Big Picture Perspectives on Consumers and Marketing in an Always-on, Digital World

Big Picture Perspective on
Consumers and Marketers in an
Always-on, Digital World
July 14, 2014
Presented by  
Geoffrey Ramsey 
Chairman, Co-
Founder
@geofframsey

§ How are consumers spending their
time and money in a digital world? 
§ How are marketers reaching those
connected consumers? 
§ Where are the marketing and media
dollars going?
Agenda
@geofframsey
©2014 eMarketer Inc.

Consumers are spending more time
and money online
5 hours 46 minutes
47% of daily media time
$449B
US B2C ecommerce sales
Source: eMarketer, Dec 2013/April 2014

A closer look at where digital time
is going… versus television
2 hours 51
minutes, or
23% of daily
media time spent
on mobile devices
2 hours 12
minutes, or
18% of daily media
time spent on
desktops/laptops
Source: eMarketer, April, 2014
>
4 hours 28
minutes, or
37% of daily
media time spent
with television
+

With mobile: being online has become
a persistent, anywhere state
Mobile users check
their phones 100X
daily
Source: Mobile Posse and Phoenix
Marketing International, 2013

Smartphones & tablets have reached
critical mass in the U.S. (millions of users)
Source: eMarketer, March 2014
163.9M
users
51.4% of
population
147.2M
users
46.2% of
population

% of population on smartphones,
by age group (2014)
Total
Under 11
12 - 17
18 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65+
0% 40% 80%
19.9%
53.8%
61.7%
77.8%
78.8%
79.1%
55.1%
4.8%
51.4%
Source: eMarketer, 2014
51.4%

In 2017, two-thirds of the U.S.
population are on smartphones
Total
Under 11
12 - 17
18 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65+
0% 50% 100%
29.5%
81.4%
90.3%
92.9%
94.4%
95.2%
76.5%
6.8%
66.9%
64%

Smartphone  
Users
51% of 
population
Digital  
Video Viewers
61% of population
Source: eMarketer 2014
Social Users
54% of population
Tablet Users
46% of population
The U.S. landscape for digital activities  
(penetration within total population)
Smart TV Users
16% of population
Smart

% of population watching digital
video, by type of content
0%
10%
20%
30%
40%
50%
60%
70%
Any TV Shows Movies
33%
45%
61%
Source: eMarketer, June, 2014

% of population watching digital
video, by type of content
77%
of tablet users are
watching video on
their tablets1/2
of smartphone
users are
watching
video on their
phones
Accounts for only  
3.2 minutes per day,  
versus 5.1 hours 
of traditional TV
!
—Nielsen, 2014

113 million, or 36% of the U.S.
population, are now regularly using
some form of connected TV

Who sits around and just watches
TV anymore?
86% of U.S.
smartphone
owners say they
use their devices
while watching
TV, and nearly
half do so daily 
 
–Nielsen, 2014

At the same time, social network
activity is going mobile, and vice versa
73%
of social network
users access
social media on
their phones
!
––eMarketer
>70%
of time spent
with social media
happens on
phones
!
––comScore

Mobile shopping, buying and
commerce are exploding
eMarketer, April, 2014
2014 2018
2.3X
M-commerce Retail Sales 
(% of total ecommerce) $197 B
30%$84 B
19%

Researching products has largely
become a digital experience
Desktop Phone/Tablet

II. How Are Marketers
Reaching the
Connected Consumer?

It’s a
struggle to
keep on top
of the data
43%
“Poorly
Integrated”
46%
“Improving”

Complex attribution and measurement
models remain a work in progress
64%: Marketers using last-touch and/or
first-touch metrics
22%: Marketers using cross-channel
attribution approaches
Source: The CMO Club/Visual IQ, Jan 2014;
Webmarketing123, Nov 2013

END GOAL:  
harvest cross-screen
identities by tapping
into the streams of
data emanating from
Mobile, Video & Social
activity across
platforms and devices
The antidote to
fragmentation is a
unified view of the
consumer!

Smart use of data––across
devices––is the only way to 
keep up with rising consumer
expectations, especially  
with mobile.

A majority of marketers plan to increase
their spending on Content Marketing
71%
74% of marketers
worldwide said they
would increase their
content marketing
dollars
!
—Econsultancy, 2014

Content Marketing is a challenge…

With Content Marketing, the bar for quality
is very high…

NATIVE advertising???
“Marketing
should be as
compelling and
engaging as the
content you
would see from
your family and
friends.”

