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© 2017 eMarketer Inc.
Digital Trends in Canada—What You
Need to Know for 2017
Paul Briggs
Senior Analyst, Canada
May 11, 2017
Made possible by
© 2017 eMarketer Inc.
Today’s agenda: Obstacles and opportunities for
marketers in 2017
Obstacles
 Cleaning up digital
display
 Getting multitouch
attribution right
Opportunities
 Big data-driven marketing
 Brand publishing
 Augmented and virtual
reality
#eMwebinar
© 2017 eMarketer Inc.
Cleaning Up Digital
Display
© 2017 eMarketer Inc.
Display is a
huge chunk of
digital ad
spending,
amounting to
an estimated
CA$2.30 billion
this year
#eMwebinar
© 2017 eMarketer Inc.
Today’s online and mobile display ad
environment faces a triple threat
 Ad fraud: Putting into question the accuracy of
impression reporting
 Viewability: The percentage of impressions that are
seen on a screen and for how long
 Ad blocking: Both desktop and mobile
#eMwebinar
© 2017 eMarketer Inc.
Brand and agency marketers in Canada rate
ad fraud as the biggest issue with digital display
Percentage of Marketers Naming the Following Issues as a ‘Serious’ or ‘Very Serious’ Threat
to Their Business (% share of brand and agency executive responses)
#eMwebinar
© 2017 eMarketer Inc.
Execs in Canada acknowledge the obstacle
“Digital content
has evolved,
and online
advertising,
internet
advertising,
hasn’t.”
—Mitch Joel,
President, Mirum
“Two or three years ago, clients
wholeheartedly believed in the
numbers. Now you hear about bots or
outside influences driving the
numbers. I think that shook the
absolute faith in the numbers and I
think that’s rattled advertiser
confidence.”
—John Clinton, Chairman, Edelman Canada
#eMwebinar
© 2017 eMarketer Inc.
Viewability
rates in
Canada
exceed those
of similar
digital
economies
#eMwebinar
© 2017 eMarketer Inc.
2016 ad blocking estimates for Canada are lower
compared with those in the US and the UK
17%Internet users in Canada
who use an ad blocker
24%
US internet users who use
an ad blocker
19%
UK internet users who use
an ad blocker
Source: IAB Canada/comScore
Source: eMarketer Source: eMarketer
© 2017 eMarketer Inc.
Getting Multitouch
Attribution Right
© 2017 eMarketer Inc.
Defining attribution
 Attribution is the process of assigning credit to certain
marketing activities for specific conversion results
Last click
assigns credit to the most recent
touchpoint or channel providing the
last click prior to a conversion
(e.g., AdWords, banner ad)
Multitouch
(aka cross-channel) assigns credit
to marketing activities and
touchpoints across devices and
an expanding number of
touchpoints with brands
#eMwebinar
© 2017 eMarketer Inc.
But less than
half of
marketers
worldwide use
attribution to
measure
marketing
effectiveness
#eMwebinar
© 2017 eMarketer Inc.
Multitouch attribution is essential in finding the
right marketing investment mix
“There’s a need for marketers to invest
in high-quality options early in
order to understand multitouch
attribution, predict consumer behavior
and improve targeting.”
—Mario Lemieux, President and Partner, DAC
Group
#eMwebinar
© 2017 eMarketer Inc.
The evolution of attribution
Traditional
 Econometrics,
marketing-mix
modeling
 Inputs include GRPs,
reach, spend, sales
data
 Executed in advance
of media spending
Digital
 Path analysis using
cookies and other
web data to analyze
actual activity
 Executed in real time
to optimize using
performance data
Advanced
 De-emphasizing
last-click
 Cross-device
 Multitouch
#eMwebinar
© 2017 eMarketer Inc.
Understanding
the customer
journey
requires a
plethora of
data inputs
#eMwebinar
© 2017 eMarketer Inc.
And among
those that do
attempt to
measure, the
majority use
rudimentary
analytics
tools
#eMwebinar
© 2017 eMarketer Inc.
