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Adobe® 2012 Digital Marketing Optimization Survey Results Report




                              Top 5 conversion opportunities for
                              digital marketers
                              Optimization tactics for digital marketing impact


Table of contents             Strategic consumer engagement and conversion is the cornerstone of any profitable online business. Digital
1:	 Prioritize optimization   marketers are strongly focused on improving these to increase returns on marketing investments. However,
    as a strategic process
                              results from the Adobe 2012 Digital Marketing Optimization Survey indicate that there are still significant
3:	 Use a data-driven
    approach to
                              untapped investment opportunities to improve conversion through data-driven optimization.
    optimization
                              Adobe defines optimization as taking action on rich data and content to deliver the highest return on
8:	 Optimize conversion
    with video                marketing spend and efforts. For the purpose of this survey, we focus on conversion optimization—the process
9:	 Optimize all mobile       of monitoring conversion events on your website or mobile site from landing page through checkout to
    channels                  identify key areas that you can monetize immediately and those areas you need to enhance. Tools for
10:	Optimize social           optimizing conversion include multivariate testing (MVT) or A/B testing, targeting, recommendations, dynamic
    engagement                navigation, personalization, rich media, and site search.
11:	Summary
11:	About Adobe               The Adobe 2012 Digital Marketing Optimization Survey received global responses from more than 1,700
11:	For more information      digital marketers. The survey focused on business-to-consumer and business-to-business commerce across
                              retail, finance, media, technology and consumer goods industries. With expert contribution from marketing
                              authorities at ClickZ, this survey report focuses on key areas in which digital marketers need to excel in order
                              to ensure success: social, mobile, personalization, and customer experience.

                              Leveraging these best optimization practices can help digital marketers immediately improve conversion and
                              returns on marketing investment:
                              •	 Prioritize optimization across your organization as a strategic process
                              •	 Use a data-driven approach to optimization
                              •	 Optimize conversion with video
                              •	 Optimize all mobile channels
                              •	 Optimize social engagement

                              1.	 rioritize optimization as a strategic process
                                P
                              Despite the importance of digital optimization to conversion and marketing investment returns, survey results
                              demonstrate that 81% of respondents allocate 15% or less of their marketing budget to on-site optimization
                              efforts—up only 1% from our 2009 survey.1 While the digital marketing landscape has continued to evolve to
                              meet customers’ high expectations, there has been little change in investment to meet the demand with
                              marketing spend that really counts. Research shows that marketers spend $92 to acquire traffic and $1 to
                              optimize it. 2 Greater balance in investment between acquisition and optimization is needed to drive higher
                              returns.




                              1
                                  Omniture. 2009. Survey Provides Online Marketers With a Roadmap for Optimizing Conversion. www.omniture.com/press/730.
                              2
                                  Omniture. 2009. Survey Provides Online Marketers With a Roadmap for Optimizing Conversion. www.omniture.com/press/730.
What percentage of your marketing budget is allocated to optimization activities
(including agency and technology)?
              services, fees, professional services, and technology)?
              What percentage of your marketing budget is allocated to optimization activities (including agency fees, professional



                            51+%          3%



                          Did not         3%
                          answer

                          26-50%           4%



                          16-25%                 9%



                          11-15%                        13%



                           6-10%                                         21%



                            0-5%                                                                            47%



                                    0%            10%                   20%            30%         40%            50%




Who or what determines which promotion/marketing content is displayed on your site
and in your marketingcommunications?
                               communications?
             Who or what determines which promotion/marketing content is displayed on your site and
             in your marketing


       Metrics/performance based                      14%


                       No process                     14%


    Informal group of stakeholders                          17%


             Creative department                                         25%


         Head of online marketing                                                    34%


             Marketing executives                                                                          56%


                                     0%         10%               20%          30%           40%     50%          60%



While often slow to gain momentum initially, prioritizing optimization within an organization can make a huge
impact to the top- and bottom-line revenues. As industry analyst John Lovett notes, it’s not uncommon to see
double-digit lifts in conversion as a result of pragmatic conversion optimization achieved through several small
initiatives—for example, subtle adjustments in placement and messaging—not a large overhaul. This process
is especially true for organizations that are new to conversion optimization and for initiatives that typically
debut on inconsequential pages deep within the site. As these optimization initiatives have demonstrable
results of success, they begin to appear on more and more prominent pages. Companies that embrace
conversion optimization through small wins, combined optimization tactics, and acute focus are attaining
more conversions, establishing deeper customer loyalties, and asserting competitive advantage over their
peers. 3

To prove the value of digital experience optimization, ClickZ marketing experts recommend having someone
in another business unit identify a few areas where you can perform small tests aimed at optimizing your
digital marketing activities. By demonstrating small wins, a marketer can point to results and show how shifting
money from acquisition to optimization can either save money or generate new revenue.




                                                                               Adobe® 2012 Digital Marketing Optimization Survey Results Report   2
3
    Lovett, John. 2011. The Online Conversion Imperative. Adobe Systems Incorporated.
“A rate-limiting factor for   2.	 se a data-driven approach to optimization
                                 U
how often optimization
takes place is the band-       Marketers are investing a lot of time and money on visitor acquisition, but little on helping that visitor through
width to undertake the         the conversion funnel. Simply tossing customers into the queue through acquisition efforts is not enough to
analysis and draw action-      scale profitability.
able insights. The ability
to automate these activi-
ties through rules-based       Select the top five optimization strategies you intend to employ within the next year.
                                           None

                                                       Other
algorithms or technology
platforms is appealing,                 Attribution modeling                  8%

as it not only reduces          Automated recommendations                                      18%
the overhead required to
execute on optimization,                       On-site search                                         22%


but also tends to produce           Retargeting/remarketing                                                   26%

better results.”
                                        Behavioral targeting                                                   27%


                                     Audience segmentation                                                          28%
Julie Batten
VP strategy, media,                            Social sharing                                                             31%


Klick Health                                          Testing                                                                   33%


                                            Mobile analytics                                                                      35%


                                             Profile targeting                                                                          40%


                                       Social media analytics                                                                                             56%


                                           Website analytics                                                                                                            68%



                                                                 0%             10%               20%                 30%               40%         50%         60%       70%




                               Achieving desired conversion outcomes is based on the ability to zoom in on specific tactics within the funnel
                               for conversion optimization. Rather than evaluating customers in linear fashion, optimization requires a
                               reprioritization through establishing outcomes that focus on attention, engagement, and commitment at each
                               phase of the conversion process. By using a diverse set of analysis and optimization tactics, you can use a
                               data-driven approach to conversion optimization that is influenced by predetermined brand parameters.
                               Despite years of marketing experience and a good “gut feeling” for what works for conversions, no one will get
                               it right every time—adding data-driven automation to optimization tactics will help accelerate success.

                               These key focus areas can help organizations embrace optimization: content findability, automated
                               recommendations and cross-sells, testing, and personalization.

                               Content findability
                               Site search is about more than a generic search box that helps point website visitors in the right general
                               direction. Optimizing site search for efficient item or content discovery and findability is a business-critical
                               function. It is about guiding visitors to exactly what they want to find, enhancing overall navigation, and
                               providing an efficient path for users to meet their goals. It encourages visitors to regularly use search as an
                               engagement mechanism with the business, creating a dialog of expressed needs and intentions. Smart digital
                               marketers capture and leverage this explicit intent to present custom, personalized, relevant content.
                               Yet, the survey found that 53% of digital marketers do not optimize search results in any fashion—and if they
                               do, 26% of respondents report that it is more likely a manual process.
                                                                  How do you optimize the relevance of your on-site search results?
                               How do you optimize the relevance of your on-site search results?

