A BLEND OF TECH AND AUTHENTICITY
IN 2024
Marketers are poised to navigate a landscape marked by the merging of innovative technology and enhanced consumer experiences.
This report presents seven pivotal predictions, backed by survey results, from the improvement of vendor partnerships to artificial intelligence (AI) demand for deeper connections, highlighting a future where personalized value and authenticity carry the utmost significance. As brands agilely adapt to emerging trends, the challenge is balancing the hype with meaningful engagement, ensuring it leads to opportunities rather than oversights in a rapidly evolving marketplace.
CHARTING THE COURSE
Seven Insights Shaping the Marketing Landscape
01 Streamlined Vendors + Value-Driven Strategies Define Success →
02 Back to Basics: Embracing Fundamental Consumer Trends →
03 Balancing Genuine Engagement With Efficient Productivity →
04 The Rise of Contextual Commerce →
05 Immersive Retail Experiences in the Spotlight →
06 The Value-Exchange Creativity Challenge →
07 The Hype Machine Goes Into Overdrive →
Streamlined Vendors + Value-Driven Strategies Define Success
Next year, marketers are expected to streamline vendor relationships, focusing on comprehensive solutions within tighter budgets. This strategic shift is driven by the need to tackle complex marketing challenges without the luxury of increased spending.
INSIGHT 01
Strategic Vendor Consolidation:
Insights from the Vericast Industry Survey
Nearly one-third of marketers are currently navigating the challenges of reducing martech costs while seeking specialized solutions for complex issues, as highlighted in the Vericast Industry Survey conducted in September 2023.
Vendor Collaboration Challenges
44% High System Maintenance Costs
35% Integration Complexities
35% Slower Market Adaptability
33% Demand for Integrated Solutions
33% Stringent Privacy Standards
32% Workflow Complications
31% Omnichannel Solution Needs
Source: Vericast Industry Survey, September 2023 (n = 536), Grocery Drug Mass (n = 103), Retail (n = 102), CPG (n = 126), Restaurant (n = 103), Financial (n = 102)
INSIGHT 01
CMOs UNDER PRESSURE:
INSIGHTS FROM THE GARTNER SURVEY
This Gartner survey highlights that 75% of CMOs must reduce their technology spend. Their tactics align with our prediction, emphasizing a pivot toward operational efficiency and smart martech investments. Additional survey feedback suggests these trends are part of a larger shift in marketing resource allocation.
CMO Cost-Cutting Measures
SCALING BACK
On Continuous Improvements
DECREASED INTEGRATION
On Services For Martech
CUTTING BACK
On New Martech Acquisitions
TRIMMING
On Managed Services Investments
Source: 2023 Gartner CMO Spend and Strategy Survey
INSIGHT 01
VENDOR EFFICIENCY SURVEY RESULTS:
DEPTH OVER BREADTH
Preference for fewer, specialized vendors is overwhelming: 82% of advertisers favoring expertise and focused collaboration for implementing marketing strategies.
The data speaks volumes. It points to a growing trend among advertisers to streamline operations and seek more thoughtful partnerships with specialized vendors for better outcomes.
01 | Practical Application
In today’s fast-changing market landscape and budget constraints, marketers are seeking more than just tools; they need reliable partners who can guide them toward success. Vericast stands out as that vital partner, offering comprehensive solutions that extend beyond mere technology. Our NXTDRIVE™ platform is not simply about providing an all-in-one customer data marketing tool that simplifies challenges, such as managing diverse data sources, optimizing marketing campaigns, enhancing data expertise, improving visibility, and reducing costs; it’s about embarking on a journey with our clients, navigating together through the complexities of the marketplace.
Back to Basics: Embracing Fundamental Consumer Trends
Marketers who master the essentials — offering competitive prices, high-quality products and services, and impactful promotions — will likely see their brands flourish. As consumers increasingly seek alignment between their purchases and personal values, understanding and leveraging the nuanced interaction between cost savings and brand ethics will become essential.
