You know that performance marketing has always been fast-paced, but lately, it seems like things are changing at warp speed. New channels, strategies, and technologies emerge almost daily, and it's hard to keep up with the latest trends reshaping the industry. But stay with us - we've been tracking the key shifts defining the future of performance marketing, and we're going to break down the 5 trends you need to understand to stay ahead of the curve. From the rise of AI to the emergence of influencer marketing at scale, performance marketing is evolving in exciting new ways. Read on to learn more about the trends poised to disrupt performance marketing as we know it and transform how we connect brands with customers. The future is now, so let's dive in!
The Rise of Artificial Intelligence and Machine Learning
The rise of artificial intelligence and machine learning is transforming performance marketing. AI and ML are enhancing the entire customer journey.
Personalized Experiences
AI uses data to understand customer preferences and behaviors, then tailors the best experience for each individual. Things like personalized product recommendations, customized content, and targeted messaging are all made possible by AI. For marketers, this means more relevant campaigns and higher customer engagement.
Improved Targeting and Attribution
Machine learning algorithms can detect complex patterns in huge data sets to determine which customers are most likely to convert. AI also helps determine how much credit each marketing channel deserves for a conversion or purchase. This makes budget allocation and ROI measurement much more accurate.
Automated Optimization
AI and ML don't just gather insights, they act on them. Campaign elements like ad copy, images, keywords, and more can be automatically optimized to maximize performance. Bidding strategies for paid advertising also become automated and optimized over time. This frees up marketers to focus on strategy rather than tedious optimization tasks.
The future of performance marketing is AI-driven, with technology handling the optimization and execution of campaigns. But human marketers are still needed to think strategically, ask the right questions, and ensure AI systems are aligned with the heart of the brand. AI may be transformative, but for now at least, real intelligence still comes from real people.
Leveraging First-Party Data and Customer Identity
These days, customers expect personalized experiences tailored to their needs and preferences. To deliver that, you need to tap into first-party data - information you collect directly from customers.
Leveraging Customer Identity
By connecting customer data across channels (web, mobile app, email, etc.), you can build a single customer view and truly understand their journey. (-) Map how they interact with your brand at each touchpoint. (-) See what they buy, how much they spend, their interests, and more. (-) Then use that insight to provide customized content, product recommendations, and messaging.
First-party data also allows you to avoid relying solely on third-party data providers. While they have a place, first-party data is more accurate and targeted. It puts you in control of the customer experience and relationship. With strong customer identities, you can:
(1.) Deliver personalized experiences. Tailor content, offers, and communication to individual customers based on their attributes, behaviors, and preferences.
(2.) Improve targeting and segmentation. Break down your audience into smaller groups based on specific characteristics to optimize marketing campaigns.
(3.) Enhance predictive analytics. Analyze customer patterns to anticipate needs and make data-driven predictions about future behavior and lifetime value.
(4.) Strengthen loyalty and retention. Provide the type of customized service and experiences that turn new customers into lifelong, high-value ones.
First-party data and robust customer profiles are instrumental for success in today’s digital landscape. By gaining a single, insightful view of your customers, you can serve them in a personal way and forge lasting relationships - the holy grail of performance marketing.
Shift to Omnichannel Experiences
As consumers engage with brands across more channels, delivering cohesive omnichannel experiences is crucial. This means coordinating messaging and offers across websites, mobile apps, social media, email, and more.
Consistent Branding
Having a consistent brand identity across channels helps create familiarity and trust. Use the same logo, color scheme, voice, and tone everywhere. Little details like promotional fonts and imagery should also remain consistent. This unified experience makes your brand seem more authoritative and helps customers intuitively navigate different touchpoints.
Seamless User Experience
An omnichannel strategy aims to provide a seamless experience regardless of channel. Your customers should be able to start an action in one place and pick up where they left off in another without frustration. For example, a customer finds a product on your website, saves it to view later. They then continue browsing the product on their mobile app and eventually purchase through your mobile checkout. The entire experience felt cohesive.
Personalized Content
Using data collected from various channels, you can personalize content and offers for customers. Send an email for a product they viewed on your website. Show social media ads for items left in their cart. Tailor on-site product recommendations based on their browsing history. Personalization makes for a customized experience that resonates more with each customer.
