Brands that can read signals of a consumer’s mindset and objectives and act on those signals will be the winners.
Street Fight has, once again, featured perspectives from Erin Lynch, Hero Digital’s Chief Creative Officer, in an article titled: Forecasting the Future: 4 Retail Marketing Trends Coming in 2023.
Erin Lynch believes that time-challenged shoppers are seeking a direct path to purchase without any extra noise. Read the full article below.
Retail media, the rise of TikTok, merchandising advances to deal with supply chain constraints, and shortened paths to conversion — these are just four of the retail marketing trends in 2022 that Street Fight contributors see picking up steam in 2023.
Read on to understand which of these trends will get more complicated in the new year and which will merely intensify.
1. Brands Choose Between Retail Media and Their Own Walled Gardens
“Retail media or walled cities brands will reach a fork in the road in 2023 and take one of two paths. In one lane are those without first-party data and a direct relationship with consumers, like big CPG. They’ll lean harder into retail media networks like Amazon, Walmart, Target and others, which are estimated to triple what they were in 2019 to $37.39 billion in ad spend per eMarketer. Consider these relationships golden handcuffs, as they’ll rely on these networks for data. Other verticals will follow suit, such as travel where Marriott International already broke ground.
In the opposite lane are those flush with data, who will pull out of retail media networks to erect their own fortresses, forcing consumers to go direct to their website or app to buy or subscribe. There will be increased competition in the category over the next one to three years as more retail networks emerge and more non-endemic brands get into retail media advertising. Whether handcuffs or bunkers, brands should consider the risk-to-reward ratio of either lane.” — Alexandra Theriault, Spherical
2. TikTok Takes the Lead
“For the past seven years we’ve been in a YouTube-first video market. But now I’m seeing, for the first time ever, advertisers go to TikTok first. It’s hard to argue the size and scale of TikTok and the amount of time spent on average, compared to other platforms like Snap and Facebook. And it’s a sit-back-and-immerse kind of platform for entertainment, unlike others that are more positioned for communication.
That’s why I think TikTok, barring an FCC intervention of course, will continue to win in terms of mindshare, power, and distribution. Outside of search, we’ve seen very few lean-in experiences get this big.” — Matt Tubergen, Digital Turbine
3. Retailers Will Get More Efficient with Merchandising Investment
“Geofencing is a perfect example of how retailers and brands can leverage QR codes to be more efficient with their promotions and merchandising investment. Let’s say you have a QR code on a shelf tag or merchandising display—that link can serve any number of actions depending on the specific item, inventory status, or store location, and it allows for the opportunity to turn on, off, or adjust offers without having to change the physical shelf tag or endcap.
Not only does this add a layer of flexibility to help brands be more efficient with their marketing spend, but it also adds sophistication in how you can personalize offers to create a more valuable in-store shopping experience for the consumer.” — Henri Lellouche, Quotient
4. Shoppers Will Seek a Direct Path to Purchase
“Brands that can read any signals of a consumer’s mindset and objectives and act on those signals will be the winners. Online shoppers who have the time and willingness to engage deeper should be offered relevant features and content. But for the shopper who is time challenged and knows exactly what they want, they need to be offered a direct path to purchase without any extra noise.
A strong CX has many entry points, routes within, and worthwhile destinations. Even from the purchase point—your customer may also become a brand advocate, frequent purchaser, customer testing the waters at first before bigger investment, member of your future team, or any number of potential scenarios. Any one of these is worth expanding your view to have broader goals along an ongoing journey.” — Erin Lynch, Hero Digital