eMarketer Webinar: Key Digital Trends for 2013

©2012 eMarketer Inc.

Key Digital Trends for 2013

December 13, 2012

Presented by:Noah ElkinPrincipal Analyst@noahelkin#eMwebinar

Sponsored by:


Agenda: eMarketer expects five key trends to affect digital marketing in 2013 No. 1: Fragmentation is everywhere No. 2: Online-first is becoming outmoded;

mobile-first is the new priority No. 3: Circuitous is the new linear in

commerce No. 4: Content (marketing) is king No. 5: Data emerges as marketing’s key

currency

Twitter: #eMwebinar


No. 1: Fragmentation is everywhere


Today’s digital consumer is ever-present yet still elusive (Yes, we’re talking about YOU!)


TV remains a potent media force

Reports of my death are greatly

exaggerated. (Really!)


Consumers may watch more TV, but those larger aggregate audiences are dispersed across multiple channels


Accounts of cord-cutting are often overblown, but the phenomenon is real

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Streaming video services are gaining audience but still aren’t over-the-top


Networks are rushing to fill the void

“The ultimate goal is for our viewers to be able to watch ABC content everywhere, anywhere, on any device, on any screen.”

— Geri Wang, president of sales and marketing at ABC Television Network


The bigger challenge: Consumers’ attention is more divided than ever as media multitasking becomes the norm


The mobile audience is divided by device and platform sophistication

Devices vs.

Platforms


Smart-device users are further divided by where they spend their time


Trend No. 1 takeaways

On the surface, there is a critical mass of TV viewers, smartphone and tablet owners, and mobile web users.

- But digging below the surface exposes the fragmentation into micro-audiences.

A return to the past seems highly unlikely.

- If anything, the challenges associated with fragmentation will only proliferate, necessitating a shift in both strategy and focus for marketers that want to keep up with their audiences.


No. 2: Online-first strategy is becoming outmoded; mobile-first is the new priority

Twitter: #eMwebinar


The new math: Smartphone + tablet > PC


The amount of time spent with mobile is growing at 14 times the rate of the desktop web


Time spent is not the only measure of the shift from desktop to mobile


Mobile is likewise becoming a more prominent channel for commerce transactions


Remember that websites are an important entry point for mobile shoppers

Source: Google/Sterling Research/SmithGeiger, July 2012



Shifts away from the desktop to smart devices in content consumption and commerce explain why the mobile-first drumbeat, which rose in 2012, will only grow louder in 2013.

- A concerted marketing strategy that prioritizes mobile is no longer optional. In 2013, it will be essential for business success.

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No. 3: Circuitous is the new linear in commerce


Traditional media ads continue to exercise a strong influence on purchase decisions


Digital makes deeper inroads into the purchase process every year

In-store commerce

Ecommerce

Mcommerce


Ecommerce is no longer just “electronic”

commerce …


… it’s “everywhere” commerce


Smart devices now come into play at every stage of the purchase process


Most mobile shoppers are not channel-exclusive


The smartphone-equipped, socially connected shopper is here to stay If 2012 was the year showrooming moved to the

mainstream, don’t expect the tide to turnin 2013.

Marketers and retailers are better off moving with the tide rather than against it.

Two primary hallmarks of the smart-device shopper are high expectations and limited patience.

- Failing to deliver on these expectations implies considerable risk.

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The bottom line is consumers have a growing arsenal of powerful digital tools to help them establish product availability, find where to get the best price and determine when the best time is to buy it, whether online or in-store.

- That means their path to purchase will not be as simple or direct as it once was.


No. 4: Content (marketing) is king


Not surprisingly, brand marketers and their agency partners are rushing to establish content marketing strategies


The principles of content marketing are applicable across industries


Remember that content comprises paid, owned and earned


The Breakroom in Redken’s Style Station app: “Facebook for hairstylists”


Most content marketing aims to drive pre- and post-sales activity


In an increasingly mobilized world, context shares the crown

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In a world of ever-blurring lines, marketers are fast becoming publishers and publishers are becoming marketers.

- Content remains king, but its emphasis and goals are shifting.

As content marketing takes hold, it is contributing to the proliferation of touchpoints and exponential growth in the number of consumer interactions with brands.


No. 5: Data emerges as marketing’s key currency


“Big Data” is only getting bigger


The majority of companies today characterize themselves as “data driven” but most still see gaps in their use of Big Data


Big Data at work: Personalizing recommendations for you


Retailers may be the most obvious beneficiaries of Big Data, but all industries need to get better at analyzing and using the information they collect


Waze uses crowdsourced data to build platform; delivers targeted offers in return

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The data generated by multiple interactions across multiple devices and platforms is expanding at an exponential rate, far faster than our collective ability to process and make sense of it.

But the day where that information represents true currency for most companies—in actual dollar terms as well as more figuratively as a tradable commodity—is rapidly approaching.

- Content may power the media machine, but data sets the course for the whole enterprise.

Marketing Re-imaginedThree Imperatives for Marketing Leaders

Marketing re-imagined requires a new approach

Know your customer as an individual

Create value at every touch

Be an authentic brand and culture

Marketers who re-imagine more likely to outperform

Revenue Growth / Gross Profit Growth3-year CAGR, 2008-2011

Engage:optimize

experienceacross all channels

Analyze: sophisticated and cross company marketing analysis

Low High

High

Low 6% / 7%

12 % / 10% Leading Marketers

http://www.ibm.com/smarterplanet/us/en/smarter_marketing/article/marketing_analytics.html

IBM research can guide your marketing journey

Only 22% of marketers use social channels in their integrated marketing campaigns.

Less than 20% of marketers use on-line customer behavior data to drive off-line campaigns

IBM State of Marketing 2012370+ Marketing Execs

Mobile sales as a percentage of total site sales hit a record 13% in March 2012 – double 2011

Visitors referred from a social site are 50% more likely to buy than visitors overall

IBM Holiday Readiness Report

CMO’s feel least prepared to deal with: Data explosion Social media Growth of channels and devices Shifting consumer demographics

IBM CMO Study – 1700 CMOs

Resources – Get Connected!

Visit www.ibmconnectedcustomer.com for access to many assets and resources, including eBooks, analyst reports and

IBM research that can help guide your marketing journey.

http://www.ibmconnectedcustomer.com/


Q&A SessionKey Digital Trends

for 2013

Sponsored by:

You will receive an email tomorrow with a link to

view the deck and webinar recording.

Noah Elkin

More than 120 eMarketer reports are published each year. The following are a few recent ones you may be interested in: Key Digital Trends for 2013

Video Advertising Benchmarks: Key Data, Trends and Metrics

Best Practices for Content Marketing: Engaging Consumers Across Multiple Digital Channels

Tablet Advertising: Volumes and Engagement Levels Jump Up

The Mobile-Social Mom: Speeding the Trend Toward 'Mobile First’

Social TV: Marketers Tune in to Deeper Integrations

Learn more about digital marketing with an eMarketer corporate subscription

To learn more: www.emarketer.com/products800-405-0844 or [email protected]

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eMarketer Webinar: Key Digital Trends for 2013