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50 Most Important Marketing Charts for 2017
Inside this collectionEach year, we look back and analyze the most critical global trends that are changing the way marketers think and work. We also look ahead and connect these trends to how marketing will evolve in the coming year. This year, we’re highlighting trends in advertising, mobile, AI, and more that will shape how marketing organizations strategize and operate in 2017. These include:
— The growing importance of video content for engagement on social — The decline of loyalty as the gold standard for brand growth — AI and chatbots’ potential to redefine the customer experience — The tensions between the demand for content and the resources available to
marketers
We’ve also included insights from our annual Cost of Creativity study, which examines how and where senior marketers at enterprise brands are investing in content. This year we surveyed 200+ marketing leaders to see how they’re addressing the new challenges of multichannel content marketing and controlling content creation costs.
AdvertisingToday’s consumers are living in world of media overload. With so many choices, consumers’ tolerance for traditional advertising is waning. Brands must find new, innovative ways to capture their customers’ attention.
The biggest advertisers still control the lion’s share of ad revenue
Percentage share of total revenues, 2004-2016
Billi
ons (
USD
)
2
4
6
8
10
12
14
16
18
20
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (HY)
Top 10 Top 25 Remaining
Source: IAB/PwC
10%
74%
16%
Consumers spend less time with print ads than advertisers thinkPe
rcen
t of t
otal
med
ia co
nsum
ptio
n tim
e or a
dver
tisin
g spe
nd
0
4
8
12
16
20
24
28
32
36
40
Print Radio TV Internet Mobile
Time Spent Ad SpendPercent of time spent in media vs. percent of average spend, USA, 2015
Source: Kleiner Perkins Caulfield Buyers
But the media that garner the most time spent, aren’t necessarily the most engaging
Percent of users who pay attention to TV ads, 2017
55%
45%Pay attentionDid not pay attention
45%Pay attention to TV ads
Source: Google
Online formats are leading the pack in capturing and holding consumers’ attention
Percent of users who pay attention to Youtube mobile ads, 2017
17%
83%
Pay attentionDid not pay attention
83%Pay attention to Youtube mobile ads
Source: Google
USA
Inte
rnet
Adv
ertis
ing (
$B)
0
10
20
30
40
50
60
70
80
90
100
2011 2012 2013 2014 2015 2016 2017 2018 2019
93.588.1
75.6
68.1
59.6
49.5
42.8
36.631.7
Desktop
Online ad spend has tripled in the last six years
USA internet advertising, 2011-2019
Source: Business Insider
But ad blocking is on the rise
Global ad blocking users on the Web, 2009-2016
Glo
bal A
d Bl
ocki
ng U
ser (
MM
)
100
200
300
400
500
Years2009 2010 2011 2012 2013 2014 2015 2016
Desktop Mobile
Source: Kleiner Perkins Caulfield Buyers
Ad blocking is linked to the ‘intrusive’ nature of ad content
Attitudes toward ad blocking software, and reasons for using it, 2016
Mill
ions
0
5
10
15
20
25
30
35
40
Ad formats are too intrusive To save data/ improve speed/ protect privacy Would switch to a mobile operator that blocks ads
Mobile Desktop All
Source: Midia Research
The majority of consumers who watch video ads mute them
Percent of users who mute video ads, 2015
19%
81%
MuteDon't mute
81%Mute video ads
Source: Kleiner Perkins Caulfield Buyers
Advertisers are finding other ways to reach their audience
Sponsored Instagram posts per month, 2010-2016
Source: The Economist
Num
ber o
f Pos
ts (1
000s
)
100
200
300
400
Year2010 2011 2012 2013 2014 2015 2016*
Sponsored Posts
And investing in elaborate, high-quality content plays
For Amazon, content is just another way to sell Prime — and its production budget rivals that of full-fledged media companies
2015
Bud
get (
$ bn
)
0
2
3
5
6
8
9
11
12
14
15
Disney NBCU CBS Netflix Turner Amazon HBO
Source: Andreessen Horowitz
Social MediaSocial media has long been a strategic pillar for global brands. But social is evolving – video content is becoming more and more prevalent, coinciding with a rise in production costs and an enterprise-wide struggle to bring social out of its silo.
