Marketing trends 2023

The deprecation of third-party cookies has piled on to the advertising challenges. Apple and Mozilla have already done away with cookies, and Google isfollowing suit in 2024. When Apple started letting its customers opt in to tracking in October 2021, advertisers lost30% accuracyon targeting algorithms overnight, costing an estimated$10 billion USDin ad revenue. Big tech’s move toward more consumer privacy is making it harder for brands to reach their target audiences, generate traffic, and measure the effectiveness of their efforts.

But these companies are just responding to what people are asking for: more privacy. Only33% of customersbelieve brands use their data responsibly, and regional governments are stepping up to protect their citizens. New and updated legislation around the world, such as in California, China, Brazil, andthe EU, is adding to the growing number ofprivacy lawscoming into effect.

There’s no denying that privacy regulations are strangling marketers’ ability to target potential customers. Boston Consulting group found that95% of marketershave already experienced the downsides of these data privacy trends or expect to in the coming year.

For brands that depend on third-party data in their marketing, personalization at scale is one of the many downsides. But71%of consumers still expect a personal touch, and 81% of brands agree that unique, personalized experiences play an important role in future commerce growth.^*So the challenge is finding new ways to replace the role of third-party data in marketing.

Many brands are collecting their own customer data to fill the void left by third-party cookies. In some ways, this is an upgrade. Third-party data is getting more expensive, often only available for a limited period of time, and theaccuracy is questionableat best. Some studies say businesses overestimate ad effectivenessupwards of 4,000%.

In contrast, businesses have total control over their own customer data. They know exactly when, how, and why the data was collected, and it belongs to the business forever. And because this data comes from consumers who directly interact with the brand, the information is more likely to be relevant. What’s more, customers want an integrated, transparent, human experience, which third-party cookies are not cut out to give.

Some good news for customer acquisition out of the disruption is that more people are open to trying new brands. It didn’t look like consumers were willing to buy from new brands in 2020, when38% of customersincreased their spending with an individual retailer. But once the strictest lockdowns eased up and more options hit the market, 41% of consumers switched brands.

Whether new stores, new products, or new buying methods,75% of consumerstried something different during the pandemic. And now, thanks to inflation, consumers are on the hunt for the best value, making them even more open to change.Two out of three shoppersabandon brands for better deals, and 58% switch in search of higher quality products.

But there’s still one big question first-party data can’t answer alone: How do brands find and attract these new customers? The answer that’s emerging for forward-thinking brands is collaboration.

1. Collaborate with other brands

The buzz around a collab creates new excitement for long-time customers and ripples into hard-to-reach markets. Brands get new eyes on their products and a fresh take on their brand.

New Balance used collabs to completely transform its brand image from dad shoe to highly coveted hype shoe. After more than 100 years as a sneaker brand all about function, actors, rappers, andsupermodelsare now spotted rocking the footwear.

Partnerships in diverse markets, from music to acting to sports, give New Balance the clout to tell stories that resonate with more fashion-conscious audiences. In the United States, it's only behind Nike and Adidas asthe top brand in the performance footwear category. The brand also taps into regional markets through collabs with apparel brands like Parisian luxury label Casablanca and Japan's WTAPS. This master of collabs is shooting for$7 billionin sales by 2023.