Understanding The Global Digital Marketing Landscape

Brandon Verblow

Welcome to my blog!

I joined Forrester earlier this year as an associate forecast analyst on the ForecastView team, focusing on digital marketing (DM) topics. The ForecastView team’s goal is to answer the questions “How much?” and “When?” To this end, we publish five-year forecasts that provide forward-looking, quantitative guidance around the key issues that our research analysts are discussing as well as the important trends that Forrester’s Technographics® survey data reveals. To learn how our forecasts can help you with your investment decisions, see our ForecastView overview.

On the DM forecast team, we evaluate various facets of the digital marketing space, including online display, online video, social media, paid search, email marketing, mobile advertising, and ad tech.

Our latest report, the Forrester Readiness Index: Digital Marketing, 2016, touches on many of these areas. In it, we quantify the digital marketing readiness of 55 countries across six continents based on data collected for 23 variables — ranging from display, search, and social ad spending to per-capita online traffic and video consumption to penetration rates for PC, smartphone, internet, and broadband usage to GDP growth, number of businesses, and the percentage of businesses selling online. It provides one of the most comprehensive and digestible evaluations of the global digital marketing landscape available in one place.

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Google Pitches In To Declutter The Mobile Web

Danielle Geoffroy

On their constant quest to enable users to quickly find the best answers to their questions, Google announced last week that starting in January 2017,  they will bury mobile websites where the content is blocked by intrusive interstitials. In other words, mobile websites that have pop-up ads won’t rank as high in Google’s search results.

 

We’ve all felt the pain of having to hover our finger over the  closeout sign of a large ad, before we can get to the content we set out to find. This frustrates us, and takes away from the immediacy we desire in mobile moments.

 

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Facebook Violates Rule #2 Of An Insights-Driven Business: Marry Algorithms And Expertise

Ted Schadler

Facebook can't buy a break with its newsfeeds. Every time it changes the model, somebody complains. But its latest snafu -- turning over the job to an algorithm without expert oversight is not the answer. Posting a fake story just isn't smart. It's not insights-driven; it's head-in-the-sand.

(The provenance of this image is opaque. If you own it, please let me know so I can attribute it properly.)

An insights-driven business is built differently and operates differently. As we say in our report

  • Rule #2: Marry algorithms and expertise to continuously improve outcomes. Algorithms are not a secret sauce; they are a model of the real world. If the algorithm says X and the expert says Y, then there's room to improve either the algorithm or human understanding. Innovators like Allstate Insurance (and Memorial Sloan Kettering Cancer Center) accomplish this by putting product experts (or oncologists) and data scientists in a room to continually refine their cognitive assistants. (see endnote 9)
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Google Will Attack Popup Ads On Smartphones -- Hallelujah!

Ted Schadler
We've all experienced this garbage:
 
  1. You are on your smartphone.
  2. You find a link that you hope will help you in a mobile moment.
  3. You click with the great hope that it will be exactly what you need.
  4. Some irrelevant popup ad grabs you by the arm and blocks your path.
  5. You suffer through the ad or the countdown before getting to the site. (And feel angry or bad doing it.)
  6. Now you finally find out: Does the website help or have you clicked in vain?
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Frugal Innovation Supports Customer-Obsessed Innovation

Dan Bieler

Photo: Indian By Design

The age of the customer demands that businesses drive innovation at ever faster speeds and with limited budgets. More than ever, innovation is of the essence, and innovation must be cost-effective. Frugal innovation offers an alternative approach to driving innovation as it is based on the tenet to do “more with less” in contrast to the widespread practice to increase the R&D budget. Frugal innovation:

  • Opens opportunities to cater to people “at the bottom of the pyramid.” Traditional R&D often ignores those customers with lower purchasing power. Frugal innovation specifically targets this customer segment, opening up opportunities for new revenue streams.
  • Is complimentary to traditional R&D, not a substitute. Frugal innovation will not replace traditional innovation, but it will add a new approach to drive innovation.
  • Requires a change of mindset and a different approach to innovation. The frugal innovator’s mindset sees constraints not as a disadvantage, but an opportunity. Frugal innovation supports and furthers a mindset for global innovative collaboration.
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The Demand For Industry-Specific CRM Explodes

Kate Leggett

Horizontal CRM solutions — as mature as they are  (and they have been around for 20+ years) — don't always do a good job at supporting industry-specific business processes. Consider these examples: CRM users in manufacturing need capabilities to track projects, schedules, time sheets, labor efficiencies, and equipment inventory in addition to core CRM attributes. Alternatively, a real estate professional would like to use CRM to track not only client contact information but also additional data elements such as properties, lease/sales comps, and stacking plans, which illustrate how healthy a property is in terms of tenants and leases.

