Outlook: 2013 Marketing, Advertising & Social Media Trends

1

2013 Outlook: Marketing,
Advertising, and Social Trends

January 18, 2013

Rebecca Lieb @lieblink
Industry Analyst

2

Major Digital Marketing Trends for 2013
1. Real-time marketing and listening platforms
2. Convergence of paid, owned, and earned media
3. Content marketing and content strategy
4. Native advertising
5. Growth of visual information
6. Online and offline channel convergence
7. Mobile marketing
8. Big data
9. Gamification
10. Eradication of internal digital practice silos

© 2012 Altimeter Group

Real-time Marketing and
Listening Platforms


4

Real-time marketing is immediate reaction.
It‘s the marketing of relevancy,
achieved by listening and
anticipation of consumer need.


Real-time marketing delivers what marketers
want most and turbo charges other efforts

Source: GolinHarris, The Promises and Pitfalls of Real-Time Marketing.
http://golinharris.com/#!/insights/real-time-marketing-research/


Two types of always-on marketing
1. Event driven
• Public events
• Brand events
• Breaking news
2. Customer driven
• Customer service
• Crisis management


Foursquare promotion contributes to record
―Small Business Saturday‖ sales for AMEX

An estimated 103 million
Americans shopped at small
businesses on 2011‘s Small
Business Saturday. American
Express saw a 23% increase
in transactions from its
inaugural event.


Toyota feels backlash after Twitter spamming
its Toyota Camry promo during Super Bowl


9

Wells Fargo‘s Twitter account is now its most
effective and efficient customer service tool

@Ask_WellsFargo
has contributed to an
increase in positive
brand sentiment
by 38%.


10

Eurocontrol responds to environmental
crisis via Facebook, LinkedIn & Twitter

Eurocontrol used #euva and
#ashtag to monitor and
respond to conversations
about 2010‘s Icelandic
volcanic ash cloud.


11

Twitter improves search (and ad serving)
with real-time human computation

?

12

Customers have opinions – you must listen
and act, and respond


13

Social listening, monitoring, and
measurement are foundations for agility
 Brands must:
1. Have systems and processes in place to
listen, measure, and respond.
2. Let conversation instruct creative design
and strategy.
3. Use insights to be proactive.
4. Allows insights to facilitate personalization
and resonance.


An always-on organization starts with
man power and a structured staff
 Work toward deploying a 24/7 response model
 Dedicate resources to ―Control rooms‖ and ―War
rooms‖ to monitor social conversation
 Arm teams with training and tools for success


15

Applebee‘s supports 7K employees in 1K
locations to monitor & respond in social

SHARING

REAL TIME Source: Expion, Disclosure: An Altimeter client


Dell‘s Social Media Listening Command
Center monitors conversation, sentiment

Dell uses Salesforce
Radian6 to power its
social media
monitoring of more
than 22K daily topic
posts on the
social Web.


Gatorade monitors social conversations from
a dedicated room

Gatorade‘s Social Media
Command Center is a
―war room for monitoring
the brand in real-time
across social media.‖


Convergence of Paid, Owned,
and Earned Media


19

Defining Paid, Owned, and Earned Media

Paid Owned Earned
 Requires media buy  Owned or controlled  User-generated content
but does not require surrounding brand
media buy


20

Now, let‘s define Converged Media

 Two or more channels of paid, earned, and owned media.
 Consistent storyline, look, and feel.
 All channels work in concert, enabling brands to reach
customers throughout the customer journey


21

Creating branded ‗surround sound‘: how
media types influence and enable each other

OWNED

PAID Instructs where to amplify EARNED
Drives volume


22

What does this look like on Facebook?


23

What does this look like on Twitter?


24

Glidden Paint employs a wide palette of channels,
converging media for a streamlined brand experience


25

Enterprise tech company pays the influencers
to ignite earned, drive traffic back to owned
128
Pieces of content created by
24 influencers

Influencers commissioned
to create content
1.1m
Social interactions

The company paid influencers
to share content
9,314
Average actions per
Across their piece of content
networks


26

Enterprise tech company achieves converged
media harmony with quality content

While investing in influencers and
media partners to amplify, the
investment was just as much in
the content itself– valuable,
sharable, and on-brand.


