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Digital Marketing Trends for 2016 by YDM's Innovation Center (English)

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Digital Marketing Trends for 2016 by YDM's Innovation Center (English)

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This report highlights major trends worth taking into consideration in order to understand today’s digital market and get a sense of how the industry will evolve in the future.

This report highlights major trends worth taking into consideration in order to understand today’s digital market and get a sense of how the industry will evolve in the future.

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Digital Marketing Trends for 2016 by YDM's Innovation Center (English)

  1. 1. 1
  2. 2. The year 2015 certainly was a leap forward for digital industry. Implementation of big data and programmatic promoted personalized target marketing to deliver relevant messages in real time. Mobile was the foremost facilitator of dramatic changes in media consumption and the ways to deliver contents. Being able to stay connected with digital audiences anywhere at any time gave marketers unique opportunities never been possible with traditional marketing. Digital platforms are advancing to tap into every aspect of digital consumers from searching for information, to buying items, communicating with friends, sharing personal experiences, and consuming contents such as news, music and more. With new opportunities and progresses, concerns such as ad fraud, ad blocking and privacy issues came along, and these topics remain as marketers’ primary challenges to solve. The report highlights major trends worth taking into consideration in order to understand today’s digital market and get a sense of how the industry will evolve in the future.
  3. 3. DIGITAL MARKETING TRENDS FOR 2016
  4. 4. “ KEYWORDS FOR 2016 ” MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing Below are noteworthy keywords that YDM’s Innovation Center has selected based on major trends and changes occurred in digital marketing industry in 2015. From these keywords and overall trends, we have drawn seven insights that we hope will guide digital marketers through the year 2016. For details on each keyword, please refer to the section “Digital Marketing in 4 Categories.” (p. 12~)
  5. 5. Digital ad market is becoming glocalized. Whereas media and ad platforms such as Facebook, Instagram and Line exhibit features and services to encompass global audiences, technologies and creatives are becoming more specified and localized to serve consumers of different tastes and cultures in each region and country. Digital marketers will need strategies to broaden their audience reach on a global level through these digital platforms while in consideration of local characteristics. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive marketing 1
  6. 6. Marketing strategies will be optimized for personalized customer experience. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing More personalized customer experience will be possible as increasing amount of data are collected from mobile and wearable devices. Data based targeting will become more precise and segmented for customized, highly- engaging marketing practices. The ability to analyze and extract valuable insights from data will continue to be developed to fully understand the consumers. Brands will then be able to manage customer relationship more effectively. 2
  7. 7. Real time communication is a top priority for digital audiences. Real-time conversation between brands and consumers is possible on digital platforms, allowing more intimate and interactive communications. The ability to be connected with the consumers anywhere at any moment allows brands to adjust their marketing messages accordingly. More brands will focus on capturing consumers’ “micro-moments,” a specific point in time when someone wants to know, buy, do something, or to go somewhere. Immediacy in responding to the audiences will become the key ingredient for successful digital, especially mobile marketing. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing 3
  8. 8. Marketing automation will be more regularized and generalized. Marketing automation, especially mobile marketing automation will start being widely adopted by digital organizations. Under the lead of marketing technology companies such as Salesforce, Adobe and Oracle, more businesses will try to achieve more efficient customer relationship management and brand promotions by automating their digital marketing processes. This technology is expected to evolve towards predictive marketing, where marketers are able to track a user’s behaviors and predict his or her next move. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing 4
  9. 9. Leading digital platforms will keep users from leaving their walled gardens. More platforms, especially social and messaging, are going to perform as closed systems where users are alluded to stay on the app for various activities such as consuming contents, buying products, searching for information, and communicating with friends as well as brands. Mobile messaging apps are gaining special attention from digital marketers as these platforms not only are the most used apps by users but also allow brands intimate communications with their customers. As these platforms keep users from moving outside of their walled gardens, brands will need to consider strategies that are optimized for each platform. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad Blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing 5
