DIGITAL MARKETING

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TRENDS 2016

Digital marketing trendsto watch in 2016

and why they matter to NZ organisations

THE NEW ZEALAND VIEWKiwi marketers ranked these as the digital marketing trends that will have the most influence on NZ brands in 20161:1. Personalisation (39%)2. Online Video (25%)3. Marketing Automation (20%)4. Programmatic Advertising (10%)5. Email Address Matching (6%)

PERSONALISATION

TREND 1

WHAT IS PERSONALISATION?

• PERSONALISATION is the practice of dynamically tailoring your communications –typically websites, emails, direct mail – to the wants and needs of each user.

Why does PERSONALISATION matter?

• Messages that are personalised are more relevant to their recipients and are more likely to be:– Noticed– Read– Acted Upon

MORE PROFITABLE

• 40% of consumers buy more from retailers who personalise the shopping experience across channels2

Better clickthrough rates

• Personalised marketing emails receive 41% higher click-through rates3

ONLINE VIDEO

TREND 2

Why does ONLINE VIDEO matter?

• More and more consumers, in NZ and offshore, are watching and sharing online videos

• Cisco estimates that 80% of all consumer Internet traffic in 2019 will be video (up from 66% now)

WE WATCH MORE

• Kiwis are already spending twice as much time watching video online (134 minutes) as they are watching Live TV (62 minutes)4

More likely to buy

• Expect to see more videos on Ecommerce sites. 64% of consumers are more likely to buy a product after watching a video about it5

MARKETING AUTOMATION

TREND 3

WHAT IS MARKETING AUTOMATION?

• MARKETING AUTOMATION refers to software platforms and technologies designed for marketing departments and organisations to market more effectively on multiple channels online (such as email, social media, websites, etc.) and to automate repetitive tasks.

WHY DOES MARKETING AUTOMATION MATTER?• The need for speed in sales, marketing and

customer service has never been more urgent• Consumers, mobiles in hand, expect near-real-

time responses to their enquiries• And consumers overwhelmed with marketing

messages are much more likely to respond to communications that are highly personalised and relevant

PLANNING TO SPEND MORE

• 77% of Kiwi marketers are planning to increase expenditure on marketing technology in the next 12 months6

BETTER CONVERSIONS

• Companies using Marketing Automation systems have reported conversion rates of up to 50%.7

PROGRAMMATIC ADVERTISING

TREND 4

WHAT IS PROGRAMMATIC ADVERTISING?

• PROGRAMMATIC ADVERTISING describes online display advertising that is aggregated, booked, flighted, analyzed and optimized automatically via software interfaces and algorithms.

• While it includes Real Time Buying (RTB) it also includes non-RTB methods and buying types such as Facebook Ads API and the Google Display Network.

WHY DOES PROGRAMMATIC ADVERTISING MATTER?

• Advertising has moved to faster, more relevant, personalised, highly targeted messaging as well

• Now decisions on bidding and buying are made in micro-seconds, demanding technology to handle transactions

DRAMATIC GROWTH IN NEW ZEALAND

• Automated Buying has been showing massive growth in the past year in NZ, with reports of a 210% quarter-on-quarter increase in video ads available for real-time buying.8

IT’S BECOMING DOMINANT GLOBALLY

• Programmatic transactions in the U.S. were estimated at $10.9 billion in 2014, 62% of U.S. display-related digital spend.

• By 2018, programmatic is expected to represent 82% of U.S. display-related spend.9

USING FIRST-PARTY DATA

TREND 5

WHAT IS FIRST-PARTY DATA?

• First party data is loosely defined as information you yourself have collected about your audience (the “first party” is you) and can include data from:

• website analytics platforms• CRM systems• Point of Sale systems• business analysis tools

WHY DOES FIRST-PARTY DATA MATTER?

• First-party data is the foundation for understanding your customers, because it’s based on their actual interactions with your brand across touchpoints, both historical and real-time.

EMAIL MATCHING: FACEBOOK

• Facebook pioneered the idea of allowing advertisers to use first-party data, in the form of their own lists of email addresses to uniquely identify and advertise to their own customers and prospects.

• As a result, advertisers are reporting reduced cost per acquisition (by as much as 65%) leading to a 3.5X increase in return on ad spend.10

EMAIL MATCHING: GOOGLE

• In late 2015, Google introduced Customer Match, its own system for matching lists of email addresses to visitors to Google Search, Gmail and YouTube.

CONTENT MARKETING

TREND 6

WHAT IS CONTENT MARKETING?

• Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action.

WHY DOES CONTENT MARKETING MATTER?

• Ad Blocking, Time Shifting, Banner Blindness – they all demonstrate the same thing, that consumers actively avoid irrelevant, interruptive advertising.

• The smart way for brands/agencies to now engage with the consumer is by investing in storytelling to deliver cutting edge content that is relevant to the consumer but also fits the brand.

