December 12, 2013

Key Digital Trends
for 2014

Presented by:
Noah Elkin
Principal Analyst

Sponsored by:

©2013 eMarketer Inc.
Agenda: eMarketer sees four key trends
affecting digital marketing in 2014
 No. 1: Mobile moves to the center of the
multiplatform landscape

 No. 2: New demands accelerate marketing to
the point of instant interactions
 No. 3: “Always-on commerce” turns shopping
inside out
 No. 4: Always on means always social
Twitter Hashtag – #eMwebinar
©2013 eMarketer Inc.
Mobile Moves to the
Center of the
Multiplatform Landscape

©2013 eMarketer Inc.
In a digital landscape defined by an
ever-expanding number of screens …

Smartphones

Phablet
Phablets

Wearable
Wearable Technology
Technology

Social Machines
Social Machines

Connected
Consoles
Connected Consoles

Ambient Surfaces
Ambient
Surfaces

Connected Cars
Connected Cars

©2013 eMarketer Inc.
… mobile devices have moved to the
center

Smartphones

Connected

Wearable

Consoles
Connected Consoles

Wearable Technology
Technology

Connected Cars
Connected Cars

©2013 eMarketer Inc.
There are
quantitative
and
qualitative
measures
for this shift
Momentum in
daily time
spent is all
with mobile
as desktop
usage
plateaus
©2013 eMarketer Inc.
Mobile advertising continues to
accelerate as well
Regions outside the US will see even higher
growth rates, but from smaller bases

©2013 eMarketer Inc.
Mobile’s advance can be measured using
other proxies besides time and money

Another
indicator is
smartphone
sales to end
users, which
continue
to rise at a
brisk pace
worldwide

Twitter Hashtag – #eMwebinar
©2013 eMarketer Inc.
Shifting usage patterns around mobile
aren’t limited to the US
In many emerging markets, mobile devices
function as internet users’ first screen

©2013 eMarketer Inc.
Mobile
advertising
still lags
other
channels but
marketers
see mobile
phones and
tablets as
increasingly
important

©2013 eMarketer Inc.
Focusing on the gap between time and
dollars spent with mobile can be limiting

©2013 eMarketer Inc.
Behavioral
survey data
is only
starting to
capture the
role of
mobile
devices as
“the remote
control” for
our home
lives

©2013 eMarketer Inc.
Mobile devices have also moved to the
center of people’s work lives

Bring-your-owndevice (BYOD)
policies have
become
common,
further eroding
the already
narrow divide
between home
and work

©2013 eMarketer Inc.
New Demands
Accelerate Marketing

©2013 eMarketer Inc.
Automation: One key to greater marketer
agility, especially on the advertising side

US in the lead:
It will account
for 63% of all
programmatic
ad spending in
2013, declining
to 52% in 2017
as the rest of
the world
catches up
Twitter Hashtag – #eMwebinar
©2013 eMarketer Inc.
Marketers anticipate that increased
velocity will yield a host of benefits

Engagement
is as
important a
driver as
efficiency and
effectiveness

©2013 eMarketer Inc.
Cross-device
marketing is
another key
piece of the
puzzle

Spending is
up more than
50% from
2009–2011
levels

©2013 eMarketer Inc.
Smarter use of
data will help
marketers
respond
faster—and
better—to
business
challenges
Don’t just focus
on Big Data;
think about
shifting
emphasis to
“Smart Data”
©2013 eMarketer Inc.
One outcome:
Integration
between
channels is
increasing

Marketing
campaigns are
becoming more
interdependent
across channels
as well
©2013 eMarketer Inc.
The pressure to accelerate will continue
across the marketing spectrum

©2013 eMarketer Inc.
‘Always-On Commerce’
Turns Shopping Inside Out

©2013 eMarketer Inc.
Even if consumers aren’t consciously
shopping, they are shopping nonetheless
“Smartphone use is more or less
continuous. [It] doesn’t say anything
about whether the use has anything to
do with shopping, but it does mean that
[it has] a large part of the consumer’s
mind share during that shopping
mission. The shopping trip starts earlier
and ends later than it used to.”
—Nick Hodson, partner at Booz & Co.

