Key Digital Trends for 2014

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1 December 12, 2013 Key Digital Trends for 2014 Presented by: Noah Elkin Principal Analyst Sponsored by:

2 Agenda: emarketer sees four key trends affecting digital marketing in 2014 No. 1: Mobile moves to the center of the multiplatform landscape No. 2: New demands accelerate marketing to the point of instant interactions No. 3: Always-on commerce turns shopping inside out No. 4: Always on means always social Twitter Hashtag #emwebinar

3 Mobile Moves to the Center of the Multiplatform Landscape

4 In a digital landscape defined by an ever-expanding number of screens Smartphones Phablet Phablets Social Machines Social Machines Wearable Wearable Technology Technology Connected Consoles Connected Consoles Ambient Ambient Surfaces Surfaces Connected Cars Connected Cars

5 mobile devices have moved to the center Smartphones Wearable Wearable Technology Technology Connected Consoles Connected Consoles Connected Cars Connected Cars

6 There are quantitative and qualitative measures for this shift Momentum in daily time spent is all with mobile as desktop usage plateaus

7 Mobile advertising continues to accelerate as well Regions outside the US will see even higher growth rates, but from smaller bases

8 Mobile s advance can be measured using other proxies besides time and money Another indicator is smartphone sales to end users, which continue to rise at a brisk pace worldwide Twitter Hashtag #emwebinar

9 Shifting usage patterns around mobile aren t limited to the US In many emerging markets, mobile devices function as internet users first screen

10 Mobile advertising still lags other channels but marketers see mobile phones and tablets as increasingly important

11 Focusing on the gap between time and dollars spent with mobile can be limiting

12 Behavioral survey data is only starting to capture the role of mobile devices as the remote control for our home lives

13 Mobile devices have also moved to the center of people s work lives Bring-your-owndevice (BYOD) policies have become common, further eroding the already narrow divide between home and work

14 New Demands Accelerate Marketing

15 Automation: One key to greater marketer agility, especially on the advertising side US in the lead: It will account for 63% of all programmatic ad spending in 2013, declining to 52% in 2017 as the rest of the world catches up Twitter Hashtag #emwebinar

16 Marketers anticipate that increased velocity will yield a host of benefits Engagement is as important a driver as efficiency and effectiveness

17 Cross-device marketing is another key piece of the puzzle Spending is up more than 50% from levels

18 Smarter use of data will help marketers respond faster and better to business challenges Don t just focus on Big Data; think about shifting emphasis to Smart Data

19 One outcome: Integration between channels is increasing Marketing campaigns are becoming more interdependent across channels as well

20 The pressure to accelerate will continue across the marketing spectrum

21 Always-On Commerce Turns Shopping Inside Out

22 Even if consumers aren t consciously shopping, they are shopping nonetheless Smartphone use is more or less continuous. [It] doesn t say anything about whether the use has anything to do with shopping, but it does mean that [it has] a large part of the consumer s mind share during that shopping mission. The shopping trip starts earlier and ends later than it used to. Nick Hodson, partner at Booz & Co.

23 In other words shopping is about state of mind as much as intent and physical location

24 The impact of this pervasive shopping state of mind has only begun to be reflected in commerce sales forecasts Twitter Hashtag #emwebinar

25 The mobile shift is further along in more digitally advanced markets like the UK Mobile: 24% of retail ecommerce sales in % in 2017

26 Tablets may generate far higher on-device sales Tablets tend to be used at home when consumers are in lean-back mode

27 but smartphones play a privileged role in driving always-on commerce Smartphones serve as the fulcrum between digital and physical retail

28 The smartphoneled, always-on commerce dynamic is apparent everywhere, but particularly so in Asia-Pacific

29 For example: The highest percentage of internet users to say they primarily make purchases via mobile were in China and India

30 Being always in consideration mode means staying attuned to ads and offers

31 The next battleground will take place on the fulfillment front Retailers will vie to deliver physical goods purchased online as quickly and conveniently as consumers order them

32 Always On Means Always Social

33 Social networking is the glue that binds the experience of multiple device usage

34 Growth in social networking is most evident on the mobile devices that unite the device landscape Twitter Hashtag #emwebinar

35 The big shift: People no longer wait until the next day to have conversations around the water cooler

36 Simultaneous media consumption is most evident among young users for now Expect greater participation in the viewing of TV programs via social platforms accessed on mobile devices regardless of age group

37 Assume the percentage of consumers who just watch TV will continue to drop

38 2014: The year marketers master the art of engaging media multitaskers via social This will be reflected in social s growing share of digital ad spending

39 Marketers have a new imperative to insert themselves into the conversation We want to be wherever the consumers are. It s no longer digital marketing. It s marketing in a digital world now. Eric Gruen, digital brand manager for North America Fabric Care at Procter & Gamble

40 Takeaways 2014 will be the year marketers and sellers reckon fully with a world of always on consumers. With always-on consumers potentially always available to be engaged with, marketers will need to accelerate their messaging. Otherwise, they risk losing the moment to someone or something else. Social media will serve as the glue that links the experience of multiscreen usage. Advertisers tentative experiments with social will become more confident in the coming year. Twitter Hashtag #emwebinar

41 These trends create three new imperatives for marketers Understanding each customer as an individual. Creating a system of engagement that maximizes value creation at every touch. Designing your culture and brand so they are authentically one IBM Corporation

42 These imperatives require blending the science with the art of marketing Science Marketing the study of the physical and natural world, especially by using systematic observation and experiment the business activity of presenting products or services in such a way as to make them desirable A necessary combination in today s rapidly evolving global marketplace Source Encarta World Dictionary 2013 IBM Corporation

43 IBM continues to build out an industry leading portfolio of technologies to enable marketers IBM Corporation

44 IBM provides role based solutions that are modular, integrated, and have multiple entry points Digital marketers E-commerce professionals Customer relationship marketers Merchandisers and sales planners Digital Marketing Real-Time Personalization Omni-Channel Engagement Omni-Channel Marketing Real-Time Personalization Pricing Promotion, Product Optimization Understand Engage Manage Customer Analytics 2013 IBM Corporation

45 IBM is committed to help Marketing organizations transform and build new capabilities Address CMO s needs systematically and for the long term Educate and influence CIOs and CEOs to help improve marketing Smarter Marketing Explain and escalate CMO s IT agenda and needs Setting marketing standards through robust technology Providing best practices, market insight, and benchmarks IBM Corporation

46 Q&A Session Key Digital Trends for 2014 Learn more about digital marketing with an emarketer corporate subscription Around 200 emarketer reports are published each year. Here are some recent ones you may be interested in: Key Digital Trends for 2014 UK Mobile and Tablet Users: Q Forecast and Comparative Estimates Noah Elkin You will receive an tomorrow with a link to view the deck and webinar recording. Sponsored by: Programmatic Advertising: Forecast and Future Growth Trends Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop Social Media Advertising: Seven Trends for 2014 Mobile Advertising in Retail: Tracking the Changing Purchase Path To learn more: or

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