In 2023, the market continued to recover, bringing with it many exciting marketing and communications campaigns. As we step into 2024, we have compiled a range of insights to highlight some of the key trends in marketing communications. Our aim is to provide brands with strategic and tactical insights to help them navigate the challenges posed by the economic downturn.

01  | Accelerated AI Integration

In 2024, AI-generated content (AIGC) is set to further penetrate the marketing industry, bringing significant changes to the roles and skill requirements of marketers.

A 2023 report from the Influencer Marketing Hub revealed that nearly 61.4% of marketers have already incorporated artificial intelligence into their strategies, with 54.5% noting a substantial improvement in their marketing efforts. AI is regarded as a powerful "collaborator" that amplifies rather than replaces human potential, enhancing the overall performance of content marketing.

In the past, marketers needed expertise in copywriting, poster design, video production, and editing. But these traditional creative skills may no longer be essential in the future. Instead, marketers are likely to work closely with AI to efficiently produce tailored content.

However, one challenge posed by the growing application of AI is the potential displacement of certain traditional marketing roles. In order to remain competitive, marketers may need to evolve into "super individuals," honing their ability to craft compelling stories - a skill that could become their strongest asset in securing their place in the industry.

02  | The Changing Search Landscape

For marketers, the search ecosystem has become more complex, and relying solely on traditional search engine optimisation (SEO) is no longer sufficient.

Baidu's dominance of the Chinese search market is no longer unrivalled. Douyin's search function now boasts over 550 million monthly active users, while Xiaohongshu receives more than 300 million daily search queries. Additionally, ChatGPT has replaced much of Baidu's functionality for text-based knowledge searches. In this ever-evolving landscape, brands that once focused on search engine optimisation may now need to prioritise content optimisation on platforms such as Douyin and Xiaohongshu. Looking ahead, brands may also need to prepare for answer engine optimisation (AEO).

03  | Super Individuals in the Digital Era

Digital natives have become the driving force behind consumption, and the trend towards personalisation is set to evolve even further in 2024. To make their products more appealing to younger audiences, marketers must understand what resonates with them. Generally, digital natives prefer to see themselves as active participants in a brand's growth journey rather than passive observers. Their engagement on social media and their ability to create content offer brands new opportunities for marketing.

The fragmentation of social platforms and communities has dispersed the gathering spots of young consumers. By leveraging the power of the Internet of Things (IoT) and artificial intelligence (AI), marketers can collect consumer data to build comprehensive user profiles. These insights enable the creation of targeted content that connects with specific audiences, ensuring that the right message reaches the right people at the right time.

Brands can also use consumer preferences to create personalised products and services, enhancing the overall experience and strengthening customer loyalty. In this context, digital transformation may no longer be a competitive advantage, but rather a fundamental requirement for brand marketing. Marketers must continuously refine their skills to adapt to these changes and strike a perfect balance between artificial intelligence and creativity.

04  | Expecting Big Results from Budget-Conscious "Frugal Marketing"

In an era of fragmented information, marketing campaigns that go viral and break through the noise are increasingly rare. The market is flooded with fresh and entertaining content, and consumers’ attention is more easily distracted than ever before. Traditional large-scale creative investments, such as TV commercials (TVCs), are facing declining engagement, and it has become extremely difficult for brands to launch blockbuster campaigns.

In 2023, brands from various sectors continued to experiment with breaking down barriers and collaborating. Terms like "crazy marketing," "cross-industry marketing," and "anti-traditional marketing" emerged, all pointing to one common challenge: shrinking budgets paired with higher KPI demands. Campaigns like the viral "Moutai baijiu-infused lattes (酱香拿铁)" and the high-return collaboration between Fendi and Hey Tea showcased cost-effective models that yielded significant results. Such collaborative, cost-efficient approaches are expected to gain further traction in 2024.

Reports suggest that in 2024, brands will cut their advertising and marketing budgets even further. Agencies, UGC creators, and key opinion leaders (KOLs) may face challenges in sustaining their income. Brands will place even greater emphasis on return on investment (ROI) to ensure that every penny spent on marketing activities delivers maximum impact within a limited budget.

In this market environment, agencies need to adjust their strategies to align with the "frugal marketing" trend. They must also leverage various tools to make marketing expenditure more measurable and efficient.

05  | Emotional Value: Deciding the Fate of Brands

In the consumer market, emotional value is more than just a feeling, but a psychological resonance that taps into the core emotions of consumers. This is why "emotional marketing" has proven to be so effective in business, exemplified by trends such as “dopamine dressing” and other dopamine-inspired campaigns in 2023.

Public sentiment plays a crucial role in determining where a brand succeeds or fails. During the consumer journey, psychological factors often influence behaviour, leading to shifts in purchasing decisions. When the economic landscapes lacks vitality, the market strives to meet consumers’ emotional needs, which is why emotional marketing is expected to continue yielding results in 2024.

Of course, truly connecting with consumers and conveying a brand's sentiment and social values requires more than just focusing on individual products or experiences. As highlighted in a McKinsey report, 60% of millennials are willing to spend more on brands that demonstrate a commitment to corporate social responsibility. Meanwhile, environmental concerns remain one of the top issues for consumers.

Young people expect businesses to take on more responsibility, and they are willing to pay a premium for companies that show strong social responsibility. Consequently, more businesses are actively taking responsibility for consumers, industries, communities, and the environment, building an integrated system of ethical, commercial, social, and cultural responsibility that works towards the greater good. This trend is likely to continue shaping the direction of brand development in 2024.