outlook: 2013 marketing, advertising & social media trends

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January 18, 2013

Rebecca LiebIndustry Analyst

@lieblink

2013 Outlook: Marketing, Advertising, and Social Trends

© 2012 Altimeter Group

Major Digital Marketing Trends for 20132

1. Real-time marketing and listening platforms

2. Convergence of paid, owned, and earned media

3. Content marketing and content strategy

4. Native advertising

5. Growth of visual information

6. Online and offline channel convergence

7. Mobile marketing

8. Big data

9. Gamification

10. Eradication of internal digital practice silos

© 2012 Altimeter Group© 2012 Altimeter Group

Real-time Marketing and Listening Platforms


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Real-time marketing is immediate reaction.

It’s the marketing of relevancy, achieved by listening and

anticipation of consumer need.


Real-time marketing delivers what marketers want most and turbo charges other efforts

Source: GolinHarris, The Promises and Pitfalls of Real-Time Marketing. http://golinharris.com/#!/insights/real-time-marketing-research/


Two types of always-on marketing

1. Event driven• Public events• Brand events• Breaking news

2. Customer driven• Customer service• Crisis management


Foursquare promotion contributes to record “Small Business Saturday” sales for AMEX

An estimated 103 million Americans shopped at small businesses on 2011’s Small

Business Saturday. American Express saw a 23% increase

in transactions from its inaugural event.


Toyota feels backlash after Twitter spamming its Toyota Camry promo during Super Bowl


Wells Fargo’s Twitter account is now its most effective and efficient customer service tool

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@Ask_WellsFargo has contributed to an increase in positive brand sentiment

by 38%.


Eurocontrol responds to environmental crisis via Facebook, LinkedIn & Twitter

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Eurocontrol used #euva and #ashtag to monitor and

respond to conversations about 2010’s Icelandic

volcanic ash cloud.


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Twitter improves search (and ad serving) with real-time human computation

?


12

Customers have opinions – you must listen and act, and respond


Social listening, monitoring, and measurement are foundations for agility

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Brands must:

1. Have systems and processes in place to listen, measure, and respond.

2. Let conversation instruct creative design and strategy.

3. Use insights to be proactive.

4. Allows insights to facilitate personalization and resonance.



An always-on organization starts with man power and a structured staff

Work toward deploying a 24/7 response model Dedicate resources to “Control rooms” and “War

rooms” to monitor social conversation Arm teams with training and tools for success


Source: Expion, Disclosure: An Altimeter client

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Applebee’s supports 7K employees in 1K locations to monitor & respond in social

GOVERNANCESHARING

REAL TIME

EFFICIENCY


Dell uses Salesforce Radian6 to power its

social media monitoring of more than 22K daily topic

posts on the social Web.

Dell’s Social Media Listening Command Center monitors conversation, sentiment


Gatorade monitors social conversations from a dedicated room

Gatorade’s Social Media Command Center is a

“war room for monitoring the brand in real-time across social media.”


Convergence of Paid, Owned, and Earned Media


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Paid Owned Earned

Defining Paid, Owned, and Earned Media

Requires media buy Owned or controlled but does not require media buy

User-generated content surrounding brand


Now, let’s define Converged Media20

Two or more channels of paid, earned, and owned media. Consistent storyline, look, and feel. All channels work in concert, enabling brands to reach

customers throughout the customer journey



Creating branded ‘surround sound’: how media types influence and enable each other

21

PAID

OWNED

EARNED

Drives

vol

ume

to b

rand

Drives volume

Provides platformPr

ovid

es p

latfo

rm

Instructs where to amplify

Informs innovation, creative


What does this look like on Facebook?22


What does this look like on Twitter?23


Glidden Paint employs a wide palette of channels, converging media for a streamlined brand experience

24



Enterprise tech company pays the influencers to ignite earned, drive traffic back to owned

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1.1m Social interactions

128 Pieces of content created by

influencers 24 Influencers commissioned

to create content

The company paid influencers to share content

Across their networks

9,314 Average actions per

piece of content



Enterprise tech company achieves converged media harmony with quality content

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While investing in influencers and media partners to amplify, the

investment was just as much in the content itself– valuable,

sharable, and on-brand.


