Since Sector Trends JEGI Media & Technology Conference Time Warner Center, New York City.

Transcription

1 Since Sector Trends 2012 JEGI Media & Technology Conference Time Warner Center, New York City January 19, 2012

2 2012 Sector Trends B2B Marketing Solutions Richard Mead, Managing Director, JEGI 2

3 Reports of Death of B2B Greatly Exaggerated 3 3

4 B2B Marketing Solutions Key Trend #1 The Growing Importance of B2B Marketing Solutions Companies Extensive Market Knowledge Efficient, Customized Marketing Channels Integrated Work-Flow Solutions Stronger Partnerships with B2B Customers 4 4

5 B2B Marketing Solutions Key Trend #1 B2B Marketing Solutions Spending ($billions) $40.0 $35.0 $30.0 $30.9 $30.6 $27.2 $27.2 $28.5 $30.2 $31.9 $34.1 $36.0 $25.0 $20.0 $15.0 $10.0 $ Live & Virtual Events B2B Magazines E-Media B2B Outsourced Custom Publishing Source: VSS Communications Industry Forecast

6 B2B Marketing Solutions Key Trend #2 Combining Internet Functionality with Legacy Marketing Channels Engage a Broader Community Deliver Valuable Content Generate Qualified Real Leads Increase Measureable Marketing ROI 6 6

7 B2B Marketing Solutions Key Trend #2 Providing One-Stop Sourcing for B2B Marketing Solutions Content Research Global Sellers Events Lead Gen Global Buyers ecommerce Custom Marketing 7 7

8 B2B Marketing Solutions Key Trend #2 B2B Marketing Solutions Companies Are Repositioning For A New Golden Age Penton s Product-to-Sales Ecosystem 8 8

9 B2B Marketing Solutions Key Trend #2 An Integrated Approach from Northstar Travel 9 9

10 B2B Marketing Solutions Key Trend #3 The B2B Marketing Solutions E-volution Requires Initiative, Innovation, and Investment Control the Community, Control the Game More Relevance, More Reward New B2B Holistic Platforms Attractive B2B Investment Opportunities 10 10

11 B2B Marketing Solutions Key Trend #3 Count Down To Attractive Valuation Implications for B2B Investors 11 11

12 B2B Marketing Solutions Key Trend #3 A New Dawn for B2B Marketing Solutions and Their Investors Hello Tolman 12 12

13 2012 Sector Trends Online Display Advertising Tolman Geffs, Co-President, JEGI 13

14 Online Display Advertising Key Trend #1 Online Display Advertising has Changed Fundamentally Most Players In Back Seat Display Driving Forward Big 5 Grabbing 70% of New Growth Everyone Else Fighting for 30% of Market Growth 14 14

15 Online Display Market Growing Well $25 U.S. Online Display Spending ($billions) $23.9 $20 $15 +$6.8 bn $12.3 $14.8 $16.1 $ % over 3 years $6.8 billion net new spend $10 $7.1 $7.6 $8.0 $9.9 $ Source: emarketer, Forrester Research,

16 Big 5 Control the Market 16 16

17 Everyone Else Fighting for 30% of Growth Growth in U.S. Online Display Spending E ($billions) Share of Net New Display Spending +$6.8 +$4.8 +$2.0 30% 2009 Spending Online Display Top 5 Online Display "Everyone Else" Online Display $8.0 $3.1 $ E Spending $14.8 $7.9 $6.9 Source: emarketer,

18 Online Display Advertising Key Trend #2 It s No Wonder. Online Display Advertising Today is NOT a Great Brand Advertising Medium Biggest Red Herring % Viewing Time v. % Ad Spend Web Not a Great Brand Advertising Medium Big 5 Offer Massive Reach and Efficiency 18 18

19 Biggest Red Herring All Media is Not Created Equal Share of Time Spent vs. Advertising Spending, U.S Time Spent Ad Spend 50% Growth in U.S. Online Display Spending E ($billions) +$ % 30% 20% 10% 0% 43% 43% 27% 25% 19% 16% 11% 8% 8% 0.5% Print Radio TV Internet Mobile +$6.8 Source: Kleiner Perkins; emarketer, March 2011 Online Display Television 19 19

