A media frenzy arose last night when the Financial Times suggested it had word from the inside that Apple is closing in on buying Beats Electronics for $3.2 billion. The immediate response from all quarters has been puzzlement and on multiple levels. As the sun rose today, so did the doubts about the impending deal. Generally, large strategic acquisitions — like when Google bought Nest for a similar figure — can be justified on the basis of buying something you don’t already have: a promising new technology, a large customer base, or entrée into a desirable industry. None of these things apply to this acquisition by Apple. Acquisitions at a more mature business stage can typically be justified purely on a revenue or margin basis or the desire to snap up a brand with more energy. Those don’t apply here, either. Even those who have tried to stretch the argument a bit have suggested that Apple could be buying Beats purely for a quick road into the music streaming business as a hedge against Spotify — except that Apple owns the music industry and doesn’t need Beats to build the music streaming offering that the company has denied for years that it should even consider getting into.
Marketers in China are becoming more aware of the effectiveness of their marketing spending. They will no longer blindly spend a lump sum on China Central Television’s ad auction, for example. Home appliance giant Haier Group recently announced that it will stop spending on traditional magazine ads and maintain paid editorials only.
As Chinese consumers increase the time they spend on new channels such as social and mobile, it's more important than ever for marketers in China to optimize all touchpoints to reach and make an impact on their target audiences, especially when it comes to the new challenge of multichannel and multiscreen orchestration.
RaDaR refers to “reach and depth and relationship” — three types of channels. Smart marketers are beginning to embrace a four-stage customer life cycle, from discover, to explore, to buy, to engage, then back to discover, and different types of channels support different stages of the life cycle:
Reach channels support discovery. Chinese consumers use channels such as in-store promotions and online search to discover brands.
Depth channels support exploration and purchase. Chinese consumers use channels such as consumer review sites and friends’ recommendations to research products and services they want to buy.
Ok, well, some of them will. Those customers who are mobile-savvy enough (they are the shifted as part of what we call The Mobile Mind Shift) and engage with your brand frequently will. You own those mobile moments with your customers. They reach for their phones to engage with your brand. You will still need to work hard to keep them engaged, but it's a good start that they downloaded your app. It's even better if they allow you to send push notifications - that gives you the opportunity to create mobile moments with them.
If they don't download your app, borrow moments.
Let's face it. Lots of your customers won't download your app. They won't invest the time or energy. With these customers, you must borrow mobile moments - that is, you must engage with your customers on third party apps (really platforms).
We see more and more brands embracing this strategy. What is your strategy to engage with your customers through borrowed moments?
Google Maps released a new app version this week. Uber is integrated into the Map app if you are already signed up for Uber (and in this implementation have the Uber app on your phone.) Uber already owns mobile moments with thousands if not more consumers. Exposure through Google Maps gives them more upside. First, it will help them to acquire customers through exposure. Second, it puts Uber in the mix of transportation options I have as I evaluate how to get from point A to point B within my Map app that also shows me traffic and parking availability. Highly contextual.
If they do download your app, don't assume they will actually open it - kind of a hassle for quick tasks, right?
Forrester is about to publish two of my reports discussing the state of marketing automation in Europe; one focuses on European buyers and the other on European vendors (they are currently with the vendors mentioned as what we call a “courtesy copy” – they get a day or so notice before publication). Which will be great timing because we’re holding the EMEA edition of Forrester’s Forum for Marketing Leaders in London next week. I will enjoy showing these reports to clients there to demonstrate how we pay attention to their needs.
What I did in the first report, entitled “Which L2RM Platform Vendors Have an Edge in Europe? The L2RM Platform Forrester Wave™ From a European Point Of View,” was pretty simple. I took our January 2014 Forrester Wave™ analysis, which Lori Wizdo wrote and I edited, and focused on criteria that I know are more important for European marketers. I also considered whether or not each vendor was represented in each of the numerous European countries — and if so, how. Many lead-to-revenue management automation vendors with a global reach have still not seriously set up shop in Europe, because they consider firms here to be late adopters of marketing automation. European marketers, most of whom market internationally by necessity, do have different requirements than those who market primarily to a domestic market. Vendors that focus on those special requirements have a significant opportunity to thrive in the reviving European market.
Last month I blogged about the impressive growth of always addressable customers among US online adults. We've just seen the data for Europe, and I can confirm what we all knew instinctively: This is not just a US phenomenon. At least one-third of European online adults are always addressable today — and the pace of this evolution is only accelerating.
These customers are exposed to more brand interactions than ever before simply because they're always connected to some kind of digital media. But this doesn't mean you should just push even more brand-centric messages out to them. Instead, the opportunity is to demonstrate your brand promise — not just talk about it — by creating programs that are visibly and functionally useful from your customers' point of view. That's what we call utility marketing.