Brands that do not integrate paid, owned and earned media types are at a disadvantage

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Fragmented messaging, inconsistent branding

Redundant efforts, no communication or collaboration

Departments competing for budget

Low customer engagement/ advocacy

Convergence begins to occur in traditional media


Altimeter identifies 11 criteria to successful converged media deployment

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Execution Workflow: Coordinating Paid, Owned, and Earned as one orchestration

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But, remember, workflows are unique to the organization

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© 2012 Altimeter Group Photo courtesy of valkyrieh116 under Creative Commons License at Flickr - http://www.flickr.com/photos/valkyrieh116/758542578/

Content Marketing and Content Strategy


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Content marketing is a pull strategy; it’s the marketing of attraction.

It’s being there when consumers need you, and seek you out with relevant, educational, helpful, compelling, engaging and sometimes

entertaining information.


Content Marketing Builds Stronger Brands

Awareness

Trust

Purchase Intent

Word-of-mouth

Customer Engagement

Lower Acquisition Costs


Content Marketing Changes the Game

Earned and owned media

Long-term initiatives vs. short-term campaigns

New skills as publishers, producers and community managers

Evolution from advertisers to storytellers


Altimeter’s Content Marketing Maturity Model


Standing organizations need someone to champion content

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Every organization needs a torchbearer that will shift

the company’s focus to more meaningful

marketing communication.


Iron Mountain focuses content on personas

Iron Mountain’s email marketing before (left) and after (right) the company developed marketing personas and refocused its

content to better align with consumer pain points vs. product attributes.


Eloqua expands its content marketing with creation of VP Content Marketing role

Joe Chernov launched Eloqua’s corporate blog and later used it to

promote the company’s other content—made trackable by

requiring users to provide contact information. This enabled Chernov to measure effectiveness, directly

attributing $2.5M in revenue to four free guides in 2010.

Lieb, Rebecca. Content Marketing: Think like a Publisher – How to Use Content to Market Online and in Social Media. Indianapolis: Que, 2012.


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Salesforce leverages video to share product demos, webinars, events, and more

Salesforce’s 2,600 YouTube videos

receive upward of 11K views per day. The

company has valued its product demo views

(av. 2 minutes per view) as equal to

customers receiving service from 66 hyper-

efficient sales representatives.


Red Bull recognized as content empire, adds e-commerce site to media strategy


41

Questions?


Image by Madhava Enros used with Attribution as directed by Creative Commons http://www.flickr.com/photos/menros/84195844/

Native Advertising


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Known also as custom content, sponsored content, branded content, content marketing, collaborative

content, or even advertorials,

“native advertising” is placing brand-generated content onto the

pages of real publishing properties.


Native advertising on news sites44

Boston Globe

Gawker Media

The Atlantic


45

Remington targets customers during the purchase consideration cycle with native ads

1

2

3


46

Samsung amplifies popular earned media as ad units to influence additional consumers


47

NYT’s Ricochet platform helps brands deliver advertising paired with select articles


Who benefits from native advertising?48

Although often unpaid, content contributors “sell” their companies, professional services, domain expertise, and personal brands in return for exposure

Publishers charge basic CPM or CPC rates for sponsored content, or may calculate costs based on page positioning or feature

Consumers begin to regard sponsored content as editorial content, breaking down the credibility wall between advertising and editorial


Growth of Visual Information


Where is content confidence held?

