Published on: November 11, 2024 / Update from: November 11, 2024 - Author: Konrad Wolfenstein
Advertising industry in transition: How brands need to interact with Gen Z and Alpha – Image: Xpert.Digital
Changing media: Generation Z and Alpha are changing consumption
From linear to interactive: The new rules of the media world
The advertising industry is facing profound changes: Generations Z and Alpha are revolutionizing media consumption by placing greater emphasis on interaction, immersion and collaborative design at eye level. Features that linear television cannot offer, even though it is still considered the official leading medium. But reality shows that TV is losing relevance - not only among younger people, but increasingly among older target groups. Streaming services, on-demand content and personalized media offerings have replaced the classic television experience.
How can agencies and advertising companies react to this change? What do you need to consider in order to continue to be successful?
The dominance of new platforms: social media and gaming
The dominance of television is rapidly diminishing. In its place are social media and gaming platforms that offer an interactive and personalized experience. Platforms like TikTok, Instagram, YouTube, Twitch, Roblox and Fortnite have become central places where target groups hang out and exchange ideas. This is where trends emerge, this is where content is shared virally, and this is where users have the opportunity to become active and create content themselves. But many brands are far from exploiting their full potential here.
Future of brand communication: AR, VR and more
Future brand communication will not only be limited to social media, but will also increasingly take place on gaming platforms and in augmented realities. With the spread of AR devices and VR glasses, users can immerse themselves in immersive worlds and experience interactive content. Brands have the opportunity to create unique experiences and build a deeper connection with their target audience. For example, virtual showrooms, interactive product demos or brand experiences can be created in the virtual world that go beyond traditional advertising methods.
New production techniques: Virtual Production and more
At the same time, new production techniques are fundamentally changing the way advertising content is created. Virtual Production with LED studios makes it possible to create realistic scenarios in real time without having to travel to physical locations. This not only saves time and money, but also offers creative freedom. Volumetric video allows the capture of 3D images that can be viewed from any angle, which is essential for immersive experiences in AR and VR. Digital people, so-called digital humans, can be used as brand ambassadors and open up completely new possibilities in customer interaction. You can react to users in real time, give personalized recommendations or tell stories that bring the brand to life.
Artificial intelligence: opportunities and challenges
Artificial intelligence will completely turn the processes in the advertising industry upside down. Entire areas could disappear while others are created from scratch. AI can assist in content creation, enable personalized advertising and improve data analysis. For example, with the help of AI, ads can be automatically adapted to the preferences of individual users, increasing the relevance and effectiveness of advertising campaigns. But it also presents new challenges, for example in relation to data protection and ethical issues. It is important to use AI responsibly and maintain transparency with users.
Proactive strategies in the advertising industry
Agencies and companies must proactively address these developments. It is important to understand and strategically use the new platforms and technologies. This means investing in employee training and being open to innovation. Collaborating with experts in gaming, AR/VR and AI can help shorten the learning curve and stay competitive. In addition, companies should introduce agile working methods in order to be able to react quickly to changes in the market.
Rethink communication and business models
The change in media consumption also requires a rethink in the way brands communicate with their target groups. Authenticity and transparency are becoming increasingly important. Users want to be able to identify with brands and expect them to respond to their needs and values. Co-creation – the joint creation of content with the community – can help to build stronger bonds. By engaging their audience and giving them a say, brands create a sense of belonging and loyalty.
Effective campaigns through data-driven approaches
The challenge is to create relevant and engaging content that is present on the target audience's preferred channels. This requires precise knowledge of customers and their preferences. Data-driven approaches can help make the right decisions and increase the effectiveness of campaigns. By analyzing user data, advertising messages can be targeted and waste can be minimized.
New partnerships and legal framework conditions
Another aspect is the adaptation of business models. The classic separation between advertisers, agencies and media companies is increasingly dissolving. New partnerships and collaborations are necessary to master the complex requirements of the digital world. Cross-functional teams that bring together experts from different disciplines can develop innovative solutions and respond more quickly to market changes.
It is also important to keep an eye on the legal framework. Data protection and copyrights are playing an increasingly important role and must be taken into account when planning campaigns. This requires close cooperation with lawyers and compliance experts. Compliance with laws such as GDPR is not only a legal obligation, but also an important factor in customer trust.
Sustainability and social responsibility
The integration of sustainability and social responsibility into brand communication is also becoming increasingly important. Generations Z and Alpha place great value on environmental awareness and ethical behavior. Companies that authentically represent and communicate these values can stand out from the competition.
Practical examples of successful brand communication
A practical example of successful brand communication in new media is the collaboration between fashion companies and gaming platforms. Brands such as Gucci and Louis Vuitton have developed virtual clothing items for games that can be purchased and worn by users. This not only creates awareness, but also opens up new sources of income.
Another example is the use of influencers and content creators who have a wide reach on social media. Through authentic collaborations, brands can effectively convey their messages to the desired target group. It is important to choose the right partners who fit the brand and are credible.
The advertising industry is in transition – taking advantage of opportunities
The advertising industry is in an exciting but also challenging phase. Those who are willing to adapt to changes and explore new paths have the chance to assert themselves in a dynamic market and be successful in the long term. It is time to rethink traditional ways of thinking and look boldly into the future.
Brand communication is interactive!
The future of brand communication will be interactive, immersive and collaborative. Linear television will lose its role as a leading medium, while social media, gaming and augmented realities will become more important. New technologies such as virtual production, volumetric video, digital humans and artificial intelligence will revolutionize the production and distribution of content.
Agencies and advertising companies must face this development and adapt their strategies accordingly. By taking advantage of new opportunities and adapting to the needs of Generations Z and Alpha, they can continue to communicate successfully and strengthen their brands. It is important to be open to innovation, to continuously learn and to adapt to changing consumer expectations.
The key to success in the new media landscape
The key to success is building a connection with the target audience based on mutual respect and understanding. By creating added value, authentic communication and leveraging modern technologies, brands can stay relevant and survive in an ever-changing media landscape.
The advertising industry is at a turning point
The advertising industry is at a turning point. Traditional one-way communication has had its day. Interactive, immersive and personalized experiences are in demand. Companies that recognize these trends and act proactively will be able to thrive in the new media landscape. It is a time of change, but also a time of opportunity for those ready to help shape the future of brand communications.
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