The 50 Most Important Marketing Charts of 2016
The 50 Most Important Marketing Charts of 2016
Every year, we look back and analyze the biggest trends that shaped marketing. We also look ahead to how they’ll impact marketers in the coming
year. Last year was the year of mobile, as messaging apps exploded and started
to converge with social networks.
Another standout trend was ad blocking, as software became easily accessible
to both desktop and mobile browsers. For marketers and publishers, this
means a readiness to innovate is key. And speaking of innovation, new media
formats gained popularity in new apps like Snapchat, and were experimented
by stalwart platforms like Twitter and Facebook. So in a world where brands
can get their message across on a multitude of channels, how much does it cost to create this content?
We undertook our largest study to date, surveying over 300 CMOs and senior
marketers about the costs of producing content — and the results show that
content costs are on the rise across industries. This year, we’ve included new
categories on creative workflows, customer experience, and streaming media
– three things that are of increasing importance to marketers. Jump right in.
Inside this collection
For brands to succeed today, they need to communicate effectively with their mobile consumer. These charts illuminate mobile web behavior and content consumption patterns.
Mobile
60%
40%Total Mobile MinutesTotal Computer Minutes
65%
35%
Nearly two-thirds of all internet time is spent on mobile
December 2014 December 2015
Percentage of total Internet minutes — Monthly minutes spent online, Dec 2014 vs. Dec 2015
Source: IAB Digital Trend Usage Report, 2015
Mobile will account for half of e-commerce by 2020US Mobile Commerce Forecast, 2015-2020
Source: Mobile Commerce Daily, Forrester Research Mobile and Tablet Commerce Forecast, 2015-2020
2015 (F) 2016 (F) 2017 (F) 2018 (F) 2019 (F) 2020 (F)
$79$69
$60$51
$43$35
$173$156$138$119
$99$80
Tablet Smartphone
F = Forecast
Share of mobile commerce by 2020
49%
0
60
120
180
240
300
2015 2016 2020
58.3
31.4
25
63.7
36.327.7 162.2
79.658.5
APAC EMEA Americas
111.2
147.3
284.3
Asia Pacific will become the world’s largest app market…
Source:App Annie
App downloads by region, in billions
0
60
120
180
240
300
2015 2016 2020
194.1
98.373.2
90.24938
China Rest of World
…led by China, with 51.9% of global app downloadsApp downloads by region, in billions
Source:App Annie
111.2
147.3
284.3
Apps, not browsers, get the lion’s share of mobile usage Mobile Time Spent In Apps Vs. Browser; Daily Minutes Per User Per Day, US
Source: Company Filings, News and Company Announcements, GlobalWebIndex
Min
utes
30
60
90
120
150
180
210
240
270
300
Q1 2013 Q2 2014 Q2 2015
Mobile Browser Mobile Apps
Which brands win on messaging apps?
Snacks
Restaurants
E-Retailers
Movies
TV Shows
Millions0 10 20 30 40 50 60 70 80 90 100
35-49 18-34 Total
Source: MEC
Brand categories messaging app users are most likely to interact with
87% of millennials say they’re never without their smartphones
Millions0 10 20 30 40 50 60 70 80 90 100
My smartphone never leaves my side, night or day
When I wake up, the first thing I do is reach for my smartphone
I spend more than two hours every day using my smartphone
In the next five years, I believe everything will be done on mobile devices
Source: Mary Meeker’s 2015 Internet Trend Reports
The second screen is alive and well Percent who strongly agree with the following statements:
Source: Nielsen Global Digital Landscape Survey
Global Average
Asia-Pacific
Europe
Middle East/Africa
Latin America
North America
Percent of respondents who strongly agree0 15 30 45 60 75
"I browse the internet while watching video programming""I like to keep up with shows so I can join the conversation on social media""I watch live video programming content more if it has a social media tie-in"
Shar
e of
Pla
ys (P
erce
nt)
0
10
20
30
40
50
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
4%6% 7% 7% 8%
10%13%
15%17%
22%
27%30%
38%
42%44% 45% 46%
Source: Ooyala
Percentage of Video Plays on Mobile Devices, Global
Watching mobile video has never been more popular
CMOs think mobile marketing can perform better “Rate the performance of your company’s mobile marketing activities (1 = Poor, 7 = Excellent)”
Source: The CMO Survey by the Fuqua School of Business at Duke University
1
2
3
4
5
Customer acquisition Customer engagement Customer retention Delivering your band message Sales Profits
2.742.903.443.14
3.462.92 2.642.74
3.473.12
3.562.89
August 2015 February 2016
There’s huge scope for mobile banking in emerging marketsEmerging Market Penetration: Bank Accounts vs. Mobile Phones, 2014-2015
Source: World Bank, Communication Authority of Kenya, TRAI
0%
14%
29%
43%
57%
71%
86%
100%
Kenya India
80%81%
53%
75%
Bank Account Penetration Mobile Penetration
But for many, data is too expensive relative to income Cost of 500MB of data against hourly minimum wage in USD
Source: Jana
5
10
15
20
25
Mexico South Africa Brazil Nigeria Philippines Turkey India Indonesia
$0.43$0.2$1.29$1.18
$0.46$1.04$1.22
$0.56
$2.39$3.38
$9.98
$11.76$12.88
$13.77
$16.47
$23.41
Cost of 500MB of data Hourly minimum wage (USD)
A multitude of new media formats lets brands amplify their reach, but they need to be prepared to be innovative in order to combat ad blocking and the costliness of new media formats.