Base: 56 marketers; Size of bubbles above reflect marketers' intention to increase/decrease use of that content type over the foreseeable future. * Based on question: What are the most effective types of content you’ve used to promote your brand? ** Based on question: Which type(s) of content do you plan to phase out, use less of, or

have found ineffective?; Source: Altimeter Group


Types of visual information51

Photos (Pinterest, Flickr)

Videos (YouTube, Vimeo)

Infographics

Charts, diagrams, and other data visualizations


Social scrapbooking platform Pinterest has 25 million monthly active users

Source: https://social.ogilvy.com/unlock-the-data-of-desire-on-pinterest-infographic/

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Pinterest users spend twice as much as Twitter, Facebook referrals

Source: http://www.mediabistro.com/alltwitter/pinterest-online-sales_b22824

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Reports also suggest that buyers referred from Pinterest are 10% more likely to buy than those who arrive from other social sites, and 70% more likely than those from websites.


54

Etsy drives sales by directing shoppers from Pinterest to mobile e-commerce site


BH&G Real Estate’s visual presence contributes to company doubling in size

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BHGRE network now includes some 7,000 sales associates in

over 203 offices in 21 states, nearly doubling in size from 2010 to 2012. Through creative content marketing

initiatives, BHGRE captures the connected customer through

multiple channels, across multiple devices.


Corning’s Internal Video Becomes Most-Watched Corporate Video on YouTube

“It breaks all the rules when you think about it. It’s six minutes long;

it’s not funny, it doesn’t have celebrities in it, it’s not intended to be sent around to your friends.”

– Doremus, Corning spokesperson


K-SWISS Uses Humor to Attract Audiences and Sales in Release of Online Video Series

K-SWISS’ Kenny Powers videos earned millions of views online, resulted in a

1256% increase in Facebook fans, and contributed to a

250% increase in online sales.


High-quality infographics are 30x more likely to be read than text articles

Source: http://ansonalex.com/infographics/infographic-effectiveness-statistics-infographic/

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Mint garners social traffic and links with compelling visual data

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Mint.com infographics consistently generated 30X

more traffic than a comparable text-based

article. Creating compelling portable content creates engagement on the web.


Recommendations60

Always ask: “What’s the visual hook?”

Make images/video accessible, available, shareable (social newsroom, social image accounts e.g. Flickr, Pinterest)

Capture video and images

Digital asset management (DAM) with tagged visuals


Online and Offline Channel Convergence


The New York Giants bring social events to owned venues, generating earned buzz

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NYG were the first pro sports team to integrate live tweets in their offline events (stadium, TV) and online (poll, Q&A, e-commerce tie-in). Tying in social content and voting with

real-time events generated an increase in e-commerce sales, a 127% increase in Twitter followers, and huge brand

amplification and awareness for related campaigns.


ClearChannel integrates online and offline channels to ‘make the audience the media’

63

Converging media through digital billboards, gesture recognition, and social media

interaction, ClearChannel combines offline media with online to drive attention,

engagement, (advertiser interest), and a summer-long sweepstakes.


OxygenLive chats increase tune-in 92%64

Live chats with talent from the show and other fans via twitter led to a 92%

increase in tune-in among 18- to 49-year-olds

compared to the previous season of Bad Girls Club.


Home Depot designs QR code campaign to aid the considered purchase— online and offline

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Home Depot’s campaign spans online and offline media, in-store signage, local

events, and more. Once activated, shoppers can access

how-to videos, product demos, relevant accessories, buying guides, project

guides, even make a purchase.


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Questions?

© 2012 Altimeter Group Photo courtesy of jhaymesisvip under Creative Commons License at Flickr - http://www.flickr.com/photos/jhaymesisvip/6497720753/

Mobile Marketing


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Global Mobile Traffic Growing Rapidly to 13% of Internet Traffic


69

Impressive 29% of U.S. adults own a tablet or e-reader, up from 2% less than 3 years ago


70

Mobiles + Tablets = 24% of online shopping on Black Friday in 2012 (vs. 6% 2 years ago)


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Step 1: Understand mobile

Altimeter identified three phases of mobile maturity.

For companies starting out in mobile, the world is a blank slate.


1. Determine the ideal impact the strategy for mobile and social will have on the business and on the customer – what problem do they need to solve?

