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CES 2013: Big Ideas
 

CES 2013: Big Ideas

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Intended for delegates of Publicis Groupe attending the Consumer Electronics Show 2013 held in Las Vegas, this book puts the show floor into context and provides meaningful predictions, ...

Intended for delegates of Publicis Groupe attending the Consumer Electronics Show 2013 held in Las Vegas, this book puts the show floor into context and provides meaningful predictions, recommendations, insights and in-depth expertise from the group's content experts and participating sponsors across 4 categories:
Connection Engine
Data-Driven Marketing
Commerce+ and
Next Generation Storytelling.

MSLGROUP's Chief Development Officer and master storyteller Bob Bejan contributed his expert insights on Next Generation Storytelling and the Storytelling Need while our North America Technology Director, Bryan Scanlon contributed to Data Driven Marketing.

We hope you enjoy the book, happy reading.

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    CES 2013: Big Ideas CES 2013: Big Ideas Presentation Transcript

    • A Guide to the 2013Consumer Electronics Show
    • CH 3 : Commerce+ 3 4 Table of Contents 5 Introduction 7 Chapter 1 : Connection Engine 27 Chapter 2 : Data-Driven Marketing 49 Chapter 3 : Commerce+ 67 Chapter 4 : Next Generation Storytelling 93 Thank You 98 Conclusion
    • 5 SIDEBAR :Welcome Who Is Publicis Groupe?Welcome to Las Vegas and the Connection Engine: Next Generation Storytelling: Publicis Groupe is the third2013 Consumer Electronics Show. The Connection Engine track will Despite advances in technology largest communications group inThe Publicis Groupe organization is explore how a fully integrated and changes in scale, storytelling the world, offering the full rangepleased to have you as a member ecosystem provides consumers remains one of the fundamental of services and skills: digitalof our delegation, and we hope access to content regardless of responsibilities of marketers and (Digitas, Razorfish, Rosetta,that you find the next three days the time, place, or device. brands. The Next Generation VivaKi), traditional advertisingto be invigorating and illuminating. Storytelling track will discuss (BBH, Leo Burnett, Publicis Data-Driven Marketing: how three components-- Worldwide, Saatchi & Saatchi),Similar to last year, we have Data is the central nervous human (services), technology strategic communication andcreated a custom agenda that system of empowered (platforms) and content engagement (MSLGROUP),includes content sessions marketing, giving marketers solutions work together to drive media buying (Starcom MediaVesthosted by influential industry the opportunity to create order storytelling in todays world. Group and ZenithOptimedia)players, exclusive show floor from chaos as we reach today’s and specialized communicationtours, as well as networking consumers. The Data-Driven Our goal in creating this book, with PHCG (Publicis Healthcareopportunities with some exciting Marketing track will focus on and this entire event, is to enable Communications Group). Presentnew start-ups and today’s leading how we harness big data to you to take what your see and in 104 countries, the Groupemedia and tech companies. capture value. learn at CES home with you employs 56,000 professionals. and apply the most relevantThe book you are holding is Commerce+: information to your business.intended to put the show floor Marketing and commerce haveinto context. It provides meaningful become indistinguishable – Thank you again for joiningpredictions, recommendations, consumer expectations have our delegation, and please enjoyinsights and in-depth expertise shifted from brand building to the show!from our content experts and brand selling. The Commerce+participating sponsors across track will focus on the ecosystem Signed,four categories: of technologies and marketing The VivaKi Planning Committee disciplines required to deliver an engaging consumer experience connected across every touchpoint.
    • 8Chapter 1connection Engine
    • CH 1 : connection engine 9 Jeremy Lockhorn Chris Allen Chuck Schultz Christie Hartbarger Ed Haslam VP, Emerging Media, SVP, Director of Video VP, Director New VP, Connected Devices Senior Vice President, Razorfish Innovation, SMGx Media, SMGx YuMe Marketing, YuMe Jeremy Lockhorn leads the Chris Allen is a key component Chuck Schultz plays an integral Christie is a sales and marketing Ed is a strategic marketing emerging media practice at of SMGx’s Innovations Group and role within the SMGx’s Innovations executive with 18 years+ of ad executive with substantial Razorfish and is focused on is charged with the development Group by focusing on all aspects industry experience. Her career experience in online media, scouting opportunities in new of a video trading platform of emerging technologies and spans across digital and print, and networked communications, channels like mobile, tablet, that will take advantage of identifying important new media some early days in media planning, and infrastructure computing. converged television, game advanced audience data to more trends. In his role within SMGx, having worked for CBS Interactive, Prior to joining YuMe to oversee consoles, digital out of home efficiently and effectively connect he has responsibility over THE Time Inc. and Y&R. Marketing, Ed was co-founder and more. Lockhorn’s team fuels advertisers’ messages with EDGE, which is focused on laying & VP Marketing of Ludic Labs innovation across the agency consumers. SMGx is a Starcom out a visionary road map of the Christie is currently overseeing (Groupon), which developed and helps clients navigate an MediaVest Group (SMG) agency future and provides industry national, emerging sales at both the social media community increasingly fragmented media that empowers all SMG agencies leading thought leadership into YuMe across mobile, tablet Diddit.com and local commerce landscape with breakthrough to exchange intelligence, test new the broader organization. With a and connected TV and is in the service OfferFoundry.com. Prior strategic thinking that makes models and leverage scale to drive focus on the “the next big thing” process of building up their new to Ludic Labs, he served as the sense of the noise and separates marketplace and measurement and pioneering new ground within field marketing team. founding marketing executive the wheat from the chaff. He is efficiencies. Prior to his role at the agency, Chuck is uniquely for several other venture-backed a 15-year advertising industry SMGx, he was responsible for positioned as an expert advisor Her areas of expertise include technology companies including veteran, having spent time at determining best practices and to all Starcom Mediavest Group the ability to create, sell and Orbital Data (Citrix) and Inktomi offline and direct marketing standards for emerging video clients and serves as a key advisor manage multi-screen initiatives, Corporation (Yahoo!). agencies before joining technologies, and for investment across the broader Starcom new product launches and Philadelphia-based digital agency across these platforms at Starcom Mediavest Group. Prior to his role custom content programs. Ed holds a B.S. in Structural startup i-FRONTIER in 1997. USA. An active contributor to at SMGx, he led the emerging Engineering, an M.S. in Systems He teamed with founder Brad VivaKi’s The Pool, Chris helped media practice at Starcom Detroit She resides in the Greater Engineering and ABD in Aronson to grow the business sell the ASq to 11 Starcom USA working on the General Motors Chicago Area with her husband Operations Research from and ultimately join forces with clients. In 2010, he was named one account for close to 12 years. Prior and two children. Purdue University. Razorfish. Throughout his career, of Broadcasting & Cable’s Next to joining Starcom, he was with J. he’s been a trusted advisor to Wave of Leaders. Prior to joining Walter Thompson heading up the a wide range of top marketers Starcom, he was VP at advertising emerging media practice for Ford including Best Buy, Weight agency GSD&M. and a number of diversified clients. Watchers, Mercedes Benz, Samsung, Miller Coors and more.
    • CH 1 : connection engine 11 Part 1 : Introduction What Is The Connection Engine? The long-promised future is finally Our present-day lives are The era of the single-function + Connectivity. Driven by the whatever device they happen to here. While it’s unlikely you’ll see dominated by Web-enabled device is over. People use their increasing availability of Wi-Fi be using. Also, there is simply flying cars (a la The Jetsons) screens. Phones, laptops, TVs, even telephones to search the Internet. and ultra-fast 4G cellular more content available than or a Back to the Future-type household items like refrigerators, Cameras connect to wireless networks, consumers expect an ever before. Lower barriers to floating hoverboard at this year’s thermostats and ovens all have networks and post photos to “always on” experience, giving production and distribution have Consumer Electronics Show, some the ability to talk to each other social networks. Teenagers watch them access to content they created an absolute explosion of of the technologies that were through simple, user-friendly entertainment programming desire virtually anywhere. content and are enabling content once believed to be far-fetched interfaces. And all of them are on tablets. Consumers are creators to fill the needs of are now part of our present begging for attention, radically making phone calls through their + Devices. Today’s consumer ever-smaller niche audiences. everyday lives. World Fairs of the changing the way people interact televisions. Every device, it seems, electronics are being developed mid-Twentieth Century promised with content, brands and each connects to all other devices, to either utilize a common + Data. Services and platforms computers that could automate other. Increasingly, consumers are and to each other. It’s the thrill operating system or enable that tie all of the previous three household chores (The Roomba), accessing content from a variety we experience when we bring cross-communication among components together and cars that drive themselves (Google of different devices in a variety of home a new Apple TV, hook it different operating systems collect a wide variety of data fuel Drive) and “picturephones” that different venues, all on their own up, and suddenly our iPhone, to provide consistent, familiar personalization and discovery of would allow people to see each terms. This ubiquitous access to iPad and laptop computer are experiences from one device new content. When aggregated, other while they talked (Skype, content, regardless of the time all able to seamlessly connect to to the next. Battles are raging this data is then distilled into FaceTime and others). Our current and place, driven by fully the new device over the home between open and closed meaningful information that smartphone technology surpasses integrated devices is what we network. Pure magic. This type ecosystems, but those that are powers the economics of the what communicators imagined call the Connection Engine. of connected ecosystem is what most successful are at least connection engine. in Star Trek. The entertainment makes up the Connection Engine, walking some middle ground, and identification technologies of a matrix of systems designed with some open APIs and As the Connection Engine sees Minority Report will not be to bring all devices closer to evolving standards. further consumer adoption, far behind. each other while forging deeper, marketers will be forced to rethink personalized experiences for + Content. Driven by connectivity their consumer outreach programs people with brands and each other. and inter-connected devices, and understand the ever-changing content is becoming increasingly consumer journey as they attempt At the heart of the “liquid,” able to be passed and to optimize across many different Connection Engine are four experienced over a variety of platforms and devices at once. fundamental components: devices. Control over the content Among the new challenges and experience is now in the hands opportunities are mobile-enabled of consumers, giving them the shopping, multi-screen content ability to participate directly experiences, cross-platform with the content and content measurement and new business providers, share their experience models that flatten commerce. with others and conduct commerce directly through
    • CH 1 : connection engine 13 sidebar : The Coming Connection Engine Explosion Connectivity in more markets will demand (Table 4.) Worldwide, the numbers high-speed, high-quality are even more staggering, with Table 1. In the developed world, Internet access to wireless and mobile FIXED BROADBAND HOUSEHOLD PENETRATION sales projected to hit nearly 300 access has become an everyday communications through every % of Total Households in Each Group million units by 2014. necessity. But as it matures and part of their day. What’s more, develops, penetration has hit a consumers will not make the Consumer adoption of other plateau. According to eMarketer, distinction between being on a Internet-connected devices 2012 U.S. household penetration WiFi or mobile network. They including connected televisions, of broadband services was 69 will expect the same experience gaming consoles, and over-the- percent, with year-to-year growth regardless of how they connect to top boxes, while still relatively holding in the low single digits the Internet. new to the marketplace, is through 2016, a trend that follows growing rapidly as well. The U.S. in other industrialized nations Devices marketplace has led the charge, as well. In emerging markets, but global markets are expected however, penetration growth will All over the world, consumers are to grow at a faster pace over 2012 2016 be in the double digits over the looking to exchange their feature the coming years, particularly next four years. (Table 1.) phones for smartphones that Source: eMarketer, April 2012 in Asia. In 2012, more than 212 provide a more robust experience, million devices worldwide were At the same time, speedier 4G with a mobile browser and apps connected to the Internet, double Long Term Evolution (LTE) mobile dedicated to make specific the number of 2010. By 2017, that Table 2. networks are expected to grow tasks easier. Over the next four number will nearly triple globally, WORLDWIDE 4G LTE SUBSCRIBERS (MM) at a staggering rate all over the years, smartphone penetration reaching almost 600 million. U.S. world. With more smartphones, is expected to pass feature (aka penetration of connected devices tablets and mobile PCs in the “regular”) phone penetration was 48 million in 2010, nearly marketplace, the number of high- in most developed markets, doubled to 78 million in 2012, and speed mobile subscribers will while also maintaining growth in is expected to nearly double again grow exponentially. To wit: in 2012, developing markets (Table 3.). by 2017. (Table 5.) the number of high-speed mobile subscribers was expected to be At the same time, tablets, a Taken together, the explosive 73MM (up 334 percent from 2011). category that didn’t exist three growth of smartphones, tablets In 2013, the number of customers years ago, has exploded. Since and connected televisions (and is expected to grow to 206MM (a their category introduction in auxiliary television devices) will 181 percent increase). By 2010, global device sales have lead consumers to expect more 2016, the number of high-speed skyrocketed from 17 million in content to work across all of these Source: IHS iSuppli Consumer and Communications Market Tracker Report, August 2012 mobile customers will be 1.2B, 2010 to more than 100 million different platforms, all of the time. an increase of 1,537 percent over in 2012. (The U.S. alone had 70 Marketers will want to ensure the 2012. (Table 2.) million tablet users in 2012.) By programs work efficiently across 2015, there will be more than 130 all of these devices in the ways The implication for marketers is million tablet users in the U.S., consumers want to use them. clear: by 2016, more consumers representing more than two-fifths of the entire population.
