Ad World 2022 Recap
Ad World is an annual conference that everyone at ASM looks forward to, and this year, even more so. As a boutique digital agency, being able to access niche presentations and tracks about the newest trends was like being a kid in a candy store. While there were too many to mention in a single blog post, a few interesting highlights really resonated with us.
Recession Impact and Minimum Viable Products
While a common theme during recessions is market downturns and unemployment, they can also spur innovation and the creation of new revenue streams. Recessions can operate as innovation catalysts, causing businesses to develop new products and services.
During recessions, companies turn to emerging technologies to pivot and navigate changing market conditions or create new products of value. Companies, for example, may create new software platforms or apps to help consumers manage their finances or develop new products or services to capitalize on shifts in consumer behaviour during a recession.
Businesses that emerge from recessions with new revenue streams deliver higher value. Their increased valuation is due to their ability to react to market developments, create new ways to suit consumer demands and develop products whose lifespans go beyond a recession. As a result, companies are frequently better positioned than their competitors to thrive during a recession.
Recessions offer an opportunity for companies to differentiate themselves from their competitors. By preparing for the next expansionary phase of the economy and positioning their product or service to capitalize on new trends, they can emerge from the crisis stronger than ever. Further, this is a chance to improve an existing product, service, or client experience.
We often get approached by startups in their early ideation phases, with some having seed funding but no clear MVP yet. In Seth Godin’s presentation, he spoke on some points that resonated with us and brought us back to those early meetings with startups and the importance of creating long-term value when developing a Minimum Viable Product.
Positioning Companies for Future Success
Innovative companies frequently come out on top when times are rough in the market because they preserve their leadership position. When markets slow, it provides the ideal environment for companies to test and iterate on new products and services.
Even in the most unpredictable of times, people still want items and services to make their lives easier. Looming uncertainty often makes people more careful with their finances. However, they do not want to compromise on quality. When developing an MVP, organizations need to create products that aren’t just “nice to have” but products that people can’t live without. When you have a market of people whose lives would be severely negatively impacted without your product, then they have successfully developed an MVP. You can not only survive but also prosper during a recession by developing new ways to meet customer needs.
Staying ahead of the competition and keeping a competitive edge requires innovation. If you reduce your innovation budget, you will most likely fall behind your competitors who are still investing in new ideas and technology.
AI Technology and Content Creation
AI copywriting solutions are advancing quickly and can now develop appealing on-brand copy that some consider comparable to human-written content. AI systems analyze massive amounts of text to identify patterns in word choice, syntax, and narrative themes. It then creates rules to go with them. Some AI further identifies certain words, phrases, punctuation, formatting decisions, and narrative aspects that outperform control copy. But will AI replace copywriters? The short answer is no. Not the good ones, at least. AI lacks empathy and emotional intelligence, two key factors in creating compelling copy. While AI can help expedite the creation of generic content, it cannot sit down and brainstorm messages based on the emotional reaction the copy intends to elicit.
First-Party Data as a Priority
According to Twilio’s State of Customer Engagement Report, 2022, 83 percent of consumers indicated increased loyalty to a firm that provides a personalized experience. While many businesses believe they are providing the personalized experience that meets their client’s needs, only 48% of consumers in Twillo’s poll believed brands offer “good” or “outstanding” customization.
What is First-Party Data?
First-party data refers to all the rich customer data you acquire from a customer’s interactions with a business, such as a website or an app. And it’s the key to delivering exceptional tailored experiences.
Collecting all that information to completely grasp who your clients are, what motivates them, their intent, and what they truly want from you is critical. You can then develop customer profiles and customize your marketing to them throughout their trips.
Offering customizable experiences will build better brand sentiment. Something as simple as a free product that aligns with their profile (based on the first-party data) can create a lifetime customer. Emails notifying customers that something they had previously viewed is now on sale is another example of personalization using first-party data. Personalization options are virtually limitless.
Another thing companies will need to pay attention to is that customers want to trust brands, and one way to do that is through data security. While companies can increase customer loyalty through personalized experiences, security will solidify that connection.
TikTok Isn’t Just For Kids and Viral Dances in 2023
One of the biggest features that make TikTok such a great platform for brands to invest their time and energy in is its interest-based algorithm. It is mostly based on the content graph rather than the social graph. This may be extremely beneficial for marketers because even the newest brands on TikTok have an equal chance of going viral and establishing a significant TikTok presence.
TikTok’s algorithm is entirely based on the content you provide. Even profiles with fewer than 200 followers have the potential to create content that a large number of people can view if it is relevant and of high quality. TikTok easily helps brands climb farther with such massive potential for reach, engagement, and brand discoverability on the platform. TikTok’s brand lift surveys consistently show double-digit growth across the full consumer experience, proving that this platform is one is going to be one of the most important channels for brands to dive into and advertise to new audiences.
As always, Ad World provides a wealth of learning opportunities with amazing tracks and presenters. The common trend among them was that companies need to strike a balance of innovation and connectivity in their marketing strategies to stay relevant. As the digital marketing landscape is continually evolving, it is critical to build, test, and use data to its full potential to fully understand your audience, and meet them at the right place and the right time.
For more information on how Arnold Street Media can develop a marketing and growth strategy, and turn your data into one of your biggest marketing assets, contact us today!