Big Data-Driven
Marketing
© 2017 eMarketer Inc.
Big data marketing is built over years—not
weeks or months
Choosing a platform for data collection
The foundation of the “martech stack,” including DMP, with hooks into CRM
1
2
3
4
Selecting which data sources will be input
First-party data, mobile device IDs, cookie history
Detecting patterns in the data over time
Daypart activity, consumer touchpoints, conversion triggers
Building predictive models that guide future investment
Contextual engagement, product suggestions, loyalty integration
© 2017 eMarketer Inc.
Turning data into targeting smarts
“Marketers are gathering a lot of data
but they’re not quite sure what to do
with it. There’s definitely a need to start
investing more in data sciences
and machine analysis of the data.
All the data collected on behavior
beforehand almost has to act as your
cookie pool.”
—Petar Bozinovski, President, Digital,
Crucial Interactive Canada
#eMwebinar
© 2017 eMarketer Inc.
But it’s
complex: No
fewer than
nine tech
tools were
identified as
important by
data
marketers
#eMwebinar
© 2017 eMarketer Inc.
Confidence in
marketing
tech for
audience data
is mixed
#eMwebinar
© 2017 eMarketer Inc.
Tech can bring much needed confidence
"A lot of advertiser confidence depends on what
technologies they have. If they invest in a
data management platform, they’re
certainly on a route to building the
capabilities of managing their own
data, and providing first-party data segments
to inform how they buy media.”
—Chris Williams, Vice President, Digital, Association of
Canadian Advertisers (ACA)
#eMwebinar
© 2017 eMarketer Inc.
The internet of things (IoT): sensors, sensors
everywhere
114M
number of IoT connections in Canada by 2018
4X the amount from 2013
Source: International Data Corporation (IDC)
#eMwebinar
© 2017 eMarketer Inc.
Brand Publishing
© 2017 eMarketer Inc.
Content is winning the battle for time
“People used to vote with their wallets, and now
they vote with their time. Content is winning
the battle for time because it really is what
people want to see, as opposed to the stuff
they have to see [in advertising]. ... It really
doesn’t matter whether it’s content marketing,
native advertising, brand publishing. … You
just have to win the battle for time. You’ll
never get the wallet if you don’t first
get the time.”
—Ron Tite, President and CEO, The Tite Group
#eMwebinar
© 2017 eMarketer Inc.
Content marketing vs. brand publishing
 Content marketing
– Associated with early stages of the sales funnel, helping to push
leads closer to a transaction
– Involves creating timely and compelling content via owned, earned
and paid channels
 Brand publishing
– Less attached to sales metrics
– It is more journalistic in tone, steering clear of any overt messaging
about the brand’s position
– Aims to compete with mainstream media for consumer time
#eMwebinar
© 2017 eMarketer Inc.
Content that informs, educates, entertains and
inspires all hit a compelling note
#eMwebinar
© 2017 eMarketer Inc.
A video
scorecard
from Q1 2017
in Canada:
WestJet is
tops
#eMwebinar
© 2017 eMarketer Inc.
Examples of brand publishing in Canada
 WestJet’s ‘Christmas Miracle’
 Launched in 2013, but
ongoing publishing cadence
for key dates on the calendar
every year
 More than 45 million YouTube
views on the original video
 Toronto SickKids Foundation ‘VS’
campaign
 Launched in 2016
 Followed 45 documentary shorts
published in 2014 and 2015
 Supported with TV
© 2017 eMarketer Inc.
Paid
amplification
of content:
Native ads in
social feeds
most often tie
back to
branded
content
#eMwebinar
© 2017 eMarketer Inc.
Augmented
and Virtual Reality
© 2017 eMarketer Inc.
AR and VR have the potential to be breakthrough
new media formats
“Brands should get in early on
augmented and virtual reality. This is a
new media; it’s a new platform, much in the
same way as we were introduced to the web
primarily through the first web browser. It
brings us back to that moment in time where
an entirely new way to engage with content is
being created.”
