2024: A Year of Unprecedented Change for Advertisers
The Business World’s Wild Ride
2024 is shaping up to be a year of dramatic change for businesses worldwide. With the decline of granular tracking, the Western world grappling with transatlantic election fallout, and AI wreaking havoc, the business world is in for a wild ride.
Danone’s Journey of Transformation
In the face of these challenges, Danone, a global food and beverage company, is taking proactive steps to stay ahead of the curve. Catherine Lautier, Danone’s global head of media and brand communications, shares the company’s strategies for navigating the whirlwind of change.
Reinvestment and Strategic Partnerships
Danone’s journey of transformation began with a new CEO and a new strategy called “Renew Danone.” This strategy involved reinvesting in the company’s brands, resulting in a 20% increase in media spending in 2023. Despite inflation, Danone’s strong brands allowed it to pass on price increases without negatively impacting volume.
The company also consolidated its media agency investment and formed new partnerships with creative and media agencies. These partnerships focused on obtaining the right expertise in communication, planning, strategy, data, and analytics. Danone also established centers of excellence to provide support in areas like retail media and data.
The Shifting Media Landscape
The distinction between TV and digital media has become blurred. Danone has almost completely disinvested from linear TV in the U.S., but it still plays a significant role in markets like Indonesia and Mexico. The focus is on reach and frequency, particularly for new customers to the category.
The Importance of Retail Media
Retail media has emerged as a key area of focus for Danone. Despite market fragmentation, retail media partnerships enable precise targeting of specific consumers. This level of targeting surpasses the accuracy achieved with third-party cookies. Danone emphasizes the importance of media experts evaluating the value of data in negotiations with retailers.
Challenges in Internal Alignment
Danone faces internal challenges in aligning budget allocation for retail media, which can fall under different departments such as marketing, e-commerce, data, and sales. The company is working to break down silos and ensure optimized budget investments with retail partners.
Corporate Responsibility Claims into Reality
Danone has developed a responsible media and advertising roadmap, encompassing brand safety, marketing to children, support for journalism, diversity and inclusion, data and analytics, and sustainability. The company has clear strategies for each pillar, including brand suitability plans and partnerships with organizations like Integral Ad Science and Teads.
The Excitement and Challenges of AI
Catherine Lautier expresses excitement about the potential of AI, particularly in digital content production, dynamic creative optimization, and precision marketing. She acknowledges the need to evaluate AI’s impact on media buying strategies in the future.
Impact on Agencies
Danone is already using AI in its digital content advertising work through partnerships with Brandtech Group, Pencil, and the Oliver agency. The company is exploring AI’s potential in media agencies, expecting it to enhance efficiency, creativity, and strategic thinking.
Conclusion
In conclusion, Danone’s Catherine Lautier provides valuable insights into the challenges and opportunities facing businesses in 2024. The company’s focus on strategic partnerships, retail media, corporate responsibility, and AI positions it to navigate the changing landscape successfully.
As businesses prepare for the year ahead, they must adapt to the evolving media landscape, embrace new technologies like AI, and align their internal teams to maximize the impact of their marketing efforts. Those who can successfully navigate these changes will be well-positioned for growth and success in 2024 and beyond.
Call to Action:
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