digital marketing challenges & trends ss
TRANSCRIPT
May 18, 2015
Digital Marketing – Challenges & Trends
Dean IlijasicChief Strategy & Innovation [email protected]
Outline• Digital Marketing – Current Landscape
• Trends Fueling Digital
• Navigating The Digital World
• Ongoing Engagement
Digital Marketing – Current Landscape
Top Marketing Challenges
Common challenges
1. Too many channels – too many choices
2. Data overload and confusion
3. Connecting and engaging with the target audience
Source: Adcom Research
Digital Marketing
By 2019, CMOs predict digital marketing will account for more than 75% of the marketing budget.
Source: Accenture Interactive, 2014 CMO Survey
Digital Marketing
Source: Gartner, Inc., “Forecast Analysis: Enterprise Application Software, Worldwide, 1Q14 Update”, April 29, 2014
Gartner predicts that, by 2017, the CMO will have a larger IT budget than the CIO.
$103 Billion
Digital marketing spend by 2019
Source: Forrester’s US Digital Marketing Forecast. 2014 to 2019
Trends Fueling Digital Marketing
Trends
2. Technology Expansion
1. The Empowered Consumer
3. Channel & Content Acceleration
1. The Empowered Consumer
Connected
Informed
Demanding
Connected
Source: DigitaLBi
• 72% of smartphone users use their phone when shopping in-store
• 40% will call friends to get an opinion• 35% post photos of their prospective purchases for
‘feedback’ and decision reinforcement.
Informed • 82% of online shoppers use the internet to research products before making a purchase.
• B2B: 57%
Source: comScore and eTailing Group – Pulse of The Online Shopper, 2014. CEB 2014.
Demanding • 54% of consumers would consider ending their loyalty relationship with a brand if they were not given tailor-made, relevant content and offers.
Source: CMO Council
2. Technology Expansion
Mobility
Devices
Collaboration
Mobility
Mobile is the “power-tool” for today’s consumersSource: 2014 salesforce.com Mobile Behavior Report. Return Path 2014. ComScore 2014
• 51% of emails are being read on a mobile device• 72% of US mobile phone users are smartphone owners
Innovation is creating new
touch-points that consumers
didn’t even know they wanted.
Devices
We Are Here
• New devices are creating even more channels.
• The ‘Internet Of Things’, will be by far the world’s largest device marketSource: BI Intelligence Estimates
2013 2014 2015E 2016E 2017E 2018E 2019E0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
The Internet Of Everything Internet Of Things
Connected Cars
Wearables
Connected/Smart TVs
Tablets
Smartphones
Personal Computers
We Are Here
Devices
Collaborative Economy
• An economic model that let’s people get what they need from each other using commonly available technologies.
• Bypassing traditional corporations.
Source: Crowd Companies. April, 2015.
• In the next 10 years, PWC predicts the Collaborative Economy will grow from $15B to $335B revenue.
Source: Crowd Companies. April, 2015
• 10 year old etsy. 19M active shoppers, doesn’t own a single factory or showroom, had an IPO for $3.8B
• 8 year old Lending Club has issued over $7B in P2P loans, doesn’t own a single bank, branch or ATM and is valued at $7B
• 7 year old AirBnB has over 23M guests, doesn’t own a single bed, bath or bar, and is valued at $20B
• 6 year old Uber had 140M rides in 2014, doesn’t own a single taxi or towncar and is valued at $41B
Collaborative Economy
Over 150 brands now partner with, sponsor, or buy-out collaborative economy companies
3. Channel & Content Acceleration
Social
Content
• Email is not dead• 4.1 billion email
accounts. 5.2B by 2018• Marketing automation
and CRM increasingly critical tools for digital marketing success
Social
Volvo Construction Equipment builds personas of its best customers.
Volvo uses paid social ads to engage these individuals and drive them to the Volvo website where they are converted to email subscribers.
Facebook uses this profile to identify individuals who fit the ideal profile of a potential buyer.
Social & Email Case Study
Volvo Construction Equipment’s digital marketing solution helps dealers to sell $100 million dollars worth of new and used equipment each year.
Source: Domo, 2014. Sprout Social.
Content
Millennials • 90% create online
content 1x/month
• 75% curate content 1x/week
But the average attention span has dropped from 12 seconds in 2008 to 8 seconds.
Source: National Center for Biotechnology Information, U.S. National Library of Medicine, The Associated Press. 2014
Source: National Center for Biotechnology Information, U.S. National Library of Medicine, The Associated Press. 2014
. . . the average attention span of a goldfish is 9 seconds.
Cont
ent P
rodu
ction
Content Consumption
Content Overload!
Content Overload!
How To Navigate The Digital World
How To Navigate The Digital World
• Create Alignment
• Develop Great Brand Experiences
• Cultivate Ongoing Engagement
Create Alignment
Internal
Know Your Brand
External
Know Your Audience
Great Brand Experiences
• Vision• Mission• Values• Brand Positioning/Promise• Brand Features & Benefits• Personality & Voice
• Logo & Graphic Standards• Personas - Content• Media Eco-Systems• Customer Journey Experiences• Competitive Assessment• Marketing & Communication Plan
Target Audience
Moment + Moment =Moment + Experience
Internal
Know Your Brand
External
Know Your Audience
Great Brand Experiences
So, What Makes a Great Experience?
• Marketers have typically referred to
a marketing funnel. However, a
linear path to market to their target
audience is no longer effective in
today’s world.
Great Brand Experiences
• The “funnel” is dead.
• The journey has replaced the traditional marketing funnel because decisions are no longer linear.
• Customers today are more empowered, with more information, and can get information and make decisions anywhere at any point in time
Great Brand Experiences
Great Brand Experiences
Is Your Brand Present During Those Moments That Matter?
Make It Easy
Make It Relevant
Encourage Conversations & Community
Invent Your Own Brand Moment
Make It Easy
30,000 doors150 hotels worldwide
Make It Relevant
First company to fit women into their favorite bra with a quiz.• No fitting rooms• No measuring tapes• No photos
Over 1 million customers in less than 2 years
Encourage Conversations & Community
~ 5 months310,00 weight-loss plans created and shared.
Invent Your Own Brand Moment• CMO, Evan Greene• Challenge: Stay relevant outside
the 1 day• Aligned Mission & Vision: “. . .to
touch people’s lives through music. . .”
• Macklemore and Ryan Lewis gave a surprise performance on a New York City bus.
Ongoing Engagement
Ongoing Engagement
• Start Early - it is part of the design
• Optimize/Attribution
• Don’t just measure tactics
Effective digital analytics starts during campaign design:
• Define success metrics/goals in terms that are specific (quantifiable)
• Identify the Key Performance Indicators (KPIs) that will be tracked – and, from where this data will be obtained
• Determine report frequency required (daily, monthly, quarterly, semiannually, etc.)
Ongoing Engagement
Data Insights Recommendations Story
If you are not getting this – tell them to go back and try again
Final Take-Away’sDigital is not coming. It’s here.
More choices & technology. More confusion. Stick to the fundamentals.
Know your brand. Know your audience. Create alignment. Be authentic.
Digital is not a tactic. Have a digital strategy.
Hire for digital expertise. Expect more from your agencies.