20 Online Display Not a Compelling Experience Magazine Ad Standard Website Ad Web loses something

21 Big Display Guys Offer Massive Reach and Efficiency At Least the Big 5 Deliver TV-like Reach and Efficiency (For a Sub-par Ad Experience) 21 21

22 Online Display Advertising Key Trend #3 Online Display Advertising Tomorrow will be a Much Smarter Brand Advertising Medium Web Awash in User Data; Most of Little to No Value Smarter Data Lies Closer to Publishers & Merchants M&A Will Focus on Effective Data Management 22 22

23 Classic Funnel Marketing 101 Audience Targeting Down The Purchase Funnel Awareness Consideration Preference Interest data Demographic (age, gender) Psychographic (mindset, propensity) Social (connections, influence) Contextual (relevant, content) Purchase Retention Intent Data Shopping Search retargeting Remarketing Source: Forrester Research 23 23

24 But Data Value Varies... By A Lot On the Internet, nobody knows you re a dog 24 24

25 Most Online Consumer Data is of Limited Effectiveness Profile of Tolman Geffs Female Urban Renter With Children HH Income: $20,000 - $29,000 Source: Major online data aggregator 25 25

26 More Effective Data Originates With Merchants Consumer Data 1,900+ multi-channel retailers Across all channels 8+ billion transactions SKU Level Data I-Behavior +Aggregation +Segmentation +Modeling +Insights Predictive Audience Modeling»» Multi-Channel Catalog Direct Mail Retail Online Mobile Most Effective Data Approach is Publishers Leveraging Own Data and Supplementing With Third-Party Data 26 26

27 Expect More M&A Focused on First Party Data Data Management Delivery Consumer Platform 27 27

28 2012 Sector Trends Integrated Marketing Services David Clark, Managing Director, JEGI 28

29 Integrated Marketing Services Key Trend #1 Publishers Rapidly Expanding Their Marketing Services Footprint Powerful Marketing Assets + Skills Leverage Content, Audience, Relationships Deliver Integrated Marketing Solutions 29 29

30 BTL And Interactive Are Attractive Sources of Growth Print Ad Spend vs. Below-the-line & Interactive Spend ($billions) $120 $ BTL = $83.4 $80 $60 $ Interactive = $ Print = $60.4 $ Note: BTL excludes direct marketing and B2B promotion Print includes newspapers, magazines, B2B media and directories Source: VSS Communications Industry Forecast Forrester US Interactive Marketing Forecast,

31 Publishers Building Marketing Platforms Deep Expertise in Database Marketing, Content Development, Tablet Media and Consumer Apps 31 31

32 Integrated Marketing Services Key Trend #2 Brands Operate as Multi-Media/Multi-Channel Publishers Build and Maintain 24/7 Digital Presence Compelling and Personalized Content Direct Access to Consumers and Content 32 32

33 Brands Pushing into Social +$300 million in social media M&A Foundation for new, direct social/promotional marketing 33 33

34 Brands Pushing on Content 34 34

35 Brands Pushing on Content 35 35

36 Agencies Still Dominant 14% revenue growth rate 200 acquisitions / investments in 2011 Social, digital direct and best in-class development Unique global perspective and influence Source: CapIQ 36 36

37 Integrated Marketing Services Key Trend #3 CMO Now Focused on Enterprise Marketing Technology Data-Driven Marketing = Big Data CRM and Marketing Tech Rushing to the Cloud Tech Expanding into Digital Brand Solutions 37 37

38 Marketing Technology M&A 38 38

39 Formidable New Competition $11 billion marketing tech deals in $26.1 billion cash on hand Rapidly expanding integration and API partner networks 39 39

40 2012 Sector Trends Direct-to-Consumer Scott Peters, Co-President, JEGI 40

41 Direct-to-Consumer Key Trend #1 Revolution: Brands Must Engage Their Customers Directly Distribution Walls Have Come Down New Skills Required to Succeed Most Investment is Below the Line 41 41

42 Direct-to-Consumer Brands Must Engage Their Customers Directly The Retail Model is Evolving Retailers Catalogs Nike Nike stores Phase Online Retailers Nike.com Direct sales most profitable store front Primary brand connection to consumers Most important point of contact with a customer 42 42

