Digital Trends Highlights
December 8, 2009




          COPYRIGHT 2009 RESOURCE INTERACTIVE. PROPRIETARY AND CONFIDENTIAL.
More than 3.5 billion          25% of Americans
minutes are spent on        watched a short video
Facebook each day            on their phone in the
worldwide.                             last month.
Facebook, 2009                            Solutions Research Group, 2009




Over 18 million twitter    By 2020, more content
users in the U.S.            will be consumed by
 Twitdir, 2009
                           mobile devices than all
                                    other devices.
900,000: average             m-metrics, 2009 Mobile Commerce Landscape

number of blogs posted
in a 24 hour period.         More than 25% of the
 Technorati, 2009
                          search results on Google
Hulu streams grew 6x
to 373 million YOY,          brands, are consumer
April 2009.                    generated content.
                                               Nielsen Buzz Metrics, 2008
 Nielsen, 2009
a new consumer journey
: Impact of traditional advertising at the onset of the consumer journey has declined
: Explosion of influential consumers         icitizens    shaping perceptions
: Marketing and media must be fundamentally transformed to be cross-channel,
  participatory, interactive, 2-way O.P.E.N.


                                        View
                                      parenting
                                        video

                                                                                              Rate &
                                                                                              review
                                                                                 Share        product
         Read a                                                                experience
                                                         Download
          blog                                            mobile
                                                          coupon
                                                                    Purchase                      Write a
                                                    Join a           online                        blog
                                                  community




                  Talk to
                  friends




       LISTEN                 CREATE           FACILITATE                SUPPORT            REENGAGE &
      & LEARN               CONNECTIONS      PARTICIPATION              PURCHASE             EMPOWER
the love triangle b2c and b2we
how does your brand connect, enable, add value?
the web is projected to influence 50%
    of offline sales by 2012
              TOTAL SALES (millions)




                                                                                     Offline Sales


                                                                                     Total Online
                                                                                       Impact
                                                                              50%
                                                                       48%
                                                         45%    47%
                                              42%
                                       38%                                           Offline Sales
                                                                                     Influenced
                                                                                     by Online



                                                                                     Online Sales

                                       2007       2008   2009   2010   2011   2012


Jupiter: US Online Retail Forecast, 2007 - 2012
2012: web significant growth contributor
               Web as a % of total                             Web as a % of total sales
                         SALES                                        GROWTH
                              7%*
                              11%*
                              ONLINE
                               ONLINE

                                                                            43%
                                                                            ONLINE
                                                               57%
                    89%
                    93%                                        OFFLINE
                    OFFLINE

   *These %s are deflated by large categories with extremely
   low online penetration such as autos and food


Source: Forrester US eCommerce Forecast: 2008-2012
disparity between time spent online
 and internet ad spending




               *Note: consumer media time does not include time spent using a cell phone,
               watching DVDs or playing video games.



Source: Forrester Research, January 4, 2008
WORLDVIEW OF A           WORLDVIEW OF AN
 CLOSED BRAND               OPEN BRAND
                            Fosters Communities
   Targets Consumers
                               of Consumers

      Monologue              Dialogue / Trilogue

      Awareness                 Engagement

         Push                       Pull

Guarded Communications   Transparent Communications

 Created by Marketers    Co-created With Consumers

  Brand Management           Brand Stewardship
On-Demand               Personal                         Engaging      Networked


                                     Defining Traits of   O.P.E.N.
• Efficiency          • Acknowledgement             • Participation   • Self-expression
• Ease                • Dialogue                    • Belonging       • Ego gratification
• Control             • Customization               • Immersion       • Portability
• Findability         • Privilege                   • Entertainment   • Community
• Instantaneousness   • Popularity                  • Inspiration     • Meaningful change



             A strategic framework to fuel relevant experiences for
            the social-web empowered consumer and communities.
On-Demand                      Personal                     Engaging                     Networked

                             Facebook Fan Pages                                        Facebook Fan Pages

Microblogging                Microblogging                                             Microblogging

                             Social Network Integration   Social Network Integration   Social Network Integration

Interactive Products         Interactive Products         Interactive Products

                             Crowdsourcing                                             Crowdsourcing

Mobile Branded Experiences                                Mobile Branded Experiences

Social Shopping              Social Shopping              Social Shopping              Social Shopping

Mapping/Location Awareness   Mapping/Location Awareness                                Mapping/Location Awareness

mCommerce                    mCommerce

                                                          Augmented Reality
William Gibson, Author
1. Microblogging
Ashton Kutcher and Ellen Degeneres
combined have more Twitter followers
than the population of Ireland,
Norway, or Panama.
                         Twitter & World Population Data
earned more than $2 million in revenue
at @DellOutlet, attributed directly to
our Twitter activity.
                           Direct2Dell Blog, June 2009
Twitter.com




              Tweetdeck
Dell



                Zappos



   Home Depot




                Starbucks



Jet Blue
Dell



       Zappos
Microblogging: Opportunities
• Listen in on discussions about your brand, industry, etc.

