These digital marketing trends await us in 2021

1. more transparency for the brands

60 percent of Generation Z (born between 1995 and 2005) proudly professes to want to change the world. They use their smartphones to actively interact with brands, which gives rise to new usage opportunities. More than 20 million consumers in France, Switzerland and Belgium, for example, use the Yuka app to analyze the quality of food and cosmetic products. New digital networks like MyPrivateDressing in Switzerland sell second-hand luxury products, and Dutch diamond retailer DeBeers relies on blockchain to ensure the traceability of its diamonds. You can see: Transparency has definitely become the norm.

However, during the pandemic, a new breed of consumer emerged within a few weeks, further accelerating the use of technology. A new generation has emerged, represented by the letter "N" for "New Economy". Typically, it takes two months to establish new habits. But Swiss e-commerce made a huge leap forward in the spring, with 75 percent of the Swiss trying out new brands, according to McKinsey.

For both Generation C (connected) and Generation N, transparency is important because it creates trust, which in turn ensures customer loyalty. For consumer goods, transparency is manifested through communication about social, environmental, working conditions, production, and recycling commitments. If transparency is a means of differentiation for brands, then this also applies to their digital marketing. Apple, for example, emphasizes respect for consumers by restricting access to cookies in its Safari browser, not sharing customer data with state governments, or blocking access to the advertising ID (IDFA) of its iPhones. Brands today are meeting the expectations of conscientious consumers on equality, education, social justice, climate change, and nutrition.

 

2. more ethics in campaign data

In recent years, the use of data in digital marketing has become the norm. Google and Facebook have captured the market by offering a wide range of targeting options: socio-demographic, contextual, affinity, intent and lookalike. However, the advent of the European General Data Protection Regulation (GDPR) and the foreseeable end of cookies are changing the situation. Data collection requires explicit consumer consent and education.

In 2021, brands will be able to use even less third-party data, but its quality will increase. The holy grail of marketing will therefore remain advertisers' first-party data. Collecting this data will not be a problem for trusted brands and newspapers today or tomorrow.

GAFA - Google, Amazon, Facebook and Apple - can reach billions of people with their first-party data. Data will continue to play an important role, but the requirements regarding its use are constantly changing. So pay attention: The new generation of consumers knows exactly how the Internet works and is questioning the way data is used. Ethical principles in the use of personal data are becoming an important criterion when choosing a brand or service. So in 2021, it's time to bring more ethics into data use.

 

3. artificial intelligence and algorithms for performance and personalization

Machine Learning is turning traditional marketing on its head. To successfully guide a consumer through the various stages of the sales funnel, artificial intelligence and machine learning make lightning-fast decisions based on vast amounts of information. These automation tools make it possible to personalize, analyze, and optimize thousands of shopping strategies, target audiences, and promotional messages simultaneously, which would simply be impossible for a human to do. This process is not only fast, but also gives the possibility to predict people's behavior. For this reason, artificial intelligence is becoming the key element of tomorrow's marketing.

Artificial intelligence enables real-time analysis of customer behavior according to socio-demographic criteria, purchasing behavior, browsing history, etc. to deliver a specific message to be placed on an advertising medium at a given time. The immediate benefit to brands is less wastage and better customer acquisition costs. Thanks to the good results, artificial intelligence will continue to gain weight in Programmatic Advertising.

Another plus is that the clever use of "big data" makes marketing more human: It is now possible to personalize banners and videos on a large scale. In this way, the message adapts to the audience. Brands like Coca-Cola and Spotify have already taken advantage of this by customizing their bottles and sharing their music preferences, respectively. Swiss brands are also already using it: this year, for example, Localsearch customized their banners to more than 2,000 communities to promote their LocalCities app with local information. A successful campaign with several hundred thousand downloads.

Personalization of the advertising message is very efficient and artificial intelligence will continue to use all available data in 2021 to enable even more precise targeting.

 

4. video or nothing

Whether it's on TikTok, Snapchat, YouTube or Instagram stories, video ads are everywhere. And it's impossible to ignore them: More than eight billion videos are viewed daily on Facebook and five billion on YouTube. TikTok usage has really exploded in Europe this year and now already exceeds 1.5 million users in Switzerland.

Advertising investment in video continues to grow. In fact, one in three people buys an item after watching a promotional video. This highlights the high importance of this communication medium for consumer buying behavior. It's no wonder, then, that platforms like Facebook and Instagram, which were originally focused on images, are increasingly turning to video. Brands are finding that videos are very effective in attracting new customers. This is especially true for products like cosmetics, electronics, food or games.

Despite proven effectiveness, however, many companies remain reluctant. The production costs for videos are cited as the most important reason for this. But the benefits far outweigh the costs on closer inspection. Why not keep production costs low and follow the example of Facebook, TikTok or Snapchat? These allow their users to create videos easily and inexpensively. For SMEs, for example, Facebook Mobile Studio offers many options for creating attractive ads very easily. The selectable ad formats can even be adapted to the advertiser's goal: Awareness, retargeting, generating qualified contacts and so on. Here's a tip: A study by Vivendi Brand Marketing shows that the attention of target groups lasts only eight seconds on average, so be short and to the point!

