OMD SIGNALS

2023
ANNUAL REPORT
 Introduction to Signals 2023
This report provides an overview of the key consumer signals to help us
plan for the year ahead. We believe by identifying cultural, consumer,
economic and political tensions that we can create a real point of
difference for how we communicate on behalf of brands.

As political, economic and climate pressures take their toll on our daily
lives, we find ourselves facing higher prices for necessities: stretching
household spending, shifting the brands we buy and the way we buy
them, and even putting some of our values under strain.

As the landscape begins to change, we try to unpack what might stay the
same, what might be different, and what this might mean for businesses
and their customers.

If recessions are an unintended re-structuring of an economy, then some

businesses will stand to gain and lose accordingly.

This guide aims to get a little bit closer to understanding how we might
navigate that period, all through the lens of consumer orientation. We
look at what’s changed recently, what might be causing these changes,
and how businesses can react to what is becoming an increasingly
turbulent landscape.

This is a sneak peek of what you should expect in our January deep-dive.
The aim is to create a document for everyone, so if you are pressed for
time then you should be able to absorb all of the main headlines in the
first few slides, but there is also plenty more detail should you need to
OMD SIGNALS 2023 │ ANNUAL REPORT
dive deeper. 2
Consumers will question what is essential as well as
what brings them joy in 2023, as uncertainty and
inflation continue to rise

Say Do Dilemma: Conscious Commerce: Reclaiming Digital: The Rise of Cocooning:

Sustainability Shopping Technology Entertainment
There is a gap between what Consumers are adopting common The rapid growth of the internet Consumers seek out media
people say and what they do, recessionary behaviours and plan and connected devices has led increasingly for peace of mind
particularly true when it comes to carefully budget for the next 12 to an unprecedented amount of and self-care, as they spend
to sustainable behaviours, with months ahead. data in circulation. ​ more time at home.
convenience and price still Virtual events will remain
We expect to see purchasing New data protection legislation,
trumping in purchase decisions. popular. Musical performances
behaviours shifts as they try to privacy campaigns and well-
Many businesses have also get the best prices. publicised data breaches all within game worlds draw big
begun to focus on sustainability remind the consumer that their crowds. More than 1 in 4 have
However, consumers are attended this type of event as
in their communications, but data is valuable to others,
reporting that 63% of their social of February 2022, and a further
many don’t transmit this claimed privacy is important and they
media purchases are unplanned 1 in 3 would like to, according
belief into their other business have rights.
or impulse buys. We are seeing a to Statista.
practices.
discrepancy between claims and Consumers increasingly turn to
This creates a paradox between behaviours as consumers change banking tech trackers to keep an 53% global consumers now
what brands say and do, much their purchase habits. eye on financial wellness and to listen to podcasts at least
like with consumers. forecast future spending. monthly – this has increased
While touchpoints between from 46% in 2019.
Quantifying behaviours provides
This phenomenon has been consumer and purchase have
proof of positive impact. As the cost of living crisis rolls
noticed and named increased, it is less clear whether
Financial influencers are also of on, consumers will seek
‘greenwashing’. It is turning impulse buying has reduced or if
interest to consumers as they entertainment and self-care –
consumers off brands and their it is simply easier online.
seek information on how to but will need to do so in a cost
sustainability communications.
budget and invest better. effective way.
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Sustainability has grown in importance – yet, over half
of consumers don’t believe claims from brands
50% of respondents think sustainability is a status symbol for Key Considerations
brands
• People believe it’s a
72% believe each of us 32% claim to always
personal responsibility to
has a personal choose the most
responsibility to act in a sustainable option, act sustainability – over
sustainable way Say Do regardless of price brands and governments.
63% believe brands Dilemma 12% claim they trust
should play an active role what brands say about • Despite people’s
in solving world issues their environmental sustainability values, the
(e.g., climate change, policies and carbon rising cost of living is going
health crisis, etc.) footprint to impact how much they
34% claim they will can buy sustainable
56% state they are always buy new forms of
aware of the negative technology without products.
impact technology has hesitation, even though
on the environment they know it’s bad for the • The majority of people
environment don’t believe brands’
55% would like access Sustainabili 39% claim they suitability claims. Consider
to more information research the best how your brand can gain
about how brands make ty product for the people’s trust from being
and transport their environment before
more transparent or
products making a purchase
offering them simple
OMD SIGNALS 2023 │ ANNUAL REPORT Source: OMD Signals, December 2022, UK, US, Australia with 1,500 Nationallyactions. 4
Representative respondents across 18–65-year-olds
Sustainability: Brand Implications

