Since 2012 Sector Trends - JEGI · 2016-01-10 · B2B Marketing Solutions – Key Trend #3 10 . 11...

January 19, 2012 www.jegi.com

Since 1987

2012 Sector Trends

2012 JEGI Media & Technology Conference

Time Warner Center, New York City

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2012 Sector Trends

B2B Marketing Solutions

Richard Mead, Managing Director, JEGI

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Reports of Death of B2B Greatly Exaggerated

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http://www.youtube.com/watch?v=4vuW6tQ0218

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B2B Marketing Solutions – Key Trend #1

The Growing Importance of B2B Marketing

Solutions Companies

Extensive Market Knowledge

Efficient, Customized Marketing Channels

Integrated Work-Flow Solutions

Stronger Partnerships with B2B Customers

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$30.9 $30.6

$27.2 $27.2 $28.5

$30.2 $31.9

$34.1 $36.0

-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

Live & Virtual Events E-Media

B2B Magazines B2B Outsourced Custom Publishing

Source: VSS Communications Industry Forecast 2011-2015

B2B Marketing Solutions – Key Trend #1

B2B Marketing Solutions Spending

($billions)

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B2B Marketing Solutions – Key Trend #2

Combining Internet Functionality with Legacy

Marketing Channels

Engage a Broader Community

Deliver Valuable Content

Generate Qualified Real Leads

Increase Measureable Marketing ROI

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Global Buyers

B2B Marketing Solutions – Key Trend #2

Providing One-Stop Sourcing for B2B Marketing Solutions

Global Sellers

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Content

Research

Events

Lead Gen

eCommerce

Custom Marketing

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Penton’s Product-to-Sales Ecosystem

B2B Marketing Solutions – Key Trend #2

B2B Marketing Solutions Companies Are Repositioning For A

New Golden Age

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B2B Marketing Solutions – Key Trend #2

An Integrated Approach from Northstar Travel

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Control the Community, Control the Game

More Relevance, More Reward

New B2B Holistic Platforms

Attractive B2B Investment Opportunities

The B2B Marketing Solutions E-volution Requires Initiative,

Innovation, and Investment

B2B Marketing Solutions – Key Trend #3

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Count Down To Attractive Valuation Implications

for B2B Investors

B2B Marketing Solutions – Key Trend #3

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Hello Tolman

A New Dawn for B2B Marketing Solutions and Their Investors

B2B Marketing Solutions – Key Trend #3

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2012 Sector Trends

Online Display Advertising

Tolman Geffs, Co-President, JEGI

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Online Display Advertising – Key Trend #1

Online Display Advertising has Changed Fundamentally –

Most Players In Back Seat

Display Driving Forward

Big 5 Grabbing 70% of New Growth

“Everyone Else” Fighting for 30% of Market Growth

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$7.1 $7.6

$8.0

$9.9

$12.3

$14.8 $16.1

$19.8

$23.9

$5

$10

$15

$20

$25

2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: eMarketer, 2011. Forrester Research, 2011

+$6.8 bn

+85% over 3 years

$6.8 billion net new spend

Online Display Market Growing Well

U.S. Online Display Spending

($billions)

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Big 5 Control the Market

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Growth in U.S. Online Display Spending

2009-2012E ($billions)

Online Display Top 5 OnlineDisplay

"EveryoneElse" Online

Display

+$6.8

+$4.8

+$2.0

Source: eMarketer, 2011

2009 Spending

2012E Spending

$8.0 $3.1 $4.9

$14.8 $7.9 $6.9

Share of Net New Display Spending

30%

“Everyone Else” Fighting for 30% of Growth

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Online Display Advertising – Key Trend #2

It’s No Wonder. Online Display Advertising – Today –

is NOT a Great Brand Advertising Medium

Biggest Red Herring – % Viewing Time v. % Ad Spend

Web Not a Great Brand Advertising Medium

Big 5 Offer Massive Reach and Efficiency

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Online Display Television

+$6.8

+$10.7

8%

16%

43%

25%

8%

27%

11%

43%

19%

0.5% 0%

10%

20%

30%

40%

50%

Print Radio TV Internet Mobile

Time Spent Ad Spend

Source: Kleiner Perkins; eMarketer, March 2011

Share of Time Spent vs. Advertising Spending, U.S. 2010 Growth in U.S. Online Display Spending

2009-2012E ($billions)

Biggest Red Herring

All Media is Not Created Equal

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Online Display Not a Compelling Experience

Magazine Ad Standard Website Ad

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Web loses something….

