Northeast Vs Nordics Marketing Forecast

Transcription

1 State of Marketing Insights from digital marketers and consumers in the Nordics

2 State of Marketing In April 2014, we surveyed 432 marketers from the Nordic region to learn their top marketing objectives and priorities for the year. At the same time, we surveyed 4,114 consumers to learn about their online behaviors. We ve analyzed their insights to give you a current snapshot of the state of marketing in the Nordics. From lifecycle campaigns to return on investment (ROI), you ll find timely recommendations to help you plan your marketing efforts. Table of Contents Executive Summary... 3 New Priorities for Budgets on the Rise... 8 A Shift in Lifecycle Marketing is Alive and Well The Consumer Responsive Design is the New Black Consumer Digital Morning Consumer Digital Evening Breaking Social Ground The Facebook Consumer The Twitter Consumer The Future of Mobile Mobile Meets the Family Survey Methodology and Demographics Recommendations State of Marketing: Nordics

3 Executive Summary The 2014 State of Marketing survey asked marketers about their budgets, priorities, channels, metrics, and strategies for the year. At the same time, we also asked consumers in the Nordic region about their online behaviors. Below is a snapshot of our key findings Priorities 57 % Increasing and Collecting, measuring, Improving measurement improving brand % and results of digital 52 and using behavior- 37 % awareness based data channels 99% of marketers plan to increase or maintain their spend in Top 5 areas for increased spending: social media Content 63 % Data & 71 % SEM/ marketing 65 % social SEO Management 62 % Analytics 60 % listening Take a look at the percentage of Nordic consumers in each country who identify as SUBSCRIBERS, FANS, or FOLLOWERS. 8 SUBSCRIBERS: Nordic online consumers who have provided their address to at least one company for the purpose of receiving permission-based s. 84% 58% 15% 78% 66% % 17% 88% % FANS: Nordic online consumers with an active Facebook account who have liked at least one company or brand on Facebook. Sweden Norway Denmark Finland 16% FOLLOWERS: Nordic online consumers with an active Twitter account who follow at least one company or brand on Twitter State of Marketing: Nordics 3

4 New Priorities for 2014 According to a recent report from TeliaSonera and Arthur D. Little, the Nordic region is a hotspot for machine-to-machine (M2M) growth, also known as the Internet of Things. In fact, the number of connected things has surpassed the region s total population and is expected to grow at a rate double that of the global M2M market. 1 The Nordic region also has one of the highest broadband internet penetration rates in the world, with approximately 9 of the population online. Norway and Sweden rank highest in internet user penetration in the region with 95% of their respective populations online, followed by Finland (9) and Denmark (89%). 2 Because this is a rapidly evolving region for innovation, Nordic marketers face endless marketing strategy options, often making it difficult to determine what s most important. We asked these marketers to identify their top three marketing priorities for 2014 and found that the most common priorities were: Increasing and improving brand awareness Collecting, measuring, and using behavior-based data Improving measurement and results of digital channels As shown in the following chart, 2014 Top Three Marketing Priorities, increasing and improving brand awareness and collecting, measuring, and using behavior-based data are two clear priorities for the current year. Marketers focus on brand awareness aligns with traditional marketing department and CMO priorities. With this in mind, we expect to see marketers using social media, mobile, and personalized web experiences to better boost their brand with customers. Collecting, measuring, and using behavior-based data will support all other marketing objectives. More data enables marketers to build better 1:1 customer experiences and cut through the communication clutter, so it s now more important than ever to have a plan and process around collecting that data. The third most popular priority for marketers improving measurement and results of digital channels shows that marketers are more focused than ever on getting the most value from their marketing efforts. Formulating a strong digital strategy now will allow marketers to focus on their two biggest lifecycle challenges in the year ahead: increasing subscriber engagement and revenue and acquiring new customers (see Lifecycle Marketing Challenges ). 1 teliasonera.com/en/newsroom/press-releases/2014/2/the-nordics-at-the-forefront-of-the-m2m-revolution 2 emarketer.com/article/mature-nordic-internet-economies-mobile-drives-growth/ State of Marketing: Nordics

5 2014 Top Three Marketing Priorities 100% 75% 50% 25% 57% Increasing and improving brand awareness 52% Collecting, measuring, and using behavior-based data 37% Improving measurement and results of digital channels 30% Subscriber acquisition 29% Data acquisition (improving/expanding data collection efforts) 26% Testing and optimization 26% Channel expansion (adding new digital marketing channels) 24% Organizational alignment (increasing collaboration between business units) 16% Campaign attribution (identifying campaigns role in sales) 4% Other State of Marketing: Nordics 5

