digital marketing trends, 2013 & beyond

DIGITAL MARKETING TRENDS2013 & BEYOND

29 AUGUST 2013

NATHALIE MORRISMANAGING DIRECTOR

MATT WESTERMANDIGITAL ENGAGEMENT SPECIALIST

As both the digital landscape and consumer behaviour continue to evolve, we take a look at:

What are the 3 big trends shaping digital marketing in 2013?

1. Smart use of data will drive the success stories of 2013

2. Mobile usage is shaping consumer behavioural change

3. Content (marketing) is king

1. Smart use of data will drive the success stories of 2013

Smart use of data makes our messages relevant to the consumer, giving cut-through in an increasingly cluttered environment

1. Smart use of data will drive the success stories of 2013

In this digital age, almost every customer interaction is captured or measurable in some shape or form.

Data allows us to get the right message at the right time.

As companies adopt smarter use of their data, there will be a shift towards more frequent, highly targeted campaigns to smaller segments of customers.

AMAZON.COM SMART USE OF DATA IN ACTION

AMAZON.COM SMART USE OF DATA IN ACTION

After browsing a specific product category on Amazon.com without making a purchase, a targeted data driven email campaign is initiated.

AMAZON.COM SMART USE OF DATA IN ACTION

After tracking that the first email had been read, and more products subsequently browsed on the website, the customer receives an upsell competition email.

Automated programmes can leverage customer interaction with components of the programme. i.e. if the customer read the email, and clicked on this offer, then it’s highly likely they will be interested in this email.

AMAZON.COM SMART USE OF DATA IN ACTION

This is followed by other emails:• Recommending cameras of a

different brand.• A ‘Deal of the day’ relating to the

same product category.

AMAZON.COM SMART USE OF DATA IN ACTION

The remaining components of the programme included: Most popular similar products Holiday specific offers Product cross-sell package offers

While this programme is contact heavy, it is highly targeted and delivered at a time when there is a high likelihood of purchase.

119%THE CLICK-THROUGH RATE ON TRIGGERED MESSAGES IS 119% HIGHER THAN “BUSINESS AS USUAL” MESSAGES.

AIR NEW ZEALAND (UK)INCREASED RELEVANCE THROUGH PERSONALISATION

“Personality Allowed” campaign consists of pre-flight and post-arrival emails to passengers containing a information specific to the customers itinerary.

Clever use of data combined with dynamic content creates a personalised experience for the customer.

AIR NEW ZEALAND (UK)INCREASED RELEVANCE THROUGH PERSONALISATION

Contains location specific and relevant content for the customer

Weather information for the destination country dynamically pulled into the email

One of the flight staff team working on the actual flight adds a personal touch to the body of the email

The message is delivered to the customer when interest is at its peak

AIR NEW ZEALAND (UK)INCREASED RELEVANCE THROUGH PERSONALISATION

Pre-flight emails:69% open rate38% click rate

Post-arrival emails:62% open rate40% click rate

“Incredibly positive feedback from customers and crew”

1. Smart use of data will drive the success stories of 2013

Across the globe, companies characterize themselves as “data driven”, but most still see big gaps and opportunities in how they utilise data.

Collecting the information is one thing, making effective use of this data is another.

1. Smart use of data will drive the success stories of 2013

If you don’t know where to start, start small and build your efforts over time.

Consider data you already hold, or can easily collect and store

Start targeting and personalising with a few segments to test and learn.

SLEEPYHEAD – BED SELECTOR

TRANSACTIONAL DATA

Another good example of using data to deliver relevance

MICROSOFT XBOX EDM

Microsoft deliver some fun relevant content to members - a customer’s playing history is compared against interesting world-wide usage statistics.

MICROSOFT XBOX EDM

Data driven content can have its pitfalls.

In this example there is a fairly underwhelming statistic.

