The advertising world is at crossroads today. There's a major consumer shift, the digitalization of commerce, and the elevated vying for consumers' attention that it's forcing businesses to adjust their marketing strategies.
2020 highlights the idea discussed in advertising forums and conferences: Generation Y, the sleeping giant, is now a force to reckon with. Marketers who ignore millennials in their strategies are doomed to fail.
Marketers need to simplify their advertising messages and tweak how they communicate with their audience. What do we mean by this? Change the way they speak and present themselves, especially on social media networks.
Over the past 5-10 years, qualitative changes have also occurred in the audience over 55, which most marketers previously considered to be of little promise. However, now this social group includes those who until recently were 45-50 years old. Despite their slightly increased age, they remain a very active and quite reliable part of the population, adapting to digital technologies.
Marketers have ignored this part of the population for years, lumping them in the 18-55-year-old bracket. Brands today are taking notice, knowing that every dollar is worth its weight in gold. The situation has changed dramatically, all the more logical, given the US population's gradual aging.
The increasing age of potential customers automatically makes the universal approach of advertising and marketing campaigns less effective.
A few years ago, many advertising campaigns looked generic. The cookie-cutter approach is crumbling right before our eyes. Today, we see a diverse approach when it comes to reaching out to an audience. Advertisements are created with the target demographic in mind.
Marketers dig deep into their consumers' background to understand how they can produce engaging ads on multiple channels. These customizations allow you to create more targeted advertising campaigns.
The internet's role in our lives is rapidly growing year after year. Mobile app users are estimated to be in the billions. More than 50% of Americans read product reviews on the internet before purchasing them from a seller or brand's website.
Marketing strategies should account for the growing trend of digital technologies. Mobile devices have taken over desktops when it comes to accessing the internet. There's also a difference in consumer behavior when people search on their smartphones versus those on laptops.
Bank on micro-influencers
Another growing marketing trend is the active work of brands that partner with local opinion leaders, influencers, and bloggers. But advertisers are also looking into the world of micro-influencers as new sources of effective partnerships. Micro-influencers are content creators with 1,000-10,000 followers or subscribers.
Many global cosmetic brands prefer spending their marketing budgets on micro-influencers because they provide a better return on investment than macro-influencers. This is not surprising. Micro-influencers are more affordable than macro-influencers. Also, "smaller" influencers have better engagement with their audience, which creates trust and reliability.
If it were not for the coronavirus, micro-influencers are on par to reach $10B in market value from $8B in 2019.
Life is a game
The gaming industry and its growing community is another promising niche for digital marketing. This is a massive audience that advertisers need to tap into. The gaming industry and its subsequent community also have viral bloggers or YouTubers with subscribers between 10,000-100,000s. Some even have more than a million subscribers.
The COVID-19 crisis and the cuts in advertising budgets intensified the struggle among advertising agencies, some of which could not withstand the economic impact are forced to close their doors. At the same time, advertisers maintain a steady demand for their services and expertise, especially companies and agencies capable of providing high-level services to customers, even today feel quite confident in the market and continue developing.