Rapid Response: OMD Responding Rapidly Annual Report
As a thank you for subscribing and reading OMD's Rapid Response throughout the year, this special edition exclusively shares a chapter from OMD's Responding Rapidly 3.0 written by Jean-Paul Edwards, OMD Worldwide Managing Director.
Responding Rapidly is OMD's annual book showcasing the developments from the last year, and takes a deep dive into the effects and implications of the year ahead from OMD thought-leaders worldwide. The full digital download is available for free here: https://eu1.hubs.ly/H06F-670
The drivers of economic growth are shifting
A confluence of factors, including demographic transitions, technological innovations, a changing geopolitical climate, and shifting cultural paradigms, are collectively charting fresh routes to market dominance.
Economic growth over the past 50 years has been driven by a feedback loop of an expanding global consumer class and innovations that drive connectivity and efficiency from global just-in-time supply chains to an exponentially more powerful internet.
Global brands and the expansive media ecosystem reflect this broader evolution. Brands don't merely ride the growth wave; they also feed it, tapping into an ever-expanding global consumer base and instilling in them an elevated desire to consume. However, growth does not follow a straight path. Episodes like the 1970s oil crisis, the 2000s recession, and the prevailing pandemic repercussions underline the dual nature of these disruptions: they're both transitory obstacles and enablers of groundbreaking innovations.
Sustained success for brand growth
To enable sustained success, it's imperative to dissect the interplay of long-term, medium-term, and short-term trends. As growth drivers undergo metamorphosis, businesses must innovate in terms of capability, partnerships, and approach. Today's demographic trends paint a striking portrait of an aging global populace. As birth rates plunge and life expectancies soar, the economic focus shifts towards older segments while also understanding the changing need states, attitudes, and outlooks of younger consumers.
Globalization, once considered an indomitable force, is showing signs of stasis. With the surge in automation, we're witnessing a tilt towards regionalization, subsequently influencing global supply-demand dynamics. Numerous climate impacts through 2023 illustrate a more fragile environment, fueling short-term shocks and requiring greater resilience and flexibility in planning. Governments and consumers are increasingly aligned towards sustainable growth, impacting traditional business models.
2023 challenges
The acute challenges of 2023, such as the global cost of living crisis alongside fears of structural disruption—for example, the impact of AI—are driving instability across numerous industries. This year, the US writers' and actors' strikes were based on concerns about the changing business models of content and the impact of AI on their earning potential. Whilst both strikes now seem to be resolved, there will be numerous knock-on effects, from short-term postponement of major TV shows and movies to long-term shifts in production approaches and consumer behaviors.
The dynamics of advertising through digital channels are changing quickly as regulators worldwide aggressively enforce consumer and market protections not just in the domain of privacy but increasingly across national security, cultural, and competitive perspectives.
Looking forward to 2024
In 2024, Google Chrome's deprecation of the third-party cookie will be the final chapter in the process of change to a multi-signal paradigm. Activation will be more complex requiring the orchestration of data signals along with leverage of unique assets from brand heritage to consumer permissions to gain competitive advantage.
Many of these signals will come from consumers themselves and retail environments that are closest to the sale. Commerce and media continued to converge in 2023, as an ever-growing share of retail sales occurred online or via data-enabled relationships such as loyalty cards.
As the world finds itself at the intersection of legacy systems and future possibilities, understanding these paradigm shifts is non-negotiable. Embracing change, fostering innovation, and leading with insight will be the keys to unlocking growth in the forthcoming era.
OMD's value proposition is rooted in these seismic shifts. World-class network talent boasts an array of specialized skills with deep experience and diverse viewpoints. Our network, unified through the Omni data platform and the OMD Design workflow, is at the leading edge of global connectivity, agility, and consistency.
The intertwined realms of data, commerce, and content present challenges and opportunities. Grasping the intricacies of these domains is pivotal for businesses to harness the full potential of the digital era. Responding Rapidly 2024 is therefore structured around these key pillars of marketing-led growth.
For more exclusive insights, download the latest edition of Responding Rapidly here: https://eu1.hubs.ly/H06F-670