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Multiscreen Response Marketing

by Greg Marta

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Intro

• Smartphone and tablet proliferation

• Changing customer experiences

• The role of television

• Impact on the purchase process

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How did we get here?

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Key Dates

1975 1980 1985 1990 1995 2000 2005 2010 2015

Web ‘91

Amazon ‘94

eBay‘95

Google‘96

iPhone‘07

iPad‘10

Apple ‘76

Smartphone sales surpass feature phone

sales - 2011

12% of page views do not occur on a PC - 2012

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Growth

• 1.2 Billion smartphones and tablets next year globally

• 50% year over year increase (2012-2013)

• Tablet sales increase 3.5x in 2011

• Smartphones in the U.S. have gone from 0 to over 120,000 in 5 years in the U.S

• 55% of mobile phones are smartphones

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Access and OS

• The vast majority of tablet usage is via wifi

• Implications: tablets are mostly used at home, smartphones are frequently used at home

• Although Android has the most market share, iOS has grown as well

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Define “mobile”

• Laptops are the original ‘mobile’

• Are tablets really a ‘mobile’ device?

• Is the iPad mini still a tablet?

• Surface is laptopy

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Demographics

• 45% of adults own a smartphone

• 66% of 18-29 year olds own a smartphone

• 14% of adults own a tablet

• 25-34 has highest adoption rate of 24%

• 75%+ owners have HHI >$50k

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We’re Here Takeaways

• Multiscreen behavior wasn’t even possible 5 years ago

• Rapid growth means behavior and expectations will change

• Smartphones are more widely used by younger users while tablets tend to be older and wealthier, but don’t expect this trend to last

• Device fragmentation between laptops, tablets and smartphones will shift the marketer from a device focus to an experience focus

• Tracking online conversions will become more broken

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What are we doing?

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Always On

• Media consumption IS digital

• Multiple and mobile devices enable new behaviors

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Usage Patterns

• News is read via computers when we’re at work and tablets at home

• Device usage on weekends is similar although peaks favor tablets

• Smartphones show the most stable usage pattern

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Context

• At the office, on the go, at home

• Goal oriented v chill (lean back, lean forward)

• Downtime and killing time = found time

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Device Use Cases

• 60% of smartphone use is at home – smartphones lead the way in convenience

• Tablets are primarily used for entertainment and rarely leave the home

• Users are 3x more likely to watch video on a tablet than smartphone

• PCs use cases require more focus and time

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Sequential v Simultaneous

• Start a search on a mobile device while waiting in line and email yourself a link

• Watching TV and placing bets with your wife on where you’re seen that actor before

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Sequential

• Smartphones initiate an a purchase during downtime and pick it later

• PC to smartphone is surprising, are users leaving home? Some experiences may be better on mobile, like travel

• Tablet has the lowest % but there are far fewer tablets than smartphones

• Smartphone• Search (60%)• Social Networking (66%)• Shopping Online (65%)

• PC• Planning a Trip (38%)• Managing Finances (34%)• Watching a Video (34%)

• Tablet• Planning a Trip (15%)• Shopping Online (11%)• Watching a Video (11%)

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Simultaneous Devices• Smartphones are the most

common simultaneously used device

• TV device results may skew differently as tablet penetration increases

• When TV is the primary point of engagement, viewers are engaged in lean back AND lean forward experiences

• Younger males use multiple screens simultaneously more than the general population

• 31% of the of the general population use 3 devices simultaneously

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Simultaneous Uses • Email and social networking may be similar activities – connecting with others

• Email, surfing and social networking are the 3 most common simultaneous use cases

• 22% of simultaneous usage is complimentary

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Spontaneous Search

• Smartphones are the device of convenience – 80% searches are spontaneous

• Laptop usage is a more directed experience

• Although laptops have fewer spontaneous searches, goal orientation was identical between devices

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Media Consumption

• The top 5th of internet users consume the most TV and stream the most videos

• They average 7.1 hours per day

• The average for internet users is 5.1 hours of consumption

• The other 80% average 4.6 hours per day

• The top 5th consumes 55% more than the other 80% combined

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Usage Takeaways

• The device at hand gets used, experiences must be fluid on mobile devices

• Conversion tracking is more difficult in a multiscreen world

• The holistic customer experience needs to be taken into account when devising campaigns, not just immediate response

• When people find something interesting they leverage multiple devices to dig deeper

• We need better understanding of navigational, research and shopping searches across devices – this will dictate search marketing strategy

• Make sure ads are live when television commercials air

• Pay close attention to growth and changes among power users

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Is TV DEAD!?

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Nope

• TV still outpaces online and mobile combined, and it’s growing

• Jan 5th, 2011 2.5 TVs per home

• 31% of homes have 4 or more TVs

• Magazines and newspapers have shifted to tablets (Newsweek) and in part fuel the growth of online – don’t expect the same to happen with TV

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Segments

• The top 20% watch 7.3 hours of TV per day

• The top 20% account for 48% of TV viewership

• 60% of the general population watch 3+ hours per day of TV

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Behavior – Young Men

• Graphics can be made to be misleading

• Two thirds of young males find information about products and services from TV

• TV drives more awareness for young males than online

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Behavior – Toy Shoppers

• TV is rarely used in toy shopping…

• …Remember, graphics can be made to be misleading

• The buyer isn’t the target, the kid is!

