Route to 2015

1. Route to 2015 2. Time has ChangesThe average CMO is just shy of 50 years old, learned their art two decades agoThen, the web was a novelty and advertising was mostly…
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  • 1. Route to 2015
  • 2. Time has ChangesThe average CMO is just shy of 50 years old, learned their art two decades agoThen, the web was a novelty and advertising was mostly mass-communicationThe aim was to ‘raise awareness,’ ‘drive consideration,’ ‘create purchase intent.’Worked on a one-way relationship done to the consumerBut now, people are consuming media everywhere – TV, online, mobile – sometimes simultaneously.This shift has edited the CMO’s job, forced him to toss the MBA textbooks and learn on the job.
  • 3. “People don‟t want to bebludgeoned with broadcasts.They want, and expect,something more sophisticated,more considerate.”
  • 4. Glimpse of 2015•We’ll get the web anywhere and everywhere•There will be over 10 billion mobile subscribers•300 million internet-enabled televisions•Increased appetites for non-traditional content, with half our screen time spent on socialnetworks, UGC, citizen journalism and blogs.•Dollars will go where the eyeballs are: 40 percent of spend will go to ‘digital’•A $50bn global market today, growing more than 20 percent a year•The funding model for professional content will change: lots of lean, niche professional content willdominate, alongside less of blockbuster content•Clients will migrate to a handful of media and creative agencies that invest in differentiating digitalcapabilities
  • 5. Mobile money will be thenorm: devices will enabletwo thirds ofpurchases, and pay for half
  • 6. All retailers will go mobileCouponing, circular spending and formats will migrate, with offers that are moretargeted, personalized, and accountableNew mobile services will spring up that, knowing what store people are in, provide price and availabilityon inventory without being askedPricing transparency will disrupt traditional retailers so much that ‘good service’ will once again becomea differentiating retail factor.
  • 7. Shopping will be Changed, ForeverWireless payment possibilities will change shopping forever – for buyer and sellerPeople will be able to search for products and check for local offers on their phone,They will visit the store and use their near field communication (NFC)-enabled device to payA new class of services will emerge to facilitate offers, payments and payment clearanceMajor credit card companies will participate, but are not guaranteed to winA PayPal of the mobile space may emerge
  • 8. From 80 percent „push‟ to80 percent opt-in, and two-way
  • 9. From Push to Opt-inOne-way participation in content will decline to under 20 percentThe consumer will gain even more control and choiceTechnology is already empowering them to skip ads, or micro-pay for content, or opt outMost media is enabling consumers to contribute and comment on their own termsFar fewer trust advertisements will be visibleThe consumer will increasingly rely on such ‘social’ branding and friend recommendationsBrands that build web services that foster community and loyalty gain equityThose that rely solely on price and selection fadeAccording to Erik Qualman, founder of Socialnomics, 78 percent of consumers trust recommendations
  • 10. Localization will be the KeyThe deluge of information could drown the consumerIntermediaries will build business models on curating content and facilitating choices.Tomorrow’s services help answer questions about complex, value-added products and servicesThe local and personal becomes more important
  • 11. Real-time will rule:dominating socialsearchrank, pricing, optimization
  • 12. The Continuous ImprovementWe will move from just recording data to modifying the system in real timeBefore, you’d run TV ads, analyze, and six-to-nine-months down the road you could change strategyNow you can run 1,000 different ad types to 1,000 different demographics, then measure and iterate
  • 13. Real time Display will BoomThe demand for real-time information and capabilities will continue and increaseOld, non-optimizable formats will go by the wayside.Display will boom, as real-time bidding becomes possible, making every campaign mutable-by-the-moment, enabling ad buyers to tailor bids, impression by impression, across a wide range of ad spaceHalf the ads targeted to particular audiences will use real-time bidding
  • 14. “We will move from justrecording data tomodifying the system inreal time: continuousimprovement.”
  • 15. Digital Tipsheet: The Four Bs
  • 16. BE FOUNDSearch is still the killer app.It’s more location-based, personalized, visual and real-time than everRoy’s Restaurants introduced hyper local ads, delivering clickable, down-to-the-block level informationabout a business at the right place and at the right moment – and got an 800 percent ROI on theiradvertising investment
  • 17. BE ENGAGINGYou could be dull in another era. Not this one. For creativity, look at American Express mastering the art of the live stream – a newly potent medium.Their live-streamed concerts, ‘Unstaged: An Original Series from American Express,’ created anabsorbing environment on the web and in the arena, engaging users with the music of Arcade Fire andJohn Legend – and with their brand
  • 18. BE RELEVANTReal-world, real-time relevance matters more than everA Google client in the auto insurance business uses click-to-call so that when a potential customersearches their mobile phone for car insurance, the company shows them an ad that can immediatelyconnect the customer to its call center and begin the application process on the spotThe consumer, right there on the lot, could get their insurance before they drive away
  • 19. BE ACCOUNTABLEFord has identified five key buying actions based on closely measured online behavior.If someone configures a car online, Ford now knows they are more likely to buy one.The car company uses this information to target digital advertising, generating high-value leads andtest-drive registrations for its dealers.Unlike traditional local media, Ford can measure the exact return on this investment.Accountability pays
  • 20. Source:Route to 2015Mr. Dennis WoodsideGoogle’s Senior Vice President of Americas Sales
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