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Big Display Guys Offer Massive Reach and Efficiency

At Least the Big 5 Deliver TV-like Reach and Efficiency

(For a Sub-par Ad Experience)

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Online Display Advertising – Key Trend #3

Online Display Advertising – Tomorrow – will be a

Much Smarter Brand Advertising Medium

Web Awash in User Data; Most of Little to No Value

Smarter Data Lies Closer to Publishers & Merchants

M&A Will Focus on Effective Data Management

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Source: Forrester Research

Interest data

Demographic (age, gender)

Psychographic (mindset, propensity)

Social (connections, influence)

Contextual (relevant, content)

Intent Data

Shopping

Search retargeting

Remarketing

Classic Funnel Marketing 101

Audience Targeting Down The Purchase Funnel

Awareness

Retention

Consideration

Preference

Purchase

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On the Internet, nobody knows you’re a dog

But Data Value Varies ... By A Lot

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Source: Major online data aggregator

Most Online Consumer Data is of Limited Effectiveness

Profile of Tolman Geffs

Female

Urban Renter

With Children

HH Income: $20,000 - $29,000

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Multi-Channel

Predictive Audience Modeling

I-Behavior

+Aggregation

+Segmentation

+Modeling

+Insights

SKU Level Data

» » » »

Consumer Data

1,900+ multi-channel retailers

Across all channels

8+ billion transactions

Catalog

Email

Online

Mobile

Direct Mail

Retail

Most Effective Data Approach is Publishers Leveraging Own

Data and Supplementing With Third-Party Data

More Effective Data Originates With Merchants

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Data

Delivery

Management

Consumer Platform

Expect More M&A Focused on “First Party” Data

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2012 Sector Trends

Integrated Marketing Services

David Clark, Managing Director, JEGI

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Integrated Marketing Services – Key Trend #1

Publishers Rapidly Expanding Their Marketing

Services Footprint

Powerful Marketing Assets + Skills

Leverage Content, Audience, Relationships

Deliver Integrated Marketing Solutions

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-

$20

$40

$60

$80

$100

$120

2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: VSS Communications Industry Forecast 2011-2015 Forrester US Interactive Marketing Forecast, 2011

Note: BTL excludes direct marketing and B2B promotion Print includes newspapers, magazines, B2B media and directories

2011

2011 BTL

= $83.4

2011

Interactive

= $34.5

2011 Print

= $60.4

BTL And Interactive Are Attractive Sources of Growth

Print Ad Spend vs. Below-the-line & Interactive Spend

($billions)

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Publishers Building Marketing Platforms

Deep Expertise in Database Marketing, Content

Development, Tablet Media and Consumer Apps

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Integrated Marketing Services – Key Trend #2

Brands Operate as Multi-Media/Multi-Channel Publishers

Build and Maintain 24/7 Digital Presence

Compelling and Personalized Content

Direct Access to Consumers and Content

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+$300 million in social media M&A

Foundation for new, direct social/promotional marketing

Brands Pushing into Social

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Brands Pushing on Content

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Brands Pushing on Content

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Source: CapIQ

14% revenue growth rate

200 acquisitions / investments in 2011

Social, digital direct and best in-class development

Unique global perspective and influence

Agencies Still Dominant

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Integrated Marketing Services – Key Trend #3

CMO Now Focused on Enterprise Marketing Technology

Data-Driven Marketing = “Big Data”

CRM and Marketing Tech Rushing to the Cloud

Tech Expanding into Digital Brand Solutions

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Marketing Technology M&A

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$11 billion marketing tech deals in 2010-11

$26.1 billion cash on hand

Rapidly expanding integration and API partner networks

Formidable New Competition

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2012 Sector Trends

Direct-to-Consumer

Scott Peters, Co-President, JEGI

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Direct-to-Consumer – Key Trend #1

Revolution: Brands Must Engage Their Customers Directly

Distribution Walls Have Come Down

New Skills Required to Succeed

Most Investment is Below the Line

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Direct-to-Consumer –

Brands Must Engage Their Customers Directly

The Retail Model is Evolving

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Nike

Retailers

Catalogs

Nike stores

Online Retailers

Nike.com

Direct sales – most profitable store front

Primary brand connection to consumers

Most important point of contact with a customer

Phase 1 Phase 2 Phase 3 Phase 4

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Why Nike wins?