                                           Behavioral activity                                   17%


                                 Use automated business rules                                        18%


                                    Visitor profile information                                      19%


                                Manually tweak search results                                                         26%


                                              No optimization                                                                                                     53%


                                                                  0%               10%                  20%                       30%         40%           50%           60%

                                                                                                                                Adobe® 2012 Digital Marketing Optimization Survey Results Report   3
How effectively does your on-site search display results based on the following?
                               100
                                                                                  6%                                                        6%               Very Effective
                                                               15%                                     12%            12%
                                                                                                                                                             Somewhat Effective
                                              28%                                                                                         17%
                                                                                  19%                                                                        Less Effective

                                                                                                                      24%                                    Do Not Use
                                                                                                       27%
                                                               30%                                                                        14%
                                                                                  17%


                                                                                                       14%            15%
                                              41%
                                                               14%




                                                                                  58%                                                     63%
                                              8%
                                                                                                       47%            49%
                                                               41%

                                              23%


                                  0
                                            Keyword         Top rated     Targeted results          Product or     Promotions         Customizable
                                            matching     content/products    based on                 service                           business
                                                                            user profile            availability                      metrics (KPIs)




The importance of optimized site search for both websites and mobile sites is well documented. According to
industry experts:
•	 34% of site visitors use site search as the first activity on a site, and these numbers are even higher
   for mobile sites. 4
•	 68% of web users use search as their primary form of navigation. 4
•	 43% of site search users give up after the first try. 5
Converting only a small percentage of site visitors who leave your website could translate into significant
conversion results. Additionally, today’s digital merchandisers need to control how products, services, and
content are presented to visitors in order to meet business goals. Top-converting or higher margin items, for
instance, need to be placed in prominent positions. Analyzing search queries is also important to identify and
respond to consumer trends.

Automated recommendations and cross-sells
Consumers embrace recommendations because they deliver value that is meaningful and practical. According
to Forrester, 62% of site visitors find them useful in meeting their needs.6 Yet, the Adobe 2012 Digital
Marketing Optimization Survey highlights that 38% of digital marketers do not provide any content or product
recommendations; if they do, their primary focus is on providing the most popular and newly available content
for their products.

Upon which criteriacriteria are your product or content recommendations based?
             Upon which
                        are your product or content recommendations based?
                   Past behavior of                                            16%
                  individual visitor

        Related product or content
                                                                                        18%
                    characteristics

    Based on what other customers
                                                                                              20%
           have viewed/purchased

         Promotional products or
                                                                                                             25%
      company highlighted content


          Newly available content                                                                                               33%


             Top selling products/                                                                                              33%
             most popular content

         No recommendation tool                                                                                                                  38%
               or process in place


                                       0%           5%         10%          15%               20%            25%      30%             35%              40%




It is important to have the ability to use all the criteria from the survey to provide the most relevant
recommendations, depending on the needs of your business at a given stage in the funnel. An automated
recommendations engine can place similar or alternative items and content on the relevant page, and
recommend popular complementary items towards the end of funnel to encourage visitors to continue
shopping—thereby increasing conversion rates.



                                                                                          Adobe® 2012 Digital Marketing Optimization Survey Results Report                        4
4
  Source: Forrester Research
5
  Source: N Norman Group
6
  Forrester. 2010. What You Need To Know About Third-Party Recommendation Engines.
“From awareness             Where on your site are you displaying product/content recommendations?
through conversion and
then to loyalty, testing                   Confirmation page           6%
is an essential element
to success. There are
                                               Checkout page               7%
multiple paths a user can
take to conversion—.                                                       7%
                                             User profile page
so from first impression
to last click, testing is
                                                Shopping cart                    10%
an essential element to
a successful marketing                    Search results page                                 21%
campaign.”
                                               Category page                                                              38%
Jeff Lerner,
VP, digital media                                 Home page                                                                       45%

Prime Visibility
                                         Product/article page                                                                           47%


                                                                 0%   5%         10%   15%   20%     25%      30%   35%     40%   45%         50%


                            In addition to increasing visitor engagement, automated recommendation solutions also can help companies
                            reduce costs. Instead of integrating cross-sells and upsells through cumbersome manual processes — often
                            time-consuming, hastily assigned, and prone to error — Forrester reports that companies who implemented
                            an automated recommendation solution were able to present more comprehensive and consistent site
                            recommendations. This allows their marketers to optimize other site areas that had been previously
                            neglected.7

                            Testing through the funnel
                            Testing consumer engagement is critical to optimization, yet more than half (52%) of survey respondents say
                            that testing is not a priority at their company, with only 10% of respondents indicating that testing has been
                            adopted as a form of decision making across their organization worldwide. Moreover, testing—if implemented
                            at all—is done manually, and centers on landing pages (41%) and the home page (33%).

                            How would you describe your testing process?
                                       How would you describe your testing process?



                                        Sophisticated process         5%

                                    Complex process involving
                                       multiple departments            6%
                                               and approvals

                            Automated program determines                    8%
                                   significance and winner


                                    Vendor-managed process                      9%


                                Marketing staff controls which                         15%
                                 creative is posted to website


                                       No process/do not test                                                              39%


                                  Manual test implementation                                                                      45%
                                                 and analysis


                                                                 0%   5%         10%   15%   20%     25%      30%   35%     40%   45%         50%




                                                                                                    Adobe® 2012 Digital Marketing Optimization Survey Results Report   5
                            7
                                Forrester. 2010. What you need to know about third-party recommendation engines.
Choose the top three test variables that you have found are most effective at increasing
conversion rates?
Third-party credibility indicators
                                              5%
              (e.g. security seals)

                        Form fields                8%

                 Social sharing (e.g.
                                                        9%
     social sharing icons on pages)

                    Steps/pages in                             12%
                conversion process

                                CTA                                  14%


              Navigation elements                                          16%


                          Page copy                                                          22%


                Offers/promotions                                                                  25%


                    Photos/images                                                                    26%


                       Page layouts                                                                                          35%


                        Don't know                                                                                           35%



                                        0%   5%          10%           15%             20%         25%          30%          35%         40%



While focusing on optimization opportunities on the first-page experience is a great method to offset the first
hurdle at the top of the funnel, what happens to the visitor after that? Ideally, marketers should approach testing
with a return on investment (ROI) mindset, and businesses should test all surveyed areas. With this approach,
they will attain immediate improvements and establish testing as a relevant tool for the organization.

In which areas are you conducting online tests?

