2024 Thorough explanation of future predictions of digital marketing
As the information society progresses, digital marketing is essential for making your products and services widely known. Staying on top of digital marketing trends will not only help you acquire new customers smoothly but will also deepen your relationships with existing customers. This time, we will explain the trend predictions for digital marketing in 2024.
What was the digital marketing market like in 2023?
What kind of digital marketing trends will be in 2023? Here, we will explain the changes and trends in digital marketing in 2023.
The digital marketing market is expanding rapidly.
The digital marketing market is expected to reach 35.9 billion US dollars (approximately 5,257.6 billion yen in Japanese yen) by 2027. Source: Overview and competitive analysis of Japan’s digital advertising market,
This is because due to the influence of the virus, the use of IT in various fields has progressed and it has become more accepted by society. With the introduction of IT tools, some people may be able to experience improvements in work efficiency and productivity, even in areas that could only be handled using analog methods.
This is because the spread of the new coronavirus has made face-to-face customer service and sales difficult, and companies have begun to focus on marketing mainly through digital means such as websites, SNS, and video distribution.
Full automation of digital advertising
2023 will be a year in which automation has made significant progress. Automation of creative production and distribution is making great strides. Full automation of advertising allows AI to learn existing data about products and customers, approach the appropriate target group, and automatically perform the flow of advertising.
The advantage of this system is that it provides more accurate advertising by providing high-quality data, allowing efficient marketing even in the advertising industry, which is understaffed.
In 2023, full automation of digital advertising will become a reality thanks to the rise of AI technologies such as ChatGPT. Full-funnel advertising menus and automatic generation of advertising creatives through data linkage enable efficient advertising.
It has also become possible to use predictive targeting, which uses AI to predict which customer groups are most likely to make purchases, instead of traditional marketing methods that target specific customer groups.
The growing importance of content marketing
An increasing number of BtoB companies are placing importance on “content marketing” to acquire customers through means other than advertising. One of the reasons for this is that with the advancement of online shopping, voluntary actions on the part of buyers, where customers search for products and services they are interested in and ultimately reach business negotiations and contracts, have become mainstream.
As a result, seller-side companies have begun to focus on creating content that meets customer needs. By disseminating high-quality content, people who were not customers up until now are becoming interested and searching, which is increasingly leading to purchases.
people moving away from advertising
The problem is that while digital advertising is increasing, we are now overloaded with information. Due to information overload, it is difficult to attract attention to the overflowing advertisements, and people are turning away from advertisements. People rarely look at each advertisement carefully, so even if an advertisement is posted, it is difficult for people to remember it or get the message across.
As a result of the shift away from advertising, purchases from official company accounts and influencers from all walks of life are on the rise. Increasingly, people are purchasing products and services after viewing social media posts, short videos, and connected TV ads.
Connected TV ads refer to ads that appear on TVs that are connected to the internet. These advertisements are receiving increasing attention as more and more people use their TVs to access video streaming sites over the internet rather than watching TV programs via cable.
Tightening regulations on advertising
Due to the tightening of stealth marketing regulations that started in October 2023, it is now a violation of the law to hide the fact that it is an advertisement. Companies that use social networking sites (SNS) to advertise are being forced to take countermeasures.
Additionally, due to the prevalence of fraudulent advertisements, the need for ad verification (a mechanism for verifying advertisements) is increasing, and rules and laws have begun to be put in place in the diversifying web advertising industry.
Check out the trends and trends in the digital marketing market in 2024!
So far, we have introduced the digital marketing trends that will occur in 2023. Based on this, we will explain trends and predictions for 2024.
Expanding opportunities for the use of AI
It is expected that the spread of AI will continue to increase in 2024, and that AI will be used in more and more areas of marketing business. It will become possible to communicate with consumers in real time using AI and to deliver content and advertisements tailored to each consumer.
This allows us to provide information and advertisements that are more tailored to consumers, which also leads to building relationships of trust with consumers. The proliferation of information presented by AI and growing trust in artificial intelligence such as ChatGPT will also impact marketing. There is also the possibility of hyper-personalization, where AI generates information tailored to each individual.
Re-recognizing the importance of privacy issues
With digitalization, the importance of consumer privacy protection increases. Since we handle a huge amount of digital information, including personal information, we will need to further strengthen our measures against information leaks and cyber-attacks.
As AI rises, so too will the need to obtain consumer consent to utilize their data. As a result, new privacy regulations and a trend that prioritizes the protection of consumer data and personal information are likely to become widespread.
Expansion of retail media
It is said that retail media will expand in 2024. Retail media is a method of marketing through advertising through apps and signage.
Some of you may have seen advertising videos playing on the signage attached to the cash register at convenience stores. This signage uses consumption data such as the number of customers visiting the convenience store and customer demographics to deliver content that is appropriate for consumers visiting the store at that time. Many companies use convenience stores themselves as advertising media.
It is said that retail media will start to attract attention from around 2023, and will become serious in 2024. In light of social conditions such as soaring prices and declining population, an increasing number of companies are reconsidering their advertising expenses. In order to increase the cost-effectiveness of advertising, several major companies are planning to embark on retail media in earnest.
AR and VR integration
Incorporating augmented reality (AR) and virtual reality (VR) into marketing strategies is becoming a trend. Companies can create experiences that allow consumers to immerse themselves in their company’s worldview, and through these experiences they can gain fans.
For example, you can try out a product or service before buying it, or try on clothes in a virtual shop. It is predicted that the way we shop will change significantly with the spread of AR and VR.
Expansion of closed-loop social shopping
In traditional SNS advertising, the process was to go from product information to the original e-commerce site and purchase the product there.
However, in recent years, “closed-loop social shopping,” in which users click on product information and complete the purchase within that platform, has been attracting attention. TikTok is a representative service and has been a huge success in China. We are currently in the process of launching in the United States. It is expected to expand in Japan in the future as well.