  10. 10. Technology provokes a new focus on creative. New ad units and platforms driven by advanced technology trigger advertisers to produce different creatives to offer the best experience for consumer engagement. With the availability of new technologies such as virtual and augmented reality, marketers are able to offer contents that can provide unique and immersive experiences for customers. Whereas technologies to block intrusive advertisements are being developed and widely adopted, native ad formats which do not interrupt user experience can be one of the best solutions to solve the challenges of ad blocking. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad Blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing 6
  11. 11. More and more organizations will be digitally transformed. Digital will be the primary strategic development for more organizations. Based on big data analytics, brands will present advanced abilities to provide personalized contents and user experiences. Understanding new technology, diversified media and ad platforms will lead a step beyond for creative agencies to become a comprehensive digital organizations. This digital transformation will lead to substantial organizational changes in securing the right skills and creating organizational culture that promotes implementation of innovative digital strategies. MEDIA PLATFORM TECH CREATIVE Live Streaming Mobile Payment Big Data Video Contents Walled Garden Buy Button AI ( Digital Assistants) Native Ad App Activity Messaging Platform (Real-Time) Personalization Ad blocking IoT (Data) Cross Device Location IT VR/AR Influencer Ad Fraud Personalized Contents MCN Automation Predictive Marketing 7
  12. 12. MEDIA AD PLATFORM TECH CREATIVE DIGITAL MARKETING IN 4 CATEGORIES
  13. 13. M E D I A 1 Media Consumption Habits of Digital Natives  Influencer Marketing  Live Streaming Evolution of News Media  Social Media as News Platforms  Facebook’s Instant Articles  Twitter’s Moments  YouTube’s Newswire Mobile-centric New Media  Mobile News Apps  Curated Contents by Digital Native Media MEDIA INDEX MEDIA
  14. 14. Mobile and social are driving dramatic changes in the ways in which people, especially digital native generations, consume media. Real-time conversation between the content creators and viewers are possible on digital platforms, allowing more intimate and interactive communications. Live video streaming services and multi-channel networks have emerged as popular ways for younger generations to express themselves and connect with each other. Rather than brands pushing messages to customers in one direction, consumers themselves give influence on each other on deciding a brand’s image. In order to capture these changes in media consumption, publishers are creating channels and apps dedicated to mobile users. These mobile platforms consider user experiences for the ones who prefer to consume snackable contents anywhere at any time. Also, data on users allow curated contents personalized for each user, driving increased user engagements. Anyone can be a creator and media in today’s digital era, and professional networks and channels have started to be formed and organized to support these people. Marketers will need to understand how these digital audiences create, consume and transmit contents, and deliver brand messages that fit in naturally with their media consumption habits. MEDIA OVERVIEW M E D I A 1
  15. 15. • Last September, eMarketer reported that global digital ad spend will increase 18% in 2015 to reach $170 billion, making up nearly 30% of the total ad market. • Mobile ad spend is growing particularly rapidly at around 70%, holding more than $72 billion of the digital ad market. • Digital, especially mobile, is having increasing impact on every aspect of consumers’ lives from consuming media to making purchases and communicating with each other. Source: eMarketer M E D I A 1 Digitalized Media and Ad Market Media and ad market are becoming more and more digitalized.
  16. 16. Mobile, especially mobile apps, drive digital media consumption. • 62% of all digital media time is now mobile. • Time spent on desktop has decreased from 49% to 38% since 2013. • Time spent inside mobile apps by US consumer on average has exceeded that of TV. Increased Consumption of Digital Media M E D I A 1 Source: Marketing Land
  17. 17. Social influencers have greater impact on consumer decisions than branded contents. Influencer Marketing • Increasing number of consumers rely on social media to direct their purchase decisions, and some social media users create impact that are equal or even greater than branded contents. • Influencer Marketing: the idea of associating with social content creators whose opinions and stories about products determine many other consumers’ attitudes towards a brand and guide purchase decisions. M E D I A 1
  18. 18. Marketers engage with influencers on different social platforms. Influencer Marketing Eunice Annabel, Influencer in Singapore • Influencer marketing has mainly started with bloggers who can deliver comments about the brand’s products or services in a way that seems less curated and can appeal to users more naturally. • As different types of social platforms proliferate, ways to engage social influencers for marketing purpose are also diversifying • Instagram is one of the vastly utilized platforms for influencer marketing. It is mobile optimized, appeals to millennials, is highly visual and viral. M E D I A 1