    • CH 1 : connection engine 15 on a tablet—while only 9 percent of the total time spent—is three Table 3. Table 5. MOBILE PHONE PENETRATION Connected TV Penetration times that of time spent for % of Total Population in Each Group Number of Internet Connected Devices (Millions) entertainment on smartphones. Among connected TV users, however, the bulk of time is still spent on what we might consider “traditional” entertainment, though they do turn to Internet content as a way to access options not available through traditional distribution or to simply relax. As connected TV adoption grows, however, we expect to see it take on more aspects of the tablet and smartphone experience, notably social networking and Smartphones Feature Phones casual gaming. Source: eMarketer, April 2012 Connected TVs Gaming Consoles Blu-Ray Players Despite the interconnectivity of Over The Top Boxes Pay TV Set Top Boxes all of these different devices (and Source: Digital TV Research, November 2012 and SMG Analysis, November 2012 the expectations of consumers TABLE 4. to have them work together), U.S. Tablet Users marketers will need to understand Percent of population the predominant ways in which Content social networking. Yet even consumers use devices (and how Tablet users among these two devices, the they use them differently) and Despite consumers’ expectations allocation of time varies greatly; cater content to such device usage. of connectivity and inter- two thirds of time spent on tablets Smartphone applications, for operability of their connected is devoted to gaming, compared instance, might want to take layout devices, they still tend to use with 39 percent on smartphones. and functionality cues from popular different devices in different Social networking accounts for social networking sites (such as ways. Smartphone and tablet about a quarter of time spent on Tumblr or Pinterest), while those users, for instance, engage in smartphones, contrasting with 10 to be used on tablets or connected a variety of activities on their percent of time spent on tablets. TVs will want to make greater use devices, though those activities Smartphones are often pulled out of entertainment preferences, such Source: eMarketer, June 2012 are dominated by gaming and for utilitarian functions: mobile as casual gaming. banking, directions and texting, whereas entertainment activities
    • CH 1 : connection engine 17 Part 2 : context matters Perhaps the most important shop, again shining a spotlight The good news is, many of the thing to remember about the on the need for marketers to newer connected devices are Table 6. GAMING DOMINATES TIME SPENT ON TABLETS Connection Engine is that though understand and adapt to the getting smarter about discerning Time Spent per Category, Smartphones vs. Tablets there are seemingly unlimited evolving consumer journey. the context in which they’re being devices and ways consumers can For example, as a consumer’s used. (Google’s search algorithm stay connected, every device is search for information or content on a mobile device places heavier used differently. As evidenced becomes more complex (vacation emphasis on location than a PC in the sidebar (“The Coming travel; comparison shopping search in order to deliver more Connection Engine Explosion”), by feature or through multiple relevant results.) The result is more smartphones are used in much retail outlets), he or she tends automation behind-the-scenes more utilitarian ways than tablets to move these searches to more and more ease-of-use and utility or televisions. While we expect to “traditional” devices, such as a for consumers, and a greater see more crossover in the coming tablet or PC (even if those began opportunity for brands to connect years (paying bills through an on the smartphone). with more relevant messaging. Internet-connected television; using a smartphone to watch We see mobile and its various long-form video programming), forms of communication and Fluid Content the context of the task to be connection (basic and multimedia- Source: Flurry Analytics, September 2012 accomplished is the most texting, quick-response codes, As marketers, we need to important factor in driving automatic content recognition, understand the variety of ways device choice. near-field communications, consumers might engage with Table 7. etc.) as the connective tissue us in the digital arena (which CONNECTED TV FINDING A PLACE in THE LIVING ROOM In our current connection that brings all of these different is quickly replacing the analog Why Viewers Watch Internet Content on Their Connected TV ecosystem, the phone is still the devices together, with the ability arena), and make sure every primary device for people either to activate other media channels. piece of content is optimized for looking to kill a few minutes Increasingly, the consumer’s each engagement. Already, the while out and about (gaming); or expectation is that their proliferation of connected devices looking for immediate and simple smartphone is the portal (and is accelerating the shift from live or information. Directions, movie first step) to everything else in the linear television viewing to a more times and simple price-comparison real world, including marketing consumer-friendly (and consumer- shopping are all accomplished and advertising. Moving forward driven), on-demand model. easily with a smartphone, and for marketers, having a solid Beginning with TiVo and the potentially disruptive to a variety understanding of the consumer digital video recorder, on through of businesses. Mobile phones have journey or path to purchase and video-on-demand, Internet video irreversibly changed how people the role that each medium, and (Netflix, Hulu, Amazon Instant Source: YuMe/Frank Magid Associates, May 2012 device, plays along the way, will Video, YouTube Channels, and a only increase in importance.
    • CH 1 : connection engine 19 Sidebar : social TV If any trend has dominated the should be a concern to television media industry over the past 18 advertisers, whose messages may months, it is social TV, i.e. the push be ignored as attention is being to get consumers to communicate focused elsewhere. about what they’re watching in more digital distribution channels real time via social media, texting, Like producers and programmers without cannibalizing existing live streams and other connective who are developing companion revenue sources, more challenges media. While some view social TV TV viewing applications to arise. We expect to see much as a means to push consumers keep viewers engaged with activity in this area both at back to viewing live content on programming, marketers, app CES 2013 and beyond, as more a pre-determined schedule, we developers and device makers experimental models that try to believe that genie is out of the are working to enhance the link content with revenue launch bottle and will not go back in advertising experience, developing this year. (See Sidebar: Second- easily, if ever. ways in which mobile and tablet host of smaller players), anytime/ more fragmented viewing channels Screen Entertainment) ads can be viewed in-sync with anywhere content has exploded to will only accelerate. (See Sidebar: That is not to say the multi-screen/ TV programming. While some, become a consumer expectation. Social TV) social TV experience is not without like Shazam, are developing Just as cable moved TV from One To Watch opportunity. A joint Razorfish/ tools around “automatic content tens of channels to hundreds of Bottom line, consumers (unless Yahoo! study from October 2011 recognition (ACR),” which channels, the Connection Engine they work in the marketing, media We expect to see continued revealed that 4 of 5 connected recognizes and syncs to a piece is moving video to practically or some other entertainment- experimentation with premium device owners are using a mobile of audio content in a program unlimited video content/channels. related industry), don’t care about streaming video content models, device or tablet while concurrently or advertisement, others are TV or Internet media revenue including services that seek to watching television programming. looking toward direct-connectivity Yet, from a content perspective, streams, usage rights and release provide consumers even more Other studies suggest social media platforms, (like Apple’s AirPlay the industry continues to struggle windows. They want to watch what choice and control over both buzz can increase TV ratings or Microsoft’s Xbox SmartGlass), with legacy business models that they want, when they want and content and advertising. We and will keep audiences more to create a more immersive have not caught up to these new on the device of their choosing. If are aware of at least one stealth engaged over time. Perhaps most experience. As on-demand distribution channels. Ad loads Napster, Craigslist and other peer- startup in the premium video importantly for TV advertisers, content continues to grow, we in streaming video are still lower to-peer consumer connection sites space that will launch in 2013, with studies have shown significant expect more experimentation with than “traditional” television and (along with the collapse of the an intriguing new approach that lift in key brand health metrics rich two-screen interactivity for will not command the advertising music and newspaper industries) brings valuable new opportunities when ads run on multiple screens, both content and advertising. investment at levels to replace have taught us anything, it is we to consumers, content providers suggesting a stacking effect. the lost TV revenues. While event must provide consumers with and brand marketers alike. ONE TO WATCH: Samsung. television, such as the Super Bowl, the easiest and best options for Though it’s possible, even likely, At this year’s CES, Samsung is World Cup, March Madness, MLB the content they want, on their many of these consumers are unveiling an innovative, cross- Playoffs and Academy Awards, schedules, or they’ll go out and using their tablets and mobile device ad platform that enables will continue to attract large live create those options themselves devices in conjunction with the mobile phone users to simply viewing audiences, the shift to leaving both the media and programming they’re viewing shake their device during specific on-demand programming and marketing industries behind. (see Sidebar: Second-Screen TV commercials to receive content Entertainment), it’s clear many and/or more information about However, as content providers of them are multitasking with the product being advertised. continue to work to meet these devices, doing something It is internally dubbed as Project consumer demands through completely unrelated to the S-Catch. program they are watching on the main screen. Such behavior
    • CH 1 : connection engine 21 Part 3: Sidebar : Second-Screen The Implications Entertainment As the Connection Engine The big screen in the living room Another aspect of social TV that Ownership of this second- develops, media streams will remains an extremely effective has been getting some attention screen experience will be a new become much more fragmented. way to connect with audiences. is the so-called second screen, battleground that we expect to Brands looking to remain Yet, it, too, is becoming part of through which content providers heat up in 2013. While producers, connected and engaged with the Connection Engine – both in supplement programming (often networks and programmers their consumers will need to learn the form of TVs connected to the on the television), with closer develop apps and companion to follow the eyeballs across an Web, and through smartphone looks into programming via a viewing experiences for different increasingly fragmented media and tablet devices used while second screen (often a tablet or shows, we wonder how many landscape, and to find the ways watching TV. The interactivity, smartphone). In these early days individual apps consumers are that best connect across different choice, control and instant of second-screen entertainment, willing to tolerate and engage consumption environments. access to content/information all content providers are still with. Though they may regularly It will also be essential for apply here as well, and it is crucial experimenting with finding the watch a dozen shows, we find marketers to not only consider that marketers deliver on right multiple-screen option that it unlikely many consumers will the environments through which that expectation. works best with consumers. ABC take the time to download more they’re engaging with consumers, created an early effort with an app than one or two apps dedicated but also the devices most often While mobile has become an tied directly to its Grey’s Anatomy to individual shows. At CES this used in those environments. increasingly important platform program. That app has been year (and beyond), we expect to Messaging and content must for brands, marketers should criticized for ultimately becoming see a number of startups fighting be optimized both for the be cautioned against focusing a distraction from the primary to be a single “uber-app” that will environment where they are most too much on one platform or entertainment content, the show enhance the viewing experience likely to be used (living room, strategy in isolation. Campaigns itself. Other content providers across a consumer’s entire lineup office and sidewalk), and for the and marketing programs should have similarly struggled with of favorite shows. Companies device the consumer is most be conceived, developed and providing the right balance for such as Viggle (which recently likely using (smartphone, tablet produced along a multi-screen their second-screen programming, bought fellow startup Get Glue), and television). strategy, with content that and we expect even more hits and Zeebox and IntoNow, have optimizes device capability (while misses as the winter television already started jockeying for that Marketers should resist the minimizing device limitations), and season develops. position (Zeebox, for instance, temptation to simply migrate with the context and environment has support from Comcast, NBCU an analog ad (such as a static considered. Marketers must and others), but no clear leader print advertisement) to the understand that, for the consumer, has yet emerged. digital platform. Ideally, ads the brand experience migrates should take full advantage of the across platforms and devices. They interactive, immersive and sharable will expect marketers to know capabilities of new platforms them, remember them and recall enabled by the Connection Engine. the interaction you’ve had with them in the past – regardless of platform, device or environment.
    • CH 1 : connection engine 23 Key Takeaways And they will expect to build And yes, we’ve said it before, 24/7 connectivity is no longer consumers will expect all of upon that experience, rather than but consumers will reward brand a novelty. For many consumers these devices to operate with the starting from scratch each time. experimentation along multiple across the globe, an always-on same functionality (and to pass platforms. The ideas that seem connection is commonplace. information across each other). As consumers engage with risky to a marketer have already content in different ways and become commonplace to Consumers are connecting with Consumers may be using more across different platforms, they consumers who are moving much brands and each other across a than one device at a time. will expect more control in how faster in adoption of technology wide array of devices in varied Distraction and multitasking the content is presented, how and the Connection Engine than environments. They expect will continue to divide consumer they will interact with it, and how many brands or marketers. They every experience – regardless attention. It is up to the marketer they choose to participate with a expect to be met where they are, of device, time or place – to be and/or media provider to offer brand. Such engagement is a key and will not come to you. Seek seamless and intuitive. A day- different engagement levels part of 21st century marketing, them out, engage with them on parted, multi-screen plan that and opportunities to retain and smart companies will embrace levels they expect and reward embraces the fragmentation of the consumers’ attention. it, understanding that the more them for that engagement with Connection Engine is a necessity interaction, participation and simplicity and seamlessness. for most marketers. And, it is up to Content must take advantage involvement a consumer has with marketers and media companies of device opportunities, while a brand, the more effective all to ensure experiences work fluidly acknowledging and mitigating marketing and advertising will be. across every platform. device limitations. Programming that works well on a smartphone Consumers use different devices may not translate to the tablet or in different ways (at least for television in the same way. now). The smartphone and mobile device may be the first level of The consumer journey is in a information gathering, but more state of evolution. Overheard at complex information searches a conference: “The purchase and tasks tend to move to more funnel has become the purchase “traditional” devices like a PC. pretzel.” Truer words were never Entertainment (including gaming) spoken, as the Connection is still the primary function of Engine has irreversibly changed the tablet and television. It’s the purchase decision process. likely many of these functions Marketers must adapt. will converge over time, and
    • CH 1 : connection engine 25 Things to look for Hardware and software players will Device manufacturers will continue continue to find ways to make it to experiment with touch, gesture easier to migrate content across and voice controls, trying to screens and platforms. Apple’s make the user experience simpler, AirPlay has enabled this for years, more immersive and intuitive and and Microsoft has brought the seamless among different devices capability to Xbox. Samsung and and operating systems. other manufacturers are building their own methodologies as well. The Internet of Things will take hold. Beyond the devices The line between the device types we’re already aware of and use is blurring. Operating systems like daily, more and more common Windows 8, which adopts touch- devices will begin to connect first interface that is similar across to the Internet, providing real- desktop, phone, tablet and TV, is time updates and information in only the beginning. This, along places we may not have thought with the development of smaller of before. (Nest Thermostats devices will mean more portability, learn a person’s habits while simplicity and connectivity. We’re determining when and how to turn expecting a bevy of laptop/tablet on a furnace; Google is developing convertible machines built to Internet-connected glasses; leverage Windows 8. Ambient Displays, which provide real-time information at a glance, will become more prevalent—and a significant part of digital out-of- home advertising.)