©2013 eMarketer Inc.
In other words …

… shopping is about state of mind as much as
intent and physical location
©2013 eMarketer Inc.
The impact
of this
pervasive
“shopping
state of
mind” has
only begun to
be reflected
in commerce
sales
forecasts

Twitter Hashtag – #eMwebinar
©2013 eMarketer Inc.
The mobile shift is further along in more
digitally advanced markets like the UK

Mobile:
 24% of retail
ecommerce
sales in
2014
 35% in 2017

©2013 eMarketer Inc.
Tablets may generate far higher on-device
sales …

Tablets tend to be used at home when
consumers are in lean-back mode
©2013 eMarketer Inc.
… but smartphones play a privileged role
in driving always-on commerce

Smartphones serve as the fulcrum
between digital and physical retail
©2013 eMarketer Inc.
The
smartphoneled,
always-on
commerce
dynamic is
apparent
everywhere,
but
particularly
so in
Asia-Pacific

©2013 eMarketer Inc.
For example:
The highest
percentage
of internet
users to say
they
primarily
make
purchases
via mobile
were in
China and
India

©2013 eMarketer Inc.
Being always in consideration mode
means staying attuned to ads and offers

©2013 eMarketer Inc.
The next battleground will take place on
the fulfillment front

Retailers will vie to deliver physical
goods purchased online as quickly and
conveniently as consumers order them
©2013 eMarketer Inc.
Always On Means
Always Social

©2013 eMarketer Inc.
Social networking is the glue that binds
the experience of multiple device usage

©2013 eMarketer Inc.
Growth in
social
networking
is most
evident on
the mobile
devices that
unite the
device
landscape

Twitter Hashtag – #eMwebinar
©2013 eMarketer Inc.
The big shift:
People no
longer wait
until the next
day to have
conversations
around the
water cooler

©2013 eMarketer Inc.
Simultaneous media consumption is most
evident among young users—for now

Expect greater
participation in
the viewing of
TV programs via
social platforms
accessed on
mobile
devices—
regardless of
age group

©2013 eMarketer Inc.
Assume the percentage of consumers
who “just” watch TV will continue to drop

©2013 eMarketer Inc.
2014: The year marketers master the art
of engaging media multitaskers via social

This will be
reflected in
social’s
growing
share of
digital ad
spending

©2013 eMarketer Inc.
Marketers have a new imperative to
insert themselves into the conversation

“We want to be wherever the
consumers are. It’s no longer digital
marketing. It’s marketing in a digital
world now.”
—Eric Gruen, digital brand manager for
North America Fabric Care at Procter &
Gamble

©2013 eMarketer Inc.
Takeaways
 2014 will be the year marketers and sellers
reckon fully with a world of “always on”
consumers.
 With always-on consumers potentially always
available to be engaged with, marketers will
need to accelerate their messaging.
– Otherwise, they risk losing the moment to someone or
something else.

 Social media will serve as the glue that links
the experience of multiscreen usage.
– Advertisers’ tentative experiments with social will become
more confident in the coming year.
Twitter Hashtag – #eMwebinar
©2013 eMarketer Inc.
These trends create three new imperatives for marketers

Understanding each customer as
an individual.
Creating a system of engagement that
maximizes value creation at every touch.
Designing your culture and brand so
they are authentically one.

© 2013 IBM Corporation
These imperatives require blending the science with the art of marketing

Science

the study of the physical
and natural world,
especially by using
systematic observation and
experiment

Marketing

the business activity of
presenting products or
services in such a way as
to make them desirable

A necessary combination in today’s rapidly
evolving global marketplace
Source Encarta World Dictionary

© 2013 IBM Corporation
IBM continues to build out an industry leading portfolio of technologies
to enable marketers

43

© 2013 IBM Corporation
IBM provides role based solutions that are modular, integrated, and
have multiple entry points
Digital
marketers

Digital Marketing
Real-Time
Personalization

E-commerce
professionals

Customer
relationship
marketers

Omni-Channel
Engagement

Omni-Channel
Marketing
Real-Time
Personalization

Merchandisers
and sales
planners

Pricing Promotion,
Product
Optimization

Understand | Engage | Manage
Customer Analytics
© 2013 IBM Corporation
IBM is committed to help Marketing organizations
transform and build new capabilities
 Address CMO’s needs systematically and for the
long term

 Educate and influence CIOs and CEOs to help
improve marketing

Smarter Marketing

 Explain and escalate CMO’s IT agenda and needs
 Setting marketing standards through robust
technology
 Providing best practices, market insight, and
benchmarks

www.rethinkyourcustomer.com/marketing
© 2013 IBM Corporation
Q&A Session
Key Digital Trends
for 2014

Learn more about digital
marketing with an eMarketer
corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent ones you
may be interested in:
 Key Digital Trends for 2014
 UK Mobile and Tablet Users: Q3 2013 Forecast and
Comparative Estimates

Noah Elkin
You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Sponsored by:

 Programmatic Advertising: Forecast and Future
Growth Trends
 Redefining 'Mobile-Only' Users: Millions Selectively
Avoid the Desktop
 Social Media Advertising: Seven Trends for 2014
 Mobile Advertising in Retail: Tracking the Changing
Purchase Path
To learn more: www.emarketer.com/corporate
800-405-0844 or webinars@emarketer.com
©2013 eMarketer Inc.

