Warc report, Marketer’s Toolkit 2025 pointed out the tension between social media and security, for example, as one of the trends for next year
Warc presented, this Tuesday (12), the Marketer’s Toolkit 2025, which maps the trends that will shape marketing strategies in the next year.
According to the document, improving economic conditions, the tension between social media and brand safety, the increase in consumers living more solitary lifestyles, the expansion of brand strengthening to encompass the entire customer experience and impact management of AI in the environment are five key trends.
The identification of trends in the report is based on Warc’s proprietary GEISTE methodology, which also incorporates a global survey of 1,165 marketing executives, one-on-one interviews with marketing leaders around the world, and analysis and insights from the global team of experts.
65% of marketers believe the business environment in 2025 will be better than this year
The marketing industry sees more reason for optimism, with two-thirds (65%) of survey respondents believing the business environment in 2025 will be better than this year. With inflation falling, the global economy entering a new phase and consumer confidence rebuilding, the challenge for marketers is to shift the communication of price increases and discounts to build or maintain pricing power and demonstrate why that the value of their brands justifies a premium price.
Marketers are advised to use ongoing brand strengthening to defend pricing strategies, avoid frequent changes in advertising that can confuse consumers and devalue a brand, and become the voice of the customer in board meetings, influencing the 4Ps — price, product, promotion and point of sale.
$3.7 trillion is at risk as customers reduce their spending
Growing global dissatisfaction with the quality of customer service has become a critical issue for marketers. The gap between brand promise and actual customer experience is widening, with brands facing complex customer journeys, cost cutting and margin pressures. A staggering $3.7 trillion is at risk due to customers reducing spending or switching brands after bad experiences.
According to Marketer’s Toolkit research, most brand marketers directly manage only two elements of the customer experience: website and/or app design and measuring customer satisfaction. It is recommended that brands adapt their strategies to better align customer promise and experience, increasing memorability and distinction at critical customer touchpoints (apps, websites, points of sale), and constantly test, learn and listen to feedback.
40% of advertisers expect brand safety to have a “significant impact” on their strategies
Despite persistent concerns about hate speech and misinformation, big tech platforms are seen as indispensable to many brands’ marketing plans, taking up a larger share of ad budgets. WARC Media predicts that Alphabet, Amazon and Meta will account for 44% of all global ad spending this year.
40% of Toolkit survey respondents expect brand safety to have a “significant impact” on their marketing strategy over the next 12 months, an increase of 10 percentage points over three years, yet just 8% plan to reduce or cut their investment in social media.
Concerns persist regarding the open web, the rise of AI-generated sites made solely for advertising (MFA), and the more than $80 billion annually lost globally to ad fraud, according to Jupiter Research.
32% of marketers see concerns about AI sustainability
Artificial intelligence is revolutionizing the advertising industry, but the technology’s exponential promise comes with insatiable energy consumption.
Few marketers are focused on the intersection of AI, media buying and sustainability. It is critical that brands and agencies incorporate sustainability into their AI plans by establishing robust sustainable frameworks.
Research shows that generating a single image with an advanced AI model consumes as much energy as charging a smartphone – between 5g and 10g of CO₂ emissions. A typical campaign generates emissions equivalent to those of seven people in one year.
68% of marketers are not leveraging lonely audiences
The number of people living alone has grown steadily in recent decades. In 2023, there were an estimated 484 million single-person households worldwide, representing a fifth of all households. This number is expected to grow 48% by 2040, exceeding the growth rate of all other types of households. Living more solitary lifestyles, these consumers are becoming increasingly “atomized” when shopping, eating and entertaining alone.
However, relatively few marketers seem to target products or services to this segment, or even communicate with the appropriate emotional resonance to establish a connection with this audience.
Brands have a real opportunity to target products and services to this audience, meeting their specific needs and reducing the “cost” of being a single person, in a way that makes them feel valued.
(Credit: Photo by Campaign Creators on Unsplash)
