How has the year 2023 and forecast for 2024 for performance marketing: Amitek Sinha

How has the year 2023 and forecast for 2024 for performance marketing: Amitek Sinha

Digital marketing has transformed into a flexible field that consistently adjusts to trends.

Amitek Sinha

Mumbai: As we delve into the landscape of performance marketing, it is essential to evaluate the evolving trends and anticipate the trajectory that will shape the industry in 2024. The dynamic nature of digital marketing, along with technological advancements and shifting consumer behaviours, has paved the way for new strategies and challenges.

As we stand on the cusp of 2023, the domains of e-commerce, influencer collaborations, and artificial intelligence continue to redefine the structure of performance marketing. Here are a few trends that peaked in 2023:

1.    Shifts in privacy regulations and the rising importance of first-party data: The evolving landscape of digital marketing has been significantly influenced by rising privacy concerns. The emergence of stringent data protection regulations, along with increased consumer awareness regarding the significance of their personal information, has elevated the importance of first-party data as an important asset for marketers. This strategic shift towards prioritizing first-party data underscores the imperative for businesses to cultivate direct relationships with their customers. It necessitates a concentrated effort to obtain data through direct opt-ins and consent mechanisms, all while maintaining a strict commitment to data security.

2.     AI as the key player: The marketing landscape has undergone a transformative shift with the integration of AI technology, enabling businesses to automate customer interactions and deliver personalized experiences on a significant scale. For instance, Google's Performance Max has introduced advanced features such as Campaign level brand exclusions, providing advertisers with enhanced control over their brand representation. Simultaneously, Meta's Advantage+ Ads, through creative updates, has elevated user engagement by customizing product recommendations and enhancing the visual appeal of advertisements. The expanded application of ChatGPT extends beyond content generation to include recommendations for precise targeting, presenting marketers with more sophisticated tools for audience segmentation.

3.    End-to-End Personalisation/Vernacular Experience: Since a lot of people in India speak different languages, it's crucial to make a personalized strategy for each person's journey. This doesn't just mean translating things or using local languages; it means making the whole experience for a consumer comfortable. This includes using their language in messages, making personalized web and app pages, adjusting how chatbots talk, helping them over the phone, and sending personalized notifications.

4.    The power of UGC content: The explosive growth of user-generated content (UGC) and short videos, like Reels and Shorts, has been phenomenal. These bite-sized, engaging videos have captured the attention of millions, and their popularity keeps growing. With AI taking a front seat, brands must leverage the power of content creation to influence the targeting of most of the automated campaigns.

As we approach 2024, performance marketing is getting ready for some big changes. We expect to see more use of smart technology, a continued focus on personalized and data-driven strategies, and a commitment to keeping people's privacy in mind. Following are some of the major trends that would pick in 2024:

1.    Performance and Branding won't be independent concepts: Gone are the days when performance and branding campaigns worked separately. Nowadays, to make sure a brand does well in the long run and doesn't spend too much on getting new customers, it's crucial to run both types of campaigns at the same time with smart plans. At ETML, we call this combined approach "performance branding." With this way of doing things, we carefully plan and divide the budget for both performance and branding strategies, making sure we have a complete and balanced approach. This teamwork helps us get the best results, making the brand grow and be more profitable.

2.    Acknowledging the untapped potential of Tier 2 and Tier 3 cities: Tier 2 and Tier 3 cities in India are experiencing a digital transformation. Brands would understand the big opportunities here, as the middle class is growing quickly with considerable purchasing power. More people in these places are using the internet and smartphones, and advertising costs are usually lower than in Tier 1 cities. Tailoring content to resonate with the preferences of this audience is of strategic importance.

3.    Chatbots, WhatsApp and the Power of Broadcasting: With WhatsApp's popularity, brands are offered a direct, personal way to engage with customers, enabling one-on-one communication and building trust.  Globally, the WhatsApp business has crossed the mark of 200 million monthly active users — up from 50 million in 2020. In India, with 50 Cr+ Indians being on WhatsApp, the platform has a huge potential for businesses to be involved seamlessly during each stage of a customer’s journey: Pre-purchase, Purchase and Post-purchase.  The app is predicted to hit revenue of $1 billion in India in 2023. Brands can download our guide on CTWA (Click to WhatsApp Ads) for more detailed information.

Chatbots, powered by AI, on the other hand, enhance customer service, providing quick responses and assistance around the clock. Meanwhile, broadcasting capabilities allow brands to reach a wide audience instantly, sharing updates, offers, or content efficiently. These tools not only streamline interactions but also help brands tailor their messaging and offerings to individual preferences, resulting in a more personalized and effective marketing approach in today's fast-paced digital world.

4.    Rise of Voice Search Optimization: Voice search is no longer unique; it has become an integral component of how people leverage technology. Today, businesses are optimizing their content for voice search as the use of virtual assistants grows. This entails employing conversational language, long-tail keywords, and producing material that responds to certain voice-based inquiries. To stay relevant in the voice-activated era, organizations are rethinking how they approach SEO and content development.

5.    Constant modification: The key to future growth

Digital marketing has transformed into a flexible field that consistently adjusts to trends. To stay competitive in this constantly changing digital marketing environment, businesses need to not only adopt the mentioned trends but also predict future developments. The only consistent factor in this environment is change!