Designing for the
Now and Next: 2023
Mid-Year Update by CaratIntroduction
We are halfway through 2023. At the beginning of
the year, we found ourselves in the midst of aVibecession. Amidst economic uncertainty, thevibe felt off.
Events that played out across our nation in the firsthalf of this year have caused a shift from
economic uncertainty to social uncertainty. From
the roll-back of Affirmative Action to widespreadbacklash from a beer brand’s Pride campaign,
America seems to be in the midst of an identity
crisis as core values are called into question.
Perhaps this dynamic is why we are seeing anevolution of some of the media trends we
predicted at the beginning of the year - Consumers we predicted would be dopaminechasing in media are leaning into a wider rangeof content to process their emotions.
- Advancements in, and adoption of, tech like AI
and AR are revolutionizing personalized
solutions.
- A growing prioritization on wellness and mental
health is shifting sources of influence.
- As consumers use media to express their own
identities, they are increasingly turning to niche
communities and genres for connection.
A shift in focus from economic to social concerns
has consumers flocking to media as a playgroundwhere they can manage, express and play with
their own identities.
- Joanna Hawkes, EVP, Head of Strategy, Carat US
Designing for the Now and Next: 2023

2

How our predictions for 2023 have evolved
halfway through the year
From dopamine chasing toprocessing complex emotions
At the beginning of the year, wepredicted that as tensions rise,
people would turn to media forquick hits of joy. What we are now
seeing is the use of media as anoutlet to manage a range ofcomplex feelings – content andexperiences around darkness &horror, joy & pleasure, and aweinspiring magic are offering ameaningful place for people torelease, control, and escape.

From wellness prioritization to
shifting sources of influence
The digitization of wellness openeda new world of access, renewing
focus on health and well-being. But
as mental health rises to theforeground of media
conversations, it is shifting who
consumers trust and consider
influential. We are seeing a shift
from social networks andtraditional influencers to likeminded people who are perceived
as more credible and authentic –podcasters, nano-influencers, evengamers.

From innovation driving
simplicity to innovation driving
personalization
At the beginning of the year we
predicted that consumers would
seek practical innovations thatmake life simpler. Now we areseeing innovation in service of
personalization. From generative
AI, to AR, to shoppable content on
their terms, the retail landscape isbeing transformed, engaging
people in personalized ways andchanging their expectations
around shopping.

From Identity shaping
interactions to media ‘nichingdown’
As consumers increasingly express
their identify through the media
they consume, we are seeing
media influencers, platforms andproperties “niching down” – forging
deeper connections around more
focused and specific passion areas
and genres.

Designing for the Now and Next: 2023 – Mid-Year Update3Media helps process complex emotions
Beyond quick fixes of joy, people are turning to media to experienceand manage a wide range of emotions
Safety in the scary
Horror is one of the deepest emotions andpeople want to shocked more than ever. The
weird, bizarre and dark are psychologicallybringing comfort to people in troves becauseof the sense of control it brings in a chaotic
world (media allows us to view from theoutside). Earlier this year, ‘M3gan’ opened
big, resonating deeply with Gen Z and LGBTQ+
community.1 Videos games like Resident Evil 4,
Diablo or Dark Souls are undergoing aresurgent boom as these classics are re-madewith more powerful, modern tech. 2 People
are also re-creating horror, exemplified by theviral takes on ‘Ocean Gate’ to supernaturalways Gen Z jokes about suffering a dark fateafter drinking the McDonald “Grimace
Shake.”3 With Gen Z claiming horror as theirfavorite genre,4 people are leaning into fear
instead turning of away from it.