6 New devices and channels emerge every day to create a more connected and complex brand-to-customer landscape. The Nordic countries are extremely digitally driven with 9 having internet access and 80% owning a smartphone. Leading the way in M2M growth, the Nordic countries are an area where mobile marketers can test new products and technologies with early adopters (15% of all mobile connections in the Nordics are M2M compared to the global average of ). 3 Keep in mind that Nordic consumers are early adopters, describing themselves as information seekers with the majority stating they re news junkies and information consumers online. However, marketers need to market to consumers in the Nordics based on the country they live in rather than taking a regionalized approach. As you ll see in this report, there are vast perceived and behavioral differences noted from one country to the next within the Nordic region. Here s how marketers in the Nordic region say that they re dividing areas of focus and measuring success. Digital Marketing Organization Areas of Focus We use today Plan to use in 2014 Do not plan to use Marketing SMS Messaging Social Listening Content Management Mobile Push Notifications SEM/ SEO Data & Analytics Social Media Marketing Display/ Banner Ads Marketing Automation 7 32% 46% 55% % 75% 57% 18% 1 8% 15% 19% 14% 16% 1 14% 8% 65% 15% 60% 40% 26% % 1 35% 17% teliasonera.com/en/newsroom/press-releases/2014/2/the-nordics-at-the-forefront-of-the-m2m-revolution/ State of Marketing: Nordics

7 Top Three Success Metrics 100% 75% 50% 25% 65% Engagement rate (opens, clicks) 56% Conversion rate (sales directly attributed to digital marketing campaigns) 55% Return on investment 47% Audience list growth 44% Social activity (likes, shares, retweets) 18% Lifetime customer value 15% Other 302 Clearly, marketers in the Nordics have many areas of focus in For recommendations on where to begin, visit the section 2014 Recommendations later in this report State of Marketing: Nordics 7

8 Budgets on the Rise According to Gartner analyst Laura McLellan, the CMO will spend more on IT than the CIO by So, it s no surprise that our survey found 99% of marketers plan to increase or maintain their budgets for 2014, while only plan to decrease. Marketers plan to increase spending in five key areas: 1 Social media marketing, posting content to social media channels (7 plan to increase) SEM/SEO (65% plan to increase) Content management (6 plan to increase) Data and analytics (62% plan to increase) Social listening (60% plan to increase) It makes sense that social media marketing tops the list, given that marketers noted increasing brand awareness as their top priority and developing strong relationships with new subscribers as their primary lifecycle challenge for 2014 (see the section New Priorities for 2014 and A Shift in Lifecycle Marketing ). Likewise, data and analytics budgets will rise, aligning with marketers priorities of collecting, measuring, and using behavior-based data and improving measurement and results of digital efforts. Social listening and content management will also play key roles as marketers act on the data they ve collected to power 1:1 customer experiences and enhance brand relationships. The next chart shows a more complete picture of how marketers plan to spend their budget in my.gartner.com/portal/server.pt?open=512&objid=202&mode=2&pageid=5553&resid= &ref=webinar-calendar State of Marketing: Nordics

9 2014 Digital Marketing Budget Increase Stay about the same Decrease Don t know Marketing SMS Messaging Social Listening SEM/ SEO Social Media Marketing Display/ Banner Ads 56% 44% 60% 65% 7 42% 38% 47% 34% 27% 26% 45% 8% 4% 7% 5% 6% 2% 5% Content Management Mobile Push Notifications Data & Analytics Marketing Automation % 49% 30% 27% 32% 36% 2% 2% 6% 19% 6% 12% State of Marketing: Nordics 9

10 A Shift in Lifecycle Marketing Marketers told us that lifecycle marketing is still a key piece of their overall strategy. We define lifecycle marketing as the tactics that reach customers across four core stages: Acquire Onboard Engage Retain Acquiring new audience members and converting potential customers into subscribers (whether to , social, or mobile communications). Onboarding subscribers and making them accustomed to the cadence and content of your interactions. Engaging subscribers with automated, personalized campaigns. Retaining existing subscribers with targeted reengagement and win-back strategies. While marketers still report focusing on lifecycle marketing, we ve uncovered a notable shift. IBM s The State of Marketing 2013 found that marketers greatest lifecycle challenge was acquiring new subscribers; however, this is no longer the case in the Nordics. In fact, our research found that developing a strong relationship with new subscribers (46%) and driving engagement and revenue (40%) have edged to the forefront of their lifecycle concerns. Marketers shifting their focus to customer relationships is a solid strategy. Our research shows Nordic consumers are driven by connections they create with companies by subscribing to s or following on Facebook and Twitter more than any other geographic audience we ve studied globally. 46% of marketers say that building a strong relationship with new subscribers is their primary lifecycle challenge. Engage customers with a welcome series as soon as they opt into messages from your brand, and they ll be more likely to become brand advocates as time goes on. The top three lifecycle marketing campaigns that marketers currently use are newsletter (69%), post-purchase (5), and promotional (47%). A significant gap exists between the importance marketers place on lifecycle marketing campaigns and the number of campaigns they actually implement, as shown by the gap between the top three campaigns and the many other underutilized campaigns. For example, only 29% of marketers use loyalty campaigns; however, these campaigns have the highest reported success rates (42% rate loyalty campaigns as excellent or very good) compared to other lifecycle marketing efforts. Along with testing other lifecycle strategies, a loyalty campaign can help differentiate your brand, increase engagement, and drive results all with minimal effort State of Marketing: Nordics

11 Lifecycle Marketing Challenges 100% 75% 50% 25% 46% Developing a strong relationship with new subscribers 40% Increasing subscriber engagement and revenue 38% Acquiring new subscribers 34% Getting the attention of subscribers that are no longer engaging with your messages 1 Don t know State of Marketing: Nordics 11

