Martech and the terribly complicated future of marketing

the terribly complicated,
needlessly technical
future of marketing

Agenda
• Energetic introduction
• How brands are made
• How brands are managed
• Digital transformation
• Microservices and APIs
• Vertical competition
• Digital everything
• Artificial intelligence
• Response from the Industry
• Long-winded conclusion

A look at the impact of emerging technologies on the
business of marketing

https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update

CX and brands
With all of this available choice, brands have
never been more important—or more easily
tuned out by customers.
While the primary value of firms in the industrial
age was derived from how well they managed
hard assets such as factories, product lines and
distribution channels, the information age
rewards and punishes firms based on how well
they manage brands.
The path to 2020: Marketers seize the customer experience (Economist 2017)

Behaviour trends
Digital
Democratisation
Trend:
As people globally have gained greater access to
internet (primary driven by mobile) they also have
greater access to the best digital experiences and
services e.g. Facebook, Google, Apple, Uber.
These tech giants have created an expectation for all
brands to offer similar digital experiences
Euromonitor 2017: Introducing the 2017 digital consumer index

Behaviour trends
Increase in
Consumer Power
Trend:
Access to more information has created a more
critical, selective and powerful consumer.
Brands no longer have the power to influence an
audience, rather they look towards other more trusted
sources such as independent car reviews, peer
recommendations and social chatter

Behaviour trends
Required
Consumer Centricity
Trend:
Connected consumers have access to the products
and services when, where and at a price that suits
their needs.
Due to this access, we must adapt our brand to the
context of the consumer, where the consumer makes
the call of when they need the brands input in their
journey

Behaviour trends
Connected through
Internet of Things
Trend:
Due to the rising number of internet connected devices
and the lowering of the costs these devices, people
now have many more ways of connecting to brands
and services. This increases the utility and lowers the
friction within an ecosystem

Behaviour trends
Frictionless
Consumption
Trend:
Consumer behaviour is shifting towards not wanting to
search for relevant information but having it curated for
you and brought to you

Empowered customers
Customers typically show up at a brand’s front
door—physical or virtual—already well-educated
about what a brand potentially offers them. This
changes how you position marketing resources
and assets. “
You’re no longer marketing AT people,”
“You’re influencing them in an environment
where they’ve already had a chance to form a
view.”

5 digital disruptions expected
1. Digital transformation
2. Microservices & APIs
3. Vertical competition
4. Digital everything
5. Artificial intelligence

Consumer digital transformation is mirrored by
internal digital transformation

Their whole end-to-end
experience is the product
The five things that make this transformational are:
• All of these touchpoints are either digital or digitally-supported.
• Orchestrating these touchpoints is inherently a cross-organizational mission.
• Marketing is increasingly at the center of that orchestration.
• Marketing is embedded in the product (and, vice versa, product in the marketing).
• The resulting end-to-end experience for customers is how companies are disrupting their competitors
— e.g., Uber isn’t the car ride, it’s the whole seamless experience.

While every touchpoint clearly has its own characteristics
and requires its own expertise there needs to be a common
foundation underneath them all:
•Experience Design — concepts and principles that span all
touchpoints for the brand
•Systems & Services — common functionality and
orchestration across all touchpoints
•Data & Models — underlying data, normalized for
customers and business operations
This is more about platform thinking. Platforms in the sense
of common technology foundations and organizational
principles that many different things can be built upon

CMOs and the Spark to drive Growth (Deloitte 2017)

A digital world demands a digital company

As more systems talk to one another, more
opportunities for digital enablement emerge

The mash-up possibilities of APIs have inspired an explosion of
innovation.
Partners and customers can now leverage these machine
interfaces to businesses to drive their own digital transformation

This is digital transformation in a company’s
internal ecosystem

The competition for the consumer is accelerating and
consolidating

The most powerful “competitor” in vertical competition is
one who has an exclusive gateway to the customer. If
you want to reach customers through their channel or
touchpoint, you must agree to their terms — or forgo
access.

battle for the consumer
For a large scale example of vertical
competition dynamics in digital
channels, look at the incredible
power wielded in the Chinese
Internet market by Tencent, Alibaba,
and Baidu.
They control the interface — and
data — of the vast majority of
consumers in that market.
Marketers who want to reach those
buyers digitally, must do it through
their marketing solutions, such as
Alibaba’s Uni Marketing suite or One
Tencent’s integrated marketing
services.

battle for the consumer
The most common Western example is the duopoly of Google and
Facebook in digital advertising. 63.1% of all advertising dollars in the
US went to those two companies — and their portfolio of sites, such as
YouTube and Instagram.

