Smart Content Trend Report 2013 by Kiosked

Smart Content:!From discovery to engagement.

Digital marketing has undergone major shifts in recent years. Retail has moved online, which makes an ecommerce strategy necessary for any brand.

Media has become decentralised with new channels created every day. But how can we utilise the trend of decentralised media and apply it to ecommerce?

Marketing needs a change and Smart Content is the answer. Smart Content turns advertising into a service for consumers.

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1. Smart Content is a user-friendly and non-intrusive service on any surface.

2. Smart Content enables measurable brand engagement across all channels.

3. Smart Content is always relevant and contextual.

Smart Content: Anything you see can be yours.!

1 Omni-channel !retailing: where impulse – there sales.

Anything can be a retail showroom and an opportunity to monetise. Brands need to step up and create seamless, optimised and personalised, brand specific customer experiences – no matter the channel.

A retail game-changer, omni-channel proves that it’s no longer about the channel, but it’s all about the brands. Omni-channel makes products available wherever customers are – regardless of whether that location is physical or digital.   It does so by creating consistent experiences; seamlessly combining all retail channels as part of one whole where impulse drives sales. Social media integrates to offer a shopping experience relevant to preferences and location, with customer service, tailored recommendations, and the convenience of buying in the time, place and manner that best suits the customer.

1 Omni-channel !retailing

We’ll see distributed commerce grow out of this trend, creating additional channels to make shopping experiences more instantaneous and seamless. This will increase transactions and the number of people benefiting from those transactions – publishers, content providers, and even consumers alike.   Brands need to make the most of the customer relationship and place this at the forefront of strategy, creating a superior and fluid customer experience to deliver the right content and experiences to consumers.   Additionally, as pre-commerce enables discovery and drives purchasing decisions well before and after the transaction itself, brands will need to not only seek direct communication channels to reach potential customers, but will need to carefully look at making investments in social technologies that will help them connect more optimally with consumers.

+24%

15%-30% Omni-channel shoppers spend up to 15%-30% more than multi-channel shoppers and exhibit strong brand loyalty, often influencing others to

patronise a brand.

As a result of omni-channel initiatives, Burberry posted its markedly

improved sales figures in 2012, with a 24% increase in revenues.

“The retail industry is in the midst of a customer revolution. The collision of the virtual and physical worlds is fundamentally changing consumers’ purchasing behaviours.”

2013 Global Powers of Retail - Deloitte

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Every surface becomes actionable. Shopping is virtual, yet real. Our handhelds become actionable shopping magnifiers, giving consumers immense power at their fingertips. Brands and channels blur – retail is branding and branding is retail.!

2 Blurring the boundaries: everything is a portal.

There’s a revolution afoot in retail; channels are moving online and traditional retail shopping experiences are being augmented by digital innovation and approaches to commerce outside of traditional sales models. With new models cropping up, retail is about to get a lot more interesting.   The physical and the digital are converging and people can now make purchases directly with their mobile devices, allowing them to buy what they want, when they want it, wherever they are. The new retail models cropping up include the distributed commerce model, which moves away from a direct commerce model to a more indirect, agile method to drive sales.

2 Everything is a portal Commerce today is becoming less

about selling via a specific channel and more about reaching consumers where they are, based on context.   Brands need to focus on the experience of the brand itself and take up new commerce models to stay competitive and truly deliver directly to the customer in a contextual fashion. Connecting the physical object with its most probable digital counterpart is a significant opportunity for monetisation.   Brands need to rethink their retail strategy and look at digital innovation beyond mere ecommerce – it’s not just about giving customers the opportunity to shop online, but about allowing customers to engage with brands and make purchases from anywhere, including from the media they consume. Brands need to take partnerships with digital media and online publishers to the centre of their strategy.

$300m “Those brands harnessing the technology to interact with audiences via hidden content have found success in their campaigns, with downloads and engagement rates reflecting consumer enjoyment of the medium.”

Katie McQuater, The Drum

Augmented reality applications deployed by retailers will amount to $300m in global revenue in 2013.

+15% Mobile devices accounted for 11% of

US ecommerce sales last year and that number is predicted to increase

to 15% in 2013.

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The internet is boundary-free and increasingly visual. New technologies are enabling hyper visualisation, where any object in any piece of media is a portal to other media. Hyper visualised content creates a new engagement point for brands.