Digital Media
Current Levels Over Next 12 Months In Next 5 Years
10.6%
13.2%
20.9%
% of Marketing Budget
Social media spend will increase to 20% of the marketing budget Social media spending as percent of marketing budgets
Source:The CMO Survey 2016
Brands outsource up to 22% of social media to agenciesPercentage of company’s social media activities performed by outside agencies
Source:The CMO Survey 2016
Feb-14 Feb-15 Aug-15 Feb-16
17.4%
18.9%
21.7%
20%
% Outside Agencies
Creative alert: Brands are using more emojis in their contentTop global brands that use emojis in posts
Source: SocialBakers
Sess
ions
0
50
100
150
200
250
300
350
Facebook Twitter
Q4 2014 Q4 2015
Note: Top 500 brands based on followers
Twitter’s user growth continues to stall Twitter Monthly Active Users (Global)
Source:Twitter
Mill
ions
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Monthly Active Users (Global) QoQ Growth
$305$307$304$302$288$284$271
$255$241$232$218$204$185
320MMonthly Active Users at Present
Ad blocking is on the rise, and it isn’t going anywhereGlobal Monthly Ad Blocking Software Users (desktop)
Source: PageFair and Adobe | 2015 Ad Blocking Report
Glo
bal M
onth
ly A
ctiv
e U
sers
Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015
21M30M
39M
54M
121M
181M
198MMonthly Active Users
Billi
on U
SD
0
10
20
30
40
50
2013 2014 2015 2016
The global cost of ad blocking will almost double this yearGlobal Economic Cost of Blocking Ads
PageFair and Adobe | 2015 Ad Blocking Report
90%Increase in ad blocking cost from 2015-16
But ad revenue is still growing — along with subscribers New York Times Digital Revenue (Global)
Source: The New York Times
Mill
ions
$20
$40
$60
$80
$100
$120
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
Advertising Subscriptions
For most news websites, over half of mobile data is spent on adsTime to load editorial content versus advertising content for major news publications
Seco
nds
to lo
ad
0
3
6
9
12
15
18
21
24
27
30
The Daily Beast
Chicago Tribune
New York Post
Salon
CNN
Los Angeles Times
Vox
The Atlantic
Vice
The Huffington postThe New York Times
Buzzfeed
Seconds to load advertising content Seconds to load editorial content
Source: The New York Times, The Cost of Mobile Ads on 50 News Websites | October 2015
Facebook and Pandora are the most used on mobileMonthly mobile minutes (Billions), Dec 2015 (to any site or app via mobile device)
Source: IAB Digital Usage Trend Report Full Year 2015
Billi
ons
of M
inut
es
210
Facebook Pandora Google Apple Spotify Yahoo Sites Amazon Sites Netflix Snapchat Twitter Microsoft Sites6.87.210.911.113.719.419.8
74.692.295
200.7
984.3BTotal monthly mobile minutes
What drives people to block ads?Why consumers tried using ad blockers (Percentage of respondents)
Found out ad blockers exist
Got a virus from clicking on an ad
Got tired of low quality ads
A friend recommended an ad blocker
Don't like seeing behavioral targeted ads
0 4 8 11 15 19 23 26 30
Source: IAB
Visitors to social networking sites are more likely to block adsGlobal share of ad blocking rates by site category (Q2 2015)
Source: PageFair and Adobe | 2015 Ad Blocking Report
0
6
12
18
24
30
Gaming
Socia
l Netw
orking
Tech/
Intern
et
Educ
ation
Sport
s/Re
creati
on
Finan
cial S
ervice
s
Resta
urants
/Dini
ng/F
ood
Charita
ble O
rganiz
ation
s
Govern
ment/L
egal
User experience is now on marketers’ radar, thanks to ad blocking Almost two-third of marketers surveyed said UX is a high priority
Source: Celtra
We don't think about itIt's somewhat importantIt's high priorityIt's our highest priority
X
22%
48%
26%
4%
9%
24%
21%
46% Content blockingSubscription modelsPaywallsUsing an ad block vendor
X
Most publishers will turn to content blocking Publishers’ preferred response to ad blocking
Source: Celtra
Cord-cutting isn't just a buzzword anymore: people are choosing on-demand streaming services over cable subscriptions, leaving advertisers wondering how to fill the gap.