               Shopping cart/forms                  10%


                    Category pages                           13%


                Display advertising                                               21%


                     Product pages                                                     22%


                        Paid search                                                                 29%


                        Home page                                                                              33%


                               None                                                                                        38%


                     Landing pages                                                                                                 41%


                                        0%   5%     10%            15%           20%         25%         30%         35%         40%     45%




Testing all the way through the funnel for conversion paths and points of decision is an important tactic for any
successful campaign. It allows marketers to rate the performance of their messaging, content, and user
experience in order to tailor and optimize their online environments to distinct visitor segments. The larger your
test audience is, the more test data you will receive, and your test results will be more accurate. The testing
process is also iterative, with no prescribed end. Because environmental and behavioral factors change over time,
it’s important to test and fine-tune visitor experiences on a regular basis, and identify the criteria that have a
direct causal link to the desired conversion behavior and those metrics that only indicate correlation.8
Testing can also range in complexity. A/B testing, requiring fewer test subjects, can provide results at a higher
conceptual level. MVT, requiring larger volumes of test subjects, can provide more detailed results by comparing
different combinations or “recipes” of elements. The ultimate, ongoing goal of testing is for marketers to
determine the most engaging content and experiences based on different classifications or segments of their
visitors at any given time. Automated testing helps to further increase marketing investment returns by reducing
the time and effort needed to streamline the implementation, analysis, and optimization of the tests. This allows
marketers to focus more on revenue-generating areas and less on time-intensive testing processes.




                                                                                   Adobe® 2012 Digital Marketing Optimization Survey Results Report   6
8
    Contributing marketing expert Rob Graham, Chief Creative Technologist, Trainingcraft
Personalization
Personalization enables marketers to enhance the relevance and efficiency of new and repeat visitor
experiences, presenting a real opportunity to increase conversion by targeting content based on implicit and
explicit data already being collected. The more personalized a consumer experience, the more engaging. Yet
very few companies are leveraging the power of data and technology to deliver a more relevant customer
experience. Less than one-third (32%) of survey respondents said their current targeting method involved very
little to no targeting. Similar to testing, 49% of respondents who do implement targeting use a manual process.
Most commonly, targeting is based on a visitor’s profile.

How would you describe your current targeting method?

                    Order affinity         6%


          Abandon cart/lead form                8%


          1:1 Behavioral targeting               9%


                 Category affinity                   10%

          Offline customer/visitor
                                                            16%
                      information


                 Segment-based                                  18%
             behavioral targeting


                    Order history                               18%


           Very little/no targeting                                                           32%


                  Profile targeting                                                             34%


                           Manual                                                                           49%


                                      0%             10%              20%               30%           40%     50%




As the digital landscape continues to evolve, increasing the ways a consumer can interact with a business,
visitors expect to be presented with engaging content that is relevant to them. Lauren Freedman, president of a
niche e-commerce consultancy, the e-tailing group, points out in Prioritizing Personalization for Growth,
personalization is no longer optional, and customers are embracing personalization attempts through
subsequent browse and consumption behavior. At a minimum, customers expect to be delivered targeted
content and product offerings based on their past behavior. Ideally, they want to be treated as individuals with
unique customer tastes and behaviors across channels that are factored into the mix.9
You can create the most relevant experience by leveraging expressed and implied information about an
individual’s intent and interest that continues to evolve throughout a customer’s journey. Conversion gains
accelerate as marketers’ targeting efforts progress through a graduated scale from segment-based targeting to
automated, one-to-one personalization facilitated by technology. Taking a data-driven approach to
personalization helps to ensure that businesses are meeting customers’ expectations with the right service
level. Additionally, combining testing with targeting for personalization can produce great gains through small
and incremental improvements.
Most websites are designed to be relevant for a majority audience, but they are largely irrelevant to the
individual visitor. Personalization technology enables marketers to understand the motivations and different
interests of their audiences so that they can serve up the most relevant content and offers. Using dynamic
content provides real-time assembly of the perfect creative asset combination based on observed on-site and
off-site behaviors, ensuring that you get the right message to the right person, at the right time—increasing
user engagement and ultimately conversion.
Rob Graham, ClickZ contributing expert and Chief Creative Technologist at Trainingcraft, advises that
employing personalization to start a meaningful “conversation” with consumers can be a huge boost to a
campaign’s success. If marketers can create a correlation between that meaning and emotional ownership of
an offer, they are well on their way to creating a meaningful branding or conversion point. For instance,
returning consumers convert at higher rates when presented with targeted content that takes into account past
purchases or browsing history. However, if the personalization is gimmicky or forced, then it can also
disconnect those same consumers from the process.
                                                                             Adobe® 2012 Digital Marketing Optimization Survey Results Report   7
9
    Freedman, Lauren. 2011. Prioritizing Personalization for Growth. the e-tailing group.
“More and more, visitors   3.	 ptimize conversion with video
                             O
want to see and hear—
not read—content that      Content is, and always will be, king—but video marketing content is in high demand. In 2000, online video was
entertains, engages, and   a new entry online: demand and volume was minimal, and standards for video quality were accordingly low.
empowers. Compa-           But by 2011, consumption of online video was at an all-time high, with consumers making it the medium of
nies who don’t have or
                           choice for entertainment, information, and connecting with family and friends.
who aren’t focused on
developing rich media
assets now will pay the    What are the topare the top threerich mediawill be focusing on thisyou will be focusing on this year?
                                         What three rich media features you features year?
consequences down the
road through reduced                         Color swatching           6%
customer engagement.”
                                             3D visualization               9%

Julie Batten,                                                                     14%
                                  Zoom/360spin/alternative
VP strategy, media                                 images

Klick Health                               None of the above                             21%


                                     Interactive design tools                                  27%

                                Interactive publications (e.g.,
                                      microsites, catalogues,                                                         45%
                                                   brochures)


                                                        Video                                                                      61%


                                                                  0%        10%         20%          30%        40%         50%   60%       70%




                           Needless to say, this behavioral change highlights a paradigm shift in online video, and businesses are investing
                           in tools and resources to deliver high-quality video content. Recent research supports this:

                           •	 Gartner research showed that online video was a top-ten strategic technology trend for marketers in 2011.10
                           •	 The volume of video ads streamed across the Internet increased 20% over the previous year to 7.1 billion in
                              December 2011.11
                           •	 A recent comScore study demonstrated that both professionally produced and user-generated content (UGC)
                              videos drive high levels of engagement and conversion, and are powerful tools when used together. Profes-
                              sionally produced content provided a 24.7 point lift in Share of Choice for a featured product and a 16 point
                              lift for the brand’s total line, whereas UGC videos provided a 18.7 point lift in Share of Choice for a featured
                              product and a 10-point lift for the brand’s total line.12
                           The Adobe 2012 Digital Marketing Optimization Survey reflects this interest in video marketing, with 61% of
                           respondents this year focusing on video as an effective marketing strategy for conversion. Product or service
                           demos, interactive promotional videos, educational videos, and entertaining user-generated videos elevate an
                           online experience to new levels of engagements and conversion. In fact, video’s reach extends through social
                           networking channels and search engines. Video should be highlighted in search results. Jupiter Research states
                           in its Video and Image Optimization report that a page with video is 50 times more likely to appear in the first
                           Google search engine results page.

                           Site-wide video implementation is an increasingly important tool in the digital experience arsenal. The best
                           videos to display during a first-time video implementation on a site are videos of flagship products and
                           services, as well as promotional video ads and TV commercials. They should be succinct yet informative.

                           As engagement increases sitewide and the business expands, a site’s visitors can be introduced to additional
                           demonstrations and features through videos. Some businesses, like those specializing in automotive or travel/
                           hospitality, succeed with informative videos displayed in a distinct content section that is prominently featured
                           on the site. This section can include videos, photos, and articles. Large video libraries are best consolidated into
                           a central video gallery or TV microsite.

