Razorfish outlook report 2011 (vol10)

outlook report VOL 10

4 Outlook Report, Volume 10 — There’s no better time to start something. 6 The Year in Media 14 Forget Mobile — Think Multiscreen 22 A Wake-Up Call for Collaboration 28 It’s Time for Big Data to Improve Customer Experience 38 Humanity Check — What Consumers Really Think About Tech 42 How the Social Cloud Can Accelerate Brand Interaction 50 Beyond the Banner — Unleashing the Power of Digital to Drive Topline Growth 58 The Rules of Gamification 62 It’s Not Enough to Be Liked — Getting Serious About Social 70 Controlling the Retail Environment Through Digital Brand Immersion 78 Performance Marketing Must Die 84 Toward a New Global Digital Agency Structure 90 Limited Time to Prepare for Unlimited Potential of Mobile 98 How the Open API Movement Can Help Your Brand102 Organizing for Digital Success108 Authors and Contributors120 Contact OUTLOOK REPORT | GO TO RAZORFISHOUTLOOK.RAZORFISH.COM FOR AN INTERACTIVE VERSION OF OUTLOOK REPORT, VOL 10. 10 3

There’s no better time to start something.4

As we gathered the data and spoke to clients and industry watchers to put together the Razorfish Outlook Report,we once again found our business in the middle of tremendous global change. The conversation around digitalmarketing — long the domain of digital agencies and technology companies — is now part of a much broaderconversation about social and cultural change, the global economy and business landscape.In today’s world, social tools that started as communications Finally, efficiency alone won’t move business forward forever.and marketing tools have become conduits for revolution. When I meet with CMOs, CIOs and CEOs around the world,Cloud-based services have finally emerged as viable methods I continue to hear a call for innovation and see an ever-presentfor increasing collaboration and driving greater efficiency. search for sources of incremental revenue. Marketers andAnd the investment world increasingly looks to start-ups business leaders once tasked with spending budgets efficientlyto once again push the global economy forward. are increasingly challenged with identifying new sources of growth, as well as product enhancements.This means digital is now a lot bigger than agencies. In fact,it’s bigger than marketing. It’s increasingly woven into the fabric The truth is, building an agency that ﬁres on all cylinders — highof our business and consumer culture. This inspires us more levels of creativity, innovation, efficiency and technology — is athan ever not only to optimize the status quo, but also to ignite tremendous challenge. But it’s what agencies and great marketinga business movement of sorts. organizations will need to do to survive in the face of change.But how? Which brings me back to the Razorfish Outlook Report. I think you’ll find it to be a little less theoretical and a bit more practicalFirst, there is more pressure on our business to perform than in years past. Why? Aren’t digital agencies supposed to becreatively, stemming from the fact that digital ideas come the predictors of the digital future? There’s nothing wrongfrom more sources than just the agency. Indeed, as the new with dreaming big, but ﬁrst and foremost, in our view the nextgeneration of creators enters the workforce, we have observed 12 months will be about doing.their natural tendency to put digital at the center of their processand thinking, regardless of their chosen industry or employer. We’re not just talking about the social media explosion, butAs a result, companies like ours have to raise their game also scaling an organization and agency partners to executecreatively to deliver idea-led value to our clients, while creating on a strategy. Not simply checking the boxes of media bestan environment for new ideas to thrive. practices, but leveraging every tool available to plan, buy and measure its effectiveness. Not just accepting the productNext, there is a strong drive to leverage the power of technology experience as it exists today, but using technology to improveto increase efficiency and drive down the cost of marketing customer experience. Not just ideation, but also execution.and doing business. We are seeing tremendous opportunitiesin the media marketplace, with the rise of ad exchanges, analytics As we publish the Outlook Report, we hope it will inspire youand marketing platforms, to do just that. We’re merely scratching to think and act. It’s what we mean when we say Ignite.the surface of what’s possible. Bob Lord Global CEO @RWLORD OUTLOOK REPORT | VOL 10 5

The Year in Media Here’s our annual look at Razorfish ad spend, along with the resultsWRITTEN BY of our media team poll to identify the “Best of the Web” and trendsThe Razorfish Media Team for 2012. As we’ve done in the past, we polled the Razorfish media team to discover the “Best of the Web,” asking a variety of differentSPEND ANALYTICS PROVIDED BY questions to get a directional perspective of upcoming trends. Thomas Sudassy The questions revolved around creativity, performance, quality Media Research and overall general satisfaction. and Publisher Relations LINKEDIN.COM/IN/SUDASSY The past year in digital media was heavily influenced by the rapid adoption of new channels like tablets, the explosive growth of new consumer platforms like Twitter and new innovations in media buying such as ad exchanges. Overall, investments in digital continue to grow year-over-year, playing an increasingly critical role in our clients’ marketing plans. Consumer migration to digital media, the emergence of new media powers and the sophistication of performance metrics made the year in media one of the most dynamic in decades. Ad spend in review Razorfish ad spend is projected to grow by more than 25 percent in 2011, markingREAD MORE the third consecutive year of more than 20 percent growth in overall ad spend for the agency. The growth is a result of success in new business and from increased Scan the QR code investment from long-standing clients. After just two years, Publicis Groupe has to explore additional proven to be a great fit for Razorfish and our clients. content associated with this article. Now more than ever, the function of media planning is about understanding consumer behaviors and needs — and how to craft experiences that deliver on the opportunities OUTLOOK REPORT | VOL 10 7

Content is media. Yearly media billings Spend 4% 200 4% 150 43% 36% 13% INDEX 100 4% SEARCH 4% DISPLAY 50 2011(e) 43% MOBILE 2010 2008 2009 36% SOCIAL 0 NETWORKS/EXCHANGES presented by those evolving behaviors. This is fundamentally 1. GROWTH IN AD EXCHANGES different than simply accumulating reach and exposure through Razorfish has been active in buying through ad exchanges mass media. Our paid media spend was distributed across five since the early days of auction-based display media. We were main channels, illustrating the increasing complexity faced by one of the first agencies to launch a trading desk to directly clients and digital marketing teams. access the growing pool of inventory and have continued A closer look at the distribution of ad spend reveals several to be at the forefront of data integration through the creation emerging trends: of client-side data mart solutions, now commonly referred to as DMPs.8 THE YEAR IN MEDIA

Our continued expansion into the auction-based media Number of publishers vs. number of media partnersmarketplace has resulted in tremendous beneﬁts for our clientsin terms of more effective pricing, better targeting and stronger 1,832ROI overall. As we continue to grow and expand our efforts inthis area, we will be focused on integrating first- and third-party 1,024data to build the most sophisticated targeting offering possible. 692These efforts will, of course, be balanced by the industry’s 598important and ongoing efforts to provide sound self-regulationaround data management and privacy. 2007 2008 2009 2010Our investment in ad exchanges grew by 66 percent in 2010and is projected to grow again by more than 60 percentin 2011. Even with that growth, there is still plenty of upsidein this category since it represents less than 10 percent of our However, we have continued to increase our concentrationtotal ad spend. on fewer and more strategic partners. This focus on more complex, strategic partnerships has resulted in strong benefitsTotal spend in ad exchanges for our clients in terms of scale, price, innovation and access. The breakout of our spend shows that 55 percent of our 300 aggregated budget goes to our top five strategic partners, 25 percent to the next 32 largest partners and the remaining 250 2011 20 percent in our long tail of 584 publisher partners. 200INDEX 150 2010 Spend breakout 100 2009 100% 50 90% 80% 0 70% = TOTAL SPEND 60% 50% 40%2. CONSOLIDATION OF PUBLISHER PARTNERS 30% TAIL 20% BODYThe emergence of new technologies and consumer channels 10% 0% STRATEGICcontinues to provide opportunities for the emergence of new TOTAL NUMBER OFpublisher partners. In 2010, we purchased media across 598 SPEND PUBLISHERSsites, down from a high of 1,832 in 2007. While we expectmany of those buys to be consolidated through the growthof audience buying across ad exchanges, we still see theneed to test new platforms and technologies. OUTLOOK REPORT | VOL 10 9

3. INCREASED INVESTMENT IN PAID SOCIAL MEDIA 4. SHIFT FROM PAID TO EARNED AND OWNED The rapid rise of social media has impacted digital and our The scale of leading social media platforms such as Facebook, clients’ business in many ways. As social media platforms Twitter and YouTube had a strong influence on the overall continued their explosive growth in the last year to reach marketing mix for our clients. However, the overall amount massive scale, leading marketers adjusted their plans of dollars invested against social media still pales in comparison accordingly to begin a two-way dialogue with current and to search and display. The advertising models of these emerging potential customers. media titans are still evolving, but they will undoubtedly garner a growing share of marketing dollars. This has led to the emergence of Facebook as a leading partner in paid media for Razorfish in the last year. Since our In addition, the investment in social media management on early tests and inclusion in Facebook media programs in 2008, third-party and owned platforms is not to be overlooked. The the social network has gone from being in the lower tier of our vast majority of our clients now have earned and owned media top 200 publisher partners to catapulting to one of our top five strategies to complement their paid media strategies. Over the media partners (as measured by total spend). The growth can last year we’ve seen tighter coordination between the paid, mostly be attributed to the fact that Facebook has innovated earned and owned channels. We now manage relationships with in terms of media offerings and that these new opportunities close to 10 million fans and followers on behalf of our clients, not are helping our clients meet their marketing goals. Facebook’s including audiences on Web sites and microsites that we manage. growing audience makes it a platform that our clients need That’s roughly nine times what we managed just a year ago. to include in the development of their marketing plans. Our projections for 2011 point to continued growth and show no Our research into social media analytics has given us great evidence that the rise of paid media on Facebook will slow down. insight into the impact and the amplification effect of earned and owned media. As we continue to refine our practices, we fully expect that investments in content and relationships will continue to grow rapidly.10 THE YEAR IN MEDIA

“Best of the Web”MOST INNOVATION IN MEDIA OPPORTUNITIES BEST COLLABORATION PARTNER WHERE WE MOST WANT TO SPEND MONEY, BUT CAN’T FIGURE OUT HOW PREFERRED MOBILE PARTNER PREFERRED VIDEO PARTNER MOST CONSISTENT PERFORMANCE (ADVERTISING.COM)5. ACCELERATING GROWTH IN MOBILE touch interactivity together with sound, sight and motion will enable marketers to provide new, rich experiences to their customers.Our mobile media and search business nearly doubled last yearand represented close to 10 percent of our total paid media ALWAYS-ON PHONES. Multitasking with mobile while watchingbusiness. The major factors that affected this accelerating TV is driving higher consumption of mobile media and providinginvestment represent trends that will continue to make mobile new opportunities for marketers to engage with their audience.one of the fastest growing categories: Razorfish conducted a study in collaboration with Yahoo! to understand consumer behaviors and marketing opportunitiesINCREASE IN MOBILE TRANSACTIONS. Our clients are investing across multiple screens. One of the conclusions from our researchin fully functional mobile experiences where consumers can start is that mobile is emerging as an indispensable activation vehicleto transact and purchase in the mobile channel. While mobile for the massive investments in TV advertising. The completecommerce is still small and nascent, mobile is becoming an details of the study are covered later in the Outlook Report.important touch point in the consumer experience. As marketersincrease the quality and quantity of mobile experiences, themobile media and search spends will follow. For example, one “Best of the Web” — A planner’s perspectiveof our clients is seeing pay-per-call increasingly drive signiﬁcant As we’ve done in the past, we polled the Razorfish mediascale and ROI. team to discover the “Best of the Web.” We asked a variety of different questions to get a directional perspective of upcomingGROWTH OF TABLETS. The proliferation of tablets in the marketplace trends. The questions revolved around creativity, performance,is creating an entirely new channel. As consumers increase their quality and overall general satisfaction.consumption of media on tablet devices, it will provide a scaledmedium for advertisers to reach their audience. Innovations in Some of the “Best of the Web” results are listed in thetablet computing will lead to advertising opportunities that differ graphic above.signiﬁcantly from those on PCs or phones. The ability to bring OUTLOOK REPORT | VOL 10 11

Razorﬁsh ad spend is projected to grow by more than 25% in 2011, marking the fourth straight year of 20%+ growth in overall ad spend for our agency. Themes that will shape the next year in media is very useful in helping marketers broaden thinking around marketing strategies. But perhaps the real value is in helping There is no doubt that digital media continues to be the most reinforce the notion that content is media. And content can exist dynamic and innovative sector in marketing. One of the byproducts in many forms. The notion that agency planners are responsible of the rapid pace of change in digital media consumption is the for content leads to strategies and plans that can have a much constant struggle for the industry to evolve traditional delivery greater impact. In the next year, progressive marketers will models. Over the next 12 months, agencies must focus on be the ones that begin to integrate all their brand assets into adapting to the proliferation of new consumer behaviors and a single communication platform, creating a unified brand new marketing tactics. In particular, next year will be dominated experience that puts the needs of the consumer at the center. by challenges such as how to manage video across multiple screens, how to rapidly incorporate changes in social media, 2. DATA MANAGEMENT how to plan in a cross-platform landscape and how to scale In the last five years, we’ve increased the amount of data that mobile advertising. we manage in our own servers from 3 terabytes to 90 terabytes. While those trends will certainly dominate the conversation The ability to manage large and complex data sets has shifted around media and marketing, it’s our perspective that there from being a core differentiator to an absolute requirement. are also four major themes that will work to reshape digital Data sources are more vast and complicated than ever. media in the next year. Building a single view of the consumer across all channels is the only way that marketers can truly build effective marketing 1. CONTENT AS MEDIA programs. More than 80 percent of our media clients rely on a data management platform that we have custom built to make Most marketing professionals admit to having been in a vigorous their digital marketing more targeted and more effective. Over debate sometime in the last year about the classification of a the next year, these platforms will continue to become more particular tactic as paid, earned or owned media. The construct12 THE YEAR IN MEDIA

sophisticated, taking into account an increasing number of data in real time. Agencies that are well-versed in bid-managementsources. Data management pays off for marketers — we’ve systems, and that invest in the tools and processes to managebeen able to improve return on ad spend more than five times those systems, will become industry leaders. The real-timeby serving personalized ads to dynamic segments enabled and highly complex nature of digitized media allows marketersby a unified marketing database. to develop a sustainable competitive advantage.3. REAL-TIME BUYING 4. ATTRIBUTIONIn the last year, we have more than tripled the number of real- For the last decade, we’ve been building attribution modelstime impressions we’ve purchased. On average, we’ve seen for our clients to help them invest their marketing spendperformance improvements of more than 40 percent for our more effectively. In the pioneering days, this type of analysisclients. The real-time nature of digital data has simply changed was done infrequently and was limited in breadth and scope.the way we buy media. Those who are able to understand data Today, with the data and processing infrastructure we haveand act upon it immediately — in real time — have a strategic invested in over the last 10 years, and the growth of theadvantage over their competitors. Long gone are the days marketing analytics group to more than 100 professionals,when companies and their agencies could buy media months we are actively building these kinds of models for our clientsin advance, then wait several more months to understand on a regular basis. In fact, we’ve seen return on ad spendinghow those media investments performed. Today, agencies improve by as much as 3.5 times through smarter allocationand brands have seconds in which they must respond, or of media investments. While it’s a discipline that demandspotentially leave millions on the table in lost value. Brands need constant iteration and analysis, that type of improvementpartners who can collect, translate and take action on that data makes attribution modeling a crucial strategy for marketers. OUTLOOK REPORT | VOL 10 13

Forget Mobile — Think Multiscreen As is the case with many new technologies, consumers are movingWRITTEN BY faster than brands. They’re already using smartphones and tablet devices in front of the TV to communicate with friends and family, Jeremy Lockhorn look up information related to the show they are watching, or else VP, Emerging Media surf content that is completely unrelated to what’s on the big @NEWMEDIAGEEK screen. Razorfish partnered with Yahoo! to conduct a study to better understand this rapidly evolving consumer behaviorWITH CONTRIBUTOR and to provide guidance for how marketers should approach the corresponding opportunity. Mobile devices are used frequently in conjunction with other screens, including the big TV in your living room. Anyone who has ever tapped out an email on their iPhone, while checking a score on the VAIO balanced on their lap, while keeping an eye on American Idol on their 40-inch BRAVIA knows this. Yet many marketers today are ignoring this ubiquitous consumer behavior as they over-focus on mobile as a stand-alone medium. Media multitasking is not a new thing, of course. People have used laptops in front of the TV since… well, probably since the first laptop entered someone’s home. We’ve seen data on this behavior for years, and yet, beyond putting a URL onREAD MORE screen or asking people to “like” a brand on Facebook, most TV spots don’t acknowledge or attempt to capitalize on the fact that the consumer is watching Scan the QR code with a Web-enabled device on their lap or in their pocket. to explore additional content associated At a minimum, multitasking adds another layer of complexity to the evolution of with this article. media measurement. At most, it’s a massive disrupter to television, the medium that receives the most ad spending. DVRs threw the industry for a loop, and OUTLOOK REPORT | VOL 10 15

of respondents are mobile multitasking while watching TV. C3 ratings were born to begin to address a world where the partnered with Yahoo! to conduct a survey among Web-enabled consumer is increasingly in control.1 Now, add mobile and tablet phone owners with the goal of better understanding this rapidly multitasking to the mix and marketers everywhere wrestle with evolving consumer behavior and providing some guidance measuring the latest evolution in consumer TV viewing behavior. for how marketers should approach them. On one hand, there is a potential distraction factor with We found that a stunning 80 percent of respondents are mobile connected devices, and on the other, there is a much more multitasking while watching TV. Below are some highlights and engaged viewer who is passionately chasing down more content key implications for marketers. on devices beyond the TV. How do marketers account for that with Gross Rating Points (GRPs) and Target Rating Points (TRPs)? MOBILE MULTITASKING IS ADDICTIVE. 70 percent of respondents We don’t yet have a clear answer — give us six months — who multitask do so at least once a week, with nearly half (49 but most marketers seem to be ignoring the question and percent) reporting everyday multitasking. Furthermore, during failing to capitalize on the corresponding opportunity created the course of a TV program, more than 60 percent check their by mobile multitasking. phones at least “once or twice,” and 15 percent stay on the Which leads us to this: Lots of data has been published about mobile Web for the full duration of the show. the fact that consumers are using mobile and tablet devices MULTITASKING IS BOTH AN ENHANCEMENT AND A DISTRACTION. while watching TV, but little of it has gone deep enough to be An equal percentage of multitasking respondents (38 percent) really useful in planning a multi-screen strategy. So Razorfish agreed or strongly agreed with these statements: 1 “C3” TV Ratings Show Impact of DVR Ad Viewing,” blog.nielsen.com, October 14, 2009, http://blog. nielsen.com/nielsenwire/media_entertainment/c3-tv-ratings-show-impact-of-dvr-ad-viewing/.16 FORGET MOBILE — THINK MULTISCREEN

Using the Internet on my mobile or tablet device while so high and social networking so low; we expected the reverse. watching TV enhances my viewing experience. On the content side of things, 60 percent of multitaskers are accessing additional content of some type. 44 percent I find using mobile devices while watching TV is unrelated to what’s on TV versus only 38 percent related to TV. to be distracting. Clearly there can be a distraction factor here when it comes toThis seems to be an opportunity for content producers and TV commercial time, but the good news for marketers is that 36advertisers alike. Some people find multitasking to be a boon, percent of multitaskers use their connected devices for lookingand we have only begun to scratch the surface in terms up information on a commercial they just saw.of providing an engaging dual-screen experience. It’s like theearly days of smartphones where it was remarkable that people TV AD TIME = MOBILE PRIME TIME. TV ad breaks are triggers forwere making purchases from sites that were not mobile-optimized. multitasking because phones and tablets are, not surprisingly,If folks were willing to go through that much effort, it stands to more likely to get fired up and accessed during regularreason that making the experience easier and more streamlined commercial pods. And, our survey respondents were more likelywill lead to even more passionate participants. to state that they frequently engaged in multitasking during ad breaks. What people do during this time doesn’t change allCERTAIN PROGRAMMING GENRES LEND THEMSELVES TO that much. It’s still communication first and content second.MULTITASKING. The top five categories that attract An analysis of mobile Web traffic to the Yahoo! homepagemultitaskers are: during this year’s Academy Awards broadcast indicated clear spikes in traffic during TV ad breaks. CONNECTED DEVICES ADD FUEL TO THE FIRE OF SPORTS FANDOM. Almost half of respondents reported multitasking during sporting events, with little difference shown between live or pre-recorded. 1. Reality 2. News 3. Comedy 4. Sports 5. Food In fact, even when attending a live sporting event in person, more than a third can’t stay away from their devices. Another key difference between sports and other genres is that with sports, people are driven more by content than by communicationWhile the top results may not seem surprising, what struck us (recall it was the other way around overall). Texting still rules, butabout the results further down the list were that drama edged after that, other communication styles drop off — and variousout genres like talk shows, music videos, how-to and others. content rises to the top. Leading behaviors include checkingWe thought drama and action/adventure shows would be less scores and schedules of other games, and looking up teamlikely to see multitasking behavior. Perhaps these intense and player information or statistics. Smack talking showed upprograms stoke multitasking as viewers get hooked and seek surprisingly low (20 percent) — maybe that’s because it’s notways to further immerse themselves in the show’s world. Think as rewarding when you can’t see the look on the other guy’sabout Breaking Bad, CSI, Dexter or True Blood — those shows face — this feels like an opportunity for an inventive developerare intense but they also beg viewers to dig a few levels deeper (or enterprising marketer).than what happens during those weekly 40-plus minutes. Again, an analysis of Yahoo! mobile traffic confirmed that withCOMMUNICATION AND CONTENT ARE THE MAIN DRIVERS FOR sports content (in this case, World Cup 2010 and Super BowlMULTITASKING. 94 percent of multitaskers engage in some kind 2011), commercial breaks spark mobile usage. Even biggerof mobile communication. In order — text, talking, email, social spikes are seen at halftime and after the games. For example,networking and IM. It’s somewhat surprising to see talking during the Super Bowl halftime show, Yahoo! Sports saw a 305 OUTLOOK REPORT | VOL 10 17

Content and experiences that move seamlessly from one screen to another are an absolute must. percent increase in mobile traffic. After the game, even more happening in the TV spots, and perhaps even what’s happening users flooded the sports section, pushing overall increase up in the current program — especially if it’s live. At a bare minimum, 387 percent. And, not surprisingly, Yahoo! saw massive spikes it’s time to consider what kind of mobile call to action may be in mobile search traffic related to TV spots, including several appropriate in the brand’s TV spot. movies and automobile manufacturers. Pepsi, Old Navy and Heineken have begun experimenting here. Pepsi gave away a free bottle of Pepsi Max to users who tagged Implications for marketers the commercial using IntoNow, a Yahoo! social tool that allows YOUR TV CONTENT STRATEGY MUST EVOLVE (AGAIN). It used to you to share what you’re watching with your friends. Old Navy’s be relatively easy. Crank out a few 30-second spots and call “Old Navy Records” campaign encourages users to tag spots it a day. But then came the Web, video on demand, basic with Shazam to unlock related content like the featured looks, interactive TV capabilities and so forth. Most marketers are and even download the music tracks for free. Heineken’s Star still struggling to figure out how to truly capitalize on the Player app gives users the chance to play along with soccer opportunities represented by long-form video and — more matches by attempting to predict which team will score within recently — social content. Now, a new imperative is clear, the next 30 seconds. These efforts begin to show the possibilities, especially for those spending heavily on TV. Content and but are only scratching the surface. experiences that move seamlessly from one screen to another MOBILE SEARCH IS ABOUT MORE THAN LOCAL. There’s no doubt that are an absolute must. This is bigger than simply having local search is very important. After all, mobile users are accessing a mobile- or tablet-optimized Web site. It means a cohesive local search 34 percent more than they were a year ago, according communications strategy where the spots and the experience to research from comScore and the Local Search Association. on mobile devices work together and build toward a greater But, with the massive amount of multitasking behavior highlighted whole. It means a mobile-optimized site that knows what’s here combined with the various studies suggesting that anywhere from 30-40 percent of mobile data usage happens at home, mobile18 FORGET MOBILE — THINK MULTISCREEN

search isn’t exclusively about finding the closest taco joint. to action could be something along the lines of “See your favoriteMarketers must reconsider their search strategies. At a minimum, celebs arriving in the new XYZ car,” linking through to a seriesthey need to ensure that their mobile properties are properly of videos and also featuring the red carpet reporter’s overview.positioned in organic results. It may also be worth re-evaluating CONNECTED DEVICES ARE THE NEW WATER COOLER. People aren’tthe keywords they’re bidding on, perhaps to include terms thatlink the brand to shows and events they’re sponsoring. waiting until the next day to discuss what happened on their favorite program anymore — it’s happening in real time now,Let’s take an automotive company launching a new luxury sports via text, email and social networking sites/services. Brands cansedan, for example. Part of the launch is sponsorship of a live ride along here as well, but it requires a smart social strategyawards show — several spots appear throughout the show and that syncs the brand with the programs they’re sponsoring.the celebs hitting the red carpet arrive in the new vehicle. It’s not easy, but with more than half of multitaskers gettingBumpers include “sponsored by” mentions and on-screen active on social networks during TV viewing, there is a massivelogos. The spot closes with a URL. Some viewers might jump opportunity to engage the audience on a new platform.to their phones, fire up the browser and enter the URL.But a good portion of them will also take what they perceive In the automotive example above, there are several waysto be a shortcut: typing the brand’s name into a search box. the brand might get involved in the real-time discussion.Organic and paid results should appear and direct a relevant Aggregating Twitter feeds on their homepage, for example, allowsexperience — perhaps the site’s homepage temporarily features users to explore the new sedan while staying connected. Perhapsthe new model as well as content related to the awards sponsored tweets could go out from a few celebs talking aboutprogram. Perhaps the red carpet reporter films a walk-through how much they liked the ride in the car. The brand’s social networkof the vehicle, and that video is made available. To drive even presences could all be talking about the show, perhaps launchingmore trafﬁc and engagement, the brand could bid on search terms real-time polls asking users to predict who will win the nextrelevant to the awards show (and popular gossip sites). The call category. And so on. OUTLOOK REPORT | VOL 10 19