—Mitch Joel, President, Mirum
#eMwebinar
© 2017 eMarketer Inc.
The Content Continuum
Basic
Websites
White papers
Product collateral
Engaging
Video
Blog posts
Infographics
Immersive
360 video
Augmented reality
Virtual reality
#eMwebinar
© 2017 eMarketer Inc.
Annual VR and AR shipments will grow tenfold
between 2016 and 2021 globally
#eMwebinar
© 2017 eMarketer Inc.
Specific to Canada …
US$500M
IDC estimate of the AR/VR market in Canada in 2017
230%
CAGR through 2020
#eMwebinar
© 2017 eMarketer Inc.
But consumers in Canada have had little
exposure to VR headsets to date
#eMwebinar
© 2017 eMarketer Inc.
Agency and brand interest in VR is high
“About a year ago, every agency in our
backyard was knocking on our door
to find out what virtual reality was.
They tried it out, and then they left extremely
excited. What happened, in my belief, is that
they'd go to their client, and they didn't know
how to sell it. ... A lot of the agencies are
coming back for consulting and to help
develop pitches and proposals.”
—J. Lee Williams, President, Occupied VR
#eMwebinar
© 2017 eMarketer Inc.
Immersive campaigns hit their stride this year
 Clorox Brita/WE ‘Clean
Water Project’ featuring
Irkaat, Kenya
 Launched April 2017
 VR experiences at Square
One shopping mall
 360 video on Facebook and
YouTube
 Molson Canadian/Sportsnet
 Launched February 2017
 Google Cardboard-like
headset for viewing NHL
games
 Invent Dev VR for Real
Estate, GTA Home & Reno
Show
 Launched 2016
 VR walkthroughs of
floorplans with model
homes
© 2017 eMarketer Inc.
Recap
 Digital display, especially banners and pre-roll, requires
a rethink.
 Attribution has evolved from traditional to multitouch
and cross-device models.
 Data literacy is a must for marketers.
 Brands are acting like publishers, attempting to compete
with mainstream media for consumer time.
 AR/VR is creating immersive content and more
compelling brand engagement.
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
The Canadian E-Retail
Opportunity
Greg Zakowicz
Greg.Zakowicz@Bronto.com
www.Bronto.com
1-888-BRONTO1
Info@Bronto.com
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
Bronto Software: The Canadian E-Retail Opportunity
• Statistics Canada estimates Canadian
consumers will spend nearly $18 billion on
retail goods with Canadian merchants in
2017.
• This suggests that $20 billion in sales will
be claimed by foreign e-retailers.
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
“E-Commerce in Canada, 2017 edition”, Internet Retailer, 2016
Will sell and
ship to
consumers in
Canada.
36%
Of the 1,000 largest
global retailers
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
“Where We Buy: Consumer Attitudes on Global Ecommerce”, Bronto Software, 2016
“E-Commerce in Canada, 2017 edition”, Internet Retailer, 2016
Online shoppers
who have already
purchased from
outside of their
country.
CA
67%
USA
42%
UK
44%
AU
72%
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
Bronto Software: The Canadian E-Retail Opportunity
72% of US consumers are open to purchasing from
Canada,
yet only 20% have done so.
Through utilizing an ecommerce technology partner like Bronto,
retailers can capture the untapped US market with:
• Segmentation
• Lifecycle and triggered messages
• Cart abandonment messaging
• Professional Service consulting
Contact Us:
Info@Bronto.com | Greg.Zakowicz@Bronto.com | www.Bronto.com | 1-888-BRONTO1
© 2017 eMarketer Inc.
Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Q&A Session
Made possible by
You will receive an email
tomorrow with a link to view the
deck and webinar recording.