People spend more time on social media than almost anything else
Lifetime time spent on social compared to other common activities, 2016
Source: Smart Brief
Year
s
0
1
2
3
4
5
6
7
8
9
10
Watching TV Social Media Eating & Drinking Grooming Socializing Doing Laundry
Video-driven platforms like Youtube command the most attention
Average daily time spent on social by platform, 2016
Source: Smart Brief
Min
utes
0
5
10
15
20
25
30
35
40
45
YouTube Facebook Snapchat Instagram
And more brands are taking on video-driven platforms like Snapchat
Percentage of brands using Snapchat by category, 2016
Source: Digiday
Perc
ent o
f br
ands
0
9
18
27
36
45
54
63
72
81
90
Activewear Beauty Fashion Retail Watches/Jewelry Beverages Auto Electronics Travel
January 2016 September 2016
By 2020, video will account for 82% of all consumer Internet traffic
Video traffic as a percentage of global consumer internet traffic, 2015-2020
Source: Cisco
Perc
ent o
f con
sum
er in
tern
et tr
affic
0
20
40
60
80
100
2015 2020
82
70
While active Twitter users continue to plateau…
Monthly active Twitter users, 2015-2016
Source: TechCrunch
Qua
rter
ly A
vera
ge (M
illio
ns)
40
80
120
160
200
240
280
320
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
International United States
Twitter is still a critical channel during live TV events
Organic Tweets* drive the majority of engagement before, during, and after TV airtime, 2016
19%
81%
OrganicOwned
81%of engagement is organic
Source: Nielsen
*Owned engagement includes Retweets, replies, and shares of Tweets from talent, program, and network handles from three hours before through three hours after new/live series episodes. Organic engagement is with Tweets posted by TV audiences during the same tie period and includes the same interaction types.
With a greater focus on video, social content costs are expected to rise
What do you expect the future trend in content costs will be with respect to your overall marketing budget? (2017)
3%
20%
77%
IncreaseStay the SameDecrease
77%Say the rise in content costs will continue to outpace budget growth
Source: Percolate
And marketers still struggle to bring social out of its silo
How effectively is social media linked to your marketing strategy? (2012-2016)
Source: The CMO Survey
Res
pons
e rat
ing
1
2
3
4
5
6
7
YearFeb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16
3.8 3.8 3.8 3.9 3.8 3.9 3.94.2 4.2
3.9
MobileIt’s no secret that we’re in a mobile-first world – consumers now devote a staggering amount of attention to these devices on a daily basis. Yet the impact on marketing operations is less clear. As brands funnel more budget into mobile-optimized content, they still struggle to measure the impact on their business.
More people around the world — especially in emerging markets — are on mobile
Global mobile penetration, 2016
Source: Andreessen Horowitz
Mill
ions
10
20
30
40
50
60
70
80
90
100
Developed Markets China LatAm MENA South Asia Sub-Saharan Africa SE Asia Other
Smart Mobile Not Mobile
But emerging market consumers need data prices to be cut by more than 50% in order to be widely affordable
Price reduction needed for data to be affordable for 80% of population, 2016
Ethiopia
Nigeria
DRC
Phillippines
Tanzania
Egypt
China
Vietnam
Thailand
Bangladesh
Brazil
India
Indonesia
Mexico
Billions0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
60%
65%
66%
68%
71%
71%
76%
81%
88%
92%
93%
96%
97%
98%
Source: Strategy&
People are spending more and more time on mobile
The share of time spent online using a mobile device grew from 62% a year ago, 2016
33%
67%
DesktopMobile
Source: IAB
Apps dominate time spent on mobile
Percent of total mobile minutes on browser vs. apps, 2016
87%
13%
BrowserApps
Source: IAB
20% of mobile time is spent on Facebook
Breakdown of total time spend online, 2013-2016
Min
utes
Onl
ine (
Billi
ons)
200
400
600
800
1000
1200
1400
1600
Jun-13 Jun-14 Jun-15 Jun-16
Desktop Mobile App Facebook App Mobile Browser
Source: Andreessen Horowitz
Mobile gets the most engagement for both short- and mid-form content
Share of time watched by device and video length, 2016
Source: Ooyala
Mill
ions
0
10
20
30
40
50
60
70
80
90
100
PC Phone Tablet CTV
Short-form (0-5 mins) Mid-form (5-20 mins) Long-form (20+ mins)
Yet most marketers don’t think that mobile contributes to their brand’s success
To what degree does mobile marketing contribute to your company’s performance (1=Not at all, 7=Very highly), 2016
Source: The CMO Survey
Mill
ions
0%
10%
20%
30%
40%
50%
1 2 3 4 5 6 7
February 2016 August 2016
Still, marketers expect to spend more on mobile content in the future
Marketing budget spent on mobile, 2016
Source: The CMO Survey
Perc
ent o
f mar
ketin
g bud
get
0%
2%
4%
6%
8%
10%
Current Levels Next Three Years
How we buyIn 2017, brands are marketing to a more empowered and informed consumer. Technology has given consumers access to a wealth of information that has radically altered the customer journey.