Evolved euphoric escapes
Beyond the quick hits of stimulation, media is
looking to bring a deeper sense of joy topeople through more immersive media. For
instance, Disney+ announced that on Day 1
their content will be available on Apple Vision
to be closer to the characters you love. 5/6
Meta Quest announced a partnership with
the NBA earlier this year to launch a new VR
platform to experience the games like neverbefore (and is in talks with Apple to extend to
Vision Pro)7 Beyond the elevation of ourbiggest passions, immersive media is also
expanding into ‘mindfulness games’ thatcalm people through traditional methods like
mediation, puzzles and creativity. 8 Slipping
into forms of virtual reality allow people tofully slip out of the real world for greaterrelaxation and disconnection.
Designing for the Now and Next: 2023 – Mid-Year Update

5Media helps process complex emotions
Magic in the Muggle WorldIn the back half of this year, movies arecontinuing to create (and re-create)
beloved magical worlds like ‘Barbie’9,‘Wonka’, ‘Spider-man’ and ‘The Marvels’(‘Wicked’ coming in 2024!). 10 Whilepeople’s obsession with magic isn’t new,what is interesting is the notion of people
specifically looking for ways to embracethe extraordinary in their real, everyday
world. Escapism is not just about seeing it
on screen, but wearing (‘Barbiecore’11),
playing (Harry Potter x Tamagotchi12) ormaking those worlds your actual home
(Airbnb Barbie Dream House,
Booking.com’s Little Mermaid stay13). It’s
not enough to just dream about thesurreal as people want to tangibly turnthe imaginary into reality.

Designing for the Now and Next: 2023 – Mid-Year Update

5Media helps process complex emotions:
how brands can get involved• Don’t be scared of the scary; embrace horror and the weird in a unique,positive, and brand safe way to differentiate and win over consumers• Test integrations into new immersive media to understand performance andhow your brand can build love through these entrancing, unclutteredenvironments• Brainstorm creative ways to bring captivating experiences into people’s
every day; how can branded media campaigns be taken to the next level?

Designing for the Now and Next: 2023 – Mid-Year Update

6Tech enables personalized commerce
The retail landscape is being transformed by technology that lets
consumers discover, experience, and shop brands in personalized ways
AI personalizes – andrevolutionizes – commerce
AI is revolutionizing commerce by enhancing
and streamlining shopping experiences.
Brands and retailers can now utilize powerfulalgorithms to analyze shopping history,
behavior, and social media activity. This
enables companies to personalize productrecommendations, generate tailoredproduct reviews, and create curated
experiences for their customers.
Microsoft has rolled out AI-powered shopping
tools in Bing and Edge. These tools not only
help summarize thousands of reviews but also
create ‘buying guides’ that aggregate items
from multiple stores so shoppers can findwhat they want more easily.1

personalized shopping feed and enableconsumers to chat with shopping assistants.
Research Klarna fielded in partnership with
WWD cites that 60% of Gen Z & Millennials
believe that personalized experiences arevital to purchase intent; 34% want virtual
personal shoppers to provide
recommendations.2
Amazon is also testing generative AI for
reviews, enabling consumers to quickly see
what other users like or dislike about the
product without having to sift throughhundreds of reviews.3
This will be just the tip of the iceberg for AI, as
shopping is poised to become more
personalized and seamless.

Klarna is also adopting AI by partnering with
ChatGPT to develop an AI-powered

Designing for the Now and Next: 2023 – Mid-Year Update

7

Tech enables personalized commerce
AR reimagining the store of the future

Shoppable content on their terms

Retailers are leveraging augmented reality(AR) to elevate the shopping experience.
Within the next year, nearly 100MM
Americans will use AR at least once amonth.4

Shoppable content is transforming the way
consumers engage with brands and makepurchase decisions in the moment of
discovery. This year’s Upfronts and
NewFronts saw major media platforms likeRoku, NBCU/Peacock, Amazon, and Conde
Nast all announce new shoppable adformats.

