Performance Marketing Tech and Trends: Q2 2022

Today’s marketing landscape is filled with unpredictable twists and accelerated turns. With some industry changes being more impactful than others, how do marketers determine what is most important to their business? Our experts paired five Q2 2022 digital marketing trends with insights and strategies to help marketers successfully navigate today’s complex landscape.

1. Generation Alpha

Gen Z has had its time in the spotlight, but who’s next? Introducing Generation Alpha. This generation was born between 2010 and 2025 and is the newest generation that marketers should become familiar with. First, let’s address the elephant in the room — these are young children, and specifically targeting them with marketing messages can feel wrong, and in some cases, is even illegal. However, even if they aren’t spending their own money yet, this audience can have a tremendous influence on their family’s spending and preferences. And in a few short years (by the end of the 2020s), they will be moving into adulthood. Keeping a proactive eye on this generation can help prepare brands for success in the future.

According to McCrindle Research, Generation Alpha is expected to be the largest generation in the history of the world, with an estimated two billion people falling into this group by 2025. What is so different about this generation compared to others? Here are some of the defining characteristics of this generation:

• Immediacy and seamless user journey: Generation Alpha has (and will continue to) grown up in a world where everything is digital, and mobile is commonplace. They’ve experienced an on-demand life, from the TV show they want to watch to seeing their family’s groceries, dinner, and packages delivered to their doorstep. These experiences will cause them to expect their wants to be fulfilled immediately and a seamless user journey, McCrindle Research reports.
• Millennial parents: According to Poole College of Management assistant professor of marketing Heather Dretsch, one of the biggest influences on this generation’s habits is, of course, their parents, who are most likely Millennials. Millennials have been pinpointed as being extra careful of how their children are raised — from the food they eat to the toys they play with. So, to learn about the preferences of Generation Alpha, look to the Millennial parents.
• Growing up in pandemic: While virtual schooling and lockdowns slowed down the lives of everybody, it caused Generation Alpha to spend even more time on screens, Dretsch believes. She shared that it also, in many cases, has meant more time spent at home with their families, spending more quality time creating experiences and learning new skills and hobbies like baking.

Stay ahead of Generation Alpha with these strategies:

• Proactively monitoring this generation for future marketing efforts is a smart strategy for all brands
• Investigate the family makeup, parent preferences, and societal “norms” related to technology in order to not only appeal to the entire family, but to predict how Gen Alpha will be shaped by those early family experiences and digital behaviors

2. Economic trends and consumer uncertainty

While the odds of a 2022 recession vary depending on expert opinion, according to a new survey by Empower and Personal Capital, 74% of U.S. consumers are concerned about a recession, with 56% already seeing their standard of living declining. Price inflation, higher interest rates, the war in the Ukraine, a volatile U.S. political landscape, and continued supply chain issues have led many consumers to enter an era of uncertainty. Based on data from the “great recession,” ad spend was cut back, with U.S. ad spending down 13% in 2008 according to Forbes. However, studies suggest that maintaining ad spend and adjusting to the context of the times has proven successful.

Consider these marketing strategies to prepare for the potential of slowing consumer spending:

• Consider existing brand strengths and category dynamics while developing a strategy to address marketing in a recession
• Capitalize on the decreased “noise level” from other competitors who have decreased ad spend, allowing for brands that maintain or increase presence to gain share of voice. This investment will maintain loyalty with current consumers while also serving to create future demand post-recession
• Developing relevant, emotional brand messaging that matches consumer sentiment and highlights the value the brand provides is best practice. Consider balancing brand messages with price or promotional strategies to maintain current sales

3. Data privacy advancements from big tech

Security is the top reason for the shift to data consolidation for leading tech companies, as the variety of passwords and accounts created on varying sites without a second source of verification are more vulnerable to breaches. In order to keep pushing this forward, big tech companies like Apple and Google are in alignment with Fast IDentity Online (FIDO) authentication standards and are creating device-level, multi-factor authentication (MFA) features for simpler and more secure login methods such as using biometric features. On the surface, it may seem that these companies will be the new gold mines of user login data, but the opposite is true. Data are hashed, and therefore, more protected, contributing to the trend of less usable data available to marketers.

To overcome hashed data, consider these strategies:

• For media, start with broader targets and allow machine learning to identify and reach users more apt to engage with the brand
• Lean into contextual targeting tactics to combat data loss
• Utilize purchased and matched data to inform media delivery

4. Surge of streaming audio

Digital audio consumption has been growing for over a decade — a trend that is expected to continue for years to come. According to Insider Intelligence, U.S. adults:

• Spend on average 1:40 a day consuming digital audio in 2022, representing 13% of overall media time and 20% of digital media time
• Spend more time listening to digital audio than watching video on CTV (1:27) or using social media (1:15)
• Digital audio surpassed time spent on traditional radio in 2020 — a trend that will only continue to grow

A major contributor to this growth is podcast listening. Active podcast listeners, which represents 37% of the U.S. population, spend an average of 53 minutes a day listening to podcasts according to Insider Intelligence.

Regardless of the audience or goal, streaming audio has a place in every marketer’s media mix as consumption continues to grow. Consider these strategies to win with the surge of streaming audio:

• Leverage audio inventory that aligns with your audience and business goals. Inventory is available direct and/or programmatically and ad units can range from short, pre-recorded branding spots to drive efficient reach to longer host-read spots with unique offers and URLs for enhanced attribution
• Align relevant content to the audience’s needs/wants or by leveraging third-party data sources to reach the targeted audience

 

5. Digital fatigue + attention recession

Digital media consumption as a whole is not expected to decline any time soon, but according to a new study by Deloitte, growth is stalling. But this didn’t just happen overnight. In the last year, we’ve started to see signs such as slowing growth for smart speaker purchases and usage, as well as for digital subscriptions like Netflix and Spotify. In fact, a third of consumers are feeling overwhelmed with tech, and are reprioritizing their time and resources, according to Deloitte. Why? Exhaustion. Consumers are tired of hearing about the pandemic in the news, managing too many subscriptions + devices, all-day screen viewing, and keeping up with industry advances like the Metaverse.

Success in reaching an exhausted consumer requires finding new ways to build relationships with your customer base. Consider these strategies:

• AmplifyYou recommends creating communities of highly engaged individuals — i.e., create quality experiences for your existing customers rather than “prospect, prospect, prospect.” By building a meaningful relationship with your customer base, you can build retention, loyalty, and sentiment. Ultimately, customers will begin to advocate for your brand
• GWI recommends reaching prospects on growing digital media channels like gaming, creator/influencer content, audio/podcasting, and experiential tactics
• Make your messaging about your customer and their needs — what can you offer them that they are actively seeking out? That incentive needs to be strong and to the point

 

So… now what?

While there are many twists and turns to navigate in today’s ever-changing marketing landscape, use these trends as a reference as you approach the second half of the year. Explore one trend and recommended strategy that makes sense for your business and goals to set your brand up for success. And if you have any questions, we would love to chat with you! Contact us at info@collectivemeasures.com.