Outlook 2013:Data Driven Marketing,Today andTomorrowBruce BiegelSenior Managing DirectorJanuary 10, 2013NewYork, NY
Winterberry Group: Helping the Advertising and Marketing IndustryGrow ShareholderValueStrategic Consulting• Corporate Stra...
Outlook 2013What Happened in 2012:By The Numbers & By TheChannelsA Focus on DataIntegrationForecast & Themes for2013Our Ag...
U.S. GDP growth slowed during 2012, hoveringaround ~2.0% with a dip in Q4The Good:• U.S. financial markets showed impressi...
3.5%3.3%4.3%3.8%5.0%4.6%4.0%4.8%5.3%5.0%6.0%6.3%2.0% 4.0% 6.0%Initial RevisedWith Sluggish Global Growth, Advertising and ...
In U.S., Total Ad Spend Expanded $15BB+ in 2012, Primarily Driven byNew & Shifted Investment Into Digital Channels$122.7 $...
Though Print Media Faced Systemic Pressures, Major QuadrennialEvents HelpedTV to Drive an Increase in 2012 ATL Spending201...
2012 U.S. “Direct & Digital” Spending: $129.6BBSource: Winterberry Group analysis of multiple sourcesNote: Arrows reflect ...
Mobile Posted Larger than Expected Gains As Marketers ImplementedMultiplatform Campaigns in Earnest and Local Search Use E...
$43.8 $44.9 $45.2 $45.2$0.0$20.0$40.02009 2010 2011 2012Direct Mail: Flat, No Catalyst for Growth, But Holding Its OwnU.S....
102.7 96.080.0 84.4 84.7 84.735.332.329.6 27.7 26.9 25.90204060801001201401602007 2008 2009 2010 2011 2012AnnualPieceVolum...
$14.6 $15.6$16.9 $17.8$0.0$5.0$10.0$15.0$20.02009 2010 2011 2012U.S. Search MarketingSpend, 2009-2012 ($BB)Search: Still A...
Display: Spending Rose to $13.7BB in 2012, Driven by AudienceTargeting, Demand for Social andVideo FormatsSources: IDC, eM...
Social: U.S. SocialTech & Services Spend Rose in 2012 to $2.1BB asMarketers Demanded Analytics and Engagement PlatformsWha...
Mobile: 2012 Spending at $4.1BB, Up 173%YOY—Test Volumes andMarketer Experience Increased Across Mobile Solutions• Tablet/...
E-mail: Continued Steady Growth As a Cost-Effective, EasilyTargeted Marketing Channel, Reaching $1.8BB in 20121: “Q2 2012 ...
2012 Was Another Transitional Year, Presenting New DigitalOpportunities Across Channels and Market SegmentsRising marketer...
Outlook 2013What Happened in 2012:By The Numbers & By TheChannelsA Focus on DataIntegrationForecast & Themes for2013Our Ag...
CanYou Say “Big Data”? Everyone Else Does…..Too Often051015202530352010 2020EGlobal Data Storage, 2010 vs. 2020E (in Zetta...
Browser/Web Analytics Data• Registrations• Cookies (Flash) /• Click / Visit activities• Attribution /response data• In-mar...
So Far, Six Primary Digital Data Use Cases Have Emerged toLeverage the Potential of Cross-Channel Marketing DataTargeted M...
AndTheTools Required to Enable Integrated Data Solutions Span aRange of Marketing TechnologiesData Sourcingand StorageDeci...
At the Core of the Data Ecosystem is the Data Management Platform(DMP), An Evolving Tool Whose Role is Still Subject to In...
And to Activate “Big Data,” The DMP Should Include …85%79% 77%73%68%60% 57%52%Integration offirst and thirdparty dataSegme...
The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
DMPs Are Evolving to Cover a Variety of Data Use Cases59%69%73%76%83%84%84%86%90%93%Supply-side advertising yield optimiza...
73% 71%63%56% 55%44%38%32%15%Internalprocess,implementationand marketingoperationshurdlesNo clearinternal ownerfor DMPsolu...
And Defining and Implementing Appropriate Marketing DataGovernance Policies Will Be a Critical Success FactorSecurityPII v...
As Data-Driven Marketing Expands, WG Forecasts Continued DigitalData Spending Growth (Along With the Tools That Support It...
Outlook 2013What Happened in 2012:By The Numbers & By TheChannelsA Focus on DataIntegrationForecast & Themes for2013Our Ag...