  19. 19. Multi-Channel Networks (MCN) aggregate contents from influential individual video content creators. Influencer Marketing: Multi-Channel Networks PewDiePie’s YouTube Channel • Online, especially mobile, video market is expanding in an unprecedented rate. • YouTube stars are more popular than mainstream celebrities especially for younger generations (Gen Z). • MCN businesses share advertising revenue with individual content creators by entering into an alliance with them and supporting contents marketing, distribution, investment, copyright management, monitoring, and audience finding. Kyungsun’s YouTube Channel M E D I A 1
  20. 20. Creators build intimate relationships with viewers through original contents and real-time conversation. Influencer Marketing: Multi-Channel Networks • The creators who express themselves through various subjects such as beauty, game, cooking and so on are establishing a new video contents ecosystem. • Due to fewer restrictions and burdens of deliberation, MCN provides unfiltered and authentic contents which are hardly found in traditional media. • Major Players: Maker Studios, Machinima, Defy Media, Vevo, Awesomness TV, Fullscreen • Major Players (Korea): DIA TV, Afreeca TV, Treasure Hunter, MAKEUS, TOSQ M E D I A 1
  21. 21. Mobile devices have created a whole new opportunities for live streaming. Live Streaming • Mobile devices have built better conditions for live streaming. • Portability: Being able to bring the device anywhere opens up for more dynamic and compelling content creation. • Connections: faster mobile broadband networks enable people to stream or watch in high-quality. • Visual: better cameras and screens make contents more visually appealing. • Apps which are solely dedicated to feature live streaming functions, are continuing to emerge and be developed. – ex) Meerkat, Periscope, V (by Naver) Periscope Meerkat V M E D I A 1
  22. 22. Brands can utilize live streaming in various ways to captivate digital audiences. Live Streaming • Release of new products or services: spur the interests of potential customers and enhance buzz around new release. • Exclusive contents: Behind the scenes such as company tours or making films, as well as teasers and interviews only shown to live stream audiences can attract special attention from the customers. • Personal customer service: Since live streaming allows real-time conversations between the brands and customers, brands can immediately address pertinent issues and solve problems through creating sessions such as live Q&A. M E D I A 1
  23. 23. Increased role of social media for news consumption Evolution of News Media • Facebook drives more traffic to news sites than Google. • The core characteristics of both news and social media is virality. Source: Parsely M E D I A 1
  24. 24. Facebook Evolution of News Media Instant Articles Notify M E D I A 1 • Instant Articles - By hosting selected publishers’ articles natively on its app, Facebook provides qualified contents to its audiences without letting them leave its platform. This feature allows convenient consumption of news articles for the audiences, wider reach of their contents for publisher, and collection of rich contents for Facebook. • Notify - app for reading customizable breaking news and information by receiving push notification on lock screen • The usage of mobile alerts and notifications has grown as news market is becoming increasingly competitive.
  25. 25. Evolution of News Media • Moments - curated streams of event-based content for mobile users - includes tweets, images, videos, contents from Vine and Periscope - a place for sharing real-time news as people instantly create and upload videos of events going around them - Promoted Moments allow brands to present immersive promotional stories for the users by addressing real-time events or seasonal narratives. Moments Promoted Moments M E D I A 1 Twitter
  26. 26. Evolution of News Media • YouTube Newswire - In partnership with social news agency Storyful, Newswire provides a curated and verified feed of the day’s most newsworthy events being published to YouTube. - “social journalism” - help journalists to gather resources related to breaking news including first-hand accounts from eyewitnesses. M E D I A 1 YouTube
  27. 27. Traditional media revamps with digital touch, as digitally native new media receive special attentions from users. Mobile-Centric New Media • Traditional news publishers target digital audiences with news editions for smartphones. Ex) The New York Times Now, Economist Espresso • Digitally native media companies such as BuzzFeed, Upworthy Vox, Vice, Pikicast, Moncast, and Subusu News provide innovative news formats optimized for digital, especially mobile platforms. • The ways to present news are becoming more and more interactive, creative, and mobile-centric. NYT NOW The Economist Espresso M E D I A 1
  28. 28. Digital new media provide curation services to serve the right contents to the right audiences. Mobile-Centric New Media • They use images and videos with minimal texts to capture the eyes of users who consume contents on mobile on the move. • Based on users’ data such as their news consumption history, digital news media provide curated contents that serve users’ interests. BuzzFeed Pikicast Moncast M E D I A 1
  29. 29. A D P L A T F O R M 2 AD PLATFORM Programmatic & RTB  Mobile Programmatic Ads  Programmatic Expanding to TV Ad Market E-commerce Platforms  Digital Ad Platforms as Consumption Triggers  Pinterest’s Buyable Pins  Facebook’s Buy Buttons  Google Shopping Messaging Apps as Full-Featured Business and Marketing Platforms  Messaging Apps as Media Platforms  Messaging Apps as Social Platforms  Messaging Apps for Mobile Commerce and Online Payment  Creative Ad Formats on Messaging Apps  Personalized Mobile Search AD PLATFORM INDEX