Connected devices are the new water cooler. MULTITASKING MIGHT FINALLY KILL (OR AT LEAST REINVENT) large groups of people are tuning into. And, with so much THE GRP. The GRP debate rages on. The metric that has been brand engagement happening on these connected devices, the currency of the offline world for decades has tried time effectiveness of spots may also be more accurately measured. and time again to enter the digital world, only to be beaten back Lastly — and this is the silver bullet — with massive growth by legitimate arguments that it doesn’t accurately account for expected in mobile payments and mobile wallets, the same different levels of engagement, among other weaknesses. device that knows what people are watching and what people But here’s the remarkable thing about multitasking — are surfing will soon know what they’re buying, creating increasingly, the devices are going to know what people are the ideal closed loop for ROI-driven marketers. And who watching, providing a potentially more accurate view into what isn’t ROI-driven these days?20 FORGET MOBILE — THINK MULTISCREEN

By Frederic Bonn Do you rely on more than one agency Do you know how most to handle your communications and agencies operate? marketing? Do you want your agencies to successfully collaborate? Is that single agency capable of mastering Do you have one lead agency creating Heres a little more about how integrated communications from social ideas while the others simply follow? agencies think. media to mobile, event planning to media buying, TV to digital? They all love what they do, but their love is blind. Do you want a consistent Agency A thinks that Agency B is communication clueless about digital, even though platform that Agency B said they had videos on And you have operational works across all flexibility and scale? channels and is YouTube — “That’s digital, right?” relevant to the consumer Your lead agency is probably the “traditional” B dismisses A’s ideas because A behavior in agency, right? Great, you now have a 30 doesn’t know anything about the each? second spot (or 60) and some print ads. brand, but come on, A had a video on YouTube, too! — “That’s brand And you re building, right?!”satisﬁed Did you develop an integrated brief thatwith that? And they provide A and B think C should just follow incorporates all agencies, teams and ground-breaking what they say — “Wait, you didn’t disciplines involved in your business? creative ideas get our memo?” that deliver great And D should just buy what they results? Do you believe consumers only all need — “Because we’ve experience your already figured it out.” brand via one media channel? Are Do your teams meet regularly you in to develop an integrated brand denial ? strategy and campaigns? So you’d actuallyrather workwith multiple agencies? Have you defined your individual agencies’ roles and responsibilities? And they never try to compete anyway? OUTLOOK REPORT | VOL 10 21

A Wake-Up Call for Collaboration The ability to integrate creative, media and technology to meetWRITTEN BY the demands of your always-on consumer is ideal. However, most traditional lead agencies don’t have those capabilities just yet, nor Pete Stein are most digital agencies prepared to handle lead agency duties. President, East Coordination of your agencies is not enough — you need to move @PSTEIN211 more aggressively toward true collaboration. We’ve identified five big barriers to essential agency collaboration.WITH CONTRIBUTOR People now consume 12 hours of media in just 9 hours of elapsed time, according Frederic Bonn to a recent Harvard Business Review study.1 Consumers use a lot of media types Executive Creative Director all at once and now brands need to catch up. To do so, marketers must change @FREDERICBONN how they work with their agencies. If you are a CMO or a brand leader, you are probably using multiple agencies to meet the demands of your always-on consumer. A lead agency that can integrateREAD MORE creativity, media and technology would be a great solution, but traditional lead agencies aren’t yet capable. In 2009, Forrester Research set off a mini industry tempest when it reported that only 23 percent of interactive marketers felt Scan the QR code traditional agencies were equipped to handle interactive marketing work.2 Fast to explore additional content associated forward two years and Forrester still reports that only 30 percent of those surveyed with this article. use their traditional agencies for digital marketing, and in fact 68 percent of those marketers work with two or more agencies. Some reportedly have more than 15 1 “How Internet Junkies will Save Television,” Harvard Business Review, http://hbr.org/web/extras/ how-internet-junkies-will-save-television/4-slide. 2 Sean Corocan, “The State of Interactive Agencies,” Forrester, December 7, 2009. OUTLOOK REPORT | VOL 10 23

Coordination of agencies is not enough — you need to move more aggressively toward collaboration. agencies on their interactive rosters.3 By the same token, most We have seen five big barriers to collaboration: digital agencies aren’t yet ready to handle lead agency duties. In 1. CLIENT EXPERIENCE/CONFIDENCE three to five years, the landscape will look different, but for now marketers have to deal with a patchwork of agencies that are As a brand marketer, you probably have more confidence channel specialists and all the complexity that comes from that. in one area of the marketing mix or the other. Perhaps you are What can you do now to drive the integration of creativity, a digital native who lives and breathes ones and zeroes, and now media and technology that you need to truly engage consumers? you’ve been promoted to look after the whole mix. Or maybe Coordination of agencies is not enough — you need to move you’re a “traditional” marketer with a strong legacy of brand more aggressively toward collaboration. And guess what? building, but you’ve had your run with TV commercials. Agency folk want more collaboration — or at least they claim You find digital exciting, but daunting and maybe even a bit they do. over-hyped. Wouldn’t life be better if your agencies were bringing truly integrated ideas to you? So, what are you waiting for? If you are a CMO or brand leader 2. CULTURAL INERTIA and you’re not pushing your agencies for deep collaboration, you’re missing out on a big opportunity. Success can dull the competitive edge. We have seen many marketers and their agency teams not adapt fast enough because they haven’t had to. Sometimes a great track record can put you 3 Sean Corocan, “How to Optimize your Interactive Agency Roster,” Forrester, May 27, 2011.24 A WAKE-UP CALL FOR COLLABORATION

in a position for future failure. Similarly, agencies, particularly you’re at it, examine your own organization. Agencies tendaccount people, are protective of their turf. Unless they feel to organize around their clients, so if your organization is siloed,their piece of the pie is protected, change will be difficult. it’s likely that your agencies will be, too. Even if you don’t change your structure, make sure your organization is aligned3. ABOVE-THE-LINE AGENCY SNOBBERY and not operating in silos defined by channel.Some above-the-line agency teams believe that: 1) digital agencies DEMAND CREATIVE AND MEDIA COLLABORATION. Creativedon’t have anything of value to contribute to the conversation, collaboration starts with a solid brief delivered to all agenciesor that 2) their team is already leading the way in digital. simultaneously. Unearthing an insight that reﬂects true audience behaviors is critical to crafting a relevant message, no matter4. DIGITAL AGENCY LIVES IN A DIGITAL BUBBLE who makes it or when it’s launched. The brief needs to nail theDigital agency teams tend to fall down in two places: 1) they business objectives, brand DNA and the digital behaviors —don’t fully respect the power of offline communications, or with the goal of tapping into the rituals that are ripe territory for2) they aren’t able to lift out of the tactical and into the strategic, the brand. We recently found that if we allow the above-the-lineand they fail to put their work in this broader strategic context. agency to own the brand DNA, we can own the digital behaviors,This leads clients and above-the-line agencies to keep them thereby making sure they are embedded into the ideas. This willin their digital silo. enable your creative teams to come back with a true creative platform — not just a single execution that’s stretched across5. CLIENT SILOS channels. One-hit television campaigns or social campaigns do not a platform make. Don’t settle for anything less than a robustClients are often organized into silos that make it very difficult creative platform. Huge bonus points if your media agency isto plan with a focus on how the consumer and the brand should part of the team. A successful channel plan is one that considersengage. There are different client owners for traditional creative, how to leverage each channel in a way that makes the wholedigital creative, media, PR and other elements of the mix, too. greater than the parts. You’ll find that when media and creativeWhen agencies report into different silos, true collaboration will teams work together, you’ll get deeper consumer engagement.not occur. And just to be certain that the ideas are inherently social andDespite these barriers, we have had success with our clients engaging, we have found it beneficial to include explanationsand our agency partners. We recently formalized our partnership in the brief. Use the brief to articulate why the insights pointwith BBH at Unilever, a client with whom we’ve had a lot toward engagement.of success rethinking the model. Here are some lessons we’ve PROTECT COMPENSATION AND PROVIDE INCENTIVES THAT DRIVElearned on getting the best work out of the right people: ALIGNMENT. Incentives are a powerful lever that should be pushedESTABLISH THE PROCESS. In order to get the most out of each to drive behavior. Agencies should be rewarded for collaboration.agency, make sure you define a clear process for them to work Ultimately they need to be rewarded for great work and businesstogether. You need to clarify the boundaries of their engagement, impact, but consider this to be part of a journey. They need to knowexpectations and ownership. One exercise we went through that their piece of the business is protected. While strategywith a partner agency was to play the “what if” game. We talked is shared, execution should be handled by channel experts sothrough all of the worst-case scenarios we could imagine that change is managed gradually. In addition to giving agenciesand how we would handle them when things went wrong. a safety net, give them a reason to jump higher. For one clientIt was a fun game and a great way to talk through problems we (us and the ATL agency both) receive a bonus if we helpin an environment where emotions weren’t running high. While the client exceed key business targets. OUTLOOK REPORT | VOL 10 25

To get the most out of each agency, make sure you deﬁne a clear process for them to work together. KEEP A SLUSH FUND. A key to successful marketing is figuring ability to create urgency. You need to set a high bar. For instance, out how to integrate always-on and episodic (campaign-based) point to competitors or other brands that are doing it well. communications. Great creative platforms should have plenty And you need to shift the risk. Tell your agencies that if they fail of legs and should be responsive to consumer engagement. by trying something new and different, you will embrace it, but This creates a great opportunity for agency collaboration, if they fail by not collaborating, it will be a strike against them. but as the client you need to set aside some money in order to create relevant content or utilities that can stoke a fire that In the end, agency collaboration is rooted in something very you may have created. When we created the Mercedes-Benz fundamental — trust. Your agencies need to trust each other Tweet Race last year, we saw that there was a lot of curiosity to produce great work. By setting up a clear process, demanding about the tweet-powered vehicles. We jumped on the buzz creative collaboration, and planning for the unplanned, you can and created a spoof video of German engineers driving cars go a long way toward setting up the structure and incentives with their mobile devices. It helped ignite a lot of interest. that your agencies need to build trust amongst each other. You need to start planning for what you can’t plan. With a solid foundation in place you can count on your agencies to do their job exceptionally well. CREATE URGENCY. Without a substantial reason to change behavior, it will not change. You, the client, have the greatest26 A WAKE-UP CALL FOR COLLABORATION

It’s Time for Big Data to Improve Customer Experience Channel-based marketing is dead. The increased amount of dataWRITTEN BY available at the individual consumer level, combined with the proliferation of cloud computing, have allowed savvy analysts Mark Taylor and marketers to create a truly singular view of the consumer, VP, Customer Insight Group regardless of touch point. This single view enables a truly LINKEDIN.COM/IN/MARKCHRISTOPHERTAYLOR enhanced consumer experience and more efficient use of client and agency resources for decision making. All the customerWITH CONTRIBUTORS data out there is worthless if you can’t process it and turn it into Marc Sanford, PhD actionable intelligence. Director, Customer Insight Group Unfortunately, older data processing technologies (such as Relational Database @MMSANFORD Management Systems, or RDBMS) are simply not capable of processing data in volumes that the industry has collectively coined “Big Data” — volumes that Pradeep are in terabytes/petabytes. As such, we position the consumer as the only real Ananthapadmanabhan appreciating asset and we tie everything together through the use of Big Data. Chief Technology Officer, VivaKi LINKEDIN.COM/IN/PRADEEPANANTH Awareness of the challenges of a multi-channel world is nothing new, but each channel touch point represents an immense opportunity for insight. An average Razorfish client has billions of customer interactions a year across paid, earned and owned channels. With so many opportunities for insight and learning, weREAD MORE create a 360-degree view of each individual in the database. Using integrated Big Data approaches, we are now informing the holistic data Scan the QR code view to gain the fullest understanding of consumer interactions, intent and value to explore additional content associated possible. This current shift centers on how customer intelligence across channels with this article. is not just used for insights, but actioned at great velocity to power multi-channel targeting and personalization, made real through dynamic digital messaging. OUTLOOK REPORT | VOL 10 29

Paid Email Search Mobile .com 3rd Party Data Web Analytics razorfish- Analytics OPEN TM Platform Display Reporting Earned Owned Social AOD Media Targeting OWNED Each touch point is an identiﬁable interaction PAID and an opportunity to build value. EARNED razorfishOPENTM 3RD PARTY (AOR/Client/3rd Party) From insight to action, we’re now finally implementing consistent and relevant messaging approaches that provide cohesive consumer experiences. Modular approach to platform and services, by fully integrating an organization’s owned, paid and earned In our experience, each client using Razorfish’s Big Data-led channels for insights and targeting. performance marketing approach takes a different path. Ultimately, a client’s path is based on business priorities and what information can be leveraged from the available tagging and data strategy. Better use of the team’s time to focus on what matters Working with different clients has enabled us to determine most to their business. realistic roadmaps. Data enables us to understand customers and to manage Holistic integration benefits: contact and content strategy. Data is a core component of integrated marketing and, via an integrated approach, we can Common Data Marketing Platform (DMP) for reporting, speak with a single voice across channels and lines of business. analytics, targeting and media integration. However, to succeed in a meaningful way at that level of A channel and customer view of success. customer centricity, we have to manage all that data in a way that holistically fuels customer engagement and experiences. Metrics that measure end to end, not just in parts. That effort requires a whole ecosystem of people, processes Decision-making through actionable insights. and technology. A common language for performance across different Even the most sophisticated and modern businesses today are teams, brands and markets. surprisingly ill equipped to manage even the most basic digital30 IT’S TIME FOR BIG DATA TO IMPROVE CUSTOMER EXPERIENCE

There’s a new game in town — it’s cross-channel data management and marketing.marketing standards and activities, let alone jettison forward you might think. Much of the technical and analytical challengesinto the new world of Big Data techniques. for tapping Big Data have been solved — but failures today often stem from attempting to use legacy small data solutions,Through a series of in-depth interviews and client experiences, internal politics, effort fragmentation and failure to manage theRazorfish found a common set of fundamental challenges true value of Big Data-based solutions. While a lot of nicheholding back meaningful data integration: players using Big Data approaches have stepped up to solve parts of this challenge, building incremental capabilities in a silo Fragmentation of efforts between different teams, tools and can by default push you further into a silo-based culture and data sources across multiple channels, brands and regions. limit your understanding of the customer. Political and fiscal turf protection. Any holistic Big Data solution requires a scalable measurement Multiple sales funnel constructs. plan and tagging strategy at its foundation so you can take into Inability to identify the customer. account performance marketing efforts across channels, tactics and disciplines, with a shared strategy of measurement and Inability to quantify the value of customer experiences. tracking that is scalable across international regions and markets.Let’s take a closer look at how our approach to Big Data, usingthe razorfishOPENTM framework, can remedy these issues. The end solution provides a subtle and intelligent approach that can evolve by integrating and building upon other assets,Fragmentation data sources and capabilities already in place. This approach enables a modular and organic ability to evolve and grow, butWe’re in an era where intelligent use of Big Data pays huge with a standardized core. These qualities are not always thedividends. Implementing solutions that improve integration of prerequisite in Big Data techniques, but without this there isdata is very challenging and complex but not for the reasons no foundation for growth. OUTLOOK REPORT | VOL 10 31

Online Transaction Profiles & Display Social Search .com Mobile Email Retail/ Data Segments Store MEDIA SOCIAL MEDIA SITE MOBILE EMAIL MERCHANDISING TENURE AND ATTITUDINAL METRICS METRICS METRICS METRICS METRICS METRICS METRICS PRODUCT VALUE Report Report Report Report Report Report Report Report Report MEDIA AGENCY MULTIPLE IN-HOUSE IN-HOUSE RESEARCH SEARCH AOR DIGITAL AOR DIGITAL AOR IN-HOUSE OF RECORD (AOR) AGENCIES TEAM 1 TEAM 2 AGENCY DFA Buddy Media Marin Omniture Flurry ExactTarget ATG Custom Custom OWNED Example of a siloed view of data management and reporting. PAID EARNED 3RD PARTY (Client and 3rd Party Data) Turf wars and deep analytics. This was the foundation starting point for their organization and it ensured they gained political capital across Crossing organizational units can be tricky. Often clients are their business model through an evidence-driven, customer- not set up internally for a path to success based on complete centric approach that enabled financial modeling of return on integration and use of available data. Organizations are formed investment. Their next phase focus is on actioning that data for around channels — one unit owns the Web site and its data, targeting across display advertising and the Web site. another owns CRM and email, another may own Web media and yet another may be in charge of social media. Worse yet, Another Razorfish client, a major global retailer, recognized each silo may have its own analytics arm. The only way to be that they had a wealth of underutilized offline and digital data. part of this organizational conversation is to think big. We have They decided to leverage Big Data approaches to integrate gained phenomenal success by leveraging Big Data-based multiple channels and power media, dynamic re-messaging, techniques as part of a modular, digital roadmap that directs analytics and more. The ultimate purpose is to enhance the current and future business investment in the next 100 days/12 value of those relationships by aggregating information about months/3 years. Be prepared to think big even while starting the customer and communicating with them in the most relevant small, and determine your starting point and roadmap — no and engaging way. Previous iterations of this approach resulted matter how audacious your goals. in a three- to five-time increase in return on ad spend, and a signiﬁcant decrease (about 65-70 percent) in cost per acquisition. A Razorfish global technology client decided their initial priority Each phase typically pays for itself in weeks, while providing the was to gain cross-channel insights before embarking on targeting funding for the next incremental phase. This becomes a sound32 IT’S TIME FOR BIG DATA TO IMPROVE CUSTOMER EXPERIENCE

position to be in when convincing your peers of the rationale Multiple sales funnel constructs and business case to fund such solutions. Funnel management is where people are getting clever with Big Big Data can be organized without a major disruption or re- Data, however it runs the risk of solving only one part, rather than architecture of existing structures, internal teams, vendors, the whole. We know that leveraging a single view of the consumer agencies, platforms or focus. Instead, our approach to Big Data drives value at all levels of the funnel. So why do many continue utilizes an open standard designed to exploit existing assets to approach client problems and challenges as one-offs or focus and fit the best custom solution for business environments. on just one area of the funnel? This approach has an evolving set of modular relationships managed as a single solution, resulting in a single and holistic Too many distributed engagements will lead to: view of the customer based on all available data. Our clients 1. Single point-in-time solutions that require rebuild with are using this common view to engage and encourage their every new engagement. different teams to speak in the same language. 2. An additional data silo that requires more time and effort to manage and process. Target 1.0 Target 1.1 Target 1.2 Target 1.3 Target 2.0 Heavy use of Dynamic ad, last multiple data sources Description CT with no multiple data sources action only dynamic ads delivery Delivery Display, site, email, Option/ Display or site Display Display Display mobile, call center Channel Increased relevance Higher relevance and huge long-term Benefits Low complexity Fast to market Channel agnostic and full data access incremental data benefits Some time to set up Greater set-up Access to data Time to market Greater cross-channelConsiderations the offer, strategy investment to ensure is limited is longer business coordination and creative platform is in place Typical ROI 1.5 X ROAS 3.5 X ROAS 5 X ROAS ~6.5 X ROAS ~8 X ROAS razorfishOPENTM targeting roadmap. OUTLOOK REPORT | VOL 10 33

Funnel management is where people are getting clever with Big Data. For example, the illustration on the right shows how an effective DIGITAL OFFLINE re-messaging program will grow the bottom of the funnel. However, if this becomes a one-off without integrated implementation and access to the data, the solution becomes a very clever silo at the Awareness expense of the broader opportunity. Consideration The reality is that the rules and the data to enable an integrated view and management of the funnel would need to come from Retargeting first-party data via a DMP solution and the organization’s data assets, rather than a third-party data provider. Third-party data intelligence can provide these larger insights into what’s working and where there’s opportunity for more scale. Data providers Conversion and remarketing is only can be joined to first-party data, not the other way around. part of the answer. Within Razorfish’s framework for integrating data and services (described below as razorfishOPENTM), targeted, dynamic ads are combined with a Demand Side Platform (DSP), such as and relevance. This integration also enables the ability to bring Audience on Demand (AOD), to match impressions to users a wide array of data at the bottom of the funnel to the audience identified in real time. This allows you to only reach users that at the top of the funnel. have been already “qualified,” and avoid upfront agreements and negotiation by paying the market price for users meeting Inability to identify the customer criteria defined in the audience segmentation. By reaching the right audience at the right price and allowing the ability to Razorfish implements a customer-centric approach through an control bids at a cookie level provides a great deal of efﬁciency organized framework of measurement and tagging that tracks34 IT’S TIME FOR BIG DATA TO IMPROVE CUSTOMER EXPERIENCE

all digital business activity and harnesses the full stream of toward meaningful interactions at a customer level and progressdata as the core basis of the single view of the customer. From the value of their brand relationships over time.day one we leverage all existing assets, people, agencies and We have seen our clients quickly moving toward a culture thatplatforms, without a big, disruptive overhaul. Chances are these understands customer data as one of its most valued assets.existing components are there for a reason and are providingvalue, but getting that cross-functional view and line of sight is Focusing on customer value helps companies move away fromthe first objective. channel performance and toward greater customer-centricity. But to calculate customer value, companies must fully utilize theInability to quantify the value of customer experiences recency of interactions, along with the required behavior, revenue and relationship metrics. A key challenge businesses struggleOrganizations are increasingly demanding faster value return on with is finding advanced analytical skill sets and analytics-basedtheir marketing investments. Razorﬁsh has found that businesses approaches that can leverage and interpret that data to determinenow more than ever need a true, meaningful understanding the key levers that drive value within their organization, or atof what drives customer value. Rather than using Big Data to least within a specific team’s control.improve one area of the customer experience, we need to build AUDIENCE/ PROSPECT/ CUSTOMER CUSTOMER PROSPECT/ CUSTOMER MANAGEMENT MANAGEMENT CUSTOMER Using an integrated DSP allows you to only reach customers and prospects that have been "qualified" by razorfishOPEN TM. Paid Call CenterConsistent data collection across touch DMpoints enables analytics, segmentation, .com Publisherstargeting and reporting. For example,a customer falls into segment 8, basedupon razorfishOPEN TM rules. Razorfish Owned Mobilethen targets customer experience,agnostic of channel (representedby orange dots). Email Earned Retail Open & DSP Audience Enhanced Segmentation Targeting Integration & Data Provision 3rd Party DSP and razorfishOPEN TM Client Data Providers 1st Party DMP Proprietary Data Behavioral data captured by the razorfishOPENTM first-party DMP on client-owned assets integrates with Media DSPs third-party data to help build more precise audience segments and add to our clients’ audience buying capabilities. OUTLOOK REPORT | VOL 10 35

* * * * Online * Transaction Profiles & Display Social Search .com Mobile Email Retail/ Data Segments * * Store * * MEDIA SOCIAL MEDIA SITE MOBILE EMAIL MERCHANDISING TENURE AND ATTITUDINAL METRICS METRICS METRICS METRICS METRICS METRICS METRICS PRODUCT VALUE Report Report Report Report Report Report Report Report Report MEDIA AGENCY MULTIPLE IN-HOUSE IN-HOUSE RESEARCH SEARCH AOR DIGITAL AOR DIGITAL AOR IN-HOUSE OF RECORD (AOR) AGENCIES TEAM 1 TEAM 2 AGENCY Silo reports provide a detailed view at a channel level and have a role in optimizing channel performance. Ad serving tags provide a holistic view across the customer journey, at the unique customer level. * razorﬁshOPENTM tagging framework Media razorfish- Reporting OPEN TM Targeting Analytics razorfishOPENTM tagging framework that tracks cross-channel business activity. We define and value the segments of customers we want to leverage our knowledge about them to bid for the opportunity engage with and create Big Data-applied algorithms to create to deliver those experiences. From the beginning, we value a new type of value segmentation model that can operationalize the revenue and other business impact of the opportunity and differentiated experiences at high velocity. We not only deliver in the end we prove it. unique and consistent experiences to these customers, but also36 IT’S TIME FOR BIG DATA TO IMPROVE CUSTOMER EXPERIENCE