So, over the years, CRM vendors have built vertical market software applications from the ground up for specific industries. Historic, heavyweight on-premises applications — like Oracle Siebel, with 21 built-on industry verticals — are giving way to newer, more agile software-as-a-service vertical offerings that offer scripted best practices. And other vendors have taken a different tactic and developed lighter-weight systems of engagement to consolidate and visualize data from disparate systems to drive better decision-making. This leaves a CRM buyer with three options to choose from:

 

CRM Type

Description

Pros

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On-Premise Hadoop Just Got Easier With These 8 Hadoop-Optimized Systems

Mike Gualtieri

Enterprises agree that speedy deployment of big data Hadoop platforms has been critical to their success, especially as use cases expand and proliferate. However, deploying Hadoop systems is often difficult, especially when supporting complex workloads and dealing with hundreds of terabytes or petabytes of data. Architects need a considerable amount of time and effort to install, tune, and optimize Hadoop. Hadoop-optimized systems (aka appliances) make on-premises deployments virtually instant and blazing fast to boot. Unlike generic hardware infrastructure, Hadoop-optimized systems are preconfigured and integrated hardware and software components to deliver optimal performance and support various big data workloads. They also support one or many of the major distros such as Cloudera, Hortonworks, IBM BigInsights, and MapR.  As a result, organizations spend less time installing, tuning, troubleshooting, patching, upgrading, and dealing with integration- and scale-related issues.

Choose From Among 8 Hadoop-Optimized Systems Vendors

Noel Yuhanna and me published Forrester Wave: Big Data Hadoop-Optimized Systems, Q2 2016  where we evaluated 7 of the 8 options in the market. HP Enterprise's solution was not evaluated in this Wave, but Forrester also considers HPE a key player in the market for Hadoop-Optimized Systems along with the 7 vendors we did evaluate in the Wave. 

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Retailers Are Prioritizing The Wrong Digital Technologies In Brick And Mortar Stores

Lily Varon

Retailers are inundated with promising technologies to revolutionize the in-store shopping experience for consumers. The problem? Our research shows that most of these experiences today miss the mark and may actually make the customer experience more complex or confusing.  On the other hand, retailers are seeing significant, and measureable, value from technologies that directly improve store operations.

Forrester has published a two-part TechRadar™ defining the current state, business value, and long-term prospects for technologies in retail stores: one for those focusing specifically on customer experiences and the other on technologies focusing on operations. It’s still early days for both of these technology categories but we found that:

  • Operations technologies generally already offer significant business value to retailers. Of the 14 technologies we evaluated,nearly half are on track to provide significant business value for retailers. Retailers are finding that these technologies help their physical store teams and operations perform better and become more efficient by gleaning customer insights and spurring real-time action by store staff.
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How To Solve The Digital Dilemma

Nigel Fenwick

There's a fundamental difference between companies that apply digital technology as a bolt-on (frequently adding an eCommerce site, social media, or customer mobile apps) and those that take a more holistic approach to transforming the way the company uses technology to deliver better customer outcomes and drive revenue. 

Transformers are more likely to succeed because they recognize their customers' expectations are evolving. The executives in these companies redesign their business to evolve alongside the expectations of their customers. These companies are obsessed with helping their customers achieve their desired outcomes, and they continuously explore new ways to do that profitably. This is why transformers are destined to become digital predators while bolt-on companies are more likely to become digital prey.

One of the distinguishing characteristics of many transformers that caught my attention back in 2013 remains a challenge for many companies in 2016: delivering digital operational excellence (DOX). DOX focuses on the ability to use emerging technologies to change operational aspects of the business (those not directly touching the customer) to create business agility in service of the customer. Why is this important? Because without the ability to evolve quickly, your company will fail. This is the digital dilemma.

I use this simple equation to illustrate my point:

The Digital Dilemma. Formula: Perceived Value equals experience over expectations. Source: Forrester Research @NigelFenwick

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Mobile (Commerce) Executive Survey: Please take it!!! We'll Share The Results!

Julie Ask

Each year Forrester fields an Executive Survey to understand and benchmark enterprise mobile initiatives. This year, we are updating the survey to help business executives not only to benchmark and mature their approach to mobile but also to help them integrate mobile into their digital initiatives more  holistically. (A marketer’s version of this survey will be released later this year).

Creating a strategy and building an operation to use mobile to win, serve and retain your customers is a complex task. Integrating mobile into a broader corporate strategy is even more complex. The survey results will help firms understand what strategies, technologies and operational elements (e.g., organization, process, metrics, talent, etc.) should be in place given their goals for mobile. All answers will be treated anonymously and only used in aggregate.

For your efforts, we will share a free copy of the topline survey results.

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