INSIGHT 02
MARKET DYNAMICS:
VALUE VS. VALUES
Discrepancies in Value Perception
Coupons and Discounts
Marketers: Underrated
Consumers: Top priority, especially for baby boomers, after price and quality
Value Alignment Marketers
Marketers: 26% emphasize
Consumers: Value at 17%
Cultural Resonance Marketers
Marketers: 24% prioritize
Consumers: 10% overall; 15% for Gen Z indicate importance
Content Sensitivity
Marketers: 24% prioritize
Consumers: Only 12% consider crucial
INSIGHT 02
BANKING ON FUNDAMENTALS:
CUSTOMER PRIORITIES IN 2024
Banks that address core customer needs will secure loyalty and business.
DIVERSE PRODUCT OFFERINGS
A comprehensive suite of financial solutions is key
OMNICHANNEL
SUPPORT
Customers expect seamless service, both online and in-person
DATA
SECURITY
Trust hinges on robust data protection measures
GENUINE
ENGAGEMENT
Authentic, culturally aware communication deepens customer relationships
TECHNOLOGY ADVANCEMENT
The rise in digital banking demands adaptation
INSIGHT 02
CAPITALIZE ON SAVINGS TRENDS
Align your strategies with consumer savings aspirations by focusing on tailored discounts and coupons.
INSIGHT 02
STRATEGIC COUPON USE
66% of marketers who use coupons plan to continue utilizing coupons to nurture customer loyalty, endorse products, and gauge marketing success. Embrace coupons to elevate sales, social engagement, and market competitiveness, and refine your marketing tactics.
LEADING COUPON TACTICS FOR OPTIMIZING BUSINESS GROWTH
35% New product introduction
34% Marketing effectiveness measurement
33% Market competition
33% Sales volume growth
33% New customer onboarding
31% Social media engagement
02 | Practical Application
In 2024, aligning marketing strategies with consumer expectations regarding value, cultural relevance, and savings will be critical for business growth and customer loyalty. Effective marketing solutions — whether in print or digital — are designed to inspire action, delivering offers directly to peoples’ mailboxes and seamlessly guiding them from online ads to taking meaningful actions.
Balancing Genuine Engagement With Efficient Productivity
By next year, marketers are predicted to be at a pivotal crossroads, tackling the paradox between maintaining authenticity and increasing productivity. The integration of artificial intelligence (AI) and machine learning (ML) into marketing strategies is expected to be a key factor in this equation, evolving from an overhyped novelty to a practical necessity for marketers.
INSIGHT 03
NAVIGATING AUTHENTICITY WITH TECHNOLOGY
LEADING TOOLS FOR AUTHENTIC CONNECTIONS WITH CONSUMERS
Loyalty Programs: 31%
Personalized Offers: 30%
Customer Data Platforms: 29%
Paid Social Media: 28%
Influencer Marketing: 27%, acknowledging their role in fostering authentic relationships
INSIGHT 03
THE ROLE OF AI IN MARKETING:
HYPE OR HELP?
The industry expresses mixed feelings about AI/ML, with 84% acknowledging that “AI can boost productivity, but companies still rely on human interactions to establish authentic connections with consumers.”
ADOPTION OF AI/ML IN MARKETING: A RANGE OF ENGAGEMENT
VIEW AI/ML AS MORE HYPE THAN A REAL SOLUTION
ARE BEGINNING TO INTEGRATE AI/ML IN THEIR STRATEGIES
SHOW INTEREST BUT LACK A STARTING POINT
ARE ACTIVELY USING AI/ML TO MEET MARKETING OBJECTIVES
INSIGHT 03
AI AMBITIONS:
BRANDS SEEK CLARITY ON HARNESSING AI FOR DATA STRATEGY
Understanding the integration of AI in managing first-party customer data reveals a spectrum of marketer readiness and challenges.
03 | Practical Application
In the complex landscape of marketing, the question persists: Can technological advances like artificial intelligence and machine learning enhance marketing effectiveness, or does the human element remain the key differentiator? While technology offers unprecedented targeting capabilities, it’s the synergy of machine precision and human insights that propels marketing effectiveness to new heights. Vericast’s Social Media Marketing harnesses this powerful combination, uniting the reach of branded paid social ads with the authenticity of key influencers. Dive deeper into our cutting-edge digital marketing solutions and discover how you can amplify your brand’s presence and drive measurable outcomes.