We have seen ourclients quickly movingtoward a culture thatunderstands customerdata as one of itsmost valued assets. OUTLOOK REPORT | VOL 10 37

Humanity Check — What Consumers Really Think About Tech To get outside the digital marketing bubble, we conducted a seriesWRITTEN BY of focus groups, in-depth interviews, and ethnographic sessions in San Diego, San Francisco, Seattle, Chicago, Ft. Lauderdale, Brandon Geary and Portland, Ore. The goal was to uncover what’s really going SVP, Strategy on in the everyday user’s technology life. Among the insights @BRANDGEAR that emerged: people still need their physical space, brands get points for effort, there’s a new kind of couch potato and there’s plenty of tech-fueled confusion in consumers’ lives. Talk to a few tech pundits about what’s next and you’ll very quickly see a calcified conventional wisdom form. Facebook and/or Twitter are totally integrated into everyone’s life and everyone wants to share everything. Quick Response (QR) codes count as progress. Google and Apple are loved by all and the world is waiting to see what both will do next.READ MORE But talk to real people and you get a different story. To get outside the digital marketing bubble, we conducted a series of focus groups, in-depth interviews, and ethnographic sessions in San Diego, San Francisco, Seattle, Chicago, Ft. Lauderdale, Scan the QR code and Portland, Ore. The goal was to uncover what’s really going on in the everyday to explore additional content associated user’s technology life. There were 56 respondents age 18-49, all of whom had with this article. broadband access in their home, a smartphone and a computer. But they didn’t identify themselves as super users or even technology enthusiasts. OUTLOOK REPORT | VOL 10 39

Provide a small delight for customers. You don’t have to go big to get impact. Five core observations rose to the top for us: SOLUTION: GIVE PEOPLE A NEW REASON TO COME BACK. We found an openness to reinvention of old models with reliance on physical 1. PEOPLE NEED THEIR SPACE space. On music — “Why don’t they broaden the experience to include more physical objects around the music or have more While much of the business news centers on the death or events associated with the medium,” said Colin, 27. On movie decline of old retail models — bookstores, movie theatres, theatres, 30-year-old Lisa said, “I’d like to see the opportunity consumer electronics and music — we found people continue to rent movie spaces for friend groups so that movies become to express emotional attachment to the store experience, more like karaoke in Korea.” Big box retailers under pressure despite the shuttering of former stalwarts like Borders. This is from Amazon.com and disruptive models should consider backed up by a recent Accenture survey that found nearly re-evaluation of space, not just the product in question. 75 percent of consumers consider a storefront for digital communications products to be important. We found strong, 1 2. MORE KNOWING, LESS THINKING positive feelings about digital music, the rise of new content delivery mechanisms like Netflix, and digital content delivered Apps, search and social media are rapidly changing human on the Kindle and iPad, with limited longing for the old days. interaction at the level of the conversation. Knowing stuff has “I don’t miss CD boxes to be honest, and lugging books around become easy, which has had a reductive effect on chats that wasn’t all that great,” said 29-year-old Cathy. The risk for once might have been more discursive. “When we’re talking retailer disintermediation clearly remains high for media products. about something we aren’t sure of, we all just look up the But the desire for consultation and experiences — particularly answer and it’s over,” said Heather, 32. In-person interaction shared experiences — remains alive and well. has evolved to become more of an information sharing exercise and less of a conversation around ideas where one person 1 “The Value, Role and Performance of the Physical Retail Channel for Communications Service Companies: A North American Perspective,” Accenture, http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Communications_Research_Physical_Retail_North_America.pdf (2011).40 HUMANITY CHECK — WHAT CONSUMERS REALLY THINK ABOUT TECH

builds on another’s thoughts, building on another’s thoughts. digital consumption habits. Social media is described as a“I check my friends’ stuff more to see what information I should more ambient activity. “[Facebook] is usually a drag. I just feelknow now,” said David, 32. lazy like I’m seeing the same old stuff and looking at people’s profiles. I feel somewhat guilty about it sometimes, like I’mSOLUTION: THE BRAND HAS TO TAKE A STAND. For brands interested wasting time.” Twitter, originally categorized as a social tool,in using social media to join a conversation with their consumers, is described more as a curation tool. “I don’t really tweetthey may find there is less conversation to join and that they anymore. I just see what I should think about reading.”too are just sharing information or listening in on information And social media in general is making in-person interactionshare. Or brands may need to spark conversations. In a world increasingly difficult to motivate or organize. “It’s just so hardof information sharing, consider asking a question, creating to make it (an in person meeting) happen now,” said Tran, 29.a debate and offering an opinion in attempt to get engagement. SOLUTION: DON’T BE AFRAID TO BE A PUSHER. Brands that have3. BRANDS GET POINTS FOR EFFORT long viewed digital as an engagement medium should also consider more opportunities and ideas that are more pushWhile only a few big successes in North America appear to get in nature: video- and photo-based status updates, viral shortsthe majority of mainstream media coverage (Facebook, Apple, and simple games and activities.Google, Angry Birds and LinkedIn), we have found the perceptionof innovation increasingly comes from the trial of new things, 5. THE RISE OF DIGITAL CONFUSIONregardless of whether or not the new thing is a long-termbusiness success for the company that launched it. Google In launching new digital services in an app-ﬁlled, multi-device,is consistently praised in projective exercises as innovative, multi-operating system world, consumers have becomedespite an inability of users to pinpoint exactly what those increasingly confused by messages. They’re less certain aboutinnovations are. “Google is like Apple,” said Steven, 41. “Just the difference between a browser and operating system, PCalways doing new things.” Companies like Starbucks and Nike and tablet, and OS and device manufacturer than ever before —are thought to be more suitable for reinventing dying industries “I’m not sure what Chrome or a Chromebook is.” “I’ve usedlike books and music, despite not being media companies. Bing, but what does it do again?” While not every brand can“Starbucks could make a better bookstore than Barnes & Noble be Apple from a product perspective, few beyond them appearcould,” and “Apple could sell anything.” to be delivering messages that are connecting.SOLUTION: KEEP ON MAKING. Companies don’t have to get SOLUTION: DITCH THE STRATEGY AND GET TO CLARITY. As marketerseverything right to get credit. Perceived effort associated with well versed in the creation of the emotional benefit look to newreleasing products and services creates a positive cumulative services for old or new brands, it’s paramount they continue toeffect for the brand. For brands remaining on the sideline scrub their message strategies to get to the essential elements thator fearing a lack of focus, consider placing smaller bets on app drive clarity. Even more than before, attention and/or emotionalor development initiatives to provide a small delight for customers. attachment appear to be less of an issue than understanding.You don’t have to go big to get impact. Digital devices, social platforms, mobile and commerce are all4. MEET THE NEW COUCH POTATO changing consumer behavior rapidly, but not entirely in the ways many had predicted. In the future, it’s the brands that rethinkHistorically, digital pundits have promised a more interactive space, not just the product, take a stand in the social space,future, in which users move away from passive, couch potato push content that’s easy to consume and simplify the messageviewing to more active engagement. While the amount of user- that win. This means the most surprising thing about the futuregenerated content and sharing supports this movement, we might just be its similarity to the past.have found everyday users increasingly leaning back in their OUTLOOK REPORT | VOL 10 41

How the Social Cloud Can Accelerate Brand Interaction From March 2010 to March 2011, Facebook online video and mobileWRITTEN BY device consumption time were all up, but the rest of the Web was down. This means that while these social areas have grown, they’ve Ray Velez also taken users away from more established sites. Brands need Global Chief Technology Officer to take the conversation to where the users already are. Social @RVELEZ cloud services connect digital experiences with Facebook, Twitter, LinkedIn, Google, Microsoft and other social services.WITH CONTRIBUTOR We’ve identified some dos and don’ts to take full advantage of these APIs. Rafi Jacoby Social Technology Lead @RJACOBY The Web isn’t dead, but it sure has taken a hit. Wired Editor Chris Anderson’s prediction that the free, interconnected world of the Web would be replaced by the paid-for, walled gardens that are apps hasn’t necessarily come true. Yet the Web is a changing place with fewer winners and more losers because of audience consolidation around a few key platforms. From March 2010 toREAD MORE March 2011, Facebook use was up 69 percent, online video consumption was up 45 percent and mobile device time was up 28 percent.1 The rest of the Web Scan the QR code was down 9 percent. This means that while these areas have grown, they’ve also to explore additional taken users away from more established sites. content associated with this article. With social and video sites, the users are already there — you don’t need to drive them to your destination site. Instead, you can take the conversation to where the 1 Ben Elowitz, “The Web is Shrinking. Now What?” Digital Quarters, June 2011, http://digitalquarters.net/2011/06/the-web-is-shrinking-now-what/. OUTLOOK REPORT | VOL 10 43

users are already. For instance, Facebook makes up 25 percent experience is a mobile application or a traditional desktop site, of all page views, with users averaging 15.5 hours per month these APIs are available. on the site. This requires a rethink on how you spend your media Marketing and business needs a blueprint for how these dollars to acquire users. all interact. The graphic, to the right, describes the key API In order to acquire information about those users, all you need categories in the social space. to do is offer something small: a fun experience, chance to win something or a coupon (which do amazingly well). Three core areas make up social APIs When you have reached the right audience, the users you have 1. AUTHENTICATION acquired will continue spreading the message for you. According to “Zuckerberg’s Law,” users share twice as much content every The first core API area is authentication or the ability to leverage year as the previous year. Your brand’s content will be disseminated the services of a social network to help people gain access by real people to the people who trust them (high “earned” value). to your digital property. You can now enable users to log in In the future, the brand with the most compelling content wins. to your Web properties without having to create a new account. Arguably this is already happening, but we need to develop new Registration through a social cloud service breaks down metrics to understand this. What is clear is that users want the barrier to entry of creating an account. OAuth and OpenID to share creative, fun and engaging content — not product are the main technology standards for ensuring secure access specs or regular marketing collateral. to digital sites and properties. Sites can support both or just one, but ultimately these technologies can have a drastic impact Soon, more experiences will be connected: tweeting from inside on the number of folks who sign up. Once authenticated, there an Xbox game that they have unlocked a new level; sharing is the concept of profile data sharing or the sharing of data the act of viewing a TV show on Twitter/Facebook/GetGlue; elements about people — pictures, birthdate, email, etc. leading other users on an augmented reality treasure hunt on their phones while tracking the progress inside a Facebook Obviously, there are privacy considerations that have slowly leaderboard and tweeting out results. evolved. For example, when we first used Facebook Connect profile sharing, anyone could grab a person’s picture, but then With the rise of social check-in services (Foursquare, Twitter, Facebook evolved their privacy controls to give users control Facebook), you can have trackable digital marketing tying into of who can see their picture. Of course there are limitations brick and mortar. Then, you can build an experience around on what you can do with the identification, but at that point you that location with communities, discussions, deals and events. can grab more information from the person contextually to your You can learn exactly how far users will go to make a purchase, experience as needed. Lastly, it’s important to make sure you which users are more likely to purchase where, and what use whatever the connection type is, whether OAuth, OpenID other locations they frequent that might be interesting for your or proprietary with secure sockets layer. This will ensure the business — all without commissioning surveys or having to hacker hanging at Starbucks doesn’t steal your password. integrate with many different point-of-sale systems. After logging in, you can leverage locally saved tokens so users don’t have to login to Facebook across every site they Social cloud services provide your digital experiences or Web go to during the day. One login will work. Letting users pick properties with the ability to connect up with Facebook, Twitter, their account type to log into (Facebook, Twitter, etc.) affords LinkedIn, Google, Microsoft and other social services. These the most flexibility, and you can leverage a lot of the same services come in the form of Application Programming Interfaces development when you code to a standard like OAuth. (APIs) that your technologist can integrate. Whether your digital44 HOW THE SOCIAL CLOUD CAN ACCELERATE BRAND INTERACTION

OPEN SOCIAL FACEBOOK OAUTH/OPENID/ GOOGLE Social CUSTOM FACEBOOK Graph Authentication WINDOWS LIVE GOOGLE Sharing TWITTER PROPRIETARY TWITTER LINKEDIN LINKEDIN DATA Social Application Profile PORTABILITY WINDOWS LIVE Programming Interfaces (API) Data Sharing DISCUS FACEBOOK ECHO Commenting & Message Boards TWITTER2. CONVERSATION AND SHARING 3. SOCIAL GRAPHThe second core API area is commenting and message Lastly, one of the most important social API areas is sharingboards — basically the ability to create messages around of the social graph. That means not only connecting with thea topic area. Let users drive conversations like comments current person, but with their friends as well. All of this is madeor message boards without having to write custom code to available through the API. Similar to OAuth and OpenID, theresupport it. Consider a Twitter message a conversation around is a technology standard for accessing this information calleda topic area, or a Facebook wall post a growing interaction OpenSocial. While this has evolved considerably over thefor your experience. A lot of the API needs in this area are last couple of years, it still seems to lack broad adoption bybringing order to the chaos. The Facebook plugins are pretty the major players, most notably, Facebook. For now it seemseasily implemented and high value. Replace your own comment proprietary API calls to social engines are still the norm.boards with Facebook comments — no additional sign-uprequired, and content can be shared on a user’s wall. It’ll drive Authentication, commenting and social graph sharing aretraffic in and out of your Web property. Technologies available the three key social services, but there are lots of other socialin the Software as a Service (SaaS) approach such as DISCUS services that can also power your digital experiences, whetheror Echo enable you to bring the messaging to your site, while mobile, desktop or in-retail. These will continue to grow asstill existing on Twitter and Facebook. Considerations down the people innovate in the space. Social video services like Vimeoline include the ability to moderate and monitor posts, which are and YouTube allow you to embed your videos in your ownespecially important when considering branded experiences. digital experiences while still allowing the video content to be accessible from the YouTube and Vimeo platforms. OUTLOOK REPORT | VOL 10 45

Learn exactly how far users will go to make a purchase, which users are more likely to purchase where, and what other locations they frequent. The obvious benefit is that you save on bandwidth costs, but AWS failure this spring). PaaS leaders make deployment, the even greater benefit is that you are where users are. You database and background jobs easy: consider Heroku, AppFog, create a branded experience on YouTube, and then extend that Engine Yard, VMware and Cloud Foundry. experience through YouTube embed codes onto your branded We can learn from the technologies, processes and concepts property. YouTube continues to grow their API to allow more that have enabled huge social cloud growth for those companies. ﬂexibility around how your player looks and whether or not ads They are using PHP (Facebook), Ruby on Rails (Twitter, Groupon, should show up on your videos. Airbnb), Python (Yelp), MySQL, unobtrusive JavaScript, server- Simple plugin buttons such as Facebook’s “Like” and “Share,” side JavaScript, cloud hosting, Scala, Clojure, MongoDB, CSS3, Google’s “+1,” and Twitter’s “Tweet” and “Follow” dramatically HTML5, REST, JSON and WebSockets. These technologies lower the barrier to users sharing content from your site out are being used by cutting-edge companies and they are to their entire social graph. contributing their cutting-edge work back to the community. Plus they are generally much more cost-effective than traditional Data resources enterprise-based approaches, stuck within slow-moving, expensive corporate IT data centers. Agile approaches have If social cloud services accelerate traffic to your branded digital pushed innovative approaches like continual builds of code experience, core cloud infrastructure services will enable your or continual releases of production code. Both approaches social cloud services. Infrastructure as a service or rent-as-you- are made practical through platform cloud services. go Infrastructure as a Service (IaaS) or Platform as a Service (PaaS) let businesses like Zynga, Groupon, LivingSocial and Cloud-based performance monitoring tools like New Relic can Airbnb go from nothing to $1 billion valuations with negligible identify performance problems in your application and give IT overhead, scaling when they need it, without overbuying you starting points for optimization. LinkedIn uses this kind capacity. But make sure you architect for fault tolerance (see of information to identify functionality that can be replaced46 HOW THE SOCIAL CLOUD CAN ACCELERATE BRAND INTERACTION

with higher performance languages and frameworks, migrating Razorfish’s Open Digital Services approach helps clients’key services over to Node.js and Scala to take advantage strategic view of services. Think about freeing some of yourof their high degree of parallelization. If you need deeply data (product catalog, etc.) with a public API and see whatintegrated analytics, a service like Mixpanel solves storage, the community might build around/for you.presentation, organization, querying and export problems,and provides simple toolkits for instrumenting both the server Cautionsand client components of your Web app. There are many useful services available to build yourBuild with multiple screens in mind. A single codebase can easily applications. Yahoo! Query Language (YQL) lets you querysupport Web, Facebook canvas and mobile touch if you abstract a myriad of pieces of information against many of the Yahoo!out your views well and use a framework that is designed for properties. Geocoding services identify user locations andsuch flexibility. Why not launch on three surfaces simultaneously help you provide locally interesting content. It is importantfor almost the same price in development? There’s no need to to understand how dependent your application is on thesethink of your site and your Facebook presence as completely services and what their limitations are. Most will have limitsdifferent animals. They can be two views of the same thing, with on the number of API calls you can make; it’s advisableslight differences. Platform cloud services can help you optimize to build a layer into your own application to cache whateverand speed delivery, regardless of the screen. Look at cloud-based you can to avoid hitting those caps. A local cache will alsocaching delivery networks like Amazon’s CloudFront or Google’s keep your application running and useable if the servicesPage Speed to accelerate delivery, regardless of targeting a experience an interruption. Lastly, ensure that you areFacebook page or a traditional Web page. subscribed and follow any announcements around APIs; they have change deadlines and if you don’t update in timeCloud services like Mashery or Apigee enable your brand to get you can be out of service.into more places than just your owned digital properties. OUTLOOK REPORT | VOL 10 47

If you build something that depends on the major social networks, Your Facebook page should be a destination with many doors, your app will require occasional work in order to keep in sync not just a flat campaign. Engaged users spend more time with the latest changes, as well as monitoring to make sure with your brand, and become your biggest advocates — often that things outside of your app are live and working. During jumping in to defend the brand on the wall before the brand one campaign on Twitter, the tweets were not all appearing can respond. So give them a reason to stay and interact in the search feed and Twitter had to help fix an issue on their with something more than a lead generation form. Consider, side. Facebook has had several major changes on their API, “Why would someone share this with their friends?” when with the latest coming Fall 2011 — a security overhaul of the designing your social presence. application authentication system that will disable applications Don’t oversaturate your fans with content. You’ve spent time that do not comply. In the past, Facebook switched from and money on earning them, so make your posts to their its proprietary Facebook Markup Language (FBML) to IFrames, streams or tweets compelling and not too frequent in order but if you had an app that hadn’t launched yet, you had to avoid them “un-liking” or blocking you. to make sure to pre-provision it on Facebook or you wouldn’t be grandfathered in and would have to scramble to do a rewrite. Social isn’t a one-off. You’ve acquired lots of fans so keep using them. Think of longer strategies, not just short campaigns. Social conversations are hard to control. You may want to take You built an app that has 3 million users — don’t just end, a fresh look at how you relate with your consumers. Some extend. Those people are linked to you now, so keep giving them brands have elected to be very hands-off. Others are very something. Add more content and create new ways to interact. engaged. Third-party social monitoring tools (Context Optional, This probably involves a new way of looking at budget. Involver, Buddy Media) and a community manager are a must in that case for doing escalation, bad word filtering, auto delete and more. This can be a recurring budget consideration.48 HOW THE SOCIAL CLOUD CAN ACCELERATE BRAND INTERACTION

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Beyond the Banner — Unleashing the Power of Digital to Drive Topline Growth Industry leaders have to reinvent themselves periodically toWRITTEN BY maintain their preeminence. But as the rate of technology-driven change continues to increase over time, the speed and frequency Tim Perlstein with which companies must reinvent themselves also increases. Group VP, Strategy And unfortunately for industry incumbents, technology-driven LINKEDIN.COM/IN/TIMPERLSTEIN disruption tends to favor new entrants, who are often faster, hungrier and unencumbered by legacy systems and processes. We believe digital should be at the core of any industry leader’s Bethany Fenton growth strategy, and we’ve identified three ways digital can drive VP, Experience LINKEDIN.COM/IN/BETHANYFENTON step-change improvement in topline growth — above and beyond efficiency maximization of existing efforts. The first wave of digital disruption came crashing into the business world about 15 years ago, when the Internet first exploded as a consumer technology. Since then, leading companies across industries have been scrambling to master the art of marketing and selling online. Most large companies now maintain multiple Web experiences and marketing programs — all of which require periodic upgrades in the form of redesigns and replatformings, as well as ongoing testing and optimization. (All bread and butter for digital agencies, of course.)READ MORE Meanwhile, in what sometimes seems to be a parallel universe, pure-play digital startups continue to spawn, swarm and thrive, often squeezing out weaker Scan the QR code competitors and overturning established industry structures in the process. to explore additional content associated Industry leaders have had to reinvent themselves periodically to maintain their with this article. preeminence. But as the rate of technology-driven change continues to increase over time, the speed and frequency with which companies must reinvent OUTLOOK REPORT | VOL 10 51

themselves also increases. And unfortunately for industry fulfillment. Despite the complexity, retail giants Macy’s, incumbents, technology-driven disruption tends to favor new Barneys New York, PBteen, and JoS. A. Bank all extended entrants, who are often faster, hungrier and unencumbered their ecommerce operations internationally this year. Macy’s by legacy systems and processes. now has an ecommerce presence in 90 countries, although its physical stores are all within the U.S. 1 The logic is Now, as companies emerge from the recession looking to deliver obvious: With domestic growth stalled, foreign markets offer an step-change improvements in revenue growth — and as growth appealing opportunity to extend brands and capture growth while becomes harder and harder to find within existing markets — requiring only minimal capital investment (compared to rolling digital channels, programs and agencies must do more than out more brick-and-mortar operations). deliver incremental improvements from evolutionary change. Optimizing your way to greater efficiency is good, but not Of course, overseas growth isn’t just for retailers. Even enough. Digital can and must do more. manufacturers for whom digital is not a direct sales channel are using digital tools and partnerships as a cornerstone Digital should be at the core of any industry leader’s growth of market entry strategy. As always, deep knowledge of local strategy. In fact, given the relative maturity of established players and local infrastructure is key. For example, given platforms and programs — and the ever-increasing competitive the relatively high adoption of mobile phones (versus desktop pressure from new entrants — now is the time to ignite a new PCs) in developing countries, some Consumer Packaged round of digital innovation within your organization. To begin Goods (CPG) companies are looking to advance by partnering the conversation, we’ve identified three ways digital can drive with local telecom operators to expand mobile coverage — step-change improvement in topline growth — above and beyond in exchange for marketing access to consumers. Other firms, efficiency maximization of existing efforts. such as General Mills, leverage digital for insight and customer collaboration, as well as outbound communication. In China 1. NEW MARKETS and other markets where standard retail channel data As domestic growth in core segments becomes harder to come is inconsistent or nonexistent, General Mills is building by for U.S. companies — and as emerging markets continue a proprietary database of consumer households, and using their dramatic expansion — we expect industry leaders to seek real-time digital communications tools to allow consumers new growth from markets that are new to the company and/or to voluntarily share data on their preferences and behaviors.2 broadly underserved by their industry. Digital can and should These are just some of the ways in which digital can support be a powerful, cost-efficient method of reaching and serving successful new market entry — well beyond the banner ad. We these markets. expect to see much more innovation in the coming year, as early That said, leveraging digital for new market entry isn’t as simple initiatives prove successful and best practices begin to emerge. as launching a version of your Web site in your target market’s 2. ENHANCEMENTS FOR EXISTING PRODUCTS AND SERVICES local language, although this might not be a bad start. Localization means more than translation. For online retailers, “Digital” can be more than a marketing or sales channel; it can serving international markets means dealing with foreign fundamentally transform a product or service by providing exchange rates, taxes, sizing systems and — of course — additional functionality and consumer value. Even companies 1 Allison Enright, “Macy’s Goes Global,” InternetRetailer.com, June 27, 2011, http://www.internetretailer.com/ 2011/06/27/macys-goes-global. 2 2011 Financial Performance Report, PWC/Grocery Manufacturers Association, page 43.52 BEYOND THE BANNER — UNLEASHING THE POWER OF DIGITAL TO DRIVE TOPLINE GROWTH

accustomed to delivering tangible, “real world” value propositions services with new, digitally enabled functionality (set TVshould treat digital as a core component of product strategy — recordings from your smartphone, view caller ID on your TV,not just marketing or sales. manage call routing and voicemail settings from your PC, etc.). Add in a host of innovative new hardware options (Roku,The most obvious example of this dynamic is the ongoing upheaval Boxee, Slingbox, Apple TV, Xbox 360) and service providerswithin the media industry, where traditional core “products” (Netflix, Skype, Google TV), and you have a full-on battle forhave been entirely digitized, radically expanding the dimensions control of the digital home.of competition and dramatically increasing the importanceof distribution channels and the overall “experience” of content More established providers of “traditional” products and servicesaccess. The list of recent digital product innovations within cannot help but be affected by this domestic, digital landscapethe media industry seems endless. It encompasses multiple new and the new consumer behaviors it generates. Home securityaccess platforms, ancillary or “exclusive” premium content and automation providers must inevitably develop new strategiesoptions, user-generated or participatory content development, and products to compete within the increasingly networkedsharing, commentary, other social features, and on and on. home. (ADT’s Pulse product is a good, early example of this trend.) Consumer electronics manufacturers may find waysA more subtle but equally interesting evolution is happening to embed digital “smarts” in appliances beyond TVs. Evenwithin the hardware and networking industries that typically supposedly staid utility companies may get in on the act,support content delivery. Digital TVs are becoming “smart,” with more efficient and convenient controls, monitoringadding Internet connectivity and their own application platforms. and service solutions.3Network providers are delivering increasingly integrated digital 3 See for example: M2M and Embedded Strategies, Juniper Networks, May 2011, page 81-85. OUTLOOK REPORT | VOL 10 53