    • 28Chapter 2Data-Driven Marketing
    • CH 2 : Data-driven marketing 29 Bryan Scanlon Rob Jayson Dave Morgan Matt Spielman President, Schwartz Chief Data Officer, CEO, Simulmedia SVP of Strategy, Moxie MSL and North America ZenithOptimedia Technology Director, Dave Morgan is the CEO and Matt Spielman is the SVP of MSLGROUP Rob Jayson leads ZenithOptimedia’s founder of Simulmedia. He Strategy for Moxie, a full-service worldwide data strategy, a role he previously founded and ran both digital advertising agency within Based in Silicon Valley, Bryan assumed in 2012. A combination TACODA, Inc., an online advertising the Publicis Groupe. He heads Scanlon is the president of of continual innovation, robust company that pioneered the digital AOR and leads the Schwartz MSL, a global public analytics and tools development behavioral online marketing and strategy and innovation initiatives relations agency specializing in have allowed him to be was acquired by AOL in 2007 for for L’Oreal USA. Prior to joining the technology, health and energy instrumental in finding new and $275 million, and Real Media, Inc., Moxie, Spielman spent six years innovations that transform business, exciting ways to approach one of the world’s first ad serving at MTV Networks where he preserve the planet and save lives. communications planning. As and online ad network companies helped build the network’s Client He also leads the MSLGROUP North Chief Data Officer, Rob oversees and a predecessor to 24/7 Real Solutions Division, working with America Technology Practice, the agency’s Global Analytics Media (TFSM), which was later senior marketing clients to develop helping clients move innovation to Center (GLANCE), collaborating sold to WPP for $649 million. and deploy marketing initiatives the forefront of their brands, and with ZO entities such as Ninah, After the sale of TACODA, Morgan that leveraged the entirety of specializes in information security, Performics and Moxie. He also served as Executive Vice President, MTV Networks properties, brands big data and analytics, and data- manages the implementation of Global Advertising Strategy, at and assets across all media. He driven thought leadership and the ZO Datamart and reporting AOL, a Time Warner Company also served as Vice President marketing programs. Scanlon tools suite, and focuses on brand- (TWX). He serves on the boards of Business Development and has a 20-year track record of specific data strategies, such as of the International Radio and Account Management at IAG building awareness, valuation, ZenithOptimedia’s “Live ROI.” Most Television Society (IRTS) and the Research (acquired by Nielsen). At sales and brand equity for some recently, Rob served as President American Press Institute (API), and IAG, he oversaw a research team of the most successful technology of Strategy for Zenith where he was a long-time member of the that advised senior marketing companies. He’s taken many was responsible for developing executive committee and board executives and their agencies on clients from start-up to market communication planning of directors of the Interactive the effectiveness of their TV and leadership and reinvigorated methods, ensuring planners led Advertising Bureau (IAB). in-theatre marketing efforts and established technology brands. their clients and the industry in made recommendations on how to This includes work with Red Hat, creating unique and powerful improve their results. Netezza, Symantec, ServiceNow, communication strategies. Hortonworks, Blue Coat, webMethods (now Software AG), Imation, LifeLock, ESET and MicroStrategy. You can follow him on Twitter @bkscanlon.
    • CH 2 : Data-driven marketing 31 Part 1 : Introduction The Rise of Big Data The world is awash in data. Every ever before, but we’re still trying Data has always been a centerpiece That’s what consumers and data Data, while exploding, is becoming time a consumer uses a credit to figure out what information of marketing. From decades-old companies are producing and easier to manage, combine and card, a purchase-history is created. is good and what is bad. What techniques such as consumer storing every year. According to evaluate. Martin Hilbert and Loyalty programs grant companies information is truly effective at research surveys, product McKinsey, “The increasing volume Priscila López in Science magazine and retailers access to consumers’ increasing our ROI, and what is purchaser panels and customer and detail of information captured analyzed global storage and purchase patterns and preferences. just more “white noise?” We’re relationship marketing to newer, by enterprises, together with the computing capacity, and found that Every mouse click leaves a trail only now beginning to understand financial-market approaches rise of multimedia, social media, not only is our ability to accumulate to follow. We know more about what works and what doesn’t. But like time-series modeling, chief and the Internet of Things will fuel and store data growing, but storage consumers than ever before, and even as we do, more information marketing officers have always exponential growth in data for the capacity has become almost they know more about us. is presented to us, sometimes looked to data and analytics to foreseeable future.” 2 exclusively digital (as opposed reinforcing our marketing drive their decision-making. to analog). 3 All of this data can be empowering, programs. Sometimes, it requires In the modern age, however, two or it can be daunting. More them to change completely, on a critical changes are transforming information means greater insights, moment’s notice. The need to be the marketing landscape in ways Data storage has grown significantly, shifting markedly from smarter thinking and better nimble, agile and flexible has never we could not have imagined. First, analog to digital after 2000 decisions all around. But with been greater. there has been a huge increase of Global installed, optimally compressed, storage new data coming in every day, we available data to track consumer can become subject to “analysis We have reached a point where attitudes and behaviors in real Overall Detail paralysis,” delaying decisions and the art of marketing and the time. Second, we as marketers Exabytes % : exabytes programs until we get the most science of data are completely have increased our ability to blend 3 10 54 295 information possible, to be sure intertwined, and are ever more and filter that mass of data into 300 100%= Digital 1 3 we’re making the right decisions. inseparable. It’s time to learn how actionable insights that shape The key is for us to recognize that to harness the ever-increasing marketing campaigns at the 250 25 data is not information, nor is streams of information (mobile strategic and the tactical level. 200 information the same as insights. and social alone are creating a Instead, we have to process data large number of data sources) The explosion in consumer data 150 94 to reveal insights on a timely basis and use them to our benefit—just is massive and exponential. Analog 99 97 that can be actionable. as consumers are doing with According to the McKinsey Global 100 75 the information they get. Rather Institute, the volume of consumer Fifteen years into the Information than making our marketing data- information generated in a year 50 Age, we’re just figuring out what dependent, we need to make it has exceeded six exabytes. That 6 it all means. We have access to Data-Driven. number – one that we cannot even 0 more data and information than really define – would fill more than 1986 1993 2000 2007 1986 1993 2000 2007 60,000 U.S. Libraries of Congress. NOTE: Numbers may not sum due to rounding. It’s more than every word spoken SOURCE: Hilbert and López, “The world’s technological capacity to store, communicate, and compute information.” Science, 2011 by humans if they were to be digitized as text. 1 1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition, and productivity,” June 2011 2 Ibid. 3 Hilbert and Lopez, “The world’s technological capacity to store, communicate, and compute information,” Science, 2011
    • CH 2 : Data-driven marketing 33 Sidebar : are you prepared? We all know the era of Big Data is issues that could be resolved upon us. Yet, many in the industry with the help of Big Data and are still unprepared. A recent IBM prioritize them. The most critical CMO survey showed that – while and beneficial step that any brand CMOs understand in no uncertain leader can take, in order to start This change in capacity and the brands we market to them. terms how critical Big Data is to the process of harnessing the digitization of data storage has We also have the potential to their future success – many admit power and insights of Big Data, is huge implications. We now have manipulate, match and manage they have yet to find the correct to establish a data strategy and a a window into consumers’ lives that mass of data in almost techniques and management set of key performance indicators and almost every aspect of their limitless ways. (See Sidebar: approaches. Forrester, meanwhile, (KPIs) that outline in detail the relationship that they build with Are you prepared?) surveyed business decision- direction of insights that are makers about what they viewed needed from data analysis in order as their most critical challenge to increase marketing ROI. Percent of CMOs reporting underpreparedness in putting Big Data to use effectively. The responses were The systems and data priorities 50% all over the map, and the fact that that are established will clearly Data explosion 71% there was little consensus shows be significantly different if the that each organization needs to organization’s top Big Data priority Social media 68% set its own priorities about how to is about the ability of the internal Growth of channel and device choices 65% tackle Big Data. organization to share data in real time as opposed to a primary Shifting consumer demographics 63% However, no task is more essential challenge of not getting access to Financial constraints 59% than to examine all of the potential real-time data at all. Decreasing brand by loyalty 57% Growth market opportunities 56% TABLE 2 ROI accountability 56% Biggest challenges to use of “big data” for marketing Consumer collaboration and influence 56% We have too little or no Privacy considerations 55% customer/consumer data 29% Global outsourcing 54% Our data is collected too infrequently or is not real-time enough 39% Regulatory considerations 50% Corporate transparency 47% The lack of sharing data across our organization is an obstacle to measuring the ROI of our marketing 51% We are not able to link our data together at the level of individual customers 42% We aren’t using our data to effectively personalize our marketing communications 45% 0 10 20 30 40 50 60
    • CH 2 : Data-driven marketing 35 Part 2 : The Live Data Stream All of this data is being set up TV for a multitude of purposes. for another revolution: the Live Some use them to multitask, SOCIAL NETWORK USERS AND Smartphone owners lead the way in Data Stream. With powerful PENETRATION IN NORTH AMERICA “connected viewing” experiences conducting online searches for portable devices and always- millions, % of internet users % in each group who have used their phone in the preceding 30 days to... information. Others post to their on connections, consumers are and % of population social media feeds. Still others constantly feeding a stream of 189.2 SMARTPHONE OTHER CELL use their phones to participate 181.9 data—in real time—about brand 174.7 OWNERS (N=904) OWNERS (N=1050) in promotions they’ve seen 163.9 attitudes, feelings and behaviors. Keep yourself occupied during commercials advertised on television, or 58% 17% or breaks in what you were watching through their secondary online This data, can be harnessed and 65.8% 66.9% 68.0% Check whether something heard 37 6 browsing. Each one of these data 63.6% was true or not turned into actionable insights. points tells us something different 51.4% 52.9% 47.2% 49.8% Visit a website mentioned on TV 35 3 about the effectiveness not only Thanks to smartphones, tablets Exchange text messages with someone 32 13 of the message, but of the channel watching the program and other connections, consumers and attitude of the consumer to have turned to digital channels See what others were saying online about a 20 2 the brand messaging they’re being program you were watching to supplement their knowledge, exposed to at that very moment. 2011 2012 2013 2014 Post your own comments online about a behavior and attitudes to brands. program you were watching 19 2 Social network users This has dramatically increased the Recommendation engines are a % of internet users Vote for a reality show contestant 9 4 volume of real-time or live data % of population perfect example of how brands that brand owners and agencies have structurally adjusted to the can access to illuminate up-to- NOTE: Internet users who use a social benefits of Big Data analytics to the-minute changes in brand network site via any device at least once per great advantage. Amazon (and month; includes Canada and the US metrics. But those metrics aren’t SOURCE: eMarketer, Feb 2012 most other e-retailers) have coming to us in the easily defined developed effective real-time and “traditional” formats of past recommendation engines based consumer behavior. Rather, on analysis of massive amounts of they are coming in the forms will grow to cover more than 50 real-time data to engage shoppers consumers have already embraced, percent of the North American without resorting to traditional like social media. population through 2014.4 Every mass, untargeted pricing and “Like” of a brand on Facebook, discounting. The ability to create Even more is coming. According and every brand-name hashtag personalized, helpful suggestions to an eMarketer forecast, social on Twitter is another piece of for consumers has had a significant network growth, although slowing, data that can be used to inform Facebook and other social a constant companion for impact of customer satisfaction marketing, but each comes with its media are not the only sources consumers, and are used during data, and there is clear evidence own set of rules and parameters. of live data, and they are not their traditional media experiences. that satisfied customers are more the only cause of the explosion. Pew Research shows that 74 likely to purchase, be loyal and to Smartphones have become percent of smartphone owners recommend a brand.5 use their device while watching 4 eMarketer, “Social Network Users and Penetration in North America, 2011-2014,” February 2012 5 Foresee 2010 Retail Satisfaction Index
    • CH 2 : Data-driven marketing 37 Part 3 : From Automated and Tactical to Predictive Learning how to harness and of a Predictive Company (as 2. Big Data accelerates decision- manage this data can yield opposed to a Tactical, Automated making. Customer churn, for Sophistication level* of their current personalization efforts according to US retailers, q3 2011 huge returns. Nucleus Research or Reactive one.) example, can be addressed in real % of respondents found organizations can earn an time, rather than only fixing issues incremental ROI of 241 percent Nucleus Research identified four that contribute to churn long by using Big Data capabilities to critical areas of benefit to big data after a customer has left, live-data examine large and complex data analytics that organizations can analytics can uncover and suggest 7-10 13% sets. These returns are the result of realize from the use of Big Data: solutions for better customer improved business processes and retention as they emerge. decisions through optimizing the 1. Big Data solutions that 1-3 increased types of data available encompass vast data sets enable 3. Combining external data with 54% 4-6 solutions that link all aspects of internal data adds significant and the ability to monitor the 33% factors that impact a company the business together. value to internal data. Adding most, such as customer sentiment, Retailers can link insights about geographic, meteorological or by scouring large external data their loyalty program customers other external datasets creates sources such as social media sites. with in-store behavior and much more sensitive analytics. These abilities are the hallmarks social behavior. 4. Big Data analytics is critical NOTE: *on a scale of 1-10 where 10 = “very sophisticated” and 1 = “not at all sophisticated” SOURCE: the e-tailing group, “Prioritizing Personalization For Growth,” Nov 11, 2011 to successful online sentiment monitoring. The ability to define 1400% meaningful results from “noise” is not really possible without new Big The data that would allow brands To manage this ever-increasing, 1200% Data techniques. to personalize the experience in live-stream of Big Data, RETURN OF INVESTMENT real time for consumers is already organizations must set themselves 1000% Yes, these changes are difficult. available, and some brands are up internally to respond to the And it may require years of finding ways to put it to work. insights available. Brands must 800% “unthinking” the practices of the That said, brands are still a long adjust their internal processes past. But marketers who can way from being able to deliver and marketing plans in ways that 600% make the attitudinal and structural on that opportunity. The e-tailing will enable them to immediately modifications to realize the full group surveyed 131 mostly large respond to consumers’ actions as 400% benefits of Big Data will reap Predictive significant rewards. Moving from and mid-sized Web merchants in information is received. Consumers Strategic Q3 2011, and found that more than have embraced social media and 200% a tactical/reporting position to a Tactical half gave themselves poor marks in other live interaction opportunities strategic and predictive approach Automated their personalization efforts. with brands. It is incumbent on 0% will generate a measurable Automated Tactical Strategic Predictive the brands to respond in-kind with increase in marketing ROI, and a immediate, personalized responses. significant lift in business. (See Sidebar: Moneyball)