  30. 30. A D P L A T F O R M 2 Programmatic advertising, where exchanges match ads with predefined audiences, are expanding its reach beyond web to mobile and even TV market. The boundary between traditional and digital advertising is becoming meaningless as more people are using multi-screens such as smartphones, tablets, desktop PCs, TVs and so on at the same time. The ability to get a holistic view on the user’s experience in different devices and provide the right messages at the right time on appropriate platforms is becoming ever more important for advertisers. Many digital ad platforms not only deliver brand messages but also trigger consumption right on their platforms. With increased online purchases, major platforms such as Facebook, Instagram, Pinterest, and Google have introduced buy buttons that users can make instant purchases along with discovery of desired items. Ad platforms no longer simply serve as channels to deliver marketing messages, but they go beyond to impact the entire consumer journey from discovering information to the actual purchase. The evolution of messaging apps has been remarkable this year, and their transformation towards full-featured business and marketing platforms will be continued next year. Moving beyond offering ways to send and receive messages, messaging apps offer digital contents such as news and games, allow mobile payments, provide O2O services such as hailing a taxi and ordering foods, and offer advertising opportunities different from traditional ways of delivering brand messages. With increasing user base and the fact that they allow one-to-one like intimate communication, messaging apps are expected to act as the next major marketing platforms. AD PLATFORM OVERVIEW
  31. 31. A D P L A T F O R M 2 Programmatic and Real-Time Bidding (RTB) are increasing their shares in digital advertising revenue. Programmatic & RTB • Programmatic advertising means automating the buying, placement and optimization of ads. • For the first time in 2015, programmatic transactions will be a majority (52%) of non-search digital ad spend in the US. • Spending on programmatic advertising is growing at about 20% annually. • RTB is growing even faster, at about 24% CAGR. • In particular, mobile and video RTB are presenting rapid growth, at roughly twice the rate of programmatic overall. Source: Business Insider
  32. 32. A D P L A T F O R M 2 Programmatic ad buying is moving beyond desktop banners and expanding to mobile. Programmatic & RTB • US mobile programmatic ad spending is expected to reach $9.33 billion this year, accounting for 60.5% for total US programmatic display ad spending. • Marketers consider mobile as the format expected to have the most opportunity for programmatic buying since social, video and native ads are increasingly intertwined with mobile Source: eMarketer
  33. 33. A D P L A T F O R M 2 Programmatic ad buying is starting to be integrated in TV ad market. Programmatic & RTB • Due to the advent of digital video distribution, TV has transformed from a mono-directional to a bi- directional communication medium. • Broadcasters can now learn a lot about the demographics and personal information of TV ad viewers. • Data on the viewers can be applied to target different ads to different demographic segments to increase impressions or engagement. • Targeting and efficiency are the two major reasons for TV programmatic advertising.
  34. 34. A D P L A T F O R M 2 Total Audience Measurement & Target Rating Points Programmatic & RTB • Increasing number of people consume digital media in conjunction with TV viewing. • Introduced by Nielsen during Advertising Week 2015, total audience measurement provides metrics for both linear and dynamic programming on TV and digital. (like-for-like metrics for TV and digital video) • Facebook’s Target Rating Points (TRP} allows marketers assess how well their Facebook video ads perform in conjunction with TV ads. • Facebook’s research reveals that conducting campaigns synchronized across TV and Facebook raises targeted reach 19% versus TV alone, and this increase is 37% with millennial audiences. Nielsen’s Total Audience Measurement Facebook’s Target Rating Points
  35. 35. A D P L A T F O R M 2 Programmatic & RTB Google’s programmatic ad for native content and mobile video publishers • Programmatic native advertising for mobile devices • Programmatic full-screen video ads for mobile devices ONE, AOL’s open, unified programmatic platform • Aimed at assisting marketers optimizing their campaign goals across all screens, formats and inventory types. Hulu offers programmatic advertising by partnering with Oracle and Facebook’s LiveRail • Hulu, the streaming-video service, has partnered with Oracle Data Management Platform and Facebook- owned video-ad platform LiveRail to offer programmatic ad options. • Aims to increase efficiency and ROI for marketers
  36. 36. A D P L A T F O R M 2 • Time spent on apps are increasing significantly as native mobile apps provide better user experience and more features than mobile websites. • The growing number mobile-first and mobile-only users facilitates app usage especially in messaging, social networking, shopping, and gaming areas. • It would be necessary to learn how leading platforms such as Facebook, Twitter, WeChat, KakaoTalk and more utilize digital technologies and creatives in order to offer enhanced user experience and increase retention and engagement rates. Source: Flurry App-Centric Digital Activities Digital activities are becoming mobile, especially app-centric.