Government tax agreement removes a degree ofuncertainty, enabling consumers and businessesto begin longer-term planning• F...
Traditional Media Slows – “OddYear” Without Elections, Olympics orWorld Cup, Plus Continued ShiftTowards Less Expensive Di...
2013E U.S. “Direct & Digital” Spending: $137.2BBSource: Winterberry Group analysis of multiple sourcesNote: Arrows reflect...
All “Green” in Digital Segments: Mobile Continues Aggressive GrowthandVideo/Rich Media Drives Display Increases32.1%Social...
1 Keeping up with the pace ofchange:• Shifts in consumer media consumptionoutpace shift in spend• Continuous innovation in...
2 Retailers offer more ways toshop/buy in response to shifts inconsumer behavior:• E-commerce continues to gain traction,b...
3 Automated collection,integration and utilization ofdigital data:• Digital “sensors” grow in prominence(site tags, listen...
4 Omnichannel integratedmarketing grows, makingattribution and measurementmore critical:• Most marketers still using inacc...
5 Demand for internal marketingdata governance (privacy,security, best practices) to growalong with legislative focus:• Re...
6 Focus on customer recognition,location-based services and targetinggrows, driven by integration ofdevices with geography...
7 Listening is easy, consumers keepshifting preferences, marketingactivation platforms improve, agenciesand marketers gain...
8With device proliferation, consumersutilize secondary screens whilewatching TV, creating opportunitiesfor deeper marketin...
9 The ability to use automated,business rules-driven,integrated campaign executionplatforms becomes moreaccessible to mark...
10 VC investment and M&A outlookmoderate-to-strong, buoyed by alow-interest, steady-growth,globalizing, highly fragmentedm...
Bruce BiegelSenior Managing Directorbbiegel@winterberrygroup.com60 Broad Street, 38th FloorNewYork, NY 10004www.winterberr...
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  1. 1. Outlook 2013:Data Driven Marketing,Today andTomorrowBruce BiegelSenior Managing DirectorJanuary 10, 2013NewYork, NY
  2. 2. Winterberry Group: Helping the Advertising and Marketing IndustryGrow ShareholderValueStrategic Consulting• Corporate Strategy Development• Market Intelligence• Marketing Process Optimization• M&A Transaction Diligence Support• Investment Banking Services, through
  3. 3. Outlook 2013What Happened in 2012:By The Numbers & By TheChannelsA Focus on DataIntegrationForecast & Themes for2013Our Agenda
  4. 4. U.S. GDP growth slowed during 2012, hoveringaround ~2.0% with a dip in Q4The Good:• U.S. financial markets showed impressivestrength in 2012; S&P 500 grew ~15%• Unemployment rate fell to 7.8% in Q4, droppingbelow 8% mark for first time since 2009• Consumer deleveraging continuedThe Less Good:• Slower than expected holiday season for retailers• Fiscal cliff, EU default risk and recession• Slowdowns in emerging market growth2012: International Economic Performance Remained Weak, WithGrowth inThe U.S. Constrained by Challenging Global ConditionsSources: Analysis of multiple sources, including Conference Board, JP Morgan, Scotiabank, U.S. Commerce Dept.
