Digital Marketing: A HorizonWatching 2014 Trend Report

© 2014 IBM Corporation
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any
particular technology or solution.
Contact: Bill Chamberlin, Principal Emerging Trends Research Analyst / HorizonWatching Community Leader
February 6, 2014
Digital Marketing
A 2014 HorizonWatching Trend Report – Client Deck

IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
This Trend Report, published by and for the internal IBM HorizonWatching
Community Membership, is being made available to IBM Clients
 Purpose: This HorizonWatching Trend Report provides an overview on the
Digital Marketing trend for IBM Clients
 Content: Summary information about the trend is provided along with many
links to additional resources.
 How To Use This Report: This report is best read/studied and used as a
learning document. There are many links provided in the report that will take you
to other websites and resources where you can continue your learning. You
may want to view the slides in slideshow mode so you can easily follow the links
2 Digital Marketing: A 2014 HorizonWatching Trend Report (Client Ready)06 Feb 2014

Table of Contents
1. One Page Summary of the Digital Marketing Trend
2. Digital Marketing Trends to Watch in 2014
3. What Others Are Saying About Digital Marketing for 2014
4. Websites, Reports, and Additional Resources
5. Appendix

Table of Contents
5. Appendix

Digital Marketing – Trend Overview
Drivers
• New digital technologies, platforms, and capabilities
• Consumerization = increased customer expectation /
demands
• Indivduals want to be treated as individuals, not markets
Inhibitors/Challenges
• Big data
• Metrics, analytics, and ROI of the digital marketing programs
• Allocation of budget to digital and finding the right marketing
mix.
• Unifying and integrating within digital and also with
traditional.
• Innovation in digital happens at lightening speed
• Lack of qualified digital marketing technology professionals
Implications
• To stay out in front, you must test and learn quickly
• Marketing and IT departments must be good partners
• New Digital Marketing Career Paths and Education
required
• Digital, done right, can increase loyalty and convert
customers into brand advocates
Marketing is being transformed by digital technologies. The digital revolution has forever
changed the balance of power between the customer and the organization, putting customers
in charge of the relationship.
“The digital revolution
has forever changed the
balance of power
between the individual
and the institution” - IBM
(link)
Forbes: Taking Content Marketing To
The Next Level: 2014 Predictions

Table of Contents
5. Appendix

Digital Marketing Trends to Watch in 2014
1. Digital Experience: Optimizing the cross-channel
customer digital experiences.
2. Predictive Analytics: Data from Social, Customer,
Mobile, Web, Iot, etc. is analyzed to help improve
digital experiences and predict customer behavior.
3. Influencer Marketing: Identifying and cultivating
influencers into advocates.
4. Advocacy Marketing: Managing positive
relationships with those who are already advocates for
your brand.
5. Employees as Advocates: Employees can help
market the brand via social media. Training required
though!
6. Thought Leadership Content: Expect more
thought leadership content that focuses on educating
customers rather than selling to them. Blogging
continues to make a comeback.
7. Content Marketing: All content must be compatible
across all screens and distributed across all social,
mobile, digital platforms.
“IDC predicts that by 2020, marketing
organizations will be radically
reshaped into three organizational
"systems" - content, channels, and
consumption (data). The core fabric of
marketing execution will be ripped up
and rewoven by data and marketing
technology.” - IDC (link)
IDC: 2014 Predictions for Chief Marketing Officers
Source: HorizonWatching, IBM Market Insights

Digital Marketing Trends to Watch in 2014 (cont.)
8. Mobile Marketing: Marketers need to be
discoverable, mobile optimized, and investing in
driving mobile traffic.
9. Location-based Marketing: Potential is there to
deliver a highly personalized experience based on
location. In 2014, marketers will tap more into this
emerging technology.
10. SEO Marketing: Keyword relevancy is being
replaced with topical relevancy and authority. Brands
that use semantic search will show up highest in
search results.
11. 1-1 Personalization: Customers want to be
treated as an individual, based on their past
experiences with the company, the device they are
using, what location they are currently at, and what
information they are seeking at the moment.
12. Digital Skill Shortages: Marketing
professionals continue to need training to fully
leverage all the trends happening.
Forbes: 2014 Digital Trends and Predictions
Source: HorizonWatching, IBM Market Insights