eMarketer Webinar: Key Digital Trends for 2014

  • 1.
    December 12, 2013 KeyDigital Trends for 2014 Presented by: Noah Elkin Principal Analyst Sponsored by: ©2013 eMarketer Inc.
  • 2.
    Agenda: eMarketer seesfour key trends affecting digital marketing in 2014  No. 1: Mobile moves to the center of the multiplatform landscape  No. 2: New demands accelerate marketing to the point of instant interactions  No. 3: “Always-on commerce” turns shopping inside out  No. 4: Always on means always social Twitter Hashtag – #eMwebinar ©2013 eMarketer Inc.
  • 3.
    Mobile Moves tothe Center of the Multiplatform Landscape ©2013 eMarketer Inc.
  • 4.
    In a digitallandscape defined by an ever-expanding number of screens … Smartphones Phablet Phablets Wearable Wearable Technology Technology Social Machines Social Machines Connected Consoles Connected Consoles Ambient Surfaces Ambient Surfaces Connected Cars Connected Cars ©2013 eMarketer Inc.
  • 5.
    … mobile deviceshave moved to the center Smartphones Connected Wearable Consoles Connected Consoles Wearable Technology Technology Connected Cars Connected Cars ©2013 eMarketer Inc.
  • 6.
    There are quantitative and qualitative measures for thisshift Momentum in daily time spent is all with mobile as desktop usage plateaus ©2013 eMarketer Inc.
  • 7.
    Mobile advertising continuesto accelerate as well Regions outside the US will see even higher growth rates, but from smaller bases ©2013 eMarketer Inc.
  • 8.
    Mobile’s advance canbe measured using other proxies besides time and money Another indicator is smartphone sales to end users, which continue to rise at a brisk pace worldwide Twitter Hashtag – #eMwebinar ©2013 eMarketer Inc.
  • 9.
    Shifting usage patternsaround mobile aren’t limited to the US In many emerging markets, mobile devices function as internet users’ first screen ©2013 eMarketer Inc.
  • 10.
    Mobile advertising still lags other channels but marketers seemobile phones and tablets as increasingly important ©2013 eMarketer Inc.
  • 11.
    Focusing on thegap between time and dollars spent with mobile can be limiting ©2013 eMarketer Inc.
  • 12.
    Behavioral survey data is only startingto capture the role of mobile devices as “the remote control” for our home lives ©2013 eMarketer Inc.
  • 13.
    Mobile devices havealso moved to the center of people’s work lives Bring-your-owndevice (BYOD) policies have become common, further eroding the already narrow divide between home and work ©2013 eMarketer Inc.
  • 14.
  • 15.
    Automation: One keyto greater marketer agility, especially on the advertising side US in the lead: It will account for 63% of all programmatic ad spending in 2013, declining to 52% in 2017 as the rest of the world catches up Twitter Hashtag – #eMwebinar ©2013 eMarketer Inc.
  • 16.
    Marketers anticipate thatincreased velocity will yield a host of benefits Engagement is as important a driver as efficiency and effectiveness ©2013 eMarketer Inc.
  • 17.
    Cross-device marketing is another key pieceof the puzzle Spending is up more than 50% from 2009–2011 levels ©2013 eMarketer Inc.
  • 18.
    Smarter use of datawill help marketers respond faster—and better—to business challenges Don’t just focus on Big Data; think about shifting emphasis to “Smart Data” ©2013 eMarketer Inc.
  • 19.
    One outcome: Integration between channels is increasing Marketing campaignsare becoming more interdependent across channels as well ©2013 eMarketer Inc.
  • 20.
    The pressure toaccelerate will continue across the marketing spectrum ©2013 eMarketer Inc.
  • 21.
    ‘Always-On Commerce’ Turns ShoppingInside Out ©2013 eMarketer Inc.
  • 22.
    Even if consumersaren’t consciously shopping, they are shopping nonetheless “Smartphone use is more or less continuous. [It] doesn’t say anything about whether the use has anything to do with shopping, but it does mean that [it has] a large part of the consumer’s mind share during that shopping mission. The shopping trip starts earlier and ends later than it used to.” —Nick Hodson, partner at Booz & Co. ©2013 eMarketer Inc.
  • 23.
    In other words… … shopping is about state of mind as much as intent and physical location ©2013 eMarketer Inc.
  • 24.
    The impact of this pervasive “shopping stateof mind” has only begun to be reflected in commerce sales forecasts Twitter Hashtag – #eMwebinar ©2013 eMarketer Inc.
  • 25.
    The mobile shiftis further along in more digitally advanced markets like the UK Mobile:  24% of retail ecommerce sales in 2014  35% in 2017 ©2013 eMarketer Inc.
  • 26.
    Tablets may generatefar higher on-device sales … Tablets tend to be used at home when consumers are in lean-back mode ©2013 eMarketer Inc.
  • 27.
    … but smartphonesplay a privileged role in driving always-on commerce Smartphones serve as the fulcrum between digital and physical retail ©2013 eMarketer Inc.