Now is the time to ignite a new round of digital innovation within your organization. For service providers outside the home, digital enhancements 3. ENTIRELY NEW BUSINESSES are becoming just as commonplace — and perhaps even more This brings us to the third major digitally driven growth important. The ability to conduct secure online banking opportunity: the development of entirely new business lines. or day trading from our smartphones is something many Although it’s still early days, we’re seeing more and more of us already take for granted. (Can you even imagine opening companies in “traditional” industries using digital to launch new a new checking account that didn’t offer free online bill pay? businesses and ventures that are adjacent (or even outside) We can’t.) Travel providers, from airlines to cruise lines, are their core comfort zones. An even greater number of companies scrambling to provide ever-more convenient digital applications now maintain digital innovation skunkworks, with a mission for booking, trip management and customer service — both to identify and pursue promising opportunities outside the during and after travel. Even brick-and-mortar service providers umbrella of the main organizational structure and brand. are ﬁnding ways to integrate digital add-ons within their core experiences, whether it’s providing access to a vastly extended Just a few examples should help paint the picture. GameStop, assortment (JCPenney’s in-store kiosks) or free, premium digital the leading physical retailer of video games, made a splash content (Starbucks’ “Digital Network”) while on-premises. this summer when it announced its move into online streaming of console games — clearly a hedge against declining physical The lesson behind all these examples is the need to view digital retail sales of a fundamentally digital product. It’s a move that as an arena for fundamental product innovation, not just requires fundamentally different capabilities and processes marketing communications. Rapid technology change continues from the core retail business, and will likely benefit if managed to open up vast, uncharted whitespace for products and services separately from store operations. Additionally, GameStop yet to be invented. And as new and established players across maintains a vibrant portfolio of digital properties, including multiple industries continue to extend their offerings into the Kongregate.com and GameInformer.com, which could form digital realm, the consumer’s digital ecosystem becomes an the seeds of future all-digital ventures. ever-richer environment within which to innovate.54 BEYOND THE BANNER — UNLEASHING THE POWER OF DIGITAL TO DRIVE TOPLINE GROWTH

There are plenty of other examples of companies launching experiment was deemed successful enough to remain a separatenew virtual or cloud-based business models. Microsoft, reacting branded entity, and has grown beyond shoes to include brandedto the market’s move away from boxed software, launched women’s apparel and accessories and, as of this summer,Office 365, the cloud-based version of its dominant office suite, menswear as well. It was also no doubt a key reference pointavailable on a subscription basis. In a completely different in Gap Inc.’s decision to purchase Athleta (another online-category, Gourmet magazine was shuttered as a print magazine only retailer) in 2008.5 We view this as a model for successfulbut resurrected as an online-only publisher — a fundamentally experimentation with online-only business models and digital-different business model for parent company Condé Nast. only brands, and are aware of similar trial ventures in the worksAnd in the world of financial services, H&R Block has found within the retail sector and others.value in monetizing free online tax prep services, which, despiteliving under the same brand umbrella, involves digital skills For companies willing to experiment in this way, we seeand tactics that are quite different from the company’s traditional significant potential to create new profit centers. Of course,brick-and-mortar business. 4 we also recommend that these initiatives be managed closely and nurtured carefully, as beta is high. Of the three digitalFinally, it’s worth remembering a “classic” example of digital growth strategies presented here, this “new business” categorybusiness innovation: Gap Inc.’s creation of the Piperlime typically carries the highest risk, as well as the highestbrand in 2006, as an online-only shoe retailer. While not potential reward.a primary revenue engine for the parent company, the Piperlime 4 H&R Block 2010 Annual Report, page 4. 5 “Piperlime Brand Adding Zest to Gap,” Marketwatch.com, September 17, 2010, http://www.marketwatch.com/ story/piperlime-brand-adding-zest-to-gap-2010-09-17. OUTLOOK REPORT | VOL 10 55

Getting started PARTNER EARLY AND OFTEN. No single team or company can do everything well, all the time. To build new capabilities quickly If you’re now sold on the power of digital as a driver of growth and share risk, look within and across industries to find outside your current core, here are some general recommendations unexpected partnerships that unlock new value by creating to keep in mind as you’re plotting strategy and laying the foundation: entirely new value propositions. By partnering with companies in adjacent — or even seemingly unrelated — industries you LOOK AROUND. Given the rampant, technology-driven innovation may gain access to new pools of assets such as content, happening across industries, you’ll want to keep an eye (or technology, or data (always fulfilling commitments to protect several) on developments outside your own category — as well consumer privacy, of course). These can help power new kinds as a constant focus on the ever-changing technology landscape. of digital experiences — or even full-fledged new ventures — Network with colleagues, partners, and functional peers to get while leveraging your own internal assets and capabilities in real-time insight into what’s working now, across many types more productive ways. of organizations. This kind of insight should help drive shorter cycles and higher hit rates for innovation initiatives and other CONSIDER BUYING. Sometimes it just makes more sense to kinds of change programs. purchase assets, capabilities and talent outright, rather than partner. (Allstate’s pending acquisition of Esurance, as of August LOOK AHEAD. When it comes to both business strategy and 2011, is a particularly good example of this as it applies to technology, evaluating the current landscape is rarely sufficient digital strategy.) Establishing a solid strategic foundation, with to inform plans and roadmaps with a time horizon longer than a shared internal vision and a clear view of your desired future six months. It’s essential to take a longer view, and include not state, can help reveal your most critical current gaps and aid just competitors but also disruptive factors — which, defined in evaluating possible acquisition targets for digital initiatives. broadly, should include technology-driven substitutes as well as potential new entrants. Hopefully we’ve convinced you that “digital” is much more than your Web sites, banner ads, search keywords and mobile apps. LOOK WITHIN. Take a fresh look (or ask a genuine outsider) to At its core, it is technology-enabled growth, innovation and help identify “buried treasure” within your current business — transformation of existing business models. As the other articles underleveraged assets that digital technology can help unleash in this report make clear, we believe the next major cycle of in unexpected ways. This could include products (lesser-known technology-driven disruption has only just begun. And the future SKUs, niche offerings, an extended “long tail” assortment), belongs to those companies who look beyond the importance processes (ancillary services, product development or innovation of near-term optimization — as important as that is — and move capabilities, insight generation), people (internal experts and decisively to put digital at the center of their strategies for long- inﬂuencers, underexploited partnerships, underserved customers, term business growth and differentiation. etc.), IP (contents, patents, other forms of internal knowledge) and who knows what else. New, unexpected connections between assets and markets are often areas where digital can help unlock additional business value.56 BEYOND THE BANNER — UNLEASHING THE POWER OF DIGITAL TO DRIVE TOPLINE GROWTH

“Digital” can be more than a marketing or sales channel — it can fundamentally transform a product or service. OUTLOOK REPORT | VOL 10 57

The Rules of Gamification Gaming is embedded in us as human beings. We’ve already seenWRITTEN BY the effects of applying game mechanics to individual marketing The Team at Denuo campaigns, to every loyalty program in existence, and to tons WWW.DENUOLOGY.COM of Web sites where you might not think “game” at first glance. This is “gamification,” and to make it work, there needs to be a focus on the very human benefits that make games successful: challenge, recognition, tracking, competition and cooperation. Human beings love games. If you look hard enough, you’ll find game dynamics in everything we do, from education to careers to relationships. We’re all about establishing rules, defining winners and losers, competing and cooperating. So while it’s no surprise we see all of these things in marketing campaigns, it’s also nothing new. For decades, loyalty campaigns that instill customer loyalty by awarding points and prizes have been a mainstay of establishing customer relationships. Now the rise of social media is bringing a different kind of gamesmanship to bear. Facebook is flooded with FarmVille and Mafia Wars achievement. Foursquare is turning everyone into the mayor of somewhere. And Twitter, though most are loath to admit it, is all about the accumulation of followers. Then there’s Klout, which has managed to make a game of all these games, awarding badges and small gifts to those who are best at playingREAD MORE the social game. Brands want to play, too. And some are doing a good job of it. Pepsi, Starbucks, Scan the QR code Hallmark and Nike are just a few examples of marketers who have gamified to explore additional content associated their customer experiences. “Gamification” — the application of gaming with this article. principles, mechanics or concepts to efforts that aren’t necessarily “games,” has everyone talking. OUTLOOK REPORT | VOL 10 59

We humans are all about establishing rules, defining winners and losers, competing and cooperating. But games aren’t all fun and, um, games. While they might appear to be a safe way to earn engagement for your brand, they must 2. RECOGNITION be integrated in an authentic way in order for consumers to want to participate. When considering the prospect of a program using these principles, it’s important to focus on very human A lot of people go through life without being recognized very benefits that make games successful — challenge, recognition, often — that’s one of the reasons we have birthdays and tracking, competition and cooperation. Facebook. Games can change that. They recognize achievement, scarcity and excellence in a context that matters to the player. These five benefits are the lenses through which we’re approaching Taking that understanding of context and what truly matters any gamification effort: to a consumer creates a flood of creative marketing ideas. Badges, mayorships, little gifts — they can all go a long way to make your consumers feel special. 1. CHALLENGE 3. TRACKING As marketers, we’ve been taught to make communication frictionless, easy and direct. But for games, that’s a recipe for boring. The artful application of difficulty to games is what makes The notion of the Quantified Self has taken deep root in our them fun, and there exists the same opportunity to create fun culture. We’re tracking more and more of our lives via sensors, in marketing using this principle. Don’t be afraid to challenge apps and Web sites than ever before. Our workflows, diets your audience but, of course, that’s not the same as miring and sleep schedules are all now quantifiable using the latest them in complexity. technology, but games have a long history of giving players feedback about their progress and when they’ll finally reach60 THE RULES OF GAMIFICATION

the end. It’s easier than ever before to harness data to enrich taught us lessons about that fact for several years now. Marketersany experience and deepen the engagement one has with it, be offer things consumers want — making them participants init entertainment or marketing — or both. Using games can help a gaming experience, and encouraging them to work togetheryou help your consumers better understand their performance toward those wants can be a powerful motivator.and help them improve. Together, these ﬁve lenses create some really interesting programs. We’re using them to bring lively connections to family dinners 4. COMPETITION (www.eltacodor.com), create hunts across America for hidden prizes (www.thanksabilliongiveaway.com) and power a Twitter- fueled race to the Super Bowl (awardshowsubmission.com/ mercedesbenz/tweetrace/the_race.html). Beyond marketing,This is the most obvious lens to consider when applying game businesses are using these lenses to aid them in everythingthinking, because games produce winners, losers and everything from training to customer service to logistics.in between. The rub with marketing is making sure that theaudience cares enough and that there are enough relevant Can gamification get in the way? Of course. But it can alsorewards to warrant real competition. be a profound tool in the marketer’s toolbox. Consider adding game design to the marketing skill set — and treat it like creativity, flexibility, tenacity and any other must-have 5. COOPERATION in the marketing superpower set. Applying what we’ve learned from games to advertising creative, the tracking of marketing efforts and the brand itself is interesting. If it’s also fun, thenThrow “teams” into a competition and all of a sudden everything it becomes very interesting.is more intense. As much as people like to compete, they liketo achieve things together even more, and social games have OUTLOOK REPORT | VOL 10 61

It’s Not Enough to Be Liked — Getting Serious About SocialWRITTEN BY will be using social media in some way by next year. (80 percent already do.) But according to a recent PRWeek report, more than Chris Bowler a third of all companies don’t have a point person responsible for VP, Social Media social media within their organizations, let alone the commitment @BUCKETQUIZ that calls for more than a solitary person for social media. We’ve outlined three areas of focus around strategic social media for marketing organizations, some immediate ways to get there and how to integrate agencies with an in-house staff. All CMOs want the same thing: to make their organizations much more customer- centric rather than focused on products and channels. But to embrace the customer today means getting much more serious about social media. As we continue to see, social media transforms not only the way brands communicate, but also encompasses other marketing functions including customer service,READ MORE research, social databasing and product development. Social media continues to rapidly evolve. We know from eMarketer that nearly 90 Scan the QR code percent of U.S. companies will be using social media in some way by next year. to explore additional content associated (80 percent already do.)1 But according to a recent PRWeek report, more than with this article. a third of all companies don’t have a point person responsible for social media within their organization, let alone the commitment that calls for more than 1 “Social Media Survey 2010,” PRWeek, September 1, 2010, http://www.prweekus.com/ pages/login.aspx?returl=/social-media-survey-2010-the-social-connection/article/177511/ &pagetypeid=28&articleid=177511&accesslevel=2&expireddays=0&accessAndPrice=0. OUTLOOK REPORT | VOL 10 63

OVER of companies say they lack the people on their teams to manage channels in the social space. a single person to manage social media. The reality is that many “likers,” which is something truly remarkable in such a short companies are still experimenting and delegating social media time.2 And while fan count isn’t the best gauge of an effective to junior staff and a patchwork of agencies. That has to change social media program, it offers a great head start for a brand if brands are going to take full advantage of the power of to activate this new strategic asset. social media. Consider how shabbily most brands organize around this Here are three areas of focus on strategic social media for asset. Many outsource this increasingly important platform marketing organizations, some immediate ways to get there to an outside agency. And it’s not just Facebook. Management and how to integrate agencies with an in-house staff. of Twitter profiles and YouTube channels are also being outsourced. What should be a core in-house function, 1. EMBRACE YOUR NEW STRATEGIC ASSET — A FACEBOOK is relegated to the periphery, with only half-measures to deal BRAND COMMUNITY with ongoing customer service, fan activation and ultimately product and service innovation through community co-creation. The last few years of social media activity has rightly centered on Facebook, the largest platform. We’ve progressed from Of course, many brands find an agency to offer these services the creation of brand pages as an experiment and come to because the brand can’t staff these social media channels the understanding that today these pages are strategic assets properly. According to Forrester, more than 50 percent of in the form of large-scale communities. Among the top 100 companies say they lack the people on their teams to manage brands today, the average fan base amounts to over 7,000,000 channels in the social space.3 And agencies are all too eager 2 “PageData,” Inside Network, August 2011, http://pagedata.appdata.com/. 3 Sean Corcoran and Christine Spivey Overby, June 2, 2011, “Accelerating Your Social Maturity,” Forrester, http://www.forrester.com/rb/Research/accelerating_social_maturity/q/id/59690/t/2#figure3.64 IT’S NOT ENOUGH TO BE LIKED — GETTING SERIOUS ABOUT SOCIAL

to sell-in another service offering. (Full disclosure: Razorfish using Facebook as a channel for communication, where contentprovides community management services and currently and interaction is aimlessly posted and fan accumulation becomesmanages several types of social media platforms on behalf of the mere end goal. The real purpose is to identify and developour clients.) But the nature of this outsourcing needs to evolve. the unifying concept for why a consumer should and wouldPhilosophically, a brand should manage its own community — interact with the brand in a social way. Sometimes this is obvious,providing transparency and authenticity to its customer base, especially for high-interest brands, but it’s much more challengingas well as operational efficiency. Agency community managers for Consumer Packaged Goods (CPG) brands where gettingcan get in the way, creating a barrier between the brand and beyond the product is essential for true success. And typicallyits customer. this approach not only defines a brand’s social media efforts, but also their digital marketing efforts as a whole.It’s not as difficult today for an organization to hire seasonedcommunity managers as it may have been just a few years back. OPPORTUNISTIC OVERSIGHT. While brands should focus onWe are seeing resumes from candidates who manage social ongoing community management, the agency shadows themedia channels for small companies now looking to step up brand team looking for strategic and tactical opportunitiesto bigger brands. Posting an opening on Monster or Mashable to add value to the conversation and content. Taking advantageis often a way to get things started. The big decision in hiring of in-the-moment opportunities, such as a brand mention bythe right resource centers around a candidate’s ability to blog/ a celebrity on Twitter or a relevant video that’s getting tractionpost/tweet in the right social voice for the brand — this skill is on YouTube, are a few examples where agency resourcesan art, not a science, and shouldn’t tilt all the way to an overly should provide another set of eyes and ears for the brand team.polished and copy-written approach. A framework for this “and pounce” approach can easily be set up immediately.Another consideration is where within the organization theseresources should reside. We see lots of different configurations 2. INFUSE SOCIAL RESEARCH INTO THE MARKETING ORGANIZATIONhere. To be truly serious about social media, we advocate dedicatedroles, starting within the marketing team, for community managers. The social research space is still in its infancy, but brandsDeVry University, a client, has created a successful model where need to rapidly infuse the various elements of social mediathree community managers — each aligned to key audiences intelligence into their marketing and business process.of students, alumni and prospects — reside within the marketing Let’s start with listening. While conversational monitoringdepartment and report up to a director of social media. around a brand’s products and competition is standardEven though an organization may have an in-house social operating procedure, true listening hasn’t impacted mostmedia team, an agency still has an important role to play. organizations yet. At Razorﬁsh, we are testing listening researchBut this role should be strategic and creative, acting behind to inform a number of different types of marketing functions.the scenes as a force multiplier, rather than replacement for Take media planning, for example. While the traditionala brand’s direct participation. approach to developing a media plan is first to analyze how a specific audience can be targeted across a range of mediaHere are some key ways in which an agency can shift from tactical options — including TV programming, print vehicle and digitalcommunity management to strategic community development: channels — listening research provides a whole new approach. Armed with listening data, the media planner can determineSTRATEGIC ACTIVATION. By representing the consumer, the agency where conversations around an industry category is takingis in an ideal position to deﬁne the role that social media can play place, and therefore where a paid message may find morefor the client’s brand and business. This process gets beyond receptivity, or where launching a social media program might OUTLOOK REPORT | VOL 10 65

Which is worse: a brand starting out with few fans and followers, or a brand with millions who are treated as if they are indistinguishable from one another? spur engagement for the brand. For Best Buy, social listening START WITH A BASIC LISTENING AUDIT. This can be a brief report techniques were used to identify partnership opportunities that determines who is talking about your brand, category and in the gaming space such as Comic-Con. Razorﬁsh gathered competitors over a short look-back window of, say, three months insight around hardcore gamers — determining what events to a year, in order to capture seasonality of conversation. This and game titles drove the largest spikes in relevant discussion. isn’t rocket science, rather a tried and true way to get grounded By partnering with such events, Best Buy was able to create in the conversation. Even for socially established brands, ask brand affiliation with gamers and generate authentic gaming yourself: When was the last time you conducted a point-in-time content that could then be redistributed through earned listening audit? and paid channels. USE A HYBRID APPROACH TO LISTENING. The growing need for Another way we are testing listening research is rapid insight conversation monitoring measurement and mining has led to development. A recent poll conducted on one of our client’s a flurry of new social listening tools, many of which have very Facebook pages yielded more than 1,000 comments in less unique capabilities. For example, Radian6 has access to one than 24 hours. These comments provided a wealth of insight of the largest data pools and satisfies monitoring requirements, into how customers use this product, which strategists and but NetBase takes a conversation quality approach and uses planners can use to inform future marketing programs and natural language processing to identify key themes and categorize even product innovation. We know we’ll see rapid insight sentiment. However, neither tool is effective without the analysis development evolve into research dashboards, piping this of a subject matter expert. The most important tool when trying real-time information directly to the planning and strategy to distill millions of pieces of social conversations is a pair of teams and allowing follow-up questions back to the community. human eyes. We recommend taking a hybrid approach to social listening by choosing tools like NetBase, which can categorize How to make this happen in your organization? Here are some content by sentiment and discussion theme, while also employing key ways in which social research can be infused into the an analyst who is immersed in the brand to put the findings marketing process quickly: into context.66 IT’S NOT ENOUGH TO BE LIKED — GETTING SERIOUS ABOUT SOCIAL

ANALYZE FACEBOOK INSIGHTS. Compare Facebook to your other What’s missing is an understanding of the customer’s needs,communication channels and you might find that your fans why they became and continue to be a fan of the brand andare different than the consumers you think you’re targeting. how they influence one another. This is as simple as socialAnd then solve for why. For a Kellogg Company brand, we personification. Armed with this information, brands can tailordiscovered that the audience the brand wanted to target — their interaction more specifically. Yes, it’s difficult to segmentmen, ages 18-24 — was very different from the fans of their today, but this is going to change as social networks evolve.Facebook page, which was skewing 90 percent female. This Case in point: Google+ and its model of Circles. Over time,naturally leads to a shift in social voice and content creation. this characterization of a person’s social relationships may allow a closer, more personalized interaction between customers3. GET ON THE PATH TO TRUE SOCIAL INFLUENCE MARKETING and brands as well. We aren’t there yet, but the concept behind Circles is our future.Day by day, brands continue to fine-tune ways to engage theircustomers in the social space. But too often this process involves Waiting around the corner, then, is greater intelligence onthrowing content against the proverbial wall, and just seeing a brand’s social graph, which quickly leads to an understandingwhat sticks. Even when the best social editorial calendars of what the most important influencers are. More importantly,are developed and deployed, we still aren’t starting from we will be able to have granularity around influencers ina place of strategic insight and personalized engagement. a segmented way. For example, we will have ways to activateHowever, it’s not as if brands aren’t successful with this the “deal-seeking influencers” looking to make noise aboutgeneralist approach — they continue to grow their fan base. a promotion, or the “category enthusiast” inﬂuencers, hungry for new product news and willing to share it with their circle.Ask yourself which is worse: a brand starting out with few fansand followers, or a brand with millions of fans that are treated How to start down this path for your organization? Here areas if they are indistinguishable from one another? some key first steps: OUTLOOK REPORT | VOL 10 67

FAN CATEGORIZATION. At a basic level, this is about how GET FAMILIAR WITH GOOGLE+. While user adoption and usage a customer wants to interact with a brand in social media. is still an issue, Google is re-architecting how we group our Do they want help with customer service issues, receive product friends and colleagues through Circles. If you haven’t tried information or get special offers? Start by stepping back it yet, give it a test run. and look at customer behaviors that inform how to structure community content. A great first step might be to assess user Three listening tools to watch: posts and comments and categorize them by interest. Next, design polls to further gauge areas of interest to the fan base. NETBASE: Best-in-class natural language processing that helps categorize sentiment by theme and intensity. SMART DATA COLLECTION. Another way to understand your fan EVOLVE24: Strong social listening capabilities — large data base is to ask for user data when appropriate. Signing up to pool, topic categorization, trend analysis and the ability receive special offers or exclusive content is a no-brainer, but to merge digital and traditional media data, which is a very it’s surprising how many brands don’t take advantage of this unique feature. opportunity. By providing different opportunities to collect an email address, users begin to self-categorize by interest. SENTIMENT 360: Semantic AI-based sentiment analysis Having opted-in to a particular interest — for example, new that provides a high degree of accuracy (industry leader), product information — you can now deliver more relevant while also automatically ranking content for relevance communications. In turn, as users talk and share this information and conversation type. across their social networks, you have the beginnings of a tagged influencer database.68 IT’S NOT ENOUGH TO BE LIKED — GETTING SERIOUS ABOUT SOCIAL