Snapchat introduced its AR Enterprise
Services this year to empower brands tointegrate AR technology. Through a
Shopping Suite, businesses can use Snap’s
3D Viewer, AR Try-On, and Fit Finder tools on
their own websites and apps.5 Nike andMen's Warehouse are currently testing
Snapchat's AR mirrors, enabling customers
to virtually try on products, create and sharecontent, and access additional productinformation.6
Brands that offer innovative AR experiences
are attracting new shoppers – 92% of Gen Z
express interest in AR for shopping, andretailers who adopt AR are 82% more likely
to receive recommendations.7

Peacock is launching “Must ShopTV” to let
users shop products that appear in content,
like the knives and cutting boards featured
in “Top Chef”. Powered by KERVInteractive, an algorithm identifies
shoppable products that can be purchased
via QR code for now (and via remotecontrol in the future).8
Roku now enables shoppers to convert
directly with one click of their remote, via
integration with Shopify into action ads9.
Shoppable content is unlocking new ways
for consumers to shop on their own terms
and paving the way for a vastly different TV
viewing experience, should consumers
embrace it.

Designing for the Now and Next: 2023 – Mid-Year Update

7

Tech enables personalized commerce:
how brands can get involved• Embrace and test new shoppable formats to capitalize on the moment of
discovery and move consumers seamlessly to conversion.
• Consider how technology can enhance how consumers experience, play,and shop your brand (AR, AI, etc.).
• Determine which technologies will enhance the customer’s experience withyour brand (personalization/ease of use), and which will be disruptive or
harder to adopt.

Designing for the Now and Next: 2023 – Mid-Year Update

6Shifting sources of influence
As a focus on wellness calls social media into question, the influencer
landscape is being reshaped in favor of more credible and authentic voices

A focus on wellness calls media’s
influence into question
In April, Dove launched the Campaign for
Kids Online Safety to address the rise inyouth mental health issues linked to social
media,1 adding to the debate about
media’s influence. Two months later,
backlash from Shein’s influencer trip meant

to alleviate concerns about labor
conditions in China2 reinvigorated questions
around influencer marketing’s relevance intoday’s climate.3 Amidst growing
awareness of social media’s negative
influence, the influencer marketing model isbeing reshaped.

De-influencers & micro-influencers
The de-influencing movement itself is alreadytaking new shape, despite only being around for a
few months. At first about influencing consumers
not to buy4, de-influencers now influence thepurchase of more affordable dupes. One
unintended impact of the de-influencing trend isincreased trust of micro-influencers. According to
AdAge, influencers with 1k-100k followers are moretrusted among Gen Z “in this particular moment of
de-influencing.”5Some brands, like Taco Bell, have been successful
playing with the influencer marketing model by
employing a major influencer - Doja Cat - as a“de-influencer.” Consumers who picked up on thejoke drove increased demand for Taco Bell.5
Designing for the Now and Next: 2023 – Mid-Year Update5Shifting Sources of Influence
Rising influence of podcasters

Rising influence of gamers

In May, VOX released research on thegrowing influence podcasters have within
the cultural zeitgeist. According to theirresearch, 75% of listeners value podcasters’
influence more than they value theinfluence of social media influencers (15%).6
With the average podcast listenerconsuming 8 episodes per week,7 that is awhole new level of influence.

Gaming is now a cultural force, falling justbehind TV and social media in time spent.10
It now extends well beyond the gaming
ecosystem and has found a home in social
media. The broader reach andengagement this gives gaming has turned
gamers themselves into influencers.

Top podcasters offer consumers a real,
unfiltered – more trustworthy – view of theworld. Among Hollywood Reporter’s mostpowerful people in podcasting are voices
like Emma Chamberlain, a 21 year old who”mimics real life conversations, virtually,”
Jamele Hill with her thoughtful, intimate
interview style, and Alex Cooper, whostarted her career with brutally honest
conversations about sex and dating – and is
now Spotify’s top earning female
podcaster.8 Also on the list are comedic
voices who talk about seemingly nothing –and in the case of Smartless, do it so wellthey become a TV show.9

TikTok is seeing “gamers exchange ideas toget more out of their favorite titles,”10 while
YouGov calls out participation in gaming
communities and following gaming
influencers/streamers as being vitalelements of the enjoyment of gaming. In
fact, weekly gamers are 23% more likely totrust products recommendations fromgaming influencers.11 How influential are
gamers these days? So much so that they
are becoming gaming publishers in theirown right. In early June, One True King
launched Mad Mushroom, a publishingdivision that lets top streamers publish,
distribute, and market new games.12

