50 Marketing Charts for 2017 Finalread.prclt.com/50 Marketing Charts for 2017.pdfadvertising, mobile, AI, and more that will shape how marketing organizations ... Print Radio TV Internet

50 Most Important Marketing Charts for 2017

Inside this collectionEach year, we look back and analyze the most critical global trends that are changing the way marketers think and work. We also look ahead and connect these trends to how marketing will evolve in the coming year. This year, we’re highlighting trends in advertising, mobile, AI, and more that will shape how marketing organizations strategize and operate in 2017. These include:

— The growing importance of video content for engagement on social — The decline of loyalty as the gold standard for brand growth — AI and chatbots’ potential to redefine the customer experience — The tensions between the demand for content and the resources available to

marketers

We’ve also included insights from our annual Cost of Creativity study, which examines how and where senior marketers at enterprise brands are investing in content. This year we surveyed 200+ marketing leaders to see how they’re addressing the new challenges of multichannel content marketing and controlling content creation costs.

https://learn.percolate.com/cost-of-creativity-non-working-spend-2017/

AdvertisingToday’s consumers are living in world of media overload. With so many choices, consumers’ tolerance for traditional advertising is waning. Brands must find new, innovative ways to capture their customers’ attention.

The biggest advertisers still control the lion’s share of ad revenue

Percentage share of total revenues, 2004-2016

Billi

ons (

USD

)

2

4

6

8

10

12

14

16

18

20

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (HY)

Top 10 Top 25 Remaining

Source: IAB/PwC

10%

74%

16%

Consumers spend less time with print ads than advertisers thinkPe

rcen

t of t

otal

med

ia co

nsum

ptio

n tim

e or a

dver

tisin

g spe

nd

0

4

8

12

16

20

24

28

32

36

40

Print Radio TV Internet Mobile

Time Spent Ad SpendPercent of time spent in media vs. percent of average spend, USA, 2015

Source: Kleiner Perkins Caulfield Buyers

But the media that garner the most time spent, aren’t necessarily the most engaging

Percent of users who pay attention to TV ads, 2017

55%

45%Pay attentionDid not pay attention

45%Pay attention to TV ads

Source: Google

Online formats are leading the pack in capturing and holding consumers’ attention

Percent of users who pay attention to Youtube mobile ads, 2017

17%

83%

Pay attentionDid not pay attention

83%Pay attention to Youtube mobile ads

Source: Google

USA

Inte

rnet

Adv

ertis

ing (

$B)

0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015 2016 2017 2018 2019

93.588.1

75.6

68.1

59.6

49.5

42.8

36.631.7

Desktop

Online ad spend has tripled in the last six years

USA internet advertising, 2011-2019

Source: Business Insider

But ad blocking is on the rise

Global ad blocking users on the Web, 2009-2016

Glo

bal A

d Bl

ocki

ng U

ser (

MM

)

100

200

300

400

500

Years2009 2010 2011 2012 2013 2014 2015 2016

Desktop Mobile


Ad blocking is linked to the ‘intrusive’ nature of ad content

Attitudes toward ad blocking software, and reasons for using it, 2016

Mill

ions

0

5

10

15

20

25

30

35

40

Ad formats are too intrusive To save data/ improve speed/ protect privacy Would switch to a mobile operator that blocks ads

Mobile Desktop All

Source: Midia Research

The majority of consumers who watch video ads mute them

Percent of users who mute video ads, 2015

19%

81%

MuteDon't mute

81%Mute video ads


Advertisers are finding other ways to reach their audience

Sponsored Instagram posts per month, 2010-2016

Source: The Economist

Num

ber o

f Pos

ts (1

000s

)

100

200

300

400

Year2010 2011 2012 2013 2014 2015 2016*

Sponsored Posts

And investing in elaborate, high-quality content plays

For Amazon, content is just another way to sell Prime — and its production budget rivals that of full-fledged media companies

2015

Bud

get (

$ bn

)

0

2

3

5

6

8

9

11

12

14

15

Disney NBCU CBS Netflix Turner Amazon HBO

Source: Andreessen Horowitz

Social MediaSocial media has long been a strategic pillar for global brands. But social is evolving – video content is becoming more and more prevalent, coinciding with a rise in production costs and an enterprise-wide struggle to bring social out of its silo.