Facebook is also getting ahead of most the major trends media
and marketing analysts see as shaping the future of content.
Facebook already dominates the messaging app marketplace
with Messenger and WhatsApp. Same goes for digital video,
which has exploded on Facebook’s native video player (though
not without controversy).
With Facebook M, the company is a major player in the AI arms
race. Facebook also announced plans for a platform where
developers can build bots for Messenger. The last part of that
dominance is augmented reality and virtual reality. Facebook has
the Oculus Rift; Gear; and these unnamed AR Glasses, which
essentially look like Google Glass.
https://contently.com/strategist/2016/04/12/facebook-plans-dominate-digital-communication-next-10-years/

A recent entrant
Amazon is making brazen new
moves into self-serve
programmatic advertising.
Amazon’s pitch to brands and
agencies is that it is able to create
a “total wallet” perspective —
actually figure out what people are
searching for with what they’re
buying.
https://thenextweb.com/contributors/2018/07/01/inside-amazons-plan-to-dominate-advertising-business-in-2019/

The gatekeepers will become an even more important channel in our
marketing mix. Figuring out how to work with the gatekeepers to make
sure our content breaks through the algorithm will be a key concern
moving forward.

Vertical competition opens up more integrated
client interfaces but also create walled gardens

we’re exactly half-way, sorry not sorry.

The places where brands are made and
how they need to be managed continue to
increase

https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update (Statista 2017)

This creates a challenge for managing our brand building efforts

• Web — must work on desktop/laptop, tablet, smartphone, etc.
• Mobile — native apps, SMS (not dead yet!), AR/VR experiences, etc.
• Beacon — triggered and geolocation-based mobile experiences
• Chatbots — screen-based and voice-based, across a variety of devices
• Wearables — smart watches and more purpose-specific wearables
• AR/VR glasses and headsets — from Google Cardboard to Oculus and HoloLens
• Connected TVs — with an explosion of OTT content and services
• Connected cars — Android Auto and Dash are two platform examples
• Digital out-of-home signage and digital kiosks — including augmented reality
features
• APIs as a digital interface for citizen developers with tools like IFTTT
• New point-of-sale experiences — Amazon Go is an example of how far this can go

conversational interfaces
Chatbots are a much more functional kind of marketing — offering
consumers service and utility — as way to reach consumers, rather
than advertising.
But a good chatbot makes it easier for consumers to get what they
want from a business on demand — information, support, and
increasingly even purchases.
Indeed, 2/3 of US millennials say that they are likely to purchase
products or services using a chatbot.

The development of virtual assistants will
enhance the customer experience by reducing
search times and personalising purchases.
At the same time, the search control of
gatekeepers will grow, consolidating their traffic
acquisition power, giving them greater access to
consumer data and enabling more precise
consumer targeting.
Travel distribution - The end of the world as we know it?

More client interfaces opens up opportunities for
“data first” or “service first” design, creating new
ways to bring our brand to life

AI grows the speed and complexity of
the business

A recent study by Resulticks found artificial intelligence to be
the most over-hyped term in marketing today.

https://www.smartinsights.com/managing-digital-marketing/managing-marketing-technology/opportunities-using-artificial-intelligence-sales-cycle/

Artificial intelligence
Most of the use cases they describe are powered by one of three kinds of AI:
1. Machine learning
2. Propensity modeling
3. Natural-language processing (NLP)
Where things get interesting with chatbots — their differentiation and competitive advantage — is in the
“actions” and “information sources” pieces of the equation. What data and services are unique to your
business? That’s where AI shines. This can’t be overemphasized:

AI applications
1. Search
2. Recommendation Engines
3. Programmatic Advertising
4. Marketing Forecasting
5. Speech / Text Recognition
https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/

AI: search
Advanced search technologies are now relatively
mainstream, allowing any small eCommerce
stores to have search that goes beyond simply
matching keywords
Data-as-a-Service companies make it easier than
ever to draw from search data from other larger
sources
Software to detect common misspellings is now
more commonplace

AI: recommendation engines
A recommendation engine can pull from reams of nuanced
data in order to draw conclusions from behaviors, actions
and other inputs.
Netflix isn’t merely taking into account what movies a
person has watched, or what ratings they give those
movies – they’re also analyzing which movies are watched
multiple times, rewound, fast-forwarded, etc…
These myriad behaviors, when correlated and assessed
over millions of other users, help to coax out the best
recommendations.