Empower and inform consumers to help them make

small changes
Help consumers to understand how they can make a difference in the battle against climate change at an individual level and help them feel empowered
to act. This should dispel the notion that environmentally-responsible behaviour is only accessible to the wealthy, and champion a form of sustainable
inclusivity that gives everyone a chance to make a difference. Make sure it’s simple for customers to do and understand.

Acknowledge imperfections and promote net

improvements
Almost every activity, particularly in business, has a carbon impact. Whilst businesses and consumers will never be able to completely erase their carbon
footprint, we can improve our net output. Brands that acknowledge this, that are upfront and honest about their environmental efforts, will avoid the
pitfalls of greenwashing as well as having a more positive impact on the planet. This can help position the consumption of your brand as a genuinely
positive act rather than one that risks damaging not just the environment but also a customer’s social status.

.
Demonstrate that caring is cool
Capitalise and reinforce the link between environmentally-friendly behaviour and social status, which is expected to grow stronger in the years to come.
Using the behavioural science phenomenon of social proof, brands can embed the idea that environmentally-friendly behaviours are socially acceptable
and the norm, which undermines the idea that making changes to help the environment comes at a financial and social cost.

OMD SIGNALS 2023 │ ANNUAL REPORT 5

What matters when people shop is changing, as they
shift to a more functional mindset
The top concern next year is rising prices and inflation, and Key Considerations
many are expecting to have to change their shopping habits
• Brand loyalty will be
65% will be 51% plan to switch to challenged as people put
seeking out lower cost retailers
more emphasis on price
special offers and Conscious
discounts
Commerce • Reviews will become
49% plan to reuse, increasingly influential as
58% will be
switching to
mend or repurpose people consider new
things they already own options
cheaper brand
alternatives
• Second-hand retail has
55% will be tracking 46% plan to reduce the grown in popularity –
or budgeting how number of products or consider ways your brand
much they spend goods they buy can lean into this
behaviour

52% will be
Shopping
• Continue engaging
undertaking more 39% plan to buy
consumers beyond
research before second-hand and resale
purchasing items functional messaging to
maintain willingness to
OMD SIGNALS 2023 │ ANNUAL REPORT Source: OMD Signals, December 2022, UK, US, Australia with 1,500 Nationallypay 6
Representative respondents across 18–65-year-olds
Shopping: Brand Implications

Include price comparison in comms

Challenge price comparison sites in communications. Price comparison websites have become widespread, and many consumers now instinctively check
the price of any purchase through these. Ensure your brand stands out from the crowd and gives consumers a compelling reason to buy – whether that is
best price, extra perks or ease of use. You can also be bold and offer price comparisons on your own site to demonstrate that you come out on top.

Create a community with membership

Support customers through a membership programme to encourage brand loyalty which has suffered as people put more focus on price. Create a scheme
where consumers pay an annual or monthly fee to access products that are discounted or have no mark-up. Ensure that the average savings are greater
than the membership fee, and that prices stay low. Create a sense of community by being transparent.

.
Provide added value throughout the Omni-Channel experience
Add value to capture the audience’s full attention. For instance, make it easier for them to shop by placing shoppable touchpoints on streaming TV
platforms. Perhaps you could use Amazon Prime Video’s X-Ray feature that enables second-screening viewers to see info like actor bios and song names to
make your brand's on-screen presence shoppable, such as sharing product details and even embedding buy buttons. Think about your omni-channel and
how you can make changes to add more value to customers.