Streaming Media
“Cord-cutting” is on the rise as cable subscriptions decline Cable subscribers, by service
Source: Leichman Research Group
Mill
ions
40
42
44
46
48
50
52
54
56
58
60
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
TV Broadband Internet
Spotify is still the leading streaming music servicePaying subscribers in Q1 2016
Source: Spotify, Apple
Mill
ions
0
10
20
30
40
Spotify Apple Music
11M
30M
Podcasts are increasing in popularityShare of U.S. population that listened to podcasts in the last month
Source: Edison Research
Perc
ent o
f U.S
. Pop
ulat
ion
0%
5%
10%
15%
20%
25%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Netflix is aggressively adding contentNetflix cost of content streaming
Source: Company Filings, Statiista
Billi
ons
(USD
)
0
4
8
12
2010 2011 2012 2013 2014 2015
Higher income households stream more video On-demand streaming and high-speed internet penetration are income-related
Source: Nielsen
18%
15%
35%
32% 29%
19% 31%
21%4%5%
23%
68%
<$40k $40k-$75k $75k-$100k $100k+
Have broadband, but don’t on-demand stream video
Stream on-demand video Don’t have broadband
Short-form video streaming is on the declineShare of video content type streamed globally per year
Source: Conviva
Mill
ions
20%
40%
60%
80%
100%
2014 2015
Live Movie Episodic Short-form
Marketing budgets may be going up, but are those dollars being invested wisely? Knowledge management and process inefficiency can drive down high production costs.
Marketing Spend and Strategy
Search Ads
Social
Traditional 22%12%
Display Ads
13%
Brand Publishing14%
Programmatic
10%
Website & Ecommerce
15%
Advertising48%
14%
Search Ads
Social
Traditional 22%12%
Display Ads
13%
Brand Publishing14%
Programmatic
10%
Website & Ecommerce
15%
Advertising48%
14%
How does the average advertising budget break down?
Source: Percolate
Marketing represents an increasing percent of firm budgetsMarketing budget as percentage of firm budget
Source:The CMO Survey 2016
7
9
11
13
Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16
8.1%
10%
10.4%
11.4%
10.6%
9.4%
10.9% 10.9%
10.1%
11.4%
12.1%
% Marketing Budget
Marketing budgets forecasted to increase 6.9%Percent change in marketing budgets in next 12 months
Source:The CMO Survey 2016
Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-150.5%
1.1%
5.9%
9.2%
6.7%
9.1%
8.1%
6.4%6.1%
4.3%
6.7%
5.1%
8.7%
5.5%
6.9%
Change in Marketing Spending
New media formats are driving growing production costsTop 5 Responses: “What are the top drivers of non-working spend for your team? (Select up to three.)”
Source: Percolate
Emergence of more expensive media formats
Brief creation, planning, and media evaluation
Employee talent costs
Agency costs
Lack of defined processfor newer media
Percent of respondents0 5 10 15 20 25 30 35 40 45
B2C brands expect the most growth in marketing costsNon-working spend growth trends (n < 12 excluded)
Source: Percolate
Perc
ent o
f bud
get c
onsu
med
by
non-
wor
king
exp
ense
s
0
10
20
30
40
50
60
70
80
90
100
Banking Consumer-Packaged Goods IT & Technology Manufacturing Retail Professional Services
37%
57%51%60%
78%
25%
51%62%61%65%
89%
42%
Non-working spend has increased in the past year Non-working spend will increase in the next year
Production cost growth isn’t under control
Source: Percolate
How have non-working spend levels grown in the last year?
2%10%
26%
40%
22%
Increased signifcantly IncreasedStayed about the same DecreasedDecreased significantly
Have seen growth in the past year
62%
4%13%
33% 40%
11%
Will increase significantly Will increaseWill stay about the same Will decreaseWill decrease significantly
Expect non-working to grow in the next year
51%
How do you expect non-working spend levels to grow in the next year?
