The future is funnel-less — adapt your ad strategies accordingly
Opinion
It’s time to abandon a fixation with channels in favour of a content-led approach — and prepare for a future where end-to-end solutions are the norm. The definitions and techniques that have dominated marketing practices are becoming obsolete.
For a long time, the traditional marketing funnel has been a bedrock approach to sound marketing.
A quick Google tells me that the an early iteration of the funnel was created in 1898 by Elias St Elmo Lewis, an American advertising pioneer who — as well as having an outstandingly strong name — goes down in history as the man who set the tone for the next 130 years of marketing.
Yet, with media, technology and consumer behaviour set to undergo profound change over the next five years, does the marketing funnel and our industry’s channel-centric approach to advertising still make sense?
It probably won’t surprise you given the headline of this piece, but my answer is no. It’s time to rethink the funnel, abandon a fixation with channels in favour of a content-led approach — and prepare for a future where end-to-end solutions are the norm.
This isn’t just based on my hunch. It’s central to the findings of Futurecape, a new IAB UK study that explores the shifts that will shape advertising, media and consumer attitudes in the lead-up to 2030 and beyond.
It draws on interviews with over 40 leaders from across the industry, original forecasting to predict spend over the next five years and extensive analysis of research from a range of sources to define the 11 shifts that will fundamentally alter how we advertise by the end of the decade.
What’s clear is that the labels, definitions and techniques that have dominated established marketing practices are fast becoming obsolete and this will only accelerate. Agency structures, targeting techniques, planning approaches and measurement all need to evolve to remain effective as changes in consumer behaviour, technology and media converge.
Getting this process under way and rethinking established marketing norms today is essential for businesses to thrive tomorrow. Here are three of the main learnings I have taken from Futurescape that should shape strategies in the years ahead.
Take a content-led approach
Channel-centricity currently underpins media planning and agency models, yet media owners are becoming increasingly channel-agnostic.
You only need to look at how news brands have diversified beyond the page for evidence of this, becoming multimedia organisations. As we head towards 2030, old channel definitions will continue to crumble and content — which has long been hailed as king — will truly come to the fore.
It will be those that adapt their business structures and marketing strategies away from a channel-focused lens that stand to gain. Media plans should focus on aligning the right content, context and data-led targeting approach to tap into people’s interests and behaviours in a holistic way — regardless of channel.
All media will become retail media
In tandem with this, the boundaries between “traditional” media and retail media are set to become increasingly blurred over the next five years, diminishing the need for separate media plans and partners to achieve different objectives.
Instantly shoppable formats will become the norm across different media, with streaming providing a primary opportunity. Shoppable TV is already growing rapidly in the US and, as streaming becomes viewers’ default preference, partnerships between retail media networks and connected TV platforms will allow for relevant and targeted ads to be delivered at different points in consumers’ path to purchase.
Not to be too dramatic, but it is time to rip up the traditional marketing funnel, reimagine the consumer journey and recognise how media partners can play multiple roles within it. This approach will allow advertisers to plan holistically — balancing brand and sales objectives in an increasingly connected media landscape where end-to-end solutions are commonplace.
It will also require media owners to work with technology partners to enhance their advertising solutions with accountable measurement to demonstrate both short-term and long-term results.
Brand marketing will become more important
You didn’t think I could write a piece about the future and not mention AI, did you?
By 2030, generative AI will have revolutionised how consumers discover brands and products, with people increasingly relying on the technology to shape their purchasing journeys across various categories and brands.
Put simply, AI is set to become the ultimate content curator, reducing the time people spend researching purchases and influencing the actions they take as a result. Advertisers will need to understand how consumers are using AI in their decision-making process for specific categories — whether it is simply a tool or the actual decision-maker.
In this context, brand marketing will become more important than ever as brands seek to stand out and capture consumers’ hearts and minds in what could easily become a sea of sameness. The focus should be on creating innovative, original content to attract new audiences, rather than relying too heavily on AI algorithms to drive growth.
An opportunity to define the future
A lot of these shifts are already in motion, but they will evolve and accelerate over the next five years and it’s imperative that our industry is keeping pace.
It isn’t just about ensuring your business is fit for the future, it’s about being equipped to define it, seize opportunities and thrive in a dramatically shifting landscape. And while some things will always remain constant — such as the importance of a distinct brand identity — it’s vital that we recognise what no longer works.
When it comes to the funnel, it’s time to move on. The path to purchase is re-routing and demands a fresh approach as the future takes shape.
James Chandler is chief strategy officer at IAB UK