If you want to know where your marketing is heading, two events in January will help set the stage for the year. CES (Consumer Electronics Show) opened in Las Vegas in early January, followed by NRF (National Retail Federation event) which just concluded in New York.
This year, both shows were bigger and better than before. It's another sign that the pandemic is in the rearview mirror. His CES, “the world's largest technology event,” attracted 135,000 attendees. Nicknamed “Retail's Big Show,” NRF features over 300,000 square feet of exhibit space and has featured keynote speakers from everyone from Walmart US CEO John Furner to Drew Barrymore (of her Beautiful brand). Ta. What I can attest to is that NRF was huge. All the major companies were exhibiting, with some booths bigger than my apartment.
January may be “dry” for some, but this conference cocktail provided six “marketing truths” to guide your thinking for the coming year.
Marketing Truth #1: The consumer is the product
The days of products in marketing are long gone and everything now needs to revolve around the consumer. This means new levels of customization and personalization, from messaging to products to experiences. Artificial intelligence (AI) can help drive that change. There was a lot of evidence at NRF, including the launch of new AI-driven features in Microsoft's Azure OpenAi service that enable retailers to build personalized shopping experiences. But beyond the technology, it's also important to perform a service to the customer, not the company. As 7-Eleven's Marissa Jarratt said on the main stage, “Be open, seek to understand, and listen.” absolutely. We need to capture and act on consumer-first insights and offerings in everything we do.
Marketing Truth #2: The store is the epicenter.
Most purchases (and an even larger percentage of purchase impact) still occur in physical stores. At NRF, we hear that the next generation is on the rise. Love Brick-and-mortar stores – because of the level of brand experience and social engagement that stores offer. H&M's Linda Lee argued that Gen Z customers “actually prefer to shop in stores.” Physical stores are also at the heart of a retailer's pickup ecosystem and form the hub of a retail media network. And now stores are getting smarter and starting to match targeting and traceability online. If you're a digital native, why not try it out for yourself? If you're a traditional physical retailer, consider prioritizing investments in physical channel upgrades, from store construction to technology integration to overlays like AR.
Marketing Truth #3: If it’s not unified, it’s broken.
Omnichannel was once a dream, but now there is a cost of entry. What is essential is to tightly connect the entire consumer experience, with different channels performing different roles at each stage of engagement. Everyone should be committed to building the brand and doing business unapologetically. It's easy to say, but hard to do, and shoppers are immediately penalized if there's a break in the chain. Direct-to-consumer (DTC) platform companies are at the center of this transition. They have a strong track record in and around his NRF and are building the ability to connect all channels beyond e-commerce.
Marketing Truth #4: We are in an era of collaboration
No one person, company, or technology vendor can do it all well. Partnerships are key: between brands and creators, marketers and agencies, and companies and technology vendors (or even between technology vendors). A great example at NRF is “Buy with Prime.” This allows Amazon to make Prime benefits available to non-Amazon brands, such as one-day shipping and off-platform payments. The whole concept of a “configurable technology stack” is also a partnership effort, selecting the best technology solutions that can be “configured” into a consistent offer.
Marketing Truth #5: AI is the head, but humans are the heart
AI is prevalent at both CES and NRF and is a game-changer in so many ways. But it is meaningless unless it is used in a humane way. It's insightful, relatable, and helpful. At CES, Walmart talked about his GenAI Search. For example, if you type in “Super Bowl party,” the app will intelligently show you everything you need, from chips and wings to a new 90-inch TV. At NRF, bitHuman introduced an interactive virtual assistant that he trained by AI to answer questions about the event and direct attendees to snack bars and restrooms. One retailer I spoke with is using AI to personalize messages in ways never before possible, increasing his conversation rates by 30-40%. The formula for success for marketers in 2024 is technology + humanity + creativity.
Marketing Truth #6: Retail media is taking over.
I attended the all-day sold-out Retail Media Networks event at NRF. Retail media is gaining attention because they can link impressions to sales at his SKU level. Anyone with an audience knows they are in the “business of monetizing attention” and is thinking about how to turn their physical retail footprint into a media network. When used properly, retail media can deliver not only sales but also brand value. This is why modern marketers are diverting money from mainstream media and terrestrial television to retail media. (In fact, as WARC points out, retail media will overtake linear TV “within a few years.”) Retail media advertising spending will reach approximately $70 billion in the U.S. alone by 2025. It is predicted.
January has re-energized me about what is possible now and in the future. My final “truth” is simple. There's never been a better time to be a marketer, but we believe it's important to blur the distinction between brand and commerce marketing. To me, it's all about commerce. And don't be overwhelmed by the countless possibilities. Develop your own set of truths and use them to navigate your path this year.
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