  5. 5. 3.5%3.3%4.3%3.8%5.0%4.6%4.0%4.8%5.3%5.0%6.0%6.3%2.0% 4.0% 6.0%Initial RevisedWith Sluggish Global Growth, Advertising and Marketing SpendFaced Headwinds, Lowered ForecastsCuts in 2012 Global Ad SpendGrowth Forecasts (InitialYearVs. Revised Forecasts)Source: Company Websites• Major global research firmsrevised global ad spendforecasts down, responding topersisting softness in the EU• Agency holding companieslowered 2012 organic revenueforecasts due to slowedinternational growth—negative inthe EU• US ad spend grew 4.3% YOYdespite the slow economy—~2xGDP growth
  6. 6. In U.S., Total Ad Spend Expanded $15BB+ in 2012, Primarily Driven byNew & Shifted Investment Into Digital Channels$122.7 $126.9 $127.9 $129.9$86.4 $87.8 $89.0 $89.9$25.8 $28.9 $34.6 $39.7$0$100$200$3002009 2010 2011 2012U.S. Advertising and Marketing Spending,By Share of Approach 2009-2012 (US $BB)Traditional Direct DigitalDigitalDirectTraditional15.4%1.3%1.9%Note: CAGR measured from2009-2012• Systemic shift in spend from traditional to digital channels continued in 2012• Spend in traditional & direct marketing segments continued to see modestgrowth• Summer Olympics and U.S. national elections in 2012 were primary drivers ofheightened U.S. marketing spend for the year
  7. 7. Though Print Media Faced Systemic Pressures, Major QuadrennialEvents HelpedTV to Drive an Increase in 2012 ATL Spending2012 U.S. “Measured Media” Spending: $129.8 BBNewspapers:$19.8BB6.6%-5.9%Television:$64.5BBMagazines:$14.0BB-2.1%Outdoor:$6.8BBRadio:$15.9BB2.0%Cinema:$0.6BBSource: Winterberry Group analysis of multiple sourcesNote: Arrows reflect percentage change in spend, by channel, from 2011 levels2.0%4.9%1.5%Yellow Pages$8.2BB-8.9%
  8. 8. 2012 U.S. “Direct & Digital” Spending: $129.6BBSource: Winterberry Group analysis of multiple sourcesNote: Arrows reflect percentage change in spend, by channel,from 2011 levels; DR Broadcast and DR Print removed fromcategory, as most direct ads include a call-to-action and DRbroadcast/print spend is believed to be captured in traditionalATL channels; Insert Media includes statement inserts andexcludes FSIs, which are captured in ATL newspaper spendTeleservices:$40.7BB0.1%Direct Mail:$45.2BBSearch:$17.8BB5.1%10.7%Other:$3.1BB4.9%1.5%InsertMedia:$0.9BBDisplay:$13.7BB14.7%OtherDigital:$8.2BB69.0%Below-the-Line Spending GrewYet Again, Driven by ContinuedExpansion of Digital Channels-3.6%
  9. 9. Mobile Posted Larger than Expected Gains As Marketers ImplementedMultiplatform Campaigns in Earnest and Local Search Use Expanded33.3%SocialTechnologyand Services¹:$2.1BB8.4%LeadGen &AffiliateServices:$0.2BB5.1%Search:$17.8BB2012 U.S. Digital Advertising Spending: $39.7BBMobile2:$4.1BB180.0%Email:$1.8BB12.5%Display:$13.7BB14.7%14.9%Source: Winterberry Group analysis of multiple sourcesNote: Arrows reflect percentage change in spend, by channel, from 2011 levels¹Excludes social display and social search spend2Includes mobile display and mobile search spend
  10. 10. $43.8 $44.9 $45.2 $45.2$0.0$20.0$40.02009 2010 2011 2012Direct Mail: Flat, No Catalyst for Growth, But Holding Its OwnU.S. Direct MailMarketingSpend ($BB)Source: Winterberry Group, Jan. 2013• Online substitution for First Classadvertising, statement andinformational mailings continues toinhibit growth• Personalized, targeted (and lower-volume) direct mail is growing,fueled by digital print technology• Direct mail industry moves towardsmobile multichannel integration,email and QR codes• “Do-not-mail” and green issueshave lost traction, while fate ofUSPS remains top-of-mind Direct MailCAGR 1.1%
  11. 11. 102.7 96.080.0 84.4 84.7 84.735.332.329.6 27.7 26.9 25.90204060801001201401602007 2008 2009 2010 2011 2012AnnualPieceVolume(BB)Standard Class First Class DMDirect MailVolume Declines Slow; First Class Challenged By SystemicSwitch to Digital AlternativesSource: Winterberry Group analysis of U.S. Postal Service dataU.S. Direct MailVolume, 2007-2012 (BB)First Class DM CAGR: -6.0%Standard Class CAGR: -3.8%