12 Lifecycle Marketing Campaigns We use today Plan to use in 2014 Do not plan to use Web Opt-in Social Opt-in Mobile Opt-in Welcome Series Promotional Event- Driven Newsletter 25% 18% 1 34% 47% 34% 69% 18% 18% 18% 18% 20% 22% 18% 58% 6 72% 48% 3 44% Post- Purchase Loyalty Abandoned Cart Campaign Landing Pages Transactional Win-Back 5 29% 1 44% 12% 2 22% 18% 15% 19% 12% 17% 27% 5 74% 37% 75% 60% State of Marketing: Nordics

13 is Alive and Well Eighty-three percent of online Nordic consumers surveyed identify themselves as subscribers, and 84% use on a daily basis. Not surprisingly, 57% of marketers in the Nordics say that marketing is core to their business because: is a critical enabler of products/services your business provides (6) indirectly impacts your business performance (28%) Your business primary revenue source is directly linked to operations (9%) Although 6 of marketers report that is a critical enabler of products/services their business provides, only 39% have a dedicated marketing team (compared to 59% worldwide 5 ). Just 29% send more than 500,000 s annually a stark contrast to the 49% of marketers worldwide who send more than 500,000 s annually. 5 In the increasingly prevalent demographic of smartphone owners, 65% of Nordic consumers report checking via the device at least once per day (68% in Sweden, 62% in Norway, 68% in Denmark, and 58% in Finland). Compare these numbers with the 37% of marketers who say they re unsure if subscribers read s on a mobile device and you see a large gap to address (refer to the Responsive Design is the New Black section). Annual Send Volume Team Size 47% Less than 100,000 24% 100, ,000 7% 500,000-1 million 9% 1 million-5 million 5% 5 million-10 million 4% 10 million-25 million 2% 25 million-50 million 50 million-100 million More than 100 million 30% 1 person 52% 2-3 people 9% 4-5 people 9% More than 5 people State of Marketing, ExactTarget Marketing Cloud, January State of Marketing: Nordics 13

14 The Consumer is the clear first-place winner when it comes to a particular channel s total number of users. So, what do subscribers in the Nordic region want to receive in their inboxes? 8 Subscribers Subscribers are online consumers who have provided their address to at least one company for the purpose of receiving permission-based s. 8 of the online Nordic consumers polled (aged 18 and older) are subscribers. When asked how they use , 84% of Nordic consumers said they check their at least once a day (80% in Sweden, 85% in Norway, 87% in Denmark, and 85% in Finland). The inbox is also the first place that 47% of Nordic consumers go to start their digital day with nearly 35% accessing via their smartphone. Our data shows that 56% of Nordic marketers will increase their spend over the next year a spend that seems justified when you consider that 76% of marketers believe marketing does or will produce ROI. Supporting that belief, 56% of Nordic consumers state they have made a purchase as a result of a marketing message received via (58% in Sweden, 58% in Norway, 49% in Denmark, and 57% in Finland). To be successful, digital marketers must approach with the same mindset as Nordic consumers. For example, 48% of consumers in the Nordics view as a means for communicating with personal contacts (30% in Sweden, 48% in Norway, 6 in Denmark, and 66% in Finland) while 47% view it as a work tool (26% in Sweden, 70% in Norway, 55% in Denmark, and 56% in Finland). So, what do Nordic consumers hope to receive when they subscribe to a brand s program? What brand messages are they most likely to open and read? When we look at the top motivations to subscribe across the Nordics, the differences are vast: In most countries we have surveyed worldwide, the attribute to receive free stuff or giveaways in exchange for my address is a top motivator; however, this is not the case for any of the Nordic countries. Swedes top three motivations to subscribe are all information-focused. They are twice as likely as other Nordic consumers to rate receive alerts related to development within the company, association, or organization as a primary motivator. Although Nordic consumers are not motivated by receiving free stuff or giveaways in exchange for their address, Norwegian, Danish, and Finnish consumers rate to receive discounts and money-off promotions as their number one reason for subscribing to . Swedes, however, rank this motivation sixth. Let s take a closer look at how consumer motivations to subscribe to vary from country to country within the Nordic region State of Marketing: Nordics

15 Consumer Motivations to Subscribe To keep up-to-date with a company s products, services, or offerings 39% Sweden 84% Subscribers I shop with this company or buy this brand on a regular basis To receive alerts related to developments within the company, association, or organization 3 N = 1,057 consumers who subscribe to at least one brand 34% To receive discounts and money-off promotions 47% To keep up-to-date with a company s products, services, or offerings 44% I shop with this company or buy this brand on a regular basis 38% Norway 78% Subscribers N = 1,050 consumers who subscribe to at least one brand To receive discounts and money-off promotions To keep up-to-date with a company s products, services, or offerings I shop with this company or buy this brand on a regular basis 37% 39% 40% Denmark 8 Subscribers N = 1,007 consumers who subscribe to at least one brand To receive discounts and money-off promotions 48% Finland 88% Subscribers To keep up-to-date with a company s products, services, or offerings I shop with this company or buy this brand 29% on a regular basis N = 1,000 consumers who subscribe to at least one brand State of Marketing: Nordics 15

