Data-driven strategies will be at the forefront of business growth plans over the next three years, with first-party data, new privacy regulation, commerce convergence, and the rise of conscious-led consumerism driving the corporate agenda in the post-pandemic world.
So says a new report by Omnicom Media Group UK’s Media Intelligence Unit, which analyses a whopping 75 evolving themes to predict which will rise to prominence by 2025, and how significantly they will scale.
The report, “Accelerate: The Future of Media”, has been developed to allow business leaders to chart opportunities and risks, and comes at a time that is defined by disruption and renewed economic activity. It has been compiled with the expert guidance of City analysts, senior media planners, strategists, and investment personnel.
Key trends that will impact business decision makers include:
First party data becomes a first priority
There has been an explosion in opt-in first-party data as consumers have turned to digital during the pandemic, and this will become even more significant in the post-cookie landscape, the report predicts.
Looking beyond direct-to-consumer sales channels, a closer view of customers will open up new – and ethical – opportunities for personalisation and for closer targeting to a postcode level. Advertisers will explore new ways to ingest their first-party data into media owners’ ecosystems for more efficient brand to local campaigns, using regional media and targeted programmatic TV ads.
New era of industry regulation
The EU’s GDPR represented a seismic shift for privacy, however, Brexit has enabled the UK Government to create its own legislative programme, with the risk multi-regional businesses will need to operate in a disjointed regulatory environment.
UK businesses will need to prepare for a raft of regulatory changes over the next three years, from new data laws and policies on foods high in fat, sugar and salt, to AI, fuel and lending. Despite these challenges, there will be opportunities to gain a competitive edge for the brands that navigate policy changes quickly and effectively.
An evolution in commerce
Commerce achieved five years’ worth of organic growth within the first 12 months of the pandemic, prompting increased sophistication and better use of first-party data. By 2025, this will lead to more direct transactions within media and social platforms – rather than just retail websites and apps – creating radical new paths to purchase.
The rise in conscious consumerism
Concerned by the carbon and social impacts of their purchase decisions, conscious-led consumers are reshaping supply and demand. Driven largely by younger demographics, they are also more inclined to punish companies for poor corporate social responsibility standards.
The importance of this theme has been thrown into stark relief by just how quickly the corporates have responded to the Ukraine crisis, businesses cannot afford to be seen to put profit over ethical standards. The significance of ESG is only set to increase, and will become a common marketing KPI by 2025.
Other significant themes – charted through a matrix which shows the likelihood of when and to what degree they will scale – include the roll-out of 5G, the increasing importance of influencers in purchase decisions, and a bigger role for voice-search in product discovery.
Meanwhile, the report examines how macro-level trends – including wage inflation, European conflict, the procurement squeeze and social fragmentation – will influence business strategy, and how leaders can act now to counter their effects.
Report author Bhavin Balvantrai, who is chief market analyst at Omnicom Media Group UK, said: “We’ve taken a forensic approach, and input from a broad range of experts, to map the most significant emerging trends likely to impact consumption habits and business performance at a crucial stage of economic recovery.
“The fact we chart 75 separate themes shows just how dynamic the business environment is becoming – and how vital it’s going to be for business leaders to be able to navigate such a disruptive commercial landscape.
“As the economy cranks back into gear, visibility of the key moveable parts is essential, so that decision-makers can identify which structural changes will matter to their organisation, and where investment and strategy should be focused over the medium term.
“Businesses can also use this intelligence to limit risk and seize upon the many and varied opportunities that are presenting themselves as we look to life beyond the pandemic.”
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