KeyTrendsof2024

Recent years have been full of economic uncertainty, political unrest and climate disasters. All of this took a toll on consumers mentally, which caused them to search for pleasant moments in their everyday lives. They look for things that make them feel positive and distract them from their everyday worries.

Consumers look for products that give them rewarding emotions and for experiences that serve as a temporary escape whether we talk about a piece of sweets or a personal applause. In these experiences they want to feel uplift, and they want to fulfill their desires to escape – even if it is just for a moment. 

Many people are seeking escapes from the barrage of heavy news and everyday stressors. The destinations are small moments that bring joy and positivity: it can mean a surprise or a playful interaction. These „mini-escapes” help us relax & recharge, even if it is just for a moment. Consumers want to get these from their favorite brands which put a pressure on the companies to turn their claim-based communication into relevant experiences.

People find more & more motivation to celebrate which gives space for less traditional events. Celebration is no longer a community focused event but also a source of personal wellbeing. Brands can help to recognize those moments which are worth to celebrate by showing consumers that how many things in their lives deserves applause.

• 74% think that it’s the most important to feel good in life
• 67% find it’s important to try new experiences at evry given opportunity
• 89% look for moments which give them small joys, because of the uncertainty in the world
• 48% the state of the world negatively affects their well-being

The rapid spread of generative AI is well exemplified by ChatGPT, which acquired 100 million users in just two months. The accessibility of platforms that leverage large language models contributes to this widespread adoption, allowing consumers to create diverse content with minimal technical expertise.

AI technology has become a co-creator of consumers: it influences their decisions and changes their expectations regarding brand engagement. All of this encourages brands to adopt AI technology for enhanced personalization and a richer customer experience.

But the question arise: Is there no downside to Artificial Intelligence?

The rising fear of AI replacing human jobs has become a prevalent concern in contemporary society. Consumers are addressing this concern with a proactive approach, including reskilling and upskilling to prepare themselves for the evolving job market and ensuring that the benefits of AI are harnessed without causing significant job displacement.

At the same time, consumers are eager to use these tools in their personal life: for tasks ranging from creative writing to travel planning, and they expect brands to keep up with the evolving capabilities of generative AI as well, and use technology to enrich their brand experiences.

The use of generative AI in virtual assistants and chatbots is becoming more sophisticated. There are more and more consumers who are comfortable to interact with AI-driven chatbots that can understand natural language, provide detailed and personalised responses, and even engage in more complex conversations.

• 77% consider life-long learning important
• 74% open to receive a training on AI to support their work
• 60% try to keep up with technology
• 72% used AI technology in 2023 to better their daily lives

Streaming platforms undeniably hold the greatest potential for digital advertising. Among digitally engaged Hungarian internet users, streaming plaforms are the 6th most important platform, positioned between radio and Instagram. Half of digitally engaged internet users, est. 2.6 million people, have access to streaming services. The number of consumers shows a continuously growing trend, thanks to the emergence of new platforms.

The most popular platform is Netflix, followed by HBO Max. On the 3rd place, is Disney+, whose viewer base has been growing steadily since it’s launched in Hungary. The streaming platforms’ biggest USP is still its ad-free nature and on-demand content selection.

Along with TV subscriptions, the term „streaming and digital expenses” has emerged, as consumers’ monthly digital spending has been increasing over the past 1.5 years.

Consumers want to get a unique experience and personalised recommendations. Netflix’s deep learning method is built exactly for this. Being relevant is one of the biggest challenges advertisers face, as consumers don’t want to be treated as the generic mass. They need to be addressed on an individual level. The more a consumer feels that an ad is speaks to them, the less likely they are to experience it negatively.

Consumers don’t like to spend time picking the most suitable content from a large selection. They find it most convenient to choose from a narrowed-down list. They try to waste as little time as possible from their day.

Local productions and culturally relevant content offer a sense of familiarity and connection, reflecting the life of local audiences. This representation fosters deeper engagement and with the content, making it more enjoyable and impactful.

• ~5.5K Ft average monthly streaming bills
• 64% chooses streaming due to flexibility
• 61% finds lack of advertisements important on streaming platforms
• ~580K subscribers on RTL+ since launching it in April 2023

E-commerce offers undeniable convenience, allowing us to browse products and make purchases from the couch. However, the experience can sometimes feel impersonal and lack the excitement of in-person shopping. Yet it is possible to create the personal feeling in the online space. Live shopping bridges this gap by replicating the feeling of having a dedicated salesperson, allowing consumers to witness product demonstrations and ask questions in real-time.

The real-time nature of live shopping allows retailers to capitalize on the „Fear of Missing Out” (FOMO) phenomenon by creating a sense of urgency and exclusivity around products. Engaging with users by creating a cozy and welcoming atmosphere through interactive elements can elevate the online shopping experience. This approach allows personalized recommendations to truly resonate, taking users to a new level of engagement and satisfaction

Customer service can be a crucial factor for consumers. Live shopping provides an opportunity for consumers to get all the information they need immediately before making a purchase. This can greatly contribute to a brand becoming a love brand in the eyes of the consumer.

Users are scrolling on social media to discover things, connect with others, and share moments.  Live shopping offers an additional extra to this core social media experience. Influencers can promote products through live streams. Within this familiar and trusted environment, they can connect with both products and brands on a deeper level.

Influencers are often trusted figures who host events that promote products. Influencer-hosted live shopping events can allow users to feel like they’re part of the experience. Live shopping events go beyond influencer collaborations and behind-the-scenes glimpses. This fusion of entertainment can be a powerful marketing tool for brands.

• 2-3x higher order value from live shopping compared to traditional e-commerce
• 13.7 million shoppers on TikTok live shopping events
• 60% of consumers trust online reviews and consumer opinions
• 62% agree that online shopping makes their lives easier

Being born into a highly digitalized world, the Alpha Generation is likely to be even more technologically savvy. Furthermore, the pandemic and lockdown have played a key role in forming their online behaviour and level of connectivity.

But Gen Alpha is more tech-empowered rather than dependent, which is a consequence of their behaviour of acquiring technological skills from an early age on. 

Gen Alphas seek entertainment mainly online and social platforms have a central role in their daily lives. This generation have a seamless integration of technology into their lives, influencing how they interact with products, services, and brands.

They grow up to be diverse and inclusive, and expect brands to keep up with their differences and address their preferences.

Gen Alphas are forming brand preferences early in life. Especially with having their own device, the consistent use has diminished the novelty of screens. Consequently, Gen Alphas shape a higher level of brand maturity at a younger age, implying that as they grow up, they will likely hold brands to higher standards and accountability. These expectations extend beyond product quality and integrity, including the digital experience as well.

Social media plays a significant role in their lives, and they mainly enjoy video content which provide excitement. Brands leveraging social media platforms for marketing and communication may have an increased impact on shaping consumer preferences.

Due to their habit of simultaneously using multiple screens and rapidly scanning information, their attention span and concentration are compromised. Brands need to buckle up and think outside the box when it comes to digital experiences and grabbing Gen Alpha’s attention.

• 70% play with online games every day
• 53% use TikTok shopping or go to discover new products on a monthly basis
• 60% watch hauls and unboxing videos
• 51% first hear about a brand on YouTube

Sources:

• Insider Intelligence

• GKID Digital

• Euromonitor

• GWI

• TGI

• IPG own research

• mailchimp.com

• socialbakers

• 2023 NielsenIQ State of Trust in Advertising 

• Iberdrola

Author: Dóra Andorkó, Bella Cselényi