OMD SIGNALS 2023 │ ANNUAL REPORT 7

Consumers want brands to be accountable for data
privacy and to take more control of protecting
themselves and their data
79% of respondents believe companies should be more Key Considerations
transparent with how they are using customer data
• Consumers want more
72% would not buy from 50% would be more information and what
a brand who had a bad likely to give their
they can do to protect
reputation with data Reclaiming personal data to
themselves. Brands have
privacy companies in exchange
67% are very cautious Digital for rewards (e.g., an opportunity to become
about sharing their discount, offers, free gift, consumers’ data privacy
personal information and etc.)
48% claim they don’t champions.
take all relevant steps to much about data privacy
protect themselves •
but would like to know People are becoming
more increasingly open to data
64% claim that a
brand’s reputation in 47% are actively exchanges. They don’t
data privacy plays an learning about data always have to be
important role in their privacy and how to take monetary, but they do
decision-making control of their personal have to add value.
56% have become data online
Technology
more cautious about 40% are looking for • Beyond data privacy,
content types and how apps and online people are looking for
they portray themselves platforms that show a
more authentic online
online truer side of reality
interactions.
OMD SIGNALS 2023 │ ANNUAL REPORT 8
Source: OMD Signals, December 2022, UK, US, Australia with 1,500 Nationally Representative respondents across 18–65-year-olds
Technology: Brand Implications

Give consumers a sense of agency and control over how their

data
Feed their is
needused
for control by giving consumers the option to choose the rewards or benefits they receive in return for their data, offering a range of
privacy settings, and being transparent about sharing any information with third parties. It’s also important to maintain open communication channels,
complying with customers’ requests to delete personal or sensitive information in a timely manner. And, remember to always communicate the principle
that sharing data is a choice, not something foisted upon them. ​

Support consumers looking to educate themselves in

digital
Provide customers with tips on how to maintain data hygiene and get involved with new technologies. Do not just dwell on the potential risks; instead, also
focus on the benefits that data sharing can bring to encourage consumers to engage with their data. For example, helping consumers who are new to
digital currencies by providing educational content that will teach them how to navigate the crypto world. The language surrounding digital currencies can
often be daunting, so provide insight in simple terms on how consumers can get involved. However, be careful not to overwhelm consumers with too much
complex information that could cause confusion.

.
Adapt creative and tone to sit authentically across media
environments
Consider platform purpose and factors, such as scroll speeds, screen coverage, in-feed experience and sound impact, which all affects how an individual
experiences an ad and ultimately pays attention to it. For example, platforms like TikTok lend themselves to candid and quirky self-expression where
brands need to adapt their image and tone to meet the mass of playful and light-hearted users, matching their energy. This communication style might
not suit a premium or luxury proposition, for instance, but consider how you could relax your tone, whether that's just using emojis in copy and avoiding
language that's overly formal or finely tuned.

OMD SIGNALS 2023 │ ANNUAL REPORT 9

Get comfy: the home takes a more
central role in people’s 2023 lifestyles
52% of respondents plan to spend more time at home in Key Considerations
the next 12 months
• As people plan to become
47% plan to focus 32% plan to start or more self-sufficient, there
more on their mental increase how much they is an opportunity for
health and well-being The Rise of entertain at home
brands to offer DIY
Cocooning inspiration
45% will start or 31% plan to recreate
increase how much special experience at
• At-home entertainment is
they cook from scratch home (e.g., movie night, set to increase in 2023.
date night, etc.) Without the restriction on
gathering, it will be
39% will stop or interesting to see if
reduce how much they 28% will be streaming behaviours evolve
go to paid-for more free on-demand
attractions, activities video and music services • There is an opportunity
and events
Entertainm for brands to offer more
flexible and alternative
36% will reduce their ent 27% will be using more indulgences
paid-for subscriptions apps on their phones
• Brands can elevate
OMD SIGNALS 2023 │ ANNUAL REPORT Source: OMD Signals, December 2022, UK, US, Australia with 1,500 Nationallypeople’s at-home
Representative respondents 10
across 18–65-year-olds
Entertainment: Brand Implications

