A CMO and a CIO walk into a hotel bar (Let’s call them Tom and Dick). After ordering a drink, Tom says, “Dick, I really need to start working with a DMP this year, and I want your help selecting one.” Dick says, “A DMP? My enterprise architecture team is building a near real-time, self-service data management platform. We’ll be done by the end of the year. You’re going to love it in 2017!” With an absent look on his face, Tom says “A DMP is a piece of AdTech that we can use to quickly target tailored audiences with our ad campaigns. It’s not a back-office data warehouse”. Dick laughs and says, “Ad campaigns? Didn’t you just buy a campaign management tool from one of those so-called marketing cloud vendors? You know, our CRM system has a campaign module, not to mention an enormous customer database.” Tom’s response: “You’re not getting it. Cross-Channel Campaign Management is a MarTech tool, not CRM. And a DMP is not a customer database.” Exasperated, Dick shouts, “What the hell is the difference between MarTech and AdTech anyway!”
From February 22 to 25, Barcelona will be the center of the business world. Do not expect a specific industry focus but expect announcements impacting any industry: from payments to automotive. Why? Because “mobile is everything”.
In November, Forrester released its mobile predictions for 2016, highlighting how mobile will act as a catalyst for business transformation and explaining why the battle for mobile moments will redefine the vendor landscape.
Let’s now take a closer look at how mobile will impact marketing in 2016.
A year ago, Forrester argued that most brands would underinvest in mobile in 2015. This is likely to remain the case this year, since too many marketers still have a narrow view of mobile as a “sub-digital” medium and channel. This is good news for the 20% of marketers who told us they have the budget they need and for the 33% who said they know how to measure mobile ROI. In 2016, this growing minority of leading marketers will start to fully integrate mobile into their marketing strategies. These mature mobile marketers will measure the impact of mobile across channels, see a clear opportunity to differentiate their brands, and increase their investments in mobile initiatives. Here’s what else we expect to happen:
Integrating mobile into your marketing strategy will become a key differentiator. While most brands are trying to mobilize their ads, few are going the extra mile: serving their customers in their mobile moments by transforming the entire customer experience. Only those that do go that extra mile will differentiate their brands via mobile. Leaders will also start measuring the impact of mobile on offline channels and will end up allocating up to 20% of their marketing budgets to mobile.
Mobile banking continues to gather momentum worldwide and is also developing rapidly in China. Nearly half of metro Chinese consumers pay bills at least monthly on a mobile phone. While consumers are rapidly embracing mobile moments, most banks have yet to follow them. My recent published Brief: Smart Banks Tap Into Customers’ Mobile Moments tells B2C marketing professionals working at banks how to better address customers in their most relevant mobile moments throughout the customer journey.
Forrester sees the following key trends in China:
Banks are embracing mobile channels to serve mobile-mind-shifted customers. Top retail banks, including China Construction Bank and China Merchants Bank, have already adopted a mobile-first strategy.
Bank customers’ mobile moments occur throughout the customer journey . . . Leading digital banking teams are addressing customer needs in mobile moments throughout the customer life cycle across a range of mobile platforms, including WeChat.
. . . but most banks don’t always serve customers in all moments. Most banks’ mobile presence primarily focuses on the buy, use, and ask stages and less on the discover, explore, and engage stages (see figure).
Marketers in China are increasingly investing in social marketing: Three-quarters of the marketers we surveyed in 2015 plan to increase their social marketing budget in 2016. However, they struggle to determine the best social marketing strategies and tactics to engage with their target audience. My report, Take Three Steps Toward Social Success, introduces Forrester’s Social Technographics® model to help them.
Step 1: Use the Social Technographics Score to evaluate how important social media is to your marketing plan. Based on how much social media matters to consumers’ interactions with companies (from high to low), your audience falls into one of four groups: Social Stars, Social Savvies, Social Snackers, and Social Skippers. As the majority of metro Chinese consumers are Social Stars or Social Savvies, social marketing is an urgent priority for marketers in China.
Step 2: Use the Social Technographics Life-Cycle Rankings to craft the right social strategy. These reveal the stages of the customer life cycle — discover, explore, buy, use, ask, or engage — in which your customers are most likely to use social media. Metro Chinese consumers use social media the most when they’re considering products. So to succeed, marketers in China should leverage social marketing more in the explore stage of the customer life cycle.