3 The dawn of the hyper visualisation!age.

A picture can speak a thousand words, in any language. Video and images are on the rise as we continue to share our physical world through the screen. Visuals allow people to engage easily and succinctly and also keep people engaged longer. !!But is it too much of a good thing? The number of images and video will continue to increase, compelling brand marketers to differentiate themselves by providing more innovative visual content, or by delivering it in novel ways. As people across the world express themselves via social channels, broadcasting these interests displays brand affinity that marketers can

3 Hyper visualisation!

respond to with targeted offerings in real time and brands will need to continue to make content shareable and conducive to action.   Editorial content will continue to be supported by powerful visuals, and savvy brands will use visual content as a non-intrusive way of offering consumers a chance to own, purchase, or otherwise participate in the visual images they find appealing. At the same time, brands have the opportunity to use their visual content to speak directly with consumers via visual social media channels.   By focusing on the visual, marketers can engage with consumers on a deeper level by appealing to their emotions and quick response to visual imagery. Smart marketers can capitalise on the combined rise of visual content and social media to engage with consumers on a deeper level, using images as a conduit towards delivering visual content that is relevant, contextual and appealing.

44%

51% Images keep people engaged longer.

Instagram users spend 51% more time daily with the app than Twitter users.

Number of people more likely to engage with brands if they post pictures.

"Visual literacy is on the rise, driven by the proliferation of smartphones and their camera apps. Brands are looking to micro video sites, image-based social media and other channels to create visually engaging marketing initiatives."

Fiona Harkin, Stylus Senior Vice President – Content 76%

Number of Internet users estimated to view online videos on a regular basis

by 2015

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4 Learn and live life at 30 fps.

Immersive, stimulating and always available. The explosion in online video streaming further enables brands to engage with consumers.

By providing visual stimulus on demand, video offers an immersive experience which consumers can use as the key source of product information and discovery. Video is transforming how people explore products and offerings. !!!The popularity of online video continues to grow very quickly. Sites that stream video content on demand, such as Hulu and Netflix, have gained global popularity and have done well to monetise people’s desire for accessing videos online. The digital revolution has ‘freed’ consumers, allowing them to access the content they want, when they want it, across a number of personal devices and channels.

4 Life !at 30 fps! However, industry studies have found

that only about 24% of brands use online video to market to consumers. There is a massive opportunity for marketers to stand out in this space by providing solutions that are fresh and provide viewers with a new way of engaging with the content they view and the aspirational lifestyle they seek to lead. Watching a music video online and love the song? Advertising solutions need to be clever enough to leverage that love and facilitate a purchase so you can own it when the feeling moves you, without having to leave your device.   As online video uptake grows, marketers will seek out further opportunities to monetise, both when it comes to premium video content and user-generated content. Brands will need to employ new solutions to better engage with consumers and to monetise on the emotions and impulses related to consumers’ online video viewing.

+9%

24% Currently, only about 24% of brands use

online video to market to consumers.

The online video industry is expected to reach $28.72 billion in 2017, up from the

$3.79 billion recorded in 2010 – that’s nearly a 9% increase year-on-year.

“Videos are 50 times more likely to rank on the first page of Google results than a standard web page.”

Joost de Valk, CEO, Yoast

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As marketing becomes more granular, content should become a service – interesting, relevant and focussed on building relationships. Singularisation occurs when the emotional bond with the object exceeds its material value.

5 Age of singularisation: when marketing is about your life.

Marketing has become a service. The availability of tools to derive a complex understanding of an individual consumer is fuelling the movement towards more personalised marketing and individual customer experiences. !!!Being smart about content makes marketing personal. Non-intrusive native advertising isn’t enough. Content should be a relevant, useful and interesting service for the users. Brand-to-consumer can no longer survive as a push mechanism. It has to be an intelligent two-way transaction. The ROI it yields is proof – 59% of marketers are committed to

5 Marketing is about your life! offering their customers real-time web

site experiences in 2014, compared to just 19% in 2013. Improved business performance and customer experience are the main drivers for personalising the website experience and a big slice of the personalisation story for brands is customer interaction.   Content will get smarter as it becomes more personal. Personalisation also means giving more freedom of choice to the consumers to choose whether or not to engage. The right content is non-intrusive and a service.   This current landscape provides an opportunity for marketers to take data and give it back to customers. Customers reward transparency, so brands today have the opportunity to deliver content that is personal to the individual. And that is powerful for all involved.

