Authored by Aditya Swaminathan, Associate Vice President, Paytm Ads

As digital practices become ubiquitous, trends that will continue to stay in 2023 are making digital payments and the ease with which increasing users will continue to buy products online. Despite the lack of advanced banking services in rural locations, the rise of affordable smartphones and data plans has allowed customers from even smaller towns to participate in online shopping and make digital payments. This has revolutionized the way retailers and brands engage with their customers. Thanks to this shift, businesses can now leverage data to understand customer preferences and develop customized offerings that meet individual needs.

2022 also saw the rise of social commerce and influencer-led marketing. However, as some of these practices continue to remain, scale, or fail, one thing is sure - brands need to consider an Omni-channel strategy to distribute their products and create customer experiences that drive curiosity, repeat transactions & loyalty. Here are some of the key trends that will play a role in influencing omnichannel marketing strategies in 2023.

Personalization

Personalization will play a vital role in the success of omnichannel strategy for most brands, be it the mass segment or otherwise. Customers today want to feel valued for their time and business. Brands can use data and AI-powered martech tools to personalize user experiences based on their past interactions, preferences, and purchase history across online channels and offline stores; it can aid in building customer delight and, thus, lifetime value.

E-commerce to social and video commerce

The past two years have seen immense growth in user interactions and time spent on social media platforms. From a duopoly to today consuming several local and regional social media & content platforms, the segment is growing fast. While e-commerce has already become an established destination for brands, embracing social commerce is also essential. Social commerce is the intersection of online shopping within social media platforms. Personalized video ad formats are popular, and customers discover new products and purchase directly on these platforms. Fashion and Personal Care, which are style, season, and validation-driven categories, are already growing fast on social commerce.

Using a data-driven approach

Digital advertising is undergoing a tectonic change with large platforms becoming privacy-conscious. Brands need to start building their first-party data using platforms offering deterministic signals with consent and not operating in a walled garden approach. Retail media networks are emerging strongly due to the access to data and the capability to show the right ad to the user and influence their purchase journey. However, over-dependence on e-commerce intent signals alone leaves ~90% of the retail audience out of the mix. Moreover, brands with deep wallets can overpower new brands & startups on these platforms. With the deprecation of the cookie and other privacy controls, 2023 is the year for marketers to shift gears and work with a broader set of publisher platforms with deterministic data cut across online and offline channels.

Influencer marketing

With up-and-coming social media sites and well-established ones like YouTube and Instagram, creating and sharing content has never been this simple. What's more, social commerce tools have facilitated partnerships with brands. As a result, using influencers in an omnichannel marketing strategy can help build relationships with targeted audiences, generate more leads, increase awareness of products or services, drive sampling, and, ultimately, conversions.

Affordability

As spending gets tighter, consumers are constantly looking for flexible payment options. While instant discounts and no delivery cost were only restricted to e-commerce channels, brands now need to activate the buy now & pay later (BNPL) model on their websites and offline stores to facilitate higher-value transactions. In addition, consumers are increasingly choosing BNPL over credit cards, which is suitable for retailers as credit cards have limited reach. Looking to the future, the "buy online, pick up in store" (BOPIS) trend initiated by the pandemic is expected to remain in 2023. Offering customers a combination of digital and physical shopping opportunities, BOPIS appeals to shoppers of all kinds, as it eliminates the need to pay shipping fees while also offering an immersive brand experience.

This article is the first part of the two-part series. 

About Paytm Ads:

Paytm Ads is a marketing solutions provider that helps businesses to connect with over ~350 million users of Paytm. Paytm Ads provides immersive ad solutions for brands that users can relate to by leveraging first-party audience insights based on transactional signals.