27

Brands that do not integrate paid, owned and
earned media types are at a disadvantage
 Fragmented messaging, inconsistent branding
 Redundant efforts, no communication or
collaboration
 Departments competing for budget
 Low customer engagement/ advocacy
 Convergence begins to occur in traditional media


28

Altimeter identifies 11 criteria to successful
converged media deployment


29

Execution Workflow: Coordinating Paid, Owned,
and Earned as one orchestration


30

But, remember, workflows are unique to the
organization


Content Marketing and
Content Strategy

© 2012 Altimeter Group Photo courtesy of valkyrieh116 under Creative Commons License at Flickr - http://www.flickr.com/photos/valkyrieh116/758542578/

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Content marketing is a pull strategy;
it‘s the marketing of attraction.
It‘s being there when consumers need you,
and seek you out with relevant, educational,
helpful, compelling, engaging and sometimes
entertaining information.


Content Marketing Builds Stronger Brands
 Awareness
 Trust
 Purchase Intent
 Word-of-mouth
 Customer Engagement
 Lower Acquisition Costs


Content Marketing Changes the Game
 Earned and owned media
 Long-term initiatives vs. short-term campaigns
 New skills as publishers, producers and
community managers
 Evolution from advertisers to storytellers


Altimeter‘s Content Marketing Maturity Model


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Standing organizations need someone to
champion content

Every organization needs
a torchbearer that will shift
the company‘s focus to
more meaningful
marketing communication.


Iron Mountain focuses content on personas

Iron Mountain‘s email marketing before (left)
and after (right) the company developed
marketing personas and refocused its
content to better align with consumer pain
points vs. product attributes.


Eloqua expands its content marketing with
creation of VP Content Marketing role

Joe Chernov launched Eloqua‘s
corporate blog and later used it to
promote the company‘s other content—
made trackable by requiring users to
provide contact information. This
enabled Chernov to measure
effectiveness, directly attributing $2.5M
in revenue to four free guides in 2010.

Lieb, Rebecca. Content Marketing: Think like a Publisher –
How to Use Content to Market Online and in Social Media. Indianapolis: Que, 2012.

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Salesforce leverages video to share product
demos, webinars, events, and more

Salesforce‘s 2,600
YouTube videos
receive upward of 11K
views per day. The
company has valued
its product demo views
(av. 2 minutes per
view) as equal to
customers receiving
service from 66 hyper-
efficient sales
representatives.


Red Bull recognized as content empire, adds
e-commerce site to media strategy


41

Questions?


Image by Madhava Enros used with Attribution as directed by Creative Commons http://www.flickr.com/photos/menros/84195844/

Native Advertising


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Known also as custom content, sponsored content,
branded content, content marketing, collaborative
content, or even advertorials,
―native advertising‖ is placing
brand-generated content onto the
pages of real publishing properties.


44

Native advertising on news sites

Boston Globe

The Atlantic

Gawker Media


45

Remington targets customers during the
purchase consideration cycle with native ads

1

2

3


46

Samsung amplifies popular earned media as
ad units to influence additional consumers


47

NYT‘s Ricochet platform helps brands deliver
advertising paired with select articles


48

Who benefits from native advertising?
 Although often unpaid, content contributors ―sell‖
their companies, professional services, domain
expertise, and personal brands in return for
exposure
 Publishers charge basic CPM or CPC rates for
sponsored content, or may calculate costs based
on page positioning or feature
 Consumers begin to regard sponsored content as
editorial content, breaking down the credibility wall
between advertising and editorial


Growth of Visual Information


Where is content confidence held?

Base: 56 marketers; Size of bubbles above reflect marketers' intention to increase/decrease use of that content type
over the foreseeable future. * Based on question: What are the most effective types of content you‘ve used to
promote your brand? ** Based on question: Which type(s) of content do you plan to phase out, use less of, or
have found ineffective?; Source: Altimeter Group


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Types of visual information
 Photos (Pinterest, Flickr)
 Videos (YouTube, Vimeo)
 Infographics
 Charts, diagrams, and other data visualizations


52

Social scrapbooking platform Pinterest has
25 million monthly active users

Source: https://social.ogilvy.com/unlock-the-data-of-desire-on-pinterest-infographic/


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Pinterest users spend twice as much as
Twitter, Facebook referrals

Reports also suggest that buyers referred from Pinterest are
10% more likely to buy than those who arrive from other
social sites, and 70% more likely than those from websites.

