digital marketing trends & innovations research

Digital Marketing: Trends &

Innovations

Ruth Lewin-Chen | October 2016

The Future of Digital Marketing

• This presentation demonstrates the main trends in digital marketing, and how

companies work to integrate digital into their marketing.

• The presentation is based on the Schieber Research company’s Disruption Prediction

model, which identifies macro trends & growth engines, market trends and adoption,

leading competitors’ actions, and best in class innovators – in order to understand the

future of the industry.

The Digital Marketing Trend Map

Purchase / Monetization

Budgets & ROI

Tactics

VideoInstant

MessagingEmail Search CRM Content

Marketing Trends

Real-Time AI & Bots PersonalizationLocation-Based &

Contextual

Macro Trends & EnablersMobile & Cross

ChannelIoT & Wearables Virtual Reality Big Data

Source: Schieber Research

Macro Trends & Enablers | Cross-Channel

• Digital in 2016 by We Are Social suggests that although

internet, mobile phones and social media experienced

growth between 2015 to 2016 and enjoy high

penetration rates, they still have more room to grow.

Mobile & Cross Channel

IoT & Wearables

Virtual Reality Big Data

http://wearesocial.com/uk/special-reports/digital-in-2016


• Deloitte Global predicts that in

2016, 26% of smartphone users

in developed markets will not

make any traditional phone

calls in a given week.

• These users, called “data

exclusives”, are replacing

traditional voice calls with a

combination of messaging

(including SMS), voice and video

services delivered ‘over the top’.

The “data exclusive” contingent

was 22 percent of all smartphone

users in 2015, in compare to 11

percent in 2012.


IoT & Wearables


http://www2.deloitte.com/global/en/pages/technology-media-and-telecommunications/articles/tmt-pred16-telecomm-rise-of-data-exclusive.html


• As of mid-2015, the most popular

data service was text messaging,

with 60 percent usage, closely

followed by instant messaging,

email and social networks.

• Apps do not only replace private

conversations but also aid in

services such as take-away,

requesting a taxi, booking an

appointment etc.

• The age group with the largest

proportion of data exclusives as of

mid-2015 was 18-24 year-olds, 31

percent of whom (in developed

countries) reported not making

phone calls on a weekly basis.


IoT & Wearables


Source: Deloitte, The rise of the data exclusive

TMT Predictions 2016


• According to Adobe’s Get Personal study, 79 percent of people and 90 percent of millennials

switch devices during a single online activity.

• Two-thirds (66%) of device owners find it frustrating when content is not synchronized across

devices.


IoT & Wearables


http://www.adobe.com/content/dam/Adobe/en/news-room/pdfs/201603/032116AdobeGetPersonalReport-Final.pdf


• The 2016 Digital Marketer report by Experian shows companies plan on running cross-channel campaigns.

• The website channel is the most likely channel to be integrated into these cross-channel campaigns,

followed by social and email.


IoT & Wearables


http://go.experian.com/dm16report

• According to Forrester

Research, mobile searches

generated 30 billion calls to

businesses in 2013, and will

inspire 73 billion more by 2018.


Source: Twitter websiteSource: Google website


IoT & Wearables


http://pages.marchex.com/rs/155-NBF-513/images/Forrester_Brief_Capture_Customers_W.pdf


In 2016, Nestlé partnered with Facebook to find out

whether an untouched TV ad or one optimized for

mobile would make the greater impact on Facebook

for Coffee-Mate Natural Bliss.

The test centered on a 15-second TV spot that the

company altered to better fit the environment, with

changes such as adding text overlays throughout the

ad so that it could be understood with and without the

sound on.

Results:

the mobile optimized version showed a 10-point

increase in ad recall and 7-point increase in product

awareness, compared to only a four-point increase in ad

recall for the original version, and no increase in product

awareness.


IoT & Wearables



In 2016, TOMY UK relaunched its Lamaze infant

plush brand with a year-long multichannel

campaign.

The campaign includes a content partnership with

BabyCentre, a pregnancy and parenting digital

destination, through which the site will feature a series of

sponsored content articles from the site’s contributors,

as well as a video product review and other sponsored

vlog themes from influential vloggers.

The activity also includes a programmatic online display

campaign, which will target gift-givers seeking online

inspiration on what to take to a baby shower.

The push will be supported by social activity via

Lamaze/BabyCentre’s Facebook page targeting new

mums seeking parenting advice.