Think of mobile as the Swiss Army
Knife of marketing
Pocket-sized 
Omnichannel
Marketing
Device
Location
Services
Mobile Social
Mobile
Commerce
Mobile
Payments
In-Store
Mapping
Email
Coupon
Delivery
Text
Notifications
Mobile
Apps
Mobile
Search

Watch for increased use of
mobile location-based data
30 - 40%
41% of worldwide firms
collected location-based
data about consumers in
2013, but 23% plan to start
––EIU, 2013
31% of global companies (and
39% of agencies) are using
location-based targeting
––Econsultancy and Responsys, 2013
Local mobile ad spend will rise from 40% of
total US mobile ad spend in 2013 to 52% by 2018
––BIA Kelsey, Nov, 2013
Location
Services

I. Ecommerce TrendsIII. Where are
the media
dollars flowing?

Total media will see
a resurgence in
growth this year
1.1%
But if you strip out
digital & mobile,
growth is only:

2016: Mobile ad spending
overtakes the desktop
Get ready for two key inflection
points
Source: eMarketer, March 2014 
*share of U.S. media dollars
!
2018: Digital ad spending (37%)
overtakes TV (36%)*

$51B
Meanwhile, we reach another milestone
this year:
Total spending on US
digital advertising
Source: eMarketer, June 2014

Digital will
continue
growing at  
double-digit
rates
“[P&G is] getting close
to 30% of spending
being in… the digital,
social and mobile
spaces.”
––Jon Moeller, CFO, Procter & Gamble

66%
Digital spending is highly concentrated
among a handful of companies (two-
thirds of dollars go to nine companies)

Desktop spending will
dip 1.2% in 2014
Look out for the shift happening within
the digital ad spending mix
Mobile spending
will increase by
83%
Source: eMarketer, March 2014

Desktopocalypse???
Are we reaching the “End of Days” for our  
desktop-centric ad ecosystem???

Look at
desktop vs.
mobile ad
spending
trends
In 2016,
mobile will
surpass the
desktop  
by 16%

By 2018, mobile = 71% of the
digital pie
Desktop
= 29%

Mobile ad spending is on a tear
12.5X
Comparative Estimates

US mobile spending growth is
driven by both display and search
87% Display
82% Search

% of Advertising Revenue that
Will Come from Mobile in 2014
68% 84%37%
––eMarketer, 2014

Digital video ad
spending is also
ramping fast
2X

Where the digital video dollars are going
Mobile video
ad spending
will grow
faster than
any other
channel

In absolute dollars,
TV trumps digital
video in annual ad
spending increases
TV $s

$6.8B
Total Spending on US Social
Network Advertising
= 71%
of social media $s

Ad buying is increasingly automated
64%
Source: MAGNA GLOBAL, Oct 2013
Share of US digital display ads
that could be purchased
programmatically in 2014

RTB, as a subset of programmatic, will
also expand rapidly
Sources: eMarketer, 2014
US Real-Time Bidding Display Ad
Spending (in billions)
22%
of
display
spend
30%
of
display
spend

Source: MAGNA GLOBAL, Oct 2013
Programmatic… still
a work-in-progress
Only 12% of senior
agency buyers trust it to
properly or accurately
execute their orders
––Strata, 2014
Over 60% don’t feel
the industry has an
accurate and unified
definition of it
––Strata, 2014
1/2 of marketers don’t
understand it well enough to buy
and execute campaigns with it
––ANA and Forrester, 2014

% of respondents
Programmatic Approaches that US Executive
Marketers Currently Use vs. Plan to Use*, Sep 2013
Audience segmentation
79%
91%
Utilization of auction-based approaches to media buying (e.g.,
through a real-time bidding platform)
79%
86%
Insight development
63%
88%
Automation of back-end processes
59%
86%
Automation of "premium" digital media buying processes
59%
79%
Content optimization
47%
69%
Automation of traditional media buying processes (e.g.,
purchasing print advertising)
22%
44%
Currently Next 2 years
Note: *in the next 2 years
Source: Winterberry Group and the Interactive Advertising Bureau (IAB),
"Programmatic Everywhere? Data, Technology and the Future of Audience
Engagement," Nov 4, 2013
165667 www.eMarketer.com
Watch for
programmatic buying
to extend rapidly to
premium inventory

Programmatic will
migrate quickly to
video and mobile

Are you prepared for the transformation?
agree that marketing is undergoing a revolution84%
––Adobe, 2014 (survey among 1,004 US marketers)
expect digital and mobile to transform their
businesses over the next 5 years…
78%
––Accenture, 2014 (survey among 600 global executives)
21% think they’ll be able to reap…yet only
the benefits

… and speaking of change…
of marketers expect their role to change within
the next year (and 81% within the next 3 years)
64%
––Adobe, 2014 (survey among 1,004 US marketers)

Geoffrey Ramsey
Chairman, Co-Founder
geoff@emarketer.com @geofframsey
Get access to all eMarketer research.
Learn more here
http://www.emarketer.com/Corporate/Products

Big Picture Perspectives on Consumers and Marketing in an Always-on, Digital World

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