With Q1 of 2023 well underway, brands have been looking back to try and predict what lies ahead. As Pacvue predicted last year, 2022 was the year for omnichannel strategies, shoppable videos, and retail media networks.
Brands that adapted quickly—transitioning from one ad type to another and responding to emerging trends—saw immense growth.
It will be no different in 2023.
In this blog, we’ll cover four notable trends in eCommerce and the strategies you can use to stay ahead of competitors.
Retail Media Transparency
Brands are under pressure to be transparent, particularly in regard to sustainability, as consumers are becoming more conscious of their impact on the planet. For example, 45% of total estimated emissions in the industry come from the packaging of goods, and consumers care deeply and will hold brands accountable for how they strive toward improvement.
Steps towards transparency can improve a brand's relationship with consumers and increase conversion. Social issues are important to customers, who expect brands to align with their values.
Data Accessibility on the Rise
Retailers are willing to share first-party data with brands, which is great news, but this advantage has yet to be fully exploited.
Omnichannel presence can provide insight into consumer purchasing patterns, as behaviors on Amazon likely won’t mirror how the same consumer makes purchases via Walmart, for instance. But, these patterns, when combined with insights from more and more retailers, produce a much deeper understanding of your audience.
From there, brands can best target product categories, promotions, dayparting strategies, and more for a deeply personal shopping experience. When hyper-personalization can bring in as much as 25% more revenue, who wouldn’t want to go the extra mile?
2023 will see bigger investments in turning raw data into actionable insights. Tools and software that visualize data and provide actionable steps will be in demand.
The Year of Purposeful Spending
Rising inflation and tighter budgets are going to be a huge theme of 2023. This year will see companies (and their consumers) looking to maximize value for every dollar spent. Here are three main ways this will happen:
- Brands will look for tools that help predict and calculate returns for marketing efforts.
- Social media influencers will partner with brands to increase discoverability.
- Companies may cut jobs to keep up with rising costs.
Pushing Human Efficiency Barriers with AI
AI is increasingly becoming a staple in the industry, automating tasks and improving decision-making through data predictions.
AI should be seen as a tool, not a replacement, and used to complement human skills and set higher revenue goals. Recruiting and training specialized digital talent has historically helped brands achieve that human connection through digital screens, something only humans can execute.
Instead of looking at AI as a replacement, think of it as an addition to your toolkit as you set higher revenue goals this year. For example, Netflix is planning an integration that will allow users to shop character wardrobes with a click as they binge-watch their favorite shows.
Forecasting Preparations for 2023
Rapid evolution is a scary prospect, and many brands simply don’t have the extra cash to make big upgrades. While those who can afford to set up their presence in physical stores and invest in tools that make their decisions easier will benefit immensely, a great opportunity lies for brands that can think outside the box and capture the attention of new consumers.
Data from 2022’s successful Cyber-5 sale showed the biggest spenders to be millennials aged 24 to 35, and this generation of mindful buyers has consistently put home-grown, creator-led brands at the top of their lists.
To recap, here are four trends to look out for:
- Be transparent with your consumers.
- Visualize and personalize your data as the core of your strategy.
- Provide maximum value in exchange for your consumers’ dollars.
- Increase output by combining the power of AI with creative human understanding.
You have retail data, and we have a way of bringing it together on an enterprise scale. Pacvue’s intelligent marketplace software solution helps uncover opportunities, save time with customized reporting, grow share of voice, and more.