LOCAL & GLOBAL growth

• 60% of Australia/New Zealand respondents to one recent survey are planning to invest in Content Marketing in 2016.11

• 71% of global marketers are now creating more content than they were 12 months ago11

MORE INVESTMENT, BETTER ROI

• 97% of Australia/NZ marketers plan to either maintain or increase the time and resources they commit to content marketing in the next financial year12

• 59% of Australia/NZ organisations are expecting their content marketing to lead to more sales this year12

THE RISE AND RISE OF MOBILE

TREND 7

WHY DOES MOBILE MATTER?

• 77% of Kiwis now have smartphones, with nearly universal adoption by younger audiences13

– 92% of Under 25s– 84% of 25-44s

A WORLD GONE MOBILE

• In May 2015, Google reported that more searches now take place on mobile devices than on computers, in ten countries including the US and Japan.

POST-Mobilegeddon

• In 2015, Google penalised mobile-unfriendly websites by downgrading them in results of searches via mobile devices

• Analysis has found that such websites are now 35% less visible in mobile searches14

THE GAP WILL WIDEN

• In 2016, the gap between customer-obsessed leaders who will embrace mobile as a means to create new value and laggards who consider mobile to be a stand-alone channel will widen.

WHAT HAPPENS ON FACEBOOK …

TREND 8

… STAYs ON facebook?

• Facebook wants people to stay on the network, so now favours posts that keep people engaged within Facebook itself.

• New tools such as Facebook Lead Ads, which incorporate Call To Action buttons, allow marketers to close the sale on Facebook itself.

NATIVE VIDEO ADS PREFERRED

• “Facebook’s content-recommendation algorithm gives preference to its own video player when determining what content to show in people’s news feeds…”.

• By Feb 2015, 70% of all videos posted to Facebook were uploaded directly to the network. Facebook users now watch 4 billion video streams a day.15

WHY DOES THIS MATTER?

• Facebook is competing with Google and Apple for eyeballs and revenue

• The social network, like its competitors, is intending to discourage consumers from leaving its ecosystem

• Marketers who keep their audiences on Facebook are more likely to be rewarded by Facebook’s algorithms

DIGITAL ASSISTANTS

TREND 9

new gatekeepers

• Voice-activated digital assistants are gaining momentum as effective search and productivity tools on mobile devices.

• Research indicates that Android’s Google Now is the most popular – 43% use Google Now at least weekly, followed by Windows’ Cortana (10%) and Apple’s Siri (7%)16

WHY DO DIGITAL ASSISTANTS MATTER?

• The new challenge for marketers in an era of digital assistants: being the answer when a consumer asks a question.

• That requires more focus than ever on the types of spoken keywords and phrases used by consumers, with content optimised into ever-smaller pieces of information to meet specific needs.

WINNER TAKES ALL

• Consumers asking Siri, Cortana or Google Now for advice don’t want ten possibilities – they just want a single solution.

• Search optimisation becomes a Winner Takes All scenario.

WEARABLES

TREND 10

WHY DO WEARABLES MATTER?

• Marketers now have as little as two seconds to get their message across on a wearable device such as a watch.

• The biggest challenge: shrinking messages down enough to make them glanceable.

MAKE THEM LOCATION-AWARE

• Messages sent to a wearable device should also be location-sensitive.

• They should aim to meet the needs of what Google calls Consumer Micro-Moments: – I-want-to-know– I-want-to-go– I-want-to-do– I-want-to-buy

PROVIDE MORE METADATA

• As Wearables expand into other categories (e.g. glasses and clothing just as a starting point) and interact directly with other Internet-enabled-devices, expect more decisions to be made without human intervention.

• The more metadata that can be provided to aid the decision-making process, the better.

To learn more about digital marketing trendsthat REALLY matter to nz organisations

Ph 09 309 1921Email info@ubiquity.co.nz

www.ubiquity.co.nz

FOR MORE INFO ON PERSONALISATION

• To personalise your messages effectively you need enabling technology such as a Marketing Automation platform.

• You can download a free white paper that will introduce you to Marketing Automation from www.ubiquity.co.nz/getstarted

FOR MORE INFO ON MARKETING AUTOMATION

• Download a free white paper that will help you to identify the 11 steps you should take before implementing Marketing Automation, from www.ubiquity.co.nz/checklist

REFERENCES1. Survey of 200 marketers at NZ

Marketing Association Brainy Breakfast December 2015

2. MyBuys study3. MarketingLand4. Millward Brown/Colmar Brunton:

AdReaction study 20155. comScore6. NZ Marketing Association “Mood of

Marketing” survey, June 20157. Wishpond ‘State of Marketing

Automation in 2015’

8. TubeMogul9. Magna Global10. SalesBlend11. Smart Insights December 201512. Castleford Media May 201513. Google Consumer Barometer July 201514. SearchMetrics15. Fortune Magazine16. PhoneArena

ubiquity.co.nz Phone 09 309 1921 Email info@ubiquity.co.nz