The world of consumer behavior and advertising is undergoing seismic shifts as retail media and Artificial Intelligence (AI) take center stage. From the intriguing patterns of consumer spending on Black Friday and Cyber Monday to the increasing price sensitivity among shoppers, businesses need to rethink their advertising strategies.
Furthermore, the rising prominence of retail media and direct-to-consumer strategies are reshaping the future of advertising. This blog will delve into the insights shared by experts, MikMak’s Founder & CEO Rachel Tipograph and Director, Full-Funnel Consumer Engagement at Reckitt, Carolyn Nephew, in a recent Webinar titled ”State of the Consumer: Is Black Friday Dead—and What Does it Mean for 2024 Spending?” We will explore the evolving patterns in consumer behavior, the impact of AI on advertising, and the growing significance of retail media.
5 Key Highlights:
1. Shifting Patterns in Consumer Behavior: In recent times, consumers have shown a tendency to trade down in basket sizes and price points, indicating a growing price sensitivity. This shift has led to changes in advertising strategies and highlights the importance of keeping up-to-date with consumer trends.
2. The Rise of Retail Media: Retail media, where retailers leverage their online and physical presence to offer advertising opportunities to brands, is emerging as a major competitor to Google. Retailers' direct access to consumer data and the increasing shift towards online shopping have fueled this growth.
3. The Future of Direct-to-Consumer Sales: Big consumer packaged goods (CPG) manufacturers have shifted their focus away from direct-to-consumer (DTC) due to profitability challenges. The future for DTC brands lies in adapting to changes in the ecosystem, such as iOS 14 and Cochialis Internet, and focusing on data-driven strategies.
4. The Importance of First-Party Data: With the impending demise of third-party cookies, first-party data has become increasingly important for CPG manufacturers. Tactics for gathering first-party data include CRM programs and partnerships with retail partners.
5. AI's Impact on Advertising: AI is already making significant strides in advertising, replacing tasks like QA work and assisting with basic coding and image editing. Despite concerns about copyright and transparency, the future of AI in video content creation holds promise for personalized experiences at scale.
