Well-Established Digital Channels Should Be Top Priority For Shopper Marketers In 2012

Tracy Stokes

Shopper marketing is going digital, providing shopper marketers with a plethora of new high-buzz technologies, devices, and platforms to communicate messaging, promotions, or content to their shoppers along their path to purchase. But with limited budgets, and such a wealth of options, which ones should they choose? To help shopper marketers prioritize their technology investments in 2012 and beyond, my colleague Cory Madigan and I evaluated 17 digital tools for using Forrester’s TechRadar™ methodology. The highlight trends reveal that:

  • Cool isn’t necessarily critical . . . yet. Social networking pages, interactive displays, and QR codes get a lot of attention in the marketing world, but we found that in terms of shopper marketing utility, real shoppers aren’t quite as smitten. The opportunity is there, but lack of scale, measurement, and clear value for the consumer has limited the traction of many of the more talked-about technologies in the digital shopper marketing arsenal.
  • The digital oldies are still the ROI goodies. When it comes to shopper utility, consumers and marketers still rely most on brand websites, content that brands create for specific retailers, and email to deliver the value they seek. Rather than being replaced by new technology, watch for these platforms to become better optimized for mobile. With mobile optimization, shopper marketers will be able to tie shoppers’ online activities at home — on a PC or tablet — to their smartphone activities while on-the-go.
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How Is Social Media Changing Your Brand Strategy?

Tracy Stokes

How many times have you been asked, “What’s your social strategy?” As Facebook’s IPO grabs the headlines, and new social sites like Pinterest and Tumblr grab consumers’ attention, many marketers are wrestling with what brand building looks like in today’s social world. But the real question you should be asking yourself is, “How does social media change your brand strategy?”  

Marketing leaders now view social media as critical for brand building. In our February 2012 Marketing Leadership Online Survey, nine out of 10 marketing leaders told us that social media is fundamentally changing how brands are being built in the 21st century. In fact, they view it as second only to search for brand building. But many are still struggling to determine how to integrate it into their marketing plans. The truth is, while social is a great new tool, it lacks the power to build a brand alone. Marketing leaders such as Coca-Cola and JetBlue recognize this and are integrating social with paid and owned media to build a 21st century brand experience. In my new report, "How Social Media Is Changing Brand Building," I identify three ways social media can help marketers harness the power of social to build their brand by 1) building a relationship to become more trusted; 2) differentiating through an emotional connection to become more remarkable; and 3) nurturing loyal fans to become more essential.   

How is social changing your brand building strategy? What challenges are you facing in the social brand building world? Comment here, or join the conversation in our community of marketing leaders.

Thanks!

How Can Digital Out-Of-Home Fulfill Its Potential? (Insights From The MediaPost Digital Out-Of-Home Summit)

Tracy Stokes

As digital infuses every medium, one of the oldest advertising mediums around — out-of-home — is getting a digital makeover. Forrester Researcher Cory Madigan recently attended a MediaPost summit on this topic. Here’s Cory’s take on the event:

On April 11th, MediaPost hosted a Digital Out-Of-Home Summit in New York. The event was primarily attended by digital out-of-home (DOOH) vendors, and the content was geared toward that audience, focusing on what the DOOH industry can do to help media planners and buyers shift spend to that channel. The opportunity is clear: As the medium closest to offline purchase, marketers can use DOOH to complete a marketing loop that involves TV, mobile, social, and out-of-home media. Tricia Nichols, global lead of consumer engagement and media strategy for Gap brands, noted that the interactivity of DOOH screens lends itself to in-store experiences, going beyond offers and into social loyalty. But with what seems like an obvious way to spend ad dollars, young DOOH media is having a hard time selling itself to media buyers and advertisers. How can the industry rise to the challenges it faces?

