Industry Insights: January 10, 2024

2023 Recession Doomsdayers Must Feel Silly…

Hello, Friends!

As we step into the first Industry Insights of the year, we want to extend our warmest wishes for an extraordinary 2024 filled with growth, success, and, of course, a dash of unexpected surprises! Now, let’s dive into the exciting world of industry happenings, where predictions meet reality, marketing unveils its secrets, and, just for fun, we explore the quirks that make our world ever so fascinating.

Welcome to a brand new year of discoveries and insights!

Big-Picture:

Awkward… Remember when Bloomberg economists predicted that the odds of a recession in 2023 were 100%? Well, it turns out the crystal ball might need a bit of polishing. While that didn’t exactly happen, it’s worth looking back at 2023 to see how things played out: 

• The Federal Reserve had a busy year, hiking interest rates ELEVEN times between 2022 and 2023. 
• Borrowing costs skyrocketed for the first time since before the 2008 financial crisis, yet holiday shopping still managed to rise by 3% compared to 2022.
• The job market has been thriving with near record-low unemployment rates at 3.7%, and November alone witnessed the addition of 199,000 jobs.
• The stock market was no slouch either, with the S&P 500 soaring by nearly 24%. “The Magnificent Seven” – Microsoft, Apple, Alphabet, Nvidia, Tesla, Meta, and Amazon – stole the show, boasting a collective 75% increase in 2023.
• Even the seemingly mundane world of cardboard has chimed in on the 2024 outlook, as cardboard producers raised prices for the first time since the Fed began raising rates in 2022. Historically, higher cardboard prices have been a sign of an economy gearing up for further growth. Who knew cardboard could be so insightful?

Marketing Industry:

TikTok, the reigning champion of short-form video, shared some nuggets of wisdom on crafting the perfect video ad. According to their findings, an effective hook is the key to capturing attention. Whether it’s showcasing a person in the first few seconds or strategically dropping a “you” statement within the opening five seconds, these tactics can significantly boost viewer engagement. Beware, though, as TikTok warns against being too promotional too early in the ad – balance is the key.

In a bold move, TikTok is flexing its muscles by threatening to cut off perks for advertisers who don’t increase their spending by 50-150% this year. Benefits like access to top creators and credits for creative production might be on the line. It seems TikTok is turning up the heat in the competition for ad dollars!

Just for Fun:

As we’ve all entered 2024 and sat down to make our resolutions, let’s keep this study in mind – goals focused on building a new behavior are statistically more likely to succeed. So, instead of vowing to banish sweets from your life, consider a resolution like “eating more vegetables” – a positive approach might be the key to success!

And speaking of traditions, fewer of us are bidding farewell to dried-up Christmas trees this year. In fact, 77% of those who display a tree have made the switch to artificial ones. Perhaps it’s the convenience, or maybe we’re all secretly hoping for an evergreen Christmas that lasts all year round.

That’s a wrap for this week’s Industry Insights! Wishing you a fantastic week ahead and may your cardboard prices be ever in your favor. Until next time, stay curious and stay fabulous!

Bon appétit!

Your friendly Industry Insights devotee, 

JD