The Year Ahead: Digital Marketing in the Age of Privacy
As digital marketing becomes less effective and more costly, brands will embrace creative campaigns and channels such as retail media networks and the metaverse to achieve greater returns on investment and deepen community-led customer engagement.
Privacy regulations and technological changes have reduced the effectiveness and driven up the cost of paid digital marketing, meaning brands spent more than three times the amount to acquire each customer in 2022 than in 2013.
Marketing budgets are shifting to alternative channels, such as retail media networks. Spending on RMNs is expected to reach $100 billion by 2026.
Valuable customer data is still up for grabs. Over half of customers said they are more likely to share data if they receive something in exchange, like personalised recommendations.
The seventh annual State of Fashion report by The Business of Fashion and McKinsey & Company reveals the industry is heading for a global slowdown in 2023 as macroeconomic tensions and slumping consumer confidence chip away at 2022′s gains. Download the full report to understand the 10 themes that will define the industry and the opportunities for growth in the year ahead.