Table of Contents
5. Appendix

Digital Marketing budgets are expected to rise in 2014, continuing a
trend we’ve seen the past few years.
AdWeek: B2B Marketing Budgets
Set to Rise 6% in 2014: Forrester
“Digital marketing budgets will rise by 10% in 2014
following a double-digit percentage increase the prior
year” - Gartner (link)
“Enterprises overwhelmingly plan to continue investing in
DX (Digital Experience) technologies, with a clear
emphasis on multichannel delivery and analytics” -
Forrester (link)
“Digital marketing techniques and underlying technologies are having a profound impact in
marketing investment priorities, budgets, organizational structure, skills and processes.” - Gartner (link)
“Sixty-one percent of surveyed marketing execs expect
the ratio of technology spend to marketing program
spend to increase.” - Business Marketing Association (link)
“Hampering growth in digital marketing budgets is that old foe: inability to prove ROI. Roughly one-quarter
of respondents named that the top barrier to budget increases, outpacing other concerns such as lack of
overall company revenue growth (18%), lack of buy-in from management (15%), and lack of clear
strategy (15%).” – Marketing Charts (link)

Gartner says the shift to digital will transform marketing and sales
processes over the next five years.
“In the next five years, traditional
marketing and selling will shift to digital
channels to capitalize on the "power to
the people" phenomenon that is
displacing brand-centric strategies in
favor of buyer-driven everything.” –
Gartner (link)
Gartner : Digital Marketing Predicts 2014 (Slide Deck)
Gartner: Digital Marketing Predicts 2014

IDC’s message is a little stronger. It is predicting a radical
transformation of the Marketing function by 2020
1. The CMO role becomes "open for definition" as today's CMO job description becomes considerably more complex and
critical
2. Innovative CMO and CIO pairs will throw out the rule book when it comes to IT's support of Marketing
3. By 2020, the Marketing function in leading companies will be radically reshaped into three organizational "systems" -
content, channels, and consumption (data)
4. The best marketers will understand that "Content Marketing" does not equal "Thought Leadership“
5. Multi-channel coverage becomes an opportunity and a challenge area, as CMOs integrate media silos
6. 80% of customer data will be wasted due to immature enterprise data "value chains“
7. By the end of 2014, 60% of CMOs will have formal recruiting process for people with data skills
8. Only 20% of marketers will receive formal training on analytics and customer data management
9. Fragmented marketing IT point products and low adoption rate will inhibit companies' ability to win customers
10.Digital marketing investment will exceed 50% of total program budget by 2016.”
IDC Webinar: IDC Chief Marketing
Officer (CMO) 2014 Predictions:
IDC Press Release: Top Ten Predictions for Chief Marketing Officers
“By 2020, the Marketing function in leading
companies will be radically reshaped into three
organizational "systems" - content, channels, and
consumption (data).” - IDC (link)

IBM’s State of Marketing 2013 Survey: Only 1 in 5 companies are
truly leveraging technology to drive better customer experiences
“The IBM State of Marketing 2013 survey showed
that, when it comes to creating superior customer
experiences, many companies have at least some of
the elements in place. Yet only one in five has
managed to leverage its technology investments and
marketing capabilities to effectively drive better
cross-channel customer experiences.” – IBM (link)
“A number of leading companies, however, are using
marketing technology and information resources to
take charge of the customer experience from end to
end, “owning” it to improve business outcomes and
achieve better financial performance.”- IBM (link)
How Marketing is Taking
Charge - IBM

The transformation of marketing is challenging as it requires new
strategies, new skills, and strong leadership
CMO.Com The Future Of Marketing:
Data, Customer, Technology
“Digital will require you to retool marketing processes, from market and product design through
commerce.” - Gartner (link)
“IDC predicts that by 2020, marketing organizations will
be radically reshaped. The core fabric of marketing
execution will be ripped up and rewoven by data and
marketing technology.” - IDC (link)
“Digital marketing technology, data analytics, social, customer experience management and
revenue responsibilities have catapulted CMOs into a dramatically different role.” - Gartner (link)
“Far too many digital marketing activities are one-off or
stand-alone initiatives that are not part of a
comprehensive strategy and are not measured against
business goals.” - Gartner (link)
“As social and other digital technologies shift
responsibilities in the C-suite, businesses are creating a
new position, the chief digital officer or CDO, to focus
their digital strategy.” - MIT Sloan Management Review (link)