Thomas George Cassell, known as
Syndicate, is one of gaming’s top
influencers, conducting walkthroughs ofgames for nearly 10MM subscribers.13

Designing for the Now and Next: 2023 – Mid-Year Update

7

Shifting Sources of Influence:
How brands can get involved• Audit your influencer relationships to make sure they feel authentic,
trustworthy, and credible for your brand.
• Identify the role different types of influencers can play within yourcommunications – are you trying to drive reach and buzz, or trust andcredibility?
• Ensure you strike up an authentic relationship with influencers that does not
feel forced or disingenuous, as consumers are hyper-aware and attuned tothe difference.

Designing for the Now and Next: 2023 – Mid-Year Update

6Media is ‘niching down’
As consumers turn to media to express their identities and indulge
unique interests, media – and culture – is shifting from mass to niche

Rise of Niche Communities
There is much speculation about when
culture started to fragment (The sheer
volume of content? Social media
algorithms? Echo chambers? Indulging newinterests during lockdown?) but it’s clearthat niche culture has risen and is here tostay. Gen Z may not be solely responsible,
but they played a big role. Having grown up
in the digital age, among algorithms thatcater to their unique tastes and interests,
they have helped turn the internet from “atown square to a vast expanse of microcommunities organized around topics ofinterest.”1
In fact, 65% of Gen Z agree that content
that’s relevant to their interests is more
important than content that lots of people
are talking about.2

The Webby Awards refer to niche
communities as having three key attributes –hyper-interest driven, independent, and attimes, private.3 They form when people (notjust Gen Z!) seek out shared interests andstumble on communities like #cozygamers
or #tiredmoms on platforms like YouTube,
Reddit & TikTok.4
To date, brands have largely stayed awayfrom niche culture, instead prioritizing
established trends with built-in reach. But thisis starting to change. Fashion brands like
Diesel and Adidas are harnessing nichemusic platforms NTS and Color, respectively,
to create brand experiences for passionate
fan bases.5

Designing for the Now and Next: 2023 – Mid-Year Update

5Media is ‘niching down’Massification of Niche Genres
The paradox of media fragmentation is thateven niche content can have a moment andget catapulted into mainstream media. TakeThe Last of Us’ skyrocket into fame as the TV
version of the game broke viewing records not
only in the US, but Europe, and Latin America
as well.6
Or Hailey Bieber rocking “Tomato Girl Summer”–
the new summer aesthetic for 2023 that has
amassed 208MM TikTok views (and counting)and has Airbnb predicting an uptick in travel to
Italy this summer.7
Given the right platform (TV for The Last of Us,
celebrity participation for #TomatoGirlSummer),niche doesn’t always stay niche.

The Staying Power of Niche
Consumer trend forecaster WGSN predicts
that niche culture is here to stay. The rise ofalgorithms that don’t rely on opting in (vialikes/follows) or social networks - such as
TikTok’s – is narrowing users’ feeds. InsightSenior Strategist Cassandra Napoli believes
that “over the next two years we’ll start tosee a shift from mass to micro culture, driving
a rise in interest-based creators, communities
and platforms, redefining digital culture as
we know it.”8

Designing for the Now and Next: 2023 – Mid-Year Update

5Media is ‘niching down’:
how brands can get involved• Don’t shy away from niche interests or communities – they are a way to build
a deeper relationship with consumers around shared interests and passions.
• Leverage media partners and/or social listening to identify niche
communities and trends that share a common interest or purpose with yourbrand.
• Ensure you have a reason to engage that adds to the conversation or
experience (does not interrupt or detract).

Designing for the Now and Next: 2023 – Mid-Year Update

6Media as a playground for unique
identities and passions
At the beginning of the year, wefound ourselves in the midst of aVibecession.
Perhaps the vibe will always feel off,
as the world around us increases incomplexity and the speed of culture
quickens.
What gives us hope is the consumers
who are turning to media as a safe
space and a playground for theirunique identities, interests andpassions. Brands who intersect with
their interests in meaningful ways will
earn their love and their
participation.
At Carat, we Design for People - byputting people at the center of how
we go to market, we design
rewarding media experiences thatmake everyday life better.

