Quarter 1 of 2022 has come to a close and we are nearly half-way into Q2 . Our prediction for Q2 continues to see further increase in M&As and a consolidation of markets. Throughout Q3 and beyond, we will also see stronger collaboration through joint ventures and initiative. Equally, we will see a down-turn and a change in consumer’s willingness to spend, continued move from global to local markets and an increased use of AI for marketing purposes.
While hospitality and event industries are re-inventing themselves, other business segments are trying to meet the uplift in sales. The job market has turned into a job seeker’s market and the propensity to switch employer has never been higher. There is some slowin
More change is coming and the continued political volatility (caused by more extreme governments, the Ukraine war, the instability around China and the change of conversations in the Middle East ) and a shift from global back to more local markets will continue to drive innovation but also demand more agile (closer to home) supply chains.
The World Bank is predicting slow-down for 2022 and increase of inflation (https://www.worldbank.org/en/news/press-release/2022/01/11/global-recovery-economics-debt-commodity-inequality). In the meantime, we will see the META world growing exponentially and non-fungible-tokens become the ‘speculative-happy’s’ favourite past-time. Unfortunately, this will also mean that many will find escape in this surreal world and an outlet for their gambling habits – and while they are not gambling on sports, they will be giving their money away to purchase yet more non-real-life assets.
This is in the minority world.
The majority world, however, is seeing even further market decline and the developmental chasm will deepen. Yet, a number of countries like India and Nigeria might just prove this prediction wrong. Their recent investment in technology and entrepreneurship has the potential to support some of the newly created supply issues the minority world has yet to resolve.
Now what does that mean for marketing? Here our top 7 marketing predictions for Q2 and some of Q3 2022:
Advertising spending will rise initially with a focus on talent acquisition and small business innovation.
Culture wars in the US and somewhat later in the UK will most likely see more radical advertising and marketing campaigns. A good example of this is the recent campaign for Jeremy’s Razors which is not about the razors, but about a worldview. Brands previously following the loudest voice will have more opportunity to express alternative views. This could provide an interesting platform for creatives in the industry. Not just in Q2 and Q3 but beyond.
Brands need to keep an eye on disruptors from the majority world. Including these in any market research of online analysis will be prudent. Disruptors might not be local to the majority world, but might be a competitor who has chosen to take advantage of the increased know-how in majority world countries coupled with the still relatively low pricing.
Marketers will need to engage with the Meta world whether they want to or not. The talent of tomorrow is likely to hang out in this or similar spaces. Advertising in a magazine just does not cut it anymore :).
PR and what was traditionally known as ‘below the line marketing’ will continue to grow in importance. However rather than courting the media, brands will aim to drive more of their audience to owned media as well as courting them in online spaces. The difficulty will be how to balance resources and the vast array of spaces a brand could engage with.
AI for marketing: the sheer amount of work needed to identify, find and engage today’s online audience will see more and more brands use AI to meet the challenge.
Finally, with an increase in inflation, possible food shortages caused by the war in the Ukraine and resulting supply chain issues for agricultural commodities such as fertiliser, and an increased sense of insecurity, consumers will move to buying less and buying cheaper products or products which seem to offer more value. Marketeers need to be aware of this change and consider that anything which indicates price hikes or sacrifice for things such as Net Zero might no longer be welcomed as readily as in previous seasons. A shift in messaging will be away from “Net Zero” towards “Energy” and “Energy Security” in all its forms.
We live in a time which will require marketeers to think very strategically about the long-term market development. More than ever, it will be important to give time and resources to understand not only the economic situation but the impact the political stage will have on business, brands and spending.
(To read our Q1 forecast post, click below.)