16 We asked marketers from the Nordics which marketing communication tactics were most effective, and here s what they had to say: Lifecycle Marketing Campaigns Success Excellent / Very good Good Fair / Poor Web Opt-in Social Opt-in Mobile Opt-in Welcome Series Promotional Event-Driven Newsletter 25% 26% 2 38% 42% 40% 37% 5 39% 38% 4 40% 40% 42% 24% 35% 4 19% 17% 20% Post- Purchase Loyalty Abandoned Cart Campaign Landing Pages Transactional Win-Back 3 42% 22% 42% 26% 37% 45% 3 34% 42% 34% 22% 2 24% 4 16% 40% State of Marketing: Nordics

17 Responsive Design is the New Black By 2017 there will be nearly 1.4 mobile devices per capita. 6 Despite growing mobile adoption, when asked how often they use mobile responsive design in s, 26% of marketers in the Nordics said rarely or never. This could be due to the fact that 37% are unsure if their subscribers read their s on a mobile device. However, 65% of Nordic consumers say they use their smartphone to access at least once per day. With an ever-expanding array of internet-enabled devices on the market and the Internet of Things becoming fully integrated into our daily lives, consumers now have the option of checking and social networking messages on not only computers, but also tablets, smartphones, and even televisions. The number of connected devices has already surpassed the region s total population and the market is expected to grow roughly twice as fast as the global M2M market. 7 Therefore, it s imperative for marketers to understand how Nordic consumers are using digital devices to connect to brands. We expect mobile opens to increase alongside mobile device saturation, so now is the time to commit to mobile-friendliness. Marketers Tracking s Read on Mobile Devices Mobile Responsive Design for Landing Pages 20% Less than 30 percent 24% percent percent percent percent 2% More than 90 percent 37% Don t know % Always 15% Often 1 Sometimes 12% Rarely 16% Never 19% Don t know Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, , February 2013, Cisco 7 teliasonera.com/en/newsroom/press-releases/2014/2/the-nordics-at-the-forefront-of-the-m2m-revolution/ 2014 State of Marketing: Nordics 17

18 Consumer Digital Morning What is the first thing you check online in a typical day? As the sun rises across the Nordic region, where and how do consumers start their online day? We find this topic fascinating, as it reveals not only the priorities and motivations of consumers in each country whether focused on business, social, or news but also provides an indication of how and when marketers can communicate with them. is the most popular place to start the digital day; however, when compared to most other countries worldwide, the Nordics rank as a considerably lower priority (49% in the Nordic region vs. 70% on average worldwide). Nordic consumers crave news with their morning coffee. News sites edge out Facebook as the morning runner-up in Sweden, Norway, and Finland; however, consumers in Denmark rank Facebook second (24%) followed by new sites (1). First Digital Stop of the Day Nordics Total Sweden Norway Denmark Finland 47% 48% 38% 52% 5 Facebook 18% 17% 20% 24% 15% Twitter 0% 0% LinkedIn 0% 0% 0% 0% Instagram 2% 2% News site 19% 18% 32% 1 16% My company s website 4% 4% 4% Search engine 5% 4% 4% 10% Entertainment site 2% 2% Other 2% 2% 2% 2% 4,114 1,057 1,050 1,007 1, State of Marketing: Nordics

19 Just as interesting as what Nordic consumers do online in the morning is where they access their first online content of the day. Mobile has taken the lead from the personal computer in both Sweden and Norway, but Finland lags behind the rest of the region in embracing new technologies. In nearly the entire Nordic region, consumers aged prefer mobile devices for their first check-in while PCs are still the dominant device for older consumers. To develop a strong relationship with new subscribers, marketers need a mobile-friendly experience that engages customers on the channels they prefer throughout the day and into the evening. Device Used for First Online Check of the Day Nordics Total Sweden Norway Denmark Finland Personal computer 40% 34% 3 40% 58% Work or school computer 15% 15% 15% 12% 19% Mobile device 35% 4 37% 37% 16% Tablet 9% 8% 14% 1 7% 4,114 1,057 1,050 1,007 1, State of Marketing: Nordics 19

20 Consumer Digital Evening What is the last thing you check online in a typical day? Just as studying morning behavior yields important information about consumer preferences and priorities, examining how consumers end their online day also sheds light on how channel usage changes throughout the day. 3 say is the last thing they check online in a typical day, ending their day where 47% started it. As evening rolls around, consumer priorities tend to shift from business to leisure, as noted in the sharp increase on time spent on entertainment sites (9% in the evening compared to 2% in the morning). This often translates to a decrease in activity (as is often used for work purposes) and an increase in social media activity but there are interesting differences to note between morning and evening across the Nordic region: Consumers in Sweden (30%) and Finland (38%) are most likely to end their day where they started it checking . Unlike most countries that start and end their day with , Norway (3) and Denmark (35%) turn to Facebook for their final online check-in of the day. Consumer behavior stays fairly consistent from morning to evening with , Facebook, and news sites remaining the preferred destinations. However, Facebook and are more popular than news sites for the day s final check-in. Much like their first online check of the day, consumers in Sweden and Norway prefer their smartphones (4 and 38%, respectively), while consumers in Denmark and Finland rely more heavily on personal computers (45% and 6, respectively) for their final online check of the day. With the exception of Facebook, most social media sites maintain consistently low activity from morning to evening. We see higher usage across all social media sites with consumers aged across all countries surveyed in the Nordic region (in most cases, four times as much as the older consumer base). Older consumers access news sites more frequently than younger consumers nearly twice as often. As one might expect, older Nordic consumers gravitate towards using their personal computers, while younger consumers overwhelmingly use smartphones for digital connections. Consumers aged 65 and over use tablets more frequently than smartphones. Understanding how to connect with different generations of consumers at various times throughout the day is key to building a solid marketing strategy. Knowing which devices each audience uses and building your communication to optimize for these experiences is essential to keeping your customers engaged. To get the most return on your marketing investment, market to younger consumers through mobile-optimized content and Facebook, and to consumers aged 45 and over through and news channels State of Marketing: Nordics

