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Report: Digital Transformation and the New Customer Experience

Brian Solis

We’re under attack! Social, mobile, real-time, cloud, big data…it’s coming at us all at once! Rather than miss out, many brands are jumping from trend to trend as a way of staying relevant in an increasingly digital market.

Facebook, Twitter, Youtube, Foursquare, Instagram, Pinterest…we’re covered. We have and had a strategy for a while now.

Mobile. Yep, we’ve got an app for that…plus we’ve got adaptive and responsive web design that makes old sites new again!

Snapchat…our brilliant strategy vanishes in 5,4,3,2,1.

Jelly? We’ve got the answer.

Whisper, Secret…shhh, don’t tell anyone, but we’re already marketing there.

There’s a difference though between marketing AT people in new channels and learning about their behavior, values, and expectations to optimize their digital experiences and introduce mutually-beneficial outcomes.

Social, mobile, and real-time strategies are not enough. These disruptive technologies are merely just the beginning of a still shaping era of connected consumerism.

Each in its own right is significant affecting how business is done. But customer behavior and expectations, and that of employees for that matter, continue to evolve. And, the list of disruptive technologies that’s pushing business leaders and processes out of their respective comfort zones is far more exhaustive and constant.

Continue reading…

5 Behaviors of Digital Performance

CIO Dashboard

In our 2014 Digital IQ survey of almost 1,500 business and technology executives, only 20% of respondents are highly confident in their organization’s Digital IQ—a company’s acumen in understanding, valuing and weaving technology throughout the enterprise.

How can a company raise its Digital IQ and harness the full power of technology to advance their business performance? Top performers—companies that reside in the top quartile for revenue growth, profitability, and innovation—point the way.

We analyzed the responses of top performers to understand what they do differently to fuse business and technology. For top performers, digital isn’t window dressing or corporate speak. Digital is a way of life. Following are five key best practices that top performers employ to outdo the competition:

1. CEO is the Digital Leader

81% of top performers say their CEO is an active champion of using information technology to achieve business goals, compared with 68% of other companies. Executives tell us that CEO involvement in shaping strategy provides them with a competitive advantage. Once the company determines its digital strategy, the CEO must define clear roles, accountability, and governance for how the strategy is executed. The scope should address who is responsible, and how the functional or business unit leaders will work together—for example, what the CMO is responsible for in a customer initiative, what the CIO does, and together what they will deliver and when.

2. CMO and CIO are Collaborative Partners

The CIO and CMO relationship is critical to success because many digital technology initiatives are driven by marketing needs. 70% of top performers say their CIO and CMO have a strong relationship, compared with just 45% of the pack. The growth in digital marketing spending, often independent of IT, has led to debate among industry analysts about whether the marketing organization will soon yield more spending power than the IT department.

Click to continue reading the five key best practices

Digital advertising hits $43B, passing broadcast TV for the first time ever

VentureBeat

This past year, digital advertising online and via mobile crossed the $40 billion mark for the first time ever, according to the Internet Advertising Bureau. Since 2004, the average growth rate has been 18 percent. And this year, digital ad revenues surpassed broadcast television for the first time.

Not shockingly, mobile is leading the charge.

Search remains the largest overall category, at $18.4 billion, and display hit $7.9 billion, according to the IAB’s numbers, but those categories are growing much slower than mobile and digital video ads. Search is “only” growing at 8.6 percent, while mobile ad revenue jumped 110 percent to $7.1 billion last year, and digital video ad revenue has tripled over the past few years to $2.8 billion.

It’s important to note that, while web and mobile advertising revenues beat out broadcast TV for the first time, broadcast + cable advertising revenues still dwarf the digital take. And, of course, networks are aggressively expanding to new digital means of distribution.

While the digital ad market is expanding, it’s also extraordinarily concentrated — perhaps more so than any advertising market since there were just three TV networks.

Read more…

For Facebook, Measuring Across Devices And Apps Is A Huge Focus

AdExchanger

Facebook is increasingly focused on connecting audiences across screens and channels, and helping clients measure those results.

Graham Mudd, the company’s director of advertising measurement for North America, described aspects of the company’s approach to AdExchanger at the IAB’s Mobile Marketplace conference.

“We believe the future of marketing is being able to find specific consumers based on what the publisher, advertiser or intermediary knows about the consumers,” Mudd said. “And [to do that] we need to move beyond panels and cookies to census-based measurements.”

