eMarketer Webinar: Key Digital Trends for 2012

Principal Analysts,

eMarketer Inc.

D E C E M B E R 1 5, 2 0 1 1

N E W Y O R K, NY

Key Digital Trends for 2012

Presented By: Noah Elkin

David Hallerman

Debra Aho Williamson

Sponsored by:

A Virtuous Cycle: Trends in Device Adoption, Consumer Behavior and Content Availability

Noah Elkin

@noahelkin

A perfect storm of opportunity is brewing for digital marketers

Technology adoption is accelerating rapidly, raising consumer expectations about content delivery and accessibility

Pace of change in consumer behavior is even greater in large emerging markets,such as the BRIC countries

Forecast: Cloudy, with a chance of…music

2012 will be the year cloud-based streaming gets a full test

What it means: finding the opportunities that exist in today’s technology stack

Activities

Platforms

Devices

• Communication• Media consumption• Commerce

• Facebook• Twitter• Amazon• Netflix

• PCs• Smartphones• Tablets• Over-the-Top

The Check-Ins Begin to Check Out

Awareness of location-based services has surged, but usage is still far from mainstream

Finding deals is a bigger motivator for using geolocation than gaining status

Lots of attention on time-sensitive deals. But an open question remains: Are daily deals good deals for merchants? Or are they giving away the store?

Growing emphasis on generating loyalty. Local merchants and national brands alike recognize that customer acquisition needs to be balanced with customer loyalty.

Ad dollars will follow shoppers. The combination of location, mobile, social and commerce will form a potent force in the advertising market.

The next wave in location revolves around enabling commerce

Usage of mobile coupons is modest but growing rapidly,driven by smartphone owners

Consumer interest in mobile wallet services is growing, but the value proposition is not yet clear

Forecasts agree on mobile payments growth, but not on how much money is on the table

Gartner (July 2011)

Yankee Group (July 2011)

visiongain (Aug 2011)

Juniper (July 2011)

$86.1B (2011)

$556B (2016)

$246B (2011)

$670B (2015)

Note: figures above are worldwide

The last mile is always the longest, hardest … and most expensive

Image courtesy of Lubos Brieda

Advertising and Marketing in 2012

David Hallerman

@dhallerman

Key trends for digital advertising in 2012…

Magnetic content: attract rather than distract, engage rather than intrude

Video leads the way: brand advertising follows sometimes traditional, sometimes interactive paths

Programmatic buying: efficient and effective for display advertising

Privacy concerns: will become increasingly central to digital marketing

Twitter: #eMwebinar

Magnetic Content

What blurs the line between advertising and content?

Magnetic content, which can be…

…branded videos

…interactive games

…mobile apps

…digital contests

…any method that attracts as it promotes

Twitter: #eMwebinar

Magnetic content often blends channels and methods to reach the audience seamlessly across platforms

Branded social pages help mix the message with a call to action,such as discounts

Branded apps are a prime form of magnetic content

Viral video is “classic” magnetic content—and is used more and more

Magnetic content can bypass consumer dislike for advertising and engage them

“You’ll start to see us—and in general the industry—move away from just the static push advertising to more engaged conversations.” —Scott Kelly, digital marketing manager, Ford Motor Co.

“The ad is yesterday. Content is the future.” —Oliver Newton, head of emerging platforms, Starcom MediaVest

Twitter: #eMwebinar

Video Leads Online Ad Growth

Spending for online video advertising in 2012 will pass the $3 billion mark,growing faster than any other online ad format

Better reach will be the main factor leading toward more video ad buys

Twitter: #eMwebinar

And better reach will come from the rapidly growing online TV audience

63% of publishers see in-stream video generating the most ad revenue in 2012

As online video becomes more established, new layers will be added

Programmatic Buying for Display Advertising

Ad inventory options: old ways and new methods

Publisher direct (premium)

Ad networks

Ad exchanges

Private exchanges

Demand-side platforms (DSPs)

Real-time bidding (RTB)

Twitter: #eMwebinar

Publishers extend their sales reach by putting inventory on exchanges or other real-time platforms

What is a private exchange?

Marketplace in which one large publisher sells inventory based on its segmented user base

While many are a single publisher, some are small, related groups of publishers

Also can be large groups (ex: QuadrantOne, which sells inventory from hundreds of newspaper sites)

Often fueled using RTB technology

Twitter: #eMwebinar

Nick Johnson, senior vice president, digital media sales, NBC Universal

“If advertisers want to come in, we’re selling

them the network. We’re not selling them

placements; we’re selling them people.”

What is a demand-side platform (DSP)?

System for managing multiple ad exchange accounts using a single interface

Lets marketers integrate outside data directly into DSPs for buying via RTB methods

Prime example of programmatic buying

Trading desks are essentially in-house agency DSPs

Twitter: #eMwebinar

Significant share of those considering a DSP say it will be a part of their efforts

What is real-time bidding (RTB)?

Component of a DSP, ad exchange or network that lets buyers use their own data and targeting options to bid for each ad impression

Gives marketers a controlled environment for buying ad inventory and optimizing costs

Fueled by a wealth of data, such as IP address, geolocation, current site user is viewing, ad unit size and format, time of day, user profile

Based on instantaneous auctions (duh!)

Twitter: #eMwebinar

RTB’s share of display spending is still small, but growing rapidly

Programmatic buying: can be more effective, but control is a concern

Privacy Concerns: Real and Growing

Internet users regularly contradict themselves about privacy concerns

Is the privacy debate outdated? Or is the concept of privacy simply changing?