People spend more time on social media than almost anything else

Lifetime time spent on social compared to other common activities, 2016

Source: Smart Brief

Year

s

0

1

2

3

4

5

6

7

8

9

10

Watching TV Social Media Eating & Drinking Grooming Socializing Doing Laundry

Video-driven platforms like Youtube command the most attention

Average daily time spent on social by platform, 2016

Source: Smart Brief

Min

utes

0

5

10

15

20

25

30

35

40

45

YouTube Facebook Snapchat Instagram

And more brands are taking on video-driven platforms like Snapchat

Percentage of brands using Snapchat by category, 2016

Source: Digiday

Perc

ent o

f br

ands

0

9

18

27

36

45

54

63

72

81

90

Activewear Beauty Fashion Retail Watches/Jewelry Beverages Auto Electronics Travel

January 2016 September 2016

By 2020, video will account for 82% of all consumer Internet traffic

Video traffic as a percentage of global consumer internet traffic, 2015-2020

Source: Cisco

Perc

ent o

f con

sum

er in

tern

et tr

affic

0

20

40

60

80

100

2015 2020

82

70

While active Twitter users continue to plateau…

Monthly active Twitter users, 2015-2016

Source: TechCrunch

Qua

rter

ly A

vera

ge (M

illio

ns)

40

80

120

160

200

240

280

320

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

International United States

Twitter is still a critical channel during live TV events

Organic Tweets* drive the majority of engagement before, during, and after TV airtime, 2016

19%

81%

OrganicOwned

81%of engagement is organic

Source: Nielsen

*Owned engagement includes Retweets, replies, and shares of Tweets from talent, program, and network handles from three hours before through three hours after new/live series episodes. Organic engagement is with Tweets posted by TV audiences during the same tie period and includes the same interaction types.

With a greater focus on video, social content costs are expected to rise

What do you expect the future trend in content costs will be with respect to your overall marketing budget? (2017)

3%

20%

77%

IncreaseStay the SameDecrease

77%Say the rise in content costs will continue to outpace budget growth

Source: Percolate

And marketers still struggle to bring social out of its silo

How effectively is social media linked to your marketing strategy? (2012-2016)

Source: The CMO Survey

Res

pons

e rat

ing

1

2

3

4

5

6

7

YearFeb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16

3.8 3.8 3.8 3.9 3.8 3.9 3.94.2 4.2

3.9

MobileIt’s no secret that we’re in a mobile-first world – consumers now devote a staggering amount of attention to these devices on a daily basis. Yet the impact on marketing operations is less clear. As brands funnel more budget into mobile-optimized content, they still struggle to measure the impact on their business.

More people around the world — especially in emerging markets — are on mobile

Global mobile penetration, 2016


Mill

ions

10

20

30

40

50

60

70

80

90

100

Developed Markets China LatAm MENA South Asia Sub-Saharan Africa SE Asia Other

Smart Mobile Not Mobile

But emerging market consumers need data prices to be cut by more than 50% in order to be widely affordable

Price reduction needed for data to be affordable for 80% of population, 2016

Ethiopia

Nigeria

DRC

Phillippines

Tanzania

Egypt

China

Vietnam

Thailand

Bangladesh

Brazil

India

Indonesia

Mexico

Billions0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

60%

65%

66%

68%

71%

71%

76%

81%

88%

92%

93%

96%

97%

98%

Source: Strategy&

People are spending more and more time on mobile

The share of time spent online using a mobile device grew from 62% a year ago, 2016

33%

67%

DesktopMobile

Source: IAB

Apps dominate time spent on mobile

Percent of total mobile minutes on browser vs. apps, 2016

87%

13%

BrowserApps

Source: IAB

20% of mobile time is spent on Facebook

Breakdown of total time spend online, 2013-2016

Min

utes

Onl

ine (

Billi

ons)

200

400

600

800

1000

1200

1400

1600

Jun-13 Jun-14 Jun-15 Jun-16

Desktop Mobile App Facebook App Mobile Browser


Mobile gets the most engagement for both short- and mid-form content

Share of time watched by device and video length, 2016

Source: Ooyala

Mill

ions

0

10

20

30

40

50

60

70

80

90

100

PC Phone Tablet CTV

Short-form (0-5 mins) Mid-form (5-20 mins) Long-form (20+ mins)

Yet most marketers don’t think that mobile contributes to their brand’s success

To what degree does mobile marketing contribute to your company’s performance (1=Not at all, 7=Very highly), 2016


Mill

ions

0%

10%

20%

30%

40%

50%

1 2 3 4 5 6 7

February 2016 August 2016

Still, marketers expect to spend more on mobile content in the future

Marketing budget spent on mobile, 2016


Perc

ent o

f mar

ketin

g bud

get

0%

2%

4%

6%

8%

10%

Current Levels Next Three Years

How we buyIn 2017, brands are marketing to a more empowered and informed consumer. Technology has given consumers access to a wealth of information that has radically altered the customer journey.

