Performance Marketing Ecosystem – role of media channels, agencies and partners”

The Digital Consumer

Key trends for

2013 & beyond

• Image100.com 1990s

• GoTo / Overture / Yahoo 2000-2004

• The Search Works 2004-2007

• The Technology Works 2004-2007

• TradeDoubler 2008

• I Spy Marketing 2009-2012

• iProspect (Aegis) August 2012

• iProspect manage c$2bn in Search Advertising globally for many of the world’s leading brands with c2000 global staff in 50 locations

My career in search & digital marketing

• 64m population

• Broadband, Smartphone and tablet penetration high – a sophisticated market

• Google Monopoly – 90% market share for 5+ years

• 15% the size of US search market c $8.5bn on online advertising & c$5bn on search

• Agencies dominate search spend

• Mature market – heavy competition

• Higher Cost Per Click for clients

• Higher Revenue Per Search for search engines

About the UK

• Ongoing Growth – living through a successful marketing revolution

• Changes in Consumers puts the focus on digital marketing • Specific Search trends that iProspect deal with every day

Trends In Search

£465 £825

£1 366

£2 016

£2 813

£3 350 £3 541

£4 097

£4 809

£5 416

£0

£1 000

£2 000

£3 000

£4 000

£5 000

£6 000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

£ M

illio

ns

SOURCE: IAB / PwC Digital Adspend 2002 - 2012

UK Digital advertising spend – last 10 years

SOURCE: IAB / PwC Digital Adspend 2002 – 2012 & WARC

Digital shows sustained quarterly growth

SOURCE: IAB / PwC Digital Adspend 2002 – 2012 & WARC

Digital spend is the biggest medium

SOURCE: IAB / PwC Digital Adspend 2002 – 2012 & WARC

Digital = 31% of a £17.6 billion market

Category 2011 Share

Search 58%

Display 24%

Classified 16%

NB: Other includes Lead Generation, Search Affiliate, Solus Email, Mobile SMS/MMS SOURCE: IAB / PwC Digital Adspend 2012

The digital media mix - % share of revenues 2012

SOURCE: IAB / PwC Digital Adspend 2012

Search continues to show impressive growth

“ “

What does the UK growth

tell us and why?

changing The world around us is

reasons Three main

70% Speed

Will have 4G coverage

by the end of 2013

£83 Accessibility

Is the average price that

an entry level smartphone

has fallen to

44% Information

Visit price

Comparison sites

Today’s

consumer Is…. Different.

Five consumer trends

1 2 3 4 5

Connected Today’s consumer is

Empowered Today’s consumer is

Savvy Today’s consumer is

Busy Today’s consumer is

Expectations Today’s consumer has high

connected Today’s consumer is

Whenever, Wherever

48% Increase in time spent

online in two years

40% Of all adults use 2+

devices to go online

28% Of time spent online via

mobile

Across all screens

75% Of W Europe population

will be online

50% Will have a smart-phone

20% Will have a tablet

By next year…

We lead increasingly ‘3 device lives’

M Commerce becoming big business

Of all Debenhams

traffic via mobile Global sales

through mobile

Of all online sales

via mobile

Top 100 advertiser mobile websites

63% 37%

Keeping up with

the consumer

What clients should be doing:

Think cross platform digital strategy

Ensure consumers experience a great user

experience across all platforms by

developing mobile and tablet optimized

sites and connection plans

Empowered Today’s consumer is

Choice & Control

More than a third of adults watch video

on demand

One in ten households have

Connected TVs

Over three quarters get their main

source of news online

Curators rather

than Consumers

Tomorrow’s consumers will curate their

own media galleries

Increasingly, they will cherry pick the

content that’s right for them

and share it with those with similar

Keeping up with

the consumer

What clients should be doing:

Free content from place and time

Use data to understand the customer to

personalize the media and content experience

Diversify traditional TV advertising strategies

into other channels such as Video On Demand

Savvy Today’s consumer is

More sites, more

Searches

27 days

3:17 hours

22 sites

and

across

Before making a purchase, today’s

consumer spends up to:

Recessionary

Behavior to stay

Consumers will continue to seek

out the best deals and research

their purchases thoroughly even

when we begin to see green

shoots of a recovering economy.

Keeping up with

the consumer

Maintain a strong digital presence

throughout the customer’s path to

purchase - understand attribution

Search at the core of the plan

Understand the true customer journey

Be always on at the moments and the

places that matter

What clients should be doing:

Busy Today’s consumer is

Elusive

Today’s consumer is constantly on

the go.

They have so many things to cram

in to such little time.

It’s a struggle to get, never mind

keep their attention

Time pressured

Next Year:

Consumers will take more measures to

save time:

90% Will make purchases online

53% Of internet users are expected

to have their groceries delivered

40% YOY growth expected for

mCommerce

Keeping up with

the consumer

Help them to save time by making their lives easier

(apps, click to call, mobiles sites, easy to use sites)

Remarket to consumers who have already shown

an interest in your brand who haven’t had the

chance to convert.

Get their attention with impactful & engaging

creative

What clients should be doing:

Expectations Today’s consumer has high

Simply the best

Today’s consumers want the best of

everything from...

WEBSITE SPEED

to

CUSTOMER SERVICE

Fast & efficient

55% Of consumer have

abandoned a purchase

because of poor customer

service

Key reasons include:

Waiting too long for an issue to be resolved.

Having to make a follow up call.

Speed matters…

Keeping up with

The consumer

Ensure all online touch points with your brand

provide a fast and efficient experience

Deliver a great website site user experience

Use analytics to optimize and personalize

Be social by design

What clients should be doing:

1 2 3 4 5

Connected Today’s consumer is

Empowered Today’s consumer is

Savvy Today’s consumer is

Busy Today’s consumer is

Expectations Today’s consumer has high

Five consumer trends

Specific Trends In Search

•Targeting the customers that matter

•Attribution – 3 battles that wage endlessly

•Technology selection and evolution

Not all UK consumers are equal

Search Ads are Tailored to the Individual

Stage 2

• New versus returning consumers

• Consumers who pass credit checks

• Consumers who will be profitable long term customers rather than the mass market

Stage 1

Attribution in a 3 device world is an impossible

dream for most marketers But still marketers endlessly battle On; Battle Number 1 - Brand & Non

Brand terms - beware of reducing volume

Battle Number 2 Paid and SEO. If it’s working invest more not less

Battle Number 3 Impact of Offline media on Paid Search. Good offline

media drives searches

Technology Is Vital to Manage Search • To efficiently create, manage and track large campaigns across multiple

search engines search technology is a given – Campaigns with millions of keywords – Tracking multiple actions – Regular optimisation to CPA or ROI targets

• Historically 3 Options – Bespoke Technology, 3rd party technology

(Kenshoo, Marin, Ignition One or Adobe) or Search Engine Own technology

• Choose the technology that is right for your business that allows you to understand and optimise campaign performance

– Robust – Scalable – Costs are known

• Given the new battlegrounds of Attribution, Targeting individuals and relentless budget optimisation the well funded tech players look strongest

To Conclude

• The UK & Global search market is growing fast and isn’t slowing

• The World is Undergoing a consumer driven digital change

• Advertisers are willing to pay more for the right consumer

• Those consumers are not making it easy for advertisers to track them and attribution is getting harder every day

• Select the right technology partner wisely to get the best results