Help consumers create more immersive in-home media

experiences
Consider ways in which you can help consumers tailor their home surroundings to match their viewing in a way that is not possible in a cinema. For
instance, can you partner with fragrance companies to add an extra sensory layer to a film, as Disney has done with Pura for films such as Moana and
Frozen II? Or, on a more basic level, ensure audio mixes of films are tailored for streaming, and give users suggestions on how to fine tune their TV
settings – perhaps by turning off motion smoothing to more closely mimic a cinema screen.

Flaunt your local credentials

Adapt your communications to appeal to local audiences, calling attention to the aspects of your brand identity that best represent each region. Be
sensitive to each area’s unique quirks and characteristics to avoid culture clashes.​Demonstrate how your brand benefits the community. Do you create
important local jobs or showcase homegrown ingredients? Also, highlight your locally sourced products' low air miles and short supply chain to cater to
eco-concerned consumers. Go one step further by regionally tailoring messages.

Lean into small luxuries

Tap into consumer rituals and reward behaviour, and highlight how consumers can include aspects of your brand in this behaviour. Add value by giving
consumers support to indulge themselves in small ways, showing empathy to the human need for ‘a bit of a break’. Economic downturns typically lead to
consumers spending their time and money on fewer, but more premium experiences. By adding value for consumers you can make it further down their
consideration set, ensuring that the things they do spend money on in trying times includes your brand’s products or services.

OMD SIGNALS 2023 │ ANNUAL REPORT 11

New behaviours and values developed during the
pandemic are accelerating with rising costs and are set
to cause Media Disruption

