If you want to lift your future revenue and profitability and understand how to build your future strategy – there is no better place to start – The Brand Disruption 2023: The IAB Annual Report on the Evolving Consumer Ecosystem.
The report considered the role of
- Social media,
- Influencers,
- Metaverse,
Key themes include
- eCommerce growth,
- privacy policies,
- creator economy,
- virtual and augmented reality (AR) shopping in a hybrid online and offline shopping strategy.
The IAB refers to a new strategy – H-commerce. (Hybrid)
Insights
- Established and direct-to-consumer (D2C) brands are recalibrating their go-to-market strategies to meet the expectations of the H-commerce shopper. Brands and retailers are investing in technology to provide seamless H-commerce shopping experiences.
- AR shopping technology is a key to this H-commerce strategy, with a $2 billion market projected to grow 30x by 2031. Nine in 10 Americans currently use or consider using AR for shopping, as interest is both cross-generational and cross-category, and more than 250 million users have engaged with Snap’s AR shopping lenses more than 5 billion times.
Risks
- Privacy legislation and ongoing buyer signal loss have jeopardised the value and vitality of platforms and D2C brands. The costs of the change in legislation in 2022 alone are estimated to be reduced profitability of $12.81 billion for Meta, $546 million at Snap, $2.2 billion for YouTube, and $323 million for Twitter.
- Professionally produced Hollywood-type content will move to content creators – viewers want raw, less edited, more natural viewing experiences. It follows a global push for building more trust. Consumers, Buyers no longer want the highly optimised spin – they prefer reality.
- Attention now costs a lot more – and the cost to acquire new revenue is rising faster than inflation. CPMs are up between 36% and 185% year over year (YoY), and customer acquisition costs (CACs) have risen 60%-300%.
Change is happening now.
- Brand investment in creator content is growing faster than investment in TV and streaming content.
- Content creators are leveraging their power to build successful consumer product brands.
- Viewership of creator content now accounts for a significant share of viewership in America’s living rooms.
- The report suggests that content creators represent 39% of weekly media hours consumed by Americans aged 13 and older vs. 20% for video content on subscription-based streaming apps and 18% for traditional TV content, 38%.
- TikTok generated two times more time on the platform — 22.6 trillion minutes — with content than Netflix — at 9.6 trillion minutes — in 2021.
- The film industry has released nearly half the number of films in 2022 vs. 2019.
- Consumer box office sales are down by nearly $2.5 billion, 31% lower than in 2019.
- According to McKinsey, the metaverse will spend an estimated $2.5 trillion to $3 trillion from e-commerce revenue generated annually by 2030.
Has any brand bridged the gap between the metaverse and the real world?
- Pacsun, and American Eagle, have bridged the gap between virtual browsing that leads to real-world purchases.
- Others include Forever 21, Dick’s Sporting Goods, and Gucci.
- Nearly 30% of global companies will have products and services ready for sale in the metaverse.
- By 2026, 41% of consumers said they would like to be able to shop in the metaverse, and 60% of Gen Z consumers believe brands should sell products in the metaverse.
These are significant changes.
Currently, the average adult watches about
- Five hours of TV via “linear” and streaming sources per day and devotes, by most estimates, about 2-2.4 hours per day to digital video.
Is your business future strategy ready?
It is time to ACCELERATE communities of PASSIONATE NEW BUYERS by fuelling and facilitating their insatiable hunger for authentic content and conversations – so your business captures enormous attention and engagement – influence and sell more.
Now the most valuable asset in the world today is attention.
The FASTEST growing businesses have one thing in common they get more attention on multiple social media platforms – every day.
- More attention first
- Next More engagement
- Influence and Sell More.
Our business reflects the human truth: we are a social and human-first digital agency built on strategic narrative and pitch across platforms.
We accelerate powerful buyer insights gained through micro-content that ultimately influences actual business results.
Your ideal buyer truth is our lifeblood – we are loyal to it, defend it and accelerate it.
There is no longer a single, generic message served to a mass audience – now drive buyer attention and revenue growth by speaking specifically and differently based on who they are, by listening and understanding more.
If you have read this far, thank you for your attention.
There are over 150 free previous newsletters – like this one at accelerateyourbusiness.today – look for the tab – How to Influence and Sell More.
It means a lot. I hope this helped you even a little bit in better making sense of this topic. If so, please, share it with a friend who might also benefit from it.
Thanks for reading,
David