                           Clearly communicated video-player options also increase online engagement. Video players must be
                           optimized with clear calls to action that indicate “play,” “click to view,” and “click to play” buttons. Video
                           content in fact should be instantly identifiable as video. Additionally, the larger the size of the video player, the
                           more positive the user experience. Larger video players are associated with increased view-through rates,
                           indicating better engagement.




                                                                                                           Adobe® 2012 Digital Marketing Optimization Survey Results Report   8
                           10
                              Gartner, 2010. Top 10 Strategic Technology Trends for 2011.
                           11
                              comScore. 2012. 2012 U.S. Digital Future in Focus Report.
                           12
                              comScore. 2012. The Synergy of User Generated and Professional Video Content.
Tapping into tablets
                        4.	 ptimize all mobile channels
                          O
Consumers who visit
retail websites using   The explosion of smartphone and tablet devices has allowed consumers to connect with brands in more ways
tablet devices are      than one—and they expect an efficient engagement no matter what device they are on. Consumption
more valuable online    continues to accelerate and is expected to continue, with mobile device user penetration (6.8% CAGR) to
customers than those
                        continue growth through 2015. Yet, despite this proliferation of mobile devices, the mobile marketing channel
who visit websites
using smartphones or    is still emerging. Our survey highlights two top conversion optimization strategies for mobile—mobile
traditional desktop/    optimized websites and mobile apps.
laptop computers.

                        What are the top three mobile strategies and tactics you will be focusing on this year?

                                    Interactive design tools        5%


                                          Check-in rewards               7%


                                 Rich product visualization              7%


                             Catalogs optimized for mobile                8%


                             Videos: progressive download                 8%


                                     Videos: live streaming                    10%


                                 Location-based marketing                               16%


                                         None of the above                                         21%

                             Social sharing (e.g., Facebook,
                                                                                                            24%
                                    Twitter icons on pages)

                                  Advertising promotions,
                                                                                                                   30%
                             bar-coded coupons, QR codes


                                                Mobile app                                                               34%


                                 Mobile optimized website                                                                             42%


                                                               0%   5%         10%    15%        20%         25%   30%    35%   40%         45%




                        Device type matters
                        A recent Adobe Digital Index report analyzed 16.2 billion visits to the websites of more than 150 retailers in
                        2011, revealing that device type does indeed influence the outcome of those visits—both in terms of amount
                        spent and likelihood of making a purchase. Tablet users appear to be leading the charge. Consumers who visit
                        retail websites using tablet devices spend more than those who use smartphones or desktop/laptop
                        computers. They are also three times as likely to make a purchase than smartphone visitors.

                        For example:
                        •	 Tablet visitors spent over 50% more per purchase than visitors who used smartphones, and over 20% more
                           than visitors who used desktop/laptop computers.
                        •	 The tablet visitor segment is rapidly growing. Although these visitors generate a small portion of total
                           website visits, their share of total visits increased from 1% to 4% in just 12 months.

                        Tablet visitors may spend more because of their demographics, the nature of the tablet user experience, and
                        the environment in which tablet visitors shop online.13

                        Clearly, retailers can no longer afford a “one-size-fits-all” approach to mobile optimization. This data shows
                        that tablet visitors and smartphone visitors are distinct customer segments. Delivering experiences and
                        promotions that are optimized and relevant to tablet visitors should generate higher ROI.
                        However, the strength of the tablet segment doesn’t suggest that businesses should stop catering to all devices
                        types. Shopping on mobile sites overall is gaining adoption, with 29% of all respondents spending at least 3
                        hours each week shopping on mobile sites, and 24% spending at least 3 hours per week using mobile shopping
                        apps. Optimizing the experience for these users requires an understanding of their needs and behavior, as a
                        custom experience should reflect their preferences and demographics.




                                                                                                     Adobe® 2012 Digital Marketing Optimization Survey Results Report   9
                        13
                             Adobe Digital Index. 2012. The Impact of Tablet Visitors on Retail Websites.
For example:
•	 Visitors who shop the most are in 30–49 age group.
•	 Over two-thirds (67%) prefer mobile sites to mobile apps.
•	 iPhone and iPad users are the most engaged.
•	 BlackBerry users lack access to mobile apps (compared with iPad, iPhone, and Android™ users), so mobile-
   optimized sites are needed to increase BlackBerry user engagement.

If you have resources to create only one app or one version of your mobile website, determine which device
your customers use the most and optimize for that device.

As businesses develop mobile sites, general optimization best practices still apply across all platforms, such as:
•	 Offer an optimized mobile site search, research, and recommendations.
•	 Test the mobile experience.
•	 Provide a relevant experience—as a minimum designing for the specific device; more advanced tactics
   involve personalizing the experience for the user.
•	 Use rich media optimized for the screen size and device type.
•	 Integrate mobile marketing as part of your overall marketing strategy.

5.	 ptimize social engagement
  O
Marketers have always understood the power of word of mouth to influence people, and the innovations in
social media technologies have opened up the opportunity to leverage that power in new ways. Our survey
reflects that 70% of respondents are focusing on social sharing as a top effective social strategy in 2012,
followed by blogs/community sites and user comments/reviews—and with good reason: social sharing can
have a huge impact. A recent comScore study demonstrated that the top 20% of users who spend the most
time on Facebook spent $67 per quarter compared to $27 by nonusers.14

A recent Adobe Digital Index report on social networks noted that by March 2012, Facebook had over 845
million users, Twitter surpassed the 100 million member mark, and Pinterest became one of the top 10 social
media sites in less than a year. This explosion in social engagement drives marketers’ growing enthusiasm for
social media: 73% of respondents to a 2011 Chief Marketer survey said they used social media in marketing
campaigns, and 15% intended to implement them in 2012.15


What are the top three social media strategies and tactics you will be focusing on this year?
        User-created collections for
                                                9%
              sharing and purchase


        Collaborative custom product
     design (items, sets, outfits, etc.)
                                                10%


                   None of the above                 12%


        Live chat/instant messaging                        16%


            User-generated content
         (e.g., images, video, audio)
                                                                 20%


     User comments/reviews/rating                                        33%


                     Blogs and social
                   community pages
                                                                                                   60%


      Social sharing (e.g., Facebook,
                                                                                                               79%
             Twitter icons on pages)



                                           0%   10%              20%   30%      40%          50%   60%   70%    80%




One of the most powerful and easiest ways to enable users to share on Facebook is by implementing the
Facebook Like button on your website. Leveraging the Like button and Facebook’s widespread distribution
channels can help companies build lasting connections with existing customers and drive valuable new referral
traffic to your website. The potential benefits of implementing and optimizing the Like button can result in
significant, measurable returns.




                                                                               Adobe® 2012 Digital Marketing Optimization Survey Results Report   10
14
     comScore, State of the US Online Retail Economy. May 2010
15
     Adobe Digital Index. 2012. Why marketers aren’t giving social the credit it deserves.
The best way to engage with consumers on social networks is to give visitors a voice to participate and interact
                             with the business. It’s important, however, to have moderation and measurement tools in place to help ensure
                             that the conversations are making a positive impact on your business.