21 Last Digital Stop of the Day Nordics Total Sweden Norway Denmark Finland 3 30% 2 32% 38% Facebook 29% 29% 3 35% 22% Twitter LinkedIn 0% 0% 0% 0% Instagram News site 20% 18% 27% 12% 2 My company s website 0% Search engine 2% 5% 2% Entertainment site 9% 10% 8% 7% 8% Other 4% 4% 4,114 1,057 1,050 1,007 1, State of Marketing: Nordics 21

22 Breaking Social Ground Fifty-three percent of Nordic marketers agree that social marketing is core to their business. They chose the following explanations for why social is important: Social is a critical enabler of products/services your business provides (74%) Social indirectly impacts your business performance (24%) Your business primary revenue source is directly linked to social marketing (2%) With marketers naming social media as their most popular area for budget increases, it comes as no surprise that dedicated social teams are now more common in the Nordic region than dedicated teams (4 of respondents have a social team; 39% have an team). Those social teams are roughly the size of most teams (typically three people or less). While marketers devote substantial time and resources to social, they don t agree on its impact: 24% of marketers say they re currently seeing ROI from social media marketing, while 4 believe these efforts will eventually produce ROI. Just 26% think that their social listening is fully effective, and 20% find their social advertising effective. To produce more ROI from social, marketers need a strong strategy in place to drive measurable results. Starting with one or two social channels and firming up a strategy on a small scale can help maximize social resources, and also lead the way towards joining those 24% of marketers who currently see ROI from social marketing. Social Media Marketing ROI Social Media Team Size 24% Social media marketing is producing ROI 4 Social media marketing will eventually produce ROI 30% Social media marketing is unlikely to produce ROI Other 4 1 person 39% 2-3 people 10% 4-5 people 8% More than 5 people State of Marketing: Nordics

23 Facebook, YouTube, and LinkedIn are the most popular social channels for Nordic marketers. But from the consumer side, our research shows that Instagram is more popular than both LinkedIn and Twitter across the entire region. Marketers have taken note and are looking to focus more time and effort on these increasingly popular channels: Instagram (18% plan to use in 2014) YouTube (14% plan to use in 2014) Google+ and podcasts (1 plan to use in 2014) Marketers Use of Social Channels We use today Plan to use in 2014 Do not plan to use Facebook Twitter YouTube Google+ Foursquare Pinterest 8 57% 65% 2 14% 6% 10% 14% 1 5% 9% 10% 32% 2 64% 92% 77% LinkedIn Blogs Podcasts SlideShare Flickr Instagram 6 45% 15% 6% 8% % 4% 18% 28% 44% 72% 84% 88% 38% State of Marketing: Nordics 23

24 The Facebook Consumer Why do Nordic consumers like a company, association, or organization on Facebook? Facebook poses unique opportunities and challenges for digital marketers. It s an inherently social channel where consumers are open to interacting with brands. However, consumers typically think of Facebook as their personal space, so tread lightly with hard-sell messages. Unlike , where purchase behavior is reasonably consistent across age segments, younger Nordic consumers are more likely to have made a purchase based on a Facebook post than their older peers. In all countries, with the exception of Norway, consumers aged 45 or younger are twice as likely to have made a purchase based on a Facebook post when compared to their older peers. Although we see no difference among age segments in Norway, there s a sizable difference between male (10%) and female (19%) consumer likelihood to make a purchase based on a Facebook post. 59% Fans Of the online Nordic consumers polled (aged 18 and older), 59% are fans, having liked at least one company or brand on Facebook. Seventy-five percent of consumers report liking at least one company or brand (72% in Sweden, 76% in Norway, 75% in Denmark, and 80% in Finland). Facebook, to a much greater extent than , satisfies the need for consumers to stay social and connect: 56% use Facebook to communicate with personal contacts (42% in Sweden, 57% in Norway, 68% in Denmark, and 66% in Finland) 49% use it to reconnect with old friends or people who live far away (48% in Sweden, 54% in Norway, 48% in Denmark, and 46% in Finland) 44% use it to coordinate their social life (4 in Sweden, 40% in Norway, 39% in Denmark, and 54% in Finland) 38% use it to alleviate boredom (36% in Sweden, 42% in Norway, 4 in Denmark, and 3 in Finland) 38% use it stay in touch with friends (35% in Sweden, 4 in Norway, 39% in Denmark, and 38% in Finland) Nordic consumers like companies on Facebook primarily to show support. They are more driven by the desire to be affiliated with a brand than to save money. Think of these as non-celebrity endorsements everyday consumers who exert influence over their social circles, whether directly or indirectly. The reason consumers like a company on Facebook varies by country; however, to show my support for the company to others (including friends and family) is a top motivator that s unique to the Nordics. Nordic consumers consistently expressed an interest in product-related updates in fact, these information-based motivations appear higher in the Nordics than in other regions. While Swede (24%), Danish (19%), and Finnish (2) consumers are interested in keeping a finger on the pulse of a brand or company, Norwegians (7%) show very little interest. Twenty-eight percent of Nordic consumers admit to ignoring posts from companies on their Facebook News Feed (3 in Sweden, 29% in Norway, 25% in Denmark, and 26% in Finland), and 45% have become more selective about the companies they like on Facebook (45% in Sweden, 46% in Norway, 4 in Denmark, and 49% in Finland). Rather than always aiming for a conversion, concentrate on demonstrating value and deepening the overall relationship with your brand. Post content that is fun, engaging, and helpful Nordic consumers are looking to make connections and are willing to support your brand publicly State of Marketing: Nordics