2. What’s the next step to get there? This will depend on how far along the maturity curve your strategy is today.

3. Reaching maturity is likely to involve an established partner, we’ve moved past the days of home-growing mobile.

Step 1: Recommendations72


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Step 2: Target the right devices

Drive loyalty, product discovery and online

purchases.

Engage strategies can provide product information, post-purchase support, or help to provide a presence for

retailers and brands with a fully online presence. The focus is on bringing shoppers closer to the brand to drive

interaction, not just spend.


1. Today’s opportunity market is to target the tablet buyer. Throw out the old playbook. You must integrate time, location, rich media and social interaction.

2. Tie in social, but more than just the ‘Like’ button. Have features integrate in a deeper manner.

3. The future of marketing is sophisticated lifestyle and workstyle content. Some marketers will become profit centers beyond profit centers.

Step 2: Recommendations74


H&R Block app answers tax FAQs75

The H&R Block app provides answers to frequently asked questions and a glossary for tax terms. It also estimates expected returns based

on basic information.


Mass Mutual taps into larger audience with their ‘Future Moves’ app, converting fun into action

76

MassMutual’s “Future Moves” app is brand-free until the reveal

of their financial future, where the brand connection is clear.


77

Partners Like CatalogSpree Illustrate The Value Of Rich Media Experiences

The startup is driving tablet traffic to retailer sites by providing a richer experience,

social integration and campaign features for major brands looking

to capture mobile buyers.


Spending-conscious ways to save money via the Mint app

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Users who sign up for Mint’s lifestyle-oriented app learn of deals and promotions that can help them save money.


1. Who is your competition – brand side?

2. Who is your competition - agency side?

3. What will mobile advertising look like?

4. Who supports development efforts –

internally/externally?

5. What is “publishing” on an app?

6. Who's your audience?

7. How will you measure success?

8. How will mobile apps fit into your cross-media

strategy?

Mobile Marketing and Development Checklist

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Image by Pieter Musterd used with Attribution as directed by Creative Commons http://www.flickr.com/photos/piet_musterd/1858568495

Big Data


The world creates 2.5 quintillion bytes of new data – every day according to IBM.

Source: http://www-01.ibm.com/software/data/bigdata/

1 Quintillion = 1,000,000,000,000,000,000


Big Data as a lone focus has not been prioritized

• Less than 1/5 of businesses surveyed have a formal Big Data strategy• Just 31% have a wide array of business users accessing information• A mere 20% plan to grow their dedicated analytics teams in the coming year

Source: InformationWeek’s 6 Big Data Lies Report, Q3 2012


Data is nothing new to the organization; it just lives in a deep, dark place where new and creative ideas trump information that can lead to insights and relevance.

Something new and connected is needed internally to effectively engage externally.


84

Data analytics is a tool to

increase revenue, maximize profitability,

and increase customer satisfaction.


What can we do with big data?85

Analyze conversations and surface sentiment

Identify product opportunities

Avert PR crises

Understand and anticipate evolving customer needs and expectations


1. The Customer is king

2. Customer experience is key

3. Revenue generation will prevail over cost efficiencies as the primary IT budget

4. Digital marketing expenditure is growing, adoption rising

5. Digital marketing is highly measurable, ROI can be tracked, measured, proven

6. Marketing technology builds relationships

What’s really driving this shift?


Digital Breadcrumbs: Through sensors, social streams, and everyday

behavior, you now have the ability to know your customers

better than they know themselves.


Williams-Sonoma suspected different customers were responding to campaigns and channels differently

Williams-Sonoma knew certain customers responded better to digital messaging than to catalogs, but to act on that knowledge effectively, they needed a way to

analyze campaign effects on individuals – not just segments.


