Publication: These 7 technologies change marketing – What marketeers need to know to be successful in the future
Hype or fundamental change – which new technologies should marketeers understand? The trend report of the newly founded Big Marketing Technology Lab identifies 7 relevant technology trends:
– Voice Interaction, Virtual Reality, Chatbots & Co: How do customers want to interact with brands in the future?
– Programmatic Buying, Targeting & Influencer: How do I reach my consumers?
– Algorithmic Consumption & Artificial Intelligence: How can I use these technologies?
This is a pivotal moment for marketeers. New technologies are reshaping markets, the way we interact with our consumers, and their behaviors. Across industries, incumbents have to re-think their marketing strategies and their relationship with consumers, whereas start-ups often seem to understand today’s consumer better. At the same time, consumers want more, they want it faster, they want it to be easier, and they want to pay less for it.
How do you make sure to stay on top of these developments and changes? And which of the changes are relevant? We have identified 7 that we are convinced are already today impacting how companies and consumers interact and will be instrumental in shaping the future of marketing:
1. Voice marketing and branding: Consumer adoption of smart speakers is faster than that of smartphones.
For marketeers, voice touchpoints in the form of voice assistants or skills are radically different from traditional touchpoints. For instance, voice touchpoints emphasize auditive cues over well- known visual cues such as product packaging or brand logos. Brands have spent years and millions building and optimizing their visual identity, be it their brand logo or brand color, but only a few brands have thought about their auditive identity.
2. Algorithmic consumption: The internet of things (IoT) is expected to quadruple in size over the next six years.
Already today, consumers watch movies recommended to them by the Netflix algorithms, they listen to the Discover Weekly playlist created for them by the Spotify algorithm, and in Switzerland, they can let the VIAC investment algorithm manage their private pension account according to their pre-defined risk preferences. What seems restricted to movies, films, and finance right now is quickly becoming applicable to all product and service categories.
3. Programmatic marketing: 85% of marketeers already buy media programmatically.
The age of gut feeling in marketing is over. 2019 is the first year in which more than half of all advertising spending has been on programmatic ads. Programmatic ads are bought via effective, instant, and automated bidding processes, which deliver relevant ads to selected customers. Programmatic ads come with challenges though – with which even some of the world’s biggest marketeers are grappling. Nevertheless, if used correctly, programmatic marketing allows the targeting of specific customers to a far greater extent than before.
4. Chatbots: More than half of the global population is already using messenger services like WhatsApp, Facebook Messenger, and WeChat for their private communication – and they expect companies to do the same.
Messenger apps have broadened the phenomenon of asynchronous communication: Consumers write their friends messages before they, e.g., enter their next meeting, and then read all the replies when the meeting is over. When synchronous and asynchronous messaging styles clash, it is a recipe for consumer frustration. Consumers hate re-describing the same problem over and over to several customer agents on the hotline. In view of the above, it will become a necessity for companies to have a fully proficient chatbot that can interact with consumers and human customer service agents alike.
5. Cord-cutting, the subscription economy, ad-blocking, and the death of radio and print – consumers are becoming elusive.
Consumers are retracting to ad-free subscription services or using ad blockers, thus significantly cutting down possibilities for advertisers to reach consumers. Advertising has essentially become a “tax on the poor”, who cannot afford the subscription fees to the ad-free services like Netflix, YouTube Premium or Spotify Premium. Companies also need to think of alternative channels for marketing such as brand stores or by using PR and earned media to their advantage.
6. Virtual consumption experiences: Virtual-reality-capable devices are expected to quadruple until 2022.
Consumption experiences in particular, which are consumed for the feelings and the experiences they deliver but come with a lot of unwanted costs and downsides, are set to be disrupted. Whether this is the entertainment industry, the feeling of driving a fast and exciting car, going on holiday or seeing a football game in the stadium, it is likely that all of these experiences will be impacted by virtual reality in the coming years.
7. Artificial intelligence (AI): 85% of marketeers will be applying artificially intelligent software by 2022.
There are many areas set to be revolutionized by AI: predictive customer analysis, personalization, social listening, sentiment analysis, image recognition, product tagging, to name just a few. Due to the many possible applications, the rate of adoption of artificial intelligence is simply staggering and it is quickly becoming the new standard.
Become part of the Big Marketing Technology Lab!
The Big Marketing Technology Lab (BMT Lab) is a cooperation between the University of St. Gallen and leading companies from various industries. Together we want to understand the most important future technologies and help companies to implement them in their organization.
In addition to exciting trend reports, participating companies will have the opportunity to exchange information on marketing tech topics with leading company representatives from other industries in several workshops. An experienced team of researchers from the University of St. Gallen moderates the dialogue and generates exciting insights that can be used to inspire the entire company.
More regarding our research:
- Gollnhofer, J.F., Mönninghoff, A., Fuchs, M., Tomczak, T. (2019): Seven Technological Developments that will Shape the Future of Marketing. http://ici.unisg.ch/en/bmt-en/
- Gollnhofer, J. F. & S. Schüller (2018): Sensing the Vocal Age: Managing Voice Touchpoints on Alexa, in: Marketing Review St. Gallen, pp. 22-29.
- Gollnhofer, J. F. & M. Fuchs (2019): Alexa is Talking to my Customer, in: Gesellschaft für Marketing Schweiz (Gfm) Forschungsreihe 3/19.