Brief Summary
The OMR Festival 2024 presentation covers key trends and developments in the digital and marketing landscape. It begins by examining the performance of major tech companies and shifts in global markets, particularly in China and Germany. The presentation then identifies "losers" and "winners" in the business world, such as celebrity endorsements versus stable coins, and new food brands. It also explores the concept of "shitification" and "brainworms" in the context of internet usage, advocating for a return to "IRL" (in real life) marketing strategies like community piggybacking and product staging. The presentation concludes by addressing the impact of AI on traffic and search, providing strategies for maintaining visibility in an AI-driven world, and emphasizing the importance of "mentions" as the new links.
- Performance of Magnificent 7 tech companies and Chinese market trends.
- Shift towards IRL marketing strategies due to digital fatigue.
- Impact of AI on search traffic and strategies for maintaining visibility.
Intro
The speaker introduces the presentation, which will cover the key events and trends of the past year since the last festival. The focus will be on developments in the business sector, particularly in the context of digital and marketing. The presentation promises insights into both macro trends and specific examples of companies and strategies that have seen success or failure.
Global Market Overview
The presentation begins by examining the performance of major tech companies, referring to them as the "Magnificent 7" (including Nvidia, Microsoft, and Tesla). These companies have seen significant value increases in the last 12 months, despite global economic challenges. In China, listed companies like Alibaba and Tencent have also performed well, driven by increased government focus on technology and digitalization. However, non-listed Chinese companies like Temu and Shein have faced difficulties. China is leading in the electric vehicle (EV) market, with BYD surpassing Tesla in sales, and holds significant market shares in wind turbines, batteries, and solar modules. In Germany, publicly traded digital companies are relatively small in terms of total value, but SAP stands out as a globally competitive software company.
German Business Developments
Despite Germany not being traditionally strong stock market country, many medium-sized companies are making significant progress. Several German companies are making headlines in the USA, such as one building data centers for Meta, Aldi's rapid growth in the retail sector, and Bosch's acquisition of a heat pump company. There are also several digital global market leaders from Europe, including the neobank from England, Spotify, and payment service provider Adyen from Holland. The "Unicorn Machine" statistic shows that Europe has the same probability of producing unicorns as the US, but there are fewer attempts made.
Losers and Winners
The presentation identifies "losers" as celebrity endorsements, citing examples like Snoop Dogg's promotion of Solo Stove, Cristiano Ronaldo's involvement with Vista Alegre, and Lionel Messi's partnership with MGO Global, all of which led to negative outcomes for the companies. Job titles related to search engine optimization (SEO) have also declined significantly. Alcohol is identified as another loser, with a decreasing trend in consumption, especially among young people, and struggling spirits companies. "Winners" include stable coins, which have seen massive adoption and profitability, with Tether achieving a profit of $13 billion last year. New food brands like ESN and Sunday Natural are also winners, with several reaching billion-dollar valuations. Advertising salespeople are in high demand due to the rise of retail media and companies needing expertise in advertising sales. Grandfluencers, or older influencers, are also gaining traction, with brands targeting older demographics in digital environments.
The Digital Landscape
The presentation addresses the current state of the internet, describing it as experiencing "shitification" (degradation of user experience) and "brainworms" (negative effects of excessive screen time). The speaker predicts "AI slop" (inferior AI-generated content) as the word of the year 2025. There's a growing "AI trust breach," with people questioning the reliability of online information, leading to a withdrawal from the internet and a rise in offline activities.
IRL Marketing Strategies
The presentation advocates for a shift towards "IRL" (in real life) marketing, presenting two strategies: Community Piggy Backing and Product Staging. Community Piggy Backing involves building on existing communities, such as run clubs, to connect with people in the real world. Examples include Lululemon's run club on Strava and the Sweet and Salty Run Club by Heimatgut. Product Staging involves giving a product a stage to showcase it, drawing inspiration from tech companies like Microsoft and Vorwerk. Examples include Vorwerk's Thermomix presentation, Brabus's fashion show for its cars, Taco Bell's taco keynote, and Jellycat's pop-up stores in high-end department stores.
AI and the Future of Marketing
The presentation addresses the impact of AI on traffic and search, noting the significant decline in click rates due to AI overviews in Google search results. While Google remains the dominant platform, OpenAI's ChatGPT is gaining traction. The speaker suggests that the industry may be moving towards a post-traffic world, but also highlights examples of companies generating leads and sign-ups through AI chatbots.
Staying Visible in the AI World
To stay visible in the AI world, the presentation recommends several strategies. First, optimize for Bing, as ChatGPT uses Bing for search data. Second, ensure your website is accessible to AI crawlers like the Open AI Searchbot, which may not be able to render JavaScript. Third, adapt your marketing toolbox with new AI optimization tools. Finally, generate "mentions" of your brand on relevant websites, as these sources feed into AI chatbot responses. The presentation identifies the FAZ Kaufkompass, Reddit, and YouTube as key websites for product recommendations by ChatGPT.
Tangible Marketing Observation
The speaker shares an observation about a trend on TikTok where videos showcasing a problem are followed by comments recommending a specific product as the solution. This creates a psychological effect where viewers are more likely to purchase the recommended product due to social proof and the direct connection to the problem. Examples include videos about newborn babies and the Baby Olet Soal sock, dogs slobbering and the Slobber Stopper Bowl, and weight loss struggles and the sauna jacket.
Conclusion and Gratitude
The speaker concludes by thanking the team and encouraging viewers to subscribe to a weekly newsletter for more updates.