IoT & Wearables


Macro Trends & Enablers | IoT & Wearables


IoT & Wearables


• The Internet of Things (IoT) connects

everyday objects into web-connected

data rockets.

• IoT is not a new concept, but it has come

a long way in the past few years, and

today brands are pulling together data

from an ever-expanding variety of objects

that individuals continuously adopt.

• Smartwatches, health trackers, home

appliances — these are just a few

examples of objects that can adapt IoT

technology.

Phillips Hue features an automated lights system.

The system can automate the lights completely to

make it seem like a person is at home when on a

vacation.

The lights can switch off automatically when leaving

the house. Watch the video

https://www.youtube.com/watch?v=KpBJS8ezjII

Macro Trends & Enablers | IoT & Wearables

Wearables:

• CCS Insight claims that the wearables market

(include smartwatches, fitness trackers, augmented

and virtual reality headsets and wearable cameras)

is set to treble in size between 2015-2019 and

become worth over $25 billion.

• In volume terms, the market is set to grow from 84

million units in 2015 to 245 million units in 2019.

• Smartwatches are the main source of wearables

revenue, delivering over $9 billion of sales in 2015.

• the explosive growth of fitness trackers will see

sales more than double in volume between 2014

and 2015. Until 2019, these devices will remain the

biggest wearables category by unit sales.


IoT & Wearables


http://www.ccsinsight.com/press/company-news/2332-wearables-market-to-be-worth-25-billion-by-2019-reveals-ccs-insight

Macro Trends & Enablers | VR

• With new hardware available to individuals,

and a growing body of content to consume,

virtual reality has experienced high growth

in recent years.

• It is important to distinguish between virtual

reality (VR) and augmented reality (AR)

since they have different use cases,

technologies and market opportunities: VR

immerses a user in an imagined or

replicated world or simulates presence in

the real world; while AR overlays digital

imagery onto the real world.


IoT & Wearables


Source: Ericsson, “10 Hot Consumer Trends

2016”, December 2015

https://www.ericsson.com/res/docs/2015/consumerlab/ericsson-consumerlab-10-hot-consumer-trends-2016-report.pdf


• According to Advertising Week,

marketers need to make sure that 3

elements exist when using VR:

• 1) Defining the goal in creating a VR

experience (e.g. change brand perception,

raise brand awareness, increase customer

acquisition)

• 2) Defining the audience

• 3) Establishing specific metrics to measure

the ultimate success.


IoT & Wearables


Pokémon Go app, launched on July 5th 2016, is an augmented-

reality based application.

As for September 29th, the app experienced over 500 million

downloads, according to Niantic labs, the app developers.

For many of the app users, Pokemon Go was their first

experience with AR.

The app allows its users to discover and capture Pokémons

around them.

http://www.advertisingweek.com/360/article/-should-virtual-reality-be-a-marketers-new-best-frienda

https://itunes.apple.com/en/app/pokemon-go/id1094591345?mt=8

https://www.nianticlabs.com/blog/googlecloud/


Ford has launched a virtual reality app. The app allows the

consumer to experience various events related to the brand.

"Go behind the scenes, see automotive superstars in action and

get behind the wheel with this 360-degree view into the world of

Ford.“ Watch video

eBay has launched the "world's first" VR shopping app, offering

12,500 products that shoppers can browse, select and add to their

shopping cart just by moving their head. Once the app is

downloaded, it works with headsets like Samsung's Gear VR.

Watch video

IKEA Catalog – the app allows the customers to see how the furniture will look

like in their homes before the purchase, by using Augmented Reality

technology. Watch video


IoT & Wearables


https://www.youtube.com/watch?v=8sla9kSxO8I

https://www.youtube.com/watch?v=yAuiXhJPnr8

https://www.youtube.com/watch?v=xC6t2eEPkPc

Macro Trends & Enablers | Big Data

• Allegedly, personalization and targeted marketing can be carried out efficiently thanks to the “big data”

revolution: the ability to analyze the massive amount of data (structured or unstructured), in order to

gather insights about the customer.

• In “big data”, in addition to collecting the data, marketers ought to know what questions is it meant

to answer, and how to analyze the data accordingly.

• Furthermore, it is important for marketers to balance between data and creativity.


IoT & Wearables


Dr Pepper Snapple group was using big data analysis in order to

optimize the audience for Straight Up Iced Tea.