Controlling the Retail Environment Through Digital Brand Immersion Although touch screens have dramatically altered consumerWRITTEN BY expectations, retailers have mostly struggled to deploy innovative digital experiences at scale beyond basic store navigation or Jonathan Hull the occasional integration of tablets. In a world where everything VP, Emerging Experiences is increasingly available everywhere, wowing customers to drive @HULLJON sales is more important than ever. As a result, innovative digital experiences are increasingly challenged to move from the lab or the presentation deck to the sales floor. We have identified five factors to drive implementation and move from prototype to improved customer experience. Retailers have lost control of their stores. For that, you can blame the smartphone. The proliferation of the iPhone and Android-based devices has dramatically altered consumer expectations and behaviors. Life is increasingly lived online and mobile devices act as always-there, always-on valets. In just about any environment, people want to be online — communicating, sharing and researching. This is especially true in stores, where consumers can use their mobile Web browsers and apps to compare prices and products across retailers. When threatenedREAD MORE with commoditization, retailers see their margins come under pressure from being the lowest price option or price matching. And what’s strange is that the store owners are letting this happen by not giving shoppers the digital experiences Scan the QR code they so clearly want. Some of the more progressive retailers and brands have tried to explore additional content associated to regain some control and become more digitally interactive in-store. However, with this article. in talking with our retail clients, they often cite past failures and/or implementation constraints as primary reasons why they haven’t made much progress. OUTLOOK REPORT | VOL 10 71

To be successful, retailers and brands must value the creation of an experience over the enabling of technologies. A big distraction that keeps some retailers from making progress To help get there, we’ve identiﬁed ﬁve factors for driving adoption is their Apple Store envy. Almost every retailer we’ve worked and dealing with implementation constraints while creating what with cites the Apple Store as best-in-class, the benchmark for we call the “brand wow effect” within the retail environment. what they aspire to be. This is a head scratcher. While there’s 1. LEVERAGE THE PHYSICAL no doubting that the Apple Store model gets many things right, it also has its shortcomings — There are no immersive digital For retailers, brick-and-mortar stores still have two big advantages: experiences in the Apple Store. Customers interact directly with physical space and sales staff. Physical stores offer a huge the products, which is good, but there’s no way to compare home-field advantage and, even though consumers are more Apple computers to PCs. There is no way to digitally configure informed and digitally connected, they still seek out the in-store and personalize products, and no articulation of the Apple value shopping experience. Why? Because there’s no better way proposition or how Apple makes your life better. This leads to tangibly experience a product prior to purchase. There’s many retailers to conclude, “If Apple doesn’t feel immersive also social and entertainment value that consumers place digitally in-store then why should we?” on shopping experiences. So retailers should look to digitally So how does Apple get away with this? Because they’re Apple. enhance, not replace, the shopping experience. Cupertino has several advantages over the average retailer: For brands, differentiation is difficult when similar products strong brand affinity, sexy product lines, knowledgeable, are compared side by side. Immersive digital experiences are enthusiastic and digitally-enabled sales associates and strong a great tool for educating consumers on the value proposition customer support. The cold, hard truth is that the vast majority of products as well as cross-selling accessories. We have of retailers can never be like the Apple Store. But retailers can observed that digital experiences can lead to an 11 percent deploy immersive digital experiences to inspire customers, increase in the average basket and a 20 percent increase elevate their products and educate consumers. Wannabes in accessory sales. need to forget the Apple Store and create their own digital retail identity.72 CONTROLLING THE RETAIL ENVIRONMENT THROUGH DIGITAL BRAND IMMERSION

One of the best uses of immersive digital in-store is to serve they’re engaging in an experience as opposed to experiencingthe demand for personalization. Consumers want configurable, a technology — a key to driving adoption. It’s surprising howpersonalized products but they struggle with complex buying many companies get this wrong.decisions. Interactive touchscreens and gestural experiences A good history lesson in getting it wrong is the failure of theare excellent for providing customers with the ability to configure first-generation kiosk, one of the most cited reasons why retailersand personalize products to fit their needs. That’s something that have failed at digital in-store are reluctant to do it again.smartphones don’t do well. These experiences create a deeper Most kiosks were simply an idea the online channel teams —affinity for a retailer or brand, leading to up to a 10 percent not the retail teams — dreamt up to gain a Web site presenceincrease in customer satisfaction. in stores. The draw of easy implementation and the repurposingOne of the biggest myths about immersive digital in-store is that of the online investment was irresistible. So they packed theirit’s focused on self service. Actually, the opposite is the case stores with cheap kiosks made of pressboard and Formicain the retail world. Retailers in general are not looking to add that were outfitted with a browser-equipped PC, a low-res CRTstaff, but almost every retailer is looking to make their sales monitor, mouse and keyboard. Then, they waited for the ordersassociates more effective. Burberry has equipped associates to flow in. They’re still waiting.in China with iPads to provide better access to online and offline Why did they fail? Customers didn’t use them. Why didn’tinventories, while JCPenney has done the same to assist with customers use them? Because the experiences sucked. Lessoncomplicated bridal jewelry purchases. learned, successful implementations of technology do notWhether it be arming sales associates with tablets or providing determine success — customer adoption determines success.touchscreens for consumers to co-experience, the results have Many retailers never stopped to wonder why a customer wouldaveraged a 4 percent increase in sales associate satisfaction stand in front of a Web site in a store when they could surf theand less turnover. According to Deloitte, retail leads all industries Internet from the comfort and privacy of their own home. Theyin adopting tablets. Their study predicts that 25 percent of all ignored the fact that the retail experience is unique and special.tablet computers will be bought by businesses this year and There are specific reasons why customers are there in the firstthe number will continue to rise.1 place. The chief result was thousands of ugly kiosks sitting in the corner unplugged and collecting dust.2. VALUE THE EXPERIENCE OVER THE TECHNOLOGY To be successful, retailers and brands must value the creationIt’s the customer experience — not the technology — that of an experience over the enabling of technologies. Even today,makes the difference. Customers shop in stores for reasons there is a wide disparity between retail technology spend andranging from pure utility to entertainment. Customers shopping experience spend. Large retailers and brands budget tens ofout of necessity don’t care about technology, they just want the millions of dollars on hardware and technology to outfit theirexperience to be easy. Customers shopping for entertainment stores, but only spend tens of thousands of dollars on theare seeking pleasure, and technology must enable that experiences. Since adoption is the primary key to success,experience. A retail experience done right is an experience the imbalance between technology and experience budgetsthat takes advantage of ubiquitous computing; where technology must shift. Customers don’t care what technology is underfits into the human environment instead of humans being forced the covers. If an experience provides value, they’ll adoptto use technology. Put another way, it’s when consumers know 1 Jeffrey Grau, “How the iPad is Transforming Retail,” eMarketer, May 1, 2011. OUTLOOK REPORT | VOL 10 73

it. According to eMarketer, “Retailers are looking to digital effectively, it needs to be more immersive and more engaging technology to help influence consumer decisions at the shelf than your customer’s mobile device. level, while also aiming to streamline and ease the shopping Size does matter — attraction and engagement are more keys to process. Consumers are also receptive to digital technologies adoption. Big, high-definition digital displays are hard to ignore deployed in-store when they receive a tangible benefit.” 2 but they must enable an experience that helps customers connect 3. BE AS COOL AS (IF NOT COOLER THAN) A SMARTPHONE with a brand. For example, JCPenney’s in-store deployment of its Findmore smart ﬁxture experience inspires customers to digitally These days, digital in-store has to be at least as cool as the shop by look — leveraging a 42” high-resolution touchscreen, device your customers are carrying in their purse or pocket. rich content and an extended online and offline assortment. This might seem contrary to the statement above; valuing Immersive digital experiences have a 53 percent higher attraction experience over technology. On the contrary, it’s not what the rate over traditional digital signage. To be clear, we’re talking technology is or how it works; it’s what the technology does. about inspiring customers in order to drive sales, not servicing The smartphone does a hell of a lot for a device that costs customers like they’re at an ATM. (That said, it’s worth noting a few hundred bucks. It’s a portable communication device, that digital is great for servicing customers as long as the data store and entertainment platform with tons of utility. experience is private and optimized for the relevant task at hand.) So why not just enable mobile apps in stores? Because customers For driving sales, it’s all about digital experiences that attract did not go to the store to use their mobile phones. They’re there and engage customers. However, that’s not to say every retailer to shop and experience shopping. Digital needs to complement needs to panel the walls with HDTVs. First, focus on getting and enhance the retail shopping experience, and to do so the experience right: Immersive digital experiences need to 2 Tobi Elkin, “Shopper Marketing Insight: Embracing Digital Touchpoints,” eMarketer, January 7, 2011.74 CONTROLLING THE RETAIL ENVIRONMENT THROUGH DIGITAL BRAND IMMERSION

A big distraction that keeps some retailers from making progress is their Apple Store envy.be discoverable and unfold through rich and pleasurable paths. a printer, then swivels their chair to manually enter the orderThen, test and measure different form factors to see what produces into a couple of other systems. In today’s IT world, this old-the highest payback. school approach is cost effective, if not innovative.4. HIGH TECH IS NOT ALWAYS GOOD TECH Cloud computing also offers an IT shortcut in many situations. In the past year, Razorfish leveraged the cloud to successfullyAnother often-cited reason why brands and retailers don’t have launch 5,000 Windows Phone 7 touchscreens into the globalimmersive digital experiences in-store is due to IT infrastructure retail market in eight countries and nine languages. Workinglimitations. Every business wants an elegant, service-oriented against severe retailer infrastructure constraints across the globe,IT infrastructure where all data is available in real-time but few the solution hosted analytics and content management in thehave it. The digital ecosystem is changing too quickly to wait cloud and the experience was deployed in a six-month period.for IT to get their ducks in a row. To make progress quickly inthe digital space, companies need to embrace some oldie-but- The moral of the story is that retailers shouldn’t be afraid to kickgoodie, low-tech solutions and leverage cloud computing. the IT integration can down the road. The low-tech solution is often the right one for businesses, and there are plenty that areOne of the most low-tech, yet innovative, approaches to system tried and true, from batch processing to manual intervention.integration came from a large retail telecommunications brand The only must-have system is a solid measurement frameworkthat recently went through a major acquisition. The IT integration where performance and success is measured — and hostedprice tag of enabling every digital order to seamlessly flow in the cloud, if necessary.through the system was $125 million. A quick cost-benefitanalysis showed that it was much less expensive to hire staff 5. PILOT DON’T PROTOTYPEto manually process digital orders that fall out of the systemover a 10-year period. The process is nicknamed “swivel-chair,” The ideal approach to getting immersive digital experiencesreferring to how an associate pulls an order exception off into retail stores is to align against a well-defined, overarching OUTLOOK REPORT | VOL 10 75

If the goal is to get something into market quickly, then you should pilot. Don’t waste time and budget on a prototype. strategy or vision. Since the digital retail landscape is evolving idea, chances are someone else is too — probably a competitor. quickly, any vision needs to be mapped out quickly — a matter Our point of view is that prototypes are only useful for proving of weeks, not months. However, the realities of the retail business functionality that: 1) is absolutely critical to success and and the need to get something done quickly often outweigh 2) carries a sufﬁcient risk of failure. If neither of these are true, the luxury of developing an overarching strategy. We commonly Razorfish strongly advocates piloting over prototyping. we hear from our retail clients: If the goal is to get something to market quickly, then you “We want to get innovative ideas to market quickly.” should pilot. Don’t waste time and budget on a prototype. “What we need is a clickable prototype to show our Pilots carry higher upfront costs because the experiences must executives.” be developed to the point where it starts and ends logically for “If the prototype is successful, we may get buy-in for a customer. And pilots have to be fully tested. However, a large-scale rollout.” only pilot experiences provide learnings from real customers interacting in retail environments. The costs of pilots can It’s true that most of our clients need to introduce innovative be limited by keeping the scope to core functionality and digital experiences into the market quickly, but it’s not true a statistically significant number of stores. For example, that they need a prototype. What they need is a pilot. a 1,000-store retailer may be able to limit a pilot to only four Following a prototype methodology is the most time-consuming or five stores for six weeks and still provide sufficient learnings and costly path for getting digital retail experiences to market. in which broader conclusions can be drawn. Prototypes are usually exercises in technology and since they The Razorfish approach for getting immersive digital into retail never enter the market, there’s not a lot to learn and business is to do so quickly, with the goal of learning and generating effectiveness is not measured. Another disadvantage of prototypes buzz. Since it’s just a pilot, there’s no need to boil the ocean is the risk of someone beating you to market. If you’re onto a good right out of the gate. Keep the experiences concise and aligned76 CONTROLLING THE RETAIL ENVIRONMENT THROUGH DIGITAL BRAND IMMERSION

to key success metrics where performance is measured. Take a for a sales associate to manually update a few pilot experienceslow-tech, low-cost approach to integration and kick the systems via “sneakernet” for six weeks, than to integrate to retailerintegration down the road. It’s usually much more cost effective back-end systems.Dos and don’ts Dos Don’ts Quickly pilot experiences in real stores with Waste time with prototypes unless there’s a high risk real customers. that critical functionality won’t prove out. Pursue low-tech, low-cost integration methods for Wait for IT or elegantly integrate with retail systems pilot experiences. until a pilot proves out. Keep experiences focused and aligned against Try to boil the ocean, solve every customer problem success metrics. and answer every question in a single experience. Focus on the experience more than the technology. Confuse technical implementation success with overall success. Wow customers with kick-ass experiences better than Overly rely on mobile or put the online experience what they can’t do on their smartphones. in store as-is. Admire the Apple Store. Try to be the Apple Store. OUTLOOK REPORT | VOL 10 77

Performance Marketing Must Die Digital technology has rendered the sales process transparent.WRITTEN BY Brands that can recognize this fact have an enormous opportunity. How the brand wants consumers to feel, what it wants shareholders Adam Heimlich to believe, the government to do, the news media to report — VP, Search and Performance Marketing are all revealed in a single set of search results. To effectively sell @ADAMHEIMLICH within this churning ecosystem of overtly targeted and obviously unintended messages requires organizational confidence and openness. Methodically insulated from ideas and salesmanship, the performance marketer is positioned to distract organizations from the imminent threat of a revolution in consumer perception, caused by digital media. Have you ever received an email offer that looked good until you searched the name of the product? Ever visited the site of an iconic brand and found it cheap? Have you seen a funny commercial from a company with an infuriating online application process? Have you had trouble finding a brand on your mobile browser because sales affiliates masquerade as it? Can you name a brand that interacts in the same personality it broadcasts?READ MORE The source of all this dissonance: Digital technology has rendered the sales process transparent. Scan the QR code Brands that can recognize this fact have an enormous opportunity, and no use to explore additional content associated for what we call performance marketing, which refers to DR, search, display with this article. advertising and social media. However, it actually describes a set of activities inadvertently designed to deny the reality of a transparent sales process. OUTLOOK REPORT | VOL 10 79

Introduce the right motivation, the right skills and the right process for media optimization. The problem with the performance marketing organization is previously imaginable, smart brands assume any consumer its separation from the sales, service and merchandising teams — might see any message, regardless of whether a message is which is to say, from everyone directly involved with customers intended for them. These brands aspire to sell with nothing to in any capacity. The performance marketing team is also hide. The assumption behind performance marketing, in contrast, traditionally walled off from second-hand research into is that inconsistent, inferior or irritating online communications customers and their preferences, which features insights are no more dangerous than a bit of junk mail. of value for creatives, whose task of connecting emotionally Brands that issue communications for specific purposes are, is widely perceived to be the opposite of performance marketing. in fact, mostly creating awareness — not of the brand’s “story” Methodically insulated from ideas and salesmanship, the but of its value, which tends to make for a more interesting performance marketer is positioned to distract organizations narrative. How the brand hopes consumers will feel, how it from the imminent revolution in consumer perception caused actually regards them, what it wants shareholders to believe, by digital media. what it wants the government to do and what it wants the news media to report are all are revealed in a single set of search The reality results. To effectively sell within this churning ecosystem of Today, everyone sees brands naked, except their marketing overtly targeted and obviously unintended messages requires executives, who praise the lavish new clothes of performance. organizational confidence and openness. Sales transparency means the end of efficacious channel Performance marketing teams, on the other hand, sustain marketing. The salient point of a channel is physical antiquated beliefs in messaging and measurement, separate conﬁnement — as a metaphor for media, it makes as much from sales and service. They reenact a historical drama of sense as “dialing” a phone. Because messages spill out sequenced stimulus and response, pretending that their of their containers in a manner more un-channel-like than audience is playing within the arbitrary rules they’ve created.80 PERFORMANCE MARKETING MUST DIE

The word “performance” itself accidentally attests to the exclusively on online sales or some other isolated measure oftheatrical nature of digital media “roles.” The ostensible actor activity. Brand affinity, customer retention and creative teams’is not prospects or customers, but a featureless outline of their ability to influence and persuade are optimized separately andactivity captured in data. It’s a shadow play, designed to fool slowly, with data sets less fresh or actionable than what isand delight a willing audience. collected constantly through digital channels.For example, every Razorfish client has goals around customer To retool the optimization process to account for all marketingacquisition and retention. But almost no Razorfish clients task goals simultaneously, a CMO must task channel teams withtheir performance teams with optimizing media toward these expressing shared goals in compatible — which usuallygoals, though the data is always accessible. Similarly, every means chiefly digital — terms. That is, if reach is a proxyRazorfish client wants their Web site to engage visitors, yet for effectiveness, the effect should be validated. While paidnearly all performance managers ignore their bounce rates. search collects sales, its brand impact can’t be ignored.And all performance clients want more digital sales, but none It may seem easier to manage against baseline costs andtry to discover the optimal context, sequence and content conversions, but customers aren’t as numb as marketersof messages that lead to digital sales. are to the sense that a company is chronically undervaluingBrands’ willingness to buy into performance marketing despite digital operations or brand building. They know when theits inability to harness the power of digital gives the game away. company Web site is useless, or they’re getting hit with 10Their function is to keep the problem under the rug for now, discount offers a day. Transparency means that biased orand to carry the blame for “underperformance” should a more arbitrary communication choices will play out in public. Withoutadaptive competitor enter the market. consistency of measurement, there is no justification for valuing any marketing action over any other. Additionally, there is noThe solution basis for optimizing marketing actions in combination across channels, which is how they are always experienced nowadays.Replacing performance marketing with something that canimpact the bottom line is a matter of three corrections: Introduce This requires big change. And there will be chafing.the right motivation, the right skills and the right process for A performance marketer veering away from the usual charademedia optimization. is like a retail cashier reallocated to the sales floor, only worse. Although no VP is responsible for addressing total brandMotivation can only come from the top. If the one or two leaders perception in a customer setting, brands’ service staffs effectivelyresponsible for all the customer interactions influenced by or have that job. Compare their qualifications for meeting customersmeasured in digital media don’t acknowledge that transparency in their space to those of the performance marketer, whosemakes performance counterproductive, no one can. That’s the putative value is rarified “expertise” with spreadsheetsfirst step toward dismantling performance marketing’s regime and software.of specialized expertise and fragmented accountability. Implementing the right skills starts with a reassessment ofTo supply the right rationale, leadership must specify goals the value of quantitative experts to digital marketing efforts.for all media — paid, earned and owned, online and offline. There is no doubt that data analysis and predictive modelingNote that a CMO’s request to assess how its various media are important. No less certain is that a feel for what’sefforts function together cannot be met under existing corporate behind activity data and a knack for imagining scenarios notstructures. Generally, the performance team has broadly applicable explicitly supported by the numbers are also required fordata, while its people function as a specialized machine focused media optimization. Many marketing organizations staff for OUTLOOK REPORT | VOL 10 81

targeted digital media as if its challenges were linear, and the The right process for digital media optimization features universal optimization process mechanical. Early successes in social accessibility to data feedback and common knowledge of goals. media have clarified how unspecialized and playful in its A marketing organization in which teams keep secrets from approach even a very serious interactive brand should appear. each other is unlikely to optimize transparent communications. That comes from an appreciation for the softer side of digital. On the other hand, shared responsibility for published results sets good teachers free. Where goals are intertwined, such as Get started brand perception and retention, site engagement and product awareness, or SEO rank and social campaign adoption, A good place is to start is including people with sales and collaboration is easily incentivized. Where interests compete, creative experience on the optimization team. However, the such as share of voice versus lead conversion efficiency, turning point in digital marketing skills correction comes from leadership must be accountable for balancing power, and for leadership that is as engrossed in misses, as it is in hits. trade-off decisions aligned with current business strategy. Brands that want marketers to automatically deal out optimal Automatic optimization, far from a mechanical specialty, responses to customer actions task them with learning above all is mostly engaged marketers entitled to act. else. It’s in the broad application of patterns of consumer action to brand operations that marketing results can be dramatically An organization so adapted to current media reality would find improved, so aspire to replace performers with teachers. it hard to ascertain where its digital optimization team begins and ends. Like its customers, the marketing department A necessary casualty of a shift from expert posturing to reflexive would be constantly aware of what it’s trying to do and why. learning should be in the performance marketer’s toolset. If the Competitors who place accountability for digital success performance data software is too old to support channel- in a dungeon where no idea or insight can penetrate will start agnostic feedback for holistic optimization, it should probably to look shackled indeed. be scrapped. The good news is the replacement can be much more user-friendly. Software built for performance marketers tends to be opaque because performance marketing itself was designed to deny visibility.82 PERFORMANCE MARKETING MUST DIE

Toward a New Global Digital Agency Structure While digital efforts are increasingly integrated into the coreWRITTEN BY duties of global marketers, Razorfish has found marketing executives continuing to express a high degree of frustration Ken Hong with the number of partners and complexity associated with Managing Director, Razorfish China managing digital programs globally. Razorfish has identified LINKEDIN.COM/IN/KENLIZHOUHONG the disadvantages of traditional models, driving factors that put those models under intense pressure and potential solutionsWITH CONTRIBUTOR to the problems, including the centers of excellence model. William Lidstone Executive VP, Matching luggage might be a good travel strategy, but it comes up short as an Razorfish International organizational principle for a global ad campaign. That desire to have all the @WILLIAMLIDSTONE creative around the world look like it’s part of a set created in the same factory, by the same designer, is an old one. And yet, it lingers as digital efforts are increasingly integrated into the core duties of global marketers. The effect, we’ve found, is that marketing executives are frustrated with the number of partners needed to manage global, digital programs and the complexity it breeds. Old structures created to localize traditional media like print and out-of-home often create mediocre digital creative, inefficiency and quality control problems.READ MORE Clearly, a new model is needed. It has to be lean, yet with a big enough footprint to ensure global brand consistency. And it needs to be efficiently organized so Scan the QR code it can deal with one of the biggest challenges facing digital advertising — global to explore additional content associated scarcity of talent. We believe that the centers of excellence model that’s popping with this article. up more and more is a viable replacement for the bloated structures of yesterday, but before we get to that let’s examine the shortcomings of current models. OUTLOOK REPORT | VOL 10 85

Old models global, digital executives to be assigned to local markets, or for marketers in India to request an equivalent standard of digital There are three traditional models, each with major disadvantages: creativity and quality as they see in the U.S. or Europe. 1. GLOBAL CONTROL WITH LOCAL TRANSCREATION/LOCALIZATION 3. HYBRID While this helps ensure brand and message consistency, it largely When implemented well, the hybrid approach allows local ignores the often vastly different ways consumers engage via flexibility to react to local market needs, while maintaining digital channels in local markets — both in terms of content and brand consistency and countering some of the redundancy that context. As a result, digital campaigns become less impactful comes with the purely local approach. However, the shortage as they are rolled-out across geographies. For example, not of experienced digital talent beyond the realm of production only will social media have a larger portion inside the marketing is a real challenge for this model in many markets. As a result, mix in China, Western markets are not familiar with local social locally driven digital campaigns tend to be fairly tactical in media properties. A campaign cooked up in the U.S. or Europe nature — particularly in emerging markets — and miss the and then localized for China might not account for this. impact they could have by fully leveraging global digital expertise to amplify the campaign. 2. FULL LOCAL LEADERSHIP These models are under intense pressure. First, there’s a shortage This clearly makes marketing programs more relevant in local of talent and diversity in local markets. Even in the most mature markets, but runs the risk of losing out on building a consistent markets where agencies not only compete against each other, global brand experience, and it often leads to a high degree but with clients, media owners, start-ups, technology firms, of inefficiency due to duplicated efforts and investments. In etc., the pool is dry. The challenge in emerging markets is even addition, the availability of digital talent varies between markets. more severe. In addition, the types of talents and skills that It is not uncommon, for example, for Russian brands to request are available in different markets can vary signiﬁcantly. It doesn’t86 TOWARD A NEW GLOBAL DIGITAL AGENCY STRUCTURE