Many firms don’t currently have the digital skills and capabilities that
are required to make a successful transformation
Online Marketing Institute - State of
Digital Marketing Talent
“Digital marketers must use technology to drive marketing processes, then analyze the results and
readjust their focus. They need new skills, tools and processes to create this virtuous cycle.” - Gartner (link)
“Successfully leveraging digital technology requires deep understanding of the nuances of digital
marketing, eCommerce, customer experience design, and technology.” - Forrester (link)
“Gartner surveys find that for many organizations,
digital marketing execution often suffers from
operational immaturity. Execution suffers when
people, process and technology aren't in
alignment.” – Gartner (link)
“The gap between skills needed and talent
available is becoming a massive chasm within the
industry affecting job seekers and employers alike.”
– Online Marketing Institute (State of Digital Marketing Talent)

Also, the marketing technology landscape is crowded and complex,
making the transformation all that more difficult
Infographic: Marketing Technology Landscape by chiefmartec.com

At the heart of the transformation must be a focus on improving the
overall Customer Experience
10 Challenges to Delivering a Unified
Customer Experience - CriticalEye
“Successful companies will use technology to
better engage customers as well as improve
traditional marketing processes.” - Gartner (link)
“Firms that are winning the customer experience
race are aiming to provide their customers with
consistent, personalized, and contextually
relevant interactions across all touchpoints.” -
Forrester (link)
“Successful companies are exploring how new
technologies can reach and engage customers
at every stage of the customer lifecycle.
Marketing, service, sales, web, email, and more
must now work together to drive desired
experiences, optimize click paths, cultivate
meaningful relationships, and drive business
outcomes.” - Altimeter Group (link)
Engage customers by delivering
personalized digital experiences - IBM
Whitepaper available at InformationWeek

The growth in mobile devices provides marketers with a whole new
way to reach potential buyers …where ever they may be
TapSense: Guide to Mobile
Marketing 2014
“Mobile computing will revolutionize marketing by exploiting
rich information about where customers are and what they
are doing.” - Gartner (link)
“The proliferation of new form factors and touchpoints has
companies struggling to create digital experiences that meet
rising customer expectations.” - Forrester (link)
“Businesses need an array of software technology to support digital customer experiences, but they
struggle to understand and leverage the tools necessary to create and manage unified, multichannel
digital customer experiences across multiple touchpoints.” - Forrester (link)
Mobile Marketing Association:
UK Advisory Board 2014 Mobile
Predictions
“Not only are mobile devices popular and packed with an
ever-growing array of applications, their built-in GPS
technology makes them ideal for location-aware promotions
and location-based targeting.” - IBM (link)
“Mobile technology leaders are 2x more likely to experience
revenue growth.” – IBM (link)

Future marketing organizations must learn how to leverage big data
and analytics to drive all marketing programs
Marketing Science: From descriptive to
prescriptive – IBM Center for Applied Insights
“As websites, media and digital advertising become
personalized, digital marketers are under pressure to apply
more science to the art of marketing.” - Gartner (link)
“Gartner's 2013 Data-Driven Marketing survey reveals that marketers allocate 21% of their budgets
to marketing analytics. Almost half of the data (42%) comes from external sources, with social
networks topping the list.” - Gartner (link)
“Progressive marketers are turning to science. They’re
using systematic observation, testing and measurement to
study broad behavioral patterns, drill down from the
aggregate to the individual and produce new insights that
can improve business outcomes.” - IBM (link)
IBM: Big Data & Analytics for Marketing
“Big Data is the biggest game-changing opportunity for
marketing and sales since the Internet went mainstream
almost 20 years ago, particularly because of the
unprecedented array of insights into customer needs and
behaviors it makes possible.” - McKinsey (link)

Content Marketing is becoming more important to marketers as a
way to develop and strengthen relationships with customers
Content Marketing Institute: 50 Content
Marketing Predictions for 2014
“For 2014, the B2B marketing portfolio should
include focusing content creation on thought
leadership versus product collateral.
B2B CMOs will need to direct content marketing
efforts on delivering new commercial insights,
inspiring customer stories, or forward-looking
viewpoints to provoke buyer engagement.” –
Forrester (link)
“Our research indicates that as
aggressive as companies intend to
be in 2014 to increase their content
marketing footprint, many will fail
due to a lack of content leadership
and the process and technology
needed to support an effective
content supply chain.” – Curata (link)
“Content marketing is really about providing
valuable information or content to current and
potential customers for the purpose of building
trust, branding, awareness, and positive
sentiment. A successful content marketing
campaign establishes you as an expert in your
field, and that sets the groundwork for a long-
term business relationship.” – Forbes (link)