E-commerce spend has more than doubled in the last 10 years
E-commerce as a percentage of total retail sales USA, 2000-2015
Source: Kleiner Perkins Caulfield Buyers
Perc
ent o
f tot
al re
tail
sale
s
2%
4%
6%
8%
10%
12%
Quarters after launch2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
340$Billion in e-commerce spend
Correspondingly, fewer consumers are using cash
Percent of U.S. adults who say they make ___ of their purchases using cash in a typical week, 2015
Source: Pew Research Center, Report 2016
24%Don’t make purchases with cash
24%
52%
24%
All or almost allSomeNone
Online shopping increases impulse buying in some of the most commonly purchased categories
Percent change in impulse purchases online vs. in-store, 2016
Source: Nielsen
Grocery
Household Care
Snacks
Personal Care
Pet Care
Health
Fresh
Frozen
Percent Change in Impulse Purchases Online-10 -8 -6 -3 -1 1 4 6 8
Online reviews contribute significantly to the purchase decision
Percentage of U.S. adults who check online reviews while shopping, 2015
Source: Pew Research Center, Report 2016
Perc
ent o
f U.S
. Adu
lts
10
20
30
40
50
60
70
80
90
100
U.S. Adults Age 18-29 Age 30-49 Age 50-64 Age 65+
34248417
36
41
4543
42
23
34
4753
40
Always/Almost Always Sometimes Never
New brands are often discovered in the online search process
Percent of smartphone users that have discovered new companies or products when conducting a search on their smartphone, 2016
Source: Google
51%Have discovered new companies or products through search
51%49%
Even in-store shoppers use online resources to make purchasing decisions
Percentage of U.S. adults have used a cell phone inside a physical store to…, 2015
Source: Pew Research Center, Report 2016
Call or text someone to discuss a purchase
Look up reviews or other product info
Try to find a better price online
Pay for an in-store purchase
Percent0 10 20 30 40 50 60 70 80 90 100
Consumers are more empowered to rely less on loyalty to make purchases
Share of purchases that are loyalty-driven vs. shopping driven, 2017
Source: McKinsey & Company
Mobile carriersAuto insurance
InvestmentsCereal
Personal-care retailTelecom handsets
Small kitchenPrinters
Women’s clothingTablets
Bath accessoriesCruise lines
LaptopsAutos
Financial Services Personal computers
CosmeticsShoe retail
Share of purchases that are loyalty-driven0 10 20 30 40 50 60 70 80 90 100
Loyalty-driven categories
Accordingly, acquiring new customers is a high priority for CMOs
Forecasted customer outcomes in the next 12 months, 2016
Source: The CMO Survey
Perc
ent o
f res
pond
ents
0%
20%
40%
60%
80%
100%
Increase Acquisition of New Customers
Increase Customer Purchase Volume
Increase Purchase of Related Products and Services
Increase Customer Retention
Increase Entry of New Customers into the Market
Increase Customer Price Per Unit
31%
42%44%50%
63%67%
Channels with the broadest reach continue to be the biggest investment priority
Percentage of marketing content creation costs by media category, 2017
Source: Percolate
Traditional media advertising (TV, print, OOH)
Website and e-commerce
Search advertising
Brand publishing and other content marketing
Social
Digital video
Influencer marketing and sponsorship costs
Programmatic
Percent of respondents0 5 10 15 20 25 30
Overall High Performers*
*Marketers who, relative to their peers, are more in control of rising costs and recognize the ROI from their creative.
Marketing Spend and Strategy
Marketing complexity is increasing exponentially – brands are coping with more markets and channels than ever before. But budgets are not necessarily growing to accommodate marketers’ needs.
