emarketer webinar: keeping pace with omnichannel consumers

Keeping Pace with

Omnichannel Consumers

June 26, 2014

Noah Elkin

Executive Editor

Sponsored by:

©2014 eMarketer Inc.

Agenda

Key omnichannel marketing storylines

Implications of shifts in consumer behavior

Omnichannel behavior in action

How marketers are meeting the omnichannel

challenge

Key takeaways

Twitter Hashtag – #eMwebinar

Key Omnichannel

Marketing Storylines


The

underlying

theme:

Consumers

are spending

more time and

money online


5 hours 46 minutes

47% of daily media time

$449B

US B2C ecommerce sales

Source: eMarketer, April 2014


Much of retail

ecommerce

spending is

going toward

a few product

categories


$66.4B

Computer & consumer

electronics


$52.0B

Apparel & accessories

$31.6B

Auto & parts

The top three account

for 49% of retail

ecommerce sales


Marketers are spending more money than ever

to reach online consumers

Source: eMarketer, June 2014

$51B

Total spending on

US digital advertising

$28.4B

Direct response

$22.4B

Branding

$0.2B

Mobile messaging


$22.9B

Search

$3.0B

Classifieds/directories

$2.0B

Lead generation

$0.3B

Email

$10.9B

Banner ads

$3.1B

Rich media

$2.4B

Sponsorships

$6.0B

Video


Two-thirds of that spending is concentrated

among a handful of companies

Twitter Hashtag – #eMwebinar Source: eMarketer, June 2014

66%


The driving force: Internet penetration is

at an all-time high


79%Share of US population that will go online

at least once per month in 2014



Consumers are becoming “smart”-er

✻164M

users

✻51% of

population

✻147M users

✻46% of

population

Source: eMarketer, March 2014Twitter Hashtag – #eMwebinar


Advances in mobile device ownership have

pushed us to a new inflection point

Source: eMarketer, March 2014

12 hours 14 minutes

Total time spent/day

with media by US adults

4 hrs 28 min

Time spent/day with TV


5 hrs 46 min

Time spent/day with digital


2 hrs

Time spent/day with

radio/print/other


2 hrs 51 min

Time spent/day with mobile

23% of daily media time 2 hrs 12 min

Time spent/day with PCs


43 min

Time spent/day with other




Mobile’s share of the pie is only doing

one thing: Getting bigger


613%Growth in daily time spent with mobile 2010-2014



Consumers

are focusing

an ever-

increasing

number of

daily actions

around mobile



The majority of their mobile time is

spent using apps

Source: Flurry, April 2014

86%Share of time spent using the mobile

internet in the US, Q1 2014



Gaming and

social

networking

take up the

majority of

mobile app

time

32% 17% 9.5%

Source: Flurry based on comScore/Net Marketshare, April 2014Twitter Hashtag – #eMwebinar

Gaming Facebook Social messaging

8%

Utilities

4%

YouTube

4%

Entertainment

Productivity

1.5%

TwitterNews

4% 3%

Implications of Shifts in

Consumer Behavior


Mobile

devices have

moved to the

center of

consumers’

multiplatform

universe

Connected Consoles

Social Machines

Smartphones Tablets

Connected

cars

Connected

consoles

Connected TVs

Wearable

technology

Laptop PCs

Desktop PCs

Smart homes

Ambient

surfaces



That

effectively

makes mobile

devices the

remote

control for

our lives


Thanks to mobile, “online” is now a persistent,

anywhere state

Of course, “mobile” doesn’t necessarily

mean “on the go”



The notion of

the consumer

is shifting



Lines are

blurring

between

different

consumption

modes


As a result, today’s path to purchase is more of a

winding road, and less of a straight line

Omnichannel Behavior

in Action


Digital

channels are

now the

method of

choice for

both product

research and

purchasing—

among digital

buyers


46%50%

4%

PC Smartphone Tablet

74%

20%

5%

Bigger-ticket, higher-consideration purchases

require more time spent on the desktop

40%

44%

16%

Restaurant Auto Entertainment

Source: xAd/Telmetrics/Nielsen, Jan/June 2014


The preponderance of mobile activity happens at

the start of the purchase process

51%

24%

12%

24%

55%

37%

13%21%

48%

25%

10%

26%

At the start In the middle At the end Throughout theprocess

Stage of research process in which mobile device was used

Restaurants Auto Entertainment

Source: xAd/Telmetrics/Nielsen, Jan/June 2014

Retailers see the research process continuing

in-store: Is this a threat or an opportunity?

40% of US adults showroom, but only a small percentage

actually buy from an online competitor while in-store

Some

retailers are

leveraging

in-store

mobile usage

to improve

customer

experience

Lowe’s is thinking about

how its customers shop

and where to address

their pain points


Mobile devices

are go-to tools

for in-market

auto shoppers

Share of consumers

at location during

last use:

Smartphone – 7%

Tablet – 11%Source: xAd/Telmetrics/Nielsen, Jan/June 2014

How Marketers Are Meeting

the Omnichannel Challenge


Reaching consumers across digital channels is

becoming a key focus for CMOs

Source: Mass Relevance/CMO Council, Feb 2014

24%Share of US Fortune 500 CMOs who see it

as their biggest challenge of 2014



Marketers

need to

consider a

variety of

approaches

to meet the

challenge of

consumers’

cross-channel

behavior



Just don’t assume it’s a matter of one size or one

screen fits all

“Across different formats you have different

expectations. It’s the same story, the same

content. But it has to appear differently in

the way that consumers expect, and that

means different apps, different devices,

different types of day, whatever it is.”

—Eric Korsh, senior vice president of brand

social.content at DigitasLBi



Easier said than

done: Most

retailers are

already

multichannel,

but few have

become fully

omnichannel

Data and systems

integration remain big

hurdles to overcome



Consumer

behavior

shifts already

have started

to affect

media budgets

for brand

marketers and

agencies alike



Expect this shift toward multiscreen campaigns

to gain momentum over the next few years

Share of US marketers

describing integrated

multiscreen campaigns

as “very important”:

2013 — 48%

2016 — 88%

Twitter Hashtag – #eMwebinar Source: Association of National Advertisers (ANA)/Nielsen, Oct 2013


Multiple cross-device targeting solutions are

gaining momentum


ResponsiveDesign

ad

objectives


Knowing how to measure is as important as

knowing where to spend

Key factors in measuring campaigns across multiple

media according to US client-side advertisers include:

– Understanding each medium’s impact (78%)

– Understanding the path to purchase (77%)

– Identifying individuals across channels (54%)

– Comparability of online/offline GRPs

Twitter Hashtag – #eMwebinar Source: Association of National Advertisers (ANA)/Forrester Consulting, May 2014

Key Takeaways


Key takeaways

Consumer time and attention is shifting from traditional to digital

media channels, and within digital from PC to mobile.

One result is the customer experience now extends along a

seamless continuum from screen to screen and from home to work

to store.

Reaching customers across screens and channels needs to become

a higher priority for marketers.

Achieving a synchronous cross-channel experience will require a

variety of approaches, from media to audience targeting to

attribution.


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Around 200 eMarketer reports are published

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with Consumers

Key Digital Trends for 2014

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Q&A Session

Keeping Pace with Omnichannel Consumers

Sponsored by:

You will receive an email tomorrow with a link to

view the deck and webinar recording.

Noah Elkin