  • 28.
  • 29.
    For example: The highest percentage ofinternet users to say they primarily make purchases via mobile were in China and India ©2013 eMarketer Inc.
  • 30.
    Being always inconsideration mode means staying attuned to ads and offers ©2013 eMarketer Inc.
  • 31.
    The next battlegroundwill take place on the fulfillment front Retailers will vie to deliver physical goods purchased online as quickly and conveniently as consumers order them ©2013 eMarketer Inc.
  • 32.
    Always On Means AlwaysSocial ©2013 eMarketer Inc.
  • 33.
    Social networking isthe glue that binds the experience of multiple device usage ©2013 eMarketer Inc.
  • 34.
    Growth in social networking is most evidenton the mobile devices that unite the device landscape Twitter Hashtag – #eMwebinar ©2013 eMarketer Inc.
  • 35.
    The big shift: Peopleno longer wait until the next day to have conversations around the water cooler ©2013 eMarketer Inc.
  • 36.
    Simultaneous media consumptionis most evident among young users—for now Expect greater participation in the viewing of TV programs via social platforms accessed on mobile devices— regardless of age group ©2013 eMarketer Inc.
  • 37.
    Assume the percentageof consumers who “just” watch TV will continue to drop ©2013 eMarketer Inc.
  • 38.
    2014: The yearmarketers master the art of engaging media multitaskers via social This will be reflected in social’s growing share of digital ad spending ©2013 eMarketer Inc.
  • 39.
    Marketers have anew imperative to insert themselves into the conversation “We want to be wherever the consumers are. It’s no longer digital marketing. It’s marketing in a digital world now.” —Eric Gruen, digital brand manager for North America Fabric Care at Procter & Gamble ©2013 eMarketer Inc.
  • 40.
    Takeaways  2014 willbe the year marketers and sellers reckon fully with a world of “always on” consumers.  With always-on consumers potentially always available to be engaged with, marketers will need to accelerate their messaging. – Otherwise, they risk losing the moment to someone or something else.  Social media will serve as the glue that links the experience of multiscreen usage. – Advertisers’ tentative experiments with social will become more confident in the coming year. Twitter Hashtag – #eMwebinar ©2013 eMarketer Inc.
  • 41.
    These trends createthree new imperatives for marketers Understanding each customer as an individual. Creating a system of engagement that maximizes value creation at every touch. Designing your culture and brand so they are authentically one. © 2013 IBM Corporation
  • 42.
    These imperatives requireblending the science with the art of marketing Science the study of the physical and natural world, especially by using systematic observation and experiment Marketing the business activity of presenting products or services in such a way as to make them desirable A necessary combination in today’s rapidly evolving global marketplace Source Encarta World Dictionary © 2013 IBM Corporation
  • 43.
    IBM continues tobuild out an industry leading portfolio of technologies to enable marketers 43 © 2013 IBM Corporation
  • 44.
    IBM provides rolebased solutions that are modular, integrated, and have multiple entry points Digital marketers Digital Marketing Real-Time Personalization E-commerce professionals Customer relationship marketers Omni-Channel Engagement Omni-Channel Marketing Real-Time Personalization Merchandisers and sales planners Pricing Promotion, Product Optimization Understand | Engage | Manage Customer Analytics © 2013 IBM Corporation
  • 45.
    IBM is committedto help Marketing organizations transform and build new capabilities  Address CMO’s needs systematically and for the long term  Educate and influence CIOs and CEOs to help improve marketing Smarter Marketing  Explain and escalate CMO’s IT agenda and needs  Setting marketing standards through robust technology  Providing best practices, market insight, and benchmarks www.rethinkyourcustomer.com/marketing © 2013 IBM Corporation
  • 46.
    Q&A Session Key DigitalTrends for 2014 Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent ones you may be interested in:  Key Digital Trends for 2014  UK Mobile and Tablet Users: Q3 2013 Forecast and Comparative Estimates Noah Elkin You will receive an email tomorrow with a link to view the deck and webinar recording. Sponsored by:  Programmatic Advertising: Forecast and Future Growth Trends  Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop  Social Media Advertising: Seven Trends for 2014  Mobile Advertising in Retail: Tracking the Changing Purchase Path To learn more: www.emarketer.com/corporate 800-405-0844 or webinars@emarketer.com ©2013 eMarketer Inc.