eMarketer Webinar: Key Digital Trends for 2012

1. D E C E M B E R 1 5, 2 0 1 1N E W Y O R K, NYPresented By: Key Digital TrendsNoah ElkinDavid HallermanDebra Aho Williamson for 2012 Principal Analysts, eMarketer Inc. Sponsored by: ©2011 eMarketer Inc.

8. What it means: finding the opportunitiesthat exist in today’s technology stack • Communication Activities • Media consumption • Commerce • Facebook • Twitter Platforms • Amazon • Netflix • PCs • Smartphones Devices • Tablets • Over-the-TopTwitter: #eMwebinar ©2011 eMarketer Inc.

12. The next wave in location revolvesaround enabling commerce Lots of attention on time-sensitive deals. But an open question remains: Are daily deals good deals for merchants? Or are they giving away the store? Growing emphasis on generating loyalty. Local merchants and national brands alike recognize that customer acquisition needs to be balanced with customer loyalty. Ad dollars will follow shoppers. The combination of location, mobile, social and commerce will form a potent force in the advertising market.Twitter: #eMwebinar ©2011 eMarketer Inc.

15. Forecasts agree on mobile paymentsgrowth, but not on how much money is on thetable $670B (2015) $556B (2016) Juniper $246B (July 2011) (2011) visiongain (Aug 2011) Yankee Group $86.1B (July 2011) (2011) Gartner (July 2011) Note: figures above are worldwideTwitter: #eMwebinar ©2011 eMarketer Inc.

16. The last mile is always the longest, hardest … and most expensiveImage courtesy of Lubos Brieda

18. Key trends for digital advertising in2012…  Magnetic content: attract rather than distract, engage rather than intrude  Video leads the way: brand advertising follows sometimes traditional, sometimes interactive paths  Programmatic buying: efficient and effective for display advertising  Privacy concerns: will become increasingly central to digital marketingTwitter: #eMwebinar ©2011 eMarketer Inc.

20. What blurs the line betweenadvertising and content? Magnetic content, which can be… …branded videos …interactive games …mobile apps …digital contests …any method that attracts as it promotesTwitter: #eMwebinar ©2011 eMarketer Inc.

25. Magnetic content can bypass consumerdislike for advertising and engage them “The ad is yesterday. Content is the future.” —Oliver Newton, head of emerging platforms, Starcom MediaVest “You’ll start to see us—and in general the industry—move away from just the static push advertising to more engaged conversations.” —Scott Kelly, digital marketing manager, Ford Motor Co.Twitter: #eMwebinar ©2011 eMarketer Inc.

33. Ad inventory options: old ways andnew methods  Publisher direct (premium)  Ad networks  Ad exchanges  Private exchanges  Demand-side platforms (DSPs)  Real-time bidding (RTB)Twitter: #eMwebinar

34. Publishersextend theirsales reachby puttinginventory onexchangesor otherreal-timeplatforms

35. What is a private exchange?  Marketplace in which one large publisher sells inventory based on its segmented user base  While many are a single publisher, some are small, related groups of publishers  Also can be large groups (ex: QuadrantOne, which sells inventory from hundreds of newspaper sites)  Often fueled using RTB technologyTwitter: #eMwebinar

36. Nick Johnson, senior vice president, digitalmedia sales, NBC Universal “If advertisers want to come in, we’re selling them the network. We’re not selling them placements; we’re selling them people.”

37. What is a demand-side platform(DSP)?  System for managing multiple ad exchange accounts using a single interface  Lets marketers integrate outside data directly into DSPs for buying via RTB methods  Prime example of programmatic buying  Trading desks are essentially in-house agency DSPsTwitter: #eMwebinar

38. Significant share of those considering aDSP say it will be a part of their efforts

39. What is real-time bidding (RTB)?  Component of a DSP, ad exchange or network that lets buyers use their own data and targeting options to bid for each ad impression  Gives marketers a controlled environment for buying ad inventory and optimizing costs  Fueled by a wealth of data, such as IP address, geolocation, current site user is viewing, ad unit size and format, time of day, user profile  Based on instantaneous auctions (duh!)Twitter: #eMwebinar