Williams-Sonoma uses this data to serve up “prescriptions” for how to feel individual shoppers messages– and how to reallocate budget accordingly

• Mobile messages• Banner ads• Online search campaigns• In-store promotions• Loyalty cards• Web analytics• Catalogs• Email blasts• Print ads, Billboard• Telemarketing• TV ads

• Credit scores• Demographics• Other augmented data

sources

• Seasonal buying habits• Customer buying

histories

• Challenges of managing marketing

• Disparate systems, brands, teams

First, they took inventory of all channels, campaigns, tools, internal and external challenges


Williams-Sonoma partnered with UpStream Software to design marketing algorithms based on data crunching techniques used in medical research

By drawing data from dozens of distinct sources, conducting statistical modeling to analyze the efficacy of multiple marketing campaigns over time for a single

customer, like treatments over time for a patient, Williams-Sonoma now uses algorithms to assess which factors in a customer’s lifetime lead to a sale.

Source: Upstream


As a result, Williams-Sonoma optimizes customer experience and marketing spend

“We’ve seen our ability to target with the catalog improve using these techniques on a scale that we haven’t seen with any sort of small technical improvement. This is a qualitative improvement in our ability to target the right type of customer with the right type of messaging, and it’s not something that we’ve had available up to now.”

-Mohan Namboodiri, VP of Customer Analytics for Williams-Sonoma

• Decreased costs on direct marketing, sending less catalogs to unresponsive customers; allocated more funds to e-marketing (display ads, email campaigns, etc.)

• UpStream integration scores integrated data to instantly drive the right campaigns to individual consumers at a massive scale, processing over 50 million scores per day per client

• Enables Williams-Sonoma to have a single dashboard of all campaign touches: interactions with retail stores, online behaviors, and purchasing.


Gamification


93

Gamification is the integration of game mechanics or game dynamics into a website, service,

community, campaign, or application

to drive participation and engagement.


Gamification is often applied to traditionally non-gaming contexts or industries

94

Marketers turn inbound marketing into a game to achieve a desired marketing or business goal:

• Boost customer loyalty

• Increase sales amount

• Encourage new and repeat purchases

• Inspire advocacy and word-of-mouth

Organizations may also use gamification internally to boost sales, customer service, or inspire other friendly competition for reward


In return, customers who “play” and compete are rewarded

95

Free products or samples

Free or discounted services

Other monetary compensation

Badges and other online or in-application achievements

Recognition publicly or within their social networks


The Red Cross gamifies blood donations96

The Red Cross partnered with Best Buy and Nascar to gamify

blood donations. Every time someone gives blood, they’re eligible for points that can be

redeemed for prizes.


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Virtual call center operator LiveOps uses gamification to improve performance of 20,000 independent contractor call agents

LiveOps gives out virtual badges and points for tasks

such as keeping calls brief and closing sales. Leaderboards let

the agents compare their achievements.


SAP uses gamification to drive content creation and engagement

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Points are awarded to those who contribute, and one can

receive additional points when community members recognize

the value of an individual’s contributions by liking, rating,

sharing, etc.


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Questions?


100

Eradication of Internal Digital Practice Silos


Brands must overcome cultural silos and align teams and departments

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Ownership/governance

Communication

Collaboration/creative design

Campaign goals

Budget



Intel among the first to reorganize … merging social media team with global media team

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“Why does this make sense? I found we were having similar conversations across teams. For the past several years, I have been encouraging every opportunity for them to work as one, sharing information and insights — driving cross media opportunities with our partners and thinking about a new world where the idea of “paid” or transactional media dissolves.”


Intel achieves converged media harmony103

45,794 social actions


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Brand

Agency

VendorAgency

Vendor

Brands cannot deploy converged media alone. They must coordinate agency and vendor

partners. Our research found that stakeholders are often resistant to cross-collaboration.

Brands must also incentivize agencies and vendors to work together


Recap: Major Digital Marketing Trends for 2013105

1. Real-time marketing and listening platforms

2. Convergence of paid, owned, and earned media

3. Content marketing and content strategy

4. Native advertising

5. Growth of visual information

6. Online and offline channel convergence

7. Mobile marketing

8. Big data

9. Gamification

10. Eradication of internal digital practice silos


Rebecca [email protected]

rebeccalieb.com/blog

Twitter: lieblink

THANK YOU

Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.


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outlook: 2013 marketing, advertising & social media trends

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