Instead of relying on consumer panels, which Mudd said fail to provide the necessary scale to measure diverse audiences across channels, Facebook is focusing on a combination of CRM data and third-party data from companies like Datalogix, Acxiom and Epsilon to help clients enhance their measurement capabilities.

Mudd also confirmed that the new “people-based measurement capability” that Facebook ads product VP Brian Boland alluded to in an AdAge op-ed will include partnerships with other data providers, although he declined to name the providers.

Facebook uses Nielsen’s Online Campaign Ratings (OCR) and Datalogix to measure the effectiveness of ads on both Facebook and Instagram, even though the latter is positioned as a separate brand and service. The company does not however, target users with ads based on data collected from both Instagram and Facebook.

Continue reading…

Programmatic, mobile boost adspend

Warc

LONDON: Global advertising expenditure is forecast to grow steadily over the next three years, according to new data from ZenithOptimedia which also highlighted the growing impact of programmatic and mobile.

Figures in the media agency’s latest Advertising Expenditure Forecasts report show growth in adspend at 3.9% in 2013 but increasing to 5.5% in 2014, 5.8% in 2015 and 6.1% in 2016.

This year’s figures will be helped by a series of ‘semi-quadrennial’ events – the Winter Olympics, the football World Cup, and the mid-term elections in the US – as well as the eurozone finally turning the corner to achieve its first year of growth since 2010.

While growth in the eurozone is expected to be a modest 0.7%, that will change as more countries stabilise – Finland, Italy and Greece, for example, are behind the curve – and adspend growth will accelerate to 1.6% in 2015 and 1.7% in 2016.

ZenithOptimedia noted that television remained the dominant advertising medium, attracting 40% of spend in 2013, nearly twice that taken by the internet (21%), and would gain most from the semi-quadrennial events, growing 5.2% in 2014.

But the internet was by some distance the fastest-growing medium, up 16.2% in 2013 and forecast to increase at a similar annual rate (16%) for the next three years.

The fastest-growing sub-category was display (21%), which was predicted to overtake paid search (13%) in 2015.

Traditional display (banners and other standard formats) was growing at 16% a year, boosted by the revolution in programmatic buying, which, said ZenthOptimedia, provided agencies and advertisers with more control and better value from their trading. Social media (growing at 29% a year) and online video (23% a year) were also starting to benefit from programmatic buying.

The rapid adoption of smartphones and tablets was driving a boom in mobile advertising, projected to increase at an average of 50% a year between 2013 and 2016. In contrast, desktop internet advertising was slated to grow at an average of just 8% a year.

Over the same period, mobile’s share of the market was set to more than double, from 12.9% of internet expenditure and 2.7% of advertising across all media to 28.0% and 7.6% respectively. In doing so it would become bigger than radio, magazine or outdoor, making it the world’s fourth-largest medium.

Google looks to push Glass into the enterprise

Computerworld

Google is looking to push its wearable computer Glass into the enterprise.

With the Glass at Work program, Google is trying to make it easier forcompanies to begin using the wearable computers for their business.

“In the last year we’ve seen our Explorers use Glass in really inspiring and practical day-to-day ways,” the Google Glass team wrote on its Google+ page. “Something we’ve also noticed and are very excited about is how Explorers are using Glass to drive their businesses forward.”

The Washington Capitals, Washington D.C.’s hockey team, has already been working with fans who use Glass, Google noted. The Capitals partnered up with APX Labs to create a Glass app that allows the team’s fans to see real-time stats, instant replays and different camera angles.

The hockey team may be a good example of how businesses can take advantage of Glass, or any upcoming wearable, according to Patrick Moorhead, an analyst with Moor Insights & Strategy.

“My contention has always been that wearables are a best fit for vertical applications,” he said. “I think this is good news and I think companies will use this program. It is Glass’ best shot so far at an ecosystem. In these vertical usage models, it’s more about getting the job done versus looking cool to your friends.”

Moorhead also noted that with Google trying to push Glass into the enterprise, it might signal the company’s realization that building out a horizontal platform will be more difficult than once thought.

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Millennials Trust User-Generated Content 50% More Than Other Media

Mashable

It seems as if millennials have avoided traditional media ever since they learned how to read.

