nedma seminar: the future of interactive marketing (and what to do about it)
DESCRIPTION
On April 14, 2010, the New England Direct Marketing Association (NEDMA) hosted a breakfast meeting with Shar VanBoskirk, Vice President & Principal Analyst, Forrester Research, to discuss the future of interactive marketing (and what to do about it). During the presentation, Shar addressed the following hot topics: What is the current state of interactive marketing? What are the greatest challenges the interactive marketer faces today? What best practices will help marketers overcome present challenges? For more information on upcoming NEDMA events, visit: http://www.nedma.com/eventsTRANSCRIPT
The Future Of Interactive Marketing (And What To Do About It)
Shar VanBoskirkVP and Principal AnalystForrester Research
April 14, 2010
3Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Firms must accommodate an ever- changing set of marketing rules.
THEME
4Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Agenda
•What is the current state of interactive marketing?
•What are the greatest challenges the interactive marketer faces today?
•What best practices will help marketers overcome present challenges?
5Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Interactive marketing will near $55 billion by 2014
6Entire contents © 2008 Forrester Research, Inc. All rights reserved.
1) Monies are shifting from traditional to interactive
7Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Email replaces print and direct mail budgets
"Email is so inexpensive we are getting even more use. We are completely skipping the direct mail piece of our
Student Campaign.“-- Sovereign Bank
8Entire contents © 2008 Forrester Research, Inc. All rights reserved.
2) Marketers try to balance budgets with consumer media time
9Entire contents © 2008 Forrester Research, Inc. All rights reserved.
3) Empowered consumers expect interactive relationships
10Entire contents © 2008 Forrester Research, Inc. All rights reserved.
4) Interactive channels will increase in effectiveness
Increasing effectiveness
Decreasingeffectiveness
11Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Agenda
•What is the current state of interactive marketing?
•What are the greatest challenges the interactive marketer faces today?
•What best practices will help marketers overcome present challenges?
12Entire contents © 2008 Forrester Research, Inc. All rights reserved.
1 The recession.
13Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Marketers are functioning with leaner teams than ever
14Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Most staff fewer than 10 people toward interactive
Source: Q3 2009 Global Interactive Marketing Organization And Agency Survey
15Entire contents © 2008 Forrester Research, Inc. All rights reserved.
$ $ $$
Media spend
And they are sacrificing branding in order to drive immediate transactions
Consideration BuyersAwareness Preference Purchase LoyaltyEyeballs
66% of online media buys will be performance based by 2014,
up from 58% today
16Entire contents © 2008 Forrester Research, Inc. All rights reserved.
2 Finding the right audiences.
17Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Even simple user-generated content like photos
Media proliferation means everything is a place to advertise
18Entire contents © 2008 Forrester Research, Inc. All rights reserved.
People want content to come to them wherever they are
19Entire contents © 2008 Forrester Research, Inc. All rights reserved.
3 Figuring out social media.
20Entire contents © 2008 Forrester Research, Inc. All rights reserved.
• The trend is irreversible• It has changed the balance of power• It creates rapid (and often uncontrollable)
innovation
21Entire contents © 2008 Forrester Research, Inc. All rights reserved.
This means more than just adopting a new set of marketing tools
• Adidas “New School of Thought” campaign tapped online community
• Feedback on concept, creative, offers, even font size• Germinated new “strike a pose” campaign
22Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Zappos uses Twitter to give its brand a human face
“The radio’s morning show is
talking about twitter. So now I
am twittering about the radio’s morning show.
The circle of life is complete.”
“I just got challenged to a dance-off by my
friend’s kid. Sadly, I lost.”
23Entire contents © 2008 Forrester Research, Inc. All rights reserved.
4 Mobile.
24Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Mobile has a lot of potential
25Entire contents © 2008 Forrester Research, Inc. All rights reserved.
But the mobile supply chain complicates marketer experimentation
• Brands• Agencies• Publishers
• Mobile marketing enablers
• Operators• Infrastructure providers
Source: Michael Becker, iLoop Mobile, Inc., andThe Mobile Marketing Association
26Entire contents © 2008 Forrester Research, Inc. All rights reserved.
So right now mobile experiments are “cool,” but hard to value
• Ran mobile banners to drive Superpages iPhone app
• Over 87 million ad impressions served in 7 weeks*
• Resulted in more than 12,000 direct Superpages application downloads
• Superpages reached a ranking of #9 in the Lifestyle app category
So what?
27Entire contents © 2008 Forrester Research, Inc. All rights reserved.
5 The Splinternet.
28Entire contents © 2008 Forrester Research, Inc. All rights reserved.
The Internet is entering a new era
29Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Proprietary standards will define interactive experiences
30Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Marketing will no longer be as we know it
31Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Agenda
•What is the current state of interactive marketing?
•What are the greatest challenges the interactive marketer faces today?
•What best practices will help marketers overcome present challenges?
32Entire contents © 2008 Forrester Research, Inc. All rights reserved.
! Build interactive, not just digital strategies
33Entire contents © 2008 Forrester Research, Inc. All rights reserved.
1) Reduce the role of channels and channel specialists
34Entire contents © 2008 Forrester Research, Inc. All rights reserved.
2) Develop your interactive organization
35Entire contents © 2008 Forrester Research, Inc. All rights reserved.
3) Invest in data and data relationships
Linkage Experian enables a de-
personalized data sharing network, with linkage between disparate datasets created via both personal & non-personal
data variables
Privacy & Compliance
Experian ensures that its client’s compiled personal data is never
shared with any 3rd party and that non-personal linkages are
obtained with requisite notice, transparency & notice from
reputable partners
DataExperian acts as the data agnostic hub, enabling the
marketplace and connecting all relevant, available data to the client’s targeting and analytical
requirements
Trusted 3rd PartyAs the trusted 3rd party, all
participants in the data sharing ecosystem can leverage
Experian technology & expertise to maintain the sanctity of their
sensitive information
36Entire contents © 2008 Forrester Research, Inc. All rights reserved.
4) Innovate to improve the customer experience
Enhance
Include
EmpathizeIterate
Improve a program already in place
Increase the margin of an existing effort
Incorporate community perspective
Accept and apply continuous feedback
Humanize a brand
Relate to user need
Roll out in phases
Allow for outgoing enhancements
Does the innovation…?
37Entire contents © 2008 Forrester Research, Inc. All rights reserved.
5) Assume a modular approach to campaign development
38Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Summary
• Interactive marketing is poised for significant growth
•But changes in media and technology bring challenges as well as opportunity
•Marketers can tackle challenges by creating interactive, not just digital strategies
– Reduce the role of channel in your strategy
– Build out your interactive organization
– Invest in data and data relationships
– Innovate
– Create campaigns modularly
39Entire contents © 2008 Forrester Research, Inc. All rights reserved.
Shar VanBoskirk
+1 617.613.5845
www.forrester.com
Thank you