Have you been so fed up with a company you've said, "That's it, I'm tweeting?" Contrast that with the times you've been so impressed with a company you've said, "That was so awesome, I'm going to tweet about it." Customers do use social to ask brands for help. In a recent New York Times article, Jonathan Pierce, director of social media for American Airlines, shares, “You now see folks with Wi-Fi on board — if they need assistance on board, they’ll tweet us,” he said. “Perhaps if their bag isn’t there within five minutes, they’ll tweet us. There’s an expectation from the customers that we’re there to listen to that and act on it.”
Combined, online display and social media advertising spend will double between 2015 and 2020, growing from €14.4 billion to €28.7 billion.
Among the factors driving growth, the combination of mobile and premium video advertising will drive an upsurge in demand for both online display and social advertising. Advertisers will increase their investments in video and mobile ads as media consumption evolves and targeting accuracy improves.
Native mobile video advertising is already proving a winning formula in the social media sphere, and publishers will take notice as they further refine their video ad offerings to provide more premium inventory, preventing a decline of video ad CPMs as supply increases. In fact, mobile ad spend will overtake PC as PC flatlines in the next five years.
Other developments will continue to disrupt online ad revenue in the next five years:
Programmatic will become the default mechanism for trading online display
Ad blocking will force new behaviors on the publisher side, and a greater struggle to hit the sweet spot between monetization and consumer experience.
Growing rivalries between Apple, Facebook, and Google for news aggregation services will further dis-intermediate publisher mobile advertising revenue.
When it comes to location-based marketing and proximity-marketing, more often than not, marketers seem fascinated by the beacon technology.
With 82% of shoppers making their actual purchasing decision in-aisle, it’s no wonder that vendors are betting on beacons and indoor positioning systems to help marketers interact with consumers in real time.
A year ago, Forrester warned of the hype around beacons. Despite huge interest and numerous successful pilots, we have yet to see very many successful commercial rollouts. This is not so much about the technology (even though battery life and operational deployments raise technology issue), but primarily because reach is limited today and because few marketers can deliver smart contextual messages at scale. They must also define engagement scenarios and automated rules to deliver relevant messages to individual customers.
Location data alone is dumb. Sending someone a coupon to redeem in a nearby store just because they’re passing by isn’t enough. For ads and messages to be relevant, firms must combine location data with insights like past behaviors, preferences, needs, and situations. It is also likely they will have to combine multiple technologies to reduce the complexity of in-store operational deployments and boost the accuracy of location data.
There are many more opportunities than just pushing marketing messages in real-time. Using location data is more important than just capturing the attention of nearby smartphone owners — it’s about powering contextual marketing.
In particular, marketers should fuel contextual marketing with location data to:
Increase brand preference by delivering personalized experiences
Improve the customer experience on location
Advertise more efficiently
Unlock audience targeting and offer intention data
Back in 2013, my colleague Anjali Lai and I wondered how the "summer of Snowden" was affecting consumer attitudes about privacy. So, we fielded a survey and ran some qualitative analysis in our ConsumerVoices Market Research Online Community. A year later, we used that historical data, combined with Consumer Technographics and social listening data to see how perception and behavior were changing. It was a fascinating study.
Fast forward another year: it's now pre-pre-primary season in the US, and candidates are talking about privacy and personal data protection. There have been three more major data breaches affecting millions of Americans. The adblocking debate is at fever pitch, while Internet giants make privacy a point of differentiation. Obviously, we decide to run our study a third time. And this time, we incorporate (opted-in, permission-based) data from our Consumer Technographics Behavioral Study.
Our findings? Consumers are more willing than ever to 1) walk away from your business if you fail to protect their data and privacy; 2) adopt technologies like tracker-blockers and VPNs to limit their exposure to data misuse; and 3) extend their protective actions to the physical realm.
And the real kicker is that, if you're one of the marketers who's been counting on Millennials who "don't care" about their online privacy, you're going to be waiting a long time.
What role does mobile play in customer obsession, and how can businesses leapfrog their competition to deliver superior customer experiences? Here are three ways Forrester predicts mobile will change the ways business leaders operate in 2016.