2023 trends marketers need to know
The four trends that should be top of mind for advertisers and brands this year and beyond.
CES is where breakthrough technologies launch and innovators showcase their products, but beyond the connected gadgets and shiny AR/VR enabled vehicles, deep conversations were taking place regarding the power of purpose in our industry. Themes of responsibility and ethical marketing echoed across the main stage, client meetings, and discussion panels. Here are four hot topics that are impacting advertisers and brands:
Privacy is a growing concern for consumers
Consumer privacy continues to be a top-of-mind concern for the public over topics like crime and healthcare.1 They are becoming more conscious about whether their dollars support ethical businesses and reward brands that align with their values.
For example, consumers will reward brands that have responsible data practices with 23% more purchase intent, and they also will not buy from companies if they don’t trust how their data is used.2 People expect transparency on how their data is being collected, used, and shared and believe the ways their data is treated reflects how they’re treated as customers. Brands should prepare for this and consider having a retention period and eliminating data sharing with other companies.
Consumers make purchasing decisions based on environmental impact
There is a growing interest from consumers to understand how their purchasing decisions impact the environment, and they are seeking brands that are practicing sustainable business. In a survey of 8K consumers across 11 countries in Europe and North America, 42% of respondents aged 25-34 said they regularly or always base purchasing decisions on environmental impact.3
There are over 90 subreddits dedicated to environmental and sustainability awareness where discussions are taking place. r/sustainability has 349K members and top upvoted posts include eco-friendly brand and product recommendations and complaints against brands who have opportunities. One member created a Google Chrome extension that shows sustainability ratings of more than 1,000 brands. Another member posted about filing a complaint against a major coffee chain for using plastic tea bags, and another brand was praised for developing a recycling program for old razors.
“Reddit is a community of communities. Conversations on Reddit are happening that we think are new, but they’ve been happening on Reddit for decades. These conversations are going to lead real world change and real world impact. Communities on Reddit are coming together for things like this, things they want to see changes about the world, technology, and how we can actually have a better and more sustainable future.”
-Roxy Young, CMO of Reddit
Just as consumers are leaning in, agencies are also making efforts to drive decarbonization of media. To create a more sustainable ecosystem, agencies are looking to reduce carbon emissions of media placements by evaluating their footprint and leveraging offset planning tools.
Sustainability can be challenging, but it is also a business opportunity to capture environmentally conscious consumers and potentially increase profitability by incorporating sustainable operations, such as shortening supply chains or using renewable energy sources. Consumers are demanding sustainable and climate positive solutions, and brands and advertisers must innovate towards experiences and services that help consumers reduce their impact.
Consumers are more responsive to inclusive and diverse marketing and advertising
Diversity, inclusion, and authenticity are becoming important factors to consumers when it comes to brand consideration and loyalty. Much like sustainability, diversity and inclusion in a brand’s marketing strategies also influences the customer journey.
61% of consumers find diversity in advertising important, and 38% of consumers are more likely to trust brands that show diversity in their campaigns and engagement.4 In addition, more than half of Gen Zers will avoid a brand for the lack of diverse marketing and advertising.5 Brands should create campaigns that embrace authenticity and reflect the social, cultural, and physical diversity of their customers to create an inclusive and welcoming experience.
Web3 is an opportunity for brands who want to engage with customers in the digital age
Consumers are looking for direct and deeper connections with brands that have a purpose, and Web3 is shifting and strengthening the relationship exchange between consumers and brands. Web3 is a new concept of the internet that is built using decentralized networks based on blockchain technology.
There are brands already leveraging this technology and space for new opportunities for engagement. They’re creating unique digital merchandise, rewards, and exclusive experiences while building a community of passionate and loyal followers, proving that providing a meaningful experience with utility in an authentic way is the key to engaging with customers in this digital world. r/Web3 was created in 2009 and has 27.9K members. Between Feb-Jul 2022, there was a +69% increase in mentions of Web3 on Reddit versus the previous 6 months. Interest in Web3 is growing rapidly and brands and advertisers should start strategizing on how to leverage this technology and innovate the way they engage with their customers.
The takeaway: Drive consumer engagement through purpose driven standards
The key component across these four trends is driving consumer engagement through purpose driven standards. The data shows that these topics will continue to trend in 2023, but how will brands and advertisers pivot and innovate in this value-centric space?
CES has always served as a preview of emerging technologies and trends, and Reddit communities provide insights into the future. Through these communities, Reddit has an emphasis on what new tech trends are coming next. See how redditors are bringing the future forward.
1CividScience, “Getting Too Personal: Why The Best Brand Marketers Should be Celebrating and Driving - Privacy-Centric Marketing; Mood of America.” Jan 4, 2023
2 MAGNA-Ketch UM, “The Person Behind the Data.” n=2,750, Jul 12, 2022
3Descartes Systems Group, “Retailers: Sustainability is Not a Challenge, It’s an Opportunity.” n=8,013, Sep 12, 2022
4Forbes, “Data Shows Consumers Want Diversity in Marketing - Why Many Brands Struggle to Get It RIght And How to FIx.” Feb 2020
5Alida, “2021 Global Trends Report: Customer Experience.” Oct 2021
Mastercard, “Purpose, Passion & The Future of Marketing.” Jan 2023
MediaLink, “Leveraging Technology For Social Impact And CMO Conversation: The Power of Purpose.” Jan 2023
McKinsey, “The rise of the inclusive customer,” Oct 2021