CMOs Under Pressure in 2023: Forrester Research Predictions

It is a short-term marketing that is taking shape for 2023 in a context of crisis. This is presented by Thomas Husson, consultant for the analyst firm Forrester Research. It anticipates key marketing trends in 2023 in the face of the looming recession. He spoke at the event organized by Alliance Digitale on 1er december.

Priority to performance marketing in 2023

He notes that in a context of uncertainty, we often focus on the short term, on performance. This will have consequences for the recruitment of new marketing directors. ” In 2023, more than half of the marketing directors who will be appointed will have a performance profile rather than Brand Building, customer experience or loyalty. Unfortunately, that is what is likely to happen. We play on safety he laments, he who relies instead on investing more in customer loyalty and in the customer experience.

Digital advertising makes it possible to measure better, to target better, to be more flexible and more agile

This obsession with performance will result in greater use of digital in the field of communication and advertising. ” Growth in the advertising market will be driven by digital because digital makes it possible to measure better, to target better, to be more flexible and more agile. he lists. The advertising market in the United States will decelerate but will still be growing. ” We will go from 10% growth in 2022 to between 4.5% and 5% in 2023 says Thomas Husson. Digital will represent 67% of media budgets in 2023.

But the choice of digital channels will change. ” The growth of digital advertising will be driven by the channels that drive performance. It will be less social media, less Twitter, less Meta, but more Search and Retail Media which will explode from 29 billion dollars in 2021 to 62 billion in 2024 » announces the consultant.

Martech costs will increase by +20% in 2023

At the same time, marketers will see their spending on martech, that is to say their marketing technologies, increase by +20%. ” It’s a lot warns Thomas Husson. This significant increase in costs is due to the fragmentation of the solutions market, their integration cost and the upcoming increase in the price of software licenses.

We will have to integrate the solutions in a ‘Best of Breed’ logic with integration costs

We are in a market that is still quite fragmented, with a lot of specialized solutions, vertical, by channel, on mobile, etc. They will have to be integrated into a ‘Best of Breed’ logic with integration costs he describes. Furthermore, ” we are dealing with fairly fragile players, who will have difficulty obtaining financing from investors in 2023, and investors will be asking for a return on investment. These players will then increase their prices and the cost of licenses he analyzes.

The use of new technologies such as “Data Clean Rooms” risks being paid at a high price by some companies. Thomas Husson states that two emblematic brands risk suffering from the Data Clean Room because they have not sufficiently anticipated the problems of Data governance and respect for privacy.
Another challenge for 2023, the customer experience will only be mastered by a few companies. ” Companies that master the customer experience and its return on investment and understand that it is a cross-functional business discipline will outperform. They will be about 10% “says the consultant.

Lack of internal skills will degrade the customer experience

Conversely, 1 in 5 companies risk seeing their customer experience programs disappear or merge with others, i.e. being less cross-functional in the company and not reporting to the management committee. he announces. More globally, ” perception of customer experience is expected to erode in three-quarters of industries by 2023 due to lack of internal skills he finishes.

“The metaverse is a non-subject in terms of investment priority for brands”

Should we invest in the metaverse now? ” The metaverse is a subject that must be tested but it is a non-trend for 2023 in terms of investment. Obviously, you have to test whether you are in luxury or training, but it is a non-subject in terms of investment priority for brands. he advises.

In the end, he recalls that it will also be necessary to carry out a global strategy of sustainable development, of decarbonization of the company, passing in a logic of frugality and sobriety. What Forrester Research calls the “green revolution”. ” It’s a business issue, a change of economic model. And it is the role of the marketer to help people consume differently notes Thomas Husson. ” We will gradually move to a circular economy, to a logic of use rather than possession and to trust rather than commitment. It’s gonna be hard to do he concludes.

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CMOs Under Pressure in 2023: Forrester Research Predictions
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