• Deliver promotions, special opportunities, etc.

• Support your product and services

• Engage customers in a two-way conversation
2. Interactive Products
 Bridging the physical and digital worlds
By 2020, more content will be
consumed by mobile devices than
all other platforms PC included.
                   Pew Internet & American Life Report
Barnes & Noble   Alli   ShopSavvy Android App
Interactive Products: Opportunities
• Enhance shopability and deliver product compatibility
  recommendations.

• Create unique and richer connections between products
  and digital experiences.

• Connect print advertising, OOH to digital.

• Integration of location information, time, profile, etc.
3. Mobile Branded Experiences
         A new constant conduit
More than 2 billion applications
downloaded since the App Store
opened in mid-2008.
                       Fierce Mobile Content
Blackberry Storm                     iPhone App Store




                   Palm Pre




                                                        iPhone



                              Android App Store
Ralph    Kraft   Chanel   Charmin
Lauren
Sherwin Williams COLORsnap iPhone App
Mobile Branded Experiences:
Opportunities
• Deliver rich, highly engaging content.

• Can take advantage of hardware functionality (GPS,
  camera, video, etc.).

• Participate in sponsorships of existing
  platforms/experiences.

• Can be directly monetized.
4. Social Shopping
  Participatory, engaging, viral.
Now with connective technologies like
Facebook Connect, Google FriendConnect,
and OpenID, consumers will now be able to
see reviews, experiences, and critiques from
people they actually know and trust.
                            Jeremiah Owyang, Forrester Research
thisnext




Kaboodle
                      JanSport
Off the Wall
Off the Wall
Off the Wall
Off the Wall
Social Shopping: Opportunities
•
    graph.

• Increase sales by allowing time-shifted and real-time
  friend approval.

• Build shopping experiences into major social networking
  platforms.

• Mirror physical group shopping experiences in the digital
  realm.
5. Augmented Reality
     The next big thing?
Interaction is no longer simply a face-
to-screen exchange, but dissolves itself
in the surrounding space and objects.
                                Wired, October 2009
Lego




       Ray-Ban
MIT Sixth Sense
Augmented Reality: Opportunities
• Reinvigorate print advertising and point of purchase.

• View products in 3 dimensions (and with


•
    interactions, wayfinding, purchase decisions, etc.
Get personally involved. Sign up for some of these services
(Twitter, Facebook, etc.) , try out new technologies.
Think about your relationship with your customers. Where
are your shortcomings, your pain points? How could your
relationship be enhanced by being more O.P.E.N.? How
could this effect your business goals?
Which trends or technologies help you achieve those
goals?
Set up a test and learn activity or pilot.
Measure your success.
THANK YOU.

