Digital Marketing: Trends, Innovations & Best Practice

Hamutal Schieber | August, 2015

Introduction• The extremely high level of digital adoption by consumers, led to marketers upping their level

of digital marketing – so that messages will be delivered to consumers wherever they are.

• In this presentation, we aim to separate digital marketing buzzwords from actual trends, according to reports and case studies.

For further info regarding mobile marketing, Internet of Things, Content / Inbound Marketing and more – please refer to the Carmelon slideshare channel.

The Digital Marketing Trend Map

Purchase / Monetization

Budgets & ROI

Micro TrendsReal-Time Instant Personalization Location-Based &

Contextual

TacticsVideo Instant

Messaging Email Search CRM Content

Macro Trends & EnablersMobile & Cross Channel IoT & Wearables Virtual Reality Big Data

Macro Trends & Enablers | Cross-Channel

• The 2015 Digital Marketer report by Experian, outlines a Marketing Sophistication Curve of 4 primary phases:

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

In 2015 – 2016, channels are predicted to include new Internet of Things-led channels, including Beacons and wearables, to give the customers a better omnichannel / “phygital” experience.

Macro Trends & Enablers | Cross-Channel• Stats presented in a very

informative report by We Are Social, demonstrate that while mobile technology enjoys tremendous adoption rates, smartphones still have room for growth.

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

Macro Trends & Enablers | Cross-Channel

• When Cadbury switched some of its ad spend from TV to Facebook for its Cream Egg brand, the brand experienced 7% increase on sales overall. While budget for social was around one-third the size of that spent on TV, 18% of purchase intent was driven by Facebook and 20% was from TV advertising.

• Kantar ROI research showed that consumers exposed to both TV and Facebook were 66% more likely to purchase. As a result of the campaign, sales of Crème Eggs increased by 7%.

Source: Digital Training Academy

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

Macro Trends & Enablers | Cross-Channel

• Case in Point: Land Rover• Insight: today’s auto shoppers start their car search

online but switch devices across the purchasing funnel. Land Rover wanted to reach the auto shopper across the purchase journey and convert impressions into sales

• Action: Land Rover used cross-channel marketing – Youtube, Google Display, Search, mobile and social

• Result: more than 100M impressions, and 15% of its total sales now come from online leads.

• According to the company, “digital marketing has been a corner stone to our growth as a brand”, contributing to the brand’s annual double-digit growth over the past few years.

Source :, 2014Google September

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

Macro Trends & Enablers | IoT

• According to a recent Economist Intelligence Unit report, marketers are expecting IoT to have the biggest impact on marketing by 2020 (followed by a cluster of technology trends that are all related to IoT, such as real-time mobile personalized transactions, customer experience and big data).

• An Adobe study found that over two-thirds of consumers say they will buy connected technology for their homes by 2019, and half plan to purchase wearable technology. The “internet of Things” is benefiting companies in many areas, including customer service, revenue, efficiency and data. Connected “things” present new streams of data that can help execute personal’ real-time messages.

IoT & Wearables Virtual Reality Big Data Social MediaMobile & Cross

Channel

Macro Trends & Enablers | IoTMobile & Cross

ChannelIoT &

Wearables Virtual Reality Big Data

• Connecting consumers to digital marketing while on premise / in store is becoming easier as technology advances.

• Location based marketing will come back in a whole new way thanks to Beacons and wearable technology.

• Marketers and retailers can now send personalized and location-based to boost their mobile marketing ROI.

Facebook Place Tips

Macro Trends & Enablers | IoTMobile & Cross

Channel IoT & Wearables Virtual Reality Social Media

Amazon Dash – refill everyday products from Amazon by pressing a button.

For an in-depth review of the “Internet of Things”, please refer to the Carmelon Slideshare page.

Macro Trends & Enablers | VR

• Virtual reality is an emerging trend in digital marketing, with technologies such as Oculus Rift and Google Cardboard bringing new ways to engage with consumers.

• A few automotive companies have already utilized VR technology, in order to enable consumers to experience their cars’ technology and how it feels to drive the car.

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

Volvo launched a campaign using Google Cardboard Ford, Chrysler launched campaigns using Oculus Rift

Macro Trends & Enablers | Big Data

• Allegedly, personalization and targeted marketing can be carried out efficiently thanks to the “big data” revolution: the ability to analyze the massive amount of data (structured or unstructured), in order to gather insights about the customer.

• But the problem with “big data” is, that in addition to collecting the data, marketers ought to know what questions is it meant to answer, and how to analyze the data accordingly.