E-commerce spend has more than doubled in the last 10 years

E-commerce as a percentage of total retail sales USA, 2000-2015


Perc

ent o

f tot

al re

tail

sale

s

2%

4%

6%

8%

10%

12%

Quarters after launch2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

340$Billion in e-commerce spend

Correspondingly, fewer consumers are using cash

Percent of U.S. adults who say they make ___ of their purchases using cash in a typical week, 2015

Source: Pew Research Center, Report 2016

24%Don’t make purchases with cash

24%

52%

24%

All or almost allSomeNone

Online shopping increases impulse buying in some of the most commonly purchased categories

Percent change in impulse purchases online vs. in-store, 2016

Source: Nielsen

Grocery

Household Care

Snacks

Personal Care

Pet Care

Health

Fresh

Frozen

Percent Change in Impulse Purchases Online-10 -8 -6 -3 -1 1 4 6 8

Online reviews contribute significantly to the purchase decision

Percentage of U.S. adults who check online reviews while shopping, 2015


Perc

ent o

f U.S

. Adu

lts

10

20

30

40

50

60

70

80

90

100

U.S. Adults Age 18-29 Age 30-49 Age 50-64 Age 65+

34248417

36

41

4543

42

23

34

4753

40

Always/Almost Always Sometimes Never

New brands are often discovered in the online search process

Percent of smartphone users that have discovered new companies or products when conducting a search on their smartphone, 2016

Source: Google

51%Have discovered new companies or products through search

51%49%

Even in-store shoppers use online resources to make purchasing decisions

Percentage of U.S. adults have used a cell phone inside a physical store to…, 2015


Call or text someone to discuss a purchase

Look up reviews or other product info

Try to find a better price online

Pay for an in-store purchase

Percent0 10 20 30 40 50 60 70 80 90 100

Consumers are more empowered to rely less on loyalty to make purchases

Share of purchases that are loyalty-driven vs. shopping driven, 2017

Source: McKinsey & Company

Mobile carriersAuto insurance

InvestmentsCereal

Personal-care retailTelecom handsets

Small kitchenPrinters

Women’s clothingTablets

Bath accessoriesCruise lines

LaptopsAutos

Financial Services Personal computers

CosmeticsShoe retail

Share of purchases that are loyalty-driven0 10 20 30 40 50 60 70 80 90 100

Loyalty-driven categories

Accordingly, acquiring new customers is a high priority for CMOs

Forecasted customer outcomes in the next 12 months, 2016


Perc

ent o

f res

pond

ents

0%

20%

40%

60%

80%

100%

Increase Acquisition of New Customers

Increase Customer Purchase Volume

Increase Purchase of Related Products and Services

Increase Customer Retention

Increase Entry of New Customers into the Market

Increase Customer Price Per Unit

31%

42%44%50%

63%67%

Channels with the broadest reach continue to be the biggest investment priority

Percentage of marketing content creation costs by media category, 2017

Source: Percolate

Traditional media advertising (TV, print, OOH)

Website and e-commerce

Search advertising

Brand publishing and other content marketing

Social

Digital video

Influencer marketing and sponsorship costs

Programmatic

Percent of respondents0 5 10 15 20 25 30

Overall High Performers*

*Marketers who, relative to their peers, are more in control of rising costs and recognize the ROI from their creative.

Marketing Spend and Strategy

Marketing complexity is increasing exponentially – brands are coping with more markets and channels than ever before. But budgets are not necessarily growing to accommodate marketers’ needs.

Most large companies rely on an international customer base for revenue

Percent of revenue from foreign sources, 2017

Source: Bloomberg

Mill

ions

15

30

45

60

75

90

105

120

135

150

> 1% 1%-25% 25%-50% 50%-75% 75%-100%

Market Value of > $10B Market Value of $10B–$100B Market Value of $100B+

With emerging markets representing some of the highest growth economies…

Forecasted 2016 percent change in GDP

Source: The Economist

IndiaChina

IndonesiaSouth Korea

MexicoAustralia

United StatesCanadaBritain

GermanySouth Africa

JapanFrance

ItalyRussiaBrazil

Percent GDP Growth Forecast-2 -1 0 1 2 3 4 5 6 7 8

Consumers are more and more fluent in global culture

Spending on all trips outside country of residence, 2017

Source: PwC

Billi

ons U

SD

0

200

400

600

800

1,000

1,200

1,400

1995 2000 2005 2010 2015

$1,300

$920$840

$760

$580

International Travel Spend (Billions USD)

Marketing success lies in multichannel content investments

What percent of your marketing budget is allocated to the following categories? (2017)

