If the IPA’s latest Bellwether budgets data is right, 2024 could be a bumper year for marketing. The survey found UK marketing budgets for Q4 2023 hit their strongest level in almost a decade, indicating – the IPA states – “a shift from caution to quiet optimism”. Direct marketing did even better than other channels, notching up its best performance since 2005.
No doubt several big events due to take place this year are focusing marketing and fundraising minds and budgets: the Paris Olympics and Paralympics, football’s Euro 2024 Championships in Germany and national elections in the UK, US and beyond among them.
But it’s also worth remembering that the UK is still battling to stave off what economists predict will be a shallow recession. Consumers and donors are cautious too as they continue to struggle with the aftershocks of high inflation, interest rate rises and the overall cost-of-living crisis.
For that reason, marketers and fundraisers must take a strategic approach to choosing the right channels in which to spend their budgets. Here’s our take on some of the trends to be aware of throughout 2024.
Digital/technology – There are likely to be developments in five key areas:
– Twitter exodus. With big-name brands stopping advertising on X, it’s time to consider the Fediverse instead; a collection of community-owned, ad-free, decentralised and privacy-centric alternatives, such as Mastodon
– Automation. Rising demand for charity services means it’s imperative to be able to do more with less. Expect to see automation ‘middleware’ platforms like Zapier.com and Make.com becoming more popular to automate time-consuming tasks. Charities should perform workflow audits to identify automation opportunities.
– Agents. These AI personal or team assistants can be given tasks to complete autonomously. If charities aren’t already experimenting with generative AI they should get started. Agents, when they arrive, will change the way individuals and organisations interact.
– New email rules. From February Google and Yahoo will demand new, more stringent requirements for email authentication, consent and engagement, or they may stop delivering your organisation’s email. There’s a small window of time left to act.
– Online payments. Instant bank payment, already in use through Just Giving, will lead change in this area, essentially giving users the option to make a donation using their banking app rather than a credit card, for example. Cheaper than credit card fees, it’s cost effective for charities and offers instant bank-to-bank payment.
Direct mail – There are good reasons to think that mail will be making a comeback in 2024:
– Digital advertising is under pressure from media cost inflation, measurement difficulties (in the face of changes to cookies rules) and the sheer scale of competition.
– Direct mail grabs the attention of Gen Z and Millennials who are suffering from digital overload. It also engages older folk who are financially insulated from cost-of-living pressures. Baby Boomers are also emotionally the most likely group to donate to charity.
– Without an increase in average gift values, low ROI for many channels will toughen the task of making acquisition pay. Direct mail remains the channel that provides the best average gift value.
– In the US, charities are using AI for greater personalisation of charity communications to the individual donor, as well as a reduction in volumes without harming response. Expect the UK to join the party this year.
– The UK’s Data Protection & Digital Information Bill (DPDI) is set to make contacting cold audiences less restrictive. That’s great news for organisations keen to test approved data lists with direct mail campaigns.
DRTV – Developments in technology and production techniques will enable lower-cost shoots. Virtual filming, the increased role of drones and other emerging approaches are bringing greater efficiency to campaigns from both a cost and practical point of view. These developments will, in particular, boost charities that need to create new content and imagery for ads and social campaigns after a couple of years ‘recycling’ footage during and immediately after the pandemic.
Fundraising – An election year brings added social media bombardment. Consumers may find it hard to escape the haze of political campaigning and simply miss your brand’s messages. Charities must keep their cause proposition clear and focused, telling a compelling story, and steer well clear of any political or social ambiguity. The speed of social media can punish the smallest transgression.
Alongside clarity of information two other aspects of fundraising will grow in importance:
– Understanding your data and ensuring it’s current, giving you insight into supporter profiles, including donor behaviour and motivation
– Agility and bravery. Continue to invest in campaigns to stay top of mind, rather than falling behind rivals
For sure, this year offers marketers and fundraisers some major opportunities. If budgets really are set to rise, brands, charities and their agencies must seize the chance to make gains by wisely choosing campaign channels to deliver compelling communications.
John Eversley is managing director – agency at WPNC and Vicky Reeves is managing director of goDonate
