The landscape of digital marketing is ever-evolving, and staying ahead of the curve is essential for success. The Dentsu team recently conducted an in-depth study involving 600 Chief Marketing Officers (CMOs) from the United States and Canada. Their research reveals where CMOs plan to invest in 2024 to reach consumers effectively. Spoiler alert: Bloggers need to gear up for a tough year, while game creators can breathe a little easier.
The Study and Its Scope
The Dentsu study compared CMO plans with data collected over the previous 12 months. Below, we delve into the detailed findings and explore the investment trends for 2024.
Social Commerce: The Future of Online Shopping
Social Commerce vs. Social Media Marketing
Social commerce should not be confused with social media marketing. While the latter involves using social networks to drive traffic to external online stores or company websites, social commerce integrates the entire shopping experience within the social platform itself. From product discovery to purchase, everything happens on the social network.
Investment Insights
The Dentsu study shows that 35% of CMOs plan to invest in social commerce in the next 12 months, a 5% increase from the previous period. This indicates a growing trend as more consumers prefer seamless shopping experiences without leaving their favorite social media apps.
Live Events vs. Online Meetings
Shifting Focus to Live Events
CMOs are increasingly focusing on live events such as conferences, sporting events, and concerts. The share of marketers planning to invest in this area rose by 5%, from 30% to 35%.
Virtual Events Declining
Conversely, the number of professionals planning to invest in virtual events has decreased by 5%. However, interest in both live and virtual events remains high, reflecting a balanced approach to event marketing.
Influencer Marketing: Evolution and Trends
Decline in Influencer Marketing Investment
The Dentsu chart indicates a slight decline in the share of CMOs planning to invest in influencers, from 36% to 31%. Despite this, influencer marketing continues to evolve.
Global Trends and Predictions
According to PQ Media, global influencer marketing spending has been on the rise since 2017. In 2022, the industry saw a 21.5% increase from 2021, totaling $29.14 billion. The trend is expected to continue, with a predicted 17% increase by the end of 2023.
Key Trends from HubSpot
A report by HubSpot, which analyzed data from 1,000 marketers worldwide, highlights several trends:
- Social networks are becoming increasingly important.
- Marketers are shifting from celebrities to micro-influencers (those with audiences up to 100,000).
- Short videos yield the highest ROI.
- Audiences favor humorous content.
- Redistributing the same content across platforms is becoming less effective.
- Active audience engagement is crucial for success.
In-Game Advertising: A Booming Market
Market Growth
Statista, a German market research firm, reports that the global in-game advertising market is expected to generate over $94 billion in revenue by the end of 2023. Projections indicate a 10% annual growth rate from 2023 to 2028, reaching $157 billion.
CMO Investment Plans
According to the Dentsu report, 18% of CMOs plan to invest in in-game advertising, a 3% increase from the previous 12 months. This reflects the growing recognition of gaming as a lucrative advertising platform.
Other Key Investment Areas
Retailer and Distributor Advertising
CMOs are also looking to invest in advertising on retailer and distributor platforms, with interest rising from 27% to 28%. This includes various methods such as articles, contextual ads, and targeted advertising.
Original Content Production
The production and sponsorship of original content, such as TV shows, movies, podcasts, and radio shows, is another area of interest. About 27% of marketing directors plan to invest in this field.
Live Broadcast Content Integration
Investment in integrating advertisements into live broadcast content remains steady, with 26% of CMOs planning to continue this strategy.
Bets on AI in the Media Space
AI for Customer Engagement
The Dentsu study reveals that 49% of CMOs plan to leverage artificial intelligence (AI) to attract customers. AI will play a significant role in developing media strategies, creative content, and data analysis.
Audience Targeting and Segmentation
Around 45% of CMOs will use AI for audience targeting and segmentation, highlighting the technology’s importance in personalizing marketing efforts.
Challenges Facing CMOs
Technological Integration
Integrating new technologies such as AI and AR into marketing strategies is time-consuming and costly. Effective implementation requires significant investment in terms of effort, time, energy, and money.
Content Generation
Generating engaging content is becoming increasingly challenging. In the US, the SAG-AFTRA strike in 2023 significantly impacted the film and television industry, complicating content production efforts.
Brand Control in Social Media
Maintaining control over brand reputation in the creator economy is difficult. With numerous content creators operating under varying regulations, managing brand perception is a significant challenge.
Media Criticism
The media often faces criticism for allegedly contributing to mental health issues, such as addiction and depression. This scrutiny affects marketing strategies and public perception.
Adapting to Market Changes
Despite these challenges, marketers are adept at quickly adapting to market changes. According to the Dentsu study, 38% of participants are exploring new platforms and promotional channels. Meanwhile, 47% believe in monitoring the situation and avoiding hasty decisions that could lead to drastic changes in their marketing strategies.
Conclusion
In 2024, CMOs are focusing on areas such as social commerce, live events, and in-game advertising while navigating challenges like technological integration and content generation. Marketers must stay agile and adaptable to succeed in the dynamic digital landscape.
