Companies to prioritise services over products in marketing: Essence report

Essence has released a unique report on the future of advertising based on the predictions of experts across academia, business, marketing, technology, publishing, and advertising trade organizations around the world.

The study evaluates the likelihood of 15 different scenarios occurring over the next decade and assesses the implications of each for the future of advertising. Each scenario tested explores the influence of a key dynamic or catalyst, from the use of biometric data to personalization, privacy, artificial intelligence, virtual reality, regulation, payment models, and more.

“As an industry, we have lots of insight into how technology is likely to evolve over time,” said Kyoko Matsushita, Global CEO at Essence.

“We conducted this study to provide more clarity about what that evolution will mean for advertising and marketing, to identify issues in need of the most urgent attention, and to help companies prioritize their innovation and marketing transformation investment decisions,” Matsushita said.

Of the scenarios tested, experts surveyed were most confident about the likelihood of a future in which environmental considerations play a major role in consumer purchasing decisions, and the emergence of a new form of marketing interaction, in which companies and consumers outsource decision-making to automated personal assistants and bots.

The key findings from the report include:
● Companies will need to become more transparent, sustainable, and purpose-driven to meet the expectations of post-Millennial generations over the next decade.
● While experts are optimistic that AI will eliminate inefficiencies without creating widespread joblessness or eliminating the need for people, individuals and companies will need to create new kinds of jobs and embrace new fields in which to apply human creativity.
● Advertising will continue to enable access to content and services for many people, especially in developing countries, but experts also predict companies will begin to prioritize services over products in their marketing. Experts deemed it unlikely that people will be able to opt out of advertising entirely but expect subtler forms of marketing like product placement and sponsorships - integrated into frictionless services and experiences - to play an increasingly important role.
● Biometric data is likely to be established as a key component in consumer identity information by the end of the decade, making it necessary to focus on the development of corporate strategies and policies capable of securing its use.
● In lieu of global regulation, experts predict that companies will collaborate to establish standards across transactions, identity, and security that will enable new payment and exchange models that will create scalable alternatives to subscription-based commerce.

“Advertising plays such an important role in supporting access to reliable news and information, driving culture, and advancing the global economy - we need to make sure it remains sustainable,” added Matsushita.