In 2023, digital marketing will continue to be a significant force in today’s business world. The market is expected to grow at a CAGR of 13.1% between 2023 and 2028, reaching a value of $671.86 billion by 2028. With more people using technology for shopping, looking for new products, and connecting with brands, businesses are quickly realizing the importance of harnessing the digital landscape for marketing. However, as people’s behaviors and needs change, along with new technological advances, digital marketing will also see fresh trends and opportunities. The digital marketing strategies of last year will not all necessarily be applicable moving forward. If you’re looking to enhance your digital marketing tactics, here are some things to look out for in 2023:
A widening access to data in marketing
2023 will see an increasing reliance on data in marketing. Marketing is the heart of business success especially when using the latest technologies to enable data-driven decision making. Robust data and metrics now flow through companies, simplifying how we track campaigns, gauge ROI, and analyze the behavior of target markets. Whereas before businesses hired market research analysts or data analysts to understand better the data they collected, a LinkedIn report argued that 2023 would see a data democratization, where all areas of the workforce have access to this data. This will lead to “new forms of augmented working, where tools, applications, and devices push intelligent insights into the hands of everybody in order to allow them to do their jobs more effectively and efficiently.” Through this increased data democratization, digital marketers will be able to access different data points from across the company to better promote products.
Personalized experiences with AI
The online space doesn’t always provide much of a connection between a business and a customer, but there are many ways to foster trust through digital means. As we have covered before, artificial intelligence offers personalized experiences to customers, so they can find the exact products and services they're looking for once they visit a company’s website. This is why the increased scope of personalized AI experiences is expected to be one of the biggest digital marketing trends of 2023. For example, Expedia Group built a Smart Shopping service that “uses AI to read through millions of room rate descriptions and pull out key attributes like room features and upgrades to help travelers pick their best options”. Consequently, in 2023 more customers are going to expect AI chatbots to aid them in the purchase of items and services, streamlining the retail experience.
Influencer and user-generated content marketing
Social media has become a reigning platform for digital marketing content. Besides the usual digital advertisements, influencers and content creators have become essential in influencing purchasing decisions. User-generated content (UGC) is a method that allows businesses to reach potential customers by harnessing content created by people outside of the company, such as influencers. Some examples are unboxing videos, reviews, and social media posts. This method has been proven to be effective too. About 80% of people have bought a product in direct response to content they see on social media. The 2023 State of Social & User-Generated Content has also found that UCG is the most trustworthy business-related content. People are now more drawn to authentic, unpaid reviews from real customers who will have firsthand experience with a business without being affiliated with it. This year, companies can leverage this trust by harnessing the power of user-led campaigns and trends to connect with more customers.
A human side to marketing
The words “digital” and “human” don’t seem to go together, but that is something that people want more of in this highly technological world. People respond well when they see brands showing a more human side to them than generic and highly commercialized statements and promotions. It provides a more down-to-earth approach that encourages deeper connections between consumers and businesses. Leading unified customer experience platform Emplifi predicts that authenticity will be key going into 2023. With social media users (most of whom are from Gen-Z) becoming more skeptical and critical of brands, highlighting the people behind the business or tapping into loyal customers can help foster more trust and interest. Humor and honesty will be incredibly important for content, showing people that you understand what they want and that your business can deliver.
Keeping track of these digital marketing trends can help your business attract new customers and retain loyal ones. With the online landscape heavily saturated by all kinds of content and advertising, you must stand out and make your brand noticeable to your target audience.