    • CH 2 : Data-driven marketing 39 Sidebar : Marketers Must Play ‘Moneyball’ The popular book and film As media become more digital— percent of the target audience, "Moneyball” illustrated how the and, as a result, more targetable, and a full 30 percent of the smart use of data and statistics measurable and accountable— desired target receives none. The transformed a 150-year-old sports these analytics will be crucial. culprit? Audience fragmentation. 1st pastime and business. The same is 3rd Party Even television, which has long Fifteen years ago, that 80 percent Data happening with advertising. Party resisted change is changing fast was spread to more than 60 Data For years, baseball had been as more of it is delivered through percent of the target, and the managed according to gut instinct digital set-top boxes, over Internet size of the unreached target was and near-mythical truisms. In the planning protocol networks or on the tens very small. Now, data analysis is data early 21st century, one outlier, Bille of millions of new smart, Internet- being used to determine the exact Beane, used data, statistics and connected TVs and companion makeup of a shows audience and financial market-like techniques devices that are shipping around to perfectly measure and manage to bring success to a payroll- the world this year. Not only will the reach and frequency of TV challenged team. Beanes use of these new TVs connect directly ad campaigns with online-like sophisticated data analysis to to the Internet, but they will run frequency capping. identify which player statistics Web-based apps, link new cloud- really mattered—a players on-base not just about online messaging based streaming services and Finding elusive audiences. database percentage rather than batting exposure and real-time response. also produce a treasure-trove of Trying to find young males management average, for example—gave Now, there is real-time behavioral platform data and direct consumer-viewing outside of sports content? him a real advantage in finding data on our customers, allowing us measurements, which will open up Hispanic audiences within players who were undervalued to figure out their level of interest TV advertising to Billy Beane-like English-language content? Or by his competition. These days, in our brands, their loyalty and transformation. light TV viewers you cant reach potential for incremental cross- These Database Management efficiently with broadcast-centric the research and insights Beane sales. Matching first-party data Platforms, where we collect and This does not mean that the prime-time campaigns? Data will used have become commonplace from brand customers with third- analyze the Big Data that comes “art” of the media industry will find them. Marketers will discover among his competitors and all of party data from other online and from brand customers as well be forever trumped by “science.” gold using data to aggregate Major League Baseball. offline sources, can give marketers as other online behavior, offer However, decisions about which valuable audiences from and their agencies unprecedented the potential to make strategic media to buy will no longer be unconventional places. Marketers must apply the same insights into the relationship and tactical marketing decisions driven by history, comfort and game-changing insights to the of media and messaging at the based on a mass of statistical relationships. Data and predictive Creative testing. With robust information available to them. For campaign and individual spot data and analysis that has never science will drive more and more cross-channel data, you can now marketers, the data explosion is basis to specific brand customers been available before. To stretch media decisions. And the results know which viewers abandon your and their actions. an analogy, we can draft new will solve many of the problems ads and which viewed them. Not target audiences, never before plaguing our industry. Such as: only will we learn which audiences considered based upon the actually like our ads, but well be behaviors we have seen from Wasted frequency. In most mass- able to test and optimize creative the data analytics on current awareness TV ad campaigns in the customers and potentials. US today, 80 percent of the spots end up being delivered to only 35
    • CH 2 : Data-driven marketing 41 units in live environments. Think of into ad campaign deals. Imagine Becoming a Predictive Company, the improved efficiency if we can delivering your Gross Ratings however, will require changes Analytics and data science job growth get audiences to stick around and Points with set-top box data- in the ways many do business, watch ads because the data tells based guarantees of specific both at the macro and day-to- 0.1 Analytics and data science job starters (as a percentage of all job starters) us which ads will stick with them. audience compositions—such as day levels. In a world soon awash frequent moviegoers who like in Big Data and opportunities to 0.09 Secondary measurement and dramas, or Coca-Cola brand fans— use it, one thing is clear: there promises. Nielsen, comScore or guarantees of attributed sales are not enough people in today’s and panel ratings arent going by linking household-level viewing marketing organizations with 0.08 away. Macro audience ratings data with actual purchases. the level of experience in using will be with us for a long time. Big Data to make companies 0.07 However, those measurements We’ve moved into the “Moneyball” successful in the future. And many will be supplemented with micro- era. Are you ready? of these organizations do not measures of exact audience have the right tools and processes 0.06 patterns, which will be baked needed to survive—much less thrive—under the coming tidal 0.05 wave of information. In the Big Data-driven world, 0.04 marketing organizations need to infuse themselves with experts. 0.03 Mathematicians, scientists, statisticians, software and hardware engineers. All will be 0.02 important to companies looking to harvest and harness Big Data 0.01 and turn it into useful, actionable information. It’s a page from 0 the playbook of today’s fastest- growing digital companies. Look 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 at the hiring practices of Google, Amazon, Apple, Microsoft, Facebook and Twitter. Employees Tech-savvy leadership. Hard science. Many marketing- in those companies are different Not only are the most successful related companies, particularly from those hired by traditional digital companies well-stocked in media, still rely on qualitative marketing and media companies. with engineers, scientists and tech- “social” science in much of their They possess: centric product managers, but decision-making, not the kind technology is the primary skill set of quantitative sciences needed of their leaders and their workers. to exploit Big Data. Yet, hard They drive the businesses, the numbers are the new reality of products and the core strategies.
    • CH 2 : Data-driven marketing 43 the advertising and marketing However, hiring the best is only millions upon millions of dollars. the domain of the research industry. Marketers need part of the equation. (And a In many cases, enterprises department is now available to cognitive scientists, statisticians, very difficult piece at that. There can build or buy analytic data managers at all levels of marketing mathematicians and physicists. is a limited pool of emerging warehouses that are 100 times organizations. (See Side Bar: talent with Big Data skills, and bigger than those available 10 Trust and Security) Diversity. In fast-growing digital, competition for the best is years ago - for 1/100 the cost. data-driven companies, diversity intense—much like the competition Investing in new employees, is a competitive advantage and a we’ve seen for computer scientists This means companies with data technologies and processes to business imperative. over the past 10-15 years. It’s a technologies that are only five better serve Big Data is not an certainty that demand for data years old will find themselves option. Companies looking for Impatience. Companies like scientists will outstrip supply for at significant disadvantages competitive advantages will target Amazon, Google and Apple years to come.) Companies must in both capabilities and cost these three areas for strategic, have relatively flat organizational also adjust, adapt and improve structures to competitors with competitive and market share cultures, and their employees their internal processes and new technology. Investments in growth. Those that do not will be have no time or patience for the procedures to ensure they’re set new data technology on a regular left behind. kind of long, escalator-like ride up to capitalize on the information basis will be critical for marketing over decades to reach leadership and insights created by these enterprises to remain competitive. The era of Big Data is upon positions that exist in many non- streams of Big Data. Among the us. Thanks to the tools of the digital companies. They know what things they need to keep in mind: Data analytics is becoming Connection Engine (smartphones, they want and they want it now. more broadly accessible tablets and super-fast, always- Big Data technology is across organizations. on connections), consumers are Versatility. In traditional getting bigger, better, Not only can these new data giving marketers a wealth of marketing organizations, many folks faster and cheaper. systems store massive amounts actionable information. It’s up to are “bucketed” into roles and silos Innovation in analytic tools, of data, but they can also manage marketers to turn that information during early stages of their careers systems and platforms has unstructured data, giving users into valuable insights and and find success through focus exploded over the past few far more flexibility in how they programs that reward consumers and unique expertise. Invariably, years, particularly in the open- organize, manage and query the based on their needs, information some of the strongest talents in source community. Open-source data. This is helping companies and realities. The data is coming emerging, digital and data-driven data management technologies make data much more accessible in real time and marketers must companies have degrees that span like Hadoop and pay-as-you- and available across organizations. react with the same spontaneity. both science and arts, work better go cloud-based data services Whether it is trying to understand Information moves at the speed of horizontally than vertically, and take like Amazon Web Services and purchase behaviors of target light; marketing programs will have pride in constantly changing gears Mongo Database are replacing customers or sales attribution to move just as quickly. in their careers. comparable data management to social media, what was once systems from companies like IBM, Oracle and Teradata that cost
    • CH 2 : Data-driven marketing 45 Sidebar : Big Data: Big Security Needs Fifty-five percent of CMOs feel social, mobile and financial unprepared for the privacy ecosystems safe from security considerations in the exploding breaches or organized hacks. digital world (Source: 2011 IBM CMO Study). Every state has different levels of breach notification and action. In March of 2012, the Federal Trade With nationwide customer Commission (FTC) published bases, resolution is messy, time- “Protecting Consumer Privacy consuming and expensive for in an Era of Rapid Change,” anyone experiencing a breach. delivering basic principles And according to research done that emphasize awareness, by Imation (see image, right), the transparency and care in dealing strictest states have relatively with customer or community low bars that trigger mandatory information. The report mandates notification of consumers, credit protection at many levels, simple agencies and government entities. customer-driven options and transparency and disclosure. Actual or even perceived violations are a one-way ticket to losing a “In its guidance and actions, the customer, not to mention fines Federal Trade Commission (FTC) and potential costs of remediation. is asking for privacy by design, There is clear expectation that built from the ground up with brands will be careful with consumers getting notice and personal information, and errors choice,” says Gary Kibel, a partner come with a high price. According in the Digital Media & Privacy to ongoing research from Practice Group of Davis & Gilbert. PricewaterhouseCoopers LLP, “If you are a brand, you have to consumers are far more worried look at the whole process of how about security breaches than data flows.” privacy, and 61 percent of those surveyed said they’re “not willing In addition to stricter privacy to continue to use a companys guidelines and increased FTC services or products after it action, another real brand experiences a security [breach].” threat emerges: the increasing (Source: http://www.pwc.com/us/ complexity of keeping data that en/industry/entertainment-media/ resides and moves across complex assets/pwc-consumer-privacy- and-information-sharing.pdf)
    • CH 2 : Data-driven marketing 47 Things to think about key takeaways “Consumers feel more comfortable on the CES Floor sharing information if they understand the benefits to them individually or as To realize their full potential, The ability to collect and analyze Every new technology will part of a larger group” – PwC survey. organizations must be set up massive amounts of data and provide you with access to even to respond to Big Data insights the application of predictive more consumer information. in real time. Brands will need science are transforming how How will you access it? How to adjust their marketing plans marketers and agencies manage will you incorporate it into your Big Data requires a trust reset and what brands to even pay attention to immediately respond to media. These insights can help current marketing processes? close, careful management of data to in the increasing barrage consumers’ actions as they learn develop strategies and reach new Are you equipped to harvest and in the new world. But the good of information. about them. Consumers have potential target audiences with harness that data with personnel news is that consumers are eager embraced social and other live- customized messaging, as well as and/or technological systems? to partner on privacy, and the best According to the 2012 “Trust interaction opportunities with aid measurement, optimization, What might you need to add to marketing tackles engagement Factor” study by About.com, 84 brands, and they fully expect attribution and accounting. your internal operations to yield as a partnership with clear and percent of consumers say “being trustworthy is a requirement brands to respond in-kind the best information from this agreed-upon benefits for all. with immediate, personalized Marketing organizations will data? How will it support and/or before interacting with a brand responses. not be able to exploit Big Data work in conjunction with other Consumers seem to have an or info source.” (Source: http:// without investing in new types of data streams? insatiable appetite for monetary www.advertiseonabout.com/ It will take considerable change people, technology and processes. incentives, trend information wp-content/uploads/2012/07/ AboutTheTrustFactor.pdf) for brands to begin to realize the It will be a requirement. and a desire to be part of full benefits of Big Data analytics. something broader. According But if those hurdles can be In the Big Data world, security and to PricewaterhouseCoopers In the era of Big Data, trust and overcome, the benefits are clear trust will become brand currency. LLP surveys, “80 percent of security will become something as and significant. Moving from a Strong security and privacy respondents said they were willing valuable (if not more so) than any tactical/reporting position to a communication can actually to share personal information other brand attribute. Consumers strategic and predictive approach strengthen customer loyalty. Trust if the company lets them know will be on the lookout for brands will generate a measurable is good business, and it is (and upfront how they are going that treat the information they’re increase in marketing ROI. should be) desired by consumers to use it.” sharing with respect, rewarding and the agencies looking to those that value the information in protect them. Meanwhile, brands are becoming trustworthy and secure manners, their own news organizations, and shunning those that do not. pushing out data and advice to Consumer trust and security of their customers and markets. their personal information must But in an age where information get the same attention as every saturates, trust is one of the vital other brand attribute. filters for consumers to decide
    • 50Chapter 3commerce+Meeting the Needs of Today’sOmnichannel Shopper
    • CH 3 : Commerce+ 51 Samantha Starmer Paul do Forno Jason Goldberg Brian Walker Darin Archer VP Experience, Commerce SVP, Commerce & Content VP Strategy, Commerce & SVP Strategy, hybris Sr. Product Marketing & Content, Razorfish Razorfish Content, Razorfish Manager, Commerce Brian focuses on strategy at Adobe Samantha Starmer is the Vice Paul is the Senior Vice President Jason “Retailgeek” Goldberg is hybris software, a leading President of Customer Experience for the Commerce and Content the Vice President of Strategy enterprise commerce solution Darin Archer joined Adobe tasked for Razorfish’s Commerce Practice at Razorfish, a national, for Razorfish’s Commerce and provider with commerce platform, with transforming adobe.com and Content Practice. Prior multi-discipline practice of user Content Practice. He is a 4th order management, product from a channel focused brand site to Razorfish, Samantha was experience, strategist, business generation retailer with over 20 content management (PCM), and with a separate eCommerce store Director of eCommerce Customer process, technology, and research years of experience in shopping mobile commerce solutions for to a single immersive experience Experience at REI, a leading professionals. Paul has over 18 marketing. Jason has served as B2C multichannel, B2B, telco, that enables commerce at every national outdoor retail co-op. years of experience in a broad a principal customer experience and digital commerce. point of content consumption. There, she was responsible for set of roles — including strategy, architect for major retailers and Prior to joining Adobe, Darin has creating and incubating user consulting, technology, digital well-known brands, including Brian formerly was a Vice President led large-scale transformations of experience, interaction design, experience, and large program Best Buy, Levi Strauss & Co, at Forrester Research where he eCommerce and CRM experiences information architecture and management. He’s accomplished Microsoft, Procter & Gamble, authored many leading Forrester for fast-paced start-ups and experience strategy teams, at managing high performance, Sony, T-Mobile, Target, and reports, such as: “Welcome to Fortune 500 companies. He focusing on optimizing the globally distributed teams that Walmart. He has served as the Era of Agile Commerce”, “The has spent his career wrangling commerce customer experience integrate creative, business Sr. Director of Marketing for Agile Commerce Platform”, “B2C technology to meet business and driving sales and conversion. consulting, and technology. Blockbuster Entertainment, and eCommerce Platform Wave”, and needs. Today he’s responsible for Samantha has over 15 years Through the years, Paul has held senior leadership positions the “Global Commerce Service product marketing of Adobe’s of experience in leading large, served a wide range of companies, for several leading retail customer Providers Wave.” “experience-driven commerce” customer-centered programs including Target, Hyatt Hotels, experience firms. Most recently initiative and the Adobe from strategy through design and Victoria Secret, Lululemon, Jason ran the strategy practice In his role at Forrester Brian also Experience Manager solution execution at companies such as BMW, Borders Books, and for a leading cross-channel provided strategic consulting for with hybris. Microsoft and Amazon. She has a TE Connectivity. e-commerce firm, responsible for Fortune 500 companies on their Masters in Library and Information several billion dollars in annual eCommerce and multichannel Science from the University of e-commerce. Goldberg studied strategies, technology strategy, Washington and regularly teaches cognitive psychology and usability vendor selection, organizational graduate level courses and under Jakob Nielsen and Don development, and operations. presents on customer experience Norman. He has observed tens of Brian’s past roles have spanned and information management. thousands of shopping sessions both business and technology on-line and in-store. leadership within large, established online retailers, online travel businesses, eCommerce technology providers, and start- ups focused on eCommerce.
    • CH 3 : Commerce+ 53 Introduction The linear path to purchase is of a mouse or the swipe of a finger, The challenge now is that the dead. Purchasing a product in products, pricing and availability “shopping experience” is no 2013 occurs across a multitude of in the comfort of their own home longer easily defined. Research devices, channels and touchpoints or wherever they may be. The (including price comparison, determined by the consumer. proliferation of new devices and quality, fit and reviews) is While physical retail stores - which multiple screens – along with happening online in many Lisa Hurwitz Karuna Rawal had once been the only place to near ubiquitous connectivity – different locations: the home, EVP, Group Account Executive Vice President, browse, research and consider has resulted in greatly changed the office, the subway and Director, Leo Burnett / Strategy Director purchases - remain the center of consumer shopping behaviors increasingly, in stores. Another Arc Worldwide Leo Burnett Group the many shopping experiences, and expectations. Leo Burnett study showed consumers are now enhancing or that 29 percent of all category Lisa wears a dual hat for the Karuna brings over 15 years of replacing their in-store experience Time-crunched consumers are interactions occur prior to agency - shopper marketing experience in brand management with the Web and mobile apps. finding the “always open, always stepping foot in a physical innovator and global P&G business and shopper marketing across A 2012 Leo Burnett survey found on” virtues of digital storefronts retail environment where the leader. Lisa leads Arc’s P&G the CPG, retail and healthcare that an average shopping decision more convenient and efficient for product is sold2. Inspiration and business worldwide, its largest industries. Her expertise, shopper journey (from trigger to post- their daily lives, often reserving recommendations are coming shopper marketing relationship insight, and innovative “Shopper purchase behaviors) takes 26 days, in-store visits for events or from a host of different media and spanning four continents and Back” work have helped to grow involves 11 unique resources and special purchases. Increasingly, other influencers, such as online dozens of brands. Under Lisa’s the P&G business and deepen the 31 total behaviors/touchpoints.1 consumers are using connected recommendations. Purchases leadership, Arc has delivered relationship with the P&G client, Consumers move back and forth devices to shop on their own time are being made in-person, or double digit growth on P&G. With yielding incremental revenue between various in-store, online before heading into a physical over the Internet using PCs, a relentless focus on insights and in both shopper marketing and and mobile channels along their store for the final purchase. The phones, tablets and televisions. innovation, Lisa has helped her ecommerce. Beyond P&G, Karuna shopping journey, and the role of ability to browse, shop and buy With so many different outlets clients to expand their shopper has been instrumental in business each is dependent on who they 24/7 has put more power in the and potential connections with marketing efforts well beyond development efforts on other Leo are as a shopper and the category hands of the shopper. Brands and consumers, brands must create the store. She leads shopper Burnett and Arc clients, including they are shopping. retailers are vying for influence, new commerce solutions that marketing innovation for Arc and Kellogg’s and Cheese Merchants but winning will come from the help them compete amid device has formed new practice areas among others. Her contributions In this age of instantaneous recognition that the consumer is and media fragmentation and such as eCommerce and social to agency intellectual property information and gratification, in charge. The consumer decides changing consumer behaviors commerce within the agency. have helped elevate the agency’s many consumers are opting to buy which channels to engage when and expectations. Her passion for this intersection reputation in the shopper products online, on their schedule, and where to transact. And they between shopper marketing and discipline, and as a result, Karuna with an endless variety of retailer expect all of these interactions to digital marketing has led to seats is recognized internally and options, comparing with the click be seamless and part of a holistic on Google’s Shopper Marketing externally as a leader in the shopping experience. Council and Groupon’s Agency shopper space and is a frequent Advisory Board. speaker at conferences, client-side think tanks, and industry events. Prior to joining Leo Burnett, she founded and managed her own consulting firm providing 1 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012 branding, strategy and innovation 2 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012 services to CPG and other clients.
    • CH 3 : Commerce+ 55 The Consumer Sidebar : Showrooming is Always On For much of the 20th century, experience is set to change more The pace at which the Internet In the current retail landscape, shopping and the retail experience in the next decade than it has and mobile are influencing nothing is more concerning to were pretty simple. A customer over the past 100 years.3 Today’s retail sales is not about to slow anyone selling a product than needed a product, and went consumers analyze products and down. According to Deloitte, “showrooming.” The practice to a store with an idea—driven make purchase decisions well smartphones influenced 5.1 is one where consumers use a by some sort of marketing or before they enter a store, and they percent of retail store sales in 2012 retail store as a showroom to see, advertising—of the product he or are capable of transacting at any (to the tune of $159 billion). By touch and interact with a product, she wanted to buy. A salesperson time using a variety of devices. 2016, that influence will increase getting all their questions and was the expert, showing the They are not shopping according to 19 percent of all retail sales, concerns answered, before turning customer the product options, to retailer calendars—they are amounting to $689 billion in to the Internet (often using their explaining how each one was shopping on their own time, any mobile-influenced sales.5 Retailers mobile devices in the store) to find different, highlighting different time. The consumer is “always on.” must begin to change their a better deal elsewhere. features and attributes. With some The end result is a fundamental business models to incorporate the variations (deciding to “think disruption of the traditional retail explosion of always-on connected According to Pew Internet, about it,” and/or shop around), and marketing business models. devices into their overall retail nearly a quarter of cell phone the customer would purchase that experience, understanding that owners use their devices to look product from that salesperson While such disruption can consumers can and will use them up product reviews while they (or a similar salesperson at a cause concern for retailers for their greatest benefit. were in the store. A similar number competitive outlet). and marketers, there is also a use their phones to look up the bright side. Consumers who are price of a product online – while With the rise of smarter mobile shopping via multiple channels they are in a store – to see if they devices, and an Internet are five-to-six times more valuable good find a specific product connection that provides than those who rely on a single cheaper elsewhere. information from a variety of shopping channel, according to different sources (what Amazon Forrester.4 And the cross-channel The practice of showrooming, CEO Jeff Bezos calls “the world influence on overall sales is only which will only grow as more of perfect information”), the expected to grow. According to consumers possess better devices retail path to purchase has been Forrester’s U.S. Cross Channel and networks become faster, entirely upended. According to Retail Forecast, 44 percent of is a concern that needs to be Forrester Research, the retail store total retail sales will happen in addressed before it becomes so physical stores as a result of commonplace that it becomes Web research. (See Sidebar: second nature to consumers. Showrooming) 3 Forrester Research, “The Digitization of the Store Experience” 4 Forrester Research, “Developing an Agile Commerce Business” 5 Deloitte, “The Dawn of Mobile Influence,” June 27, 2012
    • CH 3 : Commerce+ 57 Sidebar : Couch Commerce Shopping as a planned, site- The Future specific activity is fading. In the of Commerce past, consumers were either forced to be physically present in a store or tied to a computer or Internet- With consumers possessing more they planned to combine online, With multiple touchpoints (many Sidebar: Couch Commerce) connected laptop to complete devices and having an always- brick-and-mortar and mobile of them used at the same time), As consumers access multiple a purchase. But with increased on Internet experience, physical shopping into one experience.7 consumers have many more touchpoints and channels at connectivity, consumers can and digital shopping experiences Indeed, shopping through multiple ways to interact with brands once, commerce companies shop for and purchase products are merging, and consumers are channels has become the rule, and retailers. Marketing needs and brands will have to design whenever the mood strikes them: using their different devices to rather than the exception (Chart 1). to happen in real-time, showing and implement new selling at the coffee shop, at a sporting shop multiple physical and virtual Forrester indicates that the Web responsiveness and authenticity platforms optimized across all event or from the couch. channels simultaneously. For the influences half of all retail purchases of customer interaction on a these different touchpoints. 2012 holiday season, 80 percent in the U.S.8 And it is important to variety of levels. The traditional This new reality, with channels In Fall 2011, the hot new term of consumers said they would recognize that each journey will marketing funnel is gone, with working in conjunction with— for shopping was “couch use their devices simultaneously use a different set and order of consumers creating brand rather than independently commerce,” designating a trend of to help with their seasonal interactions that combine digital interactions wherever, whenever of—each other, is what we consumers purchasing items while shopping,6 a figure that will only touchpoints and offline interactions. and however they desire. (See call omnichannel. multitasking with a tablet or other continue to increase with the mobile device. To capitalize on proliferation of more devices and Make no mistake, traditional the trend, Ebay launched an app faster connectivity. brick-and-mortar retail will still Chart 1 that allowed consumers to “Watch be necessary and important to Lines between offline and online shopping with eBay,” programming in their Consumers no longer see digital meet consumer needs and deliver experiences are blurring zip code, television provider and experiences, stores and customer outstanding consumer experiences, 51% 32% 17% channel or program they were service interactions as different though the role of the stores may watching to get a list of items channels. Rather, consumers shop change dramatically. Mobile and featured on the shows that were these channels as part of a single other digital technologies will available for purchase through their journey—discovering, searching, support the in-store shopping marketplace. researching, buying and getting experience both as a set of self- Research online Research online, Visit store service on a product. In a survey of service tools and to aid the sales and visit store to visit store to view first then purchase purchase, then go purchase online Similarly, for the holiday shopping more than 900 consumers, associates working with customers. online to purchase season in 2012, American 45 percent of online shoppers said This will be true for big-ticket Express began working with Fox considered purchases, every-day (Google 2012 Holiday Intentions) Broadcasting on a “T-commerce” commodities and spontaneous program, which enabled consumers gratification shopping. to shop in real-time while watching Fox’s New Girl, allowing them to buy items featured on the show. Other companies have also shown a trend to link commerce, content and device in ways that make it seamless for the consumer. As tablet and smartphone purchases increase, we expect couch 6 Google 2012 Holiday Intentions Survey. commerce to become the norm, 7 PriceGrabber 2012 Shopping Outlook 8 Forrester Research, U.S. Cross Channel Retail Forecast rather than the exception.
    • CH 3 : Commerce+ 59 The Rise of Omnichannel Omnichannel Marketing Serving an omnichannel and overall market share. Among The rise of omnichannel requires cohesive experience that rewards Photography, video and other environment requires a system of consumers who have had a good an evolution of marketing. consumers at all levels. Content robust communication must be connected experiences that are customer experience online, Omnichannel marketing management will become more utilized to provide robust product interrelated and enabled across the propensity to switch brands transcends channels and is driven important as different media details and information simply and all channels and touchpoints. It is increased 16 percent, a willingness by consumer behavior. In fact, a and needs require content to be in an engaging manner. no longer enough to simply allow to pay increased 14 percent and consumer’s decision journey is changed according to the context consumers to transact across the likelihood to recommend more easily understood through in which it will be consumed, and Additionally, as consumers opt channels, or for retailers to view a product or brand to a friend the lens of motivations and needs delivered dynamically according to use different channels at these channels in isolation. The increased 17 percent.10 than it is through the myriad of to consumer behavior and trend different (or even at the same) consumer experience—which touchpoints or channels. In a analysis. Consumers shopping times, content will have to work is defined by need, rather than With so many different outlets recent study conducted by Leo in a variety of contexts and in concert to drive interaction and channel—needs to be seamless and potential connections with Burnett examining 18 product environments will expect local sales across channels (showing across all touchpoints. This consumers, the challenge for categories ranging from toilet and timely information that is physical store inventory on mobile does not mean each consumer brands today is to create new paper to real estate, twelve personalized based on behavior, product pages, for instance). touchpoint is the same, but they commerce solutions that help universal human motivations were past-purchase information and As different consumers find must be consistent while being them win with the consumer identified that underpin every other data. (IN PRACTICE 1) motivation in different forums, all delivered in context. Ensuring in a world of device and media shopper journey.11 The good news variety of content (including user- that the consumer’s overall fragmentation and changing for marketers is that even though In addition to being highly generated, expert, curated, video, experience across all touchpoints consumer expectations. a consumer’s choice of channels targeted, omnichannel marketing photography, words and data), individually and collectively is Consumers don’t distinguish may change, their fundamental content must incorporate will have to work together to both consistent and contextual is channels as separate experiences. needs and motivations as a information from a variety of attract and engage consumers at critical for businesses to remain In their minds, the Web is not shopper do not. Therefore, staying sources to be relevant and all stages of a purchase process, competitive and grow. Research separate from mobile, which focused on the consumer’s resonant with consumers in a way no matter at what stage they has shown that a poor customer is not separate from brick- needs instead of designing for a that increases engagement and engage (browsing, researching, experience in one channel will and-mortar. By understanding particular channel will be key in drives overall sales. Consumers buying or even post-purchase), negatively affect a consumer’s their consumer’s journey and this new world of omnichannel shopping in a variety of contexts that process. Content must match experience in others. Three everything that influences their marketing. and environments will expect consumer expectations for every quarters of consumers who had a behavior along the way, brands local and timely information context, location and type of poor shopping experience online and retailers have the opportunity As marketers begin to engage that is personalized based interaction, providing added value said they would be unlikely to to deliver an experience across in omnichannel marketing, one on behavior, past purchase (suggestions, recommendations, shop with that company online and between channels that uses big shift will include content. information and other data. While automated selling assistants), to again, and a quarter of them each channel to its strengths, Content will move from a static, search engine optimization will help consumers make decisions. said they’d would be unlikely delighting shoppers and moving one-to-one communication to one remain important, results will And this all must be done via to shop with that company in them closer to purchase. that is more dynamic. Marketing have to match and maximize rich storytelling that is seamless any channel.9 At the same time, messaging must coexist with device capabilities and medium and continuous across devices, a good customer experience commerce, meshing into one in ways that satisfy consumers’ context and time. (IN PRACTICE 1) showed a positive impact on sales expectations in their searching and shopping context. 9 Forrester, “Welcome to the Age of Agile Commerce” 10 Forrester, “The Business Impact of Customer Experience,” 2012 11 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012
    • CH 3 : Commerce+ 61 Omnichannel and the IN PRACTICE Organizational Impact [1] to those preferences in-store. As commerce and marketing Consumers have already expressed consumer brand awareness and Carnival Cruise Lines has created Meanwhile, the retailer hosts “flash merge in the consumers’ their expectations that online connections, further deepening a dynamic website that uses sales” through multiple channels world, so too will they have and offline shopping experiences relationships. These seamless targeted content to personalize that apply a discount to all clothes to come together within retail are connected and consistent. connections can also reduce the homepage depending on the a consumer has tagged through organizations. With the rise of Among some of the ideas they’ve showrooming by keeping a type of user that visits the site. their MYEXP app, regardless of e-commerce over the past 15 years, expressed: the ability to return consumer in the pipeline regardless Meanwhile, retailer Express allows where they might be shopping most retail operations today are products purchased online at a of context and device. All things consumers to guide their online during the time of the sale. managing each channel—mobile, brick-and-mortar outlet, the ability being equal (price, convenience, shopping experience by defining Internet, brick-and-mortar— to see the same assortment of etc.), many consumers have a style, which is then reflected on [4] separately. The result is often a products regardless of channel shown a preference to purchase in the site as different categories. Oakley’s Lensfinder app simulates disjointed experience that creates and the ability to view available stores because of the immediate Social media comments are tied extreme sports scenarios online, frustration among consumers, who inventory in a store online and/or availability of a product and throughout the experience so a allowing customers to “test” now expect seamless, integrated via a mobile device.12 Delivering on the tactile experience. (Chart consumer can see what others are different tint and lens properties shopping. As omnichannel takes these omnichannel experiences will 2) Ensuring compelling content saying about the clothes. under various conditions. hold, commerce will move away require systems that can support a (customer reviews, digitally from optimizing for channel single view of products, customers, accessed “value add” information [2] [5] and instead look to create and orders across the enterprise. while in store), on mobile devices AT&T has created a 10,000-square- connections for consumers that Delta Air Lines maintains a foot store as a digital playground are seamless across media and consistent personalization for consumers to discover device. Understanding consumer look and feel through all of its “As long as pricing is generally different aspects of the customer context, and designing campaigns digital touchpoints, anticipating consumer needs and providing experience. Equal parts and experiences around different comparable across channels, proactive customer service that entertainment and education, the contexts, and will become more consumers are unlikely to switch to important as consumer mobility supports the end-to-end shopping store’s staff encourage playing another retailer or channel” with apps and devices over takes even greater hold. Each journey. Integrated systems and (Forrester - US Cross-Channel Retail Forecast, 2011-2016) sales, and in-store experiences context – from how many (or technology create seamless (which include nearly 150 digital which) devices are being used, connections within the consumer displays showcasing different whether the consumer is on the experience (e.g. checked bags custom content, a large video wall go, at home or in the office, and Device diversification and keeps consumers engaged, can be paid for via a mobile app with interactive content and an where they are in the purchase ubiquitous connectivity are turning mobile – which could before the traveler even gets to “experience platform” that allows journey—must be considered combining to make convenience have been seen as a detriment the airport). customers to use AT&T products in to address different purchasing a key driver among consumers – into an ally in augmenting new ways such as home security needs and connections for during their shopping journey. and differentiating a shopping [3] and automation, entertainment, every context and every device. Integrating channels and experience (rather than as an Express allows customers to save and in automobiles). All promote experiences feed this need for opportunity to comparison shop). items to their retail accounts the new products and platforms convenience while increasing through mobile apps and through AT&T has for its current and the Internet, with easy access potential customers. 12 Forrester, “The Digitization of the Store Experience.”
    • CH 3 : Commerce+ 63 Chart 2 “Every aspect and every innovation of our Michigan Avenue Consumers increasingly demand a seamless experience across touchpoints store has been designed with the customer experience in mind” (Paul Roth, president of AT&T retail sales and service) “Which of the following do you expect from a retailer or brand?” To return products purchased 52% online to a physical store To see the same assortment Campaigns, content and the or learn? Ultimately, commerce and merging of digital and physical of products no matter where I shop 44% (e.g., stores websites, mobile apps) overall shopping experience communication will have to look shopping across multiple devices. To track or change my needs to be connected seamlessly a lot more like marketing with a (IN PRACTICE 4, 5) order online, in a store, over the 43% across every channel, screen and heavy focus on our consumer. (IN phone, or using a mobile app device to optimize consumer PRACTICE 2, 3) So how can brands win with Customer service representatives in stores online, and over the phone to be able to 33% engagement. Connection across the always-on consumer view my transaction history channels, however, doesn’t To truly meet the consumers’ in an omnichannel world Physical store location to be able 32% mean “matching luggage.” needs in this omnichannel across increasing devices and to place orders for me online Channels must be optimized for world, commerce companies technology? While there are a lot Retailers to match prices if I can shopper expectations and needs. and marketers need to develop of complicated factors, the answer find a product cheaper on my mobile 28% device while in the store Consumers use each channel for robust and complete “experience is quite simple. Start with the To easily retrieve my loyalty program a specific reason – ultimately to visions.” These visions are no consumer: understand who he information in stores, online, over the 25% complete their purchase. So as longer simply a path to purchase. or she is and how he or she phone, or using a mobile app marketers, we need to pay careful They must include integrated shops. Use these insights about To view available inventory online and view my mobile device 22% attention to our consumers’ needs and supporting strategies and the consumers’ behavior to and the role of each channel elements that encompass and guide creative and messaging To buy and look up product as we develop deeper content account for multiple channels decisions within and across the information using a mobile app that I 11% can download from a mobile app store experiences. We need to ask and devices used in the shopper’s appropriate channels to create (e.g., iPhone app store) ourselves – does the consumer journey. The number one obstacle a seamless experience. Let the Base: 4,731 US online adults really want deep content or do perceived by companies as shopper lead, and results will (Multiple response accepted) they just want to buy a product keeping them from improving the follow. (IN PRACTICE 6) quickly? Do they want the path customer experience is the lack of SOURCE: North American Technographics Retail Online Survey, Q1 2011 (US) to purchase shortened or do they a clear strategy.13 Once vision and actually want to play and explore strategies have been established, the consumer experiences must be explicitly designed for the 13 Forrester, “The State of Customer Experience 2012”
    • CH 3 : Commerce+ 65 things to consider Key Takeaways What to Watch For on the floor Shopping is no longer a In an omnichannel world, Increased interactivity and When encountering a new linear experience. Consumers marketing and commerce interoperability among platform or app: How can I use are shoppers anytime and influence each other equally. platforms and devices will this technology to optimize and everywhere. They research, Brand marketing is integral to enable commerce across enhance my shopping experience? consider, shop and purchase getting consumers to complete different touchpoints. Devices How might consumers use this along a different continuum that transactions, and transactional and technologies that enable technology on their smartphone, involves physical and tactile input, commerce is part of marketing. commerce across platforms to be tablet or other device to research, traditional, PC-based Internet and, seamless and brand-specific will compare or purchase my product? increasingly, mobile. Consumers will not follow the be of great interest. At what points on the shopping same path to purchase for every journey might this technology The proliferation of smarter transaction. In some cases, Ubiquitous connectivity will be optimized? devices and faster connectivity is research will begin online, while in enable consumers to purchase leading to even greater influence others it may start in-store. Each products as the mood strikes When encountering a new for mobile across customer channel must be optimized for all them, rather than at times when hardware device: How does experiences. Consumers are steps along the purchase journey. they designate for “shopping.” this technology work within my becoming increasingly inclined Anything that makes the current purchase model? Do I to work across all devices and Content must be in context transaction process simple and currently have a model in place touchpoints—incorporating and provide information of convenient is good. for this technology or must I information from every medium— value to consumers at every begin thinking about a new as part of their shopping journey. touchpoint. Mobile and Internet Consumers expect their practice? How might I incorporate content showing how much information to port across this technology into my current Consumer experiences are product inventory is in a brick- platforms. Solutions that marketing practices? How might connected across touchpoints. and-mortar outlet, for instance, “remember” consumer data consumers use this new device to It is no longer acceptable to have will be expected. Links on and information (what they research, compare or purchase an optimal online experience that Internet banner ads should were browsing while shopping my product? is not matched through mobile or take consumers directly to the on their laptop, that is in-person. advertised product. remembered by their tablet), ease omnichannel transitions. With consumers utilizing The “shopping experience” multiple touchpoints at once, will be a key defining attribute companies will have to design as omnichannel takes hold. and deliver new selling platforms Retailers need to develop robust optimized for each touchpoint, “experience visions” that include but consistent across all. The integrated and supporting new reality of channels working strategies and elements that in conjunction with—rather than encompass and account for independently of—each other, is multiple channels and devices. omnichannel.
    • 68Chapter 4Next GenerationStoryTelling
    • CH 4 : next generation storytelling 69 Bob Bejan Chris Bowler John McCarus Erika Nardini Chief Development Officer, GVP, Social Media Senior Vice President Senior Vice President MSLGroup Razorfish and Practice Lead, Brand of Sales and Marketing, Content, Digitas Demand Media Bob Bejan is currently the A marketer for over 20 years, Chief Development Officer Chris leads the social media As Senior Vice President, Brand Erika Nardini leads sales and of MSLGROUP worldwide. practice in the U.S. for Razorfish, Content for Digitas, John leads marketing at Demand Media, His responsibilities include one of the world’s largest digital the development of original and connecting brands with intent generating new opportunities marketing agencies and recently partnered digital brand offerings driven consumers in new and and relationships for the recognized on Advertising Age’s across all client teams. Working in creative ways. Erika is an architect group and evangelizing the “A-list.” Chris manages a rock-star partnership with social, creative, behind Demand Media’s Content story and value proposition team of social strategists, content media and client relationship for Real Life platform and is of the Publicis Groupe’s developers, community managers leaders, The Brand Content team focused on driving advertiser strategic communications and to conquer the ever-evolving is responsible for leading digital revenue and innovation via engagement network. Prior to social media world. content strategy development, a cross-functional creative taking this position, Mr. Bejan sourcing digital content creator services and sales development was the co-founder and CEO partnerships and crafting digital organization. At Demand Media, of PBJS, Inc., a Digital Creative brand content offerings that are Erika oversees the company’s Studio that specializes in the borne out of insight and drive strategic partnerships including design, execution and ongoing business results. John is also their relationship with L’Oreal, management of data-driven a Co Founder and serves as Proctor and Gamble and Purina. marketing systems, focusing Executive Producer of the Digitas on Digital Marketing, Corporate Newfront - an annual event Erika was formerly the Vice Communications, Creative that brings together content President of Packaging at Yahoo!, Production and live experiences. creators, distributors, talent, where she built a cohesive and and brands to harness creative aligned go to market operation media opportunities in original spanning branded entertainment, online video and online brand market development, advertiser content. Named one of the Digital solutions and strategic insights. Hollywood Power 50, John is also a sought-after industry expert Prior to Yahoo!, Erika built the and has spoken at a variety of global arm of Microsoft MSN’s industry events. branded entertainment and experiences (BEET) division and opened offices in Tokyo, London, and Amsterdam.
    • CH 4 : next generation storytelling 71 Introduction Stories and their telling are the In advertising’s Golden Age much heart of civilization. In every of this storytelling was linear. The culture, from ancient to modern, brand told the story. The consumer stories are the way we educate, listened. Or not. entertain and enlighten each other. Stories stick with us because In 2013, the storytelling model has Mark Renshaw Meghan Sturges they offer something we can been upended. Consumers are Chief Innovation VP, Account Director, internalize, process and take with now so actively engaged in every Officer, Leo Burnett / Saatchi & Saatchi New York us throughout our lives. story; it’s often hard to tell whose Arc Worldwide point of view is being expressed. In her career, Meghan has helped The best stories can endure for Newscasts, reality shows and As Chief Innovation Officer, Mark a range of packaged goods years, passing from generation even “traditional” broadcast Renshaw’s role at Leo Burnett is clients ranging from Folgers and to generation, father to son, entertainment invite consumers to help drive brand participation, Reynolds to Cadbury and Sunny mother to daughter, grandparent into the conversation, encouraging break down technology, and make D. Currently, Meghan is running to grandchild. them to offer their opinion through it easily understood and applied. the global Lenovo business, online polls, Twitter hashtags It’s an apt one for someone the world’s largest personal We use stories to entertain and and Facebook questions. Some who has helped to nurture and computing company. She serves enlighten. We use them to educate, brands, like Dorito’s—which drive groundbreaking, cross- as account lead for Lenovo’s and to sell. The best brands tell the has encouraged consumers to channel, cross-discipline thinking global equity management, best stories. Tide tells the story of create advertising for the biggest throughout his career. Mark is strategy and advertising. She happy families bonded through platform of all (the Super Bowl)— accelerating innovation across the recently led the development, clean clothing. General Electric are actively inviting consumers entire agency in how we work, execution and internal sell-in of tells the story of making lives to expand the well-known stories how we are structured and how the company’s first-ever global better through technology. Today, with their own versions. we operate. He has helped us brand campaign, spanning eight the art and craft of storytelling is reframe so many opportunities markets across the world. central to building, maintaining and In the new multicast world, for clients that we have a saying: strengthening the bond between brand storytelling presents new “Invite Mark to the meeting. He’ll Meghan began her career at DVC consumers and brands. challenges and opportunities. make what we’re doing better.” Experiential Marketing, managing We now need to solve for the marketing activities for Remy story as well as how we tell Amerique, Oral-B and Gillette. it simultaneously. Originally from Mobile, Alabama, Meghan lives in Brooklyn, New York and is still a die-hard fan of the Alabama Crimson Tide.
    • CH 4 : next generation storytelling 73 Part 1 : The Storytelling Need Across our world, in every culture, same and share similar themes to the intended audience. The storytellers the ability to capture dramatic productions, unfamiliar storytelling has been at the center across cultures, geographies and author or storyteller has to create moments in time through the audiences fled the theater thinking of human existence. From our time. They also share structure. a suspension of disbelief that visual power of imagery. Radio the train was about the run them earliest days of communication, Aristotle was the first to describe allows an audience to surrender combined the immediacy of over. And as these “media” evolve, we as a species have been working the essence of story, applying to the conceits of a story (and performance with the audience’s so too do the plots, becoming to record, share and pass on our and defining a story structure as its storyteller and medium) and own active imagination to create more complex and sophisticated, stories of love, battle, adventure something that has a beginning, leave their real world behind for collaborative experiences of finally reaching the high-water conquest and intrigue. The caves middle and an end. Later, in the the period of time. In doing so, great resonance. Motion pictures mark of “Birth of a Nation,” which at Altamira, Spain, hold some of 19th century, German writer Gustav the audience gets the full value of combined the performance of combined images, music and the earliest recorded stories, with Freytag identified five components the story and the experience the radio and the power of imagery to dialogue in ways that took the the walls serving as a canvas for a of story structure: Exposition/ creator intended. create arguably the most arresting medium to new levels. Over time, tribe of ancient people conveying Introduction, Rising Action, Climax, and effective story telling medium new media have decorated stories, the details of a hunt that happened Falling Action and Resolution/ 21st Century storytellers look for in history, while television shrunk adding sound, color, special effects 40,000 years ago. Since then, Denouement. Regardless of genre, ways to explore and embrace that experience to a more intimate and even 3D technology. the media conveying the story location or period of time, these new media and technology to scale to deliver stories in direct have changed—from hieroglyphs fundamental structural rules tell their stories more effectively. and highly personal ways. In the The relationship between a to painting, to oral histories, to continue to play an important Every advancement in media and modern age, gaming consoles “story” and its “telling” is fluid and stained-glass windows, through and consistent role in making the technology has taken hold largely break through the boundaries of constantly evolving. For marketing to books, movies, television stories we tell ourselves and each through its capacity to convey traditional storytelling roles to storytellers, the opportunity is to videogames and websites— other understandable, resonant stories. Oral histories gave way deliver a new level of collaboration evolve the message in parallel to but the need to tell tales has and compelling. to theatrical advancements that and participation in storytelling. the medium. remained the same. We, humans grew to include stage productions And finally, the Internet has have an overwhelming need to While the structure of the stories that included scenery, projection, built massive communities and chronicle and share the drama of we tell has stayed remarkably the music, lighting and other effects empowered them to collaborate our existence, make emotional same throughout the ages, the to create immersive experience and share. connections express feelings and conduits have changed constantly. that deliver powerful emotional confront challenges. Oral histories told by tribal elders connections and sweeping As each new storytelling vehicle are in many ways similar to the scale. The printing press allowed has emerged, authors have evolved This irrepressible need is a content shared by Internet users storytellers to extend the length to master them. In the movie significant contributor to the today. Because storytelling is and depth of their stories, industry, for example, one of the essence of our greatest stories a re-enactment of life and life preserving them through history earliest motion pictures depicted and why, to a large degree, many experiences, storytellers are and greatly extending their a train coming out of a tunnel of these stories stay largely the constantly looking for ways to audiences. Photography gave towards the camera. Though this “create a reality” around their “narrative” was unsophisticated story that makes the tale relatable when compared with literature and
    • CH 4 : next generation storytelling 75 Sidebar : Obama vs. romney With the 2012 Presidential Arguably, the Romney campaign’s advantage through follow- A second critical platform for the election put to test (and to best platform was the debates up stump speeches, through Obama campaign was the data- rest), let’s take a look at the two – particularly the first debate surrogates in the media, and driven voter turn-out machine competing stories in this election: where the momentum shifted to through daily emails and employed effectively. Using Mr. Obama’s “Forward” and Mr. Mr. Romney. By articulating his social media messaging. This megafiles of voter registration Romney’s “Believe in America.” viewpoint aggressively, Romney represented a closed-loop system data, the Chicago-based team of What mattered more, the story or was able to drive media attention of quickly developing thematic employees and volunteers added the telling? and voter excitement for days messaging from social media, additional datapoints around following the first debate. And driving awareness through persuadability and ran tests to Media and consumer input into Obama was seen as having failed television and campaign events, help predict which messages these mission statements were of to tell his “story” effectively which and amplifying further through (“stories”) would be most course extensive. Constant polling stopped his positive trajectory fans and followers back in social effective. This modeling allowed and consumer listening informed and dampened voter enthusiasm media, sometimes changing or for fine-tuned message strategy as both campaigns beginning in on his side. Clearly storytelling mashing-up the story through well as activation for turn-out the mid 2011 and by Fall 2011 – the moments on a scaled platform text, graphics and imagery. But vote initiatives. Romney “story” took shape. As such as the debate mattered at the real TV success wasn’t just the incumbent, Mr. Obama’s story that time. ads – over a billion dollars spent So in the end, which mattered was crafted later with even more – but key TV moments. Let’s start more, the “story” or the “telling”? data and the benefit of a massive But the Obama campaign was with the successfully-executed Certainly the answer must be both data gathering engine and social able to better leverage two key Democratic Convention with key – however, the story was never media conversation. platforms for electoral success. speeches (i.e. stories) told by Ms. quite the same, and the telling The first platform was broadcast Obama and Mr. Clinton. Take note turned into events and moments But once the stories were locked, TV – especially in the battle- of a badly-executed story by Clint which neither campaign could what had the greatest influence ground states where the campaign Eastwood and the “empty chair” ever have predicted. on the campaign outcome? - the was able to cast Mr. Romney in at the Republican Convention story or the telling? a negative light. Some of the which resonated negatively for storytelling themes were clearly the Romney campaign. Indeed, a Let’s look at some of the stories planned – “Bain Capita,l” but second TV moment was the media that were leveraged as well as others were opportunistic: the coverage of Hurricane Sandy and the platforms where these stories “47%,” “Big Bird” and “Romnesia.” the relief efforts which cast Mr. were delivered. The Obama campaign employed Obama in a positive light – with what could be called “real-time the help of storytelling by New listening” to pick-up key messages Jersey Governor Chris Christie. that were being discussed on Facebook and Twitter and amplify these messages to their
    • CH 4 : next generation storytelling 77 Part 2 : Principles It has been said that stories, stories they tell (even if those Principle 1: Create Worlds, Principle 2: Principle 3: Performative like jokes, are only great when stories are about birds angry with Not Just Stories. Dramatic Darwinism: Not Informative. delivered well. As storytellers a group of structural engineering- The best brands (and most Once created, these worlds have Storytellers must treat their reach new levels of mastery for challenged pigs) are engaging, enduring stories) are those that many different story threads and audiences as characters, creating a new method of storytelling interesting and relatable. create a world of possibilities to narratives. Not all will resonate roles for their “listeners” as (theatrical, filmed, spoken word), develop and evolve over time. They with enough consumers to last players within the larger story and the audience expects more from With the explosive growth of allow people to truly explore and beyond an initial telling or grow world. These shifting roles allow the telling than mere adequate new technologies, formats and become involved in a story world. on their own in the minds of the audiences to project themselves delivery. They demand new storytelling devices, the next They create a culture, language, audience. Within these worlds, into stories and bring those worlds ways to be immersed. Though generation of storytellers will have mini- and sub-plots and they allow storytellers (i.e. brands) will into their daily lives, blurring Hollywood (and advertising and to find ways to break through the audience to fill in gaps they have to experiment with many realities with roles and goals that marketing to a lesser extent) has the millions of voices and stories may have missed the first time techniques, characters, themes and have tangible rewards and uses, created some of the greatest being produced throughout the around. They go beyond mere through lines to find narratives that not just in the story world, but stories of all time, the telling is world (including the rise of user- chapters and narratives to blur the resonate and relate to consumers. in their day-to-day lives. Just as still largely linear, with one group generated content, which has lines between an audience and Those that are specific, believable Nike+ has used social media to controlling the story line and democratized storytelling the actors. (The rise of fan-fiction and real will grow, adapt and encourage exercise (linking with creating structured narratives that in ways that hadn’t previously among passionate audiences is an evolve (Darwinism), and those that Facebook to provide a cheering have a strict beginning, middle been envisioned). example of worlds taking hold.) don’t will become extinct. crowd for a run, for example), and end to produce an agreed- Great brands (and great stories) successful performative stories upon theme. We believe there are five principles create their own worlds, and build For Example: Allstate’s dramatic use many different tools, formats that will make, break and remake realities around them. story world is “Mayhem”— and venues to interact and engage In recent years, the video game the telling of the Next Generation mishaps that the audience with the story. industry has been changing the Stories. The principles not only For Example: The Energy believes can happen to anyone. narrative structure, allowing apply to brands; they can also Drink Red Bull has created its As created through a character For Example: Kellogg’s Special gamers (a.k.a. the audience) to be used by Hollywood, the video own world of adventure and representing these pieces of fate, K created a story around “What decide their own journeys and game industry, celebrities and an experience. While there are many Mayhem has become a story will you gain when you lose?” destinations. The immersive emerging source of new stories, different entry points unique to world that is rich and insightful, In that world, the brand allows techniques are a large part of the Apps. In all cases, the goal is to different people’s passions, every while allowing consumers to people to shift focus from losing gaming world’s explosive growth create stories that endure long experience they create traces participate in an unfortunate weight (a dreary and hard to over the past two decades. The beyond the initial telling to create back to adventure, invention reality of having the wrong maintain goal) to the goals they something that hangs in the mind and excitement. From Rally insurance company. By listening will achieve by losing weight. The of consumers long after it has Driving to creating their own to social media channels, Allstate brand lets people perform within been told. Formula 1 Team to financing (and has told sub-plots based on their own storyline offering tools, supporting) a historic skydive consumer insights and made support and a story world for from the Edge of Space (which suggestions to broaden story people to interact with. In shattered YouTube viewing lines while continuing to develop many ways the brands here records), the brand has created the character and overall World have opened up their very its own world of adventure and of Mayhem. being via an API to allow for excitement, and allowed people performative actions. to live both inside and outside of it.
    • CH 4 : next generation storytelling 79 Principle 4: For Example: P&G’s Secret Principle 5: Stories Spawn, in purchasing the higher-priced Responsive By Design. Deodorant brand developed Divisions Destroy. items bought into the story Not to be confused with a story world around “Mean In many companies discussions world Ebay had created, and “responsive design,” which allows Stinks”. The story world focused about brand stories live and die the company connected content for the same content to be on women being “fearless” in the in the marketing teams. But just and commerce via this world. experienced on different screens face of bullying and the role that as these stories need to become and formats in real time, Next a brand can play in changing immersive for audiences, they These five principles are essential Generation stories need to be that behavior. The brand has need to become all-encompassing building blocks that give brands created from the outset to be been responsive by design in for brands and the people behind and marketers entry into the responsive to the audience. The identifying the ways that bullying them. Stories can spawn new Next Generation of storytelling. stories and storytellers must listen, occurs, allows girls to confess opportunities across virtually every Brands must use the power of learn, act, respond and engage, and encouraging them to “gang function in a brand, yet divisions Next Generation storytelling sometimes all at once. Brands up for good.” These programs and silos also have the power responsibly, ensuring that the need to leverage interactions have been designed accordingly to destroy a Story World. For a audiences (a.k.a. consumers) have to create unique story lines for to people’s participation story to be believed it must be choice and control in combination different audiences, and create on Facebook, Twitter, and lived. Storytelling extends into the with the natural aspects of a different entry points and designs Instagram. product and customer service that well-told narrative. In every case, for different audiences. Like should all be driven by a brand’s regardless of the opportunity, the Nintendo’s Wii U that provides purpose. When consumers are core elements of a great story multi-screen experiences on both motivated to buy a product, they must be present for the narrative a tablet-like controller and on the have committed to the story line to take hold. Striking a fine balance television (allowing two stories that has been told; they are buying between these elements and new to be told to different audiences not just the product or service, but technologies (See Sidebar: New – in the same room – at the same the brand’s “story.” Platforms and Technologies) and time, acting concurrently), brands opportunities will shift storytelling need to develop storylines that are For Example: In an effort to from a linear experience about responsive and can develop both increase sales, Ebay created things that have happened to concurrently and sequentially. a program called “Significant other people, to creating an infinite Objects.” The company took number of possibilities with the second-hand items, created audience as the central character. a story around them and sold them at significantly higher price points than similar items with no content backstory. Consumers,
    • CH 4 : next generation storytelling 81 Sidebar : Emerging Platforms and Technologies We are in the midst of a 1. Facebook 2. Demand Media 3. Twitter storytelling revolution. New platforms and technologies are The largest scaled participatory Demand Media has invested in The power of Twitter cannot be fundamentally changing the platform in the world, Facebook’s the development of one of the overstated. Its ability to instantly way authors tell stories. At the unique Newsfeed streams largest content production studios connect to what’s important to same time, the audience’s role social content which showcases in the world. This studio functions you has changed the world of is changing from one of passive storytelling using multiple formats: as an ecosystem combining state news, entertainment, advertising viewing (or hearing) to one of text, photo, video, location, event, of the art insight on consumer and customer service all at once. active engagement and creation, and onward. From desktop to interest and demand, a top- The ability to receive and share often enabled by these new mobile, Facebook combines down story construction method across nodes of followers has technologies and platforms. Here participation with in-moment (start with the headline that the transformed what it means to is a quick summary of some of relevance, anywhere which consumer wants then write/ be an influencer – no longer the new platforms, technologies is immediately sharable. For produce the body of work), a confined to a celebrity – but has and storytelling tools, and the marketers, Facebook is the hub of talent and influencer network allowed new and old influencers to opportunities they create. a brand’s storytelling community designed to identify and cultivate broadcast their stories in real time. and the engine for reach and platform-specific storytellers, and For storytelling, we can verify and Participatory Platforms. virality beyond its own customers. a distribution and optimization contribute to a breaking news Among the myriad of social While most brands today mechanism for one of the biggest event or topic trend as it happens. networks and platforms that allow have operationalized ongoing digital platforms of today. A Imagine the 1938 radio broadcast brands to spark dialogue and the content delivery and response notable take-away from the of the War of the Worlds in today’s participation of fans and followers, on Facebook, the opportunity Demand Media model is the Twitter culture: would anyone have five platforms (presented as exists to co-create deeper, more principle that content changes been duped by the simulated news examples here) stand out. engaging experiences and utility depending on the channel in bulletins of an alien invasion when within the Facebook platform. which it will be consumed. on-the-scene verification would be Stretch beyond your brand page Content formats that work on taking place? and develop social movements, owned and operated website products, and services that properties are very different than leverage the Facebook community. the formats that work on mobile destinations and, in turn, different from the formats which need to be produced for YouTube, Twitter, and other third parties.
    • CH 4 : next generation storytelling 83 4. Storify 5. Mass Relevance Always-On Content Storify is a platform for creating Ever been to a live event such These technologies create a + Curata Next Generation data of users (stripping away stories in social media. It weaves as a concert where tweets are constant stream of storytelling for Storytelling requires a need for personal data) in order to together site links, Twitter, photos streamed and displayed in real- consumers which allow brands continuously updated content. build a profile of the generic and videos into a story timeline time to thousands of fans? Most to determine the themes and Many brands and marketers don’t mobile user. If the user tends to that feels dynamic and multi- likely, you are seeing technology offshoots that people want to talk have the resources to devote appear at home improvement dimensional. Users can drop-in powered by Mass Relevance. about and deliver the topics in a to constant content creation. centers continuously, that user and reorder these elements and At scale, Mass Relevance timely, always on matter. Brands Some technologies are being is identified as a do-it-yourselfer add text to provide context to brings the digital and physical must continuously engage with developed to fill the gap, using and might be more receptive to readers. Within the components worlds together which allows these technologies to identify the resources to find, organize and this content. Conversely if the of text, imagery and links, readers participation and dialogue relevant topics trending at any share relevant content for your user never appears on a golf can like, comment, share, and between a brand, sponsor, or given moment, create and update brand that is engineered for fair course, the user will never see a create their own storyline. celebrity and their audience. What their stories, and to respond to use and copywriting. golf-related message. has mostly focused on Twitter, them in real-time. will expand into other channels + Social Flow - Engagement and formats for live event + Bottlenose – Search engines occurs when content is participation. only index the past. But using delivered at the moment when real-time semantic analysis and an audience is most receptive. annotation, Bottlenose detects, Social Flow determines when filters, tracks, monitors and your audience is available (think visualizes the social content Twitter followers), and publishes connected to a brand. The your tweets and posts when most promising feature is the the topic of interest is trending. ability to directly influence the Could be 3 am or 9 am; Social dialogue around trending topics Flow takes the guesswork out of before that same content goes your content publishing process. viral on search engines and in mainstream media. + Sense Networks delivers content to customers on the go, at points of interest. The technology extracts location
    • CH 4 : next generation storytelling 85 mastering the story and its telling Immersive Experiences: Today, there are many digital books, “The Fantastic Flying As we continue to look at brand advertising, Hollywood platforms that create an immersive Books of Mr. Morris Lessmore” the world and ponder the filmmaking, television production, experience that animates the is a poignant, humorous technological developments that game design and development, world of a story. See Story Worlds allegory about the curative affect stories and storytelling in publishing and live experiences Not Stories, above. For example, powers of story. Using a variety fundamental ways, we must – need to continue to be broken consider these iPad applications of techniques (miniatures, first and foremost – remember down and blurred. The next for inspiration and partnership computer animation, 2D that the world is still comprised generation is about combining, opportunities: animation), the authors present of human beings who look to blending, leveraging and learning a hybrid style of animation that stories (and each other) as a way from all of these mediums to + Back in Time. What were the harkens back to silent films and of making emotional connections create narratives that define the defining moments in the History MGM Technicolor musicals. with a sense of empathy and next generation and engage of Humankind, of Life, of the understanding. In this sense, the audiences in the ways they behave Universe itself? Back in Time + Articles. Browse a world of goals and desires we have as both and live today and tomorrow. is a multimedia interactive art through carefully curated storytellers and audiences remain journey through those moments galleries with Art.coms newly largely the same as they’ve been It is up to all of us as creative that stiches together visuals, released shows, but also throughout history: we want to storytellers to push these data, and text together for experience how a tablet allows understand our world, we want boundaries and demand the an immersive, educational you to find completely new ways to see the connections, we want redrawing of the lines that define experience. to navigate by finger rather than to not feel alone, and we want to the borders of story. All of us have by mouse. share experiences that allow us an opportunity and a responsibility + Living Earth. Enjoy a stunning, to celebrate and embrace what it to drive the evolution forward and live 3D simulation of earth. But means to be human. help to build the body of work that it’s also functional as a useful will form the new landscape of weather and clock app for It’s about “AND” not “OR”: storytelling. the iPad. The next generation of storytelling is about being open. Open to + “The Fantastic Flying Books of collaboration and open to new Morris Lessmore.” Inspired, in ways of creating and delivering equal measures, by Hurricane the story experience to audiences. Katrina, Buster Keaton, The Because of this, the traditional Wizard of Oz and a love for definitions and boundaries of
    • CH 4 : next generation storytelling 87 things to keep in Mind Conclusion a) Hold Tight Loosely: The next our stories. This means balancing changes taking place and work Telling stories is the fundamental generation story is collaboration between the big picture of the to not only understand them but job of marketing. The ability to between the story teller and narrative itself and the granularity enthusiastically embrace and create and share stories that the audience, but it is not free- of the data that can be gathered leverage them to help bring our connect and resonate with form collaboration. It is critical to in real time as the story unfolds stories to life. consumers is what separates the remember that the structure of the across multiple channels. best marketers (and companies) story you are creating and telling e) Fundamentals still matter: from the also-rans. This is the must have enough integrity to c) It’s about technology, New developments or capabilities same as it has always been. The achieve the goals and objectives but we’re still human: As we do not minimize the importance of need to connect with audiences you have, while at the same time look at our world today and fundamental structures to powerful and influence the choices they have enough flexibility to create continue to try and understand storytelling. The foundational make will, in all likelihood, remain a real sense of collaboration and the impact of the technological structures and approaches remain the same. participation with the audience developments that are happening largely unchanged. A story still you are telling the story to. all around us, it is important to has to be clear. It has to have an What changes and will continue remember that in the end we intention and an outcome. There to change is the way we can tell b) The story is a living are still human beings seeking needs to be tension and something those stories. We are in the midst thing: Interactive, immersive, emotional connections and a sense at stake. The audience has to care of significant change in our ability collaborative stories are, by of empathy and understanding. about it. to “tell” stories differently. We definition, living things. This means are still in the early stages of our that as storytellers, you are never d) Embrace the new: As human journey towards mastery. It is an really done with the story or the beings, we are affected and exciting time for anyone with a telling. The next generation of changed by the developments in story to tell. story is a real time performance our world. The ability to connect that takes place between the core and communicate at increasingly narrative and the audience. As rapid speeds, anytime, anywhere storytellers we must be mindful and on an increasingly wider of this and work to engage with array of devices and methods our stories in a way that allows us allow us to connect to storylines, to focus and act on the real time storytellers and the audiences that information we receive from our listen and participate in stories in audiences as they engage with more direct and different ways. As next generation storytellers, we need to be hyper-aware of the
    • CH 4 : next generation storytelling 89 Key takeaways + The media may have changed, + Next Generation Storytelling, but the power of great stories is while still far from reaching constant. The elements of great mastery, requires storytellers to stories: characters, plot, theme create vivid, complete worlds, and structure (with a beginning, stories that evolve and change middle and end) have remained and prompt audiences to action. unchanged since the dawn They must be responsive in of time. Stories are our most real time and need to be felt engaging connection engines. throughout the entire brand architecture. + Storytelling tools have changed throughout history. Storytellers + Along the path to mastery for create realities for their Next Generation Storytelling, audiences. As new tools are brands must consider both long- developed (the printing press, and short-term elements of cameras, film, etc.), storytellers their stories, grant open access find ways to use these tools to to the stories, data and media, broaden their audiences and operate in real time and build a create more engaging stories. consistent storyline throughout their organization. + As new tools are introduced, there is a period of experi- mentation and exploration. Such exploration will lead to many failed experiments, but will eventually lead storytellers to mastery of these new tools.
    • 92Thank you andconclusion
    • 93THANK YOUWe’d like to thank our sponsors for making this year’s“Bright Lights, Big Ideas” experience possible.
    • 95THANK YOUA very special thank you to Core CES Team Special Thanks to: Trudi Harris Lena Petersenthe individuals who made the Guy Abrahams Christie Hartbarger John Piccone Cheri CarpenterPublicis Groupe Bright Lights,Big Ideas experience – and this Mary DeBrunner Chris Allen Ed Haslam Beth Pynebook – a reality. It is no small task Josh Dysart Kelly Andrews Lisa Hurwitz Karuna Rawaldeveloping compelling content and Tracey Scheppach Darin Archer Alyson Hyder Mark Renshawcreating a customized experiencefor more than 500 agency leads Claire Ballard Rob Jayson Kevin Rittand marketers, but they did it. Event Team @ AgencyEA Bob Bejan Greg Kahn Mike RussellTogether, this task force worked Genny Aamoth Chris Bowler Diane Jackson Bryan Scanlontirelessly for months leading up toCES to make this experience the Korbi Bare Jacqueline Boy Trevor Johnson Chuck Schultzbest it could possibly be. So we Brett Celedonia Lindsay Jurist-Rosner Adrienne Scordato Sean Bourkejust want to say thank you, gracias,merci, danke. We could thank Terry Castre Ellis Chambers Helen Katz Rocco Smerigliothese people in every language Charlie Eder Pravin Chandiramani Jill Kelly Wendi Smithand it still wouldn’t be enough. Katharine Greis Amy Cheronis Christian Kugel Bertil Snel Hunter Haas Kevin Cochrane Jeremy Lockhorn Matt Spielman Matthew McFarling Brian Cooley Jon Manka Tina Stanton David St. Martin Jeannie Curcio Randy Mayer Loni Stark Lauren Daniels John McCarus Samantha Starmer Liz Darby Anita McGorty Meghan Sturges Andrew Davidson Michelle McGowan Rishad Tobaccowala Beth Doyle Samantha Merritt Brian Walker Paul Do Forno Kelly Moran Bill Watkins Abby Dow Dave Morgan Michael Wiley John Dunleavy Steve Murtos Mickey Wilson Dan Fisher Erika Nardini Steven Wolfe-Pereira Jenn Freeman Scott Navarro And many more... Jason Goldberg Lola Olateju Vlad Gorenshteyn Jennifer Pack Britta Petersen
    • 98ConclusionWe hope the perspectivesprovided within these pages proveto be useful as you navigate theshow floor and most importantly,as you conduct business well intothe future.Given the ever-changing natureof this space, we know a lot canchange in a few short days, andas such, we will be refreshingthe content in the days followingCES. We want you to be armedwith the most relevant and latestinformation.Thank you for entrusting us to beyour guide at CES this year, andwe hope to see you again in 2014.