                             Summary
                             Conversion optimization is a strategic tool that empowers today’s digital marketers to monetize significant
                             consumer engagement and marketing investment opportunities. By taking action on rich data and content
                             with small yet concentrated efforts to enhance the customer experience throughout the funnel, businesses can
                             make an impact to the top- and bottom-line revenues.

                             Key takeaways
                             The key takeaways for achieving optimum conversion are:
                             •	 Achieve double-digit lifts in conversion by prioritizing optimization across your organization as a strategic
                                process.
                             •	 Follow a data-driven approach to engagement and conversion that includes optimized site search,
                                automated recommendations, testing, and personalization, balancing acquisition and optimization efforts to
                                capitalize on missed opportunities along the funnel.
                             •	 Provide visitors with relevant, professionally produced and UGC video to entertain, engage, and empower.
                             •	 Optimize all mobile channels—especially tablets—to generate a higher ROI by delivering device-appropriate,
                                relevant experiences and promotions.
                             •	 Give consumers a participatory voice on social networks, but use moderation and measurement tools to
                                guide conversations toward a positive impact for your business.




                             About Adobe
                             Whether it’s a smartphone or tablet app, a game, a video, a digital magazine, a website, or an online
                             experience, chances are that it was touched by Adobe technology. Adobe’s tools and services enable its
                             customers to create groundbreaking digital content, deploy it across media and devices, and then continually
                             measure and optimize it based on user data. By providing complete solutions that combine digital media
                             creation with data-driven marketing, Adobe helps businesses improve their communications, strengthen their
                             brands, and ultimately achieve greater business success. Adobe’s content authoring solutions lead the industry,
                             enabling its visitors to more effectively produce, distribute, and monetize digital content. Adobe also delivers
                             the most innovative solutions for optimizing marketing campaigns and maximizing return on every marketing
                             dollar.


                             For full report
                             For a complete report of Adobe 2012 Digital Marketing Optimization Survey, click here.




For more information:
www.adobe.com




Adobe Systems Incorporated   Adobe is a registered trademark of Adobe Systems Incorporated in the United States and/or other countries. Android is a trademark of Google Inc. All other trademarks are the
                             property of their respective owners.
345 Park Avenue
San Jose, CA 95110-2704      © 2012 Adobe Systems Incorporated. All rights reserved. Printed in the USA.
USA
www.adobe.com                95012374  05/12                                                                                                                                                                 11

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18458 adobe2012 digital_marketingoptimizationsurvey