Source: http://www.mediabistro.com/alltwitter/pinterest-online-sales_b22824


54

Etsy drives sales by directing shoppers from
Pinterest to mobile e-commerce site


55

BH&G Real Estate‘s visual presence
contributes to company doubling in size

BHGRE network now includes
some 7,000 sales associates in
over 203 offices in 21 states,
nearly doubling in size from 2010
to 2012. Through creative content
marketing initiatives, BHGRE
captures the connected customer
through multiple channels, across
multiple devices.


Corning‘s Internal Video Becomes Most-
Watched Corporate Video on YouTube

―It breaks all the rules when you
think about it. It‘s six minutes long;
it‘s not funny, it doesn‘t have
celebrities in it, it‘s not intended to
be sent around to your friends.‖
– Doremus, Corning spokesperson


K-SWISS Uses Humor to Attract Audiences
and Sales in Release of Online Video Series

K-SWISS‘ Kenny Powers
videos earned millions of
views online, resulted in a
1256% increase in Facebook
fans, and contributed to a
250% increase in online sales.


58

High-quality infographics are 30x more likely
to be read than text articles

Source: http://ansonalex.com/infographics/infographic-effectiveness-statistics-infographic/


59

Mint garners social traffic and links with
compelling visual data

Mint.com infographics
consistently generated 30X
more traffic than a
comparable text-based
article. Creating compelling
portable content creates
engagement on the web.


60

Recommendations
 Always ask: ―What‘s the visual hook?‖
 Make images/video accessible, available,
shareable (social newsroom, social image
accounts e.g. Flickr, Pinterest)
 Capture video and images
 Digital asset management (DAM) with tagged
visuals


Online and Offline Channel
Convergence


62

The New York Giants bring social events to
owned venues, generating earned buzz

NYG were the first pro sports team to integrate live tweets
in their offline events (stadium, TV) and online (poll, Q&A,
e-commerce tie-in). Tying in social content and voting with
real-time events generated an increase in e-commerce
sales, a 127% increase in Twitter followers, and huge brand
amplification and awareness for related campaigns.


63

ClearChannel integrates online and offline
channels to ‗make the audience the media‘

Converging media through digital billboards,
gesture recognition, and social media
interaction, ClearChannel combines offline
media with online to drive attention,
engagement, (advertiser interest), and a
summer-long sweepstakes.


64

OxygenLive chats increase tune-in 92%

Live chats with talent from
the show and other fans
via twitter led to a 92%
increase in tune-in among
18- to 49-year-olds
compared to the previous
season of Bad Girls Club.


65

Home Depot designs QR code campaign to aid
the considered purchase— online and offline

Home Depot‘s campaign spans online
and offline media, in-store signage, local
events, and more.
Once activated, shoppers can access
how-to videos, product demos, relevant
accessories, buying guides, project
guides, even make a purchase.


66

Questions?


Mobile Marketing

© 2012 Altimeter Group Photo courtesy of jhaymesisvip under Creative Commons License at Flickr - http://www.flickr.com/photos/jhaymesisvip/6497720753/

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Global Mobile Traffic Growing Rapidly to 13%
of Internet Traffic


69

Impressive 29% of U.S. adults own a tablet or
e-reader, up from 2% less than 3 years ago


70

Mobiles + Tablets = 24% of online shopping
on Black Friday in 2012 (vs. 6% 2 years ago)


71

Step 1: Understand mobile

Altimeter identified three phases
of mobile maturity.
For companies starting out in
mobile, the world is a blank slate.


72

Step 1: Recommendations
1. Determine the ideal impact the strategy for
mobile and social will have on the business and
on the customer – what problem do they need
to solve?
2. What‘s the next step to get there? This will
depend on how far along the maturity curve your
strategy is today.
3. Reaching maturity is likely to involve an
established partner, we‘ve moved past the days
of home-growing mobile.


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Step 2: Target the right devices

Drive loyalty, product
discovery and online
purchases.

Engage strategies can provide product information,
post-purchase support, or help to provide a presence for
retailers and brands with a fully online presence. The
focus is on bringing shoppers closer to the brand to
drive interaction, not just spend.


