Digital Marketing Trends, 2013 & Beyond

DIGITAL MARKETING TRENDS
2013 & BEYOND
29 AUGUST 2013
NATHALIE MORRIS
MANAGING DIRECTOR
MATT WESTERMAN
DIGITAL ENGAGEMENT SPECIALIST

As both the digital landscape and consumer
behaviour continue to evolve, we take a look at:
What are the 3 big trends shaping digital
marketing in 2013?

1.Smart use of data will drive the success stories of 2013
2.Mobile usage is shaping consumer behavioural change
3.Content (marketing) is king

1.Smart use of data will drive the success
stories of 2013
Smart use of data makes our messages relevant to the consumer, giving
cut-through in an increasingly cluttered environment

 In this digital age, almost every customer interaction is captured or
measurable in some shape or form.
 Data allows us to get the right message at the right time.
 As companies adopt smarter use of their data, there will be a shift
towards more frequent, highly targeted campaigns to smaller segments
of customers.

AMAZON.COM
SMART USE OF DATA IN ACTION

AMAZON.COM
After browsing a specific product
category on Amazon.com without
making a purchase, a targeted data
driven email campaign is initiated.

AMAZON.COM
After tracking that the first email had
been read, and more products
subsequently browsed on the website,
the customer receives an upsell
competition email.
Automated programmes can leverage
customer interaction with components
of the programme. i.e. if the customer
read the email, and clicked on this offer,
then it’s highly likely they will be
interested in this email.

AMAZON.COM
This is followed by other emails:
• Recommending cameras of a
different brand.
• A ‘Deal of the day’ relating to the
same product category.

AMAZON.COM
The remaining components of the
programme included:
 Most popular similar products
 Holiday specific offers
 Product cross-sell package offers
While this programme is contact heavy,
it is highly targeted and delivered at a
time when there is a high likelihood of
purchase.
119%
THE CLICK-THROUGH RATE ON
TRIGGERED MESSAGES IS 119% HIGHER
THAN “BUSINESS AS USUAL” MESSAGES.

AIR NEW ZEALAND (UK)
INCREASED RELEVANCE THROUGH PERSONALISATION
“Personality Allowed” campaign consists of pre-flight
and post-arrival emails to passengers containing a
information specific to the customers itinerary.
Clever use of data combined with dynamic content
creates a personalised experience for the customer.

Contains location specific and
relevant content for the customer
Weather information for the destination
country dynamically pulled into the email
One of the flight staff team working
on the actual flight adds a personal
touch to the body of the email
The message is delivered to
the customer when interest is at
its peak

 Pre-flight emails:
69% open rate
38% click rate
 Post-arrival emails:
62% open rate
40% click rate
“Incredibly positive feedback from customers and
crew”

Across the globe, companies
characterize themselves as “data
driven”, but most still see big
gaps and opportunities in how
they utilise data.
Collecting the information is one
thing, making effective use of
this data is another.

 If you don’t know where to start, start small and build your efforts over
time.
 Consider data you already hold, or can easily collect and store
 Start targeting and personalising with a few segments to test and learn.

Another good example of using
data to deliver relevance

MICROSOFT XBOX EDM
Microsoft deliver some fun relevant content to members - a
customer’s playing history is compared against interesting
world-wide usage statistics.

MICROSOFT XBOX EDM
Data driven content can have its
pitfalls.
In this example there is a fairly
underwhelming statistic.

TARGET (USA)
THERE IS SUCH A THING AS TOO GOOD
Every time you shop, you share intimate
details about your consumption
patterns with retailers.
Target has been collecting and analysing
this detailed information for decades.
They are just so good at it now that
they know whether you have a baby on
the way well before you start buying
nappies, and a good guess as to what
sex too.

TARGET (USA)
HOW THEY DID IT
By researching the purchase habits of customers that had signed up for Target Baby
Registers across the country they discovered common purchase patterns at certain
stages of pregnancy, e.g:
• A lot of people buy lotion, but they noticed that a lot of woman on the baby register
seemed to buy large quantities of unscented lotion around the beginning of their
second trimester.
• They also load up on supplements like calcium, magnesium and zinc.
“Take a fictional Target shopper named Jenny Ward, who is 23, lives in Atlanta and in
March bought cocoa-butter lotion, a purse large enough to double as a diaper bag, zinc
and magnesium supplements and a bright blue rug. There’s, say, an 87 percent chance
that she’s pregnant and that her delivery date is sometime in late August.” – Target
analyst
Target have since adjusted their marketing offers to include false positives specifically
to give customers the illusion that they don’t know exactly what you want.

2.Mobile usage is shaping consumer
behaviour change
As the penetration of smartphones continues to grow, consideration of the
mobile experience is becoming increasingly important

2.Mobile usage is shaping consumer behavioural change
• The amount of time spent with mobile is growing at 14 times the rate of desktop.
Mobile is picked to exceed desktop usage in the coming years.
• It’s not just the time spent on mobile that is important, it is the growing range of
activities that consumers are undertaking that are shaping how consumers interact
with brands.
• Consumers aren’t just reading emails on their phones, there is a steady rise in
search activity, product research, and mobile commerce.
• There is a steady progression towards the “Constantly Connected Consumer”.

 In 2012, smartphone penetration
in New Zealand was already sitting
at 44%.
SMARTPHONE PENETRATION:
THE IMPACT ON CONSUMER BEHAVIOUR
Source: Google/Sterling Research/SmithGeiger, July 2012.