  12. 12. $14.6 $15.6$16.9 $17.8$0.0$5.0$10.0$15.0$20.02009 2010 2011 2012U.S. Search MarketingSpend, 2009-2012 ($BB)Search: Still Accounts for Almost 50% of Digital Spend; Feeds on LocalDemand* Local search defined as searches that incorporate some geographic parametersSource: Covario, GoogleSearchCAGR 5.1%CAGR measured from 2009-2012Source: Winterberry Group, Jan. 2013• Search can capture new intendersand drive traffic better than otherdigital channels• Search retargeting enablesmarketers to apply the power ofsearch to display and email withadded benefits of real-timeoptimization and attribution• Local search* is now 20% of allWeb search queries and 40% ofmobile search queries—fueled byincreasing smartphonepenetration
  13. 13. Display: Spending Rose to $13.7BB in 2012, Driven by AudienceTargeting, Demand for Social andVideo FormatsSources: IDC, eMarketer, ComScoreCAGR measured from 2009-2012Source: Winterberry Group, Jan. 2013* Includes social display, video, rich media and bannerad formats, as well as ad sponsorships$8.4$9.9$11.9$13.7$0.0$5.0$10.0$15.02009 2010 2011 2012U.S. Display MarketingSpend*, 2009-2012 ($BB)DisplayCAGR 13.0%• Marketers shift to audiencetargeting, primarily through RTBsolutions that leverage analytics,retargeting and 3rd party digital data(RTB now ~10% of spend, up from6% in 2011)• As engagement increases, onlinevideo and mobile spend drive themajority of display growth• Facebook Exchange (FBX)enables data-rich, targeted ad buysacross a platform that accounts fornearly one in three impressions
  14. 14. Social: U.S. SocialTech & Services Spend Rose in 2012 to $2.1BB asMarketers Demanded Analytics and Engagement PlatformsWhat happened to social gaming? What’s the future of social image sharing?Source: IBM CMO Survey; BIA/Kelsey; eMarketer; Nielsen Wire; Bizo, Pew Research27%31%37%38%54%Brand building/viralmarketingConversion rateoptimizationContent optimizationMobile OptimizationSocial media engagementSource: Adobe, eConsultancy• 68% of CMOs say they areunderprepared to deal with the impact ofsocial media—yet 82% plan to increaseinvestment in social media technology• Increasing investment in social mediaanalytics to address concerns over ROIand measurability• As spend accelerates, providersconsolidate, building integrated socialservices stacks for brand-to-consumerengagementMarketerSurvey:What AreTheMost Promising Digital-RelatedOpportunities in 2012?
  15. 15. Mobile: 2012 Spending at $4.1BB, Up 173%YOY—Test Volumes andMarketer Experience Increased Across Mobile Solutions• Tablet/smartphone adoption drives nativemobile content development by publishers tocapture mobile ad spend; many companiesstill lack mobile-optimized sites, however• Bricks and Clicks—Marketers focus onconsumer engagement at point-of-sale tocombat “showrooming”• Location-based targeting still in earlystage of development• M-Commerce: 83% CAGR 2011-2015;major players pivot to provide solutions (e.g.eBay, Groupon)Source: Credit Suisse, eMarketerMobile Search:$2.0 BBMobile Display1:$1.9 BB1Includes banner, rich media and videoSource: Winterberry Group, Jan. 2013MobileMessaging:$0.2 BB2012Total Mobile Spending:$4.1 BB
  16. 16. E-mail: Continued Steady Growth As a Cost-Effective, EasilyTargeted Marketing Channel, Reaching $1.8BB in 20121: “Q2 2012 N.A. Email Trends and Benchmarks Results,” EpsilonSource: Epsilon, Return PathCAGR measured from 2009-2012ESource: Winterberry Group, Jan. 2013$1.2$1.4$1.6$1.8$0.0$1.0$2.02009 2010 2011 2012U.S. Email Marketing Spend,2009-2012 ($BB)Email CAGR 14.5%• Marketers focus on delivery, relevance,social media integration anddatabase expansion andsegmentation• Challenges in consumer engagementwith email persist: both open rate andCTR fell in Q2 to (4.4%)—at lowestlevel since 20091• Rise and fall of “Daily Deals”(Groupon, LivingSocial): email-basedproviders facing revenue, SMBretention challenges; start to pivot
