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Navigating the Future: Marketing Trends of 2024

We have just finished celebrating the arrival of the new year and it is therefore very important to know what trends will characterize this 2024. Surely the new year marks an exciting era for marketing, where innovation and adaptability become crucial. In this article we explore together the recent trends with some data provided by the research institute Kantar.

 

Trend 1: The Rise of AI

We understood that artificial intelligence would increasingly become part of our lives and that is why we have been discussing the topic for some time now in our LFM blog. Kantar, an important trend analysis company confirms it and places AI at number 1 as the main trend of 2024. So what should we expect? We must certainly imagine a world where marketing campaigns are guided by superior intelligence, capable of analyzing data in real time and personalizing each message to its recipient. AI is already transforming the way we interact with consumers, offering an unprecedented level of personalization and efficiency. According to Kantar, approximately 67% of marketers trust the  potential of Generative AI in marketing processes . So what? It is becoming increasingly important to integrate the use of AI into your strategies and learn to set up brand strategies that take it into account!  

 

Trend 2: Consumer-centric approach
 
It certainly doesn’t seem like news, we’ve been talking about a “consumer centric approach” for years now, and let’s face it, this word is often heavily overused. So? What should we really expect to be different next year in the relationship with the end consumer?  What we are observing is a significant evolution in consumer behavior, who are becoming increasingly critical and selective about the brands they choose to support. In Italy, as highlighted by Kantar, a significant percentage (84%) of consumers, compared to the global average of 80%, are actively engaged in purchasing from companies that support causes that are dear to them. This data highlights a fundamental change: consumers not only look for quality products, but also want their purchases to reflect their personal values ​​and contribute positively to relevant social issues.
 

In this context, brand management becomes a delicate and multidimensional issue. It is no longer just about communicating effectively or innovating products, but also about aligning the entire customer experience with these new values. Companies must carefully navigate reputational risk, ensuring that every aspect of their business – from communication and product innovation to customer experience – is in tune with market needs and expectations.

A crucial aspect of this evolution concerns pricing. Consumers do not simply want to pay more for a product; they seek added value that justifies the price. This value can be found in the brand’s social commitment, sustainability, corporate ethics, or a combination of these elements. Companies must therefore ensure that, while supporting important causes, they do not lose sight of the quality and value of their product and the experience offered.

The good marketer who has learned for years to put consumers’ needs and desires first will have to do it even more in 2024, with the difference that today he has many more tools available for careful listening and to create greater empathy, vital tools that can transform a brand from a simple seller to a trusted partner in the lives of its customers. Guess what these additional tools are? Yes, once again we are talking about artificial intelligence that today allows us to process a previously unthinkable amount of data and consequently structure strategies that are truly “tailored” to the customer. There are those who are starting to talk about a liquid brand , or a remodeling of the brand that becomes almost a magmantic entity that changes shape and messages depending on the consumer in front of it.
 
 
Trend 3: Green is the New Black
 
 
Sustainability is no longer an option, but a necessity. We explore how companies that embrace eco-friendly and ethical practices are gaining the respect and loyalty of consumers, becoming pioneers of positive change. But where does this trend come from? The reasons that are pushing this trend to emerge more and more are  a growing awareness of the environmental impact of industry and consumption. News about climate change and pollution are in fact influencing consumer choices. Added to this is certainly the greater access to information thanks to the internet and social media, which makes consumers increasingly informed about companies’ practices and enables them to easily share information about unethical companies. And finally, an increasingly deep-rooted value of ethics :

 Generation Z and Millennials tend to look for deeper meaning in their purchases, favoring products that reflect their personal values. These two demographics, in particular, show greater concern for the environment and social issues than previous generations. They are more likely to buy from brands that demonstrate a real commitment to reducing environmental impact and promoting ethical business practices. Kantar tells us that  42 % of companies now incorporate sustainability metrics into their KPIs, compared to 26% in 2021. This trend highlights the integration of profit, planet and people into the business strategy of many companies that will move to the ideation and operational planning phase in 2024.

FROM E 2023-12-29 18.02.10 - An evocative and powerful image symbolizing sustainability as a fundamental necessity in the modern world. The image should visually capture the essence

 

 

Trend 4: Premiumization
 
We are going through a period characterized by high inflation, unbridled competition, and shrinkflation and discounts to maintain market share. The downward price lever has proven to be a way for many companies. Kantar data instead demonstrates that premiumization is instead a valid alternative for 2024 to be successful. In the Kantar BrandZ 2023 global ranking, 52% of brands have reached the top tier of the strategic pricing model, compared to 42% in 2020. In 2024, we should expect more “ premiumization”, that is, a greater presence of strategies aimed at  elevating the positioning of a product or service , increasing its perceived value and, consequently, its price. This does not simply mean making a product more expensive, but improving its quality, design, user experience and brand perception. This trend has its roots in a series of motivations, let’s see them together:

First, the Search for Unique and Quality Experiences : Consumers, especially in the middle and upper income brackets, are increasingly looking for products and services that offer a unique and high-quality experience. It is not just about the physical object, but the entire package, which includes customer service, the shopping experience and the uniqueness of the product. Added to this is Brand Differentiation : In a saturated market, premiumization allows brands to stand out from the competition. Offering a premium product or service can help create an exclusive and desirable brand image. Third, and inevitable, Increased Profit Margin : Premium products generally have higher profit margins. Even if sold in smaller volumes than standard products, premium products can generate significant revenue due to their higher price. Fourth, Customer Loyalty : Premium products tend to create greater customer loyalty. When consumers perceive the added value of a premium product, they are more likely to remain loyal to the brand.