74

Step 2: Recommendations
1. Today‘s opportunity market is to target the tablet
buyer. Throw out the old playbook. You must
integrate time, location, rich media and social
interaction.
2. Tie in social, but more than just the ‗Like‘ button.
Have features integrate in a deeper manner.
3. The future of marketing is sophisticated lifestyle
and workstyle content. Some marketers will
become profit centers beyond profit centers.


75

H&R Block app answers tax FAQs

The H&R Block app provides answers to
frequently asked questions and a glossary for tax
terms. It also estimates expected returns based
on basic information.


76

Mass Mutual taps into larger audience with their
‗Future Moves‘ app, converting fun into action

MassMutual‘s ―Future Moves‖
app is brand-free until the reveal
of their financial future, where
the brand connection is clear.


77

Partners Like CatalogSpree Illustrate The
Value Of Rich Media Experiences

The startup is driving
tablet traffic to retailer
sites by providing a
richer experience,
social integration and
campaign features for
major brands looking
to capture mobile
buyers.


78

Spending-conscious ways to save money via
the Mint app
Users who sign up for Mint‘s lifestyle-oriented app learn of deals and
promotions that can help them save money.


79

Mobile Marketing and Development Checklist
1. Who is your competition – brand side?
2. Who is your competition - agency side?
3. What will mobile advertising look like?
4. Who supports development efforts –
internally/externally?
5. What is ―publishing‖ on an app?
6. Who's your audience?
7. How will you measure success?
8. How will mobile apps fit into your cross-media strategy?


Image by Pieter Musterd used with Attribution as directed by Creative Commons http://www.flickr.com/photos/piet_musterd/1858568495

Big Data


1 Quintillion =
1,000,000,000,000,000,000
The world creates 2.5
quintillion bytes of new data –
every day according to IBM.
Source: http://www-01.ibm.com/software/data/bigdata/


Big Data as a lone focus has not been prioritized

Source: InformationWeek‘s 6 Big Data Lies Report, Q3 2012

• Less than 1/5 of businesses surveyed have a formal Big Data strategy
• Just 31% have a wide array of business users accessing information
• A mere 20% plan to grow their dedicated analytics teams in the coming year

Data is nothing new to
the organization; it just
lives in a deep, dark
place where new and
creative ideas trump
information that can
lead to insights and
relevance.

Something new and
connected is needed
internally to effectively
engage externally.

84

Data analytics is a tool to
increase revenue,
maximize profitability,
and increase customer satisfaction.


85

What can we do with big data?
 Analyze conversations and surface sentiment
 Identify product opportunities
 Avert PR crises
 Understand and anticipate evolving customer
needs and expectations


What‘s really driving this shift?
1. The Customer is king

1. Customer experience is key

1. Revenue generation will prevail over cost
efficiencies as the primary IT budget

2. Digital marketing expenditure is growing,
adoption rising

1. Digital marketing is highly measurable, ROI
can be tracked, measured, proven

1. Marketing technology builds relationships


Digital Breadcrumbs:
Through sensors, social
streams, and everyday
behavior, you now have the
ability to know your customers
better than they know
themselves.


Williams-Sonoma suspected different customers were
responding to campaigns and channels differently

Williams-Sonoma knew certain customers responded better to digital messaging
than to catalogs, but to act on that knowledge effectively, they needed a way to
analyze campaign effects on individuals – not just segments.

First, they took inventory of all channels, campaigns,
tools, internal and external challenges

• Seasonal buying habits
• Customer buying
• Mobile messages
histories
• Banner ads
• Online search campaigns
• In-store promotions • Challenges of managing
• Loyalty cards marketing
• Web analytics • Disparate systems,
• Catalogs brands, teams
• Email blasts
• Print ads, Billboard
• Credit scores
• Telemarketing
• Demographics
• TV ads
• Other augmented data
sources

Williams-Sonoma uses this data to serve up ―prescriptions‖ for how to feel
individual shoppers messages– and how to reallocate budget accordingly


Williams-Sonoma partnered with UpStream Software
to design marketing algorithms based on data
crunching techniques used in medical research

Source: Upstream

By drawing data from dozens of distinct sources, conducting statistical modeling to
analyze the efficacy of multiple marketing campaigns over time for a single
customer, like treatments over time for a patient, Williams-Sonoma now uses
algorithms to assess which factors in a customer‘s lifetime lead to a sale.

