their social content. UGC helps build brand communities through word-of-mouth, validates a brand’s trustworthiness and reliability, and reduces marketing costs while increasing customer lifetime value over time.

Between economic challenges, environmental concerns, and the COVID-19 pandemic, many consumers are becoming more mindful of how they shop. In conscious consumerism, shoppers deliberately try to change their purchasing habits and reduce consumption. This can include eating less meat and dairy products, taking public transportation instead of buying their own car, and purchasing from brands who focus on making the world a better place. 76% of consumers say that “the ability for a company to demonstrate a positive impact on society and the environment” affects their purchasing decisions. As mentioned previously, brands that don’t take a clear stance on DEI and/or ESG-related issues may lose customers and revenue in 2023.

One of the biggest aspects of conscious consumerism is the rise of secondhand shopping, especially among Gen Z consumers. Younger generations value cost-effectiveness and environmental initiatives, and frequently participate in community marketplaces where they buy and sell used clothing, furniture, smart devices, and so on. Brands who want to win over young, socially conscious consumers should focus on reducing their environmental impact and increasing their products’ longevity where possible.

Though social-driven marketing trends continue to grow in popularity, some consumers are changing their attitudes toward social media for various reasons. Many people have deleted their social accounts due to decreased trust in social networks after major data breaches like Cambridge Analytica. Others are spending less time on social media because of their mental health, as studies show that excess social media usage leads to increased anxiety and depression and reduced levels of confidence and sleep. Lastly, some people simply have less free time for social media. With workplaces, businesses, and public spaces opening back up, consumers are spending less time online and more time with others. Marketers who focus on transparency, authenticity, and community can show consumers how to use social media in a healthier, more mutually beneficial way.

Recent shifts in social media behavior also affect search engines and algorithms. In addition to keeping up with events, influencers, and friends, younger generations also use social media to find information. According to Google, about 40% of users between the ages of 18 to 24 start their buyer’s journey on platforms like TikTok or Instagram instead of a search engine. They’re also more likely to browse hashtags, Instagram’s Explore page, and TikTok’s For You page, rather than entering specific search terms. Brands looking to reach new audiences should take a closer look at social media and potentially develop a robust hashtag strategy.

With multimedia marketing on the rise, brands are no longer limited to running paid ads through ad networks, search engines, and social platforms. To start, the digital audio advertising industry is projected to reach a worldwide marketing volume of $11.9 billion USD by 2027. This includes pre-recorded ads and on-air promotions in streaming services like Spotify and SiriusXM. These audio platforms use targeting parameters to help brands reach specific demographics and create audiences of highly qualified leads. Currently, the average consumer spends about 16 hours per week listening to online audio, giving brands plenty of opportunities to reach their ears.

Video advertising also grew exponentially in recent years, especially with short-form videos and livestreams becoming more popular. In addition to sponsored content and YouTube ads, brands are also creating more video content overall, including product overviews, tutorials, and behind-the-scenes videos like office tours and employee testimonials. 78% of marketers plan to invest in video marketing in 2023, beating out other forms of content marketing like events, paid media, and UX design.

Lastly, some brands connect with consumers through in-game advertising. These ads can either be static, meaning they can’t be changed after the game’s release, or dynamic, meaning they can be updated at any time to reflect new brand partnerships, new content, or new products. Marketers can also use dynamic campaigns to target specific consumer segments, such as by age group or physical location.

To generate more engagement, brands use gamification to create memorable, interactive experiences for their consumers. Gamification leverages game mechanics like points, leaderboards, goals, and rewards to incentivize users to complete desired actions. For example, asking consumers to watch a video or answer a quiz to earn points, which they can redeem for a gift card. 88% of marketers state that interactive content gives them a competitive edge, improves brand recall, and helps retain loyal customers through sustained engagement. Brands who want higher user retention levels should consider offering rewards and other incentives like badges and leaderboard rankings, as the global gamification market is expected to be worth $30.7 billion by 2025.

