The new decade will bring with it new technology and new ways of doing business. From economic shifts to new marketing trends, 2020 will surely be a roaring time.
They say history repeats itself—well, let’s hope not. The 2010s were monumental in regards to economic growth. The bounce back from the 2009 recession was steady, with the end of the decade seeing mind-blowing GDP. The economy’s growth has begun to slow down, and although economists are confident there will not be a recession in 2020, the economy is showing signs of plateauing. The predicted GDP for 2020 currently stands at 2.0 (1).
What To Do
A change in the economy does not mean consumption comes to a halt. It means consumers alter their purchasing behavior to favor necessities and penny-pinching. As a business, it is important that you think of the customer first. For example, if you are in the automotive industry, begin building sentiment around your repair services and customer loyalty programs. Consumers won’t be looking to buy a new car during tough times, they will be looking to maintain one. This concept applies to a lot of businesses. Don’t stop prospecting by any means, but definitely observe how the consumer market will behave and how to accommodate. “Working with what you have” services will be more prevalent.
Digital Ad Spend Trends
2019 year-end ad spend total is predicted to be up 19% from last year. Financial Services are increasing their digital budgets, particularly in mobile to target Millennials, taking #2 in digital ad spend. At the same time, automotive ad budgets are constrained by macroeconomic conditions like tariffs, climate regulations, generational purchasing behaviors (hint, hint: fewer Millennials are buying cars than older generations), and emission standards. Furthermore, Travel is predicted to surpass CPG & Consumer Products (3).
What To Do
Blending together economic trends with the fast-paced marketing trends is a good way to better understand how/when/where to approach your customers and make sure your product resonates. Performing maintenance research on your industry will give a better vision to your future objectives, along with the expertise to tweak current ones.
There are A LOT of trends happening in the marketing world. It’s official: machines are beginning their takeover. So, don’t forget to watch the early 2000s end-of-the-world movies to brush up on what to do. Just kidding! But automation and machine learning are HUGE for 2020 marketers. Here are some of our favorite trends for marketing in 2020:
Showing relevant ads to consumers through AI and automation.
→ 90% of the 1,000 people surveyed said they find personalization appealing and 80% said they’re more likely to do business with a company that offers personalized experiences (4).
A computer program or an artificial intelligence which conducts a conversation via auditory or textual methods to convincingly simulate how a human would behave as a conversational partner.
→ 46% of Internet users in the US would rather receive online support from a live person, even if the chatbot can save them a lot of time. Check out this cool interaction with a chatbot from RayBan. (5)
Increasing a company’s credibility by partnering with local influencers that have the right amount of followers but not enough to make them impersonal (1,000 to 90,000).
→ 70% of Millennial consumers are influenced by the recommendations of their peers in buying decisions. Research shows that micro-influencers have 60% higher engagement rates than traditional celebrity influencers. You can also expect to see a 22.2% increase in average weekly conversions from this marketing tactic. (6)
The use of networking websites such as Facebook, Instagram, and Twitter as vehicles to promote and sell products and services.
→ 55% of online shoppers have bought a product directly through a brand’s social post. (7)
Investing in current customers as a growth strategy.
→ it costs 4x to acquire a new customer than retention currently one. (8)
It’s time to embrace a new decade. Roaring ‘20s take two.