The Rise of Contextual Commerce
Looking into the future of consumer engagement, contextual commerce emerges as a transformative force, redefining the connection between shoppers and brands. This trend signifies a strategic pivot where personalized and location-aware shopping experiences are seamlessly woven into the consumer’s daily digital and physical interactions. Let’s examine the current shift and its expected evolution.
INSIGHT 04
Contextual Commerce Is the New Growth and Engagement Strategy
Future Business Strategies: Emphasizing Contextual Commerce
INSIGHT 04
EMBRACING
CONTEXTUAL COMMERCE
CURRENT APPLICATIONS OF CONTEXTUAL COMMERCE BY ADVERTISERS
Social Media Shopping Integration
37% of advertisers are already incorporating shopping functions into social platforms
Location-Based Tactics
32% engage customers through commerce opportunities when they are near physical stores
Contextual Advertising
31% use webpage content to inform and target their ads effectively
INSIGHT 04
FUTURE TRENDS
IN CONTEXTUAL COMMERCE
Social Media Shopping Function
34% intend to integrate further with social platforms
Proximity-Driven Offers
32% will capitalize on location-based commerce
One-Click Purchasing
Streamlining purchases for 31% of advertisers
Internet of Things (IoT) Commerce Initiatives
30% explore smart devices for seamless transactions
Refined Contextual Targeting
28% plan to enhance ad relevance based on webpage content
INSIGHT 04
CONSUMER SENTIMENTS ON IN-STORE TECHNOLOGIES
UNDERSTANDING SHOPPERS’ REACTIONS TO IN-STORE VIDEO CAMERAS
Comfortable
33% feel at ease with such cameras with millennials, Gen X, and the financially affluent leading this group
Indifference
29%, mainly from Gen Z, show neutrality toward video camera-based personalization in retail spaces
04 | Practical Application
Contextual commerce will become a cornerstone strategy by 2024. This trend suggests an industry-wide demand for more personalized, location-based, and platform-integrated shopping experiences that align closely with consumer activities and preferences. Although some consumers may have reservations, especially regarding in-store technology, contextual targeting represents a broader shift toward more targeted and frictionless interactions.
Immersive Retail Experiences in the Spotlight
The retail industry is set to further dive into creating immersive and personalized experiences for customers. Substantial investments are being made across various sectors to enhance the physical shopping environment. Additionally, it’s evident that retail stores will continue to play a vital role, especially those strategically located in suburban and neighborhood areas. This trend is driven by the continued importance of remote work for many families, leading to the flourishing of local retail establishments that serve their communities’ needs.
INSIGHT 05
INVESTMENT IN IMMERSIVE EXPERIENCES
Retailers
84% are investing in making in-store experiences more immersive and personalized
Restaurants
93% are enhancing the in-restaurant experience for customers
Banks/Credit Unions
95% are developing more immersive and personalized in-branch environments
INSIGHT 05
CUSTOMER PERSPECTIVE ON
PERSONALIZED IN-STORE ENGAGEMENT
PERSONALIZED OFFERS
Show interest, with higher enthusiasm among those who pause repayment on loans (58%)
QR CODE INTERACTIONS
Willing to engage for personalized coupons, especially loan holders, significantly higher for those with student loans (61%)
Tailored Content Preferences
Consumers express varied interest in receiving personalized discounts (46%), offers in aisles (42%), and product recommendations (28%) while shopping in a store.
INSIGHT 05
CONSUMER PREFERENCES
FOR IN-STORE VIDEO CONTENT
Practical Advice
Find Product-related Tips and Tricks Useful
Culinary Content
Enjoy Cooking Videos or Recipes
Demonstrations
Value Product Demonstration Videos
Style Inspiration
Are Interested in Lifestyle or Fashion Content
INSIGHT 05
Balancing Privacy
With Relevance
Navigating In-Store
Marketing Experiences
05 | Practical Application
A clear emphasis on immersive, personalized shopping experiences is emerging. While technology paves the way for tailored interactions, retailers must consider different comfort levels with in-store tech and privacy across all demographics. Explore more about this evolution, including the future of the grocery store, “headless retail,” and privacy regulations, in our podcast, “The Evolution of the Retail Environment”.
