A marketing toolkit for brands to check out in 2020

The Greta Thunberg Effect

Conscious consumption is now a key trend that marketers need to respond to. There is growing pressure to reduce packaging waste, and in particular plastics. But it’s also evident in the growing demand in some markets for meat-free meals. While this trend is most pronounced in Europe (48% of marketers in the survey said it will have a significant impact on 2020 plans), it is also growing in Asia (more than 30% say the same). We’ve seen brands like Carlsberg and Coca-Cola innovating in packaging to reduce plastic use, and in Asia Expedia is looking to build an accreditation scheme for hotels with eco credentials. We’ve also seen a focus on reducing the amount of packaging for e-commerce. The key learning for packaged goods brands would be to stay one step ahead of the retailers, who are demanding changes for their suppliers. It is also important to view this as a long-term initiative, not an opportunity for short-term ‘purpose’ communications.

Recommendations:

1. 1. Brands can take an active role in educating consumers about the role they can play in supporting the environment. Consider using behavioural economic techniques that can help remove barriers to behavioural change.
2. 2. Although a deep-dive audit, and devising solutions, can seem overwhelming, start with incremental steps such as auditing packaging, supply chains and carbon-neutral goals.
3. 3. Run packaging pilot schemes. There are a growing range of options around packaging – from reduced plastic options to packaging-free refills.

Reinvent Programmatic

Half of the survey’s respondents said that programmatic media buying had failed to live up to its potential. There is growing interest among marketers in buying ads based on context as well as audience profile, and there is a growing body of research that shows online ads are more effective when delivered in high-quality environments. At the same time, the emergence of connected TV may lead to a rise in quality inventory available to advertisers via programmatic platforms. That’s certainly the direction of travel, but in 2020 the main challenges will be sorting through a mess of standards and formats in connected TV.

Recommendations:

1. 1. It’s time to reappraise context. Brands including Tesco are coming to the conclusion that contextual factors can influence purchase decisions as much as brand loyalty or audience segment.
2. 2. Fit the ad to user intention within a particular environment. Online users approach each environment with a specific mindset, and this context should influence the development of a brand’s campaign. The opportunity to engage users is a fraction longer on YouTube, as there are fewer distractions. In comparison, Facebook more strongly drives brand favourability.
3. 3. Analyse the audience before committing to connected TV. Marketers are advised to carry out some “foundational” work to identify their most valuable audiences and to understand their place in the purchase journey.

Brand Health or Quick Sale?

The rise of digital platforms has led to growing investment in so-called ‘performance marketing’ (ads designed to drive a quick sale) at the expense of brand-building communication (ads designed to improve brand health and deliver sustainable long-term growth). The key is having the right balance between the two, but 70% agreed that brands have got the balance wrong and overinvested in performance marketing. In 2020 expect more marketers to shift budget back into brand-building – 40% of the survey say they will do this, versus 32% who will increase spend on performance marketing.

Recommendations:

1. 1. Develop a distinct strategy and budget for brand. Researchers such as Les Binet and Peter Field increasingly advocate that brand-building and sales activation be organised as distinct streams within a marketing plan, each with their own timeframes and KPIs.
2. 2. Audit your distinctive brand assets. One way to tie together communications and other elements of brand experience is through distinctive assets – whether that is logos, shapes, colours, or elements of advertising such as brand characters.
3. 3. Get buy-in beyond 12 months. One risk of shifting budget back into brand-building is a short-term drop in effectiveness while the long-term effects build.

Break barriers to build brands

There is a lot of advertiser interest in digital platforms that can link paid-for advertising to payment and e-commerce. Amazon’s growth as an ad platform has been a big story in 2019, and 32% of our survey plan to spend more on Amazon in 2020 (vs 2% who will spend less). We’re seeing a lot more of this – retailers like Walmart and Kroger are trying to follow Amazon’s lead, while in China Alibaba is creating an ecosystem for brands to build awareness, deliver sales messages and fulfil purchases. Asia has a real lead here. It is significant that Asian respondents to the survey rate payment tech as a more significant technology for them than artificial intelligence, unlike Europe and the US. For many packaged goods brands, building brands in these walled gardens is a key challenge for 2020 – and their approach will need to be tailored for each major platform.

Recommendations:

1. Tailor your strategy for each platform. It would be wrong to adopt a one-size-fits-all approach to advertising on digital platforms. While Amazon prioritises efficiency in the purchase journey, Alibaba is more focused on social ‘stickiness’, with brands encourage to engage with users through live-streamed content.

2. Ensure distinctive brand assets. It pays to invest in highly distinctive branding, including an easily-identifiable colour palette and product shots, and to build salience through other channels.

3. Understand the new rules of frequency capping. In the performance-driven environment offered by the platforms, marketers must adapt their thinking on campaign planning issues such as frequency management.

Privacy first, Marketing later

Data privacy is a key theme in many markets, particularly the US where the CCPA comes into force in January 2020, and in Europe where the full implications of GDPR are still becoming apparent. Asian respondents to the survey were much less likely than respondents in other markets to have data protection provisions already set up – so this will be an area of focus for many brands in 2020. Brands like Mastercard are looking to get ahead of the market, launching a six-point global data manifesto.

Recommendations:

1. 1. Audit your data for ‘privacy by design’. Privacy-by-design principles put consumer consent and privacy at the forefront of projects, not as an afterthought. Conduct internal and third-party data audits and get your first-party data strategy in order.
2. 2. Look at privacy as part of your purpose. More than 75% of marketers agree that brands need to take a stand on social issues. There’s an opportunity to align a company’s approach to data protection and privacy with a broader brand purpose.
3. 3. In a post-cookie world, plan for context. Stronger data protection means marketers are seeking alternatives to third-party cookie tracking. With data-driven behavioural targeting under scrutiny, advertisers should plan media based on more contextual triggers.