Avoid Being Left Behind

Trends, Insights & Recommendations for Marketing in the New Era

Evolution of Marketing

B.C. – 1950 1950 - 2000 2000 - present

1:1 1: many Many: many

Buyer Behavior Has Changed

The Purchase Funnel is No Longer a Funnel

Traditional View of Buyer Behavior

Source: McKinsey & Company, all rights reserved.

Consumer Decision Journey

Source: McKinsey & Company, all rights reserved.

Marketing Tactics by Decision Stage

Source: McKinsey & Company, all rights reserved.

- SEO - PPC - Email - Social media

Marketing Hub:- Website- Content

- Broadcast ads- Outdoor ads- Banner ads- Print ads- PR

- Promotions- Merchandising- Sales tools

- Online reviews - Video testimonials - Referrals

Sources of Consumer Trust

Source: Forrester Research, All Rights Reserved.

Consumers trust friends, family, & personal experience more than ads or strangers

Trust is required to acquire buyers

Trust is built through engagement

The New Normal: Engagement

“Are you buying momentary attention or are you investing in a long term asset? Stop renting an audience – build one.” - Seth Godin, best-selling author

“Don’t interrupt what people are interested in – become what people are interested in.” – Jeff Lanctot, Avenue A / Razorfish

A Resulting Paradigm Shift

Old Communications Model

Messaging: one-way messages, brand dictates topics, infrequent distribution, no feedback

Approach: brand finds the audience (push)

Tactics: Offline advertising Traditional PR Direct mail Email “blasts”

New Communications Model

Messaging: two-way dialogue, buyers dictate the topics, frequent distribution, continual feedback,

Approach: audience finds the brand (pull)

Tactics: Digital ads (search-driven) Online journalists/bloggers Social media Triggered email (lead

nurturing) Content

Peers More Credible Than Brands

Source: The Company Behind the Brand: In Reputation We Trust, Weber Shandwick

Consumers are Digital – Are You?

93% of online experiences begin with a search engine

88.1% of US internet users ages 14+ will browse or research products online in 2012.

Search & email are the Top 2 Internet activities

Inbound leads cost 61% lower than outbound leads.

Companies that blog have 434% more indexed pages (and more leads).

70% of the links searchers click are organic (SEO)

30% of customers come from search

75% of searchers never scroll past the first page of search results.

Google owns 65-70% of the search engine market share

There are over 100 billion global searches being conducted each month.

Sources: MarketingSherpa, GroupM, MarketingCharts, SEMPO, Google, Hubspot

How Consumers Behave Online

According to BIA/Kelsey Group research published March 2013, 97% of consumers now use online media when researching products or services in their local area.

Online behavior trends: 7.9 different media sources used during buying cycle:

90% use search engines

48% use Internet Yellow Pages

25% use vertical sites

42% use comparison shopping engines

58% use online coupons 19% make appointments online

Impact on Traditional Media

Print Decline in subscribers (151 newspapers closed in 2010, 152 in 2011)

Digital Shift: web news sites (e.g. MySA) that include digital advertising

Television In 2012, US had 5MM “zero TV households” (up from 2MM in 2007)

68% are watching 1-5 hours/week via apps on mobile devices

TV watching by 18-24 age group declined every quarter in since Q1 2011

Digital Shift: online streaming shows (Hulu, YouTube), online content

Radio Overall listener audience sizing is flat (decline in AM/FM, increase in online

radio)

Digital Shift: streaming services (Pandora), cable radio (Sirius XM)

Implications for Marketers

Marketers are now facilitators of conversations

Marketers must “put a face on their brand” and learn to be personable/engaging

Marketers need to build their own platform to deliver relevant content to attract/build loyal followers instead of paying someone else to interrupt their audience with ads (thus, marketers must now think like a publisher)

Digital media is about “who” -- not “how many”