  17. 17. 2012 Was Another Transitional Year, Presenting New DigitalOpportunities Across Channels and Market SegmentsRising marketer digital spend & testing drove new learnings,social/mobile spend lagged “conversation” and staff /talentcontinued to play catch upSuppliers expanded digital cores, added omnichanneldelivery platform support, acquired more agency services tocapture share in emerging marketsInvestments in ad tech platforms continued, propellinginnovation in digital solutions and servicesM&A deal activity in marketing, media & technology wasflat from 2011 and deal value declined 8.5% YOY**Source: Petsky Prunier LLC, 2012 vs. 2011
  18. 18. Outlook 2013What Happened in 2012:By The Numbers & By TheChannelsA Focus on DataIntegrationForecast & Themes for2013Our Agenda
  19. 19. CanYou Say “Big Data”? Everyone Else Does…..Too Often051015202530352010 2020EGlobal Data Storage, 2010 vs. 2020E (in Zettabytes)
  20. 20. Browser/Web Analytics Data• Registrations• Cookies (Flash) /• Click / Visit activities• Attribution /response data• In-market purchase intent• Ad TagsMobile• Carrier / Location data• App data• Device fingerprints• Ad Data, Search DataGeo-Demographiccompiled frompublishers,databases andother third partiesArtwork Source: David Harbaugh, Harvard Business ReviewPsychographic andbehavioral compiledfrom surveys,analytical modelsSocial compiled from socialplatforms, blogs, sharingsites, Tweets, retail appsTraditionalMediaCompaniesOfflineCompilersTransactional added from purchaserecords, cooperative databases,eCommerce, mCommerceSocial Sites /OnlineProvidersPortals /OnlineCompilersOfflineProvidersWeb SitesWhat Matters is Big “Marketing” DataTV interaction andviewing data compiled fromset-top boxes, DVRs, gameconsoles
  21. 21. So Far, Six Primary Digital Data Use Cases Have Emerged toLeverage the Potential of Cross-Channel Marketing DataTargeted MediaBuying / CampaignExecutionCreative & ContentOptimizationAttributionAudienceOptimization &Customer InsightChannelOptimizationAdvertising YieldOptimization
  22. 22. AndTheTools Required to Enable Integrated Data Solutions Span aRange of Marketing TechnologiesData Sourcingand StorageDecisioningEnginesIntegrated DataManagementMarketingExecutionWeb SiteDataIntentDataGeographicDemographicChannelPreferenceSocialTransactionalDataManagementPlatformDSPContentMgmt.SiteInteractionEngineChannelInteractionEngineLeadScoringYieldMgmt.MarketingExecutionPlatforms
  23. 23. At the Core of the Data Ecosystem is the Data Management Platform(DMP), An Evolving Tool Whose Role is Still Subject to Interpretation“A ‘big data’activation solution”
  24. 24. And to Activate “Big Data,” The DMP Should Include …85%79% 77%73%68%60% 57%52%Integration offirst and thirdparty dataSegmentation Online datacollectionAudienceanalyticsOnline datawarehousingDatatransfer/exportto marketingchannelsModeling Integration ofoffline andonline dataSurvey:Which of the following represent corecompetencies of DMPs today?(Showing percent saying so for each)
  25. 25. The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
  26. 26. DMPs Are Evolving to Cover a Variety of Data Use Cases59%69%73%76%83%84%84%86%90%93%Supply-side advertising yield optimizationSite content optimizationCreative and content optimizationCRM program optimizationChannel optimizationMultichannel campaign integration and optimizationDeployment of emerging marketing channelsCampaign / Channel attributionTargeted Media BuyingDevelopment of customer insightsImportant / Extremely Important DMPs supportSource: WG White Paper, October 2012SURVEY: “Thinking ahead, to what extent would you like to see DMPs supporteach of the following marketing use cases in the future?