43 Direct-to-Consumer Brands Must Engage Their Customers Directly Comprehensive, Multi-channel Retail Approach Wins Why Nike wins? Consistent branding and access across channels Offline support to ensure retail partners are happy Fair and consistent multichannel pricing strategy Nike.com offers a unique value proposition Product personalization Unique content Social media integration 43 43

44 Direct-to-Consumer Brands Must Engage Their Customers Directly Online Marketing Channels Require New Skills Breakdown of Known External Traffic Sources Social 11% Portal 17% Search 41% Content Sites 31% Marketing How are customers finding my site? How do I drive more traffic from search and channel partners? How does my brand leverage social media to drive sales? Role of digital agency remains critical Increasing pressure on CMOs to understand the full multi-channel marketing mix Source: Outbrain 44 44

45 Direct-to-Consumer Brands Must Engage Their Customers Directly ecommerce Technology Decisions Become Mission Critical Major ecommerce Platforms ecommerce Capabilities Required Online and offline transactions Multi-channel pricing and promotion Supply chain management Multi-channel marketing integration CRM integration 45 45

46 Direct-to-Consumer Key Trend #2 Social Media is Becoming a Primary Communication Medium for Brands Your Customers are Now Your Friends Unprecedented Amount of New Data But How Do You Make Sense of It? Social Must Closely Coordinate With Other Channels 46 46

47 Direct-to-Consumer Key Trend #2 Nike.com Uses Social Media is Becoming a Primary Point of Connection with Customers Social media is shifting from experimentation to core Nike.com has 5,534,790 likes 32,522 talking about this article Branding Consumer Engagement Market Research Competitive Intelligence ecommerce & more 47 47

48 Direct-to-Consumer Key Trend #2 Consumers Expect Engagement from Every Marketing Channel Website Mobile Out of Home Online Advertising Social Media and Mobile Engagement TV & Radio Catalog & Direct Mail In-Store Magazines & Newspapers 48 48

49 Direct-to-Consumer Key Trend #2 Rise of the Social Media Data Analytics Providers 49 49

50 Direct-to-Consumer Key Trend #3 New Technologies are Continuing to Drive Better ROI on Marketing Spend Audiences Can Be Reached in Entirely New Ways Data and Analytics Present New Insights Media Optimization Dashboard Coming Soon 50 50

51 Direct-to-Consumer Key Trend #3 Online Ad Targeting Continues to Change the Game Selective audience aggregation via traditional media is no longer a competitive barrier Ad networks now provide context to impressions Incremental online ad inventory carries little to no expense Online advertising CPMs hammering offline CPM value proposition 51 51

52 Direct-to-Consumer Key Trend #3 New Technologies are Driving Better ROI on Marketing Spend SEO / SEM Display Social Customer Experience 52 52

53 Direct-to-Consumer Key Trend #3 Data Driven Insights Change the Game Real-time behavioral targeting changes value proposition to advertisers Explosion in real-time data sources is providing analytics firms with a distinct competitive advantage over static media Social media providing layer of unprecedented (and available) personal data The definition of ROI is evolving Branding impressions Lead generation Contextual adjacency with key influencers Etc

54 Direct-to-Consumer Key Trend #3 ROI Optimization Dashboard Online and offline media reinforce each other Each channel is finding its own ROI center of gravity Experimentation in online and offline advertising correlations in process The holy grail in advertising has yet to be found ROI Optimization Dashboard for all online and offline media spend Keep an eye on Donovan Data System s Media Ocean 54 54

55 In Closing... B2B Marketing Solutions Richard Mead Growing importance of B2B Media in efficient business marketing and sales Combining Internet functionality with legacy marketing channels to drive revenue B2B revolution requires management and money Online Display Advertising Tolman Geffs Online display growth concentrated in Big 5 Constrained by weak ad formats But data getting smarter for publishers and merchants Integrated Marketing Services David Clark Publishes expanding marketing services footprint Brands are now multi-media/channel publishers CMO focused on enterprise marketing technology Direct-To-Consumer Scott Peters Brand s direct-to-consumer strategy will be the primary focus of marketing activity Social media will impact all aspects of the brand/consumer relationship Cross-media marketing optimization is coming 55 55

56 Since Sector Trends 150 East 52 nd Street 18th Floor New York, NY Phone: (212) Fax: (212) January 19, 2012