Brands brace for recession, but only 3% expect media channel revenue to decline year-over-year in Q4 2022, according to Merkle Performance Media report

Nearly half of respondents (49%) rate creative as “very important” to their Q4 customer experience strategies. 39% of brands have measurement and budget plans that cover a broader timeframe rather than focusing on narrow timeframes

  • Nearly half of respondents (49%) rate creative as “very important” to their Q4 customer experience strategies.

  • 39% of brands have measurement and budget plans that cover a broader timeframe rather than focusing on narrow timeframes such as “Cyber ​​Five”.

  • Less than half of respondents have inflation-related marketing strategies that vary by audiences and their unique resilience to inflation.

COLUMBIA, MD., November 1, 2022 /PRNewswire/ — Merkle, Dentu’s leading technology-driven, data-driven customer experience management (CXM) company, has released its Performance Media Report (PMR), a quarterly research report that analyzes and highlights performance media trends and the overall impact on digital media. Following the Q3 2022 PMR, Merkle identified several major changes for brands, including reduced concerns over impending privacy changes and cooling cost-per-click (CPC) and cost-per-impression (CPM). ) on all channels. They also found that as brands begin to prepare for the effects of inflation and the tightening of consumer disposable income, inflation and other macro factors impacting media channel revenue are less of a concern, with only 3% of brands expecting revenue to drop Y/Y for Q4.

Merkle (PRNewsfoto/Merkle)

“As the economic challenges continue, consumers are more conscientious about how and where they invest their money. What worked a year ago simply won’t do,” said Liz Rutgersson, director media at Merkle. “This report helps identify opportunities for performance media innovation and helps marketers create stronger customer experiences, invest in the right media channels, and be nimble with marketing strategies.”

Merkle’s PMR reveals that brands and consumers are facing economic challenges and must adapt to the new landscape. Key trends revealed include:

Rising CPC and CPM are currently not a major concern for many organizations.

Compared to Q3 2022 PMR, fewer advertisers reported year-over-year increases in CPC and CPM on Paid Search, Display, Facebook and Instagram. In fact, CPC growth for Google Shopping and Google text ads has slowed, with only 41% of respondents seeing year-over-year increases for each format. This is a welcome change after brands came under significant upward pressure on CPC in 2021 and early 2022; this will provide an opportunity for brands that are willing to invest extra budget to steal market share when the competition is weaker.

Organizations have mixed feelings about impending privacy and change tracking.

In this survey, respondents were slightly less concerned that privacy and tracking updates will create significant challenges for their business, with 77% agreeing with this sentiment, compared to 83% in the previous report. . However, when it comes to specific impacts, tracking and privacy were always top concerns. In display and paid social networks, “accurately measure performance against new privacy regulations and track changes” was the second most selected priority, and under measurement, “get an accurate view performance with new privacy regulations and change tracking” was the primary concern.

Retail is changing priorities for the holiday season.

Before the holiday season, revenue generation and efficiency are not the clear winners in terms of performance priorities. Increase brand awareness, acquire new customers and retain existing customers, all of which rank higher. The report found that brands are broadening their view of the holiday season, with 39% of brands having measurement and budget plans that cover a broader timeframe rather than focusing on tight deadlines like “Cyber ​​Five”. “.

To learn more about the Q4 2022 PMR findings, download the full report here.

About Merkel

Merkle, a dentu company, is a leading data-driven customer experience management (CXM) company specializing in delivering unique and personalized customer experiences across all platforms and devices. For more than 30 years, Fortune 1000 companies and leading nonprofits have partnered with Merkle to maximize the value of their client portfolios. The company’s heritage in data, technology and analytics forms the foundation of its unrivaled skills in understanding consumer insights that drive hyper-personalized marketing strategies. Its combined strengths in consulting, creative, media, analytics, data, identity, customer/commerce experience, technology, loyalty and promotions drive better marketing results and competitive advantage. With over 14,000 employees, Merkle is headquartered in Columbia, Maryland, with more than 50 additional offices in the Americas, EMEA and APAC. For more information, contact Merkle at 1-877-9-Merkle or visit www.merkle.com.

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