[ad_1]
We are nearing the end of another year where war, economic turbulence, political power shifts, climate change, and technology disruption kept the world on its toes. However, we are nowhere near the end of the domino line set off by these events.
The impact of these global events will continue to shape economies, industries and business operations in the coming year. For brands trying to stay stable and profitable in the circumstances, the priority would be to align their core values to the key drivers of growth and profitability in this volatile market.
Geopolitical influence
Global geopolitics will be one of the most significant influencers of business and brand strategy in 2024.
According to the World Economic Forum’s ‘Chief Economists Outlook’ report, geopolitics will create economic volatility in the year ahead. Nearly three-quarters of the experts interviewed for the report believe that geopolitical tensions will hinder progress towards global development targets in the next three years, while 59% expect tighter financial conditions to have the same effect.
Apart from the Russia-Ukraine unrest, the Israel-Palestine war, and China-Taiwan tensions, Goldman Sachs Asset Management noted in its 2024 investment outlook that elections in the United States of America, United Kingdom, South Africa, India, Taiwan, and Russia will affect an increasingly precarious global economy.
Given these viewpoints, brands and their communications advisors will need to exercise sensitivity to navigate political developments with discretion, empathy, and expertise.
In 2014, Christophe de Margerie, the former CEO of French energy conglomerate Total, had said when asked about Russia’s annexation of Crimea: “We are involved in business; we are not involved in politics.” Compare this to 2022 when Russia advanced on Ukraine. Stakeholder demands, international sanctions, and consumer pressure, amplified over social media, demanded that brands react – and fast. Over 1,000 companies curtailed operations in Russia, proving that brands can no longer ignore political developments in the geographies they operate in as they are bound to have a direct impact on supply chains, customer bases and reputation.
Data is the real deal
With the power of sophisticated technology in the fray, the communications game is getting edgier by the minute. And one of the key plays is data and data analytics.
Be it consumer analytics, business intelligence or risk analysis, different forms of data analytics can help create audience-specific and relevant PR strategies with measurable outcomes. Combined with creative thinking, data analytics in storytelling can help make communications more engaging and impactful.
Moreover, data on important key performance indicators like SEO improvement, media reach, earned media, and audience behaviour can help measure and evaluate outcomes, justify decisions, and inform future efforts. The result: finding the right solution for the right client at the right time.
From the brand perspective, real-time data-driven customer insights is tech gold.
Yet, the Adobe Digital Trends Report shows that less than a quarter of senior business executives considered real-time customer data activation a top operational priority in 2023.
For future success, though, brands will need to remedy this as data can be the key differentiator to inch past competition by getting to customers swiftly and smartly. Gen Z consumers seek personalised content that is delivered quickly and respects their privacy. They quickly disengage if the content is excessive or irrelevant. A laser focus on gathering data, analysing it, and getting actionable insights in real-time needs to be part of every brand’s growth roadmap.
Rise and rise of AI
This has been a decade of exciting technology disruptions, especially in Artificial Intelligence (AI). A clear AI adoption roadmap will be indispensable for any business that wants to become an industry leader by the end of the decade.
Generative AI technologies are emerging as powerful collaborators to organisations in creating and automating customer experiences as well as internal operations. They are potentially groundbreaking tools for communications practices, too, allowing for improved efficiency, particularly in tasks that can be automated.
However, there are limitations – like intellectual property issues, cybersecurity, and cost implications – for brands to be wary of while using AI. Research on AI adoption, conducted by WE Communications in partnership with North America-based USC Annenberg Center for Public Relations, recorded major reservations among communications leaders across the US regarding factual errors and misinformation (61%), fake information/disinformation (58%), data privacy (45%), information security (44%) and unknown/potential legal ramifications (43%).
It’s only fitting then that the need for caution is now being recognised as critical for AI adoption at the governmental level. The recently concluded AI Safety Summit, hosted by the British government, saw 28 nations sign the Bletchley Declaration to work together on AI safety research. At the organisational level, businesses need to put measures in place to protect sensitive information, intellectual property, and proprietary strategies.
With secure practices in place, AI technologies will serve as an empowering co-worker, enhancing productivity and ingenuity while complementing human qualities like emotional intelligence, strategic decision-making, and creative thinking.
Greater need for creativity
AI is now a go-to source for all kinds of content – from brand taglines to blogs and videos to websites. Add to that the advantage of speed. However, the key differentiator between AI tools and human talent is ingenuity and emotion.
This is especially true of brand communicators. Creativity – fueled by intuition and emotion – lies at the core of communications and messaging. To ensure uniqueness and prevent content from being mass-produced, practitioners must take their creative efforts several notches higher.
However, if industry experts are to be believed, an increasing number of senior customer experience (CX) leaders agree that organisations face internal barriers that impede creative work.
Weaving a tapestry of customer data, insight, human truth, and empathy into content and campaigns is essential for creating meaningful customer experiences. But only 22 per cent of practitioners, surveyed for the Adobe Digital Trends Report 2023, were found to excel in balancing data and algorithms with human insights effectively.
At the same time, allocating time for creativity is also growing to become a key impediment for several organisations. According to the Adobe report, 41% of leading practitioners cite ‘lack of time to be creative’ as a CX barrier.
AI-human collaboration could provide a solution to this problem. AI-powered content automation can be deployed to streamline processes, freeing up teams to focus on the creative process.
Purpose will persevere
No matter how far and fast society, the economy or technology evolves, purpose continues to – and will always – remain the gold standard for brands that claim to walk the talk.
Consumers today are feeling the stress of a disrupted world, and they want brands to play a bigger role in easing that stress. So, communications practitioners will need to keep brands focused not only on environmental priorities, like closing in on their carbon footprint and net-zero goals, but also on nurturing diverse and inclusive outlooks, practices, and spaces. WE Communications’ 2023 Brands in Motion (BiM) research, titled ‘It’s Personal: The New Rules of Corporate Reputation’, demonstrates that these practices constitute the bedrock of a brand’s standing.
That is not all, though. A key aspect of corporate reputation and purpose fulfilment is transparency. People want brands to demonstrate their commitment to making the world a better place, but they are not entirely convinced about the honesty of efforts being made.
One way to counter this scepticism is by being more communicative and sharing hard data, employee testimonials, admissions of shortcomings, and more. Worldwide, three out of four BiM respondents (four out of five in India) agreed that brands should practice transparency when communicating to the public regarding their actions in response to current and emerging societal issues. Being transparent with data that proves a company’s actions and results is ranked No. 1 by 76% of people (73% of Indian respondents) as the most authentic way for companies to talk positively about themselves, followed by customer testimonials or reviews (61% of Indian respondents) and content that explains what the company is doing and why (55% of Indian respondents).
Brands that take a bolder approach to communicating their progress and impact in the areas that matter most to consumers are gaining respect and loyalty for their actions.
Conclusion
If there is one thing that is certain about the year ahead, it is uncertainty.
However, resilience is now in the business DNA thanks to the global crises that have been unfolding in quick succession over the last few years. We now have lessons in adaptability, creativity and perseverance that can help us dodge any curveball.
So, with our finger on the pulse of what’s coming next, it is important that we make an effort to bring in stability, pivot for growth and stay positive. In other words, brace for impact and be ready to bounce back when the dust settles.
(The author is the regional executive managing director of APAC, WE Communications, and the group CEO of Avian WE.)
In this panel discussion, industry experts deep-dived into the impact of Generative AI in digital marketing, while also underscoring the importance of navigating the ethical considerations.
[ad_2]
Source link