  • 1. Adobe® 2012 Digital Marketing Optimization Survey Results Report Top 5 conversion opportunities for digital marketers Optimization tactics for digital marketing impact Table of contents Strategic consumer engagement and conversion is the cornerstone of any profitable online business. Digital 1: Prioritize optimization marketers are strongly focused on improving these to increase returns on marketing investments. However, as a strategic process results from the Adobe 2012 Digital Marketing Optimization Survey indicate that there are still significant 3: Use a data-driven approach to untapped investment opportunities to improve conversion through data-driven optimization. optimization Adobe defines optimization as taking action on rich data and content to deliver the highest return on 8: Optimize conversion with video marketing spend and efforts. For the purpose of this survey, we focus on conversion optimization—the process 9: Optimize all mobile of monitoring conversion events on your website or mobile site from landing page through checkout to channels identify key areas that you can monetize immediately and those areas you need to enhance. Tools for 10: Optimize social optimizing conversion include multivariate testing (MVT) or A/B testing, targeting, recommendations, dynamic engagement navigation, personalization, rich media, and site search. 11: Summary 11: About Adobe The Adobe 2012 Digital Marketing Optimization Survey received global responses from more than 1,700 11: For more information digital marketers. The survey focused on business-to-consumer and business-to-business commerce across retail, finance, media, technology and consumer goods industries. With expert contribution from marketing authorities at ClickZ, this survey report focuses on key areas in which digital marketers need to excel in order to ensure success: social, mobile, personalization, and customer experience. Leveraging these best optimization practices can help digital marketers immediately improve conversion and returns on marketing investment: • Prioritize optimization across your organization as a strategic process • Use a data-driven approach to optimization • Optimize conversion with video • Optimize all mobile channels • Optimize social engagement 1. rioritize optimization as a strategic process P Despite the importance of digital optimization to conversion and marketing investment returns, survey results demonstrate that 81% of respondents allocate 15% or less of their marketing budget to on-site optimization efforts—up only 1% from our 2009 survey.1 While the digital marketing landscape has continued to evolve to meet customers’ high expectations, there has been little change in investment to meet the demand with marketing spend that really counts. Research shows that marketers spend $92 to acquire traffic and $1 to optimize it. 2 Greater balance in investment between acquisition and optimization is needed to drive higher returns. 1 Omniture. 2009. Survey Provides Online Marketers With a Roadmap for Optimizing Conversion. www.omniture.com/press/730. 2 Omniture. 2009. Survey Provides Online Marketers With a Roadmap for Optimizing Conversion. www.omniture.com/press/730.
  • 2. What percentage of your marketing budget is allocated to optimization activities (including agency and technology)? services, fees, professional services, and technology)? What percentage of your marketing budget is allocated to optimization activities (including agency fees, professional 51+% 3% Did not 3% answer 26-50% 4% 16-25% 9% 11-15% 13% 6-10% 21% 0-5% 47% 0% 10% 20% 30% 40% 50% Who or what determines which promotion/marketing content is displayed on your site and in your marketingcommunications? communications? Who or what determines which promotion/marketing content is displayed on your site and in your marketing Metrics/performance based 14% No process 14% Informal group of stakeholders 17% Creative department 25% Head of online marketing 34% Marketing executives 56% 0% 10% 20% 30% 40% 50% 60% While often slow to gain momentum initially, prioritizing optimization within an organization can make a huge impact to the top- and bottom-line revenues. As industry analyst John Lovett notes, it’s not uncommon to see double-digit lifts in conversion as a result of pragmatic conversion optimization achieved through several small initiatives—for example, subtle adjustments in placement and messaging—not a large overhaul. This process is especially true for organizations that are new to conversion optimization and for initiatives that typically debut on inconsequential pages deep within the site. As these optimization initiatives have demonstrable results of success, they begin to appear on more and more prominent pages. Companies that embrace conversion optimization through small wins, combined optimization tactics, and acute focus are attaining more conversions, establishing deeper customer loyalties, and asserting competitive advantage over their peers. 3 To prove the value of digital experience optimization, ClickZ marketing experts recommend having someone in another business unit identify a few areas where you can perform small tests aimed at optimizing your digital marketing activities. By demonstrating small wins, a marketer can point to results and show how shifting money from acquisition to optimization can either save money or generate new revenue. Adobe® 2012 Digital Marketing Optimization Survey Results Report 2 3 Lovett, John. 2011. The Online Conversion Imperative. Adobe Systems Incorporated.
  • 3. “A rate-limiting factor for 2. se a data-driven approach to optimization U how often optimization takes place is the band- Marketers are investing a lot of time and money on visitor acquisition, but little on helping that visitor through width to undertake the the conversion funnel. Simply tossing customers into the queue through acquisition efforts is not enough to analysis and draw action- scale profitability. able insights. The ability to automate these activi- ties through rules-based Select the top five optimization strategies you intend to employ within the next year. None Other algorithms or technology platforms is appealing, Attribution modeling 8% as it not only reduces Automated recommendations 18% the overhead required to execute on optimization, On-site search 22% but also tends to produce Retargeting/remarketing 26% better results.” Behavioral targeting 27% Audience segmentation 28% Julie Batten VP strategy, media, Social sharing 31% Klick Health Testing 33% Mobile analytics 35% Profile targeting 40% Social media analytics 56% Website analytics 68% 0% 10% 20% 30% 40% 50% 60% 70% Achieving desired conversion outcomes is based on the ability to zoom in on specific tactics within the funnel for conversion optimization. Rather than evaluating customers in linear fashion, optimization requires a reprioritization through establishing outcomes that focus on attention, engagement, and commitment at each phase of the conversion process. By using a diverse set of analysis and optimization tactics, you can use a data-driven approach to conversion optimization that is influenced by predetermined brand parameters. Despite years of marketing experience and a good “gut feeling” for what works for conversions, no one will get it right every time—adding data-driven automation to optimization tactics will help accelerate success. These key focus areas can help organizations embrace optimization: content findability, automated recommendations and cross-sells, testing, and personalization. Content findability Site search is about more than a generic search box that helps point website visitors in the right general direction. Optimizing site search for efficient item or content discovery and findability is a business-critical function. It is about guiding visitors to exactly what they want to find, enhancing overall navigation, and providing an efficient path for users to meet their goals. It encourages visitors to regularly use search as an engagement mechanism with the business, creating a dialog of expressed needs and intentions. Smart digital marketers capture and leverage this explicit intent to present custom, personalized, relevant content. Yet, the survey found that 53% of digital marketers do not optimize search results in any fashion—and if they do, 26% of respondents report that it is more likely a manual process. How do you optimize the relevance of your on-site search results? How do you optimize the relevance of your on-site search results? Behavioral activity 17% Use automated business rules 18% Visitor profile information 19% Manually tweak search results 26% No optimization 53% 0% 10% 20% 30% 40% 50% 60% Adobe® 2012 Digital Marketing Optimization Survey Results Report 3
  • 4. How effectively does your on-site search display results based on the following? 100 6% 6% Very Effective 15% 12% 12% Somewhat Effective 28% 17% 19% Less Effective 24% Do Not Use 27% 30% 14% 17% 14% 15% 41% 14% 58% 63% 8% 47% 49% 41% 23% 0 Keyword Top rated Targeted results Product or Promotions Customizable matching content/products based on service business user profile availability metrics (KPIs) The importance of optimized site search for both websites and mobile sites is well documented. According to industry experts: • 34% of site visitors use site search as the first activity on a site, and these numbers are even higher for mobile sites. 4 • 68% of web users use search as their primary form of navigation. 4 • 43% of site search users give up after the first try. 5 Converting only a small percentage of site visitors who leave your website could translate into significant conversion results. Additionally, today’s digital merchandisers need to control how products, services, and content are presented to visitors in order to meet business goals. Top-converting or higher margin items, for instance, need to be placed in prominent positions. Analyzing search queries is also important to identify and respond to consumer trends. Automated recommendations and cross-sells Consumers embrace recommendations because they deliver value that is meaningful and practical. According to Forrester, 62% of site visitors find them useful in meeting their needs.6 Yet, the Adobe 2012 Digital Marketing Optimization Survey highlights that 38% of digital marketers do not provide any content or product recommendations; if they do, their primary focus is on providing the most popular and newly available content for their products. Upon which criteriacriteria are your product or content recommendations based? Upon which are your product or content recommendations based? Past behavior of 16% individual visitor Related product or content 18% characteristics Based on what other customers 20% have viewed/purchased Promotional products or 25% company highlighted content Newly available content 33% Top selling products/ 33% most popular content No recommendation tool 38% or process in place 0% 5% 10% 15% 20% 25% 30% 35% 40% It is important to have the ability to use all the criteria from the survey to provide the most relevant recommendations, depending on the needs of your business at a given stage in the funnel. An automated recommendations engine can place similar or alternative items and content on the relevant page, and recommend popular complementary items towards the end of funnel to encourage visitors to continue shopping—thereby increasing conversion rates. Adobe® 2012 Digital Marketing Optimization Survey Results Report 4 4 Source: Forrester Research 5 Source: N Norman Group 6 Forrester. 2010. What You Need To Know About Third-Party Recommendation Engines.