The Value-Exchange Creativity Challenge
As privacy concerns continue to shape consumer behavior, marketers are gearing up to innovate the way they offer value in return for consumer insights. The strategy to balance the expectation of personalized marketing with privacy is becoming a priority.
INSIGHT 06
Assessing the Significance of Data Strategies in Business
Crafting Value for Consumer Data Insights
69% of companies report having a well-developed strategy for offering value in exchange for personal data
28% are navigating challenges in execution
4% lack a current strategy
Company Prioritization of Value-Exchange Strategy
52% Very Important
36% Somewhat Important
10% Neither Important nor Unimportant
1% Somewhat Unimportant
1% Very Unimportant
INSIGHT 06
“What’s in it for me?”
INSIGHT 06
Keenness to Share Information for Offers
Open to Sharing
47% are willing to share details like email or ZIP code for special offers, with 18% strongly in agreement
Neutral
22% neither agree nor disagree with data sharing for benefits
Privacy-Conscious
31% are hesitant or opposed to sharing personal information for offers
06 | Practical Application
The drive to creatively provide value for consumer insights will be a focal point for marketers in the coming years. As companies fine-tune their strategies to align with consumer expectations, the emphasis is on delivering compelling services and rewards that respect privacy while enhancing the customer experience.
The Hype Machine Goes Into Overdrive
The marketing world is bracing for an acceleration in trend-driven hype, with the potential to heighten the ‘Fear of Missing Out’ among both consumers and brands. As the pace quickens, distinguishing between substantial trends and simply buzz becomes crucial.
INSIGHT 07
NAVIGATING THE IMPACT
of Emerging Trends
One-fifth of marketers express skepticism about recent trends like the metaverse, livestream shopping, and AI/ML, while a significant portion considers them an important part of current business strategies.
INSIGHT 07
Perception
of Trends by Marketers
07 | Practical Application
As the marketing industry confronts an intensified hype cycle, with new technologies and trends generating both excitement and concern, the real task lies in cutting through the noise to uncover actionable strategies that drive genuine growth and engagement. This is where Vericast excels. Visit our Insights Page to learn how our expertise and tools help you distinguish mere buzz from valuable innovations.
We’re on the brink of a new era
Agility, innovation, and genuine connections are the cornerstones of marketing success. The opportunities ahead are not just for growth but for shaping a market that values authenticity and personal touch.
Here’s to the marketers ready to turn these insights into action — the future is not just something to predict, but something to create. Let’s embrace the adventure with optimism and the confidence that our strategies will lead to thriving businesses and satisfied customers.
Vericast Industry Survey, September 2023 (n = 536), Grocery Drug Mass (n = 103), Retail (n = 102), CPG (n = 126), Restaurant (n = 103), Financial (n = 102).
Vericast Awareness-to-Action Study, August 2023 (n = 1,809) — Consumer Outlook
ABOUT TRENDWATCH
The report examines emerging trends in consumer behavior and their significant impact across various market sectors. It provides essential insights, reveals opportunities, and proposes cutting-edge strategies for navigating challenges and achieving success in today’s dynamic market environment. The Vericast Awareness-to-Action Study, conducted in August 2023, involved 1,809 respondents, and the Vericast Industry Survey, conducted in September 2023 involved 536 respondents. The participants, all at least 18 years of age and residing in the contiguous United States, were carefully selected through an online research panel.
ABOUT VERICAST
Vericast empowers businesses with customer data insights, fostering growth and forging deeper business-to-people connections. Through our data-driven strategies, cutting-edge technology, and expert team, we elevate the impact of marketing data to achieve excellence. Over 15,000 companies trust us to deliver their brand messages to audiences with precision and scale. Every day, Vericast delivers performance for our clients, guided by experience, privacy, and a passion to do better than the last campaign.
NXTDRIVE is a trademark of Vericast. All rights reserved.