40. RTB’s share of display spending is stillsmall, but growing rapidly

41. Programmatic buying: can be moreeffective, but control is a concern

43. Internetusersregularlycontradictthemselvesaboutprivacyconcerns

44. Is the privacy debate outdated? Or isthe concept of privacy simply changing?

45. The vastmajority ofconsumerssimply wantto knowwhat data isbeingcollected, aform ofcontrol

46. When itcomes todata, controlandknowledgeare essentialfor at leasthalf ofconsumers

47. Interestingthat ―only‖59% ofinternetusers saygovernmentshould beresponsibleforprotectingtheir privacy

48. Which players should be responsiblefor protecting user privacy?  Advertisers and agencies?  Online publishers and retailers?  Search engines?  Trade groups, such as the IAB?  Privacy vendors, such as TRUSTe or Evidon?  Other ad-infrastructure vendors, such as ad networks?  Browser makers?  Operating-system creators?  The government?  Users themselves?Twitter: #eMwebinar

49. Two basic ways the ad industry isresponding to privacy challenges  Transparency: here is what we’re doing and why we’re doing it  Trade-offs: here is something of value in exchange for your time, attention and data Of course, transparency itself is a form of value—knowledge and control help create trustTwitter: #eMwebinar

52. Two-thirds of US internet users will usesocial networks in 2012But thepace ofgrowth willbe lessdramaticover thenext fewyears.

53. Asian, Black and Hispanic populationslead in usageTwitter: #eMwebinar

55. Worldwide social network ad revenueswill pass $8 billion in 2012

56. Facebook will have $5.8 billion inadvertising revenue in 2012

57. Facebook trends to watch in 2012: Privacy. The FTC agreement doesn’t mean Facebook’s privacy challenges are over. There will be more attention than ever on how Facebook uses its members’ information. Ad revenue. To keep ad revenues growing, the company will spend more time evangelizing the benefits of buying ads to support a Facebook marketing presence. Mobile. Facebook needs to make its mobile platform even better to attract international audiences. And mobile ads are long overdue.Twitter: #eMwebinar

59. CMOs needhardmetrics tosupportsocialmediaspendingincreases

60. Marketersstillfocusing onmeasuringfans ratherthanbusinessresults

61. Topcompanieswant togain moreconsumerinsightsanddevelopdashboardsand KPIs

62. How to get to the metrics that matter Look at more than branding results Don’t wait for the silver bullet success metric Know your business goalsMeasure(something!) Be a leader in the next phase of social media measurement.

64. Google+ will draw marketer attention in2012 Google’s social network opened to brands in November 2011. Consumers can add a brand to their Google+ Circles. Brands can then do the same, segmenting their audience into different groups. +1 button adds social actions to search. A Google+ page can affect a brand’s search results, and searching on Google for “+[Brand]” takes the user directly to the company’s Google+ page. Early usage trends have been up and down. However, the size of the audience may be moot if Google can create new ad products that blend social and search.Twitter: #eMwebinar

65. Adoption of Google+ Pages is promising,with 61% of the top 100 brands there

70. Key takeaways Device adoption trends signal new imperatives for marketers. Consumers’ approach is increasingly platform-agnostic. The line between advertising and content continues to blur. Marketers are looking to bypass consumer dislike of advertising through new forms of cross-channel engagement. Social networking remains in growth mode. Users and ad revenues are on the rise; measurement is still evolving. Consumers’ mobile, social and shopping behaviors are converging at the last mile. Brands need to understand where location fits with their different touchpoints, from check-in to checkout. Privacy remains on the front burner for consumers and marketers alike. Concerns are real and growing across online, social and mobile platforms.Twitter: #eMwebinar ©2011 eMarketer Inc.

71. CMO’s feeling overwhelmed… IBM CMO Study finds that with a torrent of complexity, CMOs feel unprepared for the amount of complexity they face. Expected level of complexity and preparedness to handle Percent of Global CMOs responding © 2011 IBM Corporation

72. Overwhelmed with channels, devices, and social media IBM CMO Study finds CMOs are underprepared for data explosion and look to technology and analytics for help Under-preparedness Percent of CMOs reporting under-preparedness © 2011 IBM Corporation

73. Better prepared CMOs more likely to succeed IBM CMO Study finds that preparing for and dealing with your marketing challenges can improve business success Percent of CMOs reporting under-preparedness to manage market factors Lower unpreparedness correlated with out performance © 2011 IBM Corporation

75. Key Digital Trends for 2012Questions & AnswersRegistrants will receive an email tomorrow that includes a link toview the deck and webinar recording.For more discussion, please join us after the webinar on Twitter.To learn about eMarketer Total Access please visit www.emarketer.com/productsor contact us: (800) 405-0844 or webinars@emarketer.comPresented by: Noah Elkin, David Hallermanand Debra Aho Williamson Sponsored by:Principal Analysts, eMarketer, Inc. Twitter hashtag: #eMwebinar