Last year, in our research about the mobile mind shift, we discussed the five primary strategies you can employ to achieve this kind of utility:
The advertising industry mega-trend of the last decade — ad dollars shifting from offline to online media — is continuing in this decade, as well. This is because more and more users are becoming "addicted" to the Internet. According to a recent study by the Pew Research Center, “The Web at 25 in the U.S.,” it has become harder for consumers to give up the Internet than TV. Fifty-three percent of Internet users say the Internet would be very hard to give up, up from 38% in 2006. Only 35% of adults say their television would be very hard to give up, down from 44% in 2006.
The mega-trend of the decade is the shift of ad dollars from desktop/laptop to mobile devices. Based on Forrester estimates, US mobile ad spend was just 6% of total US online ad spending in 2011. The share of US mobile ad spending in the total US online ad spending is expected to reach 44% by 2019. All three components of mobile advertising — display, search, and social — will witness increases in their spend levels.
Mobile display. There is an increasing shift of ad spending from mobile Web to in-app display ads. This is because apps capture most of the smartphone usage. According to a recent study by Flurry, apps capture 86% of usage, whereas only 14% of US mobile consumer’s time is spent on mobile Web. In-app advertisements and mobile video will drive the growth of mobile display ad spending.
It reminds me of Paddy Chayevsky's movie Network, in which a man generates huge ratings by telling people to turn off their TVs.
The most shocking moment in this video is when the hero leaves his house and walks out without his phone. We've truly made the mobile mind shift, because this is unthinkable.
It's good advice, to leave your devices behind once in a while. I recommend it. But this video exists and is popular because every popular technology creates backlash, and that backlash has a romantic appeal. The chances of this making an impact on attitudes about mobile and social is close to zero, even if it's comforting to some to think it might.
If you think mobile and social technologies are about screens, you've missed the point. They're about generating and enriching interactions in the real world. That's the romantic appeal of "Look Up," and it's a lesson worth learning.
When news about the Heartbleed bug captured worldwide attention last month, consumers learned that their personal information, initially thought to be secure, had in fact been vulnerable to hackers for years. Arguably the worst Internet breach of all time, the revelation left many questioning what to do next.
To understand how consumer reaction to Heartbleed unfolded, we tuned into online chatter and engaged Forrester’s ConsumerVoices market research online community immediately after the news broke. While Forrester’s social listening data reveals that sentiment of consumer conversation about Heartbleed was consistently negative, online community response tells us that the negativity doesn’t stem purely from shock – rather, from a sense of helplessness and jadedness.
Do you approach data analytics with the same enthusiasm as a big pile of leafy vegetables? You know you need to consume more of it, but, man, that steak, fries, or big piece of chocolate cake just seem so much more appealing.
Recently I asked Forrester webinar listeners (mostly marketing folks) to rate how they approached data analytics. It's a small sample, I know, but bear with me for a second.
Of the 16 people responding to the poll, six said that they were somewhat effective, and nine said that they were not effective or didn't use data analytics at all (the figure here shows the actual results). Taken together, that's more than 90%.
I found this fascinating because, just about a year ago, I teamed up with ITSMA and VisionEdge Marketing to explore the state of marketing’s performance management. While quizzing participants about reporting and dashboards, we slipped in a question or two about data analytic effectiveness, and the distribution of responses in 2013 are similar to this poll: Only 10% of those surveyed gave themselves a “thumbs up” for data analytic proficiency. What’s going on here? Do marketers really approach data with the same gusto as a large plate of kale?
The first email I received at work in 2014 was from a bank; along with a festive new year’s greeting, the email touted the bank’s new mobile app and a new feature that let customers set up travel notifications directly from the bank’s website. Later that day, I was in an airport reading a friend’s Facebook post about how she wished “more apps were like Uber.”
These are just a few small anecdotes about ongoing digital trends impacting businesses and banks both large and small. I recently spoke with a banking executive who put it simply: “Digital is what we do now.” (This quote is now the header of my Twitter feed.)
Forrester recently published our Trends 2014: North American Digital Banking report, in which we identify major forces impacting banks and lay out five actions that we recommend digital strategists take to prepare for the future of digital banking. Here’s a sample of some of our findings:
Banks will face a sustained – yet unclear – regulatory environment. In both the US and Canada, banks are confronting an uncertain regulatory future. The Dodd-Frank Act was signed into US law on July 21, 2010, but a large number of the rules and regulations remain unwritten. It's unclear when they'll be finalized, and the fact that 47% of deadlines have already been missed – according to the law firm Davis Polk & Wardwell – doesn't bode well.