 71% of NZ smartphone owners
have sent or read email on their
smartphone in 2012. This was the
most popular activity.

EMAILS READ ON MOBILES
Source: Google/Sterling Research/SmithGeiger, July 2012
0%
5%
10%
15%
20%
25%
30%
35%
40%
Ubiquity Smartphones Ubiquity Mobile Devices

MOBILE OPTIMISATION BECOMES ESSENTIAL

 Figures for searching and browsing
online are very close behind email
in terms of smartphone activities.
 29% of NZ smartphone owners had
purchased a product/service
online.

Source: Google/Sterling Research/SmithGeiger, July 2012
Sources: Google/Sterling Research/SmithGeiger, July 2012. eMarketer, Oct 2012
WITH THE ADOPTION OF SMARTPHONES COMES
CHANGES IN CONSUMER EXPECTATIONS
 Mobile optimisation is becoming the norm, and as
consumers expectations change, the penalty for not
optimising increases significantly.
 According to a 2013 BlueHornet annual research
report, 80% of consumers say they will immediately
delete an email if it isn’t mobile optimised. This is a
10% increase on 2012.

MOBILE OPTIMISATION:
HOLDING CONSUMERS HOSTAGE
WHY DID YOU PERSEVERE?
 “Because when I use my mobile I
really need what I am looking for
– not just looking around!”
 “Lack of motivation to search for
another site, at the risk of getting
the same result.”
 “Because I wanted to see the sale
items. But often won’t click
through to sites on mobile
because I know the experience
isn’t great.”

MOBILE OPTIMISATION:
HOLDING CONSUMERS HOSTAGE
 Mobile optimisation is
increasingly critical as
consumers spend more of their
online time on mobiles.
 Consumers can easily move on
to a site that supports a better
user experience.
 Currently consumer
expectations are low, but this
will change quickly.

Consumers are increasingly shutting off the traditional world of
marketing, rendering it less effective.
Enter content marketing.

“Your customers don’t care about you, your products, your services…they
care about themselves, their wants and their needs. Content marketing
is about creating interesting information your customers are passionate
about so they actually pay attention to you. “
The key trend that is emerging is companies promoting
information instead of the company itself.

The primary goal of these strategies
are to drive pre- and post-sales
activity.
Google’s ‘Zero Moment of Truth’
research finds that consumers need
twice as many sources of
information before making a
decision than they did just one year
ago.

The traditional web and email
channels remain the most
prominent in terms of delivery of
content marketing activities (83%).
Companies are also starting to
branch out to other delivery
platforms to increase their reach.

With the continual rise of content marketing, this leads to an exponential growth
in the number of consumer interactions with a brand…Consumers are beginning
to expect this type of direct conversation.
Social and other network channels provide the perfect vehicle to amplify both
content reach and ROI.
The key challenge is to create authentic content that is going to deliver real value
to consumers.

FOOD FOR THOUGHTFood for thought: McDonald’s Canada challenge
traditional thinking
 The “Our Food, Your Questions” program invites any Canadian to
ask any question whatsoever about McDonald’s food.
 Historically companies would actively avoid this type of open
ended direct contact with customers…BUT…the rules are changing.
 To ask a question, participants must connect with either Twitter or
Facebook, providing social visibility and a ripple in the pond effect.

FOOD FOR THOUGHT“When you say 100% beef, do you mean the whole cow, the
organs, snout, brain, kidneys, etc. or just the plain beef we buy at the
grocer?”
“Hi Jani. We wouldn’t call it plain
beef, but it sure is beef. We only use
meat cut from the
shoulder, chuck, brisket, rib
eye, loin and round. In fact, our
beef supplier is Cargill, a name you
might recognize. They’re the
biggest supplier of beef in Canada.”
“How much Kangaroo meat is in each hamburger?”
“None, Michael. There is absolutely no kangaroo meat in each
hamburger. Not at McDonald's Canada. Not even at
McDonald's Australia. Their burgers are just upside down. “

FOOD FOR THOUGHT
The results of this campaign:
20,000 questions answered.
2.3 billion social impressions.
13 million video views.

ABOUT UBIQUITY
BRINGING CUSTOMERS CLOSER
 Ubiquity helps New Zealand’s leading
brands acquire and retain
customers, generate leads and increase
sales, and grow advocacy using data
driven digital marketing.
 Whatever your marketing goals, Ubiquity
can assist your team to translate strategic
objectives into tactical online activities
that deliver real, measurable results.
 We do this through our Engage digital
marketing platform along with a range of
related services tailored to your needs.

UBIQUITY ENGAGE
DATA-DRIVEN DIGITAL MARKETING
Engage is an integrated marketing suite powered by your
customer data:
 Support for highly personalised outbound messaging via
email, SMS, personalised landing pages and in-app
notifications.
 Capture data through online surveys, web forms, SMS
and social media integration.
 Run trigger-based and automated programmes.
 Set up multi-channel campaigns and programmes.
 Understand and connect with customers like never
before with a single customer view.

FOR MORE INFORMATION
CONTACT US
NATHALIE MORRIS, MANAGING DIRECTOR
Phone: 09-303 9374
Mobile: 021-224 5333
Email: nathalie@ubiquity.co.nz
MATT WESTERMAN, DIGITAL ENGAGEMENT SPECIALIST
Phone: 09-303 9377
Mobile: 027-878 2997
Email: matt@ubiquity.co.nz

Digital Marketing Trends, 2013 & Beyond

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