  • Media planners: Break out of your silos. Rather than plan with a customer-centric approach, media planners focus only on their channel with little collaboration across other media. Because many advertisers are already unsure how to integrate DOOH into broader campaigns and programs, opportunities to marry place-based media and mobile programs, for example, go by the wayside. Agencies and marketers need to plan media according to the customer life cycle, and DOOH will be more likely to add value and find the relevance it seeks by marrying the targeting and geolocation capabilities this medium offers with content made for its place in the customer life cycle.
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P&G Brand Building Goes Digital, But This Is Not The End Of TV Advertising

Tracy Stokes

As the world’s largest advertiser, any move by Procter & Gamble (P&G) is closely watched. So much attention has been paid to its recent announcement that it will cut $10 billion from its marketing budget over the next five years. In an interview last week with The Wall Street Journal, P&G’s Global Chief Marketing Officer Marc Pritchard elaborated on the company’s intent to lean more heavily on digital media at the expense of higher-ticket TV advertising as part of its cost-savings strategy. The Wall Street Journal interview is part of a PR push from P&G around its digital ambitions, highlighted in a Signal event in Cincinnati last week that focused on brand building in a digital world. The event brought in digital players and experts from Facebook and Google to Buddy Media and Flipboard as well as Forrester’s own eBusiness experts Sucharita Mulpuru and Andy Hoar. So why is P&G making this digital shift, and what does it mean?  

The public event and announcements are, as the event name suggests, a signal — a welcome signal to Wall Street that P&G will be faster and more efficient (the company’s stock rose 3% with the budget-cutting news). It's a return shot across the bow to competitors such as Unilever and L’Oreal, which are both making high-profile advances in their digital ambitions, and a signal to P&G employees around the world that their leaders are serious about digital and that they need to accelerate change in the slow-moving P&G ship.   

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Book Business Outlook For 2012: Hard Work Ahead

James McQuivey

This week hundreds of us in and around the book industry will converge on Digital Book World 2012 (#DBW12). It's a conference that has risen in significance because this industry has rapidly come to understand that it is uniquely susceptible to digitization -- and poised to benefit from it -- in a way that other media are not.

This awareness has translated into relative optimism among publishers. As I'll share with the DBW12 audience on Tuesday morning, we recently conducted a survey with Digital Book World of publishing executives whose companies together earn 74% of all US trade publishing revenues. As we closed out 2011, 82% of publishing executives we surveyed were optimistic about the digital transition. That's a large number, even if it's smaller than the 89% it was a year ago. But when we take into account all the measures of optimism we threw at them -- about the industry in general, about the fortunes of readers, and the importance of their own roles -- most of them decreased somewhat and some decreased significantly. 

Most tellingly, only 28% of these executives thought their own company would be stronger in the future because of digital compared to 51% who agreed with this sentiment the prior year. This suggests that publishers have started to do the hard work of making the digital transition and they're finding that it is, indeed, hard work. It's worth putting ourselves in the shoes of these publishing industry product strategists for a moment to consider just why they aren't positive that their companies are going to come out better off. I see three reasons:

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2012 Super Bowl Heralds Change In Video And TV Marketing Strategy

Tracy Stokes

NBC recently announced that it would be streaming its coverage of the 2012 NFL Super Bowl online. NBC has streamed big events before (2010 Olympics, Sunday Night Football), but the big difference here is that it is selling video ads that will run exclusively on the online stream independently of the TV broadcast. This is a huge step for NBC as an ad seller since it is recognizing its untapped online audience and attempting to monetize it. Although the Super Bowl streams (restricted to the US only) are expected to greatly pale in comparison to linear TV viewership, Forrester expects the streaming audience of the Super Bowl to grow dramatically in years to come.

2011 has seen some major change in advertising. Although TV is still king, there’s no denying that online video, across a wide variety of devices, is experiencing strong growth. TV advertisers must now contend with smartphones, computers, and tablets as alternative sources of premium video content for engaging viewers with targeted ads. 

As media fragmentation increases, marketers will need to rethink their strategies and start to look at online video and TV as two sides of the same coin. In our latest report, “Why Marketers Must Integrate TV And Video Strategies” (subscription required), we make the case that marketers will merge their online video and TV advertising teams to more efficiently reach their audience across whatever screen they happen to be watching. Next month, our VP Practice Leader, David Cooperstein, will be speaking at the ANA TV & Everything Video Forum in New York about how marketers’ attitudes and strategies are shifting in the face of this new media convergence.

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Jay-Z Decodes The Future Of Digital Out-Of-Home

Tracy Stokes

For the 2010 launch of his autobiography Decoded, hip-hop mogul Jay-Z ran a teaser campaign with Bing that released one page of the book per day on out-of-home signage; people across the US tried to decode the pages from buildings, pools, and clothing racks. Jay-Z is one of many marketers giving the once-stagnant out-of-home channel an infusion of digital and creative innovation. Place-based networks, digital signage, digital billboards, and hybrid installations offer an array of options for marketing leaders to consider as they try to reach on-the-go consumers. This reinvigorated medium offers marketers greater relevance, engagement, and interaction. It grabs consumers with content at the right time in the right place — when they are about to make a purchase decision — and offers the immediacy of instant gratification or information through smartphone-enabled technology.  