  27. 27. 73% 71%63%56% 55%44%38%32%15%Internalprocess,implementationand marketingoperationshurdlesNo clearinternal ownerfor DMPsolution withinthe marketerorganizationLack of clarityinto the roleand potentialcontribution ofDMPs at theexecutivelevel/C-suiteLack ofestablishedperformancemetrics/insightinto valueLack of clearbusiness case /ROIexpectationsConcernsaboutconsumerprivacy,security andgeneral datagovernanceConcerns overcostLack ofaddressabledata to fuelDMP utilizationPreference forwaiting for nextgenerationtechnologySURVEY: “To what extent do you think the factors below areinhibiting more rapid adoption of DMP solutions?(Summary of those saying each is a “major contributing factor” or a “critical or primary factor”)Yet Organizational Silos, Internal Gaps and Operational Hurdles WillLimit Rapid Implementation of DMPs Within Marketer OrganizationsSource: WG White Paper, October 2012
  28. 28. And Defining and Implementing Appropriate Marketing DataGovernance Policies Will Be a Critical Success FactorSecurityPII vs. Non-PIIData StewardshipExternal & Internal/Self-RegulationPrivacyCustomer TransparencyData ProvenanceCorporate Use and Ownership
  29. 29. As Data-Driven Marketing Expands, WG Forecasts Continued DigitalData Spending Growth (Along With the Tools That Support It)2008 2010 2012(1) Online display-related data spending includes retargeting services, intent data /inferred data, offline data used for online marketing(2) E-mail-related data spending includes e-mail lists, database management / hygieneand analytics services(3) Direct mail-related data spending includes mailing lists, database management /hygiene and analytics servicesU.S. Spending, Marketing Data & Related Services (2008-2012)Showing Digital’s Increasing Share$10.8BB $10.0BBOnline Display-Related Data Spending1E-mail-Related Data Spending2Direct Mail-Related Data Spending3$12.0BBSource: Winterberry Group analysis of various sourcesTotal Spendingon Digital Data:$300MMDigital’s Shareof Total:2.8%$870MM7.2%$520MM5.2%
  30. 30. Outlook 2013What Happened in 2012:By The Numbers & By TheChannelsA Focus on DataIntegrationForecast & Themes for2013Our Agenda
  31. 31. Government tax agreement removes a degree ofuncertainty, enabling consumers and businessesto begin longer-term planning• Financial markets forecast UP• Unemployment rate forecast DOWN• Housing market improves - driving increasedspending, likely end of deleveraging• Emerging markets grow, while EU continuesslow progress towards recoveryAnd….• Drama in the Capital to continue - debt ceilings,spending cuts, more tax reform, healthinsurance, privacy2013: Global Economic Performance Improves, 3% GDP Growth inTheU.S., EU Constraints ContinueSources: Analysis of multiple sources, including Conference Board, JP Morgan, UBS
  32. 32. Traditional Media Slows – “OddYear” Without Elections, Olympics orWorld Cup, Plus Continued ShiftTowards Less Expensive Digital Media2013E U.S. “Measured Media” Spending: $130.4BBNewspapers:$18.8BB2.8%-4.8%Television:$66.4BBMagazines:$13.7BB-1.9%Outdoor:$7.1BBRadio:$16.1BB2.0%Cinema:$0.6BBSource: Winterberry Group analysis of multiple sourcesNote: Arrows reflect expected percentage change in spend, by channel, from 2012 levels1.5%4.3%0.4%Yellow Pages$7.7BB-6.1%
  33. 33. 2013E U.S. “Direct & Digital” Spending: $137.2BBSource: Winterberry Group analysis of multiple sourcesNote: Arrows reflect percentage change in spend, by channel,from 2012 levels; Insert Media includes FSIs and statementinsertsTeleservices:$41.1BB-0.9%Direct Mail:$44.8BBSearch:$18.8BB5.7%3.2%Other:$3.2BB5.9%Digital Will Captures New Ad Budgets and Shift from Print; TraditionalDirect Flat to Slightly Down1.0%InsertMedia:$0.8BBDisplay:$16.2BB18.4%OtherDigital:$12.3BB49.0%-5.0%
  34. 34. All “Green” in Digital Segments: Mobile Continues Aggressive GrowthandVideo/Rich Media Drives Display Increases32.1%SocialTechnologyand Services¹:$2.8BB7.0%LeadGen &AffiliateServices:$0.3BB5.7%Search:$18.8BB2013E U.S. Digital Advertising Spending: $47.3BBMobile2 :$7.2BB77.1%Email:$2.0BB11.1%OnlineDisplay:$16.2BB18.4%19.0%Source: Winterberry Group analysis of multiple sourcesNote: Arrows reflect expected percentage change in spend, by channel, from 2012 levels¹Excludes social display and social search spend2Excludes mobile display and mobile search spend
  35. 35. 1 Keeping up with the pace ofchange:• Shifts in consumer media consumptionoutpace shift in spend• Continuous innovation in digital mediaplatforms and formats• Organizational silos continue to fallamidst limited increases in staff; morecross-channel programs; new mediashifts from test to roll-out• Improving CTO-CMO collaboration asmarketing and technology becomeincreasingly integrated10 for ‘13: Marketers More ChallengedThan Ever Before to Keep Up,Tap Into New Innovations
