The field of advertising is moving towards increasing personalization, and traditional agencies need to change their approach
Despite the impact of the pandemic, the advertising market has survived steadily in 2020 and continued to develop in 2021. This is confirmed by global statistics on advertising spending.
We are seeing growth in all directions except print, which is not surprising in the online age. Let’s talk about what the Ukrainian media market is like today, what trends have emerged now, and where the industry is heading.
Focus on consulting and partnership
World-class experts have long noted that the trend of automation has begun to affect the strategic approaches of advertising agencies. Ukraine is no exception. Media agencies in the classical sense are disappearing, and in their place there are players who understand that the future is not for the purchase of placements in various channels. New Wave agencies are fully responsible not only for their business, but also for the business of clients.
Market players need to realize that today only those brands that know how to communicate with their target audience at the right time in the right place will win, and this is impossible without constant monitoring of context, technological innovations and trends. This is the strength of professional teams that have the necessary flexibility and resources for consulting.
Such transformations have led to the fact that agencies, having a major specialization, provide clients with a much wider range of services. For example, Havas Creative Group Ukraine includes seven agencies, and each of them has its own focus. At Forward Media, we specialize specifically in media, but our main principle is that media and creativity cannot exist separately. Due to the fact that our group has strong expertise in all areas of marketing, if necessary, we connect other teams to work with the client, even if the task is beyond our specialization. This strategic approach has already been adopted by many market players, although, unfortunately, not all.
Data becomes the main asset of the business
According to a global Kantar survey for 2020, 51% of marketers believe they do not have enough data to make decisions. And they are willing to do much to get that data. To reach consumers in the current flow of content, you need confidence that you are targeting your potential customer.
Research, econometric models and data science come to the rescue. And, if the Ukrainian business is already accustomed to the first and second and actively uses them to transform the strategy, then data science is still lagging behind.
Indeed, by Ukrainian standards, such services require considerable budgets, but it is important to understand what you are giving up. First of all, we are talking about the ability to make informed decisions with minimal risk.
Thanks to data science, the agency team can create a model that will:
- based on the latest trends, taking into account all sorts of influencing factors;
- identify new opportunities for the brand;
- imprisoned for testing these decisions in order to constantly transform the realities of the market;
In this way we get the most effective of the existing tools for making business decisions. And while in the global market companies are already actively using this opportunity, the Ukrainian market is still only cautiously looking at such an option. Therefore, the first to make this leap will be able to qualitatively ahead of competitors in the battle for the consumer.
We go to personalization
Global lovemark brands already prove by their example that the formula “data + personalized approach” is equal to effective communications. The trend towards personalization is gradually manifesting itself in all channels of communication and at completely different levels. Here are some examples:
1. Values as the basis of the approach. According to the global Havas report “ReAct & Beyond COVID-19”, society has changed its attitude towards brands. 71% of prosumers (progressive consumers) believe that large companies can be drivers of positive change. People expect that business will prove its commitment not only in word but also in deed. These same values help consumers determine whether your brand is right for them or not. Therefore, it is important to make sure that the company’s strategy fully reflects its values. Over time, your transparency and integrity will be appreciated.
2. Content. The ability to transform content based on individual demographics, behavior, and preferences increases the chances that a brand addresses relevant content to each consumer.
3. Microcommunication to replace reach. If for another ten years everyone aimed at the media with great coverage to cover a larger audience, today the focus is shifting to niche publications. The scale of the content that the user has to consume every day has forced the media market to gradually move to the principle of “niche”, which makes it easier for the audience to choose. The same thing happened with the sphere of influencer marketing — I mean the trend towards macro-, micro- and nano-influencers. A minus in coverage can mean a plus to the quality and efficiency of communication.
These are not all trends in personalization. They are largely determined by the development of technological innovations and how quickly they adapt to the needs of the marketing industry. As for the Ukrainian market, in the next couple of years these innovations will come to us.
The Ukrainian advertising industry has every chance to develop over time. But this process is influenced by both external factors and the position of agencies and company representatives. Each of us affects the industry in one way or another. Therefore, working together to bring more bold decisions, experiment and use the latest innovations could help us on the path to development.