Global hubs Seattle London Shanghai Australiahelp that a broad spectrum of digital expertise is needed. The a market leader in cloud computing worldwide. There is nofragmentation within the sector is enormous and, combined with fixed formula for how to set up such an entity and its size andthe speed of change in media, technology and consumer behavior, organizational structure will depend on the subject, the local/is confronting marketers with a high degree of complexity. regional market needs and its geographic scope.Another challenge is finding the balance between commodity Step one is to analyze existing talent in key markets so thatservices and true differentiating offer. Given digital’s relative there’s a basis to extend and build from, and so that there’syouth, marketers often struggle to draw the line between a well-respected leader to attract talent. Assess the availabilitytechnology/creative production and innovation. Finally, there and diversity of talent in the respective local markets beforeare vast differences by markets. The digital media diet, digital deciding on a hub location. Once the hub is established,media properties, technology adoption and content preferences a concerted effort is needed to bundle activities there so asfrequently vary by country and need to be factored into not to undermine the efforts of building a scale in certain areas.campaign planning and execution. China is a good example. While it’s a well-known fact that China lacks local, digital talent in general, thanks to its fastA new model emerges growth and abundant opportunities, it has become a talent magnet for the region. More and more talent from markets likeIn response to the shortcoming of the traditional structures Hong Kong, Taiwan and Singapore are flowing into China andand the challenges in designing and deploying impactful digital making up an ever-increasing portion of the workforce. In fact,programs, we see a new model emerging; a structure around the most successful marketers and agencies in China todaycenters of excellence — such as emerging experiences, social are those who can construct effective teams that consistmedia, media creativity, analytics, etc. — often in support of the of talent from different markets in the region.hybrid model. In other words, a center of excellence as a unitbased on a clearly defined vision and goal, such as becoming This approach allows agencies to attract specialized talent at scale into core locations around the globe. These regional OUTLOOK REPORT | VOL 10 87

A new model is needed. It has to be lean, yet with a big enough footprint to ensure global brand consistency. centers in turn partner closely with local market teams to design So next time when choosing a global digital agency partner, and build breakthrough campaigns. It goes without saying that remember to ask the following questions: local offices still need to employ key digital talent locally but it alleviates (to some extent), the massive shortcomings in skilled Where are your centers of excellence globally? digital marketers and increases the ability to manage complexity. Why did you select those locations? The new digital model also builds on the learning that designing What talent and skills do you have in key local markets and implementing global campaigns no longer mandates physical and how do the centers partner with local offices? presence in every single market; this is particularly true for tier-two How have you delivered digital innovation — marketers. When Tourism New Zealand set out to launch its with positive impact to the bottom line — for clients? digitally driven global marketing campaign, it initially engaged What are examples of digital campaigns you executed multiple Razorfish offices to plan and execute the campaigns with significant impact on brand level metrics? in parallel. While they had great results in some markets, others were more challenging. Throughout the process, several offices Regardless of what new approach wins, the increased spend emerged with strong and complimentary skills. We both realized in digital, combined with ongoing shifts in the technology, a “hub-n-spoke” model with distinct centers of excellence consumer, and media landscapes will likely lead to more probably made more sense. Working together, we established pressure on traditional models in the foreseeable future. hubs in Seattle, London and Shanghai to manage their global The jury is still out on the center of excellence model, but there campaign. Success no longer depends on the number of people is increasing evidence that it’s an efficient way to manage per market; having physical presence does not equal local, digital the complexities of a global campaign. skills. We have already seen improvements on multiple fronts like communication efﬁciency and integrated campaign planning.88 TOWARD A NEW GLOBAL DIGITAL AGENCY STRUCTURE

Limited Time to Prepare for Unlimited Potential of Mobile Mobile offers unprecedented reach to marketers, providingWRITTEN BY access to consumers anywhere and anytime. Mobile is now driving a pace of change that is so fast that projections beyond Paul Gelb two years are so unreliable that they can only be considered VP, Mobile Practice conjecture. But make no mistake, mobile will one day surpass @PAULGELB television’s ad spend. Marketers’ greatest challenge in this decade will be to prepare their companies for a shift in their business that is unparalleled in terms of speed and scale. Mobile media has reached a crossroads reminiscent of Bill Gates’ famous insight from 1996, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10. Don’t let yourself be lulled into inaction.” This trend was evident in the evolution of online media and appears to be repeating itself with mobile. Unrealistic short-term expectations aren’t met and that leads to dismissive attitudes and underinvestment in preparing for significant long-term change. The unprecedented, dizzying pace of mobile technology advancement and consumer adoption will make mobile the most disruptive mass medium, with wide-ranging effects for both advertisers and consumers. Mobile’s unique functionality creates the potential for more effective and efficient advertisingREAD MORE than ever before. Yet, marketers are still struggling to find operational models that can execute effectively and efficiently across traditional media and online. In the face Scan the QR code of these difficulties, marketers must learn from the mistakes made a decade ago, to explore additional because future consequences will be more severe. content associated with this article. We believe that mobile spending will surpass not only Internet ad spending, but also television, and have calculated a forecast for when this could occur based OUTLOOK REPORT | VOL 10 91

on reasonable assumptions. Our analysis is described in detail rapid shifts in consumer behavior toward mobile usage. on page 97. The conservative estimate was 12 years and the If the pace of growth for the mobile channel is higher than aggressive estimate was 10 years. However, we don’t believe it was online, it is more important to determine how to be better that identifying the date has any inherent value. prepared this time to execute effectively and efficiently than to focus on an arbitrary industry juncture. Mobile forecasts have consistently been unreliable and underestimated. For example, in 2008, the projected number Assessing comparable impact of Internet ad spend of Apple mobile operating system (iOS) app downloads by 2010 was 200 million. However, the actual number of downloads 1 One of the most important parts of preparing for change is reached 14 billion, 70 times the amount forecasted just two identifying what is different and what remains the same. Online years earlier. The worst predictions are inaccurate predictions. growth is a valuable base upon which to assess the potential long-term impact of mobile. Any discussion about the real or More importantly, it won’t matter if this transition occurs in 10 perceived impact of mobile must address skepticism of its years or 20 years. Recommendations for individual clients have predecessor. Declarations in the late 90s that the Internet would never been contingent on mass adoption by the industry rapidly disrupt traditional media channels and capture their ad spend at large. Our decision making process is consistently focused are still considered by many marketers to have been unfounded. on identifying the right opportunities, allocating optimal resources and executing at a high level to generate the best measurable However, after just 16 years, Internet ad revenue was $26 billion return on investment. The greatest challenges in mobile have not in 2010. An apple to apples, inﬂation adjusted comparison shows been related to decisions about if and when to invest in mobile. that in their sixteenth year, broadcast and cable only generated Rather, our goals have been to enable clients to keep up with $16 billion and $7 billion, respectively.2 In 2010 a more signiﬁcant Annual $ ad avenue growth — first 14 years $23,448 $24,000 $21,206 $21,000 BROADCAST CABLE INTERNET $18,000 $16,879 $ MILLIONS $15,000 $13,259 $12,542 $11,717 $12,000 $10,870 $9,626 $9,766 $8,087 $8,188 $8,859 $9,000 $7,885 $7,134 $7,267 $6,557 $6,010 $6,501 $5,030 $4,816 $6,000 $4,621 $4,059 $3,698 $3,180 $3,654 $2,787 $2,495 $3,000 $358 $55 $1,012 $267 $2,162 $907 $1,920 $1,853 $2,080 $1,190 $1,580 $147 $295 $499 $745 $0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 SOURCES: IAB INTERNET AD REVENUE REPORT, PRICEWATERHOUSECOOPERS LLP, UNIVERSAL MCCANN 1 Horace Dediu, “More than 60 Apps Have been Downloaded for Every iOS Device Sold,” asymco.com, January, 16, 2011, http://www.asymco.com/2011/01/16/more-than-60-apps-have-been-downloaded-for-every-ios-device-sold/. 2 A.K. Palit, “Internet Ad Revenue Data Shows Signs of Re-Acceleration,” www.iab.net, April 13, 2011, http://www.greencrestcapital.com/blog/internet-ad-revenue-data-shows-signs-of-re-acceleration/.92 LIMITED TIME TO PREPARE FOR UNLIMITED POTENTIAL OF MOBILE

milestone was reached. Internet ad revenue surpassed several Where subscribers frequently access Internettraditional media segments, including newspapers, magazines on their mobile deviceand radio. It took more than 40 years for TV (broadcast and cable) 100%to surpass newspaper advertising revenue.3 (See chart at left.) 89% 71%Its growth was as responsible for Internet’s rise in advertising 75% 69% 66% 66% In retail locationsmarket share as the decline of other media channels. Ad spendon local TV, syndicated TV, newspaper, magazine, radio and 50% From home In the car Outdoorsdirectory decreased 35 percent, more than $43.8 billion, between At work 25%2000 and 2010.4 Newspaper advertising had a particularly sharpdecline, decreasing 54 percent in just five years. Much of the 0%investment in these traditional media channels has shifted to onlinead expenditures as well as digital marketing initiatives that aren’teven included in ad spending figures like email marketing, digitalcoupons or digital promotions. When these additional segments of Why mobile is differentdigital marketing are counted, online investment nearly mirrored the By almost every metric, mobile outperforms online advertising.decline of major traditional channels, totaling $47.6 billion in 2010.5 Mobile will be the first truly mass media, offering unprecedentedDespite significant growth in online ad spend, traditional media reach efficiency to marketers. Advertisers can also generatewill still account for an estimated 80 percent of advertising dollars greater effectiveness from brand engagement and conversions.in 2011.6 Cable and network television were notable exceptions The increased value of mobile for advertisers should lead to higherto online’s disruption of traditional media. In 2010, TV captured growth rates and larger budget shifts from traditional media.the largest ad spend market share — two times online’s market Mobile subscriber penetration is now 101 percent (averageshare. Marketers that could not effectively shift budget to digital person has more than one mobile phone) compared to 75retained traditional media channels alternatives. Consequently, percent for Internet. 9 Users are rapidly adopting smartphoneeven though Internet accounted for 25.2 percent of adults’ daily and tablet devices, which support consumption behavior andmedia consumption time in 2010, it received just 18.7 percent ad formats required for significant ad spending. Apple’s iOSof U.S. ad spending. 7 However, the rate of ad spend shift devices have become the fastest adopted consumer electronicsto digital is growing and TV has become increasingly vulnerable products in history. By early 2012, there will be 54 million tabletto disruption. Estimated growth in 2011 for Internet advertising users and 50 percent of mobile subscribers will have smartphonesis 20 percent compared to 4 percent for TV.8 in the U.S.10 By 2014, the number of mobile Internet users is 3 Nieman Journalism Lab, http://www.niemanlab.org/2009/08/can-newspaper-publishers-survive-this-revenue-freefall-perhaps-if-they- embrace-a-digital-future/. 4 Harold L. Vogel, Entertainment Industry Economics, Cambridge University Press. 5 Jack Myers Media Business Report 2020 Vision: Media, Advertising and Marketing Economic Health Report 2000-2020. 6 Nicole Perrin, “Traditional Media: Dollars and Attention Shift to Digital,” eMarketer, May 18, 2011, http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000792. 7 “Ad Dollars Still Not Following Online and Mobile Usage,” eMarketer, March 31, 2011, http://totalaccess.emarketer.com/Article.aspx?R =1008311&dsNav=Ntk:basic|internet+25.2+adults%E2%80%99+daily+media+consumption+time+in+2010|1|,Rpp:50,Ro:-1. 8 “Comparative Estimates,” eMarketer, http://totalaccess.emarketer.com/EssentialMetrics.aspx. 9 “Comparative Estimates,” eMarketer, http://totalaccess.emarketer.com/EssentialMetrics.aspx. 10 “A Portrait of Today’s Tablet User,” Online Publishers Association (OPA), June 2011, http://onlinepubs.ehclients.com/images/pdf/ MMF-OPA_--_Portait_of_Todays_Tablet_User_--_Jun11_(Final-Public)3.pdf. OUTLOOK REPORT | VOL 10 93

projected to surpass desktop Internet users.11 Recently, several Mobile and online advertising’s effect on brand carriers began offering smartphones for free with a two-year contract, eliminating any price impact on the smartphone versus feature phone purchase decision. Thus, smartphone growth Ad awareness will continue, making the ownership of smartphones or tablets 23 nearly ubiquitous in the U.S. 8 AVERAGE DELTA* ABOVE CONTROL Message association 14 Mobile offers unique access to consumers; capable of reaching 4 them anywhere and anytime. Subscribers frequently access Purchase intent 11 Internet on their mobile device from home (89 percent), at work 3 (66 percent), in the car (66 percent), outdoors (69 percent) and Aided awareness 8 in retail locations (71 percent). Smartphone users spend 100 4 minutes a day on mobile Web and apps, a 100 percent increase Brand favorability 8 since December 2010. Tablet usage varies, but a reasonable 3 MOBILE NORMS estimate is two hours a day. Thus, mobile is rapidly approaching 8 ONLINE NORMS two and a half hours of daily Internet usage. Mobile already 12 3 accounts for 20 percent of marketing emails opened in 2011 *DELTA DEFINED AS A POINT DIFFERENCE IN EXPOSED VS. CONTROL GROUPS and is projected to generate 20 percent of searches in 2012.13 SOURCE: INSIGHTEXPRESS, “MOBILE INSIGHTNORMS,” JAN. 7, 2011 Mobile’s share of email and search should grow as smartphone and tablet adoption increases. Assessing potential of budget shift from TV Mobile devices also enable the addition of location targeting to demographics, content and time of day. This creates the Network and cable ad spend resiliency has not been based upon opportunity to significantly increase contextual relevance with their superior value for marketers. Rather, cable and broadcast dynamic ads. And touch screen interactivity provides a unique networks leveraged large audience inventory scarcity to generate and entertaining lean forward experience. Mobile outperforms significantly higher prices. From 1980 to 2008 the average online across all of the major brand engagement metrics, number of households viewing TV per minute decreased 71 including ad awareness, aided awareness, unaided awareness, percent while the CPM increased 692 percent, according message association, brand favorability and purchase intent. to Nielsen. TV achieved this unique advertising paradox by The average click through rate on mobile ads is 8.7 times higher reducing lower paying advertiser categories through attrition and than online advertisements.14 increasing the share of revenues from higher paying advertisers. The remaining advertisers place a considerable value on being able to reach a broad national audience in a time sensitive manner. 11 “Internet Trends,” Morgan Stanley, April 12, 2010. 12 “Mobile Apps Put the Web in Their Rear-View Mirror,” Flurry, June 20, 2011, http://blog.flurry.com/ bid/63907/Mobile-Apps-Put-the-Web-in-Their-Rear-view-Mirror. 13 “Jack Myers Video Report: $54 Billion in Digital Advertising and Marketing: Where is it Coming From?” Jackmyers.com, June 15, 2011, http://www.jackmyers.com/commentary/jackmyers-think-tank/Jack- Myers-Video-Report--54-Billion-in-Digital-Advertising-and-Marketing-Where-Is-It-Coming-From.html. 14 “Mobile Ads Outperform Standard Banners,” eMarketer, July 13, 2011, http://totalaccess.emarketer.com/ Article.aspx?R=1008494&dsNav=Ntk:basic|mobile+ctr|1|,Rpp:50,Ro:-1.94 LIMITED TIME TO PREPARE FOR UNLIMITED POTENTIAL OF MOBILE

The increase in price has been larger than losses from audience channels. Mobile traffic, search volume and click through ratesdecline. This tradeoff cannot be sustained indefinitely. Even the now peak from 7p.m. to 11p.m.21least price sensitive marketers will eventually become unwillingto pay for annual TV CPM increases as the audience size of the The most compelling support for mobile engagement superioritynetworks and their shows decrease. The 0.8 percent annual rate over TV comes from multitasking behavior. Admittedly, thereof decline from 2004 to 2010 clearly shows that TV ad economics have been just as many studies that claim that mobile has theare approaching a breaking point.15 highest engagement rate as there are studies that make the claim for TV. However, when mobile and TV are consumed atMobile is better positioned than online to capture market share the same time, mobile appears to capture the user’s attention.from TV. However, it is important to note that this discussion An Interpublic Group (IPG) study found that 94 percent ofof mobile and TV ad spend is limited to the context of devices. TV viewing is distracted by multitasking with another media.Many of the leading networks and cable Multiple System Operators Notably, smartphones were the largest distraction, accounting(MSOs) are well positioned to capture ad spend that has shifted for 64 percent of user attention diversions from TV. It appearsto smartphones and tablets. By 2020, digital revenues are that a significant share of the attention decline occurs fromprojected to generate 26 percent of total broadcast network distractions during commercial breaks. For example, Yahoo!advertising, compared to only 4.1 percent of total network ad measured 5 to 20 percent increases in trafﬁc during ad breaksrevenues in 2010.16 for large TV events like the Academy Awards.22Mobile consumption is increasingly aligned with TV consumption. As the scale efﬁciencies decline on TV, advertisers will increasinglyMore than 86 percent of mobile Internet users surf the mobile look for opportunities to reach the most consumers whereWeb while watching TV.17 Consumption while watching TV now engagement is highest. As users continue to integrate mobileaccounts for 20 percent of smartphone use and 30 percent devices into TV consumption, the engagement and thus theof tablet use.18 Tablet consumption in particular aligns with ad spend will shift from the TV screen to mobile devices.traditional TV viewing behavior. Just as households often sharethe TV watching experience, 50 percent of iPad owners share Priority preparations for the long-term shift to mobiletheir iPad.19 Remarkably, 30 percent of applications on mobilephones owned by parents were downloaded by their children.20 REASSESSING INCENTIVES. Most organizations have established,In addition, primetime occurs during the same hours for both over many years of traditional media-focused marketing, 15 “U.S. Advertising and Marketing Spending, by Media, 2005-2011 (billions),” eMarketer, April 14, 2009, http://totalaccess.emarketer.com/Chart. aspx?R=84272&dsNav=Ntk:basic|US+Advertising+and+Marketing+Spending%2c+by+Media%2c+2005+2011+(billions)|1|,Rpp:50,Ro:-1. 16 “Jack Myers Video Report: $54 Billion in Digital Advertising and Marketing: Where is it Coming From?” Jackmyers.com, June 15, 2011, http:// www.jackmyers.com/commentary/jackmyers-think-tank/Jack-Myers-Video-Report--54-Billion-in-Digital-Advertising-and-Marketing-Where-Is-It- Coming-From.html. 17 “Mobile Internet — Delivering on the Promise of Mobile Advertising,” Yahoo!, March 2011, http://advertising.yahoo.com/industry-knowledge/ mobile-internet-whitepaper.html. 18 “In the U.S., Tablets are TV Buddies while eReaders Made Great Bedfellows,” May 19, 2011, Nielsen, http://blog.nielsen.com/nielsenwire/ online_mobile/in-the-u-s-tablets-are-tv-buddies-while-ereaders-make-great-bedfellows/. 19 “Tablet Opportunities for News Publishers,” INMA, January 26, 2011, http://www.inma.org/modules/store/index.cfm?action=store_ detail&pubid=107. 20 “U.S. Parents Say Almost a Third of the Apps on Their Phone Were Downloaded by Their Children,” Nielsen, April 27, 2011, http://blog.nielsen. com/nielsenwire/online_mobile/u-s-parents-say-almost-a-third-of-the-apps-on-their-phone-were-downloaded-their-children/. 21 Kunur Patel, “When’s the Prime Time in Mobile?”, TVWeek, http://www.tvweek.com/news/2011/07/whens_prime_time_in_mobile_sam.php. 22 “Mobile Internet — Delivering on the Promise of Mobile Advertising,” Yahoo!, March 2011, http://advertising.yahoo.com/industry-knowledge/ mobile-internet-whitepaper.html. OUTLOOK REPORT | VOL 10 95

incentives for internal marketing departments and external SECURING RESOURCES. Marketers will undoubtedly face agencies to promote behavior that maximizes performance. organizational resistance to the uncertainty that accompanies These incentives may not reward behavior required to execute a transition from the familiar traditional media to a transitional on mobile or across an increasingly fractured landscape. Internal state of mobile media. Convincing stakeholders of the value of and agency incentives must be evaluated and changed to align a shift in budget to mobile is not sufficient to initiate action. Even with the new marketing objectives. if every executive agrees in principle, action is not guaranteed. Taking funds away from one part of the organization requires EVALUATING TALENT. Many marketers and agencies have indisputable evidence of an increase in ROI. The best process spent decades focusing their expertise on cost reduction. to provide a performance-based case is through an iterative Traditional media has become commoditized and the benefit approach. Mobile executions should not be experiments. Each of a commodity cannot be increased. Also, the gains from mobile initiative must be viewed as a potential proof point in a marketing campaign are harder to measure than a reduction support of mobile. The ROI calculation of the performance from in cost. Thus, ROI increases on these channels have come the campaign or development project should be outlined before predominantly from reducing costs. However, the selections it begins. This output is an essential requirement for maintaining of internal team members and agencies that will be accountable momentum and obtaining access to larger investment resources for a strategic shift to mobile marketing must take into account as mobile needs increase exponentially over time. the required skills and expertise needed to create a completely new marketing product. Individuals and organizations must IDENTIFYING UNKNOWNS. At this stage in the evolution of be creative, entrepreneurial and capable of working in an mobile, knowing what you don’t know is just as valuable as unstructured environment. Thus, mobile teams must have what you do know. It is important to measure and obtain as much expertise in increasing the benefits side of the ROI equation. information as possible. Not every result can be predicted by a model, and many gains will not be immediately measurable. Yet, REALIGNING ORGANIZATIONAL STRUCTURE. Brands and agencies it is important to identify what you want to know, so that you know are often large organizations, which consist of specialized, what to look for as measurement capabilities improve, processes siloed departments. This structure is intended to increase are established and infrastructure is created. The pipes of the the efficiency of executing an unchanging workflow process. mobile ad industry aren’t broken — they are in the process of being However, determining how to execute a new type of marketing built. In many instances new ways of calculating performance in a dynamic environment requires more information sharing must be created as intermediary solutions. For example, it may across disciplines and the flexibility to respond to unforeseen not be possible to determine the value of a lead generated from challenges and opportunities. In a rapidly changing industry, mobile. To ensure that this outcome from the marketing program horizontal integration, rather than vertical siloes, increases is included in the ROI, the cost of generating the lead on another efficiency and speed. An internal cross-disciplinary leadership channel can be used instead. team should be created to facilitate information sharing. However, a decision maker must be selected. Input is The speed of change in media, technology and marketing has valuable but accountability is essential. Similarly, marketers redefined the causes of uncertainty, from doing something new, are best served by a single agency that has a large number to doing nothing at all. In this dynamic environment, success of experienced professionals in each discipline required to will not be the product of accurate short-term and long-term engage consumers on mobile. The value of this structure was market predictions. Rather, industry leadership will come from substantiated in the early years of TV, when creative and media companies that made sure that they didn’t have to. As Ray services were provided by the same agency. Kroc, the founder of McDonald’s, prophetically said, “I don’t know what we’ll be selling in the year 2000, but whatever it is, we’ll be selling more of it than anyone else.”96 LIMITED TIME TO PREPARE FOR UNLIMITED POTENTIAL OF MOBILE