  37. 37. A D P L A T F O R M 2 • Time spent on apps by US smartphone and table users (per day) • 2 hours and 51 minutes in 2014 • 3 hours and 5 minutes in 2015 (estimate) • 3 hours and 15 minutes in 2016 (prediction) Source: eMarketer App-Centric Digital Activities Digital activities are becoming mobile, especially app-centric.
  38. 38. A D P L A T F O R M 2 Ad Platforms for E-commerce Digital ad platforms are evolving as total marketing platforms which trigger consumption. • Mobile and social drive e-commerce growth. • Contextual commerce: recommendations based on user’s mobile usage and location. • Mobile becomes the ultimate “remote control” of our lives, simplifying and enabling all of our daily transactions. • Social media act as platforms for discovering and learning about new products and services. • “Word-of-mouth” context is important for both consumers and merchants. • “shoppable social” – buy buttons; beyond researching about products and services, people directly purchase items on social platforms • “showrooming” – the act of checking out merchandise in-store and then purchasing the item online • “app-rooming” – using a mobile app to browse items, then physically going to the store to purchase items
  39. 39. A D P L A T F O R M 2 Ad Platforms for E-commerce Pinterest users visit the platform with “buying mindset.” • Among active Pinterest users, 93% plan for purchases through the site and 87% have purchased something because of what they saw on the site. (app-rooming) • Buyable Pins – users can purchase items directly within Pinterest • Buyable Pins have revamped with hand-curated catalog of items that uses can buy right from the platform. • In-Pin search allows users to choose just one portion of the original pin and get more granular detail on that item. Buyable Pins Handpicked Buyable Pins In-Pin Search
  40. 40. A D P L A T F O R M 2 Ad Platforms for E-commerce • Purchases on Google: buy button like feature which will allow shoppers to purchase products that come up in Google’s paid shopping ads directly form mobile devices. • Google shopping gets mobile-optimized. - Shopping-related searches are taking place more on mobile devices than on desktop computers. - Google’s updated mobile shopping turns user experience more like the experience of using mobile application. (tap and swipe for navigation) - Users can easily narrow down their searches and view details on the items. - Consumers can check out items online, or find nearby stores that have the product in-stock by applying the “available nearby” filter. Purchases on Google Mobile-optimized Google Shopping Google
  41. 41. A D P L A T F O R M 2 Ad Platforms for E-commerce Facebook does not want its users to leave its platform for shopping. • Buy button • Facebook Shopping Feed – A dedicated shopping feed section prevents consumers from being distracted by other News Feed. • Ad format “Canvas”: fast-loading, full-screen ad which allows users to browse different products, then zoom in and see the details. Buy Button Shopping Feed Canvas
  42. 42. A D P L A T F O R M 2 Ad Platforms for E-commerce Facebook Restaurant Review Reviews and ratings on social platforms are posing increasing influence on consumer choices. • The way people find and consume food, and share their dining experiences has become digitalized. • People now search for healthy ingredients and food recipes online, search nearby restaurants with mobile phones, order food for delivery online, and share images of food they had on various social platforms. • With recipe search being one of the most popular consumer activities on the web, online ratings and reviews help consumers fine-tune their searches. • Facebook’s restaurant review search integrates critic review when users search for and visit pages of restaurants on its platform.
  43. 43. A D P L A T F O R M 2 Ad Platforms for E-commerce Target uses Snapchat, Facebook and Instagram for digital holiday campaign. • Target did its big holiday campaign across social and messaging platforms including Facebook, Instagram and Snapchat. • Facebook’s “Canvas” e-commerce ads – Canvas lets users browse items in a fast-loading, full-screen mode. • Instagram’s ad unit Marquee • Rolled out thanksgiving-themed geofilter to all Snapchat users in the U.S., and starting from Dec. 1, a new holiday-themed design will be released each day through Christmas. • Target saw sales volume more than twice as its busiest day ever. Target’s Digital Holiday Campaign
  44. 44. A D P L A T F O R M 2 Messaging Apps The usage and significance of messaging apps are increasing. • Mobile messaging apps will be used by more than 1.4 billion consumers this year, representing 31.6% increase from last year. The number is expected to reach 2 billion by 2018, meaning 80% of smartphone users worldwide will use mobile chat apps. • The top four messaging apps (Facebook Messenger, WhatsApp, WeChat, and Viber) combined have more users than the top four social networks (Facebook, Twitter, LinkedIn, and Instagram) Sources: eMarketer, Business Insider
  45. 45. A D P L A T F O R M 2 Messaging Apps Why do we care about messaging apps? • Messaging apps not only have large user base, especially younger generations, but also have high retention and usage rates. • Whereas more than half of smartphone owners have 40 to 70 apps installed on their devices, more than 70% of them use less than 7 apps per day. (Millward Brown) • Roughly 80% of smartphone app time is spent with a user’s top three apps. (comScore) • For brands that do not already have a huge app or website presence, participating in messaging apps offer sound opportunities to be connected with users. Messaging apps not only are one of the go- to apps that users spend most of their app usage time, but also offer one-to-one like experience between the consumer and the brand. Source: Millward Brown Digital