  • 5. “From awareness Where on your site are you displaying product/content recommendations? through conversion and then to loyalty, testing Confirmation page 6% is an essential element to success. There are Checkout page 7% multiple paths a user can take to conversion—. 7% User profile page so from first impression to last click, testing is Shopping cart 10% an essential element to a successful marketing Search results page 21% campaign.” Category page 38% Jeff Lerner, VP, digital media Home page 45% Prime Visibility Product/article page 47% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% In addition to increasing visitor engagement, automated recommendation solutions also can help companies reduce costs. Instead of integrating cross-sells and upsells through cumbersome manual processes — often time-consuming, hastily assigned, and prone to error — Forrester reports that companies who implemented an automated recommendation solution were able to present more comprehensive and consistent site recommendations. This allows their marketers to optimize other site areas that had been previously neglected.7 Testing through the funnel Testing consumer engagement is critical to optimization, yet more than half (52%) of survey respondents say that testing is not a priority at their company, with only 10% of respondents indicating that testing has been adopted as a form of decision making across their organization worldwide. Moreover, testing—if implemented at all—is done manually, and centers on landing pages (41%) and the home page (33%). How would you describe your testing process? How would you describe your testing process? Sophisticated process 5% Complex process involving multiple departments 6% and approvals Automated program determines 8% significance and winner Vendor-managed process 9% Marketing staff controls which 15% creative is posted to website No process/do not test 39% Manual test implementation 45% and analysis 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Adobe® 2012 Digital Marketing Optimization Survey Results Report 5 7 Forrester. 2010. What you need to know about third-party recommendation engines.
  • 6. Choose the top three test variables that you have found are most effective at increasing conversion rates? Third-party credibility indicators 5% (e.g. security seals) Form fields 8% Social sharing (e.g. 9% social sharing icons on pages) Steps/pages in 12% conversion process CTA 14% Navigation elements 16% Page copy 22% Offers/promotions 25% Photos/images 26% Page layouts 35% Don't know 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% While focusing on optimization opportunities on the first-page experience is a great method to offset the first hurdle at the top of the funnel, what happens to the visitor after that? Ideally, marketers should approach testing with a return on investment (ROI) mindset, and businesses should test all surveyed areas. With this approach, they will attain immediate improvements and establish testing as a relevant tool for the organization. In which areas are you conducting online tests? Shopping cart/forms 10% Category pages 13% Display advertising 21% Product pages 22% Paid search 29% Home page 33% None 38% Landing pages 41% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Testing all the way through the funnel for conversion paths and points of decision is an important tactic for any successful campaign. It allows marketers to rate the performance of their messaging, content, and user experience in order to tailor and optimize their online environments to distinct visitor segments. The larger your test audience is, the more test data you will receive, and your test results will be more accurate. The testing process is also iterative, with no prescribed end. Because environmental and behavioral factors change over time, it’s important to test and fine-tune visitor experiences on a regular basis, and identify the criteria that have a direct causal link to the desired conversion behavior and those metrics that only indicate correlation.8 Testing can also range in complexity. A/B testing, requiring fewer test subjects, can provide results at a higher conceptual level. MVT, requiring larger volumes of test subjects, can provide more detailed results by comparing different combinations or “recipes” of elements. The ultimate, ongoing goal of testing is for marketers to determine the most engaging content and experiences based on different classifications or segments of their visitors at any given time. Automated testing helps to further increase marketing investment returns by reducing the time and effort needed to streamline the implementation, analysis, and optimization of the tests. This allows marketers to focus more on revenue-generating areas and less on time-intensive testing processes. Adobe® 2012 Digital Marketing Optimization Survey Results Report 6 8 Contributing marketing expert Rob Graham, Chief Creative Technologist, Trainingcraft
  • 7. Personalization Personalization enables marketers to enhance the relevance and efficiency of new and repeat visitor experiences, presenting a real opportunity to increase conversion by targeting content based on implicit and explicit data already being collected. The more personalized a consumer experience, the more engaging. Yet very few companies are leveraging the power of data and technology to deliver a more relevant customer experience. Less than one-third (32%) of survey respondents said their current targeting method involved very little to no targeting. Similar to testing, 49% of respondents who do implement targeting use a manual process. Most commonly, targeting is based on a visitor’s profile. How would you describe your current targeting method? Order affinity 6% Abandon cart/lead form 8% 1:1 Behavioral targeting 9% Category affinity 10% Offline customer/visitor 16% information Segment-based 18% behavioral targeting Order history 18% Very little/no targeting 32% Profile targeting 34% Manual 49% 0% 10% 20% 30% 40% 50% As the digital landscape continues to evolve, increasing the ways a consumer can interact with a business, visitors expect to be presented with engaging content that is relevant to them. Lauren Freedman, president of a niche e-commerce consultancy, the e-tailing group, points out in Prioritizing Personalization for Growth, personalization is no longer optional, and customers are embracing personalization attempts through subsequent browse and consumption behavior. At a minimum, customers expect to be delivered targeted content and product offerings based on their past behavior. Ideally, they want to be treated as individuals with unique customer tastes and behaviors across channels that are factored into the mix.9 You can create the most relevant experience by leveraging expressed and implied information about an individual’s intent and interest that continues to evolve throughout a customer’s journey. Conversion gains accelerate as marketers’ targeting efforts progress through a graduated scale from segment-based targeting to automated, one-to-one personalization facilitated by technology. Taking a data-driven approach to personalization helps to ensure that businesses are meeting customers’ expectations with the right service level. Additionally, combining testing with targeting for personalization can produce great gains through small and incremental improvements. Most websites are designed to be relevant for a majority audience, but they are largely irrelevant to the individual visitor. Personalization technology enables marketers to understand the motivations and different interests of their audiences so that they can serve up the most relevant content and offers. Using dynamic content provides real-time assembly of the perfect creative asset combination based on observed on-site and off-site behaviors, ensuring that you get the right message to the right person, at the right time—increasing user engagement and ultimately conversion. Rob Graham, ClickZ contributing expert and Chief Creative Technologist at Trainingcraft, advises that employing personalization to start a meaningful “conversation” with consumers can be a huge boost to a campaign’s success. If marketers can create a correlation between that meaning and emotional ownership of an offer, they are well on their way to creating a meaningful branding or conversion point. For instance, returning consumers convert at higher rates when presented with targeted content that takes into account past purchases or browsing history. However, if the personalization is gimmicky or forced, then it can also disconnect those same consumers from the process. Adobe® 2012 Digital Marketing Optimization Survey Results Report 7 9 Freedman, Lauren. 2011. Prioritizing Personalization for Growth. the e-tailing group.
  • 8. “More and more, visitors 3. ptimize conversion with video O want to see and hear— not read—content that Content is, and always will be, king—but video marketing content is in high demand. In 2000, online video was entertains, engages, and a new entry online: demand and volume was minimal, and standards for video quality were accordingly low. empowers. Compa- But by 2011, consumption of online video was at an all-time high, with consumers making it the medium of nies who don’t have or choice for entertainment, information, and connecting with family and friends. who aren’t focused on developing rich media assets now will pay the What are the topare the top threerich mediawill be focusing on thisyou will be focusing on this year? What three rich media features you features year? consequences down the road through reduced Color swatching 6% customer engagement.” 