2020 is about to end, leaving an uncertain world for brands in its wake. The year that ends was the best example that in the world of marketing nothing is written.
In a year in which events like the Olympics, the US elections and some other events promised to raise revenues, the reality is that the forecasts collapsed without the end of the first quarter of the year.
The numbers don’t lie. Data recently released by WARC, indicate that advertising investment in the world will fall -8.1 percent this year to reach 563 billion dollars.
When the decline is read by region. North America will be the one that will have the least effects, since investment in that region will barely decrease -3.7 percent. On the other side of the coin is Latin America, which together with the Middle East will be the two most affected regions with falls of -20.7 percent and -15.1 percent, respectively.
These figures serve as a preamble to how challenging 2021 will be, a year in which while there will be many opportunities, there will also be challenges that few brands will be able to successfully overcome.
In principle, it is fair to recognize the consumer that the pandemic will stop, which will maintain many of its features but will have characteristics that will not be so simple to handle.
Along these lines, Mindshare has identified five insights that will be key to connecting with consumers in the new normal:
An affected consumer: Worldwide, three out of ten people claim to be “very affected” economically by the effects of the health crisis.
Young generations, in bankruptcy: When this feeling of financial affectation is read by age groups, the youngest are said to be especially impacted.
Boredom worry: Despite the fact that in March more than six in ten people said they were concerned, it has now stabilized at just over 50 percent. The figure goes in the opposite direction to the feeling of boredom. In the last month alone, it increased from one in five people to one in four.
Online on the rise: Since the beginning of the pandemic and until March, the number of consumers who made purchases online “more than before” reached 31 percent. Now the number has risen to almost one in two.
Eager for the new normal: In current times, six out of ten people said they were eager to get back to normal.
Understanding and serving this new consumer will be an issue that will occur in the midst of a context characterized by large macro issues that will be especially challenging for the marketing world.
In this sense, from WARC they share five great challenges that must be kept on the radar within marketing teams to face a new year with great promises for those who know how to find them:
In the middle of the recession
The budgets in the middle have been radically reduced and now the purchasing power has become a key issue for survival.
Along these lines, marketing building themes seem to be on hiatus, while investment in performance marketing is thriving.
Brands, therefore, would be obliged to innovate in their creative solutions that allow them to have a distinction in the post-pandemic market without losing sight that, now more than ever, sales are crucial.
Response to e-commerce
Hundreds of studies around the world make it clear that the pandemic accelerated the growth of electronic commerce in ways never seen before.
Brands, in a perhaps utopian way in several cases, have responded to this trend in what could be called a first stage.
And it is that to grow in this field it will not be enough to have an online store. Issues such as distribution, sourcing and packaging will translate into key points of contact with the consumer.
Although mobility restrictions have been relaxed, it is true that there is still a long time before this aspect is fully restored.
In this way, the lifestyle for much of 2021 will be in-house. In other words, life at home will take on a new importance and brands will have to discover how and where to become a companion in this facet of the consumer.
The economic interruptions will continue throughout 2021, which will be accompanied by new movements similar to that of Black Lives Matter to those that are already classified as anti-vaccines from now on. To this will be added some political tensions that will come from great changes in said wait.
The sum of these components seems to be a perfect storm that, according to some specialists, would be a great opportunity for marketing in the task of leading the response to this volatile market that will demand the transformation of businesses.
Bet on well-being
Health and wellness will undoubtedly remain the focus of the market. Many brands are moving into this segment to address emerging consumer priorities. Brands must carefully consider their offerings to ensure inclusiveness and trust.