The Three Marketing Trends You Need to Know in 2020

The Three Marketing Trends You Need to Know in 2020

Over the past 10 years, we’ve seen waves of change to the marketing industry, such as the introduction of new privacy laws and regulations; a greater focus on online shopping and demand generation, including the growth of online influencers; and the explosion of data used to create personalized experiences. 

As 2020 begins, we’re poised to see some revolutionary updates to the marketing ecosystem, especially as technology continues to shape the way brands and consumers interact. In 2020, I expect we’ll see a continued blur between the lines of B2C and D2C, the introduction of personalization and AI to affiliate marketing and an increased focus on privacy regulation.

Brick-and-Mortar or D2C – Maybe Both

Along with the growth in social media, the 2010s saw an exponential increase in direct-to-consumer (D2C) brands, including Warby Parker, Dollar Shave Club, and Glossier, as well as Rakuten Marketing customers, Purple and Simple Contacts, among others. In fact, just from 2017 to 2019, the number of web traffic to D2C brands nearly doubled. 

With the success of D2C, we’re seeing more heritage consumer package goods brands trying to get in on the action—most recently by way of acquisition and investment. For example, in 2019, Edgewell Personal Care, the owner of Schick, bought Harry’s Razors, an online personal care company. And in 2018, Colgate-Palmolive invested in Hubble, an online contact lens subscription service.

The reverse is happening as well. For example, companies like Warby and Away both took their businesses from D2C to brick-and-mortar, giving consumers the opportunity to experience the product first-hand before they buy it. We have seen Mattress Firm and Macy’s now selling Purple mattresses in-store, while Target is aggressively pitching DTC brands and now currently stock Harry’s, Barkbox and Quip product lines in their stores. What’s more, last year, Le Tote, a clothing rental start-up, acquired Lord & Taylor.

Why are we seeing this blurring of lines? D2C companies are digital natives, and often they better understand how to interact with consumers online in an organic way. And at the same time, they’re collecting massive amounts of data that brick-and-mortar don’t always have the ability to capture. Brick-and-mortar also has its unique benefits, such as creating a unique shopping experience and using digital to support in-store efforts, sales, and promotions only available in-store. By working together, D2C and traditional retailers have the opportunity to capitalize on the best of both shopping experiences.

Personalization and AI will Drive Increased Affiliate Marketing

Industry-wide, we’ve seen a trend toward personalization powered by data. That trend has been slower to reach affiliate marketing due to the “if it’s broken don’t fix it” nature of the space. But the modern consumer demands it and the only way that publishers will help align advertiser outcomes to their actual business goals is through data and personalization.

In 2020, affiliate marketing strategies need to be more sophisticated with brands able to engage with the consumer across multiple points throughout the sales funnel and data allowing publishers to offer unique and individual-specific content. This will require the collaboration of advertisers, networks and publishers to safely share data, align on strategies more core to the advertiser's business than simply a flat CPA and willingness of publishers to innovate and evolve to implement more dynamic ad serving capabilities. As with the data-centric evolution of other digital marketing channels, publishers who are early adopters stand most to gain, especially as dynamic commissioning/reward alignment becomes commonplace.

By adding data-driven AI, marketers open up new opportunities, which can help us make more dynamic, real-time, personalized decisions based on consumer information.

CCPA and Privacy Regulation Emphasize Consumer Expectations

Due to the trend of hyper-personalization, brands typically use consumer data for things like increased modeling and segmentation, fine-tuning retargeting and prospecting of potential audiences. But while consumers are increasingly demanding personalized experiences, they’re also more mindful of where their data lives and who has access to it. 

Consumer expectation around privacy is shifting dramatically. Look no further than the California Consumer Privacy Act (CCPA) for proof. As of January 1, 2020, the CCPA will be effective, and marketers will need to be ready.

With the introduction of the CCPA, brands need to be aware of consumers’ right to opt-out of sales, meaning that consumers can choose to withhold their personal information being sold to a third party. As a result, companies need to re-think many of their marketing strategies, particularly those that enable a personalized experience, to ensure they’re compliant.

What’s more, the CCPA will not be the only privacy law to impact marketers in the US. Many other states today have similar laws currently under the draft, including Hawaii, Maryland, Massachusetts, New Mexico, Texas, and Washington. By implementing strategies that align to CCPA, brands can better prepare themselves for various state and international regulations that may be implemented in the coming years.