Through “big data” analysis, the company found out that while they were

trying to target a younger audience for the product, they were in fact

getting to an older audience – including busy mothers.

The data helped the marketers to better understate the need state of the

product’s consumers, consuming the drink as an alternative to energy

drinks.

The insight led to a mothers-centered campaign through influential

bloggers who target mothers.Source: The stitchin’

mommy blog

http://thestitchinmommy.com/2015/03/busy-moms-take-a-break-with-new-snapple-straight-up-teas.html


In China, Unilever Food Solutions used “big data” in order to create

emotional bonds with its key target audience: chefs, for its Knorr brand.

For the 2016 Chinese New Year, the company launched a social marketing

campaign targeted for chefs who cannot go home for the holiday.

The campaign included a WeChat webpage that featured the sounds of

hometown dialects, in addition to spotlighting hometown specialties, covering

more than 34 provinces and municipalities. After selecting their hometown and

hitting the "Visit Home" button, users receive a virtual home-cooked dish,

accompanied by caring voices in their hometown dialect, giving them the

authentic feel of being at a family reunion.

The campaign also offered chefs to send a greeting to their families and

friends.

The “big data” used for the campaign led to insights regarding the online digital

behaviors of chef groups, which enabled to categorize the chefs under different

tags so as to launch the ads more precisely.

As for February 2016, the campaign has increased the brand's followers on

social media, crossing over the one million mark.

View the TV spot


IoT & Wearables


http://v.qq.com/x/page/n01822a2n3j.html?ptag=www_campaignbrief_com


The campaign incorporated a

number of interactive elements

on the WeChat platform. These

include:

• Prize redemption by using a

mobile to scan a code on

selected Knorr product

packaging.

• Interactive webpages on the

UFS WeChat platform allowing

chefs to hit a ‘visit home’ button

to receive virtual home-cooked

dishes accompanied by the

sound of voices of their

hometown dialect.

• The sharing of lucky red

envelopes.

• Fans could also choose an

image of a traditional Spring

Festival dish and add a recorded

message to send to families and

friends.


IoT & Wearables


Marketing Trends | Real-Time

Real-Time AI & Bots Personalization • Real Time marketing and

decisioning is a trending

topic due to Customer

expectation of immediacy.

• According to the 2016

Digital Marketer report by

Experian, many marketers

already incorporate aspects

of real-time marketing into

their current programs.

• The possibilities for real

time data can go far beyond

the simple triggered email if

marketers can align their

data and use advanced

analytics to optimize

decisioning and messaging.

Location Based & Contextual

Marketing Trends | AI & Bots

Real-Time AI & Bots PersonalizationLocation Based &

Contextual

• Until recently, bots - softwares that impersonate a user, often

used by spammers - were perceived by social networks as a

“risk factor” (see Twitter’s 2015 annual report in which Twitter

estimates that 5 percent of active accounts are fake).

• Today, however, social networks and messaging companies

are moving to welcome bots into their networks.

• According to MIT Technology Review, helping companies set

up marketing or customer service bots is seen as a new

revenue source.

• Popular mobile messaging services Kik and Telegram have

both set up “bot shops,” where you can find automated

accounts. Most are very simple, for example providing

horoscopes, or helping you send money to other users. But

some companies are setting up more complex, interactive

bots for marketing purposes.

In 2016, Microsoft created a bot designed to have

automated discussions with Twitter users, mimicking

the language they use.

Less than 24 hours after the bot, @TayandYou, went

online – Microsoft halted posting from the account

and deleted several of its most obscene statements.

The bot, developed by Microsoft’s technology and

research and Bing teams, disputed the existence of

the Holocaust, referred to women and minorities with

unpublishable words and advocated genocide.

Several of the tweets were sent after users

commanded the bot to repeat their own statements,

and the bot dutifully obliged.

https://investor.twitterinc.com/secfiling.cfm?filingID=1564590-16-13646&CIK=1418091

http://twitter.com/TayandYou

Marketing Trends | Personalization


Contextual

• According to Adobe’s Get Personal study, 90% of

consumers are willing to share at least one piece

of information (i.e. age or gender) about

themselves to improve their online experience.

• Consumers are especially open to information

sharing when it results in a tangible benefit, such

as discounts (62% of consumers surveyed) or

when it makes their shopping experience easy

(59%).




Contextual

• Gender is the type

of data consumers

are feeling most

comfortable

sharing, followed by

age purchase

history.