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

Macro Trends & Enablers | Big DataMobile & Cross

ChannelIoT &

Wearables Virtual Reality Big Data

• MasterCard knows the date, time, spend amount, merchant and location of each of over 160 million transactions worldwide every hour. According to the company, Big Data strategy includes:

• For example: the company predicted a housing recovery in the US several months before the government, due to rise in home improvement sales which often indicates an intent to sell the house. The company was therefore able to help home furnishing customers with their client marketing strategies.

Identifying the business question / problem that needs addressing

Identifying which data is likely to be helpful

Processing and analyzing the data

Macro Trends & Enablers | Big Data

• The Experian 2015 Digital Marketing report outlines the types of data that may be collected for analysis

Mobile & Cross Channel

IoT & Wearables Virtual Reality Big Data

Tactics | Content

• Content continues to constitute one of the most important aspects of digital marketing, with growing activation and monitezation methods

Kraft Foods (North America): The food giant has utilized a tremendously successful content strategy long before its competitors, with investments in online and mobile platforms, tools and communities.The company invests heavily in video content, based on a strategic content architecture: tailored content per each of the company’s brands, along with the umbrella of the corporate brand.

Clicking on the recipe provides a list of ingredients, linked to deals and retailers.

* We have recently covered the subject of inbound marketing and the importance of content, and you can find it on the Carmelon Slideshare page

Tactics | Content• A Smart Insights poll (291 respondents)

shows that content marketing is perceived as the most important trend to marketers in 2015. Big Data, marketing automation, and mobile marketing all follow.

Tactics | Video• Online video continues to capture the

attention of various audiences, with mobile video up 50% between 2013 and 2014.

• According to Nielsen’s 2014 Cross Platform Report, over half the US population watched online videos in fourth quarter 2013. eMarketer reports that online video’s ad revenue is expected to be the fastest growing segment of the Internet in 2014.  eMarketer forecasts ad volume for mobile video to grow by 79% this year and to surpass $1 billion next year. (source: Forbes)

• And, according to data from the latest Consumer Entertainment Index from Arris, over half of the global population is watching video content on their smartphones and tablets.

eMarketer Webinar: Key Digital Trends—15 Things to Know for 2015

Micro Trends | Real-Time

Real-Time Instant Personalization

• Real-Time marketing is not about “Tweeting the moment”, nor is it about pre-planned events and posts such as “Sandwich Day”.

• Real-Time marketing requires data, strategy, capabilities and staff, that allow brands to respond to events and trending subjects as-they-happen. This is the kind of strategy that made Oreo’s “dunk in the dark” (as detailed below) possible in the first place.

Oreo’s tweet during the Superbowl power brake in 2013, tweeted “You can still dunk in the dark”, received unprecedented amount of consumer attention. But this type of RTM was made possible in the first place due to the brand’s newsroom strategy by which it had recognized the daily story over a year, posting relevant cookie-based tributes accordingly.

Location Based & Contextual

Micro Trends | Real-Time

Real-Time Instant Personalization

• Recently, a few important sources had added trend mining tools that are enabling more marketers to recognize conversations as they happen, in addition to “Trending” on Twitter, including Google Trends real-time and Trending on Instagram.

Location Based & Contextual

Micro Trends | Real-Time

Real-Time Instant Personalization

• Bank of America found great engagement with RTM. For example, during the World Economic Forum in Davos, Switzerland, the bank’s digital team monitored what was trending on Twitter in order to promote the bank's brand among people interested in economic issues by publishing real-time content related to the conference. During a session on women, for example, the bank's team tweeted a link to a Merrill Lynch paper about the growing economic influence of women.

• According to the bank, 97% of people who clicked on BofA's content on social media during the economic conference were engaging with the bank for the first time (source: WSJ 2014)

Location Based & Contextual

Micro Trends | Instant Messaging

Real-Time Instant Personalization

• According to a recent research from Juniper, over 160 trillion instant messages will be sent by 2019, up from 43 trillion in 2015, on platforms such as WhatsApp, Facebook Messenger and Snapchat. Those platforms will overtake email to become the most popular digital communication channel in 2015, with 94.2 trillion messages sent, including text messages, instant messages, social media posts and emails.

• SMS remains a key way for businesses to reach customers and get good engagement as SMS messages are usually read within 3 minutes or less.69%

31%

Total Messages in 2015 (trillion)Source: Juniper ResearchInstant Messages Other Platforms

Location Based & Contextual

Micro Trends | Instant Messaging

Real-Time Instant Personalization Location Based & Contextual

• While each app has its own patterns and related user group, instant messaging is becoming a major communication force. Therefore, consumers expect to interact with brands through those apps – for instant service and offers.

