Marketers are gearing up for 2025 with both optimism and concern, as revealed by Martin Kihn, SVP Strategy at Salesforce Marketing Cloud. The latest CMO Survey from Duke and the American Marketing Association highlights both excitement about technological advancements and pressure from tight budgets. To help navigate this uncertain terrain, Kihn outlines eight pivotal marketing trends for the coming year.
First, Kihn suggests a shift toward more average content. This trend, which he terms the "pandemic aesthetic," indicates a preference for user-generated content over polished production values, as seen in campaigns from companies like Airbnb and Apple. It reflects broader societal changes, with search engines and social media algorithms pushing for more relatable, everyday visuals.
Secondly, he notes the rise of consumer narcissism. Though it may sound alarming, Kihn points to studies indicating increased self-centeredness among consumers. He challenges marketers to seize this opportunity, exemplified by the resurgence of Old Spice’s successful branding centered on self-confidence.
Thirdly, the best customers are becoming even more valuable to businesses. Kihn emphasizes the trend of retailers investing heavily to delight their most loyal patrons with exclusive experiences, highlighting the rich getting richer.
Another drastic change noted is the potential demise of third-party cookies. Although expected to end on Google’s Chrome by 2024, advertisers are already adapting to new means of online engagement, primarily through apps and streaming media. Kihn forecasts this shift will continue to shape the digital marketing space.
The fifth trend Kihn identifies is the collapse of the traditional marketing funnel. With advancements like shoppable ads enabling instant purchasing, consumers are skipping stages at lightning speed. Cohesive brand experiences are becoming more ubiquitous, as reflected by brands like Geico integrating direct-response technology with advertising.
Data usage emerges as Kihn's sixth point. The emphasis now is on leveraging data for targeted, personalized marketing efforts. Generative AI technologies can now manage creative services efficiently, but the challenge remains how to utilize extensive data accurately.
The seventh observation is the threat posed to introverts by AI technologies, as automation encroaches on traditionally introspective roles. Kihn encourages teams to adapt accordingly, implying organizations must nurture their introverted members with empathy and collaborative opportunities.
Lastly, Kihn remarks, “Every business is now in show business.” This reflects the ever-increasing need for engaging content to capture consumer attention, demonstrated by major industry events attracting celebrities and huge audiences, including Salesforce’s recent Dreamforce conference.
Switching gears from marketing to property, the housing market analysis presented by Mortgage Choice uncovers seven key influencers impacting housing demand and supply. With the domestic housing market valued at approximately $11 trillion, these factors merit close scrutiny.
First among them is inflation, which has shown signs of retreat, yet underlying measures may keep it elevated above the Reserve Bank of Australia’s target until 2025, impacting household budgets and overall affordability.
Following inflation is the consequential high-interest rate environment. While initial projections hinted at possible cuts to interest rates by late 2024, current forecasts indicate rates will remain elevated longer than anticipated, putting pressure on mortgage holders and prospective buyers.
The third influence is the strong labor market, registering low unemployment rates. This has boosted consumer confidence, allowing individuals to invest more substantially, including home purchases. Mortgage Choice indicates, though, the RBA may need to allow unemployment to rise slightly to tame inflation.
Population growth and migration also play pivotal roles. Australia’s economy has benefited from significant net overseas migration, increasing housing demand. Despite discussions on curbing immigration, the influx remains strong, making it pivotal to future housing developments and requirements.
The fifth influence is rising mortgage lending, where new credit commitments are boosting housing demand. Although this creates upward pressure on prices, there are signs growth is beginning to stall due to affordability constraints linked to high interest rates.
Housing construction costs add another layer of complexity. The pandemic has escalated material costs dramatically, particularly for new builds. Current construction costs present challenges for affordability, often making older homes more attractive to buyers.
On the supply side, the Australian government’s Housing Accord aims to construct 1.2 million homes by 2028–29. This ambitious target faces significant hurdles including high costs and rising competition for construction resources, which has made it increasingly challenging to meet pre-sales targets due to costly new builds.
Looking toward 2025, both marketers and property developers must navigate this complex terrain amid shifting consumer behaviors revealed over the past couple of years. With marketing becoming ever more intertwined with digital and personal experiences, and property influenced heavily by economic variables, preparedness, adaptability, and strategic foresight will be indispensable for success.