  46. 46. A D P L A T F O R M 2 Messaging Apps - Media Messaging apps are becoming full-featured business and marketing platforms. • curated contents from leading media brands • native ads that naturally resonate with contents on Discover • Partnering with 24 popular online, print and TV news outlets, Line News is trying to become one of the most popular places for Japanese users to consume news. • Users can choose which news media outlets to follow, divided by categories. • Channel provides a variety of curated contents including news, lifestyle, and entertainment based on users’ interest. • contents recommendation algorithm RUBICS (Real―time User Behavior―based Interactive Content Recommender System) to analyzes users’ response to the contents and provides stories that are optimized for the specific users Snapchat’s Discover KakaoTalk’s Channel Line News
  47. 47. A D P L A T F O R M 2 • social feed where users share updates, news and photos with friends • Moments allow brands target specific types of consumer to promote their own posts and get new followers. • branded graphic that users can overlay on top of their photos when they are in specific locations • turn people visiting their stores into social media ambassadors since geofilters guide users to share videos that promote the brands or products to a wider audience Messaging Apps - Social Messaging apps are becoming full-featured business and marketing platforms. Moments Geofilter
  48. 48. A D P L A T F O R M 2 • Increasing number of messaging apps, especially the ones from Asia, are venturing into mobile commerce and payment services. • Users can perform in-app purchases such as buying stickers and emoticons. • They can also pay for taxis, purchase movie tickets, order foods and many more. • WeChat Pay and QQ Pay (QQ is Tencent’s older messaging app) have now exceeded 200 million users who have tied a bank card to the service. Messaging Apps – Mobile Commerce and Online Payment Messaging apps are becoming full-featured business and marketing platforms. Line Pay Kakao Pay WeChat Pay
  49. 49. A D P L A T F O R M 2 • Branded stickers (Line) and emoticons (KakaoTalk) • GIFs (Kik) – branded GIFs to be uses while chatting with Kik’s users thorugh Promoted Chats – integrated GIF search feature allows users to use emoji to find the kind of GIFs, making the discovery and sharing GIF files as easy as sending photos or videos. • Snapchat’s “Lenses” – users can add animated filters to their face – brands can offer “Sponsored Lenses,” which will turn advertising more interactive, personal, and engaging since they inherently depend on the sender’s face, making them always unique and intimate. Messaging Apps – Creative Ad Formats Messaging apps are becoming full-featured business and marketing platforms. Kit’s Intergrated GIF search Lenses Sponsored Lenses
  50. 50. A D P L A T F O R M 2 • More personalized and contextual mobile search within messaging apps • Kakao Talk’s “# search” - Simply by entering “#” on chat browser, users can search keywords that they are looking to get information about without leaving the chatting space. • Facebook Messenger’s “M” – personal digital assistant powered by artificial intelligence to help users search for information and services, as well as perform tasks such as booking restaurants and making travel arrangements on behalf of them. Messaging Apps – Personalized Mobile Search Messaging apps are becoming full-featured business and marketing platforms. Kakao Talk’s # Search Facebook Messenger’s M
  51. 51. T E C H 3 Big Data  People-based Marketing Artificial Intelligence & Machine Learning  Personal Digital Assistants  Search Evolution Marketing Automation  Why Marketing Automation?  Lead Generation  Predictive Marketing TECH INDEX TECH
  52. 52. T E C H 3 Enormous amount of users’ data are available due to the proliferation of digital media and platforms, and digital technology enable marketers to collect and analyze the data in order to gain valuable insights on consumers. These insights gained from data help understand consumer needs and wants, enabling brands to provide appropriate services personalized for consumers’ tastes. Technologies such as artificial intelligence and machine learning are fostering the development of features and services to meet digital audiences’ needs at the right moment. Personal digital assistants will continue to be smarter and accurate, and revolutionize the role of online search by not only find information for users but also complete tasks on behalf of them even before users ask. As a way to enhance customer relationship and generate meaningful leads, marketing automation technologies enable brands to expose relevant messages at different stages of consumer journey. By automating the process of analyzing which message to deliver to a specific person at which point, marketing automation promotes highly engaging and effective brand promotions. This technology is expected to evolve towards predictive marketing, where marketers are able to track a user’s behaviors and predict his or her next move. TECH OVERVIEW
