How is Technology Transforming Traditional Marketing?

Marketing is an ever-evolving industry and new trends are constantly emerging. With the development of new technologies and the digitisation of traditional marketing techniques we can see that in 2022; digital marketing is an integral element to integrate into your marketing strategy (Mody 2022).

The creation of the ‘Metaverse’ has been a hot topic in 2022 – so what exactly is the metaverse and how can we as marketing managers and marketing consultants utilise the metaverse within our marketing strategy?

The ‘Metaverse’ is described as “a fully immersive internet, where we will be able to access augmented and virtual reality and interact with all sorts of environments using persistent avatars and innovative digital technology” (Marr 2022, 1). In plain terms this means that there is a virtual world available for people to access using only their smart devices and computers. Some examples of how we can use the ‘Metaverse’ to market and promote brands include the use of virtual games, branded NFT's, virtual retail locations and virtual native advertising such as the use of virtual billboards and banners (Peer to Peer Marketing, n.d).

Figure 1. Metaverse

With the development of the ‘Metaverse’ we have also see an increase in the use of augmented reality and artificial intelligence within brands marketing campaigns. Augmented reality and Artificial intelligence is certainly one of the biggest trends that we will see more and more in the future of marketing. Within the last 3 years we have seen a number of successful marketing campaigns with brands who are embracing technology; particularly with the disruptive Covid 19 pandemic and subsequent restrictions limiting access to traditional retail stores and services.

Here is a great example of how AR and AI technology has been used by brands - launched in May 2021 a limited number of brands including e-retailer ‘Farfetch’ and global designers Prada and Dior partnered with social media application ‘Snapchat’ to launch a virtual try on service. Utilising 3D body mesh technology to replicate real life fit and cloth simulation to create movement of fabric (McDowell 2021); customers are able to experience the benefits of a real-life dressing room in their own homes. “70% of consumers feel that finding clothes online that fit is really difficult, and returns are a $550 billion problem for businesses” (London 2021,10) - By integrating this technology into their marketing strategy, the brands have increased buyer confidence and subsequently increased sales and decreased returns. Brands utilising AR and AI technology within their marketing strategy show successful results; for example while partnering with Snapchat AR technology Prada saw a 6.2x return on ad spend (London 2021, 13) and “Farfetch said revenue rose 35 per cent to $2.3 billion in 2021 over 2020 , breaking $2 billion for the first time, driven by increased volume on the Farfetch marketplace and sales at Off-White parent New Guards Group.” (McDowell 2022, 1).

Check out these tips to get started with AI marketing here

Here is a list of some further ideas on how you can use AR and AI technology within your marketing strategy (Hall 2019):

1. AI generated content

2. AI data collection and management

3. AR branded marketing materials (e.g. filters on social media)

4. AI driven chat bots

5. AR to create virtual experiences

6. AI to create smarter advertisements

Figure 2: Benefits of Using AI for Marketing Personalisation Worldwide 2018

References

Hall, Jason. 2019. “How Artificial Intelligence is Transforming Digital Marketing.” August 21, 2019. How Artificial Intelligence Is Transforming Digital Marketing (forbes.com)

Hubspot. 2020. How Can Marketing Get Started With Artificial Intelligence?. YouTube Video, 6.40. URL. https://www.youtube.com/watch?v=MlON_2p4Bg8

Keegan, Georgina. 2022. Marketing the Future. Vimeo Video, 0.20. URL. https://vimeo.com/752783504

Lau, Wilson. 2022. “Metaverse.” Search Engine Journal: https://www.searchenginejournal.com/metaverse-marketing-primer/448706/#close

London, Lela. 2021. “Virtual Try-On Is More Than A Pandemic Trend And These Brands Are Reaping The Rewards.” Forbes, May 20, 2021. https://www.forbes.com/sites/lelalondon/2021/05/20/virtual-try-on-is-more-than-a-pandemic-trendand-these-brands-are-reaping-the-rewards/?sh=172bff0f6c82

Marr, Bernard. 2022. “A Short History of The Metaverse”. Forbes. May 21, 2022. https://www.forbes.com/sites/bernardmarr/2022/03/21/a-short-history-of-the-metaverse/?sh=70bceac85968

McDowell, Maghan. 2021. “Snapchat Boosts AR Try-On Tools: Farfetch, Prada Dive In.” Vogue Business, May 21, 2021. https://www.voguebusiness.com/technology/snapchat-boosts-ar-try-on-tools-farfetch-prada-dive-in

McDowell, Maghan. 2022. “Farfetch Revenue Rises 35 Per Cent to $2.3 Billion.” Vogue Business, February 25, 2022. https://www.voguebusiness.com/companies/farfetch-revenue-rises-35-per-cent

Mody, Shivani. “Marketing Trends 2022: The Good, The Bad and Ugly.” Outgrow, n.d, 2022. Marketing Trends 2022: The Good, Bad, and Ugly (outgrow.co)

Peer to Peer Marketing. n.d. “Metaverse Marketing: 2022 Ultimate Guide (The Future of Marketing.” Peer to Peer Marketing. Accessed September, 2022. Metaverse Marketing: 2022 Ultimate Guide (The Future of Marketing) (peertopeermarketing.co)

Statista. N.d “Benefits of Using AI for Marketing Personalisation Worldwide 2018.” Statista. Accessed September 20, 2022. Benefits of using AI for marketing personalization worldwide 2018 l Statistic | Statista

List of Figures

Figure 1. Wilson Lau, Metaverse. 2022, Digital Image. Reproduced from: https://www.searchenginejournal.com/metaverse-marketing-primer/448706/#close

Figure 2. Statista, Benefits of Using AI for Marketing Personalisation Worldwide 2018.”. 2018, Chart. Reproduced from: Benefits of using AI for marketing personalization worldwide 2018 l Statistic | Statista