Carat
2022
Designing for the
Nowpredictions
and Next:for
2023

16

Our predictions at the beginning of the year
View the full report from January here.
Dopamine chasing
is changing consumption
As tensions rise, people are turning
toward platforms and content thatprovide quick, positive uplifts during
everyday life. Consumers are craving
euphoric messaging from brands,
dopamine hits from hyper-casual
gaming and shopping, and shifting
content consumption as episodic
viewing becomes the new tentpole.

Wellness as a non-negotiable
As consumer sentiment trends
downward, wellness is being prioritizedat a far greater rate than in previous
recessionary periods. Wellness is acurrency and is one area that
consumers are not willing to scaleback spending on. Media has spurred
the rise of wellness communities andopened up a new world of access,giving every brand the opportunity to
become a health brand.

Simplicity in the face of complexity
As the world increases in complexity,
consumers are seeking practical solutions
and adopting innovations that make lifeeasier and simpler. Commerce
innovation is here to stay and has paved
the way for super app adoption in the
future. AI is coming and will impact theease of how we interact with brands andwith each other. Progress in sustainability
and social good will be driven bypractical solutions that are easier toadopt.

Identity will shape moreinteractions
As consumers’ moods shift on what feels
like a daily basis, so too can theiridentities. The potential of digital spaces
and the metaverse enable people theopportunity to show up exactly as theywish – either as avatars, or authenticallythemselves. Media platforms now enable
identity to be expressed either URL or IRL.

Plus, check out The Mid-Year Trends episode of The Human
Element: A Carat Podcast with Joanna Hawkes, EVP Head of
Strategy at Carat US, and Jon Manka, Director of Audience &Insights at dentsu Media US, for a mid-year check-in on ourannual consumer insights and media trends predictions, andwhat we can expect for the second half of the year.

Designing for the Now and Next: 2023 – Mid-Year Update3Sources
Trend 1: Media Helps Process Complex Emotions

1. https://www.nytimes.com/2023/01/19/movies/m3gan-gay-sensibility.html
2. https://www.reddit.com/r/darksouls/comments/1v5lzs/how_dark_souls_helped_me_mo
ve_past_depression/
3. https://www.forbes.com/sites/danidiplacido/2023/06/28/mcdonalds-grimace-shakememe-explained/?sh=4991da2d4ade
4. https://pro.morningconsult.com/instant-intel/gen-z-favorite-entertainment-genres
5. https://www.businessinsider.com/disney-ceo-bob-iger-gets-win-apple-vision-propartnership-2023-6
6. https://worldxo.org/experience-radar-apple-unveils-new-mixed-reality-headset-andcokes-new-game-inspired-flavour/
7. https://www.nba.com/news/nba-and-meta-announce-multiyear-partnershipextension
8. https://www.livescience.com/technology/virtual-reality/best-vr-mindfulness-games2023
9. https://www.axios.com/2023/07/06/barbie-movie-marketing-power
10. https://www.nytimes.com/2023/05/24/movies/summer-movies-2023.html
11. https://www.nytimes.com/2023/06/25/realestate/barbiecore-home-decor-interiordesign.html
12. https://www.famouscampaigns.com/2023/05/fantastic-beasts-and-where-to-playthem-the-tamagotchi-x-harry-potter-collab-you-never-knew-you-needed/
13. https://globalnews.booking.com/bookingcom-and-disney-invite-travelers-to-be-partof-their-world-this-summer-with-under-the-sea-inspired-stays-in-celebration-of-the-littlemermaid-only-in-theaters-on-may-26/
14. https://www.wundermanthompson.com/insight/the-age-of-re-enchantment-report