Trend 5: AI-Powered Attention Metrics

The ability to capture consumer interest has become a critical success factor for marketing campaigns. However, 62% of marketers still prefer to use non-rigorous behavioral metrics, such as clicks or viewing duration. We are seeing an increasing use of attention KPIs, both in the pre-test phase and in post-campaign analysis, with the help of artificial intelligence . This trend is expected to continue to grow in 2024, giving marketers more effective measurement tools for digital advertising at scale.

 

Trend 6: Beware of Challenger Brands

In the FMCG sector, we have seen significant growth driven by emerging brands , which are successfully challenging traditional ideas , consumer needs and established practices, often eating into the market share of more established brands. In fact, 48% of Italian consumers, according to Kantar, show a preference for purchasing smaller brands when possible. As a result, major brands must focus on being more agile, speeding the time to market, putting the consumer at the centre of their strategy and adopting data-driven decision making to keep pace with these emerging brands.

 

Trend 7: AI-Powered Search
 
The online search space is undergoing a radical transformation, driven by the development of artificial intelligence and advanced language models. This evolution has led to search engines becoming the fifth most influential touchpoint for brand impact, up from the eleventh position they occupied in 2018. In this rapidly changing environment, it is becoming crucial for brands to update and optimize their digital strategy and online content. It is essential to ensure that they are visible and relevant where consumers are looking for information, as search behavior and the ways in which they interact with search engines are evolving. This requires a more sophisticated and targeted approach, beyond traditional SEO practices, to effectively capture the attention and interest of consumers in the ever-changing digital ecosystem.
 
Trend 8: Retail and Advertising a Winning Combo
 
The combination of retail and advertising is emerging as a winning combination, especially in an era characterized by shifts in consumer behavior. Retail media, or platforms that combine retail and advertising, is emerging as an indispensable channel for effectively engaging shoppers. According to data provided by Kantar, a significant percentage (56%) of retail media professionals in both the United States and Canada plan to increase their investment in this space, and a similar trend is expected to occur in Europe.

In this scenario, it becomes crucial for industry players, both buyers and sellers, to have advertising effectiveness metrics that are independent of traditional media. This approach allows them to optimize the performance of sales and promotion channels, and to develop more targeted and effective advertising campaigns. With the help of these metrics, brands can better understand the impact of their campaigns on purchasing behavior and customer loyalty, adapting advertising strategies to create more engaging and personalized experiences. In short, investing in retail media is a strategic step for brands that want to remain competitive and relevant in today’s rapidly evolving market environment.

 

Trend 9: Back to Innovate 

Tackling the challenge of the “Death Valley” of innovation means overcoming a period of creative and technological stagnation that many brands have been experiencing in recent years. It is proven that brands recognized as innovative register three times higher growth than those perceived as less innovative. However, currently, we are witnessing a significant decline in innovation levels, a trend that has taken hold in the post-Covid period.

In this context, innovation becomes crucial for brands that aim to define their growth trajectory in 2024. Being at the forefront of innovation is not just about technology or new products; it is also about adopting new business models , exploring new markets , and developing original and engaging marketing strategies . Innovation can pave the way to acquiring new consumer segments, especially those who are looking for experiences and products that break from the norm.

Furthermore, innovation contributes significantly to brand value. A company that demonstrates being at the forefront and responsive to market changes and consumer needs can build a solid and lasting reputation. This is essential in a market where consumers are increasingly informed and demanding.

To emerge from the “Death Valley” of innovation, brands must therefore be proactive, experiment boldly, and be willing to take risks. This means investing in research and development, collaborating with startups and idea incubators, and remaining open to new perspectives and methodologies. 

 

Trend 10: Clear and DNA-aligned positions

In 2024, brands’ success will be strongly influenced by their ability to take clear and coherent positions on global issues, closely aligning them with their corporate DNA and maintaining these positions over time. Consumers are becoming increasingly demanding about the authenticity and integrity of brands, looking for companies that not only speak out on important issues, but act in a way that is consistent with the values ​​they claim to stand for.

This approach requires a deep and genuine commitment to reflecting corporate values ​​in every aspect of the brand’s operations, from communications to marketing, from supply chain to internal practices. In a world where consumers are increasingly aware and connected, failure to maintain a consistent position or backtracking can cause significant damage to a brand’s reputation.

Brands that adopt and maintain clear positions that are in line with their corporate DNA are those that are able to build an emotional connection with their consumers. This bond is based on trust and identification with shared values, aspects that become decisive in purchasing decisions.

In 2024 and beyond, relevant and consistent positioning will become a key factor in gaining and maintaining consumer trust and loyalty. Brands will need to not only talk, but demonstrate through concrete and consistent actions, their dedication to values ​​and causes that reflect their true corporate spirit.

 

Are you ready to face 2024?

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