emerging digital marketing trends with a focus on video by rick ducey

Guiding Media. Inspiring Innovation. Leading Local.

Emerging Digital Marketing Trends With a Focus on Video, Mobile, Social

Rick DuceyManaging Director

BIA/Kelsey@rducey

March 8, 2016

2© 2016 BIA/Kelsey. All Rights Reserved. |


Use of digital marketing channels.Media mix and weight.ROI and best uses of digital media.

Key Topics


Where Do Consumer Get Ideas for Home Improvement Design?


Which Digital Ad Channels Are Most Influential For Renovators?


The Man Who Made The @ Symbol Cool Before Twitter Did



$146.6B$168.9B81.9%

BIA/Kelsey’s Local Ad Forecast Highlights


Newspapers Print9.8%

Newspapers Online2.6%

Direct Mail25.6%

TV O-T-A14.5%

TV Online0.7%

Radio O-T-A10.0%

Radio Online*0.8%

Print Yellow Pages1.7%

Internet YP1.6%

OOH5.6%

Cable5.1%

Magazine1.0%

Magazine Online0.3%

Online / Interactive11.3%

Email1.6%

Mobile7.7%

2016 U.S. Local Advertising Revenues — $146.6 Billion

Local Ad Market Keeps Noticeable Shares for Traditional MediaForecast for paid media ad spending targeting local audiences.

*Radio online revenues include online revenues from terrestrial and online streaming services.Source: BIA/Kelsey, October 2015


2015 2016 2017 2018 2019 2020$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$103.3 $104.0 $102.0 $102.9 $101.2 $102.8

$38.0 $42.6 $47.8 $53.5 $59.3 $66.0$141.3 $146.6 $149.7 $156.4 $160.4 $168.9

Traditional Online/Digital

US$

Billio

ns

Note: Numbers are rounded.

2015-2020CAGRs:

TotalCAGR 3.6%

Online/DigitalCAGR 11.7%

Traditional Me-dia

CAGR -0.1%

US$

Billio

ns

Note: Numbers are rounded.

Steady Shift Toward Digital Ad Spending in Media MixDigital rising to 40% of $168.9B in paid advertising by 2020.

Source: BIA/Kelsey, October 2015


*Other includes ad revenue from all other U.S. social networks (e.g., Pinterest, Tumblr and Foursquare).

Facebook81.9%

Twitter12%

LinkedIn3%

Other*

3%

2020Facebook

80%

Twitter13%

LinkedIn4%

Other*

4%

2015

Social Media Advertising by Company: 2015 & 2020Facebook Growing to 81.9% of All Social Ad Spend

Source: BIA/Kelsey, October 2015


Social Increasingly is a Mobile ExperienceLarge uptick in mobile engagement with social networks.

https://www.comscore.com/Insights/Blog/Millennials-Boast-Huge-Social-Networking-Growth-and-Engagement-on-Smartphones


Facebook is Killer Social App, But Others Have Their Place

Internet UsersMen: 16%Women: 44%


Sources: Facebook, BIA/Kelsey 2016.

Facebook is the killer app for social.77% of SMB video advertisers use Facebook.

13© 2016 BIA/Kelsey. All Rights Reserved. |http://www.mediapost.com/publications/article/267445/instagram-ad-impressions-surge.html

Instagram impressions delivered grew from 50M in April 2015 to 670M in Dec 2015.

Headed to 1B+ monthly impressions by end of 1Q2016.

Instagram advertisers to embrace more premium ad formats -- and video especially -- this year.

During the fourth quarter alone, video ads as a percent of total ads served by Brand Networks jumped up from 9.54% in September to 22.52% in December.

Instagram is Headed to 1 Billion Monthly Impressions13x Increase in Impressions April 2015 to December 2015, Video Ads Rising Quickly


Snapchat is in the Sweet Spot of Mobile, Social, VideoSnapchat skews toward women, younger and $50K+ demographics.

http://gizmodo.com/leaked-snapchat-code-hints-at-new-voice-and-video-chat-http://sproutsocial.com/insights/new-social-media-demographics/#snapchat1755009028?rev=1453756984798&utm_campaign=socialflow_gizmodo_twitter&utm_source=gizmodo_twitter&utm_medium=socialflow

http://gizmodo.com/leaked-snapchat-code-hints-at-new-voice-and-video-chat-


Source: eMarketer, January 16, 2016.

Launched blog in 2006. Listening Center launched in 2012. Southwest plus competitors

monitored. Informs marketing updates to

mobile app. Looking for customer

conversations, glitches, issues. Develop and act on insights.

Social Listening Develops Actionable Consumer InsightsInforms Real Time Content Strategy. “You Can’t Talk to Customers if You Don’t Listen.”