Mobile and television ad spend estimatesBelow is a prediction of mobile and TV ad spending. We used of these mobile ad spend segment projections for 2020two methodologies to calculate future mobile ad spend to is $42.53 billion, which is only 1.3 percent higher than adensure that we’ve made reasonable assumptions, and then spend calculated for 2020 using the first methodology.calculated and compared an estimate of TV to see when mobilead spend could surpass TV. (See chart below.) Over the next 10 years, TV ad spend should decline. ZenithOptimedia estimates mobile ad spend will be $58.9 billion inThe first methodology is based on year-on-year growth rates 2011 and increase to $61.85 billion in 2012. The 4 percent growthfor the next 10 years, encompassing years 7 to 18 for the mobile in 2012 will be attributed to the Olympics and the presidentialad industry. From 2012 to 2014, we used Forrester’s projected election. However, we believe TV will decline 3.5 percent annuallyaverage mobile ad spend growth of 50 percent per year. We from 2013 to 2023, the same average rate of decline of local TV,used SNL Kagan’s projected mobile ad spend growth of 40 syndication TV, newspaper, magazine, radio and directory frompercent for 2015 to 2020. For mobile advertising’s years 16 2000 to 2010.25 Based on ZenithOptimedia’s estimate for 2012to 18, encompassing 2021 to 2024, we’ve assumed 20 percent TV ad spend and the aforementioned rate of decline assumptiongrowth, online’s current and projected growth for years 16 to for the following 11 years, TV ad spend in 2021, 2022 and 202318. Based on Forrester’s estimate for mobile ad spend in 2011, would be $44.88, $43.31 and $41.79 billion, respectively.$1.652 billion and the aforementioned growth rate assumptionsfor the next 12 years, mobile ad spend in 2021, 2022 and 2023 Based on the above assumptions and projections, mobile adwould be $50.4, $60.5 and $72.5 billion, respectively. spend will surpass TV ad spend in 10 years. Even if TV retained its 0.5 percent average ad spend growth rate from 2000 to 2010,To conﬁrm the accuracy of this mobile prediction we recalculated ad spend in 2021, 2022 and 2023 would be $64.68, $65.01 andit with a second methodology, projecting mobile’s share of ad $65.33 billion, respectively.26 This scenario has mobile ad spendspend by media segment. Email marketing spend is projected surpassing TV ad spend in 12 years, only a two-year delay.to be $34.6 billion in 2020. If mobile currently accounts for 20percent of opened marketing emails, that rate should at leastdouble when smartphone adoption increases. Mobile email Mobile Televisionspend in 20 years would be $13.84 billion, or 40 percent AGGRESSIVE CONSERVATIVE AGGRESSIVE CONSERVATIVEof the total spend. Search ad spend is projected to be $40.9 YEAR SPEND GROWTH SPEND GROWTH SPEND GROWTH SPEND GROWTHbillion in 2020. If mobile search is estimated to account for 2011 $1.65 125% $1.65 125% $58.90 4.0% $58.90 4.0% 2012 $2.48 50% $2.31 40% $61.85 5.0% $61.85 5.0%20 percent of searches in 2012, then a 40 percent share of ad 2013 $3.72 50% $3.24 40% $62.15 0.5% $59.68 -3.5%spend can also be applied to search. Mobile search ad spend 2014 $5.58 50% $4.53 40% $62.46 0.5% $57.59 -3.5% 2015 $7.81 40% $6.35 40% $62.78 0.5% $55.58 -3.5%would be $16.36 billion in 2020. 23 Finally, display advertising 2016 $10.93 40% $8.88 40% $63.09 0.5% $53.63 -3.5%is the last segment. Internet display is projected to be $12.33 2017 $15.30 40% $12.44 40% $63.41 0.5% $51.75 -3.5% 2018 $21.42 40% $17.41 40% $63.72 0.5% $49.94 -3.5%billion in 2011. 24 Since current growth trends support time 2019 $29.99 40% $24.38 40% $64.04 0.5% $48.19 -3.5%spent and penetration numbers for mobile that are equal 2020 $41.98 40% $34.13 40% $64.36 0.5% $46.51 -3.5% 2021 $50.38 20% $47.78 40% $64.68 0.5% $44.88 -3.5%to or surpass online by 2020, mobile display ad spend should 2022 $60.45 20% $57.34 20% $65.01 0.5% $43.31 -3.5%at least be equal to Internet display ad spend in 2011. The sum 2023 $72.54 20% $68.81 20% $65.33 0.5% $41.79 -3.5% *SPEND IN BILLIONS 23 “The Social Commerce Economy,” Jack Myers Media Business Report, August 23, 2011, http://jackmyers.v.reutersinsider.com/. 24 David Hallerman, “U.S. Online Ad Spending: The Floodgates Are Open,” eMarketer, June 29, 2011, http://totalaccess.emarketer.com/Reports/ Viewer.aspx?R=2000787. 25 Harold L. Vogel, Entertainment Industry Economics, Cambridge University Press. 26 “U.S. Advertising and Marketing Spending, by Media, 2005-2011 (billions),” eMarketer, April 14, 2009, http://totalaccess.emarketer.com/Chart. aspx?R=84272&dsNav=Ntk:basic|US+Advertising+and+Marketing+Spending%2c+by+Media%2c+2005+2011+(billions)|1|,Rpp:50,Ro:-1. OUTLOOK REPORT | VOL 10 97

How the Open API Movement Can Help Your Brand In an analysis of innovative companies, Razorfish has found thatWRITTEN BY it’s not just the organizational culture or leadership that creates innovation; it’s the willingness to allow consumers and developers Salim Hemdani Group VP, Experiences to identify new uses for existing data and infrastructure via open and Platforms digital services. Whether the goal is adding new revenue streams @SHEMDANI or extending global reach, embracing an open digital service model is an imperative step.WITH CONTRIBUTOR When executives are challenged to innovate, they often try to take old routes to Basel Salloum new business ideas. While analyzing innovative companies, we’ve found that it’s Group VP, Technology not just the organizational culture or leadership that creates innovation — it’s the LINKEDIN.COM/IN/SALLOUM willingness to allow consumers and developers to identify new uses for existing data and infrastructure via open APIs. Innovation leaders like Google, eBay and Twitter process billions of digital service calls every day, adding real business value to more categories and brands than once thought possible. Whether your goal is adding new revenue streams or extending global reach, embracing open APIs is a step you must consider to help ensure success. Scan the QR code on the left to view the video “What is Open? A simple descriptionREAD MORE of APIs.” For brands steeped in technology — like Best Buy, Netflix, eBay or Amazon — Scan the QR code this is easy. In the last few years, open API adoption has grown many times over. to explore additional content associated According to Programmableweb.com, in 2010, more than 2,800 brands offered with this article. data or service over open API. That means 25 times more brands are taking advantage of the open API movement than five years ago. But let’s not be fooled OUTLOOK REPORT | VOL 10 99

There’s a major opportunity for more traditionally minded brands to take advantage of open-source software development. by this growth. Razorfish’s analysis shows that this growth Thar’s gold in them thar hills comes mainly from Internet/social brands, and not from those that are considered traditional. Others may be scratching their In early 2000, businesses were breathing a sigh of relief after heads as they think about how open APIs and community the non-event that was Y2K, and the Internet bubble was still participation can help their traditional businesses. at its peak. On March 10, 2000, NASDAQ reached a record high of 5132.52. Stock investments were lucrative and the gold market We are living in a fast-changing environment with steady was depressed. In that economic environment, gold producer proliferation of applications, platforms and devices. Data Goldcorp Inc. was not only suffering from market trends, but also is growing, as are the number of transactions, and cloud from internal organizational issues. CEO Rob McEwen knew computing is making things easier and faster. On top of these his mines had great potential, but lacked resources to identify shifts, user expectations and behaviors are changing, too. This where to mine in the vast, 55,000-acre Red Lake area in calls for rapid and continuous innovation to maintain competitive Northwestern Ontario. Having learned about technological advantage. Keeping up with change is necessary, but shifting advances during a seminar at MIT, he was fascinated by the the focus of your workforce can be a major distraction. Opening open-source code movement and the success of Linux operating data and/or services to the larger community provides greater system, which programmers across the globe had built for free. access to community brainpower, thus, more opportunities. This concept of community involvement caught McEwen’s attention, after which he knew exactly what he needed to do. There’s a major opportunity for more traditionally minded brands to take advantage of exposing their data and/or services through At an industry meeting in March 2000, McEwen unveiled the open API. For evidence, look no further than a company “Goldcorp Challenge,” an open invitation to experts around engaged in one of the most traditional of business activities: the world to participate in a competition to help Goldcorp gold mining. identify where to mine. About 400MB of Goldcorp’s conﬁdential, proprietary geological data was made available to more than100 HOW THE OPEN API MOVEMENT CAN HELP YOUR BRAND

1,400 scientists, engineers and geologists from 50 countries available in the App Store since the launch of iPhone in 2007.around the world who downloaded the data and started virtual The developer community filled the gap.exploration. Within days Goldcorp started to receive entries. BRAND EQUITY. Utilizing open APIs can engage brand evangelistsThe winner was a collaboration of two groups in Australia —The firm formerly known as Fractal Graphics, and Taylor Wall in a meaningful way, creating stronger community and as& Associates, which together suggested five specific locations a result increases equity. Once the community is engaged,to mine and developed a powerful 3D, graphical depiction. Each the cycle of innovation grows exponentially. Facebook’s totalone of the locations yielded gold, and the Goldcorp Challenge user base increased four times in less than a year after May 24,changed the company’s fortune. In exchange for a small award 2007 — when the company announced the open platform forto the winners, Goldcorp found metal worth more than $6 billion. the developer community to build social applications. BRAND GOALS. Finally, open API allows staff and talent to focusSince then Goldcorp has seen its share price increase from thesingle digits to more than $50, and it has become the second- on brand goals because staff is less distracted by continuouslargest gold mining company by market capitalization. With noise in the technology landscape. Additionally, feedback frommines in Canada, the U.S. and Mexico, and a pipeline that the community helps facilitate better product roadmap planning.includes other spots in Latin America, it’s widely consideredan industry leader. How did it get there? By opening itself up How to do itto a community that could help it improve. The lesson here is Despite hard facts and evidence, traditional brands are warysimple — You don’t need to be an e-tailer or a country whose DNA of sharing proprietary data. There’s often an organizationalwas twirled together in Silicon Valley in order to take advantage inertia that slows the pace of change but, while change isof the wisdom of the crowds. When you recognize the value in hard, it is the only constant. There has been some progress,that wisdom and find a way to leverage it, the benefits are clear. especially in the healthcare and financial services industries — which traditionally resist such ideas — but the progress is minorOpen API benefits at best. A model of crawl-walk-run can help:NEW REVENUE STREAM. Using open APIs can create a new sales Start small. Open up one data set or service.channel. For instance, Best Buy’s platform, BBYOpen, allowsa worldwide community to freely access product information, Engage with the community and give people the freedomstore details and reviews via a set of RESTful APIs. This enables to express their needs and wants.developers to create apps that facilitate purchases from Best Seek feedback and track progress. Community feedback andBuy. The BBYOpen initiative started as a small IT venture — the experience that community creates can help make a casetoday it is one of the primary sales channels for the company. that can help move the organization in the right direction.COST SAVINGS. New device proliferation demands different Open API initiatives will not make you glamorous overnight.digital experiences around products across different interfaces. It is a slow process of energizing brand evangelists. In the nextHowever, creating unique experiences for each interface can few years, it will be de-facto to have a http://developer.<yourprove costly even for big brands. Open API allows developers brand name>.com entity. Smart brands will get there faster andto create those experiences free of charge. Twitter, for example, laggard brands will follow. It is up to you to decide where yourdidn’t launch its first official application for iPhone until 2010, brand falls.but a multitude of Twitter apps for the device have been OUTLOOK REPORT | VOL 10 101

Organizing for Digital Success Deep down, even digital agencies know that it takes more thanWRITTEN BY a few flashy new experiences to build real, long-term competitive advantage through digital. It’s not enough to deploy a suite of new Tim Perlstein platforms and programs; to reap the benefits, you’ve got to be Group VP, Strategy able to manage and evolve those assets over time. This requires LINKEDIN.COM/IN/TIMPERLSTEIN a set of new capabilities — and those capabilities don’t come from technology alone, but from the right combination of technology and human expertise, properly deployed and managed. We’ve Bethany Fenton outlined five common pitfalls to avoid on the way to digital leadership. VP, Experience LINKEDIN.COM/IN/BETHANYFENTON We digital agencies should do more to help clients build these new capabilities. Our visibility into many types of organizations gives us real-time insight into what’s working and, more often, what’s not. For this reason, savvy clients are increasingly seeking our advice as they consider how best to organize and manage the digital function. Most are hoping for a set of clear-cut best practices. But for such a young and rapidly evolving business discipline, obvious answers are few and far between. Deﬁning a “correct” structure for digitalREAD MORE requires a tailored solution that accounts for each organization’s unique structure, culture and existing practices. To date we’ve collected far more cautionary tales than genuine best practices, but looking across multiple industries and Scan the QR code organization types, a few general patterns start to emerge. Specifically, in to explore additional content associated debating how best to structure for digital, we’ve seen many organizations get with this article. stuck on solving one or more intractable problems that are actually less relevant to long-term progress than they initially seem. OUTLOOK REPORT | VOL 10 103

Digital is best understood not as a subset of marketing or IT, but as a new, separate animal. Here are five common pitfalls to avoid on the way to digital At the end of the day, digital is best understood not as a subset leadership: of marketing or IT, but as a new, separate animal. With strong team leadership and an effective executive sponsor, digital 1. OBSESSING ABOUT OWNERSHIP can, in theory, thrive under either umbrella — depending on the specifics of the organization, of course. Many organizations fret about which senior executive should “own” digital. Usually this comes down to the CMO or CIO. 2. POLISHING THE PLAN And while this is indeed an important, sensitive decision, we’ve seen that it can work both ways. The CMO versus CIO debate As with the CMO versus CIO debate, most organizations spend is a bit of a red herring, and if it goes on too long, becomes an inordinate amount of time defining and refining their digital a dangerous distraction from the real work at hand. For most roadmaps. We love these roadmaps and consider them an organizations, digital’s organizational home is ultimately less invaluable tool for communicating long-term plans and aligning important than the strength, capability and cohesion of the effort. However, we also know that technology moves quickly, digital team itself — regardless of where it resides. and that today’s brilliant three-year roadmap may start to look pretty silly around month 17. Yes, it’s essential to have a plan Furthermore, in either scenario we believe digital should be more to work and measure against. But it’s equally important to be different from its parent organization than it is alike. In general, able to track the market, react quickly and adapt as necessary. IT organizations value stability and security, while marketing Over the long haul, the ability to support rapid deployment, emphasizes speed, creativity and customer-centricity. The ideal testing and optimization of new experiences is far more important digital organization combines the technical capability of IT than perfect planning — and a far more important determinant with the customer sensitivity and agility of marketing — without of long-term digital success. getting bogged down by the legacy mind-sets, processes or politics of either function.104 ORGANIZING FOR DIGITAL SUCCESS

3. CHASING THE SHINY OBJECT 5. WALLOWING IN LEGACY IT ENVIRONMENTSIt’s unavoidable that as digital technology becomes more and Here’s an all-too-common scenario: The digital or marketing teammore complicated, digital organizations become more specialized wants to deploy a new platform or program, but can’t do soand functionally fragmented. The advent of significant new without changing or potentially destabilizing existing enterprisetechnologies often requires new organizational capabilities, architecture. IT wants to help, but the needed changes are partand additional people to handle specialized tasks. Think about of a bigger enterprise IT roadmap with multiple dependencieshow social media has made social listening and influencer and competing priorities. The requested digital changes mayoutreach must-haves. However, there’s a limit to the amount happen this year… or they may not, depending on how budgetsof subspecialization any team can afford to take on. More and other projects shake out. So the digital team gets stuckpeople means more management overhead — recruiting takes in an unwinnable tug of war with other enterprise priorities.time, integration can be complex and specialists are alwaysin short supply. If this sounds familiar, the good news is you’re not alone. The bad news is, the only real way out of this trap is aInstead of building sub-teams around every hot digital technology, fundamental replatforming that separates digital experiencesmart leaders identify emerging capabilities that will be important technologies from other enterprise IT systems as much asin the long term, and find ways to bake these abilities into the possible. For the most part, enterprise IT roadmaps are simplybroader team’s DNA. Sometimes, this may require adding new not fast enough or predictable enough to support customer-people; in other cases, new kinds of cross-training or smart centric digital programs.partnering may be more appropriate. Bottom line — If you buildyour organization around long-term capability requirements The key takeaway here is that technology architecture affectsrather than current trendy topics, you’ll be better positioned organizational effectiveness. Fortunately, there are waysfor long-term success (and won’t have to reorganize every time to divorce the Web presentation layer from other IT systems,a hot new technology emerges). and to develop an applications layer and APIs that allow the digital team to quickly deploy changes and experience upgrades4. STEERING BY COMMITTEE without causing harm to underlying enterprise systems with which they have to integrate. Creating this separation withinA surprising number of organizations still try to coordinate the technology stack can be a difficult, painful process, butdigital activity via cross-functional steering committees that worth the investment. And without this kind of architectureonly meet periodically. These are good forums for keeping running in the background, your digital team will be workingmultiple functions informed of digital trends and initiatives — at a competitive disadvantage right from the start.and to solicit their input on relevant tactics, such as compliancepolicies. However, they’re not an efﬁcient vehicle for establishing So what does work?strategy or managing day-to-day operations. Think of themas the “C” and the “I” in a Responsible, Accountable, Consulted, Every organization is different, and the “right” answer for yourInformed (RACI) chart — not the “A.” Digital teams need to business will depend much more on specific personalities andmove much more quickly and decisively than cross-functional individual skill sets than on any theory of organization. All thatcommittees usually can. So while it may be politically difficult said, we find most organizations need to do at least someto consolidate digital leadership under a single team leader of the following:or executive sponsor, the operational benefit is usually worththe pain. Implement some greater degree of centralization for digital across the enterprise to better coordinate strategy and realize platform efficiencies. OUTLOOK REPORT | VOL 10 105

Long-term, the ability to support rapid deployment, testing and optimization of new experiences is far more important than perfect planning. Improve connections between digital and the broader organization In defining solutions for specific clients looking to maximize through effective cross-functional governance structures and digital success, we analyze existing organizations across enlightened executive sponsorship. multiple dimensions, including leadership, structure, strategy, funding, roles and skills, processes, incentives and more. Build a more balanced, integrated skill set within the digital Our experience across multiple industries and companies team, encompassing both creative (marketing, user experience, allows us to offer an impartial, comparative perspective that design, content) and technical (presentation layer development, often helps clarify and resolve long-running internal debates. analytics) expertise. However, at the end of the day, we usually find that defining Find a strong, versatile, articulate leader to head up the an organizational plan for digital is actually the easy part. digital organization. Implementing that plan successfully within an existing structure, Allow C-level reporting (or at least visibility) for the digital culture, and business environment can often feel like the most team’s leader, in order to fully realize the transformative challenging digital deployment of all. But for organizations truly potential of digital as a growth driver for the total business. looking to leverage digital for long-term competitive advantage, the rewards are worth it.106 ORGANIZING FOR DIGITAL SUCCESS

Managing Digital at DeltaQ&A with Bob Kupbens, VP, eCommerce at Delta AirlinesRF: Tell us a bit about your digital team. What is its charter, RF: How do you keep digital initiatives aligned with activities and where does it “live” within the broader organization? in more traditional/non-digital businesses and channels?BK: Our digital team is a key part of our larger commercial BK: In our business, it is essential that customers are provided organization and is responsible for: 1) generating customer the same functionality across digital and non-digital channels sales revenue, 2) driving “effortless” customer service, and to avoid confusion. So we’ve designed our architecture to 3) improving the airport travel experience overall. Working support all channels. Our customers get the same information across multiple areas of Delta, our team is dedicated to and service for activities like checking in for a flight, providing our customers with digital options for getting “out regardless of whether they choose to see an agent at the of line and off the phone” and headed to their destination. counter, use a self-service kiosk at the airport, visit delta.com or use one of our mobile applications.RF: What’s working well within your current team, what have been some of the keys to success? RF: How does your team collaborate with related functions (including marketing and IT) in your organization?BK: We have moved from a mind-set of having channel-focused technology project managers to one of cross-channel product BK: We have a number of business metrics that drive our owners over the years. This shift allows us to better view shared success and promote taking ownership both within travel from a customer’s point of view and we look and across divisions. Our airport operations, marketing, at competitors, other industries and changing customer IT and ecommerce teams all have a commonly shared goal expectations while also focused on driving consistency of getting our customers through the experience quickly across channels. and easily and we all share in our collective successes. Also, Delta has a very lean organization, so collaborationRF: How does your company do strategic planning for digital? across functions is relatively easy. Who’s involved and what issues are typically considered? RF: How do you see your team evolving over the next oneBK: We are fortunate to have many sources of customer feedback, to two years? from daily verbatims to internal and external studies to our closed community of Delta digital advisors. We use all this BK: As consumer technology and customer expectations continue feedback as the starting point for where to focus our strategic to evolve, we will have to add expertise in developing areas planning, and then leverage our broader corporate goals to ensure we remain fresh. Currently, we’re focused to determine how digital can best help Delta meet them. on tablet and mobile, near field communications and We recently held a strategic planning session, which included merchandising. In addition, we’re always looking to add representatives from ecommerce, airport customer service, talented individuals from other industries to make sure product development and reservations to discuss where we aren’t overly airline-centric. we’re headed in digital — a truly cross-functional effort. OUTLOOK REPORT | VOL 10 107

Adam Heimlich VP, Search and Performance Marketing @ADAMHEIMLICH LINKEDIN.COM/IN/ADAMHEIMLICH Authors and I love to make the line on the chart go up and to the right. It’s fun, it’s rewarding and sometimes the power that comes from Contributors being able to do it for clients brings a chance to make the world just a little bit more awesome. As vice president of search and performance marketing in New York, I’m fortunate to lead part of the world’s greatest marketing team (if you measure by results): Razorfish Search. Check us out at razorfishsearch.com. I joined the agency in 2006 to help tackle the challenge of servicing Capital One. Previously I’d learned digital marketing at smaller agencies and a startup. Before that I spent a decade in print, mostly newspapers. At Razorfish, I’ve been a member of the Victoria’s Secret, Ralph Lauren, T. Rowe Price, Schering- Plough, Forest Laboratories, Starwood and ADT teams. I enjoy the beginning of campaigns, when we’re establishing relationships and identifying problems, as well as the mature stages, after the easy problems are solved and we rely on the strength of relationships to help brands adapt and not just adjust to the digital realm. (Like they said in the commercial — You’re soaking in it.) In Razorfish’s New York office, I’m active in trying to cultivate a learning environment, not only because it makes our people better, but also because it seems to be the best way to market nowadays. The most popular of the courses I designed is “Search & Sips,” a consulting/wine appreciation course based on McLuhan’s theory of “Total Involvement” and my personal belief in wine as media. It’s very nearly as pretentious as it sounds. When I’m not obsessively optimizing, I enjoy bicycling, traveling, cooking and otherwise partaking in the futuristic, global village lifestyle of Planet Brooklyn — it’s the next media capital, mark my words.108 AUTHORS AND CONTRIBUTORS

Basel Salloum Bethany Fenton Group VP, Technology VP, Experience LINKEDIN.COM/IN/SALLOUM LINKEDIN.COM/IN/BETHANYFENTONWhen I first arrived in America 24 years ago, one of my primary I started frustrating my parents and teachers with “why” andgoals was to become a “computer expert,” so I followed the “how” questions about everything at a very early age. And thelogical path of academia and set out to receive a BS in computer answers were frequently followed with more “why’s.” I mayscience from Northeastern University. My “professional career” have discovered the “five why’s” by the age of 10. It wasn’tbegan during my first year of college, when I held various senior insolence — it was curiosity. I loved understanding why andpositions in the fast food industry that ranged from baking how things work.bread to restocking bars. However, during my second yearas an undergraduate, I landed a job as an associate software That curiosity combined with my experience working for oneengineer, coding kernel-level programs using my least favorite of the first interactive agencies in the world, Fry Inc., led me toprogramming language: assembly. This changed everything. an emerging discipline now known as user experience. While at Fry, I worked with premier retailers to establish some of the firstSoon after, I worked as a software engineer at Sybase, and then ecommerce sites including Spiegel and Crate and Barrel.made the leap from the product side to the service side by joining When I joined Razorfish, I had a mentor who exposed me toCambridge Technology Partners as a technology architect. There, “user research.” We went into peoples’ homes to observe howI designed and built a number of transactional client server- and they put outfits together. While that seems like a menial task,web-based systems before joining Scient as a senior technology the struggles, behaviors and emotional investment that wentarchitect, helping companies join the digital movement. along with every outfit decision was striking and game-changing. Physical or digital, people’s needs were not being met.The path from Scient to Razorfish can be traced to mergers So a fork-in-the-road moment for me was the realization thatand acquisitions where I played various roles from technology you can be in the business of best practices, live by analystdirector to discipline lead to vice president of technology to evaluations and one-up the competition, or you can make thingsmy present role. better — in a way that’s meaningful for businesses and people. They’re not mutually exclusive.As for my hobbies (and what’s a bio without hobbies?), I hitthe mountain biking trails whenever I can. I also enjoy honing As vice president of experience for Razorfish, I work with clientsmy driving (and sometimes racing) skills on the weekend while and teams to find meaningful solutions for businesses and people.transporting my kids to their many activities on time (something It’s exciting, frustrating and heartbreaking — but at the end ofthat requires a great deal of precise event planning and time the day, it’s rewarding.coordination — and often negotiation). Having been in the industry for 16 years, I’ve also realized the importance of down time. It’s all relative though — my vacation primarily consists of bi-annual fitness adventures in places like Brazil and/or Costa Rica where I get to challenge my fear of heights on a daily basis. Oddly relaxing in context. OUTLOOK REPORT | VOL 10 109

Bob Lord Brandon Geary Global CEO SVP, Strategy @RWLORD @BRANDGEAR LINKEDIN.COM/IN/MBAHBS1990 As an engineer out of college, I was very much intrigued by the As the leader of strategy for the Americas at Razorfish, I’m promise that marketing holds. I decided to go back to school to tasked with combining the insight of user experience, strategy study business, specifically marketing. After getting my MBA, I and account planning to deliver strategic recommendations for joined the consulting business. Little did I know that marketing a variety of Fortune 100 companies, while helping shape the and technology would eventually collide. future of the Razorfish business. It just sounds like a big job. I love working with Nike, Best Buy, Levi’s, MillerCoors, Microsoft, After stints in leading positions at consulting firms, I landed at HP and Nintendo. I’ve helped them pull their digital strategy Razorfish in 1999 as chief operating officer. Back then, technology together and have guided them to early uses of social media, wasn’t advanced enough to deliver on brand promises and the behavioral targeting and mobile. bubble burst. But the past decade has truly seen the convergence of marketing and technology and in hindsight my early career Prior to joining Razorfish I was senior vice president of strategic experiences primed me for this shift. planning at a division of McCann Worldgroup, where we won Effies in 2003 and 2004 for Washington Mutual’s New York launch My job has evolved over the years; from chief operating officer, and home loan campaigns. Prior to McCann, I was marketing I became president of our east region for six years, before director at Fatbrain.com, an online seller of technology books becoming global CEO in 2009. The best part of my job is working and training, which was acquired by Barnes & Noble. I also with clients and our teams. I love selling new work, challenging held senior account management positions at McCann A&L ideas and driving innovation within the organization. Making and GMO in San Francisco. Despite my digital orientation, a difference to our clients and their bottom lines, and helping I do indeed read printed matter, and often use my phone for them communicate with consumers like never before — that’s calling my kids. where I get my energy. In addition to leading Razorfish globally, I’m a member of Publicis Groupe’s Strategic Leadership Team, and have a seat on the board of directors for Publicis Groupe’s VivaKi unit. I also sit on the board of directors for the Advertising Research Foundation and I’m an active member of the TED community. Whenever I can, I also enjoy biking, surfing and spending time with my family. I hold an MBA from Harvard Business School and a BS in engineering from Syracuse University.110 AUTHORS AND CONTRIBUTORS

