As the UK officially enters recession, economic uncertainty has perhaps been the defining theme of British daily life in the post-pandemic era, leaving an indelible mark on every facet of industry.
Inextricably indexed to the public’s levels of disposable income, the marketing and advertising industries have taken quite a hit over the past few years to say the least.
Only now, close to four years after the first lockdown, are we starting to see the green shoots of recovery.
We are also seeing the dawn of a brave new age of technology, with the rise of AI set to play an ever-increasingly pivotal role in how we work and live.
It also won’t have escaped most people that we are in the midst of a worsening climate emergency, with sustainability naturally becoming a vital concern for marketers.
We speak to UK agency leaders on the defining themes of the last year and how it will shape the year ahead.
Katie Grosvenor, chief engagement and growth officer, GroupM
Cost-of-living
GroupM’s latest ‘This Year Next Year’ report found that the UK and most global economies faced challenges in 2023 due to rising costs, interest rates and inflation.
2023 has seen a decline in the creation of new businesses and a reduction in consumer spending, with the consumer confidence index remaining below 100 during October 2023, according to OECD.
Automation
With the rise of automation this year, consumer experiences have become hyper-customised and algorithmically driven. This has led to a desire for shared experiences amongst consumers, and brands are leaning into opportunities to reach consumers in community settings, such as at sports and fan-based events.
Direct-to-consumer
We have also seen advertisers prioritising deeper and more direct relationships with consumers throughout 2023. In particular, the automotive, media and entertainment sectors have increased the personalisation of messaging and opted for disintermediating customer marketing as a way to develop these one to one relationships with consumers.
Jack Lewis-Barclay, strategy director, Havas London
Working on a brand like Asda, it would be impossible not to mention the cost-of-living crisis, which has been a key theme in 2023.
Yet, in the backdrop of this, it’s the resilience of the British consumer that has impressed us most.
We’ve seen people employing a wide range of savings techniques, not just to make ends meet, but to protect the things that are most important to them and keep on buying the things they enjoy the most.
Just because we have a little less money, doesn’t mean we’re willing to compromise on quality or morals.
It seems that brands that are able to offer an element of pleasure, enjoyment or credibility, at a price that feels right, are the ones most able to weather the storm.
Grant Hunter, global executive creative director, Iris
There’s a cost-of-media crisis going on. Clients are feeling the squeeze on their budgets and need to do more with less.
We are living through the participation era and the way in which ideas travel has changed. Owned and earned are way more powerful than paid. Knowing how to connect into communities is key if you want to play a meaningful role in people’s lives.
AI’s impact is just starting to be felt across our world and with that comes big questions about what is real and what is fake.
Deep fakery puts truth under the microscope. Misinformation continues to spread. But can also create moments of giggles – nice jacket Mr Pope.
Ultimately AI will be worked into our creative workflow as a tool to speed up our iterative processes, so that we can explore more possibilities faster. That said, creativity needs to connect emotionally. If we just create with, and for, the machines (or the algorithms) we’ll fail to create ideas that truly move people.
Greenwashing is being called out with greater frequency so brands can’t just virtue signal. With the recent COP28 the need for urgent action continues to increase.
The UN has said we are at ‘boiling point’ and the next generation are growing impatient with inaction. They are demanding leadership and policies that will kick start a green economy.
Planet and profit can live hand in hand, so let’s use our collective creativity to drive desire for more sustainable ways to live – after all, the future is ours to create.
Lameya Chaudhury, head of social impact and client partner, Lucky Generals
In 2023, our industry has been shaped by three themes in producing impactful work.
Eco-Integrity, Not Greenwashing
Brands must now embrace genuine sustainability, ensuring their claims are backed by solid data or risk the wrath of the ASA.
The recent Make My Money Matter (Oblivia Caolmine) cleverly exposes £88 billion of UK pension savers’ money is invested in fossil fuel companies in a delightfully wicked way.
True Diversity
Beyond tokenism to real representation in ads, in practice and our talent pipeline. Forging the right partnerships such as the Diversity Standards Collective to bake in DEI in your operations or supporting pathways into the creative sector with talent like Speakers for Schools (Don’t Let the Nepo Babies Win), Unsigned Collective, and Commercial Break.
Community Commitment in Tough Times
With the economy down the sh*tter brands are stepping up to the plate to tackle societal needs. Co-op already has community hardwired into their business model, any profits are invested back into the business and then together with their members, they provide financial support to thousands of local community causes.
Hannah March, chief growth officer, Fold7
There are many macro issues influencing our industry at present but sustainability must be the biggest, and it’s a priority for agencies and clients alike.
In a recent survey Fold7 conducted with senior marketers, it came out as the top strategic focus for businesses over the next year.
As an agency, every single brief that comes through our door comes with expectations on us to provide information as to how we are addressing our ethical and environmental impact. It’s something talent asks about when they are considering roles. It’s the single most important thing we should be doing for future generations
Sophie Whike, client partner, Brandwidth
It’s been clear this year that the marketing landscape is evolving at an unprecedented pace. The surge in leads and pipeline opportunities has been nothing short of remarkable, however, the challenge lies in the conversion journey.
While the influx of leads is a testament to the effectiveness of our strategies, the translation of these prospects into tangible conversions requires a nuanced approach.
Going forward understanding and adapting to the dynamic needs of our potential clients is our top priority. It’s not just about casting a wide net but refining our approach to resonate with the individuality of each lead.
