Our 2020 Predictions That Will Dominate 2021
During 2020 our reliance on digital as a means of communication, commerce, entertainment and activism grew faster than any other time in history. The impact of this acceleration will only compound in 2021 and brands that haven't caught up will only fall further behind. To help identify which shifts will matter most in the next 12 months, we've recapped our top predictions and how they will evolve in 2021. These include:
Growth of social shopping
Rise of TikTok
Role of brand activism
Evolution of experiential
The pandemic fueled a perfect storm of record social media usage, soaring e-commerce, and reduced the role of brick-and-mortar retail. The result? A social shopping boom. Already generating $22 billion a year in sales, and projected to reach $40 billion in four years, critical mass has arrived. We saw a spike of 69% in social spending during the past 12 months, and a range of new features from Instagram, Facebook, Snapchat, and TikTok that are making shopping while you socialize a frictionless process.
Instagram made its Checkout tool permanent this year, allowing users to browse and buy without leaving the app. Facebook, IGTV, and even Reels are now following suit, making shopping seamless across the entire ecosystem. Snapchat expanded its e-commerce ads driving a 52% rise in ROAS for advertisers like Adidas. In what is perhaps the most strategically significant move this year for a social platform, TikTok teamed up with Shopify to launch shoppable ads that let users browse and shop directly from the feed. See MI&C’s initial prediction here.
2021 Prediction: The combination of TikTok's superior algorithm and commerce will allow it to drive the industry’s highest social commerce conversion rates
We at MI&C have been obsessing on TikTok since early 2018 and were not surprised that it became the fastest growing app on earth in 2020. Fundamentally different than any social platform before it, TikToks' challenge-based format is more about creativity and comradery and less about the pursuit of perfection seen on Instagram. It's more of a social game than a social network, and that has been integral to its success. Quarantine exposed siblings, parents, and even boomers to the platform fueling growth across generations. Although competitors like Triller and Instagram's Reels are trying to catch up, TikTok is on a tear, closing in on 100 million monthly active users.
Even under the threat of a government shutdown, the app is innovating ahead of competitors in key areas like fashion. Case in point – #TiktokFashionMonth led by Louis Vuitton, Saint Laurent, and JW Andersen. The effort included live-streamed runway shows (some starring TikTok creators as models) and capsule collections from PUMA and Alice & Olivia. TikTok's unique features like Duets, make it easy for users to create compelling collaborative reaction videos with a never-ending narrative. A recent Hashtag Challenge we created for the launch of PERFECT for Marc Jacobs Fragrances, saw upwards of 9 billion views making it one of the top-performing hashtag challenges of 2020. See MI&C’s initial prediction here.
2021 Prediction: Wal-Mart's investment in TikTok will create cross-channel experiences that combine e-commerce and entertainment at scale
In 2020 the names George Floyd, Breonna Taylor, and Ahmaud Arbery came to represent systemic racism and fueled demand for change, led by Gen Z – the most culturally diverse generation in history. As the nation rose up, it became clear that brands could no longer stand idly by. With 90% of Gen Z consumers supporting Black Lives Matter and 60% of adult consumers saying they would buy or boycott a brand based on their social stance around racism, brands are finding inaction has a price – lost relevance and revenue. Gen Z is tightening their grip on the cultural megaphone and purse strings alike, influencing $600 billion in household spending and holding direct purchasing power of $143 billion. Imagine their impact when they enter the workforce.
Brands need to rethink their approach to racism from the inside out and allocate funds that are significant enough to signal their commitment. Talk is cheap, and Gen Z is listening. As it is, they already trust brands less than any other generation. Swift action and authentic apologies are needed to win hearts and minds. Brands like Aunt Jemima are leading by example. After getting criticized in a TikTok video that quickly went viral called "How to make a non-racist breakfast", the 130-year-old brand made a commitment to permanently change its branding. The move inspired Uncle Ben’s, Cream of Wheat, and Mrs.Butterworths to do the same. We covered this and several related topics in our October Current Report "Killing Cancel Culture." See MI&C’s initial prediction here.
2021 Prediction: It will become common practice for brands to build Gen Z led councils to inform inclusivity, develop socially conscious marketing, and co-create new product offerings
The lockdowns and quarantines of 2020 turned Zoom into a household verb and transformed virtual events from a sideshow concept to a mainstage attraction. Experiential marketing embraced digital quickly through virtual events, concerts, and unique experiences like Chipotle's Lunch Together that connected 3000 people each day for shared lunches on Zoom. Live DJ sessions, dance parties, and fashion shows hosted in the Metaverse filled the void proving the value of the virtual space for branded bonding. With a vaccine not expected until mid-2022, virtual events will be with us long enough to permanently shift our definition of experiential marketing. As events evolve into richer mixed-reality experiences like TikTok's virtual concert with The Weeknd, consumers will likely come to prefer URL over IRL for its easy access and personalized surprise and delight moments. For the launch of the PERFECT fragrance by Marc Jacobs, we created a choose-your-own-adventure style event for guests from 50 countries built through Zoom rooms.
Experiences included a private concert by pop sensation Kim Petras, a virtual casting call, a photo shoot by fashion photographer Hunter Abrams, a drag queen dance party with Shangela, and an interactive Q&A session with Marc Jacobs himself. Digital souvenirs ranged from free samples of the PERFECT fragrance to self-portraits from artist Jacky Blue, and personal write-ups from performance art group The Bumbys. The approach drove a significant increase in event-related UGC and kept the conversation going long after the digital doors closed.
See MI&C’s initial prediction here and download our September Current Report on experiential here.
2021 Prediction: IRL events will return post-pandemic but virtual options will remain core to the experience extending reach and engagement to global audiences
MI&C In The News:
"How Marc Jacobs launched a fragrance in the middle of a pandemic" – PR Week, 10.16.20
"We aimed to create an immersive, multi-room experience where attendees could 'choose their own adventure,' empowering them to travel freely through ten different experiences during the launch party just as they would in real life." – Quynh Mai, CEO and founder of Moving Image & Content
"It allows us to offer multiple experiences at the same time," said Andra Mielnicki, Coty's VP of global influencer marketing and luxury. "It also allowed us to chat directly with consumers and break the fourth wall, which helped make the event interactive."
This article originally appeared in the November 10th, 2020 issue of Moving Image & Content’s agency newsletter. Register here to subscribe.