3D visualization 9% Julie Batten, 14% Zoom/360spin/alternative VP strategy, media images Klick Health None of the above 21% Interactive design tools 27% Interactive publications (e.g., microsites, catalogues, 45% brochures) Video 61% 0% 10% 20% 30% 40% 50% 60% 70% Needless to say, this behavioral change highlights a paradigm shift in online video, and businesses are investing in tools and resources to deliver high-quality video content. Recent research supports this: • Gartner research showed that online video was a top-ten strategic technology trend for marketers in 2011.10 • The volume of video ads streamed across the Internet increased 20% over the previous year to 7.1 billion in December 2011.11 • A recent comScore study demonstrated that both professionally produced and user-generated content (UGC) videos drive high levels of engagement and conversion, and are powerful tools when used together. Profes- sionally produced content provided a 24.7 point lift in Share of Choice for a featured product and a 16 point lift for the brand’s total line, whereas UGC videos provided a 18.7 point lift in Share of Choice for a featured product and a 10-point lift for the brand’s total line.12 The Adobe 2012 Digital Marketing Optimization Survey reflects this interest in video marketing, with 61% of respondents this year focusing on video as an effective marketing strategy for conversion. Product or service demos, interactive promotional videos, educational videos, and entertaining user-generated videos elevate an online experience to new levels of engagements and conversion. In fact, video’s reach extends through social networking channels and search engines. Video should be highlighted in search results. Jupiter Research states in its Video and Image Optimization report that a page with video is 50 times more likely to appear in the first Google search engine results page. Site-wide video implementation is an increasingly important tool in the digital experience arsenal. The best videos to display during a first-time video implementation on a site are videos of flagship products and services, as well as promotional video ads and TV commercials. They should be succinct yet informative. As engagement increases sitewide and the business expands, a site’s visitors can be introduced to additional demonstrations and features through videos. Some businesses, like those specializing in automotive or travel/ hospitality, succeed with informative videos displayed in a distinct content section that is prominently featured on the site. This section can include videos, photos, and articles. Large video libraries are best consolidated into a central video gallery or TV microsite. Clearly communicated video-player options also increase online engagement. Video players must be optimized with clear calls to action that indicate “play,” “click to view,” and “click to play” buttons. Video content in fact should be instantly identifiable as video. Additionally, the larger the size of the video player, the more positive the user experience. Larger video players are associated with increased view-through rates, indicating better engagement. Adobe® 2012 Digital Marketing Optimization Survey Results Report 8 10 Gartner, 2010. Top 10 Strategic Technology Trends for 2011. 11 comScore. 2012. 2012 U.S. Digital Future in Focus Report. 12 comScore. 2012. The Synergy of User Generated and Professional Video Content.
  • 9. Tapping into tablets 4. ptimize all mobile channels O Consumers who visit retail websites using The explosion of smartphone and tablet devices has allowed consumers to connect with brands in more ways tablet devices are than one—and they expect an efficient engagement no matter what device they are on. Consumption more valuable online continues to accelerate and is expected to continue, with mobile device user penetration (6.8% CAGR) to customers than those continue growth through 2015. Yet, despite this proliferation of mobile devices, the mobile marketing channel who visit websites using smartphones or is still emerging. Our survey highlights two top conversion optimization strategies for mobile—mobile traditional desktop/ optimized websites and mobile apps. laptop computers. What are the top three mobile strategies and tactics you will be focusing on this year? Interactive design tools 5% Check-in rewards 7% Rich product visualization 7% Catalogs optimized for mobile 8% Videos: progressive download 8% Videos: live streaming 10% Location-based marketing 16% None of the above 21% Social sharing (e.g., Facebook, 24% Twitter icons on pages) Advertising promotions, 30% bar-coded coupons, QR codes Mobile app 34% Mobile optimized website 42% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Device type matters A recent Adobe Digital Index report analyzed 16.2 billion visits to the websites of more than 150 retailers in 2011, revealing that device type does indeed influence the outcome of those visits—both in terms of amount spent and likelihood of making a purchase. Tablet users appear to be leading the charge. Consumers who visit retail websites using tablet devices spend more than those who use smartphones or desktop/laptop computers. They are also three times as likely to make a purchase than smartphone visitors. For example: • Tablet visitors spent over 50% more per purchase than visitors who used smartphones, and over 20% more than visitors who used desktop/laptop computers. • The tablet visitor segment is rapidly growing. Although these visitors generate a small portion of total website visits, their share of total visits increased from 1% to 4% in just 12 months. Tablet visitors may spend more because of their demographics, the nature of the tablet user experience, and the environment in which tablet visitors shop online.13 Clearly, retailers can no longer afford a “one-size-fits-all” approach to mobile optimization. This data shows that tablet visitors and smartphone visitors are distinct customer segments. Delivering experiences and promotions that are optimized and relevant to tablet visitors should generate higher ROI. However, the strength of the tablet segment doesn’t suggest that businesses should stop catering to all devices types. Shopping on mobile sites overall is gaining adoption, with 29% of all respondents spending at least 3 hours each week shopping on mobile sites, and 24% spending at least 3 hours per week using mobile shopping apps. Optimizing the experience for these users requires an understanding of their needs and behavior, as a custom experience should reflect their preferences and demographics. Adobe® 2012 Digital Marketing Optimization Survey Results Report 9 13 Adobe Digital Index. 2012. The Impact of Tablet Visitors on Retail Websites.
  • 10. For example: • Visitors who shop the most are in 30–49 age group. • Over two-thirds (67%) prefer mobile sites to mobile apps. • iPhone and iPad users are the most engaged. • BlackBerry users lack access to mobile apps (compared with iPad, iPhone, and Android™ users), so mobile- optimized sites are needed to increase BlackBerry user engagement. If you have resources to create only one app or one version of your mobile website, determine which device your customers use the most and optimize for that device. As businesses develop mobile sites, general optimization best practices still apply across all platforms, such as: • Offer an optimized mobile site search, research, and recommendations. • Test the mobile experience. • Provide a relevant experience—as a minimum designing for the specific device; more advanced tactics involve personalizing the experience for the user. • Use rich media optimized for the screen size and device type. • Integrate mobile marketing as part of your overall marketing strategy. 5. ptimize social engagement O Marketers have always understood the power of word of mouth to influence people, and the innovations in social media technologies have opened up the opportunity to leverage that power in new ways. Our survey reflects that 70% of respondents are focusing on social sharing as a top effective social strategy in 2012, followed by blogs/community sites and user comments/reviews—and with good reason: social sharing can have a huge impact. A recent comScore study demonstrated that the top 20% of users who spend the most time on Facebook spent $67 per quarter compared to $27 by nonusers.14 A recent Adobe Digital Index report on social networks noted that by March 2012, Facebook had over 845 million users, Twitter surpassed the 100 million member mark, and Pinterest became one of the top 10 social media sites in less than a year. This explosion in social engagement drives marketers’ growing enthusiasm for social media: 73% of respondents to a 2011 Chief Marketer survey said they used social media in marketing campaigns, and 15% intended to implement them in 2012.15 What are the top three social media strategies and tactics you will be focusing on this year? User-created collections for 9% sharing and purchase Collaborative custom product design (items, sets, outfits, etc.) 10% None of the above 12% Live chat/instant messaging 16% User-generated content (e.g., images, video, audio) 20% User comments/reviews/rating 33% Blogs and social community pages 60% Social sharing (e.g., Facebook, 79% Twitter icons on pages) 0% 10% 20% 30% 40% 50% 60% 70% 80% One of the most powerful and easiest ways to enable users to share on Facebook is by implementing the Facebook Like button on your website. Leveraging the Like button and Facebook’s widespread distribution channels can help companies build lasting connections with existing customers and drive valuable new referral traffic to your website. The potential benefits of implementing and optimizing the Like button can result in significant, measurable returns. Adobe® 2012 Digital Marketing Optimization Survey Results Report 10 14 comScore, State of the US Online Retail Economy. May 2010 15 Adobe Digital Index. 2012. Why marketers aren’t giving social the credit it deserves.
  • 11. The best way to engage with consumers on social networks is to give visitors a voice to participate and interact with the business. It’s important, however, to have moderation and measurement tools in place to help ensure that the conversations are making a positive impact on your business. Summary Conversion optimization is a strategic tool that empowers today’s digital marketers to monetize significant consumer engagement and marketing investment opportunities. By taking action on rich data and content with small yet concentrated efforts to enhance the customer experience throughout the funnel, businesses can make an impact to the top- and bottom-line revenues. Key takeaways The key takeaways for achieving optimum conversion are: • Achieve double-digit lifts in conversion by prioritizing optimization across your organization as a strategic process. • Follow a data-driven approach to engagement and conversion that includes optimized site search, automated recommendations, testing, and personalization, balancing acquisition and optimization efforts to capitalize on missed opportunities along the funnel. • Provide visitors with relevant, professionally produced and UGC video to entertain, engage, and empower. • Optimize all mobile channels—especially tablets—to generate a higher ROI by delivering device-appropriate, relevant experiences and promotions. • Give consumers a participatory voice on social networks, but use moderation and measurement tools to guide conversations toward a positive impact for your business. About Adobe Whether it’s a smartphone or tablet app, a game, a video, a digital magazine, a website, or an online experience, chances are that it was touched by Adobe technology. Adobe’s tools and services enable its customers to create groundbreaking digital content, deploy it across media and devices, and then continually measure and optimize it based on user data. By providing complete solutions that combine digital media creation with data-driven marketing, Adobe helps businesses improve their communications, strengthen their brands, and ultimately achieve greater business success. Adobe’s content authoring solutions lead the industry, enabling its visitors to more effectively produce, distribute, and monetize digital content. Adobe also delivers the most innovative solutions for optimizing marketing campaigns and maximizing return on every marketing dollar. For full report For a complete report of Adobe 2012 Digital Marketing Optimization Survey, click here. For more information: www.adobe.com Adobe Systems Incorporated Adobe is a registered trademark of Adobe Systems Incorporated in the United States and/or other countries. Android is a trademark of Google Inc. All other trademarks are the property of their respective owners. 345 Park Avenue San Jose, CA 95110-2704 © 2012 Adobe Systems Incorporated. All rights reserved. Printed in the USA. USA www.adobe.com 95012374 05/12 11