To learn more: www.emarketer.com/products
800-405-0844 or webinars@emarketer.com
Paul Briggs
Senior Analyst, Canada
Digital Trends in Canada—What
You Need to Know for 2017
 Canada B2B Marketing: A Maturing Discipline, Underpinned by
Marketing Tech
 Ecommerce in Canada 2017: The Digital Disruption of Retail
 Canada Expenditures StatPack 2017: Consumer Time and
Advertiser Dollars

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eMarketer Webinar: Digital Trends in Canada—What You Need to Know for 2017

  • 1. © 2017 eMarketer Inc. Digital Trends in Canada—What You Need to Know for 2017 Paul Briggs Senior Analyst, Canada May 11, 2017 Made possible by
  • 2. © 2017 eMarketer Inc. Today’s agenda: Obstacles and opportunities for marketers in 2017 Obstacles  Cleaning up digital display  Getting multitouch attribution right Opportunities  Big data-driven marketing  Brand publishing  Augmented and virtual reality #eMwebinar
  • 3. © 2017 eMarketer Inc. Cleaning Up Digital Display
  • 4. © 2017 eMarketer Inc. Display is a huge chunk of digital ad spending, amounting to an estimated CA$2.30 billion this year #eMwebinar
  • 5. © 2017 eMarketer Inc. Today’s online and mobile display ad environment faces a triple threat  Ad fraud: Putting into question the accuracy of impression reporting  Viewability: The percentage of impressions that are seen on a screen and for how long  Ad blocking: Both desktop and mobile #eMwebinar
  • 6. © 2017 eMarketer Inc. Brand and agency marketers in Canada rate ad fraud as the biggest issue with digital display Percentage of Marketers Naming the Following Issues as a ‘Serious’ or ‘Very Serious’ Threat to Their Business (% share of brand and agency executive responses) #eMwebinar
  • 7. © 2017 eMarketer Inc. Execs in Canada acknowledge the obstacle “Digital content has evolved, and online advertising, internet advertising, hasn’t.” —Mitch Joel, President, Mirum “Two or three years ago, clients wholeheartedly believed in the numbers. Now you hear about bots or outside influences driving the numbers. I think that shook the absolute faith in the numbers and I think that’s rattled advertiser confidence.” —John Clinton, Chairman, Edelman Canada #eMwebinar
  • 8. © 2017 eMarketer Inc. Viewability rates in Canada exceed those of similar digital economies #eMwebinar
  • 9. © 2017 eMarketer Inc. 2016 ad blocking estimates for Canada are lower compared with those in the US and the UK 17%Internet users in Canada who use an ad blocker 24% US internet users who use an ad blocker 19% UK internet users who use an ad blocker Source: IAB Canada/comScore Source: eMarketer Source: eMarketer
  • 10. © 2017 eMarketer Inc. Getting Multitouch Attribution Right
  • 11. © 2017 eMarketer Inc. Defining attribution  Attribution is the process of assigning credit to certain marketing activities for specific conversion results Last click assigns credit to the most recent touchpoint or channel providing the last click prior to a conversion (e.g., AdWords, banner ad) Multitouch (aka cross-channel) assigns credit to marketing activities and touchpoints across devices and an expanding number of touchpoints with brands #eMwebinar
  • 12. © 2017 eMarketer Inc. But less than half of marketers worldwide use attribution to measure marketing effectiveness #eMwebinar
  • 13. © 2017 eMarketer Inc. Multitouch attribution is essential in finding the right marketing investment mix “There’s a need for marketers to invest in high-quality options early in order to understand multitouch attribution, predict consumer behavior and improve targeting.” —Mario Lemieux, President and Partner, DAC Group #eMwebinar
  • 14. © 2017 eMarketer Inc. The evolution of attribution Traditional  Econometrics, marketing-mix modeling  Inputs include GRPs, reach, spend, sales data  Executed in advance of media spending Digital  Path analysis using cookies and other web data to analyze actual activity  Executed in real time to optimize using performance data Advanced  De-emphasizing last-click  Cross-device  Multitouch #eMwebinar
  • 15. © 2017 eMarketer Inc. Understanding the customer journey requires a plethora of data inputs #eMwebinar
  • 16. © 2017 eMarketer Inc. And among those that do attempt to measure, the majority use rudimentary analytics tools #eMwebinar
