This document summarizes key digital trends for 2009, including: - Growth of online advertising despite economic downturn - Major players integrating across online/mobile/TV platforms - Rise of social media, mobile applications, and open platforms - Shift to more user-generated and social content online - Importance of conversation and reputation management for brands

1. IPG Emerging Media Lab Accelerating Marketing Innovation by Empowering Agencies and Brands 2009 Digital Trends

2. ‘ 09 Trends: Setting the Stage

3. Slow Economy Making its Mark 60% of marketing professionals planned to increase their spending on online advertising in reaction to the downturn. Even with downturned economy, online advertising is expected to grow from $24.5 billion in 2008 to $28.5 billion in 2009. The combined growth rate for online ad revenues in Q1 and Q2 among the top four US portals—Yahoo!, Google, AOL and Microsoft—was 19%. -Source, MarketingProfs -Source, eMarketer Online includes several categories: search, display (banners, rich media and video) and e-mail ad spending. Toward interactive, digital marketing Setting the Stage

5. Open Platforms Drive Ubiquity SOCIAL MEDIA Development Google’s Open Social OpenSocial defines a common API for all social applications across multiple websites. Developers can create apps that access a social network's friends and update feeds. GOAL: All social apps working across all sites. MOBILE Development Google’s Android is a software stack for mobile devices that includes an operating system, middleware and key applications. A pple opened the doors to its “App Store,” accessible through the standard iTunes interface. And within 3 days of its debut, more than 10 million applications were downloaded GOAL: One operating system for all mobile phones. Setting the Stage

6. New Consumer Reverses the Flow We used to spend 80% on distribution (“media”) and 20% on content (“production”) We are now starting to spend 80% on the content (platforms), and 20% on distribution (driving traffic) Setting the Stage Source: MRM Worldwide

7. New Hollywood Traditional Content Model is Broken Broadband Short Form Display Ads Sponsorship Hypersyndication Subscription Broadcast Setting the Stage

9. The browser is becoming the new operating system with applications, content, and the “growing pipe” feeding off it as a platform Beyond the Browser

10. Cloud Computing – Putting the Foundation in the Cloud Beyond the Browser Services, storage and applications all exist in the Internet (cloud) and a user taps into the cloud using a device. User/Businesses can start relying on the Internet for satisfying all their computer Developers are looking at browsers as a communication layer “ What we really needed was not just a browser, but also a modern platform for Web pages and applications, and that's what we set out to build.” -Google Blog Google’s Chrome + Beefed up Javascript Engines + Better stability + More extensions

12. Extensions to the Browser Before: Browser extensions added little value to your Internet experience. Now: Extensions can completely redefine it. Cooliris transforms your browser into a fully-immersive cinematic slide show Beyond the Browser

13. For individuals and brands, Web presence alone is no longer enough— now it’s about engaging customers in conversation and managing relationships online Conversation is King

18. Social Media as CRM The New ROI = Return On Involvement Advertisers must use a combination of metrics to maximize engagement analysis Source: JupiterResearch/ClickZ Social and Mobile Marketing Executive Survey (2/08), n = 238 (social marketers), US; n = 40 (social marketers spending $50K+, US) Question: What metrics do you rely on to measure the success of your social marketing efforts? (Select all that apply.) Conversation is King

19. Conversations and content are moving faster and spreading everywhere Individuals become groups that become organized units that can move mountains. Transmission Effect

20. The New Editorial Twitter has influenced the format for breaking news Live blogging of events and live mobile video are increasing speed by which news is transmitted Flixwagon, Livecast and other providers are making live mobile video broadcasting possible Transmission Effect

21. Group to Group Communication Groups each have their own personality, manners, memes, and vocabulary Groups that share members become meta groups 2009 Trends Transmission Effect

23. Brand Reputation Management Brands must have a web reputation strategy to manage web insurrections Transmission Effect

24. From Smart Signs and interactive mirrors to RFID and loyalty programs, retail is undergoing dramatic changes to become more interactive and meet consumers’ and brands’ needs. Retail Solutions Soar

25. Online Experience Influencing In-World Purchase Decisions Retail Solutions Soar Consumers’ shopping experiences are enhanced with the ability to constantly be connected to the web via mobile phone. SnapNow Photograph any retail product to receive price comparisons and peer ratings from Amazon.com Google’s mobile bar code reader Zxing (“zebra crossing”) Enables photography and decoding of barcodes to provide data about products immediately via mobile

27. Audience Measurement In Store Brands want to know who is watching and when Advances in analyzing audience data will provide ways to generate more relevant, targeted ads Retail Solutions Soar 125° 20ft Identifies any number of concurrent viewers within the field of view.

28. Pop-Up Retail Big Box retailers in small doses with new locations Retail Solutions Soar

29. The Zen Tech Warrior wants to be digitally connected, but on their terms. Conscious of their pocketbooks and the environment, they are increasingly discerning about their choice of media and technology platforms. Zen Tech Warrior

31. Single purpose applications The PEEK does e-mail, and that’s it. Time Magazine’s 2008 #1 Gadget of the Year. For $19.95/month, users have unlimited access to e-mail in an incredibly slim and easy to use handheld device Flip Video does video, and that’s it. The Flip camera captures high quality (even HD) video and makes it easy to upload to Myspace, Facebook and other sites with a built in USB-port. Some consumers are finding that single-purpose applications, all of which are incredibly easy to use, are solving their problems best and making their lives more efficient Tumblr Zen Tech Warrior

32. 2009 Trends Simplifying to Save In a down economy, consumers are using technology to save money: Cutting cable and moving to Xbox360, AppleTV, and other solutions Cutting landlines and making a permanent switch to mobile-only lifestyle Cutting down on printed invitations and announcements, moving to email and digital solutions • 60 percent of U.S. consumers intend to cut spending in at least one area of communications and media entertainment this year • 1 in 5 households are cutting their landlines Zen Tech Warrior

34. Sustainably Digital Shedworking refers to working from home in a (custom built) office space. It’s a fast growing trend that is indicative of the employee’s ability to provide content and products without the hassle of a commute and the bureaucracy of a corporation. Hydro-powered, kinetic, solar fueled; whatever the product, whatever the packaging, consumers are looking for products and brands who have an eye on all things green. Zen Tech Warrior

35. Get in the Game – Develop a Content Strategy Mobile Social Media Broadband Broadcast Digital Out of Home

36. 2009 Digital Trends What does this mean for marketers? Contact us to discuss what new trends in digital mean for agencies and brands and how you can stay ahead of the digital curve in 2009. [email_address] (including membership questions) [email_address] [email_address]