5 Key Trends To Master In 2010

What To Focus On In 2010 5 Key Interactive Trends

2009 was a landmark year for the interactive space. The downturn in the economy forced companies to rethink how they do “business.” We saw companies from every industry take risks and try something new. Candidly, many of us got a lot smarter by watching the mistakes of other companies. But, even with those mistakes to learn from, the industry didnʼt advance the ball as far as it should have. 2010 represents a fresh slate. Questions about broadband penetration, mobile adoption, the ROI of social media and the demographic makeup of the web have been answered. With so many technologies, platforms and audiences maturing 2010 is like a perfect storm of opportunity. But, with so much opportunity, what do we focus on? The following pages hope to answer that question and prepare us for the type of thinking weʼll need to bring to the table every day in 2010.

First, Letʼs Set The Record Straight On Whoʼs Out There

5 Key Interactive Trends

1. Where You Are Will Be More Important Than Who You Are 2. We Will Finally See Mobile Rule 3. Increased Consumer Expectations Will Drive Social Media Adoption By Companies 4. Online Video Will Grow Up And Become A Dominant Marketing And Distribution Vehicle 5. The Development And Syndication Of Products, Tools, Apps And

Where You Are Will Be More Important Than Who You Are

Fast Facts Online local advertising (excluding mobile) is currently a $14 billion industry and poised to grow to over $15 billion in 2010. - Borrell Associates “Over the next ﬁve years, Piper Jaffray predicts a compound annual growth rate (CAGR) of 9% for local online ad dollars, compared with 4% for national Internet spending.” foursquare is poised to grow like twitter did. This year alone, itʼs grown 900%. Loopt, itʼs primary competitor already has over 1 million members. Facebook becomes more local by the day.

• Location based social network • Acts more like a game • Every time you visit a location, you “check- in” using foursquare • Checking-in earns members points • Checking-in also notiﬁes your friends that youʼre at that location • Companies can provide offers to users based on their location • For example, my checking in at a Rite Aid, could prompt a message to visit a retailer to purchase a lottery scratch ticket

We Will Finally See Mobile Rule

Fast Facts There are currently over 276 million wireless users in the United States. In 2009 they sent over 1 trillion text messages. - CTIA “While data usage is growing most rapidly among smartphone users...increased mobile media consumption is leading Web publishers to create more user-friendly versions of their mobile sites, which in turn is lifting mobile Web access among non-smartphone users." - Gartner Analyst, Andrew Frank Total U.S. spend on mobile marketing will grow from $1.7 billion this year to $2.16 billion in 2010. - Mobile Marketing Association

UPS Integrates Mobile For Success • In the United States, UPS has particularly • The campaign is ongoing and will proceed high-volume seasonal and part-time hiring through the holidays, but from Aug. 1 to Oct. needs during its peak delivery time-frame 3 the initiative received 8,054 mobile opt-ins. between the Thanksgiving to Christmas holiday period. • “People are more engaged when theyʼre texting you than they might be with just • Trackability, ROI and effectiveness of reading a print ad, then ﬁnding a computer or previous campaigns were poor or otherwise a fax machine. Those response methods lacking. With a miniscule budget they turned imposed a disconnect. Thereʼs an immediacy to mobile and the web to drive results. with SMS campaigns. Within seconds, they had a response to their initial text message and were able to advance to the next level. • Print and outdoor ads jobs, offered the That grows candidate relationships much choice of going to the UPS hiring Web site at www.UPSjobs.com/print or texting a short faster than the old way” code “UPSjobs” to 95495.

Increased Consumer Expectations Will Drive Social Media Adoption By Companies

Fast Facts Dell has generated $6.5 million in incremental sales directly through twitter during the past 2 years. - Ofﬁcial Dell Blog 81% of CMOs will increase their spending on social media marketing next year and more often tie that spend to their revenue expectations and overall business goals. - The CMO Club 37% of companies site “We donʼt know enough about social media to know where to begin” as their reason for not investing in social media. - Russel Herder Research

From Social Media To Social Business • Itʼs about a cultural change and shift in business • From warranty questions to product availability to philosophy. Itʼs also about continually testing and product pricing and even product selection, the learning. Twelpforce are their 24/7 and 365 to answer questions • To compliment several of their other social initiatives • To roll out the program, Best Buy invested millions into like Best Buy Exchange, Best Buy launched a national advertising campaign that spanned TV, print, Twelpforce FSI and online • Twelpforce is a ﬁrst of itʼs kind customer service • The genius of this is that Twelpforce requires no initiative that empowers EVERY employee to be a investment in infrastructure. Twitter is the customer service agent focused on helping customers infrastructural back end that enables Best Buy employees to connect with customers. • “Twelpforce is obviously an experiment. A very public one. And with this publicity comes a certain amount of risk. In my view, it is a risk well worth taking for many reasons.” - Barry Judge, Best Buy CMO

Online Video Will Grow Up And Become A Dominant Marketing And Distribution Vehicle

Fast Facts The average online video viewer watches 9.8 hours of video per month. - comScore The Simpsons got a $60 CPM on hulu. Nearly 50% more than the average CPM on Foxʼs traditional prime time television slot. - Bloomberg Online video consumption is no longer just short clips on youTube. 35% of adult internet users have watched television shows and movies online. - Pew Internet & American Life

• Coca-Cola Co.ʻs Nestea brand saw a sales decline of 4.8 percent versus a year ago • To reconnect with their core demographic, Millenials age 18 - 34 they turned to a massive online video initiative • Nestea brand is the sole sponsor of a series, titled “CTRL” being released this past summer • CTRL released episodes exclusively through online video services including gaming consoles • Nestea wasnʼt part of the credits; it was part of the story

The Development And Syndication Of Products, Tools, Apps And Services Will Explode

Fast Facts Kindle sales are now 35% of book sales when Kindle editions are available. Amazing when you consider the $399 cost of a Kindle. - Jeff Bezos, Amazon After only 3 months of being in market, the Pizza Hut iPhone app has generated $1 million in incremental sales. - Bernard Acoca, Pizza Hut Nike Plus now has over 2 million members and is credited with driving their running shoe category from 48% in 2006 to 61% in 2008. - Nike and AdAge

• Launched in December 2008 • “iFood Assistant” costs $0.99 • A top 100 app & #2 in the lifestyle category • Ties into a consumerʼs KraftFoods.com account, making the app personalized • Offers recipes, cooking tips, shopping lists and offers • “When a marketer creates something that's actually useful, consumers don't really see it as straight marketing, or they're at least willing to accept advertising as the payoff.”

Youʼve seen how some companies found success in 2009. But, for every one of those companies, thereʼs hundreds that either caught on too late, still havenʼt invested, or failed to make “it” work. Data and insights are important. But, ultimately itʼs our ability to apply the data and insights that will separate us from the competition and drive meaningful measurable results for your business. Mastering these 5 trends will place us ahead of the curve in 2010. Letʼs kickoff 2010 the right way, keep the accelerator down and never let up.

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5 Key Trends To Master In 2010

by Adam Kmiec

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