Social Marketing will continue to evolve in 2014 with an emphasis
on community management and engagement
“Over the next 12 months, the most sought-after
business initiative companies will look to social software
to provide will be online communities, with 35% of
respondents looking to this capability.” – IDC (link)
“For marketers, a good portion of social media’s value lies in its ability to aggregate communities of interest,
identify specific demographics and thus enable marketers to precisely segment and engage their audience.”
– IBM (link)
Forrester: Top Three Challenges
with Social Marketing
“ CMOs have been investing in staff, content, and
technology to market through social networks for the
past five years. 2014 is the year they reassess these
investments as audiences fragment across niche social
networks and communities.” – Forrester (link)
“At this more advanced stage of maturity, marketers need to understand exactly how and when their
customers are using social and target them differently in each stage of the customer life cycle.” – Forrester
(link)

In 2014, more emphasis will be placed on influencer and advocacy
marketing, including identification and engagement programs.
“Brands need to seek out influencers that can drive
and create very small, yet loyal communities to
advocate for their brand.” – Huffington Post (link)
WOMMA’s 2013 Influencer Guidebook
Huffington Post: 2014: The Year of the
Brand Influencer
“I strongly believe that Advocacy Marketing should
be at the top of the priority list in terms of marketing
investment.” – Hank Barnes, Research Directore, Gartner
(link)
“It’s estimated that less than 5% of satisfied
customers advocate publicly for the brand on social
channels. This “social advocacy gap” represents a
huge opportunity to improve marketing’s efficiency
and effectiveness.” – Social@Ogilvy (link)

Gartner’s “Digital Marketing Transit Map” shows relationships among
business functions, application services and solution providers.
Gartner: Interactive Digital Marketing Transit Map

Table of Contents
5. Appendix

Digital Marketing – Selected Analyst Websites and Resources
• Aberdeen: Marketing
• Booz&Co: Marketing / Booz Digital
• eConsultancy: Website
• Forrester: Marketing / Digital Marketing /
CMO / Customer Experience / Customer
Insights / Marketing Leadership / The
Social Marketing Playbook
• Gartner: Digital Marketing / Marketing
Blog Posts / Digital Marketing Blog Posts
• IDC: Marketing and 2014 CMO
Predictions Webinar
“Demand for digital media marketing
services has set the vast and varied
ecosystem of service providers on a
collision course.” - IDC (link)
“Results from the IDC CMO ROI Matrix clearly show that successful companies have high
performing marketing organizations.” - IDC (link)
Econsultancy: Digital marketing and
ecommerce trends for 2014 by
Econsultancy CEO Ashley Friedlein

Digital Marketing – Selected Media Websites and Resources
• AdAge: Digital Marketing
• AdWeek: Digital marketing
• Content Marketing Institute: Website
• ComputerWorld: Digital Marketing
• Digital Analytics Association
• Digital marketign Association
• Digital Marketing Magazine
• Direct Marketing News
• Edelman Digital: Website
• Forbes: Marketing, CMO Network
• Harvard Business Review: Digital Marketing / blogs tagged Marketing
• Hub Magazine: CMO
• MIT Sloan Management Review: Digital Marketing and Marketing
• The Guardian Digital marketing and 50 media trends and predictions for 2014 - interactive
• ZDNet: Digital marketing
The Guardian - 50 media trends and predictions for 2014
AdWeek – Digital Marketing

Digital Marketing – Selected IT Vendor/Consultant Websites and
Resources
• Accenture: Digital Marketing / CMO / Accenture
Interactive
• Altimeter: Search for Digital Marketing
• Deloitte: Digital Marketing / CMO
• IBM: Smarter Marketing and Enterprise Marketing
Management and Digital Marketing / CMO and Digital
Marketing Optimization and IBM Interactive and CMOs and
CIOs
• McKinsey: Digital Marketing, Digital Marketing Capability
Center
• Microsoft: Digital Marketing / CMO
• Oracle: Digital Marketing / CMO
• Razorfish: Website
• SAP: Digital Marketing / CMO
• SapientNitro: Website
• SAS: Digital Marketing / CMO
• Tata Consultancy Services: Digital Transformation
Solutions
• Wipro: Digital Marketing
IBM – Digital Marketing Network
Panel Video: Creating Value Building
Trust with Content Marketing

Digital Marketing – Selected Social Media Sites and Searches
• Google Blog Search: Digital Marketing / CMO
• Technorati Blog Tag Search: Marketing / CMO /
“Digital marketing”
• LinkedIn Group Search: “Digital marketing” / CMO
• Google+ Communities Search: Digital Marketing /
CMO
• Pinterest Search: “Digital marketing” / Marketing /
CMO / “Social media marketing”
• Twitter Search #digitalmarketing / #Marketing /
#CMO
• Tumblr Search: Digital Marketing / CMO
• YouTube: "Digital Marketing" and Digital Marketing
Channels
• YouTube: CMO and CMO Channels
• Wikipedia: Digital Marketing and Chief Marketing
Officer and Internet Marketing and Marketing
Analytics
Pinterest Search for Digital
Marketing