AI: programmatic advertising
Programmatic ads bring a tremendous amount of efficiency to bear on the
“inventory” of website and app viewers.
Platforms like Google and Facebook have set the standard for both efficient
and effective advertising,

AI: marketing forecasting
One of the most straight-forward marketing applications of
business intelligence data lies in it’s ability to aide in
predictions, a capability much enhanced by developments
in AI.
Because of the (generally) high volume and quantifiable
nature of marketing data (clicks, views, time-on-page,
purchases, email responses, etc…), models can often be
trained to help companies continuously improve marketing
efforts

AI: speech recognition
While chatbots and natural language processing haven’t
made their way into the marketing departments of most
businesses, the applications from the largest and hottest
tech companies are making it clear that there’s a bigger
trend ahead.

AI opportunities
1. Image Recognition - “search” for products (or similar products) by snapping a photo
2. Customer Segmentation - optimize communications by continually learning from user behavior
3. Content Generation - a significant portion of sports and finance-related articles are written by machines, not by
humans. Expect more of that.

AI grows the speed and complexity of business, it
powers more interfaces which collect more data

67% of CMOs interviewed reported a cross-organizational
mandate on growth and/or customer experience.

Technology Is Critical To
Customer Obsession
As touchpoints multiply and customer addressability increases, B2C marketers must use marketing
technology to understand a customer’s context at the time of interaction.
Make strategic tech investments that emphasize the integration of data, content, and work ows to deliver
consistent, targeted customer interactions throughout the customer journey.

Technology Maturity Derives from
Customer Insights
Marketers must embed customer insights into their marketing technology and processes. Why? Building
a mutually beneficial relationship with a customer depends on a firm’s ability to capture, integrate,
analyze, and act on customer insights in context.

The rise of the marketer
86% of CMOs and senior marketing executives believe they will own the end-to-end customer
experience by 2020.
Interviews reveal that from now through 2020, CMOs will reorganise their departments around
personalised customer experiences as a core strategy for creating and growing the value of
brands.

broader interest
Today, the primary task of CMOs is to deeply understand
• Customer buying behaviour and intent,
• The context of where someone is in their decision journey;
• Be able to predict what they’re most likely primed to do next; and
• Be ready to influence them at the right moment.
By 2020, more marketers expect they will interact directly with their customers through technology and
personalisation than interact indirectly with their customers through media and advertising.

CMOs and the spark to drive growth (Deloitte 2018)
• Chief storyteller, navigating the path to bridge the
brand with the business.
• Key stakeholders in technology stack innovation
broader roles

CMOs and the spark to drive growth (Deloitte 2018)
broader skillset
Combined with well-honed skills in brand and content,
intelligence is creating the foundation for marketers’ growth
plans, but in order to evolve and accelerate, marketers
should add to this list, taking the opportunity to add new
skills to enhance the growth agenda.

Technology excellence is closing the gap as a top
strategic marketing goal from now to 2020

Combining operational with
technical skills
The survey and interviews show that a greater portion of a CMO’s success is starting to hinge on
developing and maintaining a single, best version of customer truth for the entire organisation to use.
At the same time, CMOs are in the midst of reorganising their departments around data and analytics as
much as content and media channels.

The new model for brand building is not based
solely on a “Big Idea”
More CMOs are focused on data and analytics-
fuelled “Big Capabilities”

hang in there, we’re almost done

The future of marketing is good storytelling built on
technological expertise

How are we going to
manage growing number
of consumer
experiences?
New technologies, new platforms, new ways
of sharing, new businesses, new expectations.

How do we build for the
AI economy?
What is our goals with data, what do we need
to operationalise it for AI?

How do we manage our
tech investments?
What do we invest in, at the expense of what?

Martech and the terribly complicated future of marketing

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