Consumers seem to be moving away from brand purpose, according to a new study from WPP Media.
Its Advertising in 2030 report, which it has published for the last five years, made assertion based on a raft of recent changes. It said the optimism of 2020 has turned into something more closely resembling pragmatism.
In 2020, (back when it was GroupM) it wrote “brand purpose, especially as it relates to sustainability, will need to permeate every aspect of a company, not just its marketing. Consumers will become adept at gauging the authenticity of interactions they have with a brand, perhaps helped along by the implementation of standard metrics like those we see on nutrition labels today which could quantify the ‘cost’ of not only production but advertising as well.”
Now, consumers are moving on, according to WPP Media.
“On the consumer side, it can be attributed to cultural
realignment in markets like the U.S., as well as increasing price sensitivity in an era of global trade actions and extreme weather events,” it wrote, and we’re sure you can guess who the agency group is talking about.
In Europe, it reckons, the forces are different but the results are similar with consumers and marketers alike growing wary of greenwashing.
“While still optimistic about the world in 2030, our respondents’ optimism is now tempered with a little more pragmatism,” added WPP Media.
Consumers reverting to perhaps a more cynical, even more right-wing stance is a phenomenon that has been noted in many parts—including by one Mark Ritson, who predicted the shift at Luna Park last year.
View this post on Instagram
In 2020, more than three-fifths of the experts WPP Media consulted though that the environmental impact of consumption would be as important as price in consumers’ decision making for goods and services. Now, however, that panel of experts overwhelmingly considers that scenario as unlikely.
“While acknowledging growing awareness and importance for some consumers (often wealthier ones), experts believe price sensitivity, economic pressures, and convenience will continue to dominate purchase decisions for the majority,” it wrote.
“I think we have seen regression not progression with sustainability aspects in the last year or two,” said Professor Andrew Stephen from the University of Oxford’s Saïd Business School.
“This has been a nice-to-have and consumers under cost pressure are trading away from this,” said Helen McRae
WPP Media’s CEO of southeast Asia, Pakistan, South Africa and Taiwan.
Kirsten Hasler, IKEA’s marketing boss for Australia and New Zealand, had this to say:
“As extreme weather events become more frequent across Australia, public acceptance of climate change is growing. Many consumers genuinely want to make more sustainable choices, but this shift will only gain traction when companies can offer environmentally responsible products at prices that don’t feel like an added burden. Affordability is key to turning good intentions into real behaviour change.”
WPP Media, naturally, also made a raft of predictions about artificial intelligence.
A majority of its panel believed that companies will rely on AI to produce “the majority” of creative content, including music, TV, movies and art.
“I think the majority of conception will be done by humans, perhaps with some AI provocation, but actual production will largely be done by AI,” said News Corp’s Norm Johnston.
The experts also believe that should working hours and wages drop due to AI and automation, it shouldn’t have an impact on consumer purchasing power.
Some do foresee AI automating tasks, particularly “middle-tier” knowledge work, leading to job displacement and downward pressure on wages in certain sectors. Yet, they also cited historical precedents where technology created new, higher-value jobs and boosted productivity — or they simply believe 2030 is too soon for a major macroeconomic impact.
“Barring any significant regulation, AI can and will undoubtedly automate certain sectors, and as a result, put downward pressure on wages and earnings until individuals can respond by moving to new sectors of the economy (assuming education, training, etc. is available),” said one expert who chose to remain anonymous.
“This one is tricky,” said Clear Channel Outdoor CEO Scott Wells, noting that in the short term, it’s possible we may see adverse effects. “But over time I’m confident we will see purchasing
power grow as people discover how to use AI tools to drive productivity and success.”
Another of respondent (again anonymous) had a slightly less optimistic take, saying that whatever gains are realised “will be collected by wealthy individuals rather than dispersed to the working class.”
Regardless of what has changed by the end of the decade, WPP Media said it was “certain” that advertising will “remain a critical plank of the economy. And not just for traditional media publishers, but also for retail, transit, and other sectors that are moving into the space.”
Which is heartening, at least to some extent.