In 2020, videos have also appeared on Instagram and even in B2B on LinkedIn. In the B2C environment, the link between video and e-commerce has given rise to tele-shopping. Programmatic TV - even if it is not yet possible in Switzerland - is becoming more and more important in the USA and in many European countries and will soon bring new opportunities for SMEs in our country as well. Video is expected to continue to be the backbone of digital marketing in the coming year.

 

5. the power of influencers

Influencers create experiences for their target audience. Some large, international brands count on the awareness of influencers with billions of followers to present their products or services.

However, this is not a trend that everyone follows - proximity is "trendy". That's why many brands strive to work with micro-influencers and their smaller but highly engaged communities. They are aware that quantity does not necessarily mean quality, and that they have a better chance of making sales with an audience that truly trusts and values the opinion of the influencer they follow at all times. Besides, it is possible to use the content produced by the influencer in media campaigns to increase the reach.

Word of mouth has always been one of the most efficient marketing methods - influencers have only adapted this practice to today's times. With influencer marketing and programmatic, this is merely "digital".

 

6. e-commerce - Shoppable Post

Shoppable posts on social networks combine entertainment with online shopping. This direct purchase option is highly appreciated and used by younger generations, especially because payment is possible directly and no change of application is required.

"Checkout" is the name of the new feature that Instagram is offering alongside Stories and Explore. But Facebook and Instagram are far from giving Amazon a run for its money. However, "one-stop shopping" will simplify users' lives by enabling all stages of the sales process on a single platform. The loss rate due to switching from one platform to another will thus be limited.

Social networks already play a very important role in the implementation of digital campaigns. But they are becoming more and more important in the eCommerce space thanks to an integrated and seamless client experience. To improve conversion rates, exclusivity and urgency are becoming more and more important, and that's where limited-time offers come in. These offers, which are only available for 24 hours, have been popularized by social media.

Snaps on Snapchat, Stories on Instagram and LinkedIn, My Day on Facebook - all new opportunities for the eCommerce sector to provoke further, short-term transactions from the audience. In the future, TV and Digital Out of Home will certainly use similar strategies.

 

7. mobile first and G5 on new screens

Since last year, more than half of Internet traffic is consumed via mobile. We are shopping and conversing more and more via smartphone. It is imperative that brands ensure that their website content, services and communications are adapted to smaller screens such as mobile and tablets. Videos that switch from horizontal to vertical format, for example in stories on social media, are very effective.

Moreover, this format is now also increasingly common on the web in general - outside of social networks.

The introduction of 5G will enable the use of programmatic on all screens. Faster Internet access will reduce video delays and boost speed. The 5G network has already been launched in Switzerland this year and the new generation smartphones will very soon create new trends in this area. It is estimated that by 2024, the majority of the Swiss population and more than 1.4 billion people worldwide will be using 5G. Consumers will be browsing on connected devices, be it watches, glasses or activity trackers, and will continue to equip themselves with new devices, on which advertising will then also be seen very soon - further terrain for Programmatic.

 

8 Digital Out of Home: Revolutionized by Mobile Data

Billboard advertising is currently undergoing a rapid digital transformation. In the U.S., DOOH already represents more than 33 percent of the outdoor advertising market, and according to Emarketer, in a few years, it will already be more than half in Switzerland, as in other countries. So we are only at the beginning of digitization - an exciting time.

It is the integration of mobile location data that connects to the last kilometer between home and retail outlets, online and offline. The goal is to measure the direct impact on point-of-sale sales.

In 2021, the programmatic offering in DOOH will explode. This will be partly thanks to new targeting options and new buying methods, which are among the strengths of the Internet: Flexibility, real-time and, above all, personalization of targeting. Experience shows that this can make DOOH campaigns significantly more effective.

 

9. audio and voice search - the sound of the future

With the advent of connected speakers like Google Home or Alexa, the use of voice is exploding. A large part of the world's population already uses voice search. Obvious advantage: free hands. Already, more than 20 percent of Google searches are done by voice.

This year in the U.S., the number of digital radio users has surpassed that of traditional radio. Digital audio makes it possible to target audiences more precisely, for example by avoiding broadcasting advertising messages abroad, in border areas. The boom in podcast consumption represents a big opportunity for 2021. With a quarter of the population listening to podcasts for an average of 30 minutes a day, according to one study, the advertising market for these media will exceed one billion in 2021, 30 percent more than this year. This is a significant development for both Spotify and radio stations.

 

10. 2021: Even more Programmatic, and above all more Humanity

According to Zenith, advertising investment in programmatic is likely to exceed $100 billion in 2021, representing 68 percent of digital advertising investment. In the U.S., it is likely to be 88 percent of display investment, and more than 72 percent in Switzerland.

However, neither platforms like Tiktok nor technologies like 5G will be the ones to mark the new year - but clearly consumers. They will continue to be demanding and require more from brands: more value, more engagement, more honesty. Attention and flexibility will continue to be the magic formula in this rapidly changing market.