Digitisation is now the Tech natives are Changing needs and Rising costs challenge
norm changing how they use values are driving new leading tech
platforms propositions companies
Digitisation is now the norm and Generations who have ‘grown up’ Technologies continue to Like the rest of us, technology
we are facing new frontiers as a with technology are changing how advance and new formats arise companies are also feeling the
society. they use platforms, creating as a result, from livestream strain. They too face increasing
unanticipated disruption. shopping and retail media to the costs and raised interest rates.
With even the Bank of England However, they were already
Platforms must respond to these Metaverse and AI. We have
exploring the idea of creating a stretched after huge increases in
disruptions or face becoming heard a lot about how they are
central bank digital currency, we workforces during the pandemic
irrelevant. set to completely change the
have reached a point where in hopes that post-pandemic
game, with McKinsey &
even traditional institutions have As tech natives adapt the way consumers would retain their
Company predicting the
embraced digitisation and it is they use technology, new high virtual reliance, which
Metaverse to generate up to $5
allowing for new frontiers to be behaviours and values have hasn’t transpired as planned.
trillion in value by 2030 alone.
explored as a society rather than emerged and many are using
a tech enabled few. them in a different way than what However, 56% of respondents For Meta, huge investment in
was originally intend. don’t care about new and Metaverse projects will take time
We are also seeing a to recoup. While for Twitter, the
emerging technologies. This
generational shift in how people For example, Snapchat is now change in leadership has lead to
summarise our role as
interact with news. Those regularly been used as the main instability and brands
marketeers – we have to make
typically aged 18-24, who have communication method between questioning brand safety on
the case for new technologies,
grown up with social media, younger cohorts. While social their Platform.
we have to make people care. It
differ greatly from those who media is becoming more
is not enough that people hear Platforms also face new
didn’t. For example, TikTok is influential in the dating scene,
about these technologies, they regulations which can be costly
increasingly being seen as a with 22% claiming to have used
need to what problems they to address during so much other
news source for 18-24 year olds, social media for flirting or dating
solve and how they add value. upheaval.
rising from 3% in 2020 to 15% according to YouGov Global
in SIGNALS
OMD 2022. 2023 │ ANNUAL REPORT Profiles. Source: OMD Signals, December 2022, UK, US, Australia with 500 Online Representative Respondents each
12
 Disrupting how we Disrupting our news Disrupting the way we
build communities habits and definitions spend money
online
Whilst Social media was previously seen As people’s trust in news falls by almost The pandemic forced people to find new
as disruptive to traditional advertising, half across the 46 markets included in ways to shop, this has resulted in a rise
some social media platforms such as Reuters Institute’s 2022 Global Digital in eCommerce. However, social
Facebook are now considered to be News survey, it’s no surprise that the commerce has also seen an sharp
‘old’. Instead we are seeing people find number of people avoiding the news increase and this is not expected to
different ways of building communities has increased (doubling in the UK over slow with forecasts predicting that
online. the last five years). social commerce will be worth $1.2
trillion globally by 2025, up from $492
For example, Discord, which was As a result, what people define as news
billion in 2021.
typically aimed at gamers announced has undergone a transformation which
an extension in 2020 after receiving can be defined into three categories: It is not just digital touchpoints that are
$100 million in funding. Discord is now ‘Need to know’, ‘Personal interest’ and disrupting how we spend money, but
seen as a platform for all, where people ‘Fun’. Need to know news is typically the increased acceptance of second-
are able to create spaces which build thought of as serious news. While hand is supporting the rise of new
and grow likeminded communities. personal interest news is less defined, shopping platforms as well as
but is often linked to hobbies. Fun news challenging what traditional retailers
Similarly, Roblox have described
often refers to news which is purely sell.
themselves as “building a metaverse”
entertainment.
and a “global community”. With 58.8 For example, in the US the second-hand
million daily active users, advertising Moreover, it has transformed the way fashion market is expected to triple to
opportunities have grown on Roblox news is broadcasted. While we still have $80 billion in 2029. eBay, who was
including creating experiences, placing traditional ‘Mainstream’ new, such as considered to be the main online
in-game billboards and releasing newspapers reporting on the stock marketplace for selling second-hand
sponsored objects. They have also market, there has been a rise in items, is now being challenged by new
announced plans to launch 3D Alternative and Unser-Generated news entrants, such as Depop that have seen
‘immersive’ ads on the platform in as well. ‘Alternative’ news is the revenue and gross merchandise sales
2023. broader coverage of a mainstream topic more than double in 2020, to $70 and
appearing on platforms like Reddit or $650 million respectively.
It is important to note that people are
podcasts. For example, Reddit being
not using ‘new’ platforms but using Traditional propositions are also being
instrumental in the buying of GameStop
existing platforms in different ways. reconsidered, for example Primark
stock in 2021. Whereas ‘User-
Roblox was created in 2006 and Discord adding a ‘vintage’ section of second-
Generated’ news is more commonly
in 2015. hand clothes into their flagship stores in
social content created based on news,
the UK.
OMD SIGNALS 2023 │ ANNUAL REPORT such as content aimed at helping 13
people financially.
 Keeping our pulse on global
Signals
OMD EMEA We can’t wait to share the final Signals 2023 report with you in January,
‘Signals’ deliver where we will go into more detail on each of these themes.

evidence-based The key for action is providing implications on how these insights can
help us design more valued and valuable experiences for our clients.

insight on We believe that identifying cultural, consumer, economic and political

tensions allow us to create a real point of difference for how we
perceptions and communicate on behalf of brands.

behaviours which In additional to our annual global Signals report, which focuses on the
upcoming trends for the year. We will also be creating the second-annual

have changed Signals report that is powered by OMD local market points of view on how
these trends are manifesting, as well as capturing new trends that are

during and
emerging.

We cannot stress enough how meaningful our local market input is. It
beyond makes our global perspective stronger, and we hope it is more relevant
for you too.
2022

OMD SIGNALS 2023 │ ANNUAL REPORT