As a result, Williams-Sonoma optimizes
customer experience and marketing spend
• Decreased costs on direct marketing, sending
less catalogs to unresponsive customers;
allocated more funds to e-marketing (display
ads, email campaigns, etc.)
• UpStream integration scores integrated data to
instantly drive the right campaigns to individual
consumers at a massive scale, processing over
50 million scores per day per client
• Enables Williams-Sonoma to have a single
dashboard of all campaign touches:
interactions with retail stores, online behaviors,
and purchasing.

―We‘ve seen our ability to target with the catalog improve using these techniques on a
scale that we haven‘t seen with any sort of small technical improvement. This is a
qualitative improvement in our ability to target the right type of customer with the
right type of messaging, and it‘s not something that we‘ve had available up to now.‖
-Mohan Namboodiri, VP of Customer Analytics for Williams-Sonoma

Gamification


93

Gamification is the integration of game mechanics
or game dynamics into a website, service,
community, campaign, or application
to drive participation and
engagement.


94

Gamification is often applied to traditionally
non-gaming contexts or industries
 Marketers turn inbound marketing into a game to
achieve a desired marketing or business goal:
• Boost customer loyalty
• Increase sales amount
• Encourage new and repeat purchases
• Inspire advocacy and word-of-mouth
 Organizations may also use gamification internally
to boost sales, customer service, or inspire other
friendly competition for reward


95

In return, customers who ―play‖ and compete
are rewarded
 Free products or samples
 Free or discounted services
 Other monetary compensation
 Badges and other online or in-application
achievements
 Recognition publicly or within their social networks


96

The Red Cross gamifies blood donations

The Red Cross partnered with
Best Buy and Nascar to gamify
blood donations. Every time
someone gives blood, they‘re
eligible for points that can be
redeemed for prizes.


97

Virtual call center operator LiveOps uses
gamification to improve performance of 20,000
independent contractor call agents

LiveOps gives out virtual
badges and points for tasks
such as keeping calls brief and
closing sales. Leaderboards let
the agents compare their
achievements.


98

SAP uses gamification to drive content
creation and engagement

Points are awarded to those
who contribute, and one can
receive additional points when
community members recognize
the value of an individual‘s
contributions by liking, rating,
sharing, etc.


99

Questions?


100

Eradication of Internal Digital
Practice Silos


101

Brands must overcome cultural silos and
align teams and departments
 Ownership/governance
 Communication
 Collaboration/creative design
 Campaign goals
 Budget


102

Intel among the first to reorganize … merging
social media team with global media team

―Why does this make sense? I found we were having similar
conversations across teams. For the past several years, I have
been encouraging every opportunity for them to work as one,
sharing information and insights — driving cross media
opportunities with our partners and thinking about a new world
where the idea of ―paid‖ or transactional media dissolves.‖


103

Intel achieves converged media harmony

45,794
social actions


104

Brands must also incentivize agencies and
vendors to work together
Vendor Agency

Agency Vendor

Brand
Brands cannot deploy converged media alone.
They must coordinate agency and vendor
partners. Our research found that stakeholders
are often resistant to cross-collaboration.

105

Recap: Major Digital Marketing Trends for 2013
1. Real-time marketing and listening platforms
2. Convergence of paid, owned, and earned media
3. Content marketing and content strategy
4. Native advertising
5. Growth of visual information
6. Online and offline channel convergence
7. Mobile marketing
8. Big data
9. Gamification
10. Eradication of internal digital practice silos


THANK YOU
Rebecca Lieb
rebecca@altimetergroup.com
rebeccalieb.com/blog
Twitter: lieblink

Disclaimer: Although the information and data used in this report have been produced and processed from
sources believed to be reliable, no warranty expressed or implied is made regarding the completeness,
accuracy, adequacy or use of the information. The authors and contributors of the information and data
shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference
herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply
its endorsement, recommendation or favoring by the authors or contributors and shall not be used for
advertising or product endorsement purposes. The opinions expressed herein are subject to change without
notice.


107

ABOUT US
Altimeter Group provides research and advisory for companies
challenged by business disruptions, enabling them to pursue
new opportunities and business models.

Visit us at http://www.altimetergroup.com or contact
info@altimetergroup.com.


Outlook: 2013 Marketing, Advertising & Social Media Trends

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