25 Consumer Motivations to Like To show my support for the company to others (including friends and family) 44% Sweden 58% Fans To keep up-to-date with a company s products, services, or offerings For more information related to my personal interests, hobbies, etc. N = 609 consumers who like at least one brand 26% 3 To show my support for the company to others (including friends and family) 48% To keep up-to-date with a company s products, services, or offerings 4 Norway For more information related to my personal interests, hobbies, etc. 66% Fans N = 687 consumers who like at least one brand 32% To keep up-to-date with a company s products, services, or offerings 38% Denmark 64% Fans To show my support for the company to others (including friends and family) To receive advance notice of new products or future releases N = 647 consumers who like at least one brand 32% 37% To show my support for the company to others (including friends and family) 38% To keep up-to-date with a company s products, services, or offerings 38% To receive discounts and money-off promotions 29% Finland 5 Fans N = 533 consumers who like at least one brand 2014 State of Marketing: Nordics 25

26 The Twitter Consumer Why do Nordic consumers follow a company, association, or organization on Twitter? Twitter commands a significantly smaller audience than either or Facebook. However, more than other channels, Twitter is a circle of influence. Since Twitter profiles are generally more public outlets than Facebook and , the most active Twitter users tend to have influence outside of the network itself. These users are often online content creators who blog, rate products, comment on websites, and make recommendations to family and friends. And while the measureable impact of Twitter on sales is fairly small, the real impact may be its ability to connect with influencers. Twenty-five percent of all Nordic consumers surveyed say they have a Twitter account, and only report having made a purchase as a direct result of a marketing message received via Twitter. Although they aren t likely to purchase via Twitter, consumers using this channel are more likely to recommend a company after following them on Twitter (7%) vs. subscribing to their s (). Consumers are considerably less likely to ignore a branded tweet (18%) than a Facebook post (28%) and more likely to read their favorite companies tweets (24%) vs. Facebook posts (16%). Even though Twitter users represent a much smaller portion of the overall Nordic population, they are a niche group worthy of investment because they can drive influence across this smaller network of people. 16% Followers Followers are online consumers with an active Twitter account who follow at least one company or brand on Twitter. 16% of the online Nordic consumers polled (aged 18 and older) are followers. Of the 25% of Nordic consumers who report having a Twitter account, 26% describe themselves as active Twitter users, reporting they check their accounts at least once a day. Of those consumers who have an account on Twitter, 48% follow at least one brand, company, or association on Twitter (50% in Sweden, 5 in Norway, 49% in Denmark, and in 39% Finland) 3 use Twitter to relieve boredom (32% in Sweden, 35% in Norway, 29% in Denmark, and 3 in Finland) 22% use it for work purposes (19% in Sweden, 26% in Norway, 20% in Denmark, and 22% in Finland) Twitter users are less likely to be selective in the companies they follow on Twitter (25%) vs. both and Facebook (45%). This may be due to the nature of Twitter or because consumers view following as less of a commitment than liking a brand on Facebook. Twitter is viewed as an important place for gathering information including alerts related to developments within the company, product and service updates, information related to personal interests and hobbies, details to help them keep a finger on the pulse of a brand, and advance notice of new products or future releases. Show the lighter side of your brand on Twitter by being informal and friendly. This is the place to test new content and push the limits of your brand. Consumers want to be heard especially the influential Twitter users who follow you. Provide them with an intimate view of your brand, timely customer service, and exclusive content, and they ll feel incentivized to share their insider information with the rest of the world State of Marketing: Nordics

27 Consumer Motivations to Follow To receive alerts related to developments within the company, association, or organization 59% Sweden 15% Followers For more information related to my personal interests, hobbies, etc. For a quick and easy way to keep my finger on the pulse of the brand/company N = 160 consumers who follow at least one brand 40% 42% To keep up-to-date with a company s products, services, or offerings For more information related to my personal interests, hobbies, etc. 52% 54% Norway To receive alerts related to developments within the company, association, or organization 2 Followers N = 222 consumers who follow at least one brand 37% To receive alerts related to developments within the company, association, or organization 5 Denmark 17% Followers For a quick and easy way to keep my finger on the pulse of the brand/company For more information related to my personal interests, hobbies, etc. N = 173 consumers who follow at least one brand 34% 50% To receive alerts related to developments within the company, association, or organization 48% Finland 1 Followers To keep up-to-date with a company s products, services, or offerings For a quick and easy way to keep my finger on the pulse of the brand/company N = 127 consumers who follow at least one brand 36% 36% 2014 State of Marketing: Nordics 27