Trend 2: Tech Enables Personalized Commerce

1. https://techcrunch.com/2023/06/29/microsoft-brings-new-ai-powered-shopping-toolsto-bing-and-edge/?guccounter=1
2. https://ca.movies.yahoo.com/klarna-looking-toward-future-ai-135044177.html
3. https://www.cnbc.com/2023/06/12/amazon-is-using-generative-ai-to-summarizeproduct-reviews.html
4. https://www.insiderintelligence.com/content/us-ar-users-2023
5. https://www.retaildive.com/news/snap-augmented-reality-tech-tools-business/645924/
6. https://www.forbes.com/sites/stephaniehirschmiller/2023/04/25/how-snap-microsoftand-exclusible-are-helping-nike-zegna-and-shiseido-harness-ar-ai-andweb3/?sh=6ed105907588
7. https://www.retaildive.com/news/snapchat-92-of-gen-z-want-to-use-ar-forshopping/621656/
8. https://techcrunch.com/2023/05/02/peacock-newfront-2023-must-shoptv-shoppableads/
9. https://www.streamtvinsider.com/advertising/roku-integrates-shopify-one-clickshoppable-ads
Designing for the Now and Next: 2023 – Mid-Year Update

Sources
Trend 3: Shifting Sources of Influence

1. https://www.marketingdive.com/news/dove-self-esteem-project-campaign-kidsonline-safety-legislation/647440/
2. https://www.theverge.com/2023/6/30/23779058/shein-influencer-trip-backlash-adsforced-labor
3. https://www.voguebusiness.com/beauty/tartes-dubai-backlash-are-influencer-tripstone-deaf-in-2023
4. https://www.dazeddigital.com/life-culture/article/58129/1/the-rise-of-the-deinfluencertiktok-recession-overconsumption
5. https://adage.com/article/opinion/tiktok-de-influencer-trend-how-gen-z-can-still-bereached-marketers/2491611
6. https://magnaglobal.com/magna-vox-study-reveals-podcasters-are-more-influentialthan-influencers/
7. https://www.forbes.com/sites/qai/2023/02/02/media-2023-podcasting-after-the-hypeby-the-numbers/?sh=5728f2d877e5
8. https://www.hollywoodreporter.com/business/digital/most-powerful-people-inpodcasting-1235228738/
9. https://apnews.com/article/smartless-will-arnett-jason-bateman-sean-hayesace4f2bc77dcf8d4c51e81a896037bf9
10. https://www.thedrum.com/news/2023/06/21/the-rise-gaming-culture-the-next-frontiermarketing
11. https://business.yougov.com/content/7999-global-gaming-report-2023
12. https://www.bloomberg.com/news/articles/2023-06-13/twitch-youtube-influencers-arebecoming-video-game-publishers
13. https://hireinfluence.com/blog/top-gaming-influencers/

Trend 4: Media is ‘Niching Down’

1. https://digiday.com/marketing/marketers-adapt-to-serve-niche-communities-asculture-fragments-strays-from-universal-water-cooler-moments/
2. https://blog.youtube/culture-and-trends/3-creator-economy-trends-2023/
3. https://www.webbyawards.com/news/2023-trend-report-never-niche-enough
4. https://www.tiktok.com/business/en-US/blog/tiktok-2023-whats-next-trend-report
5. https://www.voguebusiness.com/fashion/fashion-niche-music-platforms-culturalrevelance-colors-studio-nts-diesel-burberry-adidas
6. https://variety.com/2023/digital/global/the-last-of-smashes-hbo-svod-ratings-europe1235553491/
7. https://people.com/tomato-girl-summer-fashion-trend-everything-to-know-7551964
8. https://www.wgsn.com/en/blogs/trend-qa-rise-micro-culture-and-more

Designing for the Now and Next: 2023 – Mid-Year UpdateContact us
Amanda Pinto, VP, Strategy | Amanda.Pinto@carat.com
Christina Lu, SVP, Strategy |Christina.Lu@carat.com
Joanna Hawkes, EVP. Head of Strategy | Joanna.Hawkes@dentsu.com

Designing for the Now and Next: 2023 – Mid-Year Update17