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Responsiveness

• TV is responsive compared to other offline channels for toy shoppers

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Digital and TV

• TV viewers use tablets for deeper engagement – both with shows and ads

• Online video subscription services are increasing rapidly among TV viewers

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Integration

• NBC will use Zeebox so viewers can buy related products while they watch TV

• TiVo and PayPal have teamed up with click-to-buy TV ad formats

• Smart TVs connect directly to the internet

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TV Takeaways

• TV is a dominant advertising channel

• TV outpaces online for driving awareness

• TV is one of the most effective offline channels at driving response

• Complement TV media plans with online video and paid search to extend campaign reach and increase touch points

• Viewers look to the web to engage more deeply with what they’re watching – ensure smooth handoffs by optimizing landing page

• Watch trends for integrated marketing opportunities

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How has shopping changed?

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Mobile Experience

• The majority of shoppers use more than one device to continue

• Only 7% of toy shopping that starts on a mobile device finishes with a purchase

• Toy shopping that starts on a mobile device is just as likely to convert at a store as it is online

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Where

• 63% use mobile devices at home to shop for toys

• Laptops, portable as they may be, are predominantly used at home for shopping

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Holiday Shopping

• 80% of people will use multiple devices when shopping this holiday

• Smartphones and computers are the most popular combo

• Nearly 10% will use 3 devices

• Laptops close the sale – 65% of the time

• Tablets convert proportionately higher than smartphones (watch tablet growth trends)

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Switching

• #1 switch technique is emailing yourself

• Bookmarks and shopping carts seem very different (e.g. login) – not clear why they’re lumped together

• 32% do a navigational search (presumed, no longer at the category level)

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Search Timing

• Response can be slow

– 39% of toy purchasers check >5 sites

– 39% of toy purchases are more than 3 weeks from buying when they first search

– More than half are 2 weeks from purchase

• A small minority of searches convert on one site or the same day

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Search Behavior

• The average number of searches for non-buyers was 4.3 while toy purchases searched an average of 8.2 time

• As shoppers get closer to purchase they shift from ‘what’ to buy to ‘where’ to buy

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Shifting Channels

• Amazon is killing retailers

• Search engines may be used prominently less than in the past – this is bad for Google

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In Store Behavior• Taking product pictures, asking friends about the product and scanning barcodes

(presumably for more information or pricing) are the most common practices

• Females tend to take pictures and share with friends more than man

• Men research product info and pricing more than women

• 37% of U.S. consumers say they have engaged in “showrooming”

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In Store Attitudes

• Millennials are the most responsive age group to using mobile in stores

• Millennials have approximately twice the engagement of boomers

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Digital Engagement

• Digital engagement varies by product for CPG products

• Diapers have high digital engagement – once brand preference is established they become a commodity

• Skin care products have lower digital engagement – they may need to be experienced in person

• Generally, higher digital engagement leads to a higher likelihood of online purchasing

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Barriers and Enablers

Barriers Enablers

Urgency Inspection Stock-up Price

• I’m thirsty!

• I’m hungry!

• My plans just changed

• Is it fresh?

• Does this size fit me?

• Continuity

• Replenishment

• Easy comparison

• Less overhead

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Consumer Needs

• Convenience is relative and driven by urgency

• Price/value is determined by shipping charges and potential markup

• Choice is based on the need for variety and experience

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Shopping Takeaways

• Shoppers hop between devices as well as ecommerce and brick-and-mortar

• Hammer site visitors with retargeted ads, they’re thinking of buying somewhere else and you might not catch them on the next device

• Test landing pages constantly to drive conversion sooner, before people check out other sites

• In store mobile opportunities need to be aimed at young people and find inviting ways to engage older audiences

• Get clear on your product or service’s barriers and enablers to craft engaging multiscreen experiences that support customer goals

• Use email to engage your existing audience and use behavioral triggers (e.g. just purchased, has items in the cart, etc.) as much as possible

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Conclusion

1. Tablet and smartphone adoption has been prolific

2. Multiscreen behavior has fundamentally changed internet usage and customer experiences

3. TV usage is growing and advertising needs to integrate through multiscreen experiences

4. Become a master of your product’s digital touch points

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Appendix - SourcesThe New Multi-Screen World – Google

http://www.thinkwithgoogle.com/insights/featured/new-multi-screen-world-insight/

AdWeek & Google Infographic

http://www.thinkwithgoogle.com/insights/library/infographics/adweek-google-digital-holidays/

Young Males Digital Path to Purchase – Google

http://www.thinkwithgoogle.com/insights/library/studies/young-males-digital-path-to-purchase/

The Role of Digital in the Toy Shopperʼs Journey

http://www.thinkwithgoogle.com/insights/library/studies/role-of-digital-for-toy-shoppers/

Digital Shopping: What You Need to Consider – Nielsen

http://www.nielsen.com/us/en/insights/reports-downloads/2012/digital-shopping--what-you-need-to-consider.html

Fact Sheet: The U.S. Media Universe – Neilsen

http://blog.nielsen.com/nielsenwire/online_mobile/factsheet-the-u-s-media-universe/

Light TV Viewers in 2012: A Major Shift to Online from TV

http://www.thinkwithgoogle.com/insights/library/videos/light-tv-viewers-video/

http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm

http://www.gartner.com/it/page.jsp?id=1980115

http://www.datamation.com/news/gartner-smartphone-and-tablet-sales-will-top-1-billion-in-2013.html

http://www.mediapost.com/publications/article/186801/online-retail-spend-soars-15.html#ixzz2Bewv6GL9

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Contact

Greg Marta

gmarta@DMWDirect.com

http://www.linkedin.com/in/gregmarta