  • 17. © 2017 eMarketer Inc. Big Data-Driven Marketing
  • 18. © 2017 eMarketer Inc. Big data marketing is built over years—not weeks or months Choosing a platform for data collection The foundation of the “martech stack,” including DMP, with hooks into CRM 1 2 3 4 Selecting which data sources will be input First-party data, mobile device IDs, cookie history Detecting patterns in the data over time Daypart activity, consumer touchpoints, conversion triggers Building predictive models that guide future investment Contextual engagement, product suggestions, loyalty integration
  • 19. © 2017 eMarketer Inc. Turning data into targeting smarts “Marketers are gathering a lot of data but they’re not quite sure what to do with it. There’s definitely a need to start investing more in data sciences and machine analysis of the data. All the data collected on behavior beforehand almost has to act as your cookie pool.” —Petar Bozinovski, President, Digital, Crucial Interactive Canada #eMwebinar
  • 20. © 2017 eMarketer Inc. But it’s complex: No fewer than nine tech tools were identified as important by data marketers #eMwebinar
  • 21. © 2017 eMarketer Inc. Confidence in marketing tech for audience data is mixed #eMwebinar
  • 22. © 2017 eMarketer Inc. Tech can bring much needed confidence "A lot of advertiser confidence depends on what technologies they have. If they invest in a data management platform, they’re certainly on a route to building the capabilities of managing their own data, and providing first-party data segments to inform how they buy media.” —Chris Williams, Vice President, Digital, Association of Canadian Advertisers (ACA) #eMwebinar
  • 23. © 2017 eMarketer Inc. The internet of things (IoT): sensors, sensors everywhere 114M number of IoT connections in Canada by 2018 4X the amount from 2013 Source: International Data Corporation (IDC) #eMwebinar
  • 24. © 2017 eMarketer Inc. Brand Publishing
  • 25. © 2017 eMarketer Inc. Content is winning the battle for time “People used to vote with their wallets, and now they vote with their time. Content is winning the battle for time because it really is what people want to see, as opposed to the stuff they have to see [in advertising]. ... It really doesn’t matter whether it’s content marketing, native advertising, brand publishing. … You just have to win the battle for time. You’ll never get the wallet if you don’t first get the time.” —Ron Tite, President and CEO, The Tite Group #eMwebinar
  • 26. © 2017 eMarketer Inc. Content marketing vs. brand publishing  Content marketing – Associated with early stages of the sales funnel, helping to push leads closer to a transaction – Involves creating timely and compelling content via owned, earned and paid channels  Brand publishing – Less attached to sales metrics – It is more journalistic in tone, steering clear of any overt messaging about the brand’s position – Aims to compete with mainstream media for consumer time #eMwebinar
  • 27. © 2017 eMarketer Inc. Content that informs, educates, entertains and inspires all hit a compelling note #eMwebinar
  • 28. © 2017 eMarketer Inc. A video scorecard from Q1 2017 in Canada: WestJet is tops #eMwebinar
  • 29. © 2017 eMarketer Inc. Examples of brand publishing in Canada  WestJet’s ‘Christmas Miracle’  Launched in 2013, but ongoing publishing cadence for key dates on the calendar every year  More than 45 million YouTube views on the original video  Toronto SickKids Foundation ‘VS’ campaign  Launched in 2016  Followed 45 documentary shorts published in 2014 and 2015  Supported with TV
  • 30. © 2017 eMarketer Inc. Paid amplification of content: Native ads in social feeds most often tie back to branded content #eMwebinar
  • 31. © 2017 eMarketer Inc. Augmented and Virtual Reality
  • 32. © 2017 eMarketer Inc. AR and VR have the potential to be breakthrough new media formats “Brands should get in early on augmented and virtual reality. This is a new media; it’s a new platform, much in the same way as we were introduced to the web primarily through the first web browser. It brings us back to that moment in time where an entirely new way to engage with content is being created.” —Mitch Joel, President, Mirum #eMwebinar