  53. 53. T E C H 3 Big Data Big Data spending will see 23.1% CAGR until 2019. • The advent of various media and platforms allows collection of enormous amount of consumer data. • Digital technology enables fast and thorough analyses of these data. • Bid data analysis help marketers understand consumer needs and provide appropriate services. • According to IDC, big data technology and services market will grow to $48.6 Billion in 2019. • Three major big data submarkets are infrastructure, software, and services. All three areas are expected to grow over the next five years. • According to Gartner the value chain of business operations will shift from “a labor-driven and technology-enabled paradigm” to a “digital-driven and human-enabled model.” Source: Forbes
  54. 54. T E C H 3 Machine Learning, AI Personal Digital Assistants • By the end of 2016, autonomous mobile assistant purchasing is expected to reach $2 billion dollars annually, representing about 2.5% of mobile users trusting assistants with $50 a year. • AI-based personal digital assistants find information for the users and complete tasks on their behalf. • AI and machine learning enable marketers to understand consumers’ needs contextually and deliver messages and/or services relevant to them. Apple’s Siri Microsoft’s Cortana Facebook Messenger’s M Google’s Google Now
  55. 55. T E C H 3 Machine Learning, AI “The future of search is to try to build the ultimate personal assistant.” - Behshad Behzadi, director of search innovation at Google’s Zurich lab • AI and machine learning can help better deliver personalized search results at “micro-moments,” a specific point in time when someone wants to know, buy, do something, or to go somewhere. • Voice search: Improved ability to process natural language is enabling voice-based assistants to better understand complex requests and meaning behind users’ questions. • Search with advanced technology concentrates more on grasping the intent of users’ search than finding the correlation between the search word and the result. Google Search Naver Search
  56. 56. T E C H 3 Marketing Automation Marketing automation supports brands to connect with consumers at different stages of consumer journey with relevant messages. • Marketing automation refers to technologies and software platforms designed to effectively conduct marketing practices on multiple channels and automate repetitive tasks. • It allows brands to deliver “the right message to the right person at the right time in a way that is scalable.” • Marketing automation industry, especially mobile marketing industry, is proliferating with increased investments and acquisitions in related fields. Source: VentureBeat Engagement, or mobile marketing automation, was the largest investment space after analytics, highlighting the growing attention to mobile marketing.
  57. 57. T E C H 3 Marketing Automation Marketing automation tools enable marketers to combine multiple marketing channels in the same workflow and increase the likelihood of leads engaging with the brand’s message. • E-mail: automated nurturing emails for potential customers, automated product recommendations for existing customers, and retarget ones who abandoned the cart before purchasing. • Social: manage social media content for various social platforms, schedule standard reports for analytics, and optimize posts to increase engagement. • Web: provide personalized ads by tracking website visitors’ online behavior • Mobile: target users across time, space and devices by integrating locational context; deliver messages based on a customer’s physical location and send personalized push notification by analyzing the user’s specific in-app behaviors.
  58. 58. T E C H 3 Marketing Automation Predictive marketing • By analyzing a wealth of data regarding customer behavior, predictive analytics uncover the patterns of existing as well as potential customers in order to determine who are most likely to buy or who has the greatest revenue potential. • It provides insights on the customers’ next move and automatically use the insights to provoke certain actions. • Predictive analytics will become key focus of digital marketers since the ability to know the next movement of a customer is directly related to revenue. Amazon’s predictive analytics system allows them to begin shipping products before a customer even order them by analyzing the customer’s previous purchase history and consuming behavior and predicting the probability of him or her buying specific products. This way, Amazon can reduce shipping times and provide faster services for the customers. Amazon’s “anticipatory shipping” patent Source: Wall Street Journal
  59. 59. C R E A T I V E 4 Diversified Creatives for Mobile Users  Online Videos  Creative Options for Mobile Contents Virtual Reality and Augmented Reality  Immersive User Experience  Virtual Journalism Ad Blocking and Native Ads  Increased Use of Ad Blocking Softwares  L.E.A.N. Ads  In-app and Social Ads CREATIVE INDEX CREATIVE
