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A Guide to the 2013Consumer Electronics Show
CH 3 : Commerce+   3   4                       Table of Contents                           5   Introduction               ...
5                                                                                                                  SIDEBAR...
8Chapter 1connection Engine
CH 1 : connection engine   9                           Jeremy Lockhorn                     Chris Allen                    ...
CH 1 : connection engine   11                                                                                             ...
CH 1 : connection engine   13                           sidebar : The Coming                           Connection Engine E...
CH 1 : connection engine   15                                                                                             ...
CH 1 : connection engine   17                                                                                      Part 2 ...
CH 1 : connection engine   19                           Sidebar : social TV                           If any trend has dom...
CH 1 : connection engine   21                           Part 3:                                                           ...
CH 1 : connection engine   23                                                                                             ...
CH 1 : connection engine   25                           Things to look for                           Hardware and software...
28Chapter 2Data-Driven Marketing
CH 2 : Data-driven marketing   29                                                                                         ...
CH 2 : Data-driven marketing   31                                                                                         ...
CH 2 : Data-driven marketing   33                                                                                         ...
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
CES 2013: Big Ideas
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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, 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.

Published in: Technology

CES 2013: Big Ideas

  1. 1. A Guide to the 2013Consumer Electronics Show
  2. 2. 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
  3. 3. 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.
  4. 4. 8Chapter 1connection Engine
  5. 5. 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.
  6. 6. 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
  7. 7. 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.
  8. 8. 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
  9. 9. 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.
  10. 10. 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
  11. 11. 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.
  12. 12. 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
  13. 13. 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.)
  14. 14. 28Chapter 2Data-Driven Marketing
  15. 15. 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.
  16. 16. 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
  17. 17. 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

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