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The great consumer digital migration

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The following whitepaper from IBM which throws more light on how digital marketers are leveraging technological tools to engage better with today’s digitally empowered customers.

The following whitepaper from IBM which throws more light on how digital marketers are leveraging technological tools to engage better with today’s digitally empowered customers.

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  • 1. A Digital Marketing Depot Ebook The Great Consumer Digital Migration: Gaining the Marketing Power to Soar
  • 2. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 1 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar The Great Consumer Digital Migration T he facts of urban migration in America are fairly clear-cut. In 1790, only 5 percent of U.S. residents lived in cities. By 1850, that percentage had increased to 15 percent. And, in the latest 2010 U.S. Census, more than 80 percent of Americans made their home in urban areas. Pretty simple concept, right? Our great grandparents farmed. Our grandparents moved to the city. Today, we can barely operate without a Starbucks on every corner and an airport a cab ride away. At first glance, the digital consumer migration appears equally clear. As of 1995, only about one in 10 adults in the U.S. were going online. By August 2011, the U.S. Internet population included 78 percent of adults and 95 percent of teenagers.
  • 3. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 3 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar The growth of Internet adoption is overwhelmingly evident. Where it gets more complex is exactly where consumers are spending their time, attention and money. In April 2012 , The Pew Internet & American Life Project reported that 88 percent of American adults had a mobile phone, 57 percent have a laptop, 19 percent own an e-book reader, and 19 percent have a tablet computer; about six in ten adults (63 percent) go online wirelessly with one of those devices. Fragmented Media Options Emerge Media options have become increasingly fragmented. For marketers, this is both a challenge and an opportunity. Ten years ago, a marketer only needed to be concerned with AOL, Yahoo, MSN and a handful of lifestyle publishers. Now the digital media landscape includes thousands of options, ranging from Google to network buys, and promoted Tweets to display ads on Yelp’s mobile app. This expansion of digital devices and channels represents a new migration in customer interactions that marketers are only now starting to realize, analyze and act upon. Website or mobile? iPhone, Android, iPad or Kindle? Facebook, Twitter or Google+? Determining the flight patterns of this new migration is more complex than ever. To make crafting strategic direction more complicated, each week, new and more customer-driven outlets spring to life. In the current digital media environment, users have the ability not only to consume media as they choose, but to create, influence and promote that very content. Social Media Puts Power in Hands of Consumers Social media has become an organic and consumer-powered engagement, where one-way, marketer-to-customer communication has given way to multi-touch and consumer-owned relationships. For example, a consumer can upload a photo of today’s outfit and tag all of her favorite brands – from shoes to makeup. He can use a mobile app to determine which retailers have a sale going on in his exact location, or can ask for instant feedback from friends as he’s deciding between two new armchairs. Bottom line: The consumer owns the relationship, drives the media and dictates the increasingly fragmented purchase path. Although the abundance of channels and the ceding of communication control to consumers can be overwhelming for marketers, these shifts signify a huge opportunity to reach, communicate with, convert and create loyal customers out of these hyper-engaged consumers. Flying high with mobile devices and tablets The pace of mobile and tablet adoption is moving so rapidly that today’s statistic seems like yesterday’s news. From the suddenly-quiet toddler at the next restaurant table to the woman intently reading while getting her white hair perfectly coiffed at the salon, tablets are now ubiquitous in our daily lives. In the fourth quarter of 2012 worldwide tablet shipments reached a record total of 52.5 million units, according to IDC, a 75.3 percent year over year market growth. This expansion of digital devices and channels represents a new migration in customer interactions that marketers are only now starting to realize, analyze and act upon. From the suddenly-quiet toddler at the next restaurant table to the woman intently reading while getting her white hair perfectly coiffed at the salon, tablets are now ubiquitous in our daily lives.