And here’s how much goes toward ad production
Source: Percolate
Ave
rage
sha
re (b
y m
edia
cat
egor
y)
20
40
60
80
100
Traditional media Brand publishing Social Website & E-commerce Programmatic Display ads Search ads
38%38%40%40%42%43%50%
Share of non-working spend Share of working spend
How Non-Working Spend Consumes Budgets Across Industries (n < 12 excluded)
Ad production costs don’t have an industry bias
Source: Percolate
Perc
ent o
f bud
get c
onsu
med
by
non-
wor
king
exp
ense
s
0
5
10
15
20
25
30
35
40
45
50
Banking Consumer-Packaged Goods IT & Technology Manufacturing Retail Professional Services
24%19%16%17%
23%14%
42%46%
32%37%
41%38%
Advertising Budget Marketing Budget
Production costs don’t have a revenue bias, eitherHow Non-Working Spend Consumes Budgets (By Revenue)
Source: Percolate
Perc
ent o
f bud
get c
onsu
med
by
non-
wor
king
exp
ense
s
0
5
10
15
20
25
30
35
40
45
Less than $50M $50M to $249M $250M to $999M $1B to $4.99B $5B or More
25%21%19%17%
23%
42%42%40%34%
40%
Advertising Budget Marketing Budget
Perc
ent o
f bud
get c
onsu
med
by
non-
wor
king
exp
ense
s
0
5
10
15
20
25
30
35
40
45
50
Less than $10M $10M to $50M $51M to $100M $101M to $500M Over $500M
27%22%20%18%17%
46%43%38%36%37%
Advertising Budget Marketing Budget
…But they grow with a larger marketing budgetHow Non-Working Spend Consumes Budgets (By Annual Marketing Budget)
Source: Percolate
How low can production costs get?Non-working spend as a share of advertising budget vs. marketing budget
Source: Percolate
Perc
ent o
f bud
get c
onsu
med
by
non-
wor
king
exp
ense
s
0
4
8
12
16
20
24
28
32
36
40
Non-working as a share of advertising budget Non-working as a share of marketing budget
8%
24%20%
40%
Average High Performers*
*High performers are respondents who disagreed that non-working spend is too high, reported no growth in non-working spend levels in the past year, and said they were confident in their ability to control non-working spend.
Marketing has a knowledge management problem“Rate your company on each marketing knowledge metric during the last 12 months (1 = Poor, 5 = Excellent)”
Source: The 2016 CMO Survey by the Fuqua School of Business at Duke University. Note: Question asked irregularly.
Ave
rage
Rat
ing
1
2
3
4
5
February 2011 Agust 2013 August 2014 February 2016
Sharing valuable marketing knowledge Developing and using customer insights
0
10
20
30
40
50
Brand Marketers' Expectations Agency Marketers' Expectations
4%
16%
28%30%
Significant Shift Moderate Shift
Is a shift to in-house creative agencies imminent? How marketers expect assignments to shift to in-house agencies
Source: RSW/US
Globally, venture capitalists are optimistic about IoT startups, as recent funding increases show. But enterprises are still cautious about IoT for data security reasons.
Smart Tech and the Internet of Things
IoT startup funding has risen rapidly in the last five years IoT Global Quarterly Financing History, Q1’10- Q3’15
Source: CB Insights
$ Bi
llion
s
Q1'10 Q2'10 Q3'10 Q4'10 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 Q3'15
Deals Investment ($M)
$434
$626
$428
$602$548$547
$284
$350
$277
$479
$219$199
$363
$301
$99
$268$262$244
$165$184
$270
$163$151
34
63
44
6565
54
37
64
42
54
29
38
30
43
2628
33
26
212125
232222 2325
21 21
26
33
2826
43
30
38
29
54
42
64
37
54
65 65
44
63
34
Enterprises are concerned about IoT data security and privacyTop Enterprise IoT Security Concerns (Global)
Source: Varmetric Data Threat Report, 2016
Protecting sensitive data generated by IoT Devices
Privacy Violations
Identifying which data is sensitive
Priveleged user access to IoT data and devices
Attacks on devices may impact critical conditions
0 5 10 15 20 25 30 35 40
n = 1100
Not so fast: Wearables will depend on connectivity through 2020Wearable devices with and without connectivity (millions)
Source: Cisco
0
140
280
420
560
700
2015 2020
41
3.2
601
97
Dependent wearables Wearables with connectivity
In the age of the hyperconnected consumer, brands have to design customer experiences that ensure they meet customer expectations and provide a seamless experience on all channels.
Customer Experience
Customer service: People still reach for the phone first Customer Service Channel US Customers Use First for Urgent Issues (2015)
Source:North Ridge Group
Social media Email Live chat Phone
77%
8%8%2%
Facebook is the go-to channel for customer complaintsSocial media platform US consumers are most likely to use for customer service (2015)
Source NM Incite
Facebook Twitter YouTube
29%
12%13%
Pricing, not advertising, influences purchase the most Most important factors that influence US consumers’ purchase decisions (2014)
Source Accenture
Sales/ competitive pricing Superior products Superior customer experience Loyalty programs Relevant promotions Engaging advertising campaign Celebrity endorsement
61%
3%6%26%31%35%36%
Percolate is The System of Record for Marketing. Our technology helps the world's largest and fastest-growing
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Want to learn more?
Contact [email protected] for more information
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Mihika Barua Mihika Barua is a member of Percolate’s Integrated
Marketing team. Her focus areas are content
marketing and social media management.