Consistent branding and access across channels

Offline support to ensure retail partners are happy

Fair and consistent multichannel pricing strategy

Nike.com offers a unique value proposition

• Product personalization

• Unique content

• Social media integration

Direct-to-Consumer –

Brands Must Engage Their Customers Directly

Comprehensive, Multi-channel Retail Approach Wins

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Marketing

How are customers finding my site?

How do I drive more traffic from search and channel partners?

How does my brand leverage social media to drive sales?

Role of digital agency remains critical

Increasing pressure on CMOs to understand the full multi-channel marketing mix

Direct-to-Consumer –

Brands Must Engage Their Customers Directly

Online Marketing Channels Require New Skills

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Source: Outbrain

Breakdown of Known External Traffic Sources

Search 41%

Content Sites 31% Portal 17%

Social 11%

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Major eCommerce Platforms

Direct-to-Consumer –

Brands Must Engage Their Customers Directly

eCommerce Technology Decisions Become Mission Critical

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eCommerce Capabilities Required

Online and offline transactions

Multi-channel pricing and promotion

Supply chain management

Multi-channel marketing integration

CRM integration

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Direct-to-Consumer – Key Trend #2

Social Media is Becoming a Primary

Communication Medium for Brands

Your Customers are Now Your “Friends”

Unprecedented Amount of New Data – But How Do You Make Sense of It?

Social Must Closely Coordinate With Other Channels

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Direct-to-Consumer – Key Trend #2

Social Media is Becoming a Primary Point

of Connection with Customers

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Nike.com

• Social media is shifting from experimentation to core

• Nike.com has 5,534,790 “likes”

• 32,522 talking about this article…

Uses

• Branding

• Consumer Engagement

• Market Research

• Competitive Intelligence

• eCommerce & more

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Direct-to-Consumer – Key Trend #2

Consumers Expect Engagement from Every

Marketing Channel

Out of Home

Magazines & Newspapers

Catalog & Direct Mail

Social Media and Mobile

Engagement TV & Radio

Online Advertising

Website

In-Store

Mobile

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Direct-to-Consumer – Key Trend #2

Rise of the Social Media Data Analytics Providers

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Direct-to-Consumer – Key Trend #3

New Technologies are Continuing to Drive

Better ROI on Marketing Spend

Audiences Can Be Reached in Entirely New Ways

Data and Analytics Present New Insights

Media Optimization Dashboard Coming Soon

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Direct-to-Consumer – Key Trend #3

Online Ad Targeting Continues to Change the Game

Selective audience aggregation via traditional media is no longer a competitive barrier

Ad networks now provide “context” to impressions

Incremental online ad inventory carries little to no expense

Online advertising CPMs hammering offline CPM value proposition

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Direct-to-Consumer – Key Trend #3

New Technologies are Driving

Better ROI on Marketing Spend

SEO / SEM Display

Social Customer Experience

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Direct-to-Consumer – Key Trend #3

Data Driven Insights Change the Game

Real-time behavioral targeting changes value proposition to advertisers

Explosion in real-time data sources is providing analytics firms with a distinct competitive advantage over static media

Social media providing layer of unprecedented (and available) personal data

The definition of ROI is evolving

• Branding impressions

• Lead generation

• Contextual adjacency with key influencers

• Etc.

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Direct-to-Consumer – Key Trend #3

ROI Optimization Dashboard

Online and offline media reinforce each other

Each channel is finding its own ROI center of gravity

Experimentation in online and offline advertising correlations in process

The holy grail in advertising has yet to be found

• ROI Optimization Dashboard for all online and offline media spend

• Keep an eye on Donovan Data System’s Media Ocean

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Growing importance of B2B Media in efficient business marketing and sales

Combining Internet functionality with legacy marketing channels to drive revenue

B2B revolution requires management and money

B2B Marketing Solutions – Richard Mead

Publishes expanding marketing services footprint

Brands are now multi-media/channel publishers

CMO focused on enterprise marketing technology

Integrated Marketing Services – David Clark

Online display growth concentrated in Big 5

Constrained by weak ad formats

But data getting smarter for publishers and merchants

Online Display Advertising – Tolman Geffs

Direct-To-Consumer – Scott Peters

In Closing ...

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Brand’s direct-to-consumer strategy will be the primary focus of marketing activity

Social media will impact all aspects of the brand/consumer relationship

Cross-media marketing optimization is coming…

Since 1987

January 19, 2012 www.jegi.com

150 East 52nd Street 18th Floor

New York, NY 10022

Phone: (212) 754-0710

Fax: (212) 754-0337

2012 Sector Trends