  • 4. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 4 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar Even more omnipresent in our lives: the mobile phone. In June 2012, mobile phone penetration in the U.S. eclipsed 100 percent, with CTIA reporting 101 percent of active phones per person in the country. Translation: There are more mobile phones in use than there are people in the United States. Tablets and mobile: Birds of a Different Feather Although research studies often group mobile phones and tablets into one category called “mobile,” the reality of marketing on these devices is as similar as a television ad and a billboard. For today’s consumer, mobile is for shopping, and tablets are for buying. Mobile today is relatively more often used on-the-go for store locators, price checking and shopping lists, while tablet owners are much more inclined to use those devices to actually make purchases. Add to that the “wearable tech” offerings that are beginning to manifest, like Google Glass and the impending iWatch from Apple, and the range of shopping and buying devices will truly defy place and time. The New Flight Patterns of Today’s Consumer Beyond the now overarching ownership of tablets and mobile phones, the time spent with these devices in conjunction with desktop, and how they are used to entertain, research and purchase is rapidly shifting. Each year for the past five have been heralded as the “year of mobile,” when marketers would embrace the changing landscape and engage on a new level through apps, mobile search and mobile optimization. The truth is, this has been happening in an organic and responsive way. Marketers who are not heeding their customers’ desire for mobile accessibility and mobile commerce are losing market share to those who are serving their customers’ needs regardless of platform, and more importantly, across platforms. Time spent in the U.S. on mobile apps has increased 120 percent in the past year, with 129.4 billion minutes being dedicated to apps and 28.1 billion spent on mobile web, according to Nielsens’ 2012 State of the Media Social Media Report It is becoming ever more apparent that consumers are not just embracing the “third screen,” but utilizing it simultaneously with primary screens. Brand marketers should take note that 45 percent of U.S. users are using their tablet device to shop online while watching television. Consumers are being entertained and are shopping at the same time, on multiple screens. Sixty-five percent use social media to learn more about brands, products and services. (Nielsen 2012) Brand marketers should take note that 45 percent of U.S. users are using their tablet device to shop online while watching television.
  • 5. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 5 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar Digital industry statistics as measured by the IBM Digital Analytics Benchmark revealed that there were an average of 6.8 web and mobile interactions occurring between conversions or transactions. The path is more complex than ever, but it is also more authentic, relying on the consumers’ desires, approval and engagement to drive brand relationships, purchases and long-term loyalty. Digital industry statistics as measured by the IBM Digital Analytics Benchmark revealed that there were an average of 6.8 web and mobile interactions occurring between conversions or transactions.
  • 6. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 6 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar What’s a Digital Marketer to Do? This ever-shifting and fragmented consumer purchase path creates unique challenges -- and opportunities -- for marketers to better understand their customers, utilize that data and react quickly to changes in behavior and in the marketplace. The days of marketing within channel silos are over; today’s successful marketers are able, with the help of technology, to engage with consumers across multiple marketing channels. On top of this, marketers are looking to deliver messages in real-time, using data instantaneously to provide personalized experiences across channels. Whether it’s by re-targeting display ads based on social media behavior, serving up personalized dynamic content in email -- or simply running a TV ad aimed at the consumer who is simultaneously shopping on a mobile device -- the goal is to keep up with the consumer along the purchase path. Majority of Marketers Need Help with Cross-Channel Analysis In the IBM State of Marketing Survey 2012, the challenge of managing and analyzing data across channels presented itself as a core issue for marketers, with 58 percent of respondents indicating that the multiple systems and data sources was a significant challenge to their organizations.  For example, a men’s lifestyle and fashion marketer currently uses one service provider for email management, one for analytics, an agency for search and digital media and manages social media in-house. While each option has its own merits, integrating them is necessary in order to piece together the picture of the complete customer journey leading up to the next purchase, the next Like or the next Share. Yet, to integrate these disparate solutions, would require consulting fees and arduous IT efforts, which make integration impractical and expensive. So, this marketer may spend another year with email creative that doesn’t match the social media efforts from which a visitor just clicked through to the marketer’s website. They’d be unable to properly onboard a new customer for six weeks after a purchase, due to lag time in their own data analysis. So much for real-time, personalized marketing. The days of marketing within channel silos are over; today’s successful marketers are able, with the help of technology, to engage with consumers across multiple marketing channels. Figure: Challenges in Accessing, Managing and Analyzing Data across Channels Q. To what extent does your organization face the following challenges in accessing, managing and analyzing data across different channels? Ability to measure effectiveness Multiple systems & data sources A significant challenge Neutral Not a challenge 58% 27% 15% 58% 26% 16% 44% 30% 26% 51% 29% 20% 45% 32% 23% Managing complex business rules Number of offers distributed through channels Software scalability Source: IBM
  • 7. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 7 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar Finding the Flock: Adopting a Digital Marketing Suite Although the new purchase paths are being determined, and the technology exists to capture them, equipping an organization with the technology capability to focus on real-time analytics and immediate action is far from simple. In most organizations both tools and marketers have been added organically and integration hasn’t happened. Each marketer comes to the table with a unique experience, company history and limitations, and brand and budget parameters. Each tool comes with its own strengths and weaknesses and silo’d view of the digital customer. There are a multitude of digital marketing technology options available, ranging from free and simplistic to more high end, all capable in a variety of different ways. The process of understanding customer information across various sources and applying it to be cohesively delivered across channels and platforms can be as complex as the customer behaviors themselves. Selecting the proper tool will help but can be a challenge in itself. Before even analyzing the software packages available, issues will arise, such as which individual or department will be the lead for selecting and using the software? Whose budget will be applied to adopting and using the solution? Which marketing channels are critical for integration -- and are there any that are not vital? At the basic level, is everyone in the organization even on board with moving to an integrated solution? Although the process can be time-consuming and even frustrating, the long-term benefits to a marketer, a company and a company’s customers outweighs the sometimes arduous process. As a marketer works to migrate to a more efficient and real-time solution, it makes increasingly more sense to take a close look at the digital marketing suites available as opposed to piece-meal options.
