The Marketer’s Toolkit: what marketers need to know to succeed in 2023 

Ninety-five percent of marketers globally expect to be affected by economic recession, according to a survey for WARC’s Marketer’s Toolkit 2023, an annual report that identifies the most important market trends that marketers should focus on to help drive their business in the year ahead. 

Context 

End-of-pandemic optimism at the start of 2022 faded quickly as the war in Ukraine turned the world on its head. The invasion has had a transformative impact on energy prices, inflation and the cost of living around the world. The IMF is forecasting the weakest growth in twenty years, except for the global financial crisis and the worst phase of the COVID-19 pandemic. 

Five themes for 2023

The following key themes emerged from WARC’s survey of 1,700 marketers worldwide for The Marketer’s Toolkit: Global Trends Report:

1. Marketing in a cost of living crisis: While almost all marketers are concerned about the impact of the economic crisis, more respondents are planning to increase spend than last year, across both brand and performance. However, 36% are planning to cut marketing investment, despite evidence from prior downturns suggesting they should maintain spending levels.
2. Price vs. planet: a false dichotomy: 37% of represented companies expect to continue with their sustainability objectives despite the economic situation, while 35% foresee only “some small compromises.” Brands are also challenging the idea that eco-credentials necessarily result in price increases, with examples of local sourcing and use of the circular economy potentially lowering costs.
3. A reckoning for Big Tech: The majority of advertisers (62%) agree that a range of changing market dynamics are forcing strategic shifts from the tech giants, and respondents concerned about the dominance of the ‘duopoly’ have halved over the past two years. More respondents plan to decrease investment in Facebook than increase it for the first time in six years, which suggests that brands are resetting their relationships with Big Tech.
4. The clash of demand, delivery and disruption: Supply chain disruptions are expected to hit brands in 2023, but not evenly. Sixty percent of marketers anticipate non-trivial supply chain disruptions, but just 26% expect they will be significant or severe. This rises to one in three amongst European respondents. And 52% felt challenger brands would be the hardest hit, as they struggle for profitability. Marketers have an important role to play in managing and minimizing supply chain disruption
5. The era of ‘bubble up’ culture: Media and audience fragmentation was the second biggest concern in our survey, with 34% of respondents picking it. Among North American respondents, it was the highest ranked. Two-thirds of marketers expect to focus more on platforms that allow them to stitch together interest-based communities to create reach in a fragmented media world. Other channels with deeply embedded communities such as gaming and influencers/social media content are also set to attract more investment from advertisers next year.

A sample version of the global report featuring the first chapter, is available to read here.

The full series, available to WARC subscribers, will include the following reports:

• The Future of Digital Commerce (launching December 2022)

• The Future of Media Report (launching January 2023)

• The China Toolkit (launching January 2023)

The reports will be complemented by a series of podcasts. 

Shiseido innovates in consumer engagement

With the consumer journey constantly facing disruption, Shiseido is always testing and expanding the use of new channels in order to keep up – an example that other brands can emulate to transform consumer relationships. 

Why it matters

To build loyalty among younger and increasingly sophisticated next-generation customers, brands must continually innovate their consumer engagement efforts to connect with and unify them.

Takeaways

• The use of virtual humans is a revenue generator, with such virtual influences garnering more engagement than actual humans.
• As engagement pivots to connect with consumers, the shift must move alongside emerging technologies transforming commerce.
• Social commerce is key to innovation, building efficacy and community on social media to drive commerce.

Key quote

“We innovate not just in product development, research and development but also in the way that we engage with our consumers” – Juliana Chu, Vice President of Digital and E-commerce for Asia Pacific at Shiseido.

Brands can tap the Robux spending trend

Younger consumers under the age of 13 are strengthening their financial literacy through gaming app Roblox by using its virtual currency Robux, a development that opens up new possibilities for brands looking to reach the pre-teen demographic.

Why it matters

While the established method for reaching a younger audience was through advertising, the current emphasis on establishing a strong presence on this 3-D online platform signals a shift in marketing strategy. 

Anecdotal evidence suggests children are happy to receive pocket money in the form of Robux. Brands can tap into this spending by developing effective games and creative items that users can pay for using virtual currency. 

Context

A 2021 Forrester Research study reported that children aged 12 to 17 spent around $92 monthly online. Most of that money was allocated to video games, virtual goods, clothing and accessories.

Brands such as Tommy Hilfiger, Nike, Spotify, Gucci and Chipotle have already demonstrated success on Roblox. Gucci’s Gucci Town, for example, received roughly 33 million visits, and Chipotle’s Burrito Builder has received over 17 million visits. 

Using Robux

• Kids have the option to spend a virtual currency called Robux on products featured in Roblox games. 
• It’s evident that kids are not new to spending money online, and brands can leverage this shopping habit to their advantage on Roblox. 
• Brands have tailored their messaging to younger consumers in creative ways on Roblox. Walmart, for example, allows kids to obtain virtual coins for accessorizing their avatars, while Nike allows users to pay for virtual sneakers using coins.

Final thought

“We have just scratched the surface of what it means to be a thriving and monetizing economy in these 3-D immersive experiences” – Manuel Bronstein, Roblox’s chief product officer at Roblox, speaking to the Wall Street Journal.