The vast majority of consumers simply want to know what data is being collected, a form of control

When it comes to data, control and knowledge are essential for at least half of consumers

Interesting that “only” 59% of internet users say government should be responsible for protecting their privacy

Which players should be responsible for protecting user privacy?

Advertisers and agencies? Online publishers and retailers? Search engines? Trade groups, such as the IAB? Privacy vendors, such as TRUSTe or Evidon? Other ad-infrastructure vendors, such as ad networks? Browser makers? Operating-system creators? The government? Users themselves?

Twitter: #eMwebinar

Two basic ways the ad industry is responding to privacy challenges

Transparency: here is what we’re doing and why we’re doing it

Trade-offs: here is something of value in exchange for your time, attention and data

Of course, transparency itself is a form of value—knowledge and control help create trust

Twitter: #eMwebinar

Trends in Social Media Marketing

Debra Aho Williamson

@debrawilliamson

Social Network Audience: 66% of US Internet Users in 2012

Two-thirds of US internet users will use social networks in 2012

But the pace of growth will be less dramatic over the next few years.

Asian, Black and Hispanic populations lead in usage

Twitter: #eMwebinar

Social Network Ad Revenues: Still Rising

Worldwide social network ad revenues will pass $8 billion in 2012

Facebook will have $5.8 billion in advertising revenue in 2012

Facebook trends to watch in 2012:

Privacy. The FTC agreement doesn’t mean Facebook’s privacy challenges are over. There will be more attention than ever on how Facebook uses its members’ information.

Ad revenue. To keep ad revenues growing, the company will spend more time evangelizing the benefits of buying ads to support a Facebook marketing presence.

Mobile. Facebook needs to make its mobile platform even better to attract international audiences. And mobile ads are long overdue.

Twitter: #eMwebinar

Measurement: Moving Toward Metrics That Prove Business Value

CMOs need hard metrics to support social media spending increases

Marketers still focusing on measuring fans rather than business results

Top companies want to gain more consumer insights and develop dashboards and KPIs

How to get to the metrics that matter

Measure (something!)

Know your business goals

Don’t wait for the silver bullet success metric

Look at more than branding results

Be a leader in the next phase of social media measurement.

Google+: Attracting Marketer Attention

Google+ will draw marketer attention in 2012

Google’s social network opened to brands in November 2011. Consumers can add a brand to their Google+ Circles. Brands can then do the same, segmenting their audience into different groups.

+1 button adds social actions to search. A Google+ page can affect a brand’s search results, and searching on Google for “+[Brand]” takes the user directly to the company’s Google+ page.

Early usage trends have been up and down. However, the size of the audience may be moot if Google can create new ad products that blend social and search.

Twitter: #eMwebinar

Adoption of Google+ Pages is promising, with 61% of the top 100 brands there

Wrap-Up: 2012 – Doomsday or Payday?

Noah Elkin

@noahelkin

London Olympic Games promise true multiscreen opportunities

Digital is the new battleground state

2012 presidential election and Olympics will provide a short-term advertising jolt

Device adoption trends signal new imperatives for marketers. Consumers’ approach is increasingly platform-agnostic.

The line between advertising and content continues to blur. Marketers are looking to bypass consumer dislike of advertising through new forms of cross-channel engagement.

Social networking remains in growth mode. Users and ad revenues are on the rise; measurement is still evolving.

Consumers’ mobile, social and shopping behaviors are converging at the last mile. Brands need to understand where location fits with their different touchpoints, from check-in to checkout.

Privacy remains on the front burner for consumers and marketers alike. Concerns are real and growing across online, social and mobile platforms.

Key takeaways

CMO’s feeling overwhelmed…

Expected level of complexity and preparedness to handlePercent of Global CMOs responding

IBM CMO Study finds that with a torrent of complexity, CMOs feel unprepared for the amount of complexity they face.

Overwhelmed with channels, devices, and social media

IBM CMO Study finds CMOs are underprepared for data explosion and look to technology and analytics for help

Under-preparednessPercent of CMOs reporting under-preparedness

Better prepared CMOs more likely to succeed

Percent of CMOs reporting under-preparedness to manage market factors

IBM CMO Study finds that preparing for and dealing with your marketing challenges can improve business success

Lower unpreparedness correlated with out

performance

How are you doing? Learn more with the IBM CMO Self-Assessment Tool

Download the CMO Study for our Interactive Marketing Resource Center at http://bit.ly/tg14Zr

Principal Analysts, eMarketer, Inc.

Twitter hashtag: #eMwebinar

eMarketer Webinar: Key Digital Trends for 2012

bypass consumer

key digital

programmatic

consumer behavior

ad revenue

magnetic content

cmos reporting

image courtesy

Business

eMarketer Webinar: Social Marketing Trends for 2016

eMarketer Webinar: Holiday Shopping 2014—Online Trends and...

eMarketer Webinar: Measuring Social Media Success

eMarketer Webinar: Mobile, Social & Geolocation—Key Trends...

eMarketer Webinar: 7 Social Media Ad Trends for 2014

eMarketer Webinar: Key Trends in Social Advertising

eMarketer Webinar: Mobile Marketing Trends, Insights, Best.....

eMarketer Webinar: Mobile Ad Effectiveness

eMarketer Webinar: Key Digital Trends, a Midyear Update

eMarketer Webinar: The Future of Digital Identity

eMarketer Webinar: Key Digital Trends—15 Things to Know...

eMarketer Webinar: Video Advertising Engagement

eMarketer Webinar: Key Digital Trends for 2016

eMarketer Webinar: Key Digital Trends for 2011

eMarketer Webinar: Six Trends in the Shifting World of...

eMarketer Webinar: Six B2B Mobile Marketing Trends for 2016