SMBs Using Digital Video as Part of Their Media Mix

Video channels rate high in use, ROI


Three Basic Approaches to Video ProductionBIA/Kelsey Recommends Long Term View of Video in Our Free Report

Source: BIA/Kelsey, “Video: The Conversion Media,” September 2015

1. Regular gritty self-produced video that, while it is a bit rough,

delivers a genuine sense of participation in the recorded event

2. Professionally produced video, whether created by a dedicated

in-house person or outsourced to a production company

3. Tentative steps into video with a few test programs delivered

to gauge interest among viewers

Download free at: http://www.biakelsey.com/Research-and-Analysis/Reports/Sponsored-Research/Video-The-Conversion-Media.asp


Source: BIA/Kelsey, Local Ad Forecast, October 2015

2015 2016 2017 2018 2019 2020$0

$5

$10

$15

$20

$25

$30

$35

$40

$20.2 $22.3 $21.8 $23.3 $23.1 $25.4

$6.8$7.5 $7.3

$7.9 $7.6$8.1

$0.7$0.9 $1.2

$1.4 $1.6$1.8

$1.4$1.5 $1.6

$1.7 $1.7$1.7

$0.4$0.7 $0.9

$1.1 $1.4$1.5

$29.6$32.9 $32.8

$35.3 $35.3$38.5

Local Television Local Cable Online Video OOH - Video Mobile Video

US$

Billio

nsLocal Video Advertising SpendingOnline and Mobile Video Each Growing by $1.1B from 2015-2020


Source: BIA/Kelsey, Local Ad Forecast, October 2015

Local Television67.6%

Local Cable22.9%

Online Video2.9%OOH - Video

4.6%Mobile Video

2.0%

2016 Local Video Ad Spending PieTV and Cable Have Largest Slices but Mobile and Online Video Growing Quickly


Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.

Faceb

ook

Website

Vide

o

Website Em

ail

YouTu

beTw

itter

Direct

Mail

Google (

Any Goog

le Site

)

Linked

In

Communit

y Spon

sorships

Faceb

ook Ad

Blog

Mobile

Website

Giveaw

ays

Pay Pe

r Click

Instag

ram

Newspa

pers

Magazi

nes

Other O

nline V

ideo

Online D

isplay

Pinter

est

Print

YP IYP

Direct

Home

Promote

d Tweet

s0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

76.6%72.7%

65.6%

58.7%

51.0%

40.9%40.8%40.2%40.0%34.1%32.3%31.1%30.6%30.3%29.2%27.9%26.5%26.2%25.6%25.3%23.9%23.5%22.6%21.3%21.3%

Q S11 Which of the following do you use to advertise or promote your business?Sample Size = 243

Media Used for Advertising or PromotionAmong SMB Video Users*: Website Video, YouTube and Other Online Video Are Top 3

Video Users

*About 25% of All SMBs Use Some Type of Video.



Competitors Spending

Amount Spent Previous, Adjusting Up or Down

Advertising Discounts and Bargains

Business Conditions

Our Expected Revenues

Money Left After Other Expenses Are Paid

Exposure and Customer Engagement Benchmarks

0% 10% 20% 30% 40% 50% 60% 70%

9.2%

10.1%

14.5%

15.6%

15.1%

21.8%

13.2%

3.3%

10.2%

12.4%

14.2%

22.3%

17.8%

18.5%

2.5%

6.3%

6.1%

10.1%

19.5%

20.9%

34.4%

Third Second First

Q104A What are the 3 biggest factors in determining spend?Sample Size = 243

Factors Determining Ad SpendOver Half of SMBs Cite Customer Exposure and Engagement Benchmarks as Drivers

Video Users

52.9%


Video Display Other Online Video YouTube Website Video0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

1.7%20.4% 22.9% 14.5%10.3%

7.4%13.4%

15.0%33.3%

18.3%20.3% 24.8%

15.6% 22.4%18.2% 22.7%16.7%

13.0%11.7% 12.2%

22.3% 18.6% 13.5% 10.8%

Not Sure Poor Equal to Spend Fair 2-4x SpendGood 5-9x Spend Excellent 10-19x Spend Extraordinary Over 20x Spend

ROI Assessment for Digital Video AdvertisingVideo Display gets highest ROI ratings by SMB video users, 22.3% say 20x or better.


Source: BIAK/Kelsey, Local Commerce Monitor, Video Users

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0% Sponsored Con-tent; 31.80%

Video Display; 22.30% Enhanced Mobile

Listing; 20.40% Instagram; 18.10%

FB News Ad; 17.80%

FB Ad; 13.80%Email; 12.00%

Sponsored Content Video Display Enhanced Mobile Listing InstagramFB News Ad FB Ad Email

Digital Ad Channels With Over 20x ROI Among SMB Video UsersSponsored Content Rules, Followed by Video, Mobile, Social . . . And Email

Video Users



None

Analysis Program

None, But Likely

Compare Per-formance Data

Vendor Data

Own Data

Google Adwords/Google

Analytics

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

7.7%

13.1%

14.7%

22.2%

29.9%

38.2%

41.8%

Q108 What type of analysis do you do to determine cost effectiveness of your marketing?Sample Size = 243

Video UsersAnalysis of Cost Effectiveness of AdvertisingGoogle Analytics, Own Data and Vendor Data Used Most



Power Brew: Video, Social, Mobile

Key Take Aways


Key Take Aways1. Shifting spend to digital, 40% or so on average. • Digital hotspot is: Mobile, Social, Video – the Power Brew• Make it work in mobile

2. Content marketing is rated highest for ROI• White papers• Blogs• Native ads

3. Develop campaign goals, metrics, data• Track not just in analytics, but social listening to inform content

strategies.• Optimize

Questions & Comments:Guiding Media. Inspiring Innovation. Leading Local.

Rick DuceyManaging Director

[email protected]@rducey

mailto:[email protected]