28 The Future of Mobile Globally, more people have access to mobile phones than electricity or safe drinking water. 8 Seventy-one percent of Nordic marketers who use mobile marketing say they believe mobile efforts do or will produce ROI, and 19% have a dedicated mobile team. An overwhelming 80% of Nordic survey respondents indicated that they own a smartphone. Consumers in Norway and Sweden report using their mobile devices more frequently than any other device to access online content (refer to the Device Used for First Online Check of the Day chart). Finnish consumers aged 35 and over are considerably less likely to own a smartphone than their counterparts in other Nordic countries. Taking age into consideration, the numbers paint an even broader picture, with preference for smartphone usage skewing heavily towards the younger demographic. Make sure to understand your consumer based within each country. If you cater towards consumers aged 55 and over, it s less likely that they will interact with your brand via a mobile device; they re more likely to use a tablet or personal computer. However, if you target a younger demographic, optimizing your content to be mobile friendly should be a top priority over the next year. Mobile Marketing ROI Mobile Marketing Team Size 26% Mobile marketing is producing ROI 45% Mobile marketing will eventually produce ROI 2 Mobile marketing is unlikely to produce ROI 5% Other 64% 1 person 36% 2-3 people 0% 4-5 people 0% More than 5 people businessinsider.com/chart-of-the-day-putting-global-mobile-in-context State of Marketing: Nordics

29 Consumers Owning a Smartphone by Age 100% 94% 75% 90% 9 80% 7 55% 50% 25% years old years old years old years old years old 65+ years old Mobile Lifecycle Marketing Campaigns We use today Plan to use in 2014 Do not plan to use Mobile Welcome SMS Exclusive Deals Holiday or Event Campaign SMS to Cross-Channel Engagement Win-back Loyalty 26% 40% 36% 26% 35% 14% 27% % 2 18% 19% 5 39% 4 57% 42% 68% State of Marketing: Nordics 29

30 Fifty-one percent of marketers don t plan to implement SMS in 2014, yet the case for mobile is strong, based on consumers adoption of mobile devices across the Nordic region. Mobile lifecycle campaigns prove highly successful (compare the chart below with the Lifecycle Marketing Campaigns Success chart on page 14), so perhaps SMS implementation will increase throughout 2014 as marketers consider SMS as a mobile communication solution. Mobile messaging is also relatively easy to implement, as an SMS doesn t require design expertise like an . Check out some of the most popular mobile campaigns for inspiration: Exclusive deals (40% of marketers currently use; 2 plan to introduce) Cross-channel engagement (35% of marketers currently use; 2 plan to introduce) Holiday or event campaign (36% of marketers currently use; 2 plan to introduce) Mobile Lifecycle Marketing Campaign Success Excellent / Very good Good Fair / Poor Mobile Welcome SMS Exclusive Deals Holiday or Event Campaign SMS to Cross-Channel Engagement Win-back Loyalty 29% 48% 4 40% 27% 2 30% 4 35% 39% 25% 55% 46% 52% 29% 16% 18% 35% 17% 3 17% State of Marketing: Nordics

31 Note that 2 of mobile marketers don t know if they re using location-based functionality, while 2 are currently implementing the technique, which is designed to better reach on-the-go consumers when they enter a specific geographic area. Four out of five minutes on a smartphone are spent engaging with an app 9, and marketers in the Nordics are beginning to follow the app trend: 47% of marketers who use mobile say their company has an app. Getting an app off the ground is one thing, but keeping customers engaged long-term is another. Push messaging can help bridge the gap between initial download and consistent reengagement, prompting app users to check out updates, visit certain areas in the app, and more. Mobile App Support for Operating Systems Location-Based Functionality 100% 75% 50% 25% 8 ios 78% Android 47% Windows 14% Blackberry 6% Other 2 Yes 57% No 2 Don t know comscore. Mobile Future in Focus, Mark Donovan, February State of Marketing: Nordics 31

32 Mobile Meets the Family Twenty-five percent of marketers from the Nordics say they haven t integrated mobile marketing into their overall programs, and 19% say they don t know if they have. Mobile integration is foundational to marketing success, as mobile adoption grows and customers spend more time with mobile devices. To continue shepherding mobile integration efforts in the direction of success, recall that customers may do all of the following via mobile device: browse products on your site, access customer service portals (like web contact forms and forums), , engage with social media, watch branded videos, download and explore your app, receive in-app alerts and SMS messages, and much more. These activities must be designed with both mobile and desktop users in mind. Consider how you can make every brand interaction more mobile-intuitive in the next year. Fortunately, of the 56% of marketers who did integrate mobile marketing into their overall programs, 78% said the integration was at least somewhat effective. So, it s worth the effort to learn your customers mobile preferences and reach them on the channel they prefer, when they prefer it. Effectiveness of Mobile Integration into Overall Marketing Programs 2% Extremely effective 24% Very effective 52% Somewhat effective 14% Not very effective 0% Not at all effective 7% Don t know State of Marketing: Nordics

