How The CMO And CIO Will Determine The Future Of Business In 2015

Cliff Condon
Forrester has just published 45 sets of 2015 predictions for every role we write about, from customer insights to application development to security and risk. In my role as Chief Research Officer, one thing is now clear to me: the two roles that matter most for 2015 are the CIO and the CMO (see our infographic below) -- their relationship and joint strategy to boost the business will determine the future of any corporation.
 
CMOs historically focused narrowly on marketing and promotion. That’s not enough in the age of the customer. The CMO of 2015 must own the most important driver of business success -- the customer experience -- and represent the customer’s perspective in corporate strategy. Andy Childs at Paychex is a great example -- he owns not only traditional marketing but strategic planning and M&A.
 
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Digital Media Buying Gets The "Programmatic" Makeover

If you are, like me,  deeply involved with digital advertising, one of the industry mantras of the last few years was anything with a taste of “PROGRAMMATIC.”

Yes, you can say it with me now: “PRO·GRAM·MAT·IC.” Ahhhh. 

In reality, I think that we are only starting now to truly see programmatic methods and techniques adopted by ad sellers and buyers. Finally, in 2014 we have seen marketing leaders driving their digital media buying practices forward by combining rich customer data with algorithmically driven buying platforms to make digital advertising dollars more effective in reaching target audiences. And, while there is a long road ahead of us before the robots become self-aware, there are some key trends shaping the industry that point to a more sophisticated future for media buying:

1)      Budget increases - Major brands and massive holding companies have huge goals for programmatic spending. With P&G striving to buy 70% to 75% of digital ads programmatically by the end of the year, Google striving for 60% of digital marketing budget on programmatic, and what seems like an arms race amongst the holding companies to see who can spend more programmatically, the future of software-driven media buying looks bright.   

2)      Growth in TV-land - As marketing leaders have started to up the ante for programmatic, sellers have taken notice, specifically across video and TV. The buzz about programmatic TV is taking hold, and we are seeing a new generation of ad tech commit to solving that problem for advertisers.

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Mobile (And Mobile Natives!) Will Be A Catalyst For Organizational And Cultural Changes

Thomas Husson

Marketing teams are expanding their use of mobile across functional, geographic, and brand boundaries, and the mobile vendor ecosystem is still fragmented and increasingly convoluted. The result? Marketing leaders are unsure about how to organize and support their growing mobile initiatives — they’re not even certain what responsibilities and talents they should allocate to mobile.

While CMOs are the primary leaders of mobile strategy among C-Suite executives, there’s rarely one clear mobile leader simply because mobile is not solely the domain of marketers. A third of marketers we interviewed still lack CMO support. While executives consider mobile as strategic, only 35% of marketers we surveyed consider they have the budget they need to support their initiatives. More often than not, we have found that marketing leaders lack mobile skills and ways to coordinate mobile across the company.

To help marketing leaders figure out the impact of mobile on their organizations, we have just updated our “Organize For Mobile Marketing Success” report.

Looking down the road, the widespread adoption of mobile technologies will deliver unprecedented levels of change for marketing leaders and their teams as:

  • Agile approaches to marketing will become standard. To embrace the velocity and agility required to reap the benefits of the mobile world, marketing leaders will need to transform their teams’ organization and processes. Mobile’s data granularity and velocity will drive the need to constantly iterate marketing campaigns and tactics.
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Mobile Leaders Will Break Away From Laggards In 2015

Thomas Husson
Mobile reached a tipping point in 2014 as it solidified its position as one of the most disruptive technologies for businesses in decades. Not since the advent of the Internet has a technology forced businesses to rethink completely how they win, serve, and retain customers.
 
Forrester believes that, in the future, the new competitive battleground will be the mobile moment. Why? Consumers expect to engage with brands to get any information or service they desire immediately and in context. Today, 18% of US online consumers have this expectation, while 30% are in the midst of a transition to this mobile mind shift. This revolution is taking place quickly across the globe: Forrester forecasts that 42% of the total population globally will own a smartphone by the end of 2015.
 
Forrester believes that, in 2015, the gap will increase between marketing leaders and eBusiness professionals who will re-engineer their business to deliver valuable mobile moments and the majority of executives who will continue to take a myopic approach by considering mobile just as another digital channel.
 
Together, with my colleague Julie Ask, we expect new mobile trends to shape the market in 2015. In particular, we predict that:
 
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Marketers Will Use Customer Context To Supercharge Digital Engagement In 2015

Carlton Doty
In 2014, Forrester outlined a new approach to marketing that requires brands to harness customer context to deliver self-perpetuating cycles of real-time, two-way, insight-driven interactions.  In 2015, we’ll see more marketers obsess over customers’ context. As more interaction data floods customer databases and marketing automation systems, customer-obsessed marketing leaders will strive to orchestrate brand experiences that drive unprecedented levels of engagement. For example, we predict that:
 
  • Digital marketing investments will drive brand experiences across the customer life cycle. By the end of 2015, spend on digital marketing will top $67 billion — growing to 27% of all ad spend. In fact, we believe this will surpass TV spend by 2016; there’s more to the story than ad spend. We believe marketers will branch out of expected digital media buys to stimulate more insight-driven interactions with customers throughout the entire customer life cycle. Supported by new streams of situational customer data and powered by the ability to precisely target audiences with programmatic media buying, marketers will deliver highly engaging brand experiences rather than just feed the top of the funnel.
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US Digital Marketing Will Pass TV In Two Years, Topping $100B By 2019

Shar VanBoskirk

I am happy to announce the latest release of Forrester's five-year digital marketing forecast, a data-rich tool for budgeting, benchmarking, and identifying key trends to watch as you set your 2015 strategic plan. What you need to know:

  • US Digital marketing spend will top $100 billion in five years. Just think about how big that is. By 2019 in the United States, digital will be almost twice as large as it is now. It will be about $13 billion more than television advertising, and it will count for 35% of all advertising spend.
  • Growth is healthy but not runaway. We expect a 12% CAGR between now and 2019, which is a healthy slope, especially when considering numbers of this magnitude. But it is worth noting that this growth isn't skyrocketing. Marketers 15 year look-back window allows them the experience and performance data they need to know when to invest in digital, but also when not to overspend.
  • Mobile marketing represents 66% of growth. This year, we included mobile as a deployment option (akin to desktop) for search, display, or social ad impressions. So you won't see it as its own line item in the forecast. But rest assured, increased use of mobile by consumers, growing familiarity with mobile advertising by marketers, improvements to ad formats, metrics and buying practices, and increasing mobile ad costs will make mobile count for $46 billion of our $100 billion bogie by 2019.
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Points And Coupons Are Key To Winning The Loyalty Battle Between Taxi-Hailing Apps

Xiaofeng Wang

Back in June, I published a blog post on the ongoing loyalty battle between taxi-hailing apps in China. Since launching their loyalty campaigns, Didi Dache and Kuaidi DaChe have expanded to more and more cities and are fiercely competing with each other with dueling rounds of promotions. Five months later, we have a winner — at least for now.

On November 5, Kuaidi announced that it had captured 60% of the taxi-hailing app market in China, overtaking former market leader Didi. Kuaidi hasn’t just won market share — it’s won the customer loyalty battle, which is more important. According to EnfoDesk, active Kuaidi users open the app 15.82 times on average, while active Didi users only do so 12.55 times.

How did Kuaidi manage to flip the game in just five months? Simply put, Kuaidi’s customer loyalty program works better. My previous post outlined the different approaches that Didi and Kuaidi took to engender customer loyalty: Kuaidi adopted a loyalty rewards program and provided points and coupons to loyal customers, whereas Didi leveraged the power of social to replicate the success of its Lucky Money campaign.

So why did Kuaidi’s points and coupons beat Didi’s lucky money in the race for customer loyalty?

  • Predictable rewards beat random rewards. Kuaidi users earn a certain number of points for each completed ride and can use these points to purchase coupons — so loyal Kuaidi users get rewards that are predictable and can be accumulated. In contrast, the amount of money that Didi users get from each lucky money reward package is completely random.
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Listen To This Mini-Podcast On Content Co-Marketing

Ryan Skinner

To bring a recent piece of research on content co-marketing to life, I created a mini-podcast (8 minutes) that includes excerpts from my interviews with marketing leaders. Give it a listen (if the Soundcloud player below doesn't show up or doesn't work for you, you can go straight to the Soundcloud page where it lives, here). Below I've included notes to the podcast, and a full transcript.

Podcast notes:

The full Target & Volkswagen branded video: http://adage.com/article/cmo-strategy/vw-teams-funny-die-target-shopping-trip/295082/

The full Forrester report on branded content partnerships, or content co-marketing: https://www.forrester.com/Lift+Content+Marketing+Spending+Power+Through+Brand+Partnerships/quickscan/-/E-RES117539

Interviewees:
Nick Edouard - http://ca.linkedin.com/in/nickedouard
Claudia Hoeffner - http://www.linkedin.com/in/claudiahoeffner
Amanda Sibley - http://www.linkedin.com/in/asibley
Amanda Batista - http://www.linkedin.com/in/amandafbatista

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Mobile’s Untapped Value Is In Contextual Data

Thomas Husson

As the hub of our offline and online experiences, mobile interactions are a powerful catalyst for contextual marketing. The untapped opportunity in mobile for marketers will be to get an extremely granular understanding of their customers, then anticipate their expectations, and develop unique insights to power better marketing across all channels, not just mobile.

Few Marketers Make The Most Of The New Customer Data Gold Mine

Because smartphones are the hub of our offline and online experiences, they generate valuable insights for contextual data-driven marketing. However, the majority of marketers are not yet ready to exploit the convergence between mobile and big data.

Short Term: Engage Your Customers In Real Time In Their Mobile Moments

Harnessing and extracting actionable insights from this unprecedented wealth of customer data will enable marketers to serve customers in their mobile moments on a channel where they will increasingly spend the majority of their digital time.

Long Term: Power Better Marketing Initiatives Beyond The Mobile Channel

Mobile is more than simply another digital channel. Marketing leaders should combine mobile data with other sources of customer intelligence to get a deeper understanding of customers, anticipate their expectations, and act on these insights to improve all marketing initiatives.

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The State Of Mobile Technology For Marketers

Thomas Husson

Marketers are in love with the latest mobile “shiny object” – and with technology acronyms – NFC, AR, LTE, BLE, RWD, QR. What’s more, hype questions abound: Will beacons replace NFC? Do you believe in HTML5 or should we develop a native app? Should we build an app for Apple Watch? But most of the time, these questions are irrelevant.

The reality is, marketers are increasingly using a variety of mobile tactics and technologies – but this use is rarely sophisticated and more often than not, does not match customer behaviors.

Sophistication of consumers’ use of smartphones is climbing — without consumers even noticing it. Mobile is simply part of our daily lives and, therefore, fundamentally changes customer expectations. With mobile traffic exploding, marketers are not only underserving their best customers by delivering a poor mobile experience, but risk losing their business altogether.

It’s time for marketers to start asking questions like how their core audience is using mobile, the value that mobile is adding throughout the customer lifecycle, the experience they want to transform, and the marketing objectives they have, to name a few. And only then, begin to align the right technologies.

If you want to know more about the gap between consumers’ and marketers’ use of mobile technologies, you can download our updated State Of Mobile Technology For Marketers report.