Chris Bowler Frederic Bonn VP, Social Media Executive Creative Director @BUCKETQUIZ @FREDERICBONN BUCKETQUIZ.COM/A_HUNDRED_THINGS LINKEDIN.COM/IN/FREDERICBONNI believe social media doesn’t have to be complicated. It’s really I started my career at Publication Design, a firm that redesignsjust about being you — And that goes for brands and businesses, publications in France and the U.K. During that time I wastoo. The key is to offer something of value that others will respond immersed in the firm’s efforts to guide readers through content,to and share. grab their attention through copy and images, establish clear hierarchy and provide a flow through the experience — so movingI started my own version of social media a dozen years ago, to digital in 1997 was a logical transition. With a number ofwith a Web site that inspires others to create their own bucket colleagues and in partnership with Roger Black I opened thelists — the milestones and activities one wants to complete Interactive Bureau office in Paris.before they die. On the passion scale, this goes straight to thetop. Today, check out my blog and daily tweets. Since then, I’ve been traversing the Atlantic, working in New York, London, Paris then New York again. I moved from Euro RSCG toI bring this same fervor to my everyday work and believe that Ogilvy to Razorfish, and have led a wide variety of projects rangingeach client has something valuable to share that can also make from global digital platforms to innovative digital campaigns fora difference. Whether simply to provide some fun, offer a “deal” the likes of IBM and Volvo. Diverse experiences driven by greator provide a valued service, the key is to find the elements that creative ideas, from advertising to Web site design, from mobilemake a true connection. apps to branded content, from out-of-home to social media, have helped me think about communication as an integratedAt Razorfish, I lead our clients forward in ever-evolving social brand experience for users to engage with through entertainment,media channels — 85 percent of the time, this is acting as services and conversations.a cheerleader/evangelist/therapist/trailblazer to drive ideadevelopment and test-and-learn programs. This all started way- My work has been recognized at the most prestigious creativeback-when with online services like AOL and Prodigy, whose award shows (including Cannes Lions, Webby, Eurobest, Epica,first online ad campaigns I launched, and later, on the burgeoning LIA and FWA) and I’ve been a speaker and juror at variousInternet, where I introduced the first new product launch for industry events.a major appliance company. (What can I say? I like being first.) I live in Brooklyn with my wife and two sons, and keepMy background is in media. I started in offline advertising with a photographic report with other photographersCampbell Mithun in Minneapolis, before jumping into the digital (crossatlanticreport.posterous.com).pool at Agency.com, where I led the digital media and searchengine marketing practice. And occasionally, I’ve talked aboutmy circuitous experience at industry conferences such asSXSW, ad:tech and WOMMA.When I’m not working, I run. Nine marathons — so far. But runninga marathon is just one of those bucket list items many of ushave on our list of things to do before we die. I’ll ask you ifI get a chance: What’s on yours? OUTLOOK REPORT | VOL 10 111

Jeremy Lockhorn Jonathan Hull VP, Emerging Media VP, Emerging Experiences @NEWMEDIAGEEK @HULLJON EMERGINGEXPERIENCES.COM Between my title and my Twitter handle (@newmediageek), I like the word “ass.” it’s pretty easy to guess what I do. It’s a bit of a dream job I try to work it into every conversation I have. “That’s bad-ass,” sometimes — I monitor trends, meet with fascinating media “That was a cool-ass experience,” or one of my favorites, technology developers, and help our teams and our clients “Oh, that tastes like ass.” see, plan for and adapt to the future of media. And yet, as I heard a young entrepreneur once say, “Innovation is not a clean My first couple of jobs after getting my undergraduate degree sport.” Truer words were never spoken. Media innovation can were in big-ass IT consulting — Oracle and IBM Global Services. be messy, ugly, and laced with equal parts risk and uncertainty. I love technology and was riding the crazy-ass IT train of the 90s But it’s also incredibly rewarding, both for me personally, and but something was lacking — the human element. The question for clients that get it right and see the massive returns. then changed from, “What can people do with computers?” to, “What can computers do for people?” I’ve been at Razorfish for most of my career, having joined an agency startup called i-FRONTIER in 1997. Working out of a So I took a break from databases, app servers and integration spare bedroom in founder Brad Aronson’s condo was a unique architectures to get my MBA. Upon graduation I switched my experience — as was the opportunity to get involved in nearly focus to interactive marketing and joined Razorfish to ride the every side of the agency business as we grew from the two of .com wave. us to over 100 people before we were acquired by Avenue A and ultimately became Razorfish. Having survived the dumb-asses responsible for the .bomb era I moved past the browser a few years back and refocused on Making the move from Philadelphia to Seattle has been yet another immersive digital experiences. Why? Because the nature of the adventure, and I’ve since embraced the outdoor nature of the Web is device agnostic; a primary value proposition is to serve “Pac NW.” When I’m not at work, you might find me hiking, up exactly the same experience across any device. The problem skiing or camping. In fact, I sort of aspire to retire as a ski bum. was I like the technical gadgetry and gizmo-ness of devices Music is my other passion, and I just hope that all these years almost as much as saying the word “ass.” of pounding on the laptop keyboard doesn’t give my guitar fingers too much trouble. As vice president of emerging experiences (EE) at Razorfish I lead one of the most innovative teams within any agency. We’re a cross-functional team of strategists, designers and technologists. The EE team is constantly looking at new technologies, devices and digital design paradigms. But while we love research and development, we also keep it real. The biggest impact we’re making is helping our clients get immersive digital experiences into the market. We get to work with the best people and the best clients in the world — it’s simply kick-ass.112 AUTHORS AND CONTRIBUTORS

Ken Hong Marc Sanford, PhD Managing Director, Razorfish China Director, Customer Insight Group LINKEDIN.COM/IN/KENLIZHOUHONG @MMSANFORD LINKEDIN.COM/IN/MARCSANFORDI am probably not your typical ad man. Although I’ve spent I have been with Razorfish for more than four years andmore than 13 years in marketing, eight of which have been in specialize in delivering custom analytics solutions to both internaldigital, I approach marketing from a strategy and analytics and external clients. While the insights and analytics group hasperspective rather than the typical creative angle. Over the many standard approaches to solving clients’ problems,years, I’ve helped many clients including Microsoft, Nike, sometimes these issues don’t fit neatly into these approaches.Unilever, Best Buy, Expedia and L’Oreal develop and executeglobal and local digital marketing programs. I have also held I delight in working directly with clients, learning about theirvarious positions in marketing and finance functions within business challenges and designing business and analyticsFortune 500 companies. I currently lead Razorfish in China, solutions. Examples of such innovation come from leading thewhere I set the strategic direction for the agency, and manage development of the personalization offering within our agency,day-to-day operations. building a team of skilled folks to create the generational tag for tracing and measuring social behavior through the spread ofOriginally from Shanghai, I have spent 17 years studying and social applications (patent pending), and partnering to helpworking in Switzerland and the U.S. Before returning to develop and implement the razorfishOPENTM framework acrossShanghai to run Razorﬁsh, I was the vice president of strategy, several clients. During the past four years or so, I’ve workedanalytics and innovation in Razorfish’s Seattle office. with a wide range of clients including Microsoft, Best Buy, Levis, CLEAR, Disney and others.When I’m not trying to figure out how to bring more digitalinnovation to our clients, I love playing golf and traveling. So Prior to joining Razorfish I received my PhD in Sociology fromI’ve concluded that playing golf in Hawaii is the most efficient the University of Chicago and worked at the University ofway to spend my vacations. Maryland as an adjunct professor of sociology. My dissertation was a study of purchasing patterns of roughly 800,000 people over a two-year time period in the city of Chicago. I revealed unique patterns of similarity in consumption through cluster analysis, logit and probit regressions, adjacency analysis and other statistical and ethnographic techniques. Outside of work I am a new father enjoying the special moments a new father has with his son, and learning to cope with less sleep. I enjoy watching the University of Washington Huskies and spending time with my wife. I also try to play bluegrass guitar when I am able to find some free time. OUTLOOK REPORT | VOL 10 113

Mark Taylor Paul Gelb VP, Customer Insight Group VP, Mobile Practice LINKEDIN.COM/IN/MARKCHRISTOPHERTAYLOR @PAULGELB LINKEDIN.COM/IN/PAULGELB I’m a big believer in customer-centric marketing to solve our I’ve had one of the more unique career paths at Razorfish; I clients’ business problems and help them bridge the gap started as an MBA intern in the strategy group and now I head between their brands and customers. up the agency’s mobile practice. My trajectory is undoubtedly a testament to Razorﬁsh’s ability to support personal development Since swapping tea bags for coffee beans as part of my and unconventional entrepreneurial pursuits. relocation from London to Seattle in 2007, I’ve learned the inner workings of ad-serving data, advanced analytics, and Big In my current role as vice president of mobile practice, I oversee Data-led solutions to address client challenges for the likes of a team that includes strategy, site/app development, messaging Microsoft, Best Buy, Staples and Intel. programs, media, search and ad creative. But mobile is more than my job; it’s a personal passion. I am, almost without exception, As vice president of the customer insight group, my team and I carrying at least four mobile devices: three smartphones and collaborate with other disciplines to translate business challenges a tablet. This contagious desire has led to an unrelenting output into holistic and market-first solutions for our clients across the of groundbreaking mobile work for almost every Razorfish. network. Part of this team’s role involves architecting actionable insights and implementing dynamic, targeted marketing strategies Specifically, we’ve developed 16 applications that were listed that deliver measurable results. as a top app or featured in the iTunes App Store, including the top branded application of 2008 and an iPad app that became Prior to joining Razorfish, I headed up customer experience at the number one free download. We’ve also designed some of Homechoice, the ﬁrst U.K. IPTV platform owned by Time Warner, the most successful mobile commerce sites to date, generating Sony, Disney and Chris Larson (Microsoft co-founder). I’ve also more than 15 percent conversion rates and more than $2 billion worked in senior management roles for Centrica, Organic Inc. in annual revenue. and SITEL Corporation, leading a variety of customer strategy engagements with Fortune 100/FTSE 100 companies. Our success has not gone unnoticed; our clients have won mobile marketer of the year, luxury mobile marketer of the year, and In my spare time, my wife does her best to get me to do more several min and Digiday awards. In 2010, I was the youngest yoga, and I’ve embraced U.S. MLS football (that’s “soccer” person awarded Mediaweek’s Media All-Star Award. My point of to you Americans) as a season ticket holder at the mighty view and industry projections have been sought out by The New Sounders FC. I also serve as an advisory board member for York Times, The Wall Street Journal, Forbes, Advertising Age, the University of Washington Business Extension Program. Forrester and Mobile Marketer. I’ve been identified as a thought leader in the industry with speaking engagements at SXSW, MMA, IAB and OMMA conferences. I have an MBA from the Anderson School of Business at UCLA and a BS in International Business and Macro-Economic Theory from the ILR School at Cornell University.114 AUTHORS AND CONTRIBUTORS

Pete Stein Pradeep Ananthapadmanabhan President, East Chief Technology Officer, VivaKi @PSTEIN211 LINKEDIN.COM/IN/PRADEEPANANTHI have always believed that the whole is greater than the sum As the chief technology officer for VivaKi, the division ofof its parts. That belief, along with a thirst for exploration, has Publicis Groupe that oversees digital and media, I’m responsibleguided my decisions throughout life. for envisioning and executing the engineering strategy that supports our suite of data-driven applications. This includesWhen I found the Internet, I knew that my affinity for being on high our digital advertising trading desk as well as one of the world’sperforming teams would be satisfied. This is a business where largest data warehousing/BI operations. Both are targeted attechnologists and marketers, creatives and project managers, increasing the ROI on advertising spend through the strategicmath geniuses and account people all must come together to use of technology.crack codes and solve riddles. Creating an environment wherethe best ideas can rise from the mosh pit is part art and part Before joining VivaKi in 2010, I was with Razorfish for more thanscience — and always interesting. six years, most recently as the group vice president of technology for the west region. In that capacity, I led a team of 30+ engineersAs for that thirst for exploration, I’ll never forget my first encounter who brought to life digital strategies for brands such as Singaporewith the Spyglass browser in 1995 — it was love at first sight. Airlines, the National Football League (NFL), Intel, MicrosoftI knew that the browser would open a whole new world and and Westfield.luckily for me, it keeps on changing. Every few years, the playingfield dramatically shifts, and to succeed you need to completely After completing my Master’s in Information Systems Managementre-orient yourself. from Carnegie Mellon, my first job was with NEC Solutions. My Web 1.0 portfolio includes developing and launching initiativesAs the president of the east for Razorfish, I am lucky to be able for Sun Microsystems and Wells Fargo, among others. Nowadays,to tap into my passions every day. I’m surrounded by talented the technologies that interest me most are enterprise contentpeople who share my belief in the power of collaboration. We management, cloud computing, touch frameworks, mobileget to work with some incredible brands like Mercedes-Benz USA, platforms and Web performance management.Unilever’s Axe, Citibank, Starwood and Ford Motor Company —brands that have all embraced winning through digital. While not thinking about terabytes and petabytes, you’ll find me watching long Bollywood movies, hiking some of the mostYou can find me on LinkedIn or on Twitter. And on the weekends beautiful trails of Northern California, or reading about timeyou can find me coaching the power of team play to one of my and space and wondering if we do exist at all.kids’ sports teams. OUTLOOK REPORT | VOL 10 115

Rafi Jacoby Ray Velez Social Technology Lead Global Chief Technology Officer @RJACOBY @RVELEZ LINKEDIN.COM/IN/RAYVELEZ As an engineer, I always think there must be new and better ways When I wrote my first basic program on my Atari 800 I was to solve a problem. I like to work end-to-end — building servers, hooked; I’ve been spending time with computers ever since. designing databases, working with asynchronous queues, and I studied computer science and philosophy at Boston University, creating dynamic HTML5/CSS3/JavaScript URLs. I have been looking to bring the answered and unanswered together. The working with the major social platform APIs since they became thing that keeps it exciting is that it’s constantly changing and available, and am a co-author of Koala, the leading Ruby Gem always fresh. That’s something I’ve always loved about this for Facebook’s Open Graph. I’m very much a practicing geek — business, and something that’s certainly growing at a faster if you ask me if something can be done, I’ll likely throw together pace than ever before. a Sinatra app to do some testing. I wrote this biography using Vim. As the global chief technology officer for Razorfish, I manage Before joining Razorfish, I was director of engineering at Context the agency’s capabilities in Web technology architecture and Optional, where I guided the development of a leading social development, overseeing all of the company’s technologists. monitoring and publishing platform, architected custom A core part of this role involves looking to the community for applications, oversaw operations, and built highly scalable collaboration, and I’m consistently amazed by technologies like infrastructure and statistics components. I grew the business good old message boards and wikis. (In fact, I was fortunate using cloud deployment services, and spoke on the experience to help Razorfish build our internal, award-winning wiki.) at GigaOM Structure, as well as seminars for Oracle/MySQL and Joyent, and an in an interview in Cloudbook magazine. My prior My professional experience has been in the application experience includes experimental embedded consumer devices development life cycle, from inception to rollout, working with work at Sun Microsystems Labs, mobile telephony infrastructure clients ranging from Citibank to Ford Motor Company to the and several digital music services. National Football League (NFL). Most recently, I was the startup CTO in Razorfish’s role as incubation partner for Bundle, a At Razorfish, I work with our offices and clients across the personal finance start-up. I also enjoy training and creating country (and sometimes the world) to help guide conception and curriculums, and recently led the development of the Razorfish implementation of projects that integrate with social networks. Agile Process. I’ve been in the industry for close to 20 years, I’ve worked on custom applications, mobile-social crossovers, having worked previously at Cambridge Technology Partners site-wide Open Graph implementations and Twitter hooks. I also and Scient. track platform changes and evangelize new developments. Anything outdoors is my passion, whether biking, skiing or hiking Even though I faced the cold as a kid in New York and a computer with the family. Over the years I’ve enjoyed mountain bike and science student at Oberlin, I’m preparing for the shock of my ﬁrst ski racing, and was fortunate to ride across Costa Rica in La Chicago winter after spending 13 years in San Francisco. You Ruta de Los Conquistadores. I also find the DIY culture very can follow my tweets about it, interspersed with my thoughts inspiring; I’m looking forward to hacking some Arduino with on social tech, cloud computing, open source and more. my son someday soon.116 AUTHORS AND CONTRIBUTORS

Salim Hemdani Thomas Sudassy Group VP, Experiences and Platforms Media Research and Publisher Relations @SHEMDANI LINKEDIN.COM/IN/SUDASSY ASKDUDE.COMFor 13 years I have been developing and deploying digital Duke Ellington delighted in saying, “Music is my mistress,”experiences. I’ve spent eight of these years with Razorfish. I love and I share his sentiment. From the days of brandishing a Sonysolving hard client problems on a ubiquitous medium — the Walkman II as a teenager, to hosting radio shows today, I’mInternet — because its ability to provide a level playing field to enthralled with the lasting impressions and lessons of music.everyone around the world fascinates me. Even more fascinating The constant evolution of music draws upon the past andis that I live and breathe this digital world, despite the fact that present to create the ideas of the future.my first encounter with television was at age 11; my firstcomputer was at 19. These same qualities are what have attracted me to digital media and research for the past 11 years. I thrive in fostering relationshipsI started with Razorfish as a developer. Ecommerce and with the most popular of publishers to promising startups to ensurecommunity development are my fortes — building cutting edge our clients get the best service and opportunities. And I constantlyexperiences is my passion. My principal is simple — “Engineering roam the research landscape for best-in-class partners andenables experience.” In other words, “Let’s build an experience products that will provide our teams and clients insights for newthat is not constrained by technological limitations.” At Razorfish, ideas and confidence to execute on them.most of my time has been spent on-site with clients, learningtheir processes and culture. Digital consulting requires a unique You can catch me on LinkedIn or occasionally hosting oneblend of expertise, adaptability and agility. I have learned a lot of the Saturday Latin shows on KBCS 91.3 FM (kbcs.fm)working with brands like Microsoft, AT&T, Nike, Dell, Best Buy, in Seattle, Washington.Costco, Fujitsu America, Nintendo, Safeco and Wells Fargo.I have also worked with several start-up companies.I currently serve as group vice president of experiences andplatforms. I oversee the creative, user experience, deliveryand technology disciplines for Microsoft business and also actas executive sponsor for all digital experiences executed by myteam of incredibly talented and passionate people.I am an executive MBA graduate from the University ofWashington in Seattle and I earned my engineering degreefrom VNIT Nagpur in India. I am proud member of Beta GammaSigma International Owner Society. OUTLOOK REPORT | VOL 10 117

Tim Perlstein William Lidstone Group VP, Strategy Executive VP, Razorfish International LINKEDIN.COM/IN/TIMPERLSTEIN @WILLIAMLIDSTONE STRATEGY TEAM BLOG: STRATEGY.RAZORFISH.COM I lead the strategy practice within Razorfish’s central region. Everyone has a favorite teacher, who at some point during their We’re a small-but-mighty consulting team dedicated to helping education, sparks an interest, or even a life-long passion. clients use digital to maximize business performance, unlock new growth opportunities and — where needed — drive fundamental In my case, it was a visionary art teacher who introduced me transformation of business, marketing and organizational models. to the world of design — the intersection of ideas, art, science and technology. Twenty years ago, this fascination with ideas, It’s not as easy as it sounds. problem solving and product design also became my career — coinciding with the timely and meteoric rise of digital media. Fortunately, we like to solve hard problems — the harder the better. We like big-picture thinking, rigorous planning and basic arithmetic In early 1995, I led the design team of the U.K.’s first online done exceptionally well. (Preferably with charts.) shopping mall. A few years later I became head of business development at OgilvyInteractive, and later head of digital at I feel lucky to be part of this talented team and fortunate to have Foote, Cone & Belding. Since then I’ve spent almost a decade worked with, and within, so many other terrific organizations. Prior at AKQA working with Daniel Bonner (chief creative officer, to Razorfish, Yahoo! let me play two completely different roles: Razorfish International), delivering ideas, technology and One focused on customer-centric innovation, the other on the products for the likes of Coca-Cola, Ferrari, Fiat, Heineken, tactics of online marketing. At Knight Ridder Digital (remember Nike, Unilever and Xbox. newspapers?), we tried to save American journalism through better online ad products (and very nearly succeeded). As well as client work, I’ve also been involved in a number of important initiatives: developing competency frameworks to I seem to have an affinity for highly disrupted industries and nurture expertise, establishing professional development and companies — which these days is pretty much all of them — leadership programs and finding ways of supporting employees and have worked deeply across media, retail, financial services, with young families, despite the demands of digital agency life. high tech and consumer goods sectors. In past lives, I’ve been a marketing director, product manager, copywriter and editor — Inspired by a great teacher myself, I’ve recently had the privilege and in the very early days, even a Webmaster, community manager of educating the next generation of digital product designers, most and HTML coder. If there’s a digital job to do, I’ve probably done notably on Jonathan Ive’s industrial design course at Northumbria it at some point… or learned a lot from someone who has. University, as a visiting lecturer. It’s through teaching that I’ve learned that a truly world-class product requires a blend of Speaking of learning: I earned my MBA from Stanford and a BA only two key ingredients: The highest standards and the most in Art History from Harvard (senior thesis on Tibetan thangka capable talent. paintings). All of which, believe it or not, has been relevant in some way to my current work in digital strategy. To find out more, come look me up in Austin, Tex., where I can usually be found hanging out by the pool with my wife and son… planning for the future while still very much enjoying the messy, ambiguous, disrupted present.118 AUTHORS AND CONTRIBUTORS

Obrigado. Gum xia.Merci. Ta. Danke.Arigato. Thank you...... to the 20 Razorfish team members who we asked to capture and share momentsof inspiration from their everyday lives. Their photos illustrate how ideas ignite atthe intersection of technology and people.Adam Trimble Jamie Feola Shivani MohanPresentation Layer Developer Associate Designer ResearcherBehan Gifford Kevin Byrne Thomas GuyAccount Director Analyst Senior DesignerCameron Cooper Melvin Hale Tim PethelCopywriter Associate Creative Director Art DirectorCarol Monk Natalie Rodic Marsan Toby PastGroup Creative Director Research Creative DirectorCarsten Lindstedt Patrick Kernan Todd ZiajaSenior Concept Developer Senior Art Director Associate Creative DirectorClaire Reeve Robert Stribley Tomoko KuwaharaDesigner Senior Information Architect DesignerGaurav Bhandari Sara Giessen Will FikesStrategy Analyst Senior Designer Art DirectorAnd special thanks to Liz Stevison for her illustrations of our authors and contributors. OUTLOOK REPORT | VOL 10 119

Contact For Additional Information: outlookreport@razorfish.com Media Inquiries: press@razorfish.com About Razorfish Razorfish creates experiences that build businesses. As one of the largest interactive marketing and technology companies in the world, Razorfish helps its clients build better brands by delivering business results through customer experiences. Razorfish combines the best thought leadership of the consulting world with the leading capabilities of the marketing services industry to support our clients’ business needs, such as launching new products, repositioning a brand or participating in the social world. With a demonstrated commitment to innovation, Razorfish continues to cultivate our expertise in social influence marketing, emerging media, creative design, analytics, technology and user experience. Razorfish has offices in markets across the United States, and in Australia, Brazil, China, France, Germany, Japan, Spain, Singapore and the United Kingdom. Clients include Carnival Cruise Lines, MillerCoors, McDonald’s and Starwood Hotels. With sister agencies Starcom MediaVest, ZenithOptimedia, Denuo and Digitas, Razorfish is part of Publicis Groupe’s (Euronext Paris: FR0000130577) VivaKi, a global digital knowledge and resource center. Visit www.razorfish.com for more information. Follow Razorfish on Twitter at @razorfish.120 CONTACT

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Razorfish outlook report 2011 (vol10)

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