search & programmatic in the post-digital world

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Search and Programmatic In The Post-Digital WorldSusan BidelSenior Analyst

March 16, 2017

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What is a post-digital world? Digital vs. non-digital? No longer a distinction.

• 59% use our mobile phones while shopping in a physical store

• 22% stream television programming to watch anywhere on any device

• Korean consumers buy groceries via smartphone from interactive displays on subway station walls

• Multinational retailer embeds images of individuals into digital signage as they pass by

• "Smart" house paint can detect structural deficiencies with nanoscopic sensors

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Search in a Post-Digital World

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Search: Core to marketing strategies

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Search: Core to marketing strategies

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Evolving consumer experiences

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Search has evolved into discovery marketing

›Users have multimedia, multidevice habits

›Marketers diversify digital budget to enable discovery

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Searchers have alternatives

25% 16% 13%

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Google catalogs more than just websites

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Mobile searches now dominate2 billion = >50% of search

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Location, location, location

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Evolve to discovery marketing

Ask yourself: “What do target users seek in terms of subject and intent?”

› Tools: Semantic analysis, linguistic profiles, listening platforms and surveys

›Reveal: Financial services marketers say that searchers looking to check their accounts are really seeking peace of mind

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Evolve to discovery marketing

Ask yourself: “How does my customer find…?”

› Tools: Behavioral data, web analytics, attribution sources, data management platform

›Reveal: HP discovered that audiences at critical stages of acquisition used a variety of discovery tools, including Facebook, Yelp, mobile apps

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Evolve to discovery marketing

Ask yourself: “What should I offer users?”

› Tools: On-site audience-targeting solutions and DSPs

›Reveal: Optimal offer based on user intent and behavior. Rent the Runway (RTR) search ads deliver direct-response offers, like "rent today for $25 dollars or less,“ while on Facebook RTR offers community, encouraging customers to share pictures of themselves wearing RTR dresses.

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Design for mobile users

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Keep location data accurate

Name, address, phone number

15 man hours for one landing page

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Increase content assets

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Build from the ground up

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Programmatic in a Post-Digital World

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Entitled customers don’t have time for bad ads

Source: http://www.pmcgregor.com/multi-tasking-overrated/

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48% avoid ads on websites40% avoid search adsBase: 60,049 US online adults (18+); Source: Forrester’s Consumer Technographics® North American Online Benchmark Survey (Part 1), 2016

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Yet marketers can’t seem to get enough . . .

›Display expected to grow by close to 12% – excluding social

›Mobile representing the lion’s share of growth – 23%

›Video to grow across platforms by almost 18%

›Direct buys to account for close to $8 billion

Source: Forrester Research Online Display Advertising Forecast, 2016 To 2021 (US)

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Omnichannel media buying defined

The practice of sequencing digital advertising across channels so that it is connected, relevant, and consistent with the customer’s stage in his or her life cycle

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Which means moving from this . . .

›Characterized by silos (both teams and budgets)

›Based on a channel specificview of the customer

›Resulting in isolated metrics

›On the plus side: unifiedbrand messaging

Source: The Future Of Omnichannel Media Buying Is Programmatic Forrester report

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To this new way of thinking

Source: The Future Of Omnichannel Media Buying Is Programmatic Forrester report

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Omnichannel media buying aligns the customer journey with the customer life cycle

Source: The Future Of Omnichannel Media Buying Is Programmatic Forrester report

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Digital customer identities for better addressability

Base: 184 NA (US, Canada) B2C marketers; Source: Forrester’s Global Business Technographics Marketing Survey, 2016

58% seek help from marketing services providers to solve this challenge

49% understand cross-device behavior

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Embrace the power of technology

Base: 184 NA (US, Canada) B2C marketers; Source: Forrester’s Global Business Technographics Marketing Survey, 2016

“It would be impossible to coordinate omnichannel communication with our customers without [the appropriate] technology. It’s the technology that allows us to understand our customers in a channel-agnostic way and activate those segments across channels.”— Director of marketing technology, global CPG

21% of marketing budget allocated to technology

17% of technology budget allocated to adtech

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Capitalize on your knowledge of the customer

Source: 95 digital marketers; Source: Forrester’s Q1 2015 Demand-Side Platform Wave™ Online Survey

47% operationalize audience targeting across multiple digital marketing touchpoints — both paid and owned

30+ different types of data being ingested into data management platforms

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Tackling the entitled customer

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Link customer journey and life cycle

›Consumers pursue diverse paths to purchase

›Each experience is a reflection of your brand.

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Discover

›Create your vision

›Anticipate trends

›Build the business case

$41B Programmatic share of online display advertising by 2021

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Case study: Alex And Ani›Align company goals

• Reorganize for greater accountability: sales, marketing and ecommerce under chief digital officer role

• Recruit to fill talent gaps• Assign managers to stay abreast of

innovation

›Prioritize transparency, control, service• Full ad tech stack, including DMP, DSP across channels• Agency to manage display, search, social and affiliate and email marketing

›Collaborate with offline media team

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Act

›Create cross-functional teams

›Rethink your processes

› Find the right tech

Base: 184 NA (US, Canada) B2C marketers; Source: Forrester’s Global Business Technographics Marketing Survey, 2016

68% organize for closer collaboration between marketing and analytics.

40% require greater budget flexibility.

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Optimize

›Revisit measurement

› Identify benchmarks to assess progress

›Determine best practices and pitfalls for continuous improvement

Base: 184 NA (US, Canada) B2C marketers; Source: Forrester’s Global Business Technographics Marketing Survey, 2016

38% use multitouch attribution

77% rely on agencies to buy media programmatically

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Susan Bidel+1 212-857-0751sbidel@forrester.com