Source: Percolate

5%9%

9%

10%

12%

10%8%

11%

26%

Traditional media advertising (TV, print, OOH) Search advertising Programmatic Social Website and e-commerce Brand publishing and other content marketingDigital videoInfluencer marketing and sponsorship costsEnvironment

Creative workflows and increased channel and regional complexity are driving up marketing costs

What are the top drivers of content marketing costs? (2017)

Content and creative workflows (design and creative production time)

More expensive new media formats with less defined process

Brief creation, planning, and media evaluation

Cost of content localization (tailoring content based on region, market)

Internal media procurement costs (e.g., photo shoots, stock photogaphy, licensing)

Percent of Respondents0 4 8 12 16 20 24 28 32 36 40

Source: Percolate

Despite this increase in complexity, marketing budgets have remained flat

Marketing budget has a percent of firm budget, 2011-2016


Perc

enta

ge

0

2

4

6

8

10

12

14

YearFeb-11 Aug-12 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16

8.1

1010.4

11.410.6

9.4

10.9 10.910.1

11.412.1

11.3

Mill

ions

0

10

20

30

40

50

60

70

80

90

100

Organic Growth

Cost Reduction

New M&A

Joint Ventures

Collaborate with start-ups

Divest from a business or market

Outsourcing

1715

28

48

41

62

79

18

2728

45

55

68

92

US Global

And cost reduction is a major priority for C-level executives

Percentage of CEOs who are planning these activities in the next 12 months, 2017

Source: PwC

Most marketers expect the discrepancy between budgets and costs to grow


Source: Percolate

77%say the rise in content costs will continue to outpace budget growth

3%

20%

77%

IncreaseStay the sameDecrease

Brands with larger marketing budgets invest a higher percentage in content

Content investment segmented by marketing budget, 2017

Source: Percolate

Cont

ent I

nves

tmen

t as %

of M

arke

ting b

udge

t

0

10

20

30

40

Less than $10M $10-50M $50M- $100M $100M-$1B+

32

28

1919.8

Most marketers expect the discrepancy between budgets and costs to grow


Source: Percolate

86%say content spend is worth the value

14%

86%

Yes No

Mill

ions

0

5

10

15

20

25

30

35

40

45

50

Proved the impact quantitative

Good qulitative sense of impact, not quantitative

Haven't been able to show the impact yet

Short-term Impact Long-term Impact

Yet most brands lack metrics to demonstrate this impact

How companies demonstrate the impact of marketing spending, 2016


This lack of demonstrable impact has correlated with a dip in CMO Tenure

Average CMO tenure by year, 2004-2015

Source: Spencer Stuart

Mon

ths

0

5

10

15

20

25

30

35

40

45

50

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Artificial IntelligenceArtificial Intelligence is changing the way we live and work. To succeed, brands need to understand how these technologies are changing their customers’ lives, and how they can leverage them to improve the way they do business.

AI is a high-growth industry

Global yearly financing in AI, 2011-2016

Source: CB Insights

30

60

90

120

150

Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q2 '15 Q3 '15 Q1 '16

Number of Deals

It’s changing how consumers interact with brands

Millions of voice-first devices, 2014-2017

Source: TechCrunch

% o

f Tot

al R

espo

nden

ts

0

4

8

12

16

20

24

28

32

36

40

2014 2015 2016 2017

33

9

31

And it’s changing how brands operate

How will AI impact your company’s workforce? (Percent of CMOs), 2016

Source: Weber Shandwick

11%

4%

40%

45%AI will require workers with vastly different skillsAI will result in reduction in overall number of jobsAI will result in an increase in the overall number of jobsAI will have no impact on our workforce or number of jobs

Chatbots are an emerging technology for customer experience

Percent of consumers receive content from or interact with a chatbot on a mobile messaging app, 2016

Source: Midia Research

12%

88%

Have interacted with a chatbotHaven't interacted with a chatbot

AI is an untapped opportunity for many marketing organizations

PwC estimates that 45% of all workforce activities could be automated—resulting in over $2 trillion in savings globally, 2017

Source: PwC

45%of workforce activities could be automated

55%

45%Could be automatedCould not be automated

Percolate is The System of Record for Marketing.Our technology helps the world’s largest and fastest-growing brands at every step if the marketing process.

Want to learn more? Contact [email protected] for more information or request a demo today at percolate.com/request-demo

Anisa AullAnisa Aull is on the Marketing team at Percolate.

mailto:[email protected]

http://percolate.com/request-demo

50 Marketing Charts for 2017 Finalread.prclt.com/50 Marketing Charts for 2017.pdfadvertising, mobile, AI, and more that will shape how marketing organizations ... Print Radio TV Internet

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