Coordinated Promotions
Run coordinated promotions and campaigns across channels to maximize impact. If you have a sale or new product launch, promote it on your website, in emails, social media posts, ads, and any other channels you use. This multi-channel approach means more customers will discover your promotions, and see them reinforced at every touchpoint.
An omnichannel strategy strengthens your connection to customers by providing a seamless, consistent experience with your brand across every channel. By coordinating branding, user experience, content, and promotions, you can build familiarity, loyalty, and sales. The future of performance marketing depends on engaging customers wherever they are. Focusing on omnichannel experiences is key to making meaningful connections in an increasingly multi-channel world.
Privacy Changes Impacting Targeting
Privacy regulations like GDPR and CCPA are changing how companies can collect and use people’s personal data. As privacy laws expand, performance marketers need to adjust targeting strategies.
Limited Data Collection
New privacy laws restrict how much customer data companies can gather and share. Performance marketers will have access to less data for targeting ads and personalizing the customer experience. With less data, targeting may become less precise.
To overcome data limitations, focus on first-party data from your own website and apps. Also, look for compliant ways to enrich profiles with third-party data, like surveys or loyalty programs. Provide value in exchange for people sharing more about themselves.
Consent Required
Obtaining consent for data use and tracking is now mandatory in many areas. People must explicitly opt-in to having their information collected and used for targeting.
Make consent easy to understand and provide options for people to consent to different uses of their data. Be transparent about how data improves their experience. Those who don’t consent may see more generic ads, so find other ways to provide value to them.
Data Anonymization
Some new laws require anonymizing or deleting personal data after a period of time. Performance marketers will need to continually refresh targeting data.
Look for ways to safely anonymize and aggregate more data to expand your targeting datasets. Partner with compliant data providers who specialize in persistent identity and data management solutions.
Privacy changes bring challenges but also opportunities. Focus on strategies that respect customers, provide value, and work within the new rules. Performance marketing will continue to evolve and target precisely, even with less data. But the future depends on using data responsibly and keeping the customer experience in mind.
Emergence of Streaming and CTV Advertising
Streaming media and connected TV (CTV) advertising are shaping the future of performance marketing. As viewers shift from traditional TV to streaming services and CTV, brands and marketers need to adapt.
Growing Popularity of Streaming
More people are cutting the cord and switching to streaming services like Hulu, Netflix, and YouTube TV. Streaming media has become mainstream, with some estimates showing nearly 70% of US households subscribing to at least one service. This shift in viewing habits means streaming platforms and CTVs now dominate a large portion of people’s screen time and attention.
Targeting Capabilities
Streaming and CTV advertising provide enhanced targeting options based on viewing behaviors and interests. Brands can reach audiences that are more likely to engage with their ads and convert. Data from streaming services and CTV devices give marketers insights into viewers’ content preferences, allowing for hyper-targeted campaigns.
Interactive Ads
Streaming and CTV open up opportunities for interactive, engaging ad experiences. Interactive ads, like overlays, banners, and takeovers, encourage viewers to participate and engage with the brand. Things like shoppable ads, augmented reality ads, and choice-based ads are all possible on streaming and CTV platforms. These unique ad units achieve higher engagement and conversion rates.
Measurability
Perhaps the biggest benefit of streaming and CTV advertising for performance marketers is its trackability. Marketers can see impressions, interactions, and conversions to determine an ad's effectiveness. Many streaming platforms and CTV devices provide marketers with robust analytics and reporting to optimize campaigns.
Streaming media and CTV advertising are poised to dominate digital marketing. As more audiences switch to streaming, brands will need to allocate more of their ad budgets to these channels to achieve the best performance marketing results. Staying on the cutting edge of these trends will be key to success.
Conclusion
That's a look at five trends shaping the future of performance marketing. As AI and automation continue to advance, the lines between creative and performance marketing will blur. Personalization will become hyper-targeted. And with the growth of new channels, marketers will need to take an omnichannel approach to reach customers wherever they are. The performance marketing landscape is evolving fast. But by staying on top of trends and adapting to changes, you'll be able to connect with customers in more meaningful ways. The future is bright for performance marketers willing to embrace innovation. What trends are you most excited to leverage in your marketing efforts? The possibilities are endless.
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