Trends Presentation for IMS

  • 1.
    Digital Trends Highlights December8, 2009 COPYRIGHT 2009 RESOURCE INTERACTIVE. PROPRIETARY AND CONFIDENTIAL.
  • 2.
    More than 3.5billion 25% of Americans minutes are spent on watched a short video Facebook each day on their phone in the worldwide. last month. Facebook, 2009 Solutions Research Group, 2009 Over 18 million twitter By 2020, more content users in the U.S. will be consumed by Twitdir, 2009 mobile devices than all other devices. 900,000: average m-metrics, 2009 Mobile Commerce Landscape number of blogs posted in a 24 hour period. More than 25% of the Technorati, 2009 search results on Google Hulu streams grew 6x to 373 million YOY, brands, are consumer April 2009. generated content. Nielsen Buzz Metrics, 2008 Nielsen, 2009
  • 3.
    a new consumerjourney : Impact of traditional advertising at the onset of the consumer journey has declined : Explosion of influential consumers icitizens shaping perceptions : Marketing and media must be fundamentally transformed to be cross-channel, participatory, interactive, 2-way O.P.E.N. View parenting video Rate & review Share product Read a experience Download blog mobile coupon Purchase Write a Join a online blog community Talk to friends LISTEN CREATE FACILITATE SUPPORT REENGAGE & & LEARN CONNECTIONS PARTICIPATION PURCHASE EMPOWER
  • 4.
    the love triangleb2c and b2we how does your brand connect, enable, add value?
  • 5.
    the web isprojected to influence 50% of offline sales by 2012 TOTAL SALES (millions) Offline Sales Total Online Impact 50% 48% 45% 47% 42% 38% Offline Sales Influenced by Online Online Sales 2007 2008 2009 2010 2011 2012 Jupiter: US Online Retail Forecast, 2007 - 2012
  • 6.
    2012: web significantgrowth contributor Web as a % of total Web as a % of total sales SALES GROWTH 7%* 11%* ONLINE ONLINE 43% ONLINE 57% 89% 93% OFFLINE OFFLINE *These %s are deflated by large categories with extremely low online penetration such as autos and food Source: Forrester US eCommerce Forecast: 2008-2012
  • 7.
    disparity between timespent online and internet ad spending *Note: consumer media time does not include time spent using a cell phone, watching DVDs or playing video games. Source: Forrester Research, January 4, 2008
  • 8.
    WORLDVIEW OF A WORLDVIEW OF AN CLOSED BRAND OPEN BRAND Fosters Communities Targets Consumers of Consumers Monologue Dialogue / Trilogue Awareness Engagement Push Pull Guarded Communications Transparent Communications Created by Marketers Co-created With Consumers Brand Management Brand Stewardship
  • 9.
    On-Demand Personal Engaging Networked Defining Traits of O.P.E.N. • Efficiency • Acknowledgement • Participation • Self-expression • Ease • Dialogue • Belonging • Ego gratification • Control • Customization • Immersion • Portability • Findability • Privilege • Entertainment • Community • Instantaneousness • Popularity • Inspiration • Meaningful change A strategic framework to fuel relevant experiences for the social-web empowered consumer and communities.
  • 10.
    On-Demand Personal Engaging Networked Facebook Fan Pages Facebook Fan Pages Microblogging Microblogging Microblogging Social Network Integration Social Network Integration Social Network Integration Interactive Products Interactive Products Interactive Products Crowdsourcing Crowdsourcing Mobile Branded Experiences Mobile Branded Experiences Social Shopping Social Shopping Social Shopping Social Shopping Mapping/Location Awareness Mapping/Location Awareness Mapping/Location Awareness mCommerce mCommerce Augmented Reality
  • 11.
  • 12.
  • 13.
    Ashton Kutcher andEllen Degeneres combined have more Twitter followers than the population of Ireland, Norway, or Panama. Twitter & World Population Data
  • 14.
    earned more than$2 million in revenue at @DellOutlet, attributed directly to our Twitter activity. Direct2Dell Blog, June 2009
  • 15.
    Twitter.com Tweetdeck
  • 16.
    Dell Zappos Home Depot Starbucks Jet Blue
  • 17.
    Dell Zappos
  • 18.
    Microblogging: Opportunities • Listenin on discussions about your brand, industry, etc. • Deliver promotions, special opportunities, etc. • Support your product and services • Engage customers in a two-way conversation
  • 19.
    2. Interactive Products Bridging the physical and digital worlds
  • 20.
    By 2020, morecontent will be consumed by mobile devices than all other platforms PC included. Pew Internet & American Life Report
  • 21.
    Barnes & Noble Alli ShopSavvy Android App
  • 22.
    Interactive Products: Opportunities •Enhance shopability and deliver product compatibility recommendations. • Create unique and richer connections between products and digital experiences. • Connect print advertising, OOH to digital. • Integration of location information, time, profile, etc.
  • 23.
    3. Mobile BrandedExperiences A new constant conduit
  • 24.
    More than 2billion applications downloaded since the App Store opened in mid-2008. Fierce Mobile Content
  • 25.
    Blackberry Storm iPhone App Store Palm Pre iPhone Android App Store
  • 26.
    Ralph Kraft Chanel Charmin Lauren
  • 27.
  • 28.
    Mobile Branded Experiences: Opportunities •Deliver rich, highly engaging content. • Can take advantage of hardware functionality (GPS, camera, video, etc.). • Participate in sponsorships of existing platforms/experiences. • Can be directly monetized.
  • 29.
    4. Social Shopping Participatory, engaging, viral.
  • 30.
    Now with connectivetechnologies like Facebook Connect, Google FriendConnect, and OpenID, consumers will now be able to see reviews, experiences, and critiques from people they actually know and trust. Jeremiah Owyang, Forrester Research
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
    Social Shopping: Opportunities • graph. • Increase sales by allowing time-shifted and real-time friend approval. • Build shopping experiences into major social networking platforms. • Mirror physical group shopping experiences in the digital realm.
  • 37.
    5. Augmented Reality The next big thing?
  • 38.
    Interaction is nolonger simply a face- to-screen exchange, but dissolves itself in the surrounding space and objects. Wired, October 2009
  • 39.
    Lego Ray-Ban
  • 41.
  • 42.
    Augmented Reality: Opportunities •Reinvigorate print advertising and point of purchase. • View products in 3 dimensions (and with • interactions, wayfinding, purchase decisions, etc.
  • 43.
    Get personally involved.Sign up for some of these services (Twitter, Facebook, etc.) , try out new technologies. Think about your relationship with your customers. Where are your shortcomings, your pain points? How could your relationship be enhanced by being more O.P.E.N.? How could this effect your business goals? Which trends or technologies help you achieve those goals? Set up a test and learn activity or pilot. Measure your success.
  • 44.