  • 8. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 8 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar 7 Questions to Ask When Evaluating a Digital Marketing Suite In order to create a more streamlined process for discovering the best possible marketing solutions suite to fit a company’s needs, a marketer can save a great deal of time and effort by starting out asking these questions: 1. What are my realistic company challenges? Do I have the authority or budget to move away from current solutions? What is my real IT hurdle to overcome? 2. Does the suite offer me base tag management that will allow me to easily deploy the technology, but also allow me to plug in other third party options as my customer behavior or marketplace shifts dictate? 3. Can I automatically capture the online visitor data and create instant customer profiles across digital channels and throughout their purchase paths? 4. Can I add my own unique inputs, such as offline data from my brick-and- mortar stores or personalized success criteria? 5. Will it cost extra or require me extra IT development time to take my efforts to the next level – such as campaign or site A/B testing? Email personalization? Cross-sell recommendations to display to customers during or after purchase? 6. Can I keep my favorites? Meaning, out of the box, does the system allow me to plug in the third party providers that have worked well for me historically, whether ad networks, ESPs, etc. And what is the true cost of integrating these third parties without IT fees, consulting funds or tag maintenance fees? 7. Does the suite come with comprehensive services to ensure adoption and solutions to the requisite change management issues that are bound to bubble up when the established KPI’s and success metrics are challenged? Possibly, the most important question for forward-thinking marketers is this: What does this service mean for my company’s “migration patterns” and those of our customers, in the years ahead? Is the system designed for today, or designed for the multitude of new channels, services, interactions and needs in the future? Given how quickly the new channels are emerging, the fact is, no single suite can cover 100 percent of the digital marketing options that a marketer should explore. The right solution should already be prepared for search retargeting, privacy controls, multivariate testing, social media marketing solutions and more. It should also have a roadmap of how it will help the marketer visualize and capitalize on the constantly shifting consumer paths today and in the seasons to come. The Power to Fly: Integrate, Implement - and Soar Much like bird’s migration paths, the marketer’s journey to better customer understanding, more actionable analytics, and an optimal software suite will likely not be easy or without setbacks. But the organization is in alignment when it asks the tough questions and is focused on the customers’ desire for communication control, channel excellence and intuitive personalization. Only then can a trailblazing brand begin to visualize digital marketing changes before they occur, create long-term loyalty with customers, find new avenues for reaching incremental customers, and weather any storms that may arise along the journey. n Is the system designed for today, or designed for the multitude of new channels, services, interactions and needs in the future?
  • 9. © 2013 Third Door Media, Inc. • http://digitalmarketingdepot.com 9 Email: whitepapers@digitalmarketingdepot.com The Great Consumer Digital Migration: Gaining the Marketing Power to Soar References: http://www.census.gov/population/censusdata/table-4.pdf http://www.census.gov/geo/www/ua/uafacts.html http://www.pewinternet.org/Reports/2012/Digital-differences/Overview.aspx http://www.pewinternet.org/Reports/2012/Digital-differences/Main-Report/Internet-adoption-over-time.aspx http://www.ctia.org/advocacy/research/index.cfm/aid/10323 http://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2012-Reports/The-Social-Media-Report-2012.pdf http://www.idc.com/getdoc.jsp?containerId=prUS23926713#.UTeHH6Xluap http://www.geekwire.com/2013/incredible-growth-tablets-size-pc-market/ http://marketingland.com/global-handset-sales-fall-but-smartphones-continue-to-gain-33364 http://marketingland.com/smartphones-are-for-shopping-tablets-are-for-buying-27779 http://www.gartner.com/newsroom/id/2335616 Thanks to Sarah Engel at Elegant Disruption for preparing this report. Digital Marketing Depot provides authoritative and actionable education about digital marketing issues. Register today for one of our free webcasts or download a whitepaper or research report about paid search advertising, analytics, e-mail marketing and other and digital marketing topics. Digital Marketing Depot is a division of Third Door Media, which publishes web sites, and produces in-person events and webcasts. Each of the four brands - Search Engine Land, Search Marketing Expo, Digital Marketing Depot, and Marketing Land - fosters continuing education, evolution and engagement for the community we serve.

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