As 2023 comes to an end, strategy reached out to several professionals to take stock of which trends and innovations had created the most change in the marketing industry this past year, and where the industry is moving, looking forward to 2024. Pictured above from left to right, Sephora Canada senior vice president of marketing Allison Litzinger, P&G Beauty Canada country leader Lisa Reid, GE Appliances Canada chief brand officer Bob Park, OLG VP, brand and marketing officer Maxine Chapman each offered their own takes about what to expect from the new year.

What do you think were the most seismic changes of 2023? How do you predict those changes will evolve in 2024?

OLG’s Maxine Chapman: There is a perceived downward trend in the quality and reliability of social media sites due to concerns over negativity, hate and racism, including AI-generated misinformation. This will impact the way we connect and engage with consumers in 2024. Video content continues to drive engagement, but consumers crave authenticity (the word of the year in 2023). Authenticity isn’t easy, but distilling it in a way that resonates with the target audience will be more important than ever. Brands need to capture and showcase real people telling real stories – consumers want to see real faces behind the brand and how authentically a brand or product can help solve their problems.

Sephora Canada’s Allison Litzinger: Economic uncertainty played a huge role in consumer buying behaviours this year. As inflation persists, more shoppers are becoming mindful of their spending, which is driving more commoditization and price-driven shopping. At the other end of the spectrum, shoppers are being really choiceful and putting their money behind brands whose values align with their own. 

We’ve seen this evolution happen slowly over the last few years or so, but I’d really say the last year saw consumer values significantly factor into the decision-making process more than ever. 

We’ve also seen that consumers are still spending on categories that bring them joy, looking for uplifting brands and products to treat themselves.

Most predict that economic uncertainty and global conflict will continue, and therefore price sensitivity and consumer mindset will be affected. In a way, brands can be an escape for consumers, and their products can bring a sense of personal joy and identity. [Next year], I see more brands playing into this emotional brand building and deepening values to stand out.

Personalized marketing will continue to be important in 2024. As consumers become even more discerning with their spending, tailoring marketing messages to meet individual preferences and needs will help build loyalty.

GE Appliances Canada’s Bob Park: The economic changes, particularly increased mortgage rates and inflation, have indeed been seismic. If this trend continues into the first half of 2024, it suggests that consumers will likely continue to face financial constraints, impacting spending behaviors. The prediction for a brighter outlook in the latter part of 2024 will bring economic stabilization. The contrasting impact on different industries, with some experiencing a decline in spending while others see an increase, indicates a dynamic market. If this trend persists, businesses should tailor their strategies based on the specific demands and challenges of their respective industries.

P&G Beauty Canada’s Lisa Reid: The truly seismic shift in our culture occurred during the pandemic and we have been witnessing the ripple effects of those changes ever since. In 2023, these shifts continued to evolve in the form of three major trends.

The first was the need to serve more Canadians and drive diversity to a level of depth that we haven’t seen before. As the federal government implements its plan to welcome half a million new immigrants by 2025, the landscape will shift for brands and marketers in terms of how they will be able to reach our beautiful changing population, and meet their different and new needs.

As immigration increases in Canada, I think our understanding and awareness of these different cultures and perspectives will deepen and impact the way marketers connect with consumers. We won’t have a one-size-fits-all approach, but more personalization and broader integration of diverse cultural needs and norms. For example, we’re seeing shoppers in Canada make use of Xiaohongshu or Little Red Book, a popular social shopping app in China, to find deals here. Instead of purchasing items in Asia and shipping them to Canada, they’re adapting a platform that was useful to them back home and using it in Canada. As a result, marketers will have to customize their messaging to these new and unique platforms.

The second change is a heightened awareness and concern around spending and value. In this challenging economy, the cost of living is on the lips of every consumer. With this in mind, marketers have had to really consider the value of their brand, product or service as Canadians think even more carefully about their spending choices. We’ll see marketers continue to think about the value of their products and services in a world where there are very real cost pressures for Canadian families, whether that is expanding their “force for good” efforts so that their brand stands for something more than just the product benefit, or whether that’s making that product benefit stretch further or do more.

Finally, the third evolving trend we’ve seen that has received a lot of attention this past year is the adoption of artificial intelligence to serve consumers better. It’s no longer this shiny new toy that was viewed as a novelty more than anything else. Now, we’re seeing marketers use it to mine data to achieve better outcomes for Canadians, and to help us be smarter and more efficient with our media spend and insights. Marketers will continue to grapple with how they can embrace this technology to work smarter and more efficiently without replacing the heart, emotion and thinking that can only come from humans. It will be about using AI to help us mine through data and simplify processes, and then taking that data and finding the humanity and value in it for consumers.

If you could bet on the next big opportunity for marketers in 2024 – what would it be?

Chapman: Sustainability and purpose will continue to play a large role in purchase decisions. Knowing that a brand is taking meaningful action to contribute to communities, societies and the environment is very important. Action, results and a ‘never satisfied’ approach that is authentically true to the brand’s values will be vital in winning share of mind and share of wallet.

Litzinger: Consumers respond to personal, emotional and human connection. In an era of tech and data, the brands that are able to unlock the relevance of these tools in a meaningful 1:1 human way will stand out.

Park: My key advice to marketers would emphasize the importance of agility and the ability to pivot quickly. This aligns with the dynamic nature of consumer demands and economic conditions. Marketers need to be responsive to changing circumstances, ensuring that their campaigns and products remain relevant throughout the year. Canadians remaining budget-conscious and value-driven early in the year indicates an opportunity for marketers to tailor their messaging and offerings to these specific consumer sentiments. Recognizing the potential shift in consumer behavior from budget consciousness to more of a willingness to spend later in the year suggests that marketers should be prepared to switch tactics. Being able to communicate value early on and transitioning to appeals that align with changing consumer attitudes can be a winning strategy.

Reid: Unsurprisingly, I think artificial intelligence and its application in marketing will be the biggest opportunity in 2024. More specifically, how marketers can use this technology to resonate with a more diverse Canadian population in an engaging way that doesn’t replace human connections and human insights.