TARGET (USA)THERE IS SUCH A THING AS TOO GOOD

Every time you shop, you share intimate details about your consumption patterns with retailers.

Target has been collecting and analysing this detailed information for decades.

They are just so good at it now that they know whether you have a baby on the way well before you start buying nappies, and a good guess as to what sex too.

TARGET (USA)HOW THEY DID ITBy researching the purchase habits of customers that had signed up for Target Baby Registers across the country they discovered common purchase patterns at certain stages of pregnancy, e.g:

• A lot of people buy lotion, but they noticed that a lot of woman on the baby register seemed to buy large quantities of unscented lotion around the beginning of their second trimester.

• They also load up on supplements like calcium, magnesium and zinc.

“Take a fictional Target shopper named Jenny Ward, who is 23, lives in Atlanta and in March bought cocoa-butter lotion, a purse large enough to double as a diaper bag, zinc and magnesium supplements and a bright blue rug. There’s, say, an 87 percent chance that she’s pregnant and that her delivery date is sometime in late August.” – Target analyst

Target have since adjusted their marketing offers to include false positives specifically to give customers the illusion that they don’t know exactly what you want.

2. Mobile usage is shaping consumer behaviour change

As the penetration of smartphones continues to grow, consideration of the mobile experience is becoming increasingly important

2. Mobile usage is shaping consumer behavioural change

• The amount of time spent with mobile is growing at 14 times the rate of desktop. Mobile is picked to exceed desktop usage in the coming years.

• It’s not just the time spent on mobile that is important, it is the growing range of activities that consumers are undertaking that are shaping how consumers interact with brands.

• Consumers aren’t just reading emails on their phones, there is a steady rise in search activity, product research, and mobile commerce.

• There is a steady progression towards the “Constantly Connected Consumer”.

In 2012, smartphone penetration in New Zealand was already sitting at 44%.

SMARTPHONE PENETRATION:THE IMPACT ON CONSUMER BEHAVIOUR

Source: Google/Sterling Research/SmithGeiger, July 2012.

71% of NZ smartphone owners have sent or read email on their smartphone in 2012. This was the most popular activity.

SMARTPHONE PENETRATION:THE IMPACT ON CONSUMER BEHAVIOUR

SMARTPHONE PENETRATION:EMAILS READ ON MOBILES

Source: Google/Sterling Research/SmithGeiger, July 2012

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Ubiquity Smartphones Ubiquity Mobile Devices

MOBILE OPTIMISATION BECOMES ESSENTIAL

Figures for searching and browsing online are very close behind email in terms of smartphone activities.

29% of NZ smartphone owners had purchased a product/service online.

SMARTPHONE PENETRATION:THE IMPACT ON CONSUMER BEHAVIOUR

SMARTPHONE PENETRATION:THE IMPACT ON CONSUMER BEHAVIOUR

Source: Google/Sterling Research/SmithGeiger, July 2012Sources: Google/Sterling Research/SmithGeiger, July 2012. eMarketer, Oct 2012

WITH THE ADOPTION OF SMARTPHONES COMES CHANGES IN CONSUMER EXPECTATIONS

Mobile optimisation is becoming the norm, and as consumers expectations change, the penalty for not optimising increases significantly.

According to a 2013 BlueHornet annual research report, 80% of consumers say they will immediately delete an email if it isn’t mobile optimised. This is a 10% increase on 2012.

MOBILE OPTIMISATION:HOLDING CONSUMERS HOSTAGE

WHY DID YOU PERSEVERE?

“Because when I use my mobile I really need what I am looking for – not just looking around!”

“Lack of motivation to search for another site, at the risk of getting the same result.”

“Because I wanted to see the sale items. But often won’t click through to sites on mobile because I know the experience isn’t great.”

MOBILE OPTIMISATION:HOLDING CONSUMERS HOSTAGE

Mobile optimisation is increasingly critical as consumers spend more of their online time on mobiles.

