2021 Brand Marketing Outlook

Where We Were There are a lot of words that could be used to describe 2020—“unprecedented,” for one; “pandemic” is an obvious choice. But if you’re a brand, the word that best encapsulates the year is “pivot.” Pivoting is precisely what brands, big and small and across categories, had to do starting in March. The marketing community united around the need for rapid adjustments and overhauls. It was an impressive accomplishment, because the world of brands is a massive one, encompassing companies that make the products we desperately need in times of crisis—ahem, toilet paper—and those we most definitely do not, as much as we like them (looking at you, $1,000 handbags). All brands seemed to realize that trends steadily creeping up on the horizon were much closer than they had anticipated. CMOs started the year with a focus on the consumer—creating more personalized experiences for them, providing them with a variety of ways to access their brands, and standing up for causes and issues they believe in. The events of 2020 didn’t change those priorities but, rather, made them paramount. “A lot of brands talked about being incredibly customer-centric,” says Jared Fink, group director, experience at Siegel+Gale. “[In 2020], that was put to the test.” Where We Are Now Brands provide services we scarcely used prior to the pandemic—how many weddings were hosted on Zoom pre-2020?—as well as ones that feel like something from another lifetime. (It wasn't a great year for selling transatlantic flights.) The events of 2020 pushed to the forefront just how varied the positioning of those different sectors really is—and thus, what pivots they were forced to make. Companies such as Lysol and Clorox soared in 2020, thanks to an unprecedented demand for their products, forcing them to ramp up production. That, in turn, allowed them to increase ad budgets, something Clorox did three times in 2020, including a 30% bump in the final quarter of the year. Other success stories of 2020, like Zoom, which saw downloads of its mobile app increase 728% from March to April, also put more dollars toward advertising. Zoom allocated $100.9 million in the fourth quarter of 2020, up $45 million from the previous year. But the chaos of the pandemic resulted in more calamity than it did positivity. Travel brands are the most prominent example, with demand—and revenues—falling off a cliff. That impacted their ad spend: Very few airlines ran TV ads in 2020, save Southwest, which was often the only airline advertising on television. Retail, outside of behemoths like Amazon, Target and Walmart, was hit hard, too, with 38 retailers and restaurants filing for bankruptcy, including J.Crew, Neiman Marcus and JCPenney, compared to just 19 in 2019. Where We're Going In 2021, brands will double down on the bets they made in 2020—rolling out new loyalty programs, like Walmart+; embracing new methods of getting goods in consumers' hands, like curbside pickup or launching new direct-to-consumer channels; and trying out new advertising platforms like TikTok or, for some brands, TV (1,200 DTC brands ran TV ads for the first time in 2020, according to iSpot.tv). And even in a future world where we’re meeting in person more, the shift to digital will persist. IBM’s U.S. Retail Index reports that the pandemic has accelerated the move from physical stores to ecommerce by five years. In 2021, that shift will continue, as brands embrace tactics like livestreaming in commerce, which has already made waves in China, and shopping on social media platforms, thanks to the 2020 debut of Instagram and Facebook Shops. “There’s a really big opportunity for brands that jump into live commerce early next year,” says Kevin Gould, CEO of brand development company Kombo Ventures. Prioritizing diversity Brands came under a new degree of scrutiny when it came to diversity and inclusion in 2020, not only in outward-facing efforts, but also internally. And though the pressure isn’t quite as intense as it was in June in the wake of nationwide social justice protests that began in response to the deaths of George Floyd and Breonna Taylor, it’s a priority consumers have shown they won’t ignore when making purchasing decisions. Brands will continue to make diversity a priority in 2021, but hollow messaging without action won’t cut it. There’s a really big opportunity for brands that jump into live commerce early next year.Kevin Gould, CEO of brand development company Kombo Ventures "Brands need to not take this as just a moment in time, and they need to look at it as ongoing, where they're continually checking themselves and checking in to make sure that they're on the right path," says Gould. "They need to do the right things for both their team as well as consumers." New consumer expectations The pandemic forced brands to be nimble, evaluate their strategies and make adjustments. In 2020, all businesses dealt with a unique set of circumstances brought on by the pandemic, and as it begins to fade, it will force them to recalibrate once again. The arrival of 2021 is multifaceted: While the U.S. faces its worst days yet when it comes to coronavirus case counts, hospitalizations and deaths, vaccines offer signs of hope for recovery. But when consumers—and brands—emerge into the post-pandemic world, it will be one defined by a greater demand for options and ease. Yes, brands need to offer services that were on hold during the pandemic, from experiences to brick-and-mortar shopping, but they need to do so alongside the innovations that 2020 brought. No longer, for instance, will a lack of proximity to a major metropolis be an excuse for not offering something to a consumer—the digitization of 2020 has made sure of that. Even when in-person experiences return, expect a virtual component so anyone can take part, no matter where they’re located. The need for flexibility will permeate nearly every aspect of a brand’s business, particularly in how they’re offering their products to consumers. The events of the past year have meant that ignoring tactics like DTC websites and BOPIS [buy online, pick up in store] is no longer an option. "[The pandemic] has accelerated our ability to reimagine convenience," says Fink. "Brands have been forced to look at how their brand reaches people all over these new touch points, or ones that they didn't invest in as heavily. And now, we're seeing brands can be much smarter, much simpler and much more adaptable." Check out all of our 2021 Outlook coverage here.

Magazine

Changes Already in Motion for Brands a Year Ago Will Only Accelerate in 2021

The future was much closer than anyone could have anticipated at the beginning of 2020

Where We Were

Diana Pearl

About

Subscriptions

Events

Publications

Where We Were

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Diana Pearl