Most large companies rely on an international customer base for revenue
Percent of revenue from foreign sources, 2017
Source: Bloomberg
Mill
ions
15
30
45
60
75
90
105
120
135
150
> 1% 1%-25% 25%-50% 50%-75% 75%-100%
Market Value of > $10B Market Value of $10B–$100B Market Value of $100B+
With emerging markets representing some of the highest growth economies…
Forecasted 2016 percent change in GDP
Source: The Economist
IndiaChina
IndonesiaSouth Korea
MexicoAustralia
United StatesCanadaBritain
GermanySouth Africa
JapanFrance
ItalyRussiaBrazil
Percent GDP Growth Forecast-2 -1 0 1 2 3 4 5 6 7 8
Consumers are more and more fluent in global culture
Spending on all trips outside country of residence, 2017
Source: PwC
Billi
ons U
SD
0
200
400
600
800
1,000
1,200
1,400
1995 2000 2005 2010 2015
$1,300
$920$840
$760
$580
International Travel Spend (Billions USD)
Marketing success lies in multichannel content investments
What percent of your marketing budget is allocated to the following categories? (2017)
Source: Percolate
5%9%
9%
10%
12%
10%8%
11%
26%
Traditional media advertising (TV, print, OOH) Search advertising Programmatic Social Website and e-commerce Brand publishing and other content marketingDigital videoInfluencer marketing and sponsorship costsEnvironment
Creative workflows and increased channel and regional complexity are driving up marketing costs
What are the top drivers of content marketing costs? (2017)
Content and creative workflows (design and creative production time)
More expensive new media formats with less defined process
Brief creation, planning, and media evaluation
Cost of content localization (tailoring content based on region, market)
Internal media procurement costs (e.g., photo shoots, stock photogaphy, licensing)
Percent of Respondents0 4 8 12 16 20 24 28 32 36 40
Source: Percolate
Despite this increase in complexity, marketing budgets have remained flat
Marketing budget has a percent of firm budget, 2011-2016
Source: The CMO Survey
Perc
enta
ge
0
2
4
6
8
10
12
14
YearFeb-11 Aug-12 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16
8.1
1010.4
11.410.6
9.4
10.9 10.910.1
11.412.1
11.3
Mill
ions
0
10
20
30
40
50
60
70
80
90
100
Organic Growth
Cost Reduction
New M&A
Joint Ventures
Collaborate with start-ups
Divest from a business or market
Outsourcing
1715
28
48
41
62
79
18
2728
45
55
68
92
US Global
And cost reduction is a major priority for C-level executives
Percentage of CEOs who are planning these activities in the next 12 months, 2017
Source: PwC
Most marketers expect the discrepancy between budgets and costs to grow
What do you expect the future trend in content costs will be with respect to your overall marketing budget? (2017)
Source: Percolate
77%say the rise in content costs will continue to outpace budget growth
3%
20%
77%
IncreaseStay the sameDecrease
Brands with larger marketing budgets invest a higher percentage in content
Content investment segmented by marketing budget, 2017
Source: Percolate
Cont
ent I
nves
tmen
t as %
of M
arke
ting b
udge
t
0
10
20
30
40
Less than $10M $10-50M $50M- $100M $100M-$1B+
32
28
1919.8
Most marketers expect the discrepancy between budgets and costs to grow
What do you expect the future trend in content costs will be with respect to your overall marketing budget? (2017)
Source: Percolate
86%say content spend is worth the value
14%
86%
Yes No
Mill
ions
0
5
10
15
20
25
30
35
40
45
50
Proved the impact quantitative
Good qulitative sense of impact, not quantitative
Haven't been able to show the impact yet
Short-term Impact Long-term Impact
Yet most brands lack metrics to demonstrate this impact
How companies demonstrate the impact of marketing spending, 2016
Source: The CMO Survey
This lack of demonstrable impact has correlated with a dip in CMO Tenure
Average CMO tenure by year, 2004-2015
Source: Spencer Stuart
Mon
ths
0
5
10
15
20
25
30
35
40
45
50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Artificial IntelligenceArtificial Intelligence is changing the way we live and work. To succeed, brands need to understand how these technologies are changing their customers’ lives, and how they can leverage them to improve the way they do business.
AI is a high-growth industry
Global yearly financing in AI, 2011-2016
Source: CB Insights
30
60
90
120
150
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 Q2 '15 Q3 '15 Q1 '16
Number of Deals
It’s changing how consumers interact with brands
Millions of voice-first devices, 2014-2017
Source: TechCrunch
% o
f Tot
al R
espo
nden
ts
0
4
8
12
16
20
24
28
32
36
40
2014 2015 2016 2017
33
9
31
And it’s changing how brands operate
How will AI impact your company’s workforce? (Percent of CMOs), 2016
Source: Weber Shandwick
11%
4%
40%
45%AI will require workers with vastly different skillsAI will result in reduction in overall number of jobsAI will result in an increase in the overall number of jobsAI will have no impact on our workforce or number of jobs
Chatbots are an emerging technology for customer experience
Percent of consumers receive content from or interact with a chatbot on a mobile messaging app, 2016
Source: Midia Research
12%
88%
Have interacted with a chatbotHaven't interacted with a chatbot
AI is an untapped opportunity for many marketing organizations
PwC estimates that 45% of all workforce activities could be automated—resulting in over $2 trillion in savings globally, 2017
Source: PwC
45%of workforce activities could be automated
55%
45%Could be automatedCould not be automated
Percolate is The System of Record for Marketing.Our technology helps the world’s largest and fastest-growing brands at every step if the marketing process.
Want to learn more? Contact [email protected] for more information or request a demo today at percolate.com/request-demo
Anisa AullAnisa Aull is on the Marketing team at Percolate.