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What Will Marketing Look Like in 2025? ‘It’s Going to Get Weird.’
Retail executives and branding experts predict how companies will–and won’t–be reaching consumers this year. Article originally posted on INC.
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If 2024 felt like the year of weird for consumer brands, which produced such products as beer-infused ice cream, pretzel perfume, and hot fudge sundae-flavored sparkling water, get ready. Marketing campaigns will likely only get weirder this year.
That’s the prediction from serial entrepreneur and branding consultant Tom Rinks. The co-founder of sunscreen brand Sun Bum and the brain behind Taco Bell’s famous chihuahua says the fundamental goal of branding will always be manufacturing an aspirational image for companies and products, but what qualifies as aspirational can evolve over time. Right now, Rinks says, the cool factor has a funkier flavor best epitomized by the canned water company Liquid Death, which has catapulted into a $1.4 billion juggernaut.
“It is going to kind of be a little bit more of a wild west next year,” says Rinks. “Could be less politically correct than we’ve ever been.” As founders strap in for the ride, here are the marketing trends that he and other retail executives will be watching.
Post-omnichannel play
If the retail industry in 2024 could be summed up in one word, it arguably would be “omnichannel.” Consumer brands embraced a strategy of everywhere all at once. Everyone from one-time direct-to consumer darlings like Allbirds and corporate giants like Nike embraced wholesale. Founders even started selling their blouses and leather totes on UberEats. But this year, Shopify president Harley Finkelstein sees that approach changing. Instead of selling in multiple channels, he says, brands will focus on fewer, more strategic channels in an interconnected way.
“When I look at the most important brands and entrepreneurs on the planet and how they’re finding success, they’re not selling everywhere. They’re selling in the right locations for the particular demographic,” Finkelstein said last week at the National Retail Federation’s annual convention in New York. “This is almost post-omnichannel.”
Also speaking at NRF, New Balance president and CEO Joe Preston dubbed the approach selective distribution. “We’re not everywhere,” said Preston. “We do business with retailers that we believe are going to want to position the brand premium and are not just fitted to try to discount.”
Increased personalization
Marketing executives are also betting on providing increasing personalization for customers. Max Magni, the chief customer and digital officer at Macy’s, says that is a core strategy for the department store chain, which also owns Bloomingdale’s and the beauty retailer Bluemercury. “It’s not about just personalizing the offer and giving you a different discount,” said Magni at NRF. Instead, the retailer is prioritizing personalization in its customer service and call centers.
Still, personalization can be a slippery slope. Emily Silver, the chief marketing and athlete experience officer at Dick’s Sporting Goods, warned about the potential downsides when brands take the personal touch too far and leave consumers feeling data-mined and exposed.
“Personalization is exciting, but to me, it’s also quite scary,” said Silver. “Because personalization is really good when it goes well, and it’s really bad when you do it badly.” She adds, “There are privacy issues.
We’re all trying to go for the same access to that data, and that, to me, is the tipping point that we’re all trying to figure out.”
Authenticity versus AI
As artificial intelligence becomes increasingly advanced and more widely used in advertising, Tom Rinks says maintaining a semblance of trust and a human touch will be even more important for brands.
“It’s just so saturated now,” Rinks says of consumers’ social media feeds. “It used to be, ‘I don’t believe it unless I see it.’ You can’t believe anything you hear. Now, it’s, ‘You can’t believe anything that you see anymore.’” He adds, “All of these bad, fake generated things are going to get more and more suspect.”
The best way to cut through that AI noise? Authenticity, he says. “In the future, that’s going to be even more and more critical, that there’s a human behind it,” says Rinks. “You have to be real. You can’t fake anybody out, Gen-Z and Gen-Alpha especially. They get it. They see.”
Experiential stores
Retail executives also predicted that the rise of AI will push more consumers offline and into stores, making a company’s brick-and mortar presentation even more important. To differentiate themselves, Dick’s Sporting Goods, Macy’s, and Sephora are all focusing on curating experiential stores.
Rinks echoed that strategy. “We’re going to want more physical interaction, rather than digital ones,” he says. “It’s going to get weird with retail. I think they’re really going to have to focus on experiences.” That is not a new strategy. Still, Rinks says stores centered around discovery and “the treasure hunt” will be the ones that stand out, because “it just feels so good to find something that everybody else doesn’t have.”
UGC over influencers
Magni says consumers are also feeling over-influenced and that brands need to adjust their strategy when thinking about social media ads. “Influencers are becoming out of fashion pretty quickly. It’s not about the professional influencers that I should be listening to, because they’re telling me stories, and they sponsor a brand,” Magni said on a panel at NRF. Instead, consumers are looking to their own networks and communities for recommendations. “It’s about user-generated content.It’s my peers.”
Over-indexed on virality
Influencers are not the only digital marketing lever that might be extinguishing–or at least waning–for consumer brands. With the future of TikTok still uncertain, founders should not bet on achieving viral success. Instead, Rinks says brands should focus on growing one customer at a time, like Sun Bum did after it launched in 2010.
“They’re going to have to get back to the basics,” says Rinks, “and not just rely on all this, the hype beast of everything happening with TikTok.”
All of the effort into going viral, he says, can be much more effectively harnessed. “I could be talking to one person. I could be having a one on-one connection with a person. That’s going to close that sale or get them to be a part of our community,” he explains. “That’s what the brands that I think are going to win do.”
Sports power
With an increasingly decentralized media landscape and fewer sitcoms and dramas rising to the watercooler level of past shows like Game of Thrones or Breaking Bad, Rinks argues there is really only one kind of appointment television left for marketers: sports.
He predicts, “Sports will continue to get bigger and larger advertising hits.”