Source: Adobe’s Get Personal study




Contextual

• Consumers also want a personalized experience, including apps (mobile and web) which are

automatically personalized to fit their needs and interests and personalized websites.

• The desire for personalization is especially prominent among millennials and “shopaholics”.





Contextual


• However, consumer

anxiety and media

consumption habits

are cited as barriers

to personalized

marketing.




Contextual

• According to the 2016 Digital Marketer

survey by Experian, 93% of marketers are

personalizing communications to some

degree.

• Basic demographic data, such as first name,

gender or birthday, is the most popular.



Contextual

• Segmenting is a core strategy that is crucial to any marketer’s

success. As not all customers have the same characteristics or

behave in the same manner, it’s increasingly important to employ

different marketing tactics for each distinct group.

• While traditionally segmenting has been thought about quite simply in

regards to age, gender and even geography – as the threshold for data-

driven marketing continues to increase, the definition of segmenting has

shifted as well.

In 2016, Google launched a new mobile application, Google Trips, aimed at

helping consumers plan their vacations and other travels. Suitable for both iOS

and Android, the app pulls in a combination of data from Google Maps and

crowdsourced contributions from other travelers, in order to offer a

personalized travel guide which contains information regarding day trips,

reservations, points of interest, tourist attractions, restaurants and more.

https://play.google.com/store/apps/details?id=com.google.android.apps.travel.onthego

Marketing Trends | Location Based & Contextual


Contextual

• According to the LBMA (Location Based Marketing

association), 77% of marketers agree location based

data is valuable but only 65% think it's accurate.

• Three quarters believe location based marketing is an

important business issue for 2016.

- While current use of location based marketing is

focused on targeting consumers with offers to drive sales

(insert average stat), location based tech will become

much more pervasive in 2016. 66% of global marketers

plan to use the technology in non-marketing areas of

operations, customer services or public safety, for

example.

- All location technologies - beacon, NFC, GPS, and Wi-

Fi - are set to grow by double digits, with 63% of

marketers planning to invest in Wi-Fi, 57% of marketers

planning to invest in GPS, 46% NFC and 41% in

beacons.Source: LBMA Global Location Trends Report,

March 2016

Barneys New York, an American chain of luxury

department store, launched an iBeacon platform

with its mobile app to alert users when new

content is uploaded, as well as help customers

navigate the store. In addition, the chain offers

Barneys’ recommendations for dining and

sightseeing in the Chelsea neighborhood, based

on customers’ location.

http://thelbma.com/research/103/lbma-global-location-trends-report/

Tactics | Video

• According to Cisco, globally, in 2019, consumer internet video traffic

will be 80 percent of all consumer Internet traffic in 2019,

up from 64 percent in 2014.

• Internet video to TV doubled in 2014. Internet video to TV will

continue to grow at a rapid pace, increasing fourfold by 2019.

• Content delivery network traffic will deliver over half of all internet

video traffic by 2019. By 2019, 72 percent of all Internet video traffic

will cross content delivery networks, up from 57 percent in 2014.

Porsche automaker created a

3D ad for its Porsche 911.

The ad, on Fast Company's

April (2016) issue, created for

a group of affluent subscribers,

Come with a small acetate

prism, along with directions for

assembly.

Placing the prism atop a tablet

computer—while it runs a video

from 911hologram.com—brings

shimmering 3-D footage of the

latest Porsche 911 to life.

This advertisement

demonstrates how marketers

can make print more relevant in

the age of video.

http://www.cisco.com/c/en/us/solutions/collateral/service-provider/ip-ngn-ip-next-generation-network/white_paper_c11-481360.html

http://911hologram.com/

Tactics | Instant Messaging

• According to Global Web Index, 36% of

digital consumers are using Facebook

Messenger app for messaging, and over a

third are using WhatsApp.


• According to eMarketer’s report, in 2016, 58.6 million US

consumers are projected to use Snapchat at least once per

month, representing 28.3% of US smartphone users and

18.1% of the US population (Snapchat Advertising: A

Roadmap for US Brand Marketers and Digital Agency

Executives, June 2016).

• Snapchat app is best thought of as a utility for visually

capturing moments that matter and communicating them

creatively in a private or semiprivate way.

