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2023 Digital Marketing Forecast: Short Videos, Augmented Reality, and Targeting Gen Z

Stella Gradiana
July 10, 2024

Digital marketing is evolving at a rapid pace. New technologies and trends are emerging that shape how businesses reach and engage with their target audience. From the continued rise of Artificial Intelligence (AI) and machine learning to the growing popularity of augmented reality, the next few years promise to be an exciting time for digital marketers. In this article, we'll look at some key trends that might shape the digital marketing landscape in 2023 and beyond.

1. Short videos will take over the content game (TikTok, Instagram Reels, YouTube shorts)

The rising trend of the short video is visible with the growing popularity of Tiktok, Instagram Reels, and Youtube shorts in 2022. Tiktok, for instance, reached 1 billion users in Q2 2022 worldwide. At the same time, Instagram reels have garnered over 289 million active users from June 22, 2022, to January 2023. And now, those numbers will keep increasing.Β 

Here are some tips if your business is tapping into this trend:

  • Keep it simple: Keep the message clear and avoid using technical language. Many people watch short videos as a way to pass time, so make sure your message is easy to understand and use language that your audience will be familiar with.
  • Stay Creative: Video platforms provide an extensive range of music, frames, and other decorations to make your video more attractive. Experiment with those and see how your audience reacts.Β 
  • Keep up with the trend: Monitor current events and popular trends, they can be a great source of inspiration for your content, but it's important to consider how they align with your brand before jumping on board. Choose carefully which trends you want to follow.
  • Resize them to fit your social media: Make sure you resize your content based on the social media standards specs. So, your videos are nicely uploaded without any trimmed parts.
  • Measure the engagements of your videos. Once you have uploaded your video content, keep track of how it is performing by monitoring the traffic and engagement rate. Analyze the data to determine which content your audience is responding to positively and negatively. Use this knowledge to create more engaging videos that will appeal to your audience.

2. Augmented-Reality Experiences

Augmented reality (AR) enables shoppers to virtually try products before making a purchase, without having to visit physical stores. While the cost of developing AR technology can be high, it can greatly influence customers' buying decisions. Studies have shown that 61% of shoppers prefer to purchase from retailers that offer AR experiences.

Here are some steps you can take if you are thinking about using AR Experiences:

  • Research software such as Amazon Sumerian or Wikitude to create your augmented reality experience, and select the one that fits within your budget.
  • Include your AR on your website and provide clear instructions on how to use it for optimal experience. Consider adding tutorial videos to further assist users.
  • Implement a pop-up feedback system for your customers to provide their experience, this way you can gather information on what needs to be improved.

3. Marketing and ads will be more targeted toward Gen Z.

As Gen Z matures, their online interaction evolves. For example, over 60% of TikTok users and 51% of augmented reality users are part of this demographic. Additionally, 51% of online shoppers are aged 16-25. Given that Gen Z plays a dominant role in the market, it is important for businesses to target them effectively. Some suggestions for marketing to Gen Z include:

  • Emphasize on how you can provide value. Highlight to your audience the ways in which your products/services address and alleviate their issues. Given the large amount of advertising materials they are exposed to, it is important to immediately demonstrate the tangible benefits and advantages of using your products/services.
  • In addition to promoting your valuable goods, it's important to establish a positive connection with your clients. Establishing a relationship with your audience can lead to positive testimonials, as people are more likely to continue using and recommending products from companies that actively engage with and listen to them. Building this connection can lead to increased word-of-mouth promotion through social media.
  • Around half of the Generation Z demographic are known to follow and take inspiration from individuals with a strong online presence, referred to as influencers.. Collaborating with influencers can be beneficial as 40% of Generation Z discover new brands through them. Even if they don't immediately use your products, influencers can help introduce them to your brand and showcase how your products align with their needs.

4. AI recommendation tools and technology will become more prominent.

Within a brief period of six days, ChatGPT has been used by over a million people.The rapid growth of conversational AI is a clear indication of the increasing popularity of AI technology. Another popular AI-based tool is You, which combines both search engine and conversational AI. Which helps you find the most relevant results from the web and apps that you can sort and prioritize for optimum search experience. Even your daily apps, social media, Netflix, and Spotify, have used AI to recommend your next watch or songs to listen to.

5. Live stream commerce and shop

Marketplaces like Shopee have been successful in using live streams to promote products by collaborating with influencers. These live streams feature discounted products and help drive sales by guiding customers through the purchasing process. Some tips for doing this effectively include:

  • To boost sales and exposure for your products, consider listing them on a marketplace and taking part in their live stream events. Marketplaces like Shopee and Alibaba frequently collaborate with influencers to promote products during these streams, but it's worth noting that you may not have control over which influencers will choose to promote your products, and commission fees may apply.
  • One strategy for increasing sales is to work with influencers who conduct live-stream commerce on platforms such as TikTok, Facebook, or Instagram. If you already have an influencer who resonates with your target audience, partnering with them for a live stream event can be an effective way to drive conversions.
  • When conducting a live stream, it is important to limit the number of products promoted to a small range, such as 1-5, in order to ensure that your audience is able to focus on the message and take action. This approach is especially important to keep in mind, as some viewers may only be tuned in for a short period of time.

So there you have it. By incorporating these five trends into your digital marketing strategy, you can set yourself up for success in 2023. Revamp your approach and put these ideas into practice to drive sales, enhance brand loyalty, and expand your digital following.

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