Another popular form of interactive content is social commerce, where brands sell their products on social media platforms like Pinterest and Instagram. Social commerce reduces friction in the buyer’s journey, as consumers can move from discovery to engagement to purchase without needing to visit a brand’s website or use another app. It also reduces friction for brands, as they can track users’ path to purchase, link engagement data to purchase data, and identify opportunities and challenges in one place. Marketers should integrate social commerce into their future strategies to create more seamless consumer shopping experiences.

Some brands take interactive experiences one step further by immersing consumers in virtual worlds or augmented realities. For example, an outdoor gear brand can create a 3D environment where consumers go for a virtual hike while “wearing” their products. A beauty brand can develop a camera filter where consumers try on makeup and accessories in the comfort of their own homes. VR and AR technology helps users better understand a brand’s products and how it works for them, increasing the likelihood of a purchase. The global VR and AR market is estimated to reach $300 billion USD by 2024.

The next evolution in augmented and virtual reality is the metaverse, which quickly became one of the most talked-about technological developments in recent years. In a marketing context, metaverses are virtual worlds where people create avatars, participate in virtual events, and purchase digital products like clothing and artwork. Brands currently participating in metaverses like Roblox and Fortnite include Nike, Samsung, Atari, Coca-Cola, and Gucci. While some brands are cautious about joining due to its developing nature, many are eager to experiment and explore its possibilities. The metaverse is expected to be worth $80 billion by 2024.

Web3, or Web 3.0, is the latest iteration of the internet, revolving around user engagement, smart applications, and behavioral advertising. Compared to previous versions of the World Wide Web, it takes a more independent approach where users own their personal data, store their data on decentralized servers, and build applications for others to interact with. For example, while Web 1.0 leveraged advertising networks and Web 2.0 leveraged algorithms and third-party cookies, Web3 leverages artificial intelligence and personal assets like NFTs to offer a stronger sense of individualism and user privacy. Web3 is currently still evolving, but marketers must familiarize themselves with the widespread shifts in the internet’s characteristics.

Artificial intelligence already plays a massive role in marketing, as it’s used in powerful tools like search engines, ad optimization, and social media algorithms. In simple terms, AI is a computer system designed to think, act, and process information like a human being, and can help marketers automate tasks like predictive models, personalized recommendations, email workflows, and customer service. Brands should integrate artificial intelligence as much as possible to reduce mistakes, increase productivity, and make the most of their first-party data.

Data is a crucial component in all types of marketing, from paid advertising to social engagement to website performance and more. It helps marketers make decisions, shape strategies, and guide their brand's future. Data-driven marketing also reduces the chance of mistakes, supports customer segmentation and personalization, and improves user retention and brand loyalty. Brands collect first-party data like account information, purchase history, and social profiles so consumers can engage with their products and services. Brands also collect zero-party data like product reviews, blog comments, and survey responses so consumers can receive personalized experiences in return.

However, consumers are becoming increasingly concerned about their privacy, and are reluctant to share personal information like their location, age, and interests. To alleviate their concerns, brands must openly state how they collect, store, and use consumer data. They should also limit the kinds of data they collect to necessary information only. For example, if they have no intention of calling or texting their consumers, they shouldn’t ask for their phone numbers. Marketers need to focus on building consumer trust with clear data protection practices and user privacy policies.

Create data-driven marketing initiatives for the new year and beyond

Whether companies are developing omnichannel strategies and brand personalities, researching niche platforms and micro-influencers, or investing in social commerce and augmented reality, they all have one thing in common: data. Marketers need to successfully navigate user concerns and privacy laws to collect, store, and leverage consumer data. From there, they can build and execute strong, well-informed marketing campaigns that help grow their brand in 2023 and beyond.

With 3 tier logic’s PLATFORM³, brands can create marketing campaigns like loyalty programs, contests, gift with purchase programs, and more to drive user engagement and collect valuable consumer insights. Modules like Dynamic Messaging, Rewards & Gamification, and Data Capture & Analytics provide marketers with the tools they need to inform their decisions for continuous business development and growth. To learn more, book a demo with our team today.