• Globally, however, only 7% of global internet users are

Snapchatting, according to Global Web Index.

https://totalaccess.emarketer.com/Login.aspx?ReturnUrl=/Reports/Viewer.aspx?R%3d2001847%26ecid%3dMX1371&R=2001847&ecid=MX1371

http://wearesocial.com/uk/blog/2016/03/the-messaging-app-market-and-its-future-potential


• As of November 2015, Snapchat is closing gap with

Facebook in the social networks’ battle for scale in

video.

• The number of videos viewed on Snapchat every day

has tripled since May 2015 to 6 billion in November

2015 (According to The Financial Times).

• That compares with 8 billion daily video views

announced by Facebook at the same time, which has

doubled from 4 billion in April 2015. Facebook’s figure

includes both desktop and mobile views, while

Snapchat’s audience — though smaller in size overall

— is entirely made up of smartphone users.

• According to Global Web Index report (Q3-Q4 2015),

54% of Snapchat users use the app weekly or less

often, while 82% of WhatsApp users use it daily, often

more than once a day.


In May 2016, Starbucks used Snapchat's

Sponsored Lens ad format that overlays

graphics on the app's ephemeral photos

and videos.

The brand used the Sponsored Lens

feature to promote its revamped loyalty

program and mobile app.

Adding the sponsored graphic to a "snap"

makes users' eyes bigger and then turns

them into a pair of stars - the symbol the

brand uses for its loyalty program - that

then explode.

Tactics | Content

Rolex features detailed information regarding the brand’s

watches on its website.

Customers can learn about every component of the watch.

The brand has a content marketing presence on Instagram as

well, where it offers photos for PR.

https://www.rolex.com/

Tactics | Content

Whole Foods focuses on content marketing in order to

strengthen its position as a healthy living and earth-

conscious eating brand.

The retailer’s website features a “Eating & Cooking” section

with information on “healthy eating”; “recipe collections”;

“special diets”; and “parents & kids”.

In addition, the retailer uses a lot of proactive language (“I

want to learn/do/both” as a search option in its navigation

bar) which makes the audience feel like they have an active

role in the experience.

http://www.wholefoodsmarket.com/

The Future of Digital Marketing

• The importance of integration and synchronization – between devices and channels – is

becoming clearer than ever, as a mean of offering consumers the optimal personalized

experience.

• Big Data will continue to be relevant and marketers should define the questions that it is

meant to answer. The use of Big Data is also driven by consumers’ willingness to give personal

information as long as they see their benefit from it.

• While some consumers are increasing their voice call volumes, many consumer become “data

exclusives” and use other types of communication as an alternative to voice calls.

• Using video is no longer a luxury, whereas in 2019 internet video traffic is expected to be 80%

of all consumer internet traffic.

• The use of VR and AR can help marketers change brand perception / raise awareness when

used right.

• Location-based technologies will see more implementation both for marketing purposes and in

other business areas.

• Millennials reflect most significantly digital trends, but as technology develops – more

demographics are expected to adopt them as well.

Resources

Publisher Title

We Are Social Digital in 2016

Deloitte Global The rise of the data exclusive

Adobe Get Personal

Experian The 2016 Digital Marketer

Forrester Research Brief: Capture Customers With Click-To-Call

Adobe How Millennials Made the Market for Innovative TV Services

Adobe What the Internet of Things (IoT) Means for Cross-Channel Marketing

Adobe Bridging Marketing with the IoT

Deloitte Closing the digital divide: IoT in retail’s transformative potential

CCS Insight Wearables Market to Be Worth $25 Billion by 2019

Ericsson 10 Hot Consumer Trends 2016

Goldman Sachs Profiles in Innovation: Virtual and Augmented Reality

Advertising Week Should Virtual Reality be a Marketer’s New Best Friend?

Campaign Brief Asia Chefs are invited by Isobar and Unilever Food Solutions to have a taste of home this CNY

Twitter 2015 Annual Report

Adobe Not Personalizing? Now, There’s NO Excuse!

LBMA LBMA Global Location Trends Report

Cisco Cisco Visual Networking Index: Forecast and Methodology, 2014-2019

eMarketer Snapchat Advertising: A Roadmap for US Brand Marketers and Digital Agency Executives

Thank You!

The research was conducted by: Ruth Lewin-Chen

Schieber Research | Market Research & Competitive Intelligence

www.researchci.com | [email protected]

More articles and researches on Carmelon Digital

Marketing website:

http://www.carmelon-digital.com

http://www.carmelon-digital.com/