59%

+19% Businesses that personalise web

experiences and measure the impact of online sales see an increase in sales of

19% on average.

Percentage of marketers who will be committed to offering their customers real-

time web site experiences in 2014, compared to just 19% in 2013

“We’re not chasing eyeballs. The goal is to create connections with our customers and earn their loyalty by serving them. The better the service, the stronger the connection.”

Stefan Olander, VP, Digital Sport, Nike – Velocity: The Seven New Laws for a World Gone Digital

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6 Content intelligence and the two-way conversation

The rise of available analytics is disrupting traditional media buying. In a world where brands communicate directly with consumers, the role of media agencies and traditional media buying is changing, with the right content at the !heart of it all. !

Smart content dramatically alters distribution of content, providing that which is relevant and informed, in real-time. !!!Today, a direct link to consumers is changing the role of media and digital agencies. By engaging directly and analysing content preference and associated openness to purchase, brands can more effectively capture consumers’ attention and empower them to select where and when to interact. Advertisers are proving an openness to embrace true content marketing, rather than sticking close to the familiar realms of CPM. In the coming years, consumer attitudes will evolve to expect an ever more personal relationship from brands.

6 Content intelligence !

By proffering their opinions and feedback, consumers expect timely, relevant content in return. Brands will respond by acting more like publishers, creating content and distributing it through their own channels, based on consumer demand and engagement. In the meantime, brands need to be where their customers are, bridging time, place and manner, in real-time. Choosing the right programmes and the right opportunities to engage with consumers has never been more opportune – brands today have the power to communicate directly with consumers and act as their direct retailers, delivering personalised purchasing power to consumers’ fingertips.

$100billion Real-time-bidding is doubling year-on-year,

with video impressions set to top 100 billion in 2013.

“Selling to people who actually want to hear from you is more effective than interrupting strangers who don't.”

Seth Godin, Marketing speaker/writer/blogger, and founder of Yoyodyne and Squidoo 51%

Number of B2B marketers who plan to increase spend in content marketing

over the next 12 months.

86% Number of B2C marketers employing

content marketing.

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7 Gimme! Gimme! Gimme!!

The relationship between brands and consumers has evolved. Why hasn’t measurement? Casting off old models and adopting more relevant, updated models based on quality, not just quantity is the way forward. Direct engagement and new models of measuring !it will lead to new business models.

Today, brands realise that engagement is everything; however, metrics still largely revolve around the quantity and not quality of the engagement. Attribution models, largely based on volume, have been the advertising standard, as have CPC/CPM models and the more recent rise of CPA and affiliate marketing. !!Unchallenged, accepted by brands and the mainstay of media agencies, there has been little movement in advertising measurement for nearly a decade. However, performance doesn’t just mean sales – engagement is increasingly important in a digitally connected, social world and business models need to change accordingly.

7 Gimme!!In a market where consumers are constantly connected and seeking new and delightful experiences, consumer engagement needs to be greater than solely at the stage of purchase. For brands this means that it’s more important to study not just clicks but performance at that consumer engagement level where brand is paramount. This realisation is spurring a move away from click-based business models towards performance-based. These new disruptive business models include engagement-based pricing models. But how can you measure the quality of the engagement? Actionable steps that brands can take include tagging content to make it searchable, creating unique URLs and customising content to generate personalised brand experiences for each consumer. The main idea is that brands need to look at engagement from the beginning of the sales cycle, not just the end. Building brand engagement is a valuable journey, and brands should look to measure and track it throughout all stages of the sales funnel.

41%

43% Number of B2B marketers who don’t !

measure or track content ROI.

Number of B2C marketers who say that inability to measure content marketing is a

significant challenge.

"The rise of omni-channel retailing and data availability has led to changes also in the business models. As brands turn towards measuring brand engagement throughout all channels, a need for new business models is also rising."

Steven Berkovich, Director, Deloitte Consulting LLP

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Contact!Name: Micke Paqvalén Mobile: +358 400 396 394 Email: [email protected] Web: www.kiosked.com

Name: Antonia Degerlund Mobile: +358 40 178 0743 Email: antonia.degerlund @kiosked.com

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References!