  36. 36. 2 Retailers offer more ways toshop/buy in response to shifts inconsumer behavior:• E-commerce continues to gain traction,but still accounts for only 7% of totalretail spend• M-commerce still in infancy, but grew100% in 2012• Local marketing for both national brandsand SMBs gets increasingly digitized• Investment growth focuses on joining“bricks to clicks”: Digital - POSintegrations10 for ‘13: Retail Marketing Transformation Accelerates, TargetingConnected, Convenience-Driven Shoppers
  37. 37. 3 Automated collection,integration and utilization ofdigital data:• Digital “sensors” grow in prominence(site tags, listening platforms, adtracking solutions)• Data platform implementationsaccelerate as companies move fromplanning to execution• Digital data management improvesas experience is gained in utilization,cost of collection vs. value of data10 for ‘13:The Next Chapter of Big Data: Integration, Implementationand the Rise of the Machines Data integration Data management Programmatic execution
  38. 38. 4 Omnichannel integratedmarketing grows, makingattribution and measurementmore critical:• Most marketers still using inaccurate first-or last-click attribution models• Integrated campaign delivery platformswill make response data easier tocapture, assess and model• Gaps in aligning digital and offline mediameasurement slowly close• Amplified demand for analytics talentleads to more outsourcing10 for ‘13: Attribution Requirements Turn Omnichannel, Remain a PainPoint• 54% of marketers andagencies use a last-clickattribution model• However, only 14% say thelast-click method is “veryeffective”• With more accurateattribution models 72% saidthey could better allocatemarketing budgetsSource: eConsultancy and Google Analytics report:Marketing Attribution: Valuing the Customer Journey
  39. 39. 5 Demand for internal marketingdata governance (privacy,security, best practices) to growalong with legislative focus:• Resolution of fiscal cliff frees legislativeattention• Marketing data governance seeksconsistency across geographies; safeharbor as default without global alignment• DMA & DAA lead more active response tomaintain a predominantly self-regulatoryenvironment10 for ‘13: Data Privacy, Governance BecomeTop-of-Mind forMarketers and Legislators Alike
  40. 40. 6 Focus on customer recognition,location-based services and targetinggrows, driven by integration ofdevices with geography, intent andtime of day:• Marketers focus on native local app ecosystemsand improving mobile ad formats• Intersection of m-commerce and shoppermarketing• Lack of access to device UIDs, cookies,standards, staff training and regulatoryuncertainty inhibit growth10 for ‘13:The Mobile/Social/Local Convergence Dominates NewInvestment and Priorities
  41. 41. 7 Listening is easy, consumers keepshifting preferences, marketingactivation platforms improve, agenciesand marketers gain experience:• More than 50% of companies plan to increasesocial’s share of the marketing budget• Social display, driven by programmatic buying andrich streams of social intent data (both declaredand inferred), gains largest share of spend• Social data models begin to provide a complexportrait of consumers’ social behavior, matched totraditional data attributes for insight/targeting• ROI still a challenge10 for ‘13:The Maturation and Immaturity of Social MediaSource: StrongMail (Dec. 2012)
  42. 42. 8With device proliferation, consumersutilize secondary screens whilewatching TV, creating opportunitiesfor deeper marketing engagement:• What: Incentivized advertising, real-timesocial interactions during live events, deliveryof rich, related content across screens• How: Set-top box data, made non-PII andintegrated with third-party digital deliveryplatforms; integration apps proliferate• When: More tests in ’13; Roll-out requiresdeeper tablet/smartphone penetration, TVprovider coverage and measurement10 for ‘13:The Evolution ofTV Engagement
  43. 43. 9 The ability to use automated,business rules-driven,integrated campaign executionplatforms becomes moreaccessible to marketers:• Simplified user interfaces and fasterdata integration enable more “triggered”execution across channels• Improved delivery of optimized creativeand content, with greater variety andcost-effectiveness in versioning10 for ‘13: Data andTechnology Combine to Enable OmnichannelProgrammatic Marketing
  44. 44. 10 VC investment and M&A outlookmoderate-to-strong, buoyed by alow-interest, steady-growth,globalizing, highly fragmentedmarket:• Ad tech shakeout coming as large stacksfill in missing pieces, causing to prices fallfor attribution, optimization• Digital agencies of all flavors - buyingtalent, clients• Social media platforms, services - scale10 for ‘13: Consolidation of Marketing Technology Into Scaled Stacks
  45. 45. Bruce BiegelSenior Managing Directorbbiegel@winterberrygroup.com60 Broad Street, 38th FloorNewYork, NY 10004www.winterberrygroup.comQuestions?

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