Source: Business2Community

Micro Trends | Personalization

Real-Time Instant Personalization Location Based & Contextual

On average, brands are reporting a 19% increase in conversion rates from personalizing their online customer experience per Econsultancy. Ultra-personalized solutions may include: personal assistance / concierge apps, personalized healthcare and even genomics, personal shopping with price customization, customized service, insurance premium based on the user’s behaviour, skincare products and much more.

• Amazon.com is still one of the best examples for personalization, building a world of recommendations based on the user’s past searches, wish list and previous purchases, among other parameters.

Micro Trends | Personalization

Real-Time Instant Personalization

• Beauty retailer Sephora has personalized its customers’ experience with a set of digital tools, using data

Through its ColorIQ feature, which defines skin pantone, the company can match existing products to individual skin shades.

Location Based & Contextual

Micro Trends | Personalization

Real-Time Instant Personalization Location Based & Contextual

• The Experian 2015 Digital Marketing report demonstrated the different messages a marketer should send to 2 different types of clients, whose price aversion, free time and personal perceptions are not similar.

• With the advances in digital tools such as wearable technology, personalization and customization are expected to be carried-out on the specific consumer level.

Micro Trends | Location-Based

Real-Time Instant Personalization Location-Based & Contextual

Contextual Marketing is the customizing of digital advertising to specific target groups or situations, using factors such as time, place, preferences and behavior. This is actually the new “targeting”.

• Social GPS app Waze knows where the consumers are headed, and offers marketers to target consumers whenever they are near the business.

Digital Marketing Return on Investment• A Mondo study, "The Future of Digital Marketing," based on an online survey of 262 digital

marketing executives in 2015, found that 80% of companies will increase digital marketing budgets in the course of 12 to 18 months, with 72% of those planning an increase between 5% - 15%.

• Inability to measure certain digital marketing channels might be a barrier to growth, but an Econsultancy / Oracle Marketing Cloud Marketing Budgets 2015 report found that a restricted budget for all types of marketing prevents more investments in digital, while a lack of staff to make the most of digital investments was the second-most cited barrier. Yet, budgets are increasing every year.

Digital Marketing Return on Investment• the Econsultancy / Oracle

survey found that paid search is the leading channel that marketers are able to measure the ROI from, followed by email marketing.

The Future of Digital Marketing

• Mobile still has plenty of room for penetration, and we believe that the new “small screen” will continue to grow

• Wearables and IoT will enter mainstream: According to Cisco’s Visual Networking Index report, there will be more than half a billion wearable devices in use every day by the 2019. We expect to see ultra-personal, on-time marketing as a result

• Social media will continue to serve both as a way to push / pull marketing messages, and as a way to deliver proactive CRM, but consumers will turn to instant messaging platforms.

In conclusion, instant + ultra personal will continue grow as a result of big data, wearables, and mobile technology penetration.

ResourcesPublisher Title

Accenture CEO Briefing 2015Adage Companies Increase Digital BudgetsAdobe How the Internet of Things is disrupting marketingAdobe Targeting the Hyper connected traveler Adobe Personalization SuccessANA Magazine The Real DealBusiness 2 Community Beacons and And Chat ClickZ Instant Messaging Overtake As Digital communication platformCMO 2015 PredictionsDigital Strategy Consulting DigitalMarketing RoiDigital Trends Half A Billion Wearables PredictionEconsultancy Social CRMEconsultancy Three Digital Marketing Mega Trends Trends-ForEconsultancy / Oracle Marketing Budgets 2015 eMarketer Digital Trends 15 Things to Know 2015Experian The 2015 Digital Marketer Forbes The year of cross platform measurementForbes Sephora's Winning FormulaGoogle Cross Channel MarketingJuniper Research Sending Out SmsMarketing Charts Which Digital Channels are Marketers best able to measure for ROIMarketingLand Cross Channel MarketingMediaPost More Than Half Of Consumers Watch Mobile VideoMckinsey Leveraging Big Data to Optimize Digital MarketingMondo The Future of Digital Marketing GuideOutbrain The 5 Best New Digital Marketing Tools and TechniquesSmart Insights Digital Marketing Trends 2015Trend One Contextual MarketingWe Are Social Digital, Social & Mobile in 2015

WSJ Advertisers Use Social Media to Promote Brands in Real Time

Thank You!

The research was conducted by: Hamutal SchieberSchieber Research | Market Research & Competitive Intelligence www.researchci.com | hamutal@researchci.com Executive Summary. For the full research - please contact Carmelon Digital Marketinghttp://www.carmelon-digital.com