By Adam Furness, Managing Director APJ at impact.com
It’s time to acknowledge a fundamental shift in the marketing landscape: traditional brand-centric advertising is losing its grip.
The era when companies could shape consumer perception through meticulously crafted campaigns and controlled narratives is fading. Today, it’s community-driven trust that’s shaping buying decisions and smart marketers are paying attention.
McKinsey identified this shift a few years ago, introducing the concept of the Community Flywheel; organic, consumer-led conversations that build sustained brand momentum.
The playbook of mass media and hyper-targeting just isn’t cutting it anymore. People aren’t looking to be constantly sold to. Rather, they want to feel seen, heard, and understood – craving connection and belonging.
Traditional advertising, with its one-way messaging and polished sales pitches, doesn’t land like it used to.
Instead, people are turning to trusted voices within their networks. This means turning increasingly to friends, peers, influencers, and creators who speak with authenticity and authority and can help them navigate the overwhelming sea of consumer choices.
Adapt or atrophy
For marketers still clinging to legacy tactics, 2025 is a make-or-break moment. Adapt or risk becoming irrelevant. It’s that simple.
The numbers speak for themselves: 84% of Australian consumers base their purchase decisions on referrals and recommendations from someone they know, with 58% trusting personal acquaintances the most for purchasing information. Traditional advertising? Trusted by just 3%.
This isn’t just an Australian trend. APAC consumers are leaning heavily into peer-driven trust, with over four in five discovering new brands through everyday conversations —reshaping how and where buying decisions are made.
Savvy brands saw this shift coming. Over a decade ago, early adopters like Sephora leaned into the power of community and influence to fuel long-term growth.
Now, global giants are catching up. In March, Unilever’s new CEO revealed that the company is allocating 50% of its ad spend to social and increasing creator partnerships by a factor of 20.
Meanwhile, brands stuck in the old playbook are faltering.
Just look at the retail headlines. Forever 21 filed for Chapter 11 bankruptcy and is closing stores. Macy’s, the largest department store in the U.S, plans to shutter 150 locations by next year – a third of its footprint.
Rivers clothing and footwear will close 136 of its stores.
In Australia, Rivers will close all 136 of its stores by mid-2025, and Godfreys has gone online-only after entering administration.
These aren’t just business failures—they’re red flags. Traditional acquisition tactics are no longer enough.
In a world of infinite choice, consumers are drawn not just to what brands sell, but what they stand for, and the communities they help cultivate. It’s no longer about pushing messages; it’s about fostering relationships.
And when brands fail to build real, meaningful connections? Loyalty disappears fast.
The marketing power shift: from brand push to community pull
In an era of “do your own research,” consumers are more informed, empowered, and in control than ever. Social proof now reigns supreme. People rely on reviews, social media content, and the real-life experiences of others to make buying decisions.
Platforms like TikTok have rewritten how people discover products—well over 50% of Gen Z now use it as their primary search engine. As the dad of two teenage girls, I can confirm: the appetite for unboxing videos is seemingly endless.
This is a major shift from how marketing used to work. Brands used to control the narrative—now they’re part of the conversation. Rather than broadcasting a message and hoping it sticks, smart brands are embedding themselves in communities, creating conversations rather than campaigns.
In a market saturated with noise and skepticism, community-led marketing stands out as a powerful antidote. That’s why more brands are seeking out influencers whose audiences reflect their target customers, partnering with creators who offer real value, and building advocacy programs that empower customers to become vocal, revenue-driving champions of the brand.
It’s marketing, not as a megaphone, but as a dialogue.
Here’s how marketers can embrace this approach
The good news, is that it’s not complicated – but it does require a shift in mindset:
Encourage Social Proof – Make it easy for customers to leave reviews, share their experiences and recommend friends. User-generated content carries more weight than any ad.
Partner with Creators Who Get It – Work with influencers and micro-creators whose audiences align with your brand. Authenticity matters more than follower count.
Create Shared Value – Build spaces—online and offline—where your customers feel heard. Give them a reason to engage beyond the transaction.
Be Real – Transparency builds trust. Consumers can spot a sales pitch a mile away, so keep it honest.
Why This Matters
Community-driven marketing reduces reliance on costly paid media and drives more sustainable, long-term growth. Customers who feel part of a brand’s community are more likely to stay loyal and engage more deeply over time.
But beyond staying relevant, shifting to a community-driven model is a smart business decision. With rising media costs, driven by search performance price inflation and the growing dominance of the Google-Meta duopoly, paid acquisition is becoming increasingly expensive and less reliable.
In a market where global giants are squeezing out local retailers, community-led marketing provides a strategic edge. It reduces dependency on volatile ad markets, drives higher customer lifetime value, and lowers the cost of acquisition. And this isn’t just rhetoric. Customer referrals have been shown to drive 2x higher conversion rates compared to paid ads.
In a tightening market, that’s not just a competitive advantage — it’s a survive and thrive strategy.