  • 33. © 2017 eMarketer Inc. The Content Continuum Basic Websites White papers Product collateral Engaging Video Blog posts Infographics Immersive 360 video Augmented reality Virtual reality #eMwebinar
  • 34. © 2017 eMarketer Inc. Annual VR and AR shipments will grow tenfold between 2016 and 2021 globally #eMwebinar
  • 35. © 2017 eMarketer Inc. Specific to Canada … US$500M IDC estimate of the AR/VR market in Canada in 2017 230% CAGR through 2020 #eMwebinar
  • 36. © 2017 eMarketer Inc. But consumers in Canada have had little exposure to VR headsets to date #eMwebinar
  • 37. © 2017 eMarketer Inc. Agency and brand interest in VR is high “About a year ago, every agency in our backyard was knocking on our door to find out what virtual reality was. They tried it out, and then they left extremely excited. What happened, in my belief, is that they'd go to their client, and they didn't know how to sell it. ... A lot of the agencies are coming back for consulting and to help develop pitches and proposals.” —J. Lee Williams, President, Occupied VR #eMwebinar
  • 38. © 2017 eMarketer Inc. Immersive campaigns hit their stride this year  Clorox Brita/WE ‘Clean Water Project’ featuring Irkaat, Kenya  Launched April 2017  VR experiences at Square One shopping mall  360 video on Facebook and YouTube  Molson Canadian/Sportsnet  Launched February 2017  Google Cardboard-like headset for viewing NHL games  Invent Dev VR for Real Estate, GTA Home & Reno Show  Launched 2016  VR walkthroughs of floorplans with model homes
  • 39. © 2017 eMarketer Inc. Recap  Digital display, especially banners and pre-roll, requires a rethink.  Attribution has evolved from traditional to multitouch and cross-device models.  Data literacy is a must for marketers.  Brands are acting like publishers, attempting to compete with mainstream media for consumer time.  AR/VR is creating immersive content and more compelling brand engagement.
  • 40. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. The Canadian E-Retail Opportunity Greg Zakowicz Greg.Zakowicz@Bronto.com www.Bronto.com 1-888-BRONTO1 Info@Bronto.com
  • 41. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Bronto Software: The Canadian E-Retail Opportunity • Statistics Canada estimates Canadian consumers will spend nearly $18 billion on retail goods with Canadian merchants in 2017. • This suggests that $20 billion in sales will be claimed by foreign e-retailers.
  • 42. Copyright © 2017, Oracle and/or its affiliates. All rights reserved.Copyright © 2017, Oracle and/or its affiliates. All rights reserved. “E-Commerce in Canada, 2017 edition”, Internet Retailer, 2016 Will sell and ship to consumers in Canada. 36% Of the 1,000 largest global retailers
  • 43. Copyright © 2017, Oracle and/or its affiliates. All rights reserved.Copyright © 2017, Oracle and/or its affiliates. All rights reserved. “Where We Buy: Consumer Attitudes on Global Ecommerce”, Bronto Software, 2016 “E-Commerce in Canada, 2017 edition”, Internet Retailer, 2016 Online shoppers who have already purchased from outside of their country. CA 67% USA 42% UK 44% AU 72%
  • 44. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Bronto Software: The Canadian E-Retail Opportunity 72% of US consumers are open to purchasing from Canada, yet only 20% have done so. Through utilizing an ecommerce technology partner like Bronto, retailers can capture the untapped US market with: • Segmentation • Lifecycle and triggered messages • Cart abandonment messaging • Professional Service consulting Contact Us: Info@Bronto.com | Greg.Zakowicz@Bronto.com | www.Bronto.com | 1-888-BRONTO1
  • 45. © 2017 eMarketer Inc. Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Q&A Session Made possible by You will receive an email tomorrow with a link to view the deck and webinar recording. To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com Paul Briggs Senior Analyst, Canada Digital Trends in Canada—What You Need to Know for 2017  Canada B2B Marketing: A Maturing Discipline, Underpinned by Marketing Tech  Ecommerce in Canada 2017: The Digital Disruption of Retail  Canada Expenditures StatPack 2017: Consumer Time and Advertiser Dollars