The results of new research by marketing startup Crowdtap and the global research company Ipsos shed new light on how the connected generation gets its news. When it comes to trust, it turns out, millennials almost always choose their peers over professionals.

User-generated content (UGC) is media created by your peers. It includes status updates, blog posts and restaurant reviews — any content from non-professionals without any real motivation besides adding an opinion to the sea of already existing opinions. In a more logical world, it isn’t the type of content we’d trust over a professional’s review.

Ipsos’ study, however, reveals that millennials trust UGC just as much as professional reviews. UGC is also 20% more influential when it comes to purchasing and 35% more memorable than other types of media. You can chalk that up to the fact that millennials spend five hours per day with UGC.

The infographic below gives the visual breakdown of how much time millennials are spending with UGC, where they’re getting it and how it’s affecting the media landscape.

Click to see infographic

New Expectations for CMOs

IDG Connect 0811 New Expectations for CMOs

In a new CMO report from Deloitte and Salesforce ExactTarget Marketing Cloud, the 5 new CMO expectations were discussed. The 5 expectations were:

  1. Take on Topline Growth
  2. Own the Customer Experience
  3. Dig Into Data-Based Insights
  4. Operate in Real Time
  5. Master the Metrics that Matter

Are CMOs ready to face these expectations? Not really, but they’re getting there. 53% of CMOs feel the pressure to enable revenue growth, but they struggle because they don’t completely own the conversion path. This has been one of the bigger problems that CMOs are facing; they have to work across functions in order to get things done. This comes into play with the customer experience, too. CMOs now own the largest share of the customer journey, but they need to work with product and service teams in order to create an optimal customer experience across all channels. There’s no doubt that CMOs are feeling the pressure of the digital era, but with that comes big opportunity for growth and the ability to reach all of these high expectations.

Continue reading…

The rise of mobile apps and the decline of the open web — a threat or an over-reaction?

Gigaom

As the use of mobile devices continues to climb, the use of dedicated apps is also increasing — but is this a natural evolution, or should we be worried about apps winning and the open web losing? Chris Dixon, a partner with venture-capital firm Andreessen Horowitz, argues in a recent blog post that we should be concerned, because it is creating a future in which the web becomes a “niche product,” and the dominant environment is one of proprietary walled gardens run by a couple of web giants — and that this is bad for innovation.

Dixon’s evidence consists in part of two recent charts: one is from the web analytics company comScore, and shows that mobile usage has overtaken desktop usage — an event that occurred in January of this year. The second chart is from Flurry, which tracks app usage, and it shows that apps account for the vast majority of time spent vs. the mobile web, an amount that Flurry says is still growing. I’ve combined the two charts into one (somewhat ugly) graphic below:

If apps are winning, is the web losing?

The implication of all this is obvious, says Dixon. Mobile is the future, and what wins on mobile will win the internet — and “right now, apps are winning and the web is losing.” Not only that, but Dixon argues that the problem is likely to get worse, as more companies realize that an app gives them much more control over the user experience than a website. And with less and less investment in making the web experience better on mobile, it will continue to deteriorate, which in turn will push users even further towards the use of apps.

Continue reading…

(Re)defining multimedia journalism

Medium

There’s no consensus among journalists about what the term multimediameans, or even whether to use it anymore.

The multimedia skills listed in a job advertisement might span a range of specialties from web developer to videographer. Some ads specify “proficiency in multimedia” with no further explanation. A 2013 ad seeking a multimedia producer was more precise: “Your core duties will involve a variety of multimedia — audio, video, photos, informational graphics, and motion graphics — to support our core news content.”

“One of the most pressing needs mentioned by journalists in various countries was the acquisition of new multimedia skills,” according to findings from a recent study that surveyed more than 29,000 journalists around the world.

Despite the continuing use of the term multimedia, not every journalist thinks it should be used nowadays. Eric Maierson, a producer at MediaStorm since 2006, hates the word multimedia. There is irony in that, because until recently, MediaStorm called itself a “multimedia production studio.” However, Maierson explained: “I believe ‘multimedia’ is the word we’ve come to use when describing photographers who make documentaries.” (Nowadays MediaStorm calls itself a “film production and interactive design studio” and produces mostly video documentaries. Past projects include Crisis Guide: Iran, a good example of pre–“Snow Fall” multimedia.)

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