  60. 60. C R E A T I V E 4 The advancement of technology demands, and at the same time, provides opportunities for new creatives. With the overflow of digital contents causing people’s attention spans to be shortened, interactive and concise online video contents have become potent ways to capture the eyes of digital consumers. Visually appealing images and GIFs are also proven to be effective methods to attract engagement from users. Investments in virtual reality and augmented reality technologies are getting full-fledged. From premium VR headsets such as Oculus Rift, HTC Vive and Samsung Gear VR to more affordable devices like Google Cardboard, there will be ample options to experience this new technology. Platforms such as Facebook and YouTube are already integrating 360 degree videos to provide immersive user experience. VR will lead the ways in which brands and content creators deliver their stories to a whole different level. The number of people using ad blocking software have soared in 2015, and this phenomenon poses a serious threat to digital media companies that depend on advertising for revenue. The major reason that people block ads is that ads impede seamless user experience. In order to encourage users not to block ads, advertisers are focusing more on native ads that do not disrupt user experience. CREATIVE OVERVIEW
  61. 61. C R E A T I V E 4 Digital video consumption continues to rise. • Not only Gen Z consumers but also older generations are watching as much digital video as TV. • Average consumer between the ages of 16 and 45 worldwide watches 204 minutes of video a day, split equally between TV and online. 201 minutes on live TV and on demand TV, 45 minutes on smartphone, 37 minutes on computer, and 20 minutes on tablet Digital Videos Source: Millward Brown
  62. 62. C R E A T I V E 4 Mobile share of all digital video viewing is growing especially due to the increased usage of smartphones. • The share of mobile phone digital video view worldwide increased from 7% to 39% during the period between September 2013 and September 2015. • Increase consumption of contents on mobile devices drive more creative options to be optimized for smaller screens. Digital Videos Source: eMarketer
  63. 63. C R E A T I V E 4 More creative options optimized to be viewed on mobile devices are being developed. • People have tremendous amounts of digital contents available to watch at any time wherever they are, causing shortened attention spans. • In order to capture the minds of the ones who consume video contents with mobile devices on the move, brands offer short-forms of video across multiple channels. • Auto-playing videos are being widely adopted for its high rate of audience reach and engagement. • More immersive video experiences are delivered to consumers through 360 degree videos. Digital Videos 360 degree video on Facebook
  64. 64. C R E A T I V E 4 More creative options optimized to be viewed on mobile devices are being developed. • Various platforms including Facebook, Instagram, Tumblr, and Kik rolled out GIF supporting features. • With its short and eye-catching nature, GIF is increasingly attracting attentions for being a fun and easy way to express the emotions of digital oriented minds. Digital Videos Instagram’s Boomerang Tumblr’s GIF Maker Kik’s GIF Search
  65. 65. C R E A T I V E 4 Visual social platforms such as Instagram offer unique creative opportunities for brands. • Since food is inherently social, it is a vital subject on social media. • Food videos are “thumb-stopper,” videos with compelling images such that users will stop scrolling through Facebook new feeds. • Because of its visually appealing nature, Instagram is one of the most frequently used social platforms to share food related images. • Increasing number of culinary brands create snackable and compelling food images to trigger viewers for ideas and desires. Digital Food Culture Fauchon Paris on Instagram
  66. 66. C R E A T I V E 4 • Augmented and virtual reality markets combined will reach $150 billion by 2020. • Investments in these markets will lead to more diverse content services for VR and AR devices. • Sales of virtual reality devices will reach 14 million units worldwide in 2016, and jump to 38 million by the end of 2020. • Mark Zuckerberg highlighted that VR is “the next major computing and communication platform after phones.” • VR will provide opportunities to share experiences in much more immersive ways. Virtual Reality Source: TrendForce Augmented and Virtual reality provide opportunities for new creatives.
  67. 67. C R E A T I V E 4 Virtual Journalism • In partnership with Vrse, the virtual reality production company, The New York Times is continuing to create virtual reality films. • NYT started sending over a million Goggle Cardboard sets to its subscribers in anticipation of its VR app. • “The Displaced” – VR documentary on the stories of children affected by war. • Virtual journalism clearly exemplifies how people can utilize technology to leverage storytelling such that viewers are engaged not only visually but also emotionally. Virtual Reality
  68. 68. C R E A T I V E 4 Increasing number of people use ad blockers. • The number of monthly active users of ad-block software globally has reached nearly 200 million with 40% year over year growth rate. • The main reasons people use ad blockers are 1) Annoyance - People are simply annoyed by overly intrusive ads. 2) Usability - Ads increase load times of web pages and use up memory on devices. 3) Privacy - People are concerned about their personal data being misused to personalize the ads. Ad Blocking Source: PageFair and Adobe
  69. 69. C R E A T I V E 4 We need to create better ads. • Ad blocking poses a considerable threat to digital media companies that depend on advertising for revenue. • In response to this phenomenon, Interactive Advertising Bureau (IAB) has launched L.E.A.N. Ads program. • “We messed up. As technologