The Emergence and interdependence of Digital Marketing and Omni Channels

1. The Emergence to
Omni Channels and
Digital Advertising

2. The use of mobile devices and social media forums such
as Facebook, Twitter and Snapchat have become an
integral part of daily communication.

3. The number of smartphone users in the
United States has exceeded 200 million
and still is growing, YoY by 20 percent.

4. Today, 1 in 3 media minutes is mobile

5. The growth in time spent on the internet is
driven by the growing number of connected
devices we have with us all the time
.

6. According to a 2012 report from Active Healthy Kids
Canada, children and youth get an average of seven
hours and 48 minutes of screen time per day.

7. The use of mobile devices has grown so quickly, it is now
easy for consumers to obtain and compare pricing and
product information on the spot.

8. In 2013, digital interaction with the consumer influenced
36¢ of every U.S. dollar spent at a retail store
(approximately $1.1 trillion)
(Deloitte, 2014).

9. This phenomenon has allowed for companies like Amazon
and Ebay to grow exponentially over the last decade by
offering the consumer an online storefront

10. Amazon and eBay acheive over 70% of their mobile
engagement via their mobile apps

11. Likewise, retailers (and products that traditionally sell
through retail) have responded to the market by creating
Omni Channel Storefronts and apps
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12. Apps now account for over 80% of mobile-internet
engagement and provide incentive to Omni-channel
customers by simplifying the purchasing process

13. Apps are also useful to marketers
because they can deliver discounts
electronically that can be redeemed
online or in-store. This is an easier and
more efficient process for the consumer.

14. “This truly is the day and age of the mobile Omni-channel
shopper and buyer, and the channel’s influence will only
grow more pronounced as consumers become more
comfortable completing transactions on their phones and
tablets”
- Interactive Advertising Bureau

15. In addition to a shift towards
online storefronts, the
consumer’s use of digital
technology and social media
apps has been met with
significant growth in digital
advertising

16. Digital advertising revenues in the United States for the
first half of 2016 hit an all-time high of $32.7 billion. This is
a 19 percent increase over last year’s half-year revenues
of $27.5 billion.

17. These dollars are primarily being spent on social
media/mobile platforms for the purpose of advertising
and selling consumer packaged goods and other retail
products. 21% of digital ad spend is being put towards
these categories in the US.

18. Mobile revenue saw the largest YoY growth, growing to
$15.5 billion. This is up 89% from $8.2 billion in the first
half of 2015.

19. Total social media revenues, including mobile and
desktop, reached $7 billion in the first half of 2016. This
represents a 57% increase compared to $4.4 billion in
the first half of 2015.

20. “These numbers [mobile ad and social media ad
revenues] demonstrate the growing importance of mobile,
showing us the increasing demand for digital video and
search, available anytime, anywhere, in the palm of your
hand”
- David Silverman, PWC

21. Due to the massive uptake in the use
of technology and social media, we are
witnessing what is potentially the most
dramatic shift in direct marketing’s
history.

22. This transition is not simple for many companies.
Supplement retailer GNC for example, is undertaking a
transition from retail to Omni Channel. This has proven to
be an expensive and laborious process, costing the
company billions in market capitalization over the last
year alone.

23. References
Freier, Anne. “Mobile advertising trends and predictions for 2017.” Blog. mobyaffiliates, 23
Dec. 2016. Web. 5 Mar. 2017.
Fulgoni, Gian M. "“Omni-Channel” Retail Insights and The Consumer's Path-to-
Purchase." Journal of Advertising Research 54.4 (2014): 377-380. (CLASS)
Globe, The, and Mail Inc. Canadian periodicals index quarterly - document - A break from
technology. 2013. Web. 5 Mar. 2017. (CLASS)
LLP, PricewaterhouseCoopers. “Digital ad revenues grow 19% year-over-year in First Half of
2016, hitting landmark high of $32.7 Billion.” Ad Revenue. IAB - Empowering the Marketing
and Media Industries to Thrive in the Digital Economy, 1 Nov. 2016. Web. 5 Mar. 2017.
PricewaterhouseCoopers. Internet advertising. PwC, 8 June 2016. Web. 5 Mar. 2017.
Krashinsky, Susan. "Four ways Canadians are consuming media differently." The Globe and
Mail. The Globe and Mail, 04 Dec. 2014. Web. 05 Mar. 2017. (CLASS)