Consumers can easily move on to a site that supports a better user experience.

Currently consumer expectations are low, but this will change quickly.

3. Content (marketing) is king

Consumers are increasingly shutting off the traditional world of marketing, rendering it less effective.

Enter content marketing.

3. Content (marketing) is king

“Your customers don’t care about you, your products, your services…they care about themselves, their wants and their needs. Content marketing is about creating interesting information your customers are passionate about so they actually pay attention to you. “

The key trend that is emerging is companies promoting information instead of the company itself.

3. Content (marketing) is king

The primary goal of these strategies are to drive pre- and post-sales activity.

Google’s ‘Zero Moment of Truth’ research finds that consumers need twice as many sources of information before making a decision than they did just one year ago.

3. Content (marketing) is king

The traditional web and email channels remain the most prominent in terms of delivery of content marketing activities (83%).

Companies are also starting to branch out to other delivery platforms to increase their reach.

With the continual rise of content marketing, this leads to an exponential growth in the number of consumer interactions with a brand…Consumers are beginning to expect this type of direct conversation.

Social and other network channels provide the perfect vehicle to amplify both content reach and ROI.

The key challenge is to create authentic content that is going to deliver real value to consumers.

3. Content (marketing) is king

FOOD FOR THOUGHTFood for thought: McDonald’s Canada challenge traditional thinking

The “Our Food, Your Questions” program invites any Canadian to ask any question whatsoever about McDonald’s food.

Historically companies would actively avoid this type of open ended direct contact with customers…BUT…the rules are changing.

To ask a question, participants must connect with either Twitter or Facebook, providing social visibility and a ripple in the pond effect.

FOOD FOR THOUGHT

FOOD FOR THOUGHT“When you say 100% beef, do you mean the whole cow, the organs, snout, brain, kidneys, etc. or just the plain beef we buy at the grocer?”

“Hi Jani. We wouldn’t call it plain beef, but it sure is beef. We only use meat cut from the shoulder, chuck, brisket, rib eye, loin and round. In fact, our beef supplier is Cargill, a name you might recognize. They’re the biggest supplier of beef in Canada.”

“How much Kangaroo meat is in each hamburger?”

“None, Michael. There is absolutely no kangaroo meat in each hamburger. Not at McDonald's Canada. Not even at McDonald's Australia. Their burgers are just upside down. “

FOOD FOR THOUGHT

The results of this campaign:

20,000 questions answered.

2.3 billion social impressions.

13 million video views.

Z ENERGY: ASK MIKE

1. Smart use of data will drive the success stories of 2013

2. Mobile usage is shaping consumer behavioural change

3. Content (marketing) is king

ABOUT UBIQUITYBRINGING CUSTOMERS CLOSER

Ubiquity helps New Zealand’s leading brands acquire and retain customers, generate leads and increase sales, and grow advocacy using data driven digital marketing.

Whatever your marketing goals, Ubiquity can assist your team to translate strategic objectives into tactical online activities that deliver real, measurable results.

We do this through our Engage digital marketing platform along with a range of related services tailored to your needs.

UBIQUITY ENGAGEDATA-DRIVEN DIGITAL MARKETING

Engage is an integrated marketing suite powered by your customer data:

Support for highly personalised outbound messaging via email, SMS, personalised landing pages and in-app notifications.

Capture data through online surveys, web forms, SMS and social media integration.

Run trigger-based and automated programmes.

Set up multi-channel campaigns and programmes.

Understand and connect with customers like never before with a single customer view.

FOR MORE INFORMATIONCONTACT US

NATHALIE MORRIS, MANAGING DIRECTOR

Phone: 09-303 9374

Mobile: 021-224 5333

Email: nathalie@ubiquity.co.nz

MATT WESTERMAN, DIGITAL ENGAGEMENT SPECIALIST

Phone: 09-303 9377

Mobile: 027-878 2997

Email: matt@ubiquity.co.nz