Digital Marketing – Selected ibm.com Resources and Links
• Press Release:
• IBM Launches Digital Marketing Network in the Cloud to Help
Companies Improve Marketing Performance in Real-Time
• IBM Interactive Named a Leader in Gartner Evaluation of Global
Digital Marketing Agencies
• IBM Unveils New Services to Accelerate Customer Engagement
Efforts for CMOs, CIOs
• Smarter Planet: Smarter Marketing
• Software: Enterprise Marketing Management /
Digital Marketing Optimization
• IBM’s Digital Agency: IBM Interactive
• CMO / CIO Leadership Exchange: THINK
Marketing
• IBM Customer Experience Lab
• Global Business Services:
• Marketing, Sales and Service
• CMOs and CIOs
• CMO Study
• CMO Leadership and Innovation
• Ibm.com Searches Digital Marketing / CMO
Smarter Marketing
Enterprise Marketing Management
IBM Interactive

Digital Marketing – Selected IBM Social Media Venues
Linkedin Groups: Smarter Commerce 12 / CMO Study on
LinkedIn / IBM EMM Connected
Twitter:
• @IBMInteractive
• @IBMSmrtCommerce
• @IBMEMM
• @IBMSocialBiz
• @IBMSmarterComms
• @IBMDesign
Twitter Hashtags #smartercommerce / #ibmemm
Blog: Digital marketing Optimization and IBM Interactive
Experience
Facebook: Smarter Commerce IBM Interactive
Pinterest: Smarter Commerce
YouTube: Smarter Commerce / Enterprise Marketing
Management
IBM Actionable Digital Analytics – via
IBMEMMChannel
IBM Marketing Execs on Twitter
• Jon Iwata, SVP, Marketing & Comm. @coastw
• Ben Edwards, VP, Digital Marketing @BenEdw
• John Kennedy, VP Marketing IBM GBS @johnlkennedy
• Shaun Jones, VP Marketing Business Partners @IBMPartnerPlan

Digital Marketing – Selected Reports and Other Resources
• The State of Marketing, 2013, IBM
• Global mobile statistics 2013, by MobiThinking
• Content Marketing Playbook, by Content Marketing Institute
• Recognize the Importance of Digital Marketing, Gartner
• Agenda Overview for Digital Marketing Essentials, Gartner
• Magic Quadrant for Global Digital Marketing Agencies, Gartner
• Webinar: 2014 Predictions for Chief Marketing Officers, by IDC
• The State of Digital Marketing for SMBs, by Vocus and Inc.
• Digital Distress: What Keeps Marketers up at Night?, by Adobe
• Big Data, Analytics, and the Future of Marketing & Sales - McKinsey
• IBM Social Analytics: The Science behind Social Media Marketing, by IBM
• Use Digital Marketing to Differentiate Yourself From Competitors, Gartner
• Key Findings From U.S. Digital Marketing Spending Survey, 2013, Gartner
• IDC Releases 2014 Predictions for Chief Marketing Officers, by IDC
• The Emergence of Chief Digital Officers, MIT Sloan Management Review
• Digital Marketing Landscape: The Power of Digital Experiences in 2014, by Demand Metric Research
• Create Your Own Buzz: The Promise and Practice of Digital Marketing, by Booz & Co.
• Marketing Science: From descriptive to prescriptive – IBM Center for Applied Insights
• U.S. Digital Marketing Budgets Average 2.5 Percent of Company Revenue, by Gartner
• Webinar Video: Current State of Data Driven Marketing An Inside View Webinar, by Teradata
IBM: The State of Marketing 2013,
IBM’s Global Survey of Marketers

Table of Contents
5. Appendix

Appendix: About The IBM HorizonWatch Community
 HorizonWatch is an IBM internal community in place since January 2001
 Our focus is on learning about and sharing our knowledge on emerging
trends, business issues, and technologies so we can
– Develop better strategies for the future
– Help our customers develop better strategies for the future
 For more on the internal IBM HorizonWatch Community send an email to Bill
Chamberlin, IBM HorizonWatch Community Leader at whchamb@us.ibm.com

Digital Marketing: A HorizonWatching 2014 Trend Report

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