To get a picture of this new media landscape and to find out more about how leading marketers have begun to use digital out-of-home, check out my new report, “Digital Remakes Out-Of-Home Advertising."

What do you see in the future for digital out-of-home? Are you ready to get outside?    

Thanks!

Introducing Engaged TV: Xbox 360 Leads The Way To A New Video Product Experience

James McQuivey

What to do when a failed product concept still lingers, haunting every attempt at injecting it with new life? That's the problem with interactive TV, a term that grates like the name of an old girlfriend, conjuring up hopes long since unfulfilled yet still surprisingly fresh. Gratefully, it’s time to put old product notions of interactive TV behind us because this week Microsoft will release a user experience update to the Xbox 360 that will do for the TV what decades of promises and industry joint ventures have never managed to pull off.

Meet engaged TV. From now on, I will no longer need to plead with the audiences I address, the clients I meet, or my friends who still listen to me to imagine the future of TV. Because Microsoft has just built and delivered it: A single box that ties together all the content you want, made easily accessible through a universal, natural, voice-directed search. This is now the benchmark against which all other living-room initiatives should be compared, from cable or satellite set top boxes to Apple’s widely rumored TV to the 3.0 version of Google TV that Google will have to start programming as soon as they see this. With more than 57 million people worldwide already sitting on a box that’s about to be upgraded for free – and with what I estimate to be 15 million Kinect cameras in some of those homes – Microsoft has not only built the right experience, it has ensured that it will spread quickly and with devastating effect.

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Are You Ready To Disrupt Yourself?

James McQuivey

Or will someone else do it for you? That's the principal question I have after seeing the first week's worth of responses to our Digital Disruption Readiness Assessment survey. This 5-minute survey (available at forr.com/digitalreadiness) is already revealing critical vulnerabilities in corporate readiness. Consider the following data point:

It's not that people think their industries are safe from digital disruption -- quite the contrary. A full 76% see "significant opportunity" for digital to disrupt the industry they serve. Yet only a third think their companies will put the right resources in place to adapt to the changes that digital will bring. 

I spoke at a private conference outside of San Francisco on Tuesday and shared our digital disruption research with the room, elaborating on the Lose It! case study I posted on Mashable last week. Afterward, several entrepreneurs spoke to me about their own experiences as digital disruptors. One of them -- who self-identified as a Gen Yer who had recently received $15 million in funding for his startup -- explained to me that the cost of disrupting has fallen so low that he doesn't even think people like him need to go for the big funding anymore (not that he refused it when it came!). He said, "Especially in software, it only takes $30,000 to build anything in software today."

That's a digital disruptor. He's not bound by traditional economics, old-school partnership boundaries, or even antiquated notions of customer privacy. How are you going to compete with someone who thinks -- and acts -- like that?

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Take Our Digital Disruption Readiness Assessment

James McQuivey

Yesterday I took the main stage at our 2011 Consumer Forum here in Chicago to introduce the 500+ members of the audience to digital disruptors. You can read about the guts of my presentation in my blog post and learn more about the effect of digital disruptors in "Beware the Digital Disruptors," my Mashable piece from earlier this week. 

But what I really want you to do is participate in our Digital Disruption Readiness Assessment. It's found at forr.com/digitalreadiness and takes just five minutes to complete. We launched it yesterday as part of my speech, and many thanks to the hundreds of you who have already hit the survey (even those of you who just checked out the first page and didn't proceed; I want you back). The results are already fascinating and will only get better as we get more of you to participate, so please pass this along to your friends and let's collect enough data that I can share more nuggets as they come through. Here's a teaser:

You're very optimistic: 43% think it's very likely that "My company will be a top provider of its goods and services in five years." Yet only 21% of you think it's very likely that "My company will be more innovative than other firms in our industry or category over the next five years." Red flag: How will your company lead in products if it doesn't lead in innovation? 

In our assessment, we ask you to evaluate your industry, your company, and your individual readiness for (or vulnerability to) digital disruption. And here's the real kicker: When we get to the level of the individual, the answers are sure to trigger empathy.

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