33 Survey Methodology and Demographics The 2014 State of Marketing: Nordics marketers survey was conducted online from April 9, 2014, until April 14, A total of 432 marketers from the Nordic region responded to the survey with 87% having 500 or fewer employees. Our consumer research (conducted between March 21 and April 7, 2014) consists of 4,114 consumers from Sweden (1,057), Norway (1,050), Denmark (1,007), and Finland (1,000). A note on methodology: due to rounding, not all percentage totals equal 100%. Industry: Nordic Marketers Role: Nordic Marketers 28% Media and entertainment 17% Agency 1 Services 7% Education and non-profit 6% Technology and manufacturing 5% Retail and e-commerce 4% Financial services CPG Healthcare Travel and hospitality Telecommunications and utilities 16% Other 20% Project coordinator 16% Marketing 16% CEO 7% Designer/developer 5% Analyst 5% Sales manager 5% Business unit manager 27% Other State of Marketing: Nordics 33

34 2014 Recommendations No matter the size of your marketing team or programs, you can use these recommendations to help lead the conversation in your business: Focus on customer engagement. Map your customer journey to understand at exactly what points your customers engage with you. Develop a plan around how you manage those engagement touchpoints and think through how you could improve each. Develop a clear data strategy. Take inventory of the data you have today and the data you need to collect. Create a plan to collect that data over time and across multiple customer interactions, because asking for a lot of information at once can be a barrier to engagement. Consider your channel options. Use this report to compare the channels you re using to the channels other marketers are using. When planning marketing efforts to engage consumers through multiple channels, adopt an approach that layers them on top of each other. Consumers don t silo their interactions with brands, so brands can t afford to silo interactions with consumers. Form a strategy around your presence on those channels, whether you flock to the most common channels or choose to stand out by using an underutilized but rapidly growing channel like mobile. Consumers generally remain receptive to messages from companies they ve authorized to contact them. It s worth noting that consumers are increasingly selective with those permissions. Focus on gaining permission and maintaining trust with your target consumers. Attaining permission does not grant companies carte blanche to inundate the inbox with whatever they are trying to promote. Excessive or irrelevant s will cause consumers to revoke permission and disengage. Evaluate your lifecycle campaigns. Take inventory of your programs across all four lifecycle stages: acquire, onboard, engage, and retain. Identify gaps across the lifecycle stages and implement campaigns to ensure that you have some form of engagement with your customers during each of these critical stages. Roll out responsive design. Determine how many of your subscribers open your s on a mobile device. If you have a substantial amount of mobile opens, put a responsive design plan into action right away. Customer Journey Take a deep look at how customers are currently experiencing your brand. Whether online or offline, and whether it s a function of marketing or another department entirely, examine and document the current brand experience your customers have at every touchpoint. Remember that these touchpoints transpire anywhere from call center to social media to brick-and-mortar and beyond. What are your gaps and areas for improvement? These should be addressed in your new activation plan to both establish the ideal customer journey and develop a strategy for incrementally getting there State of Marketing: Nordics

35 Social Brand advocates are looking to your social presence for a consistent stream of truly valuable content. These advocates can help promote you if you answer their questions and contribute meaningfully to social conversations. Social media alone may not fill your sales funnel, but a social strategy is necessary for a well-rounded brand voice that meets customers wherever they spend time online. Start small. Evaluate the social media channels available and create a pros and cons list for each. Choose one or two channels to focus your efforts on first, so you can easily scale successful strategies to other channels later on. Zero in on clear objectives. Establish measurable goals to avoid feeling unsure of whether your social media efforts are performing well. Create metrics around how often you will post content, how quickly you ll respond to customer messages, etc. Mobile Don t ignore the importance of mobile. For most businesses, mobile is still a largely untapped opportunity. Evaluate if mobile is right for your company. Use this report to see what pioneers in mobile are already doing and decide if any of those strategies are relevant to your customers. Since mobile marketing is still in its infancy, don t be afraid to try out a few of your own ideas, too. Integrate your mobile efforts. Map your broader marketing strategies alongside your mobile strategy to determine areas where the two can work together. Bring your and mobile efforts together for an instant return as you pilot the success of mobile integration. Personalization Start communicating 1:1 with your customers. Collecting behavior-based data is the best way to start working toward high-quality personalized messages. Launch a more robust preference center to give customers the opportunity to voluntarily share the data they d like to shape future messages. Think about personalization beyond . When building your digital strategy, remember that the same call to action likely will not be as effective on both Facebook (an innately personal channel) and (a channel used frequently for the hard-sell). Likewise, an infographic may yield thousands of shares on Twitter, but not be the best choice for an image. If your personalization is already top-tier, work toward cross-channel personalization for social, mobile, and web. As media theorist Marshall McLuhan famously said, The medium is the message. This holds true even for digital marketing. While consumers generally don t expect vast differences in communication across channels, they quickly tire of the same recycled content appearing on their screens every day. Strike a balance between playing to each channel s strengths while ensuring a consistent brand image and messaging. As consumers in the Nordics switch between devices, social channels, and inboxes, your brand can remain a constant voice. Build meaningful relationships by developing content that suits the unique nature of each channel and country, always keeping in mind individuals preferences, motivations, and behaviors State of Marketing: Nordics 35