The Declining State of Growth Marketing in 2023

As we navigate the second half of 2023, it’s essential to reflect on the current state of growth marketing. Today, I’ll be sharing some key findings from recent reports and surveys, including the 2023 Growth Marketing Report by DEPT, insights from HubSpot, and Marketing Brew. These sources provide a comprehensive view of how growth marketing strategies are evolving to meet business objectives and consumer needs.

The Shift from Growth Marketing

Interestingly, there’s been a significant decline in growth marketing strategies this year. DEPT® found a 40% drop compared to last year. This might seem surprising given the importance of growth marketing in aligning marketing strategies with broader business goals. It combines performance marketing and brand marketing, focusing not just on customer acquisition but also on customer retention and expansion.

Despite more marketers correctly defining growth marketing, its implementation has decreased. This trend is consistent across all verticals and could negatively impact future revenue growth and customer experiences.

The Declining Investment in Digital Growth Drivers

Marketers have reduced their investment in digital growth drivers such as strategy, planning, data, and analytics due to the macroeconomic climate. Only 48% of marketers surveyed actively invest in data and analytics, compared to 70% in the previous year.

Data and analytics are vital components of growth marketing. They provide valuable insights into customer behavior, enabling marketers to make informed decisions and measure the effectiveness of their strategies. However, chasing short-term results without consistently aligning with business KPIs can hinder long-term success.

The Importance of Strategy and Planning

In times of economic downturns, brands should not sacrifice strategy and planning. Doing so could lead to outdated data and assumptions about the target audience, negatively impacting marketing efforts. Proactive media planning and awareness of changing customer needs can result in more resilient brands.

Video Gobbles Budgets and Stands Ground.

According to Hubspot’s 2023 State of Marketing Report, the power of video marketing is on the rise. The report showed that videos are the top content type used by marketers today and are also the content type that people spend the most time consuming. With attention spans shortening, video content offers a compelling way to engage customers and communicate complex messages quickly and effectively.

The Rise of Influencer Marketing

In contrast to the declining trends in some areas of growth marketing, influencer marketing continues to rise. According to Hypergrowth.io, 89% of digital marketers currently engaging in influencer marketing expect it to continue growing in 2023. Collaborative influencer marketing strategies and user-generated content (UGC) are becoming defining features of social media feeds.

Creative & Design

Investment in the creative process has seen a slight dip, with 46% of respondents investing, compared to 50% last year. The report suggests that marketers have found less expensive ways to create more assets, so the cut here is more about finding efficiencies rather than reducing spending.

Looking Forward

While these trends might seem concerning, they could also indicate a period of transition and adaptation in the marketing world. As we navigate through uncertain times, marketers must remain agile and responsive, making strategic decisions based on evolving circumstances and emerging insights.

Remember, marketing is not just about growth but also about sustainability and resilience. By focusing on what works and being open to new approaches, marketers can steer their organizations toward success, no matter the challenges they face.

In conclusion, the findings from the report serve as an important reminder of the ever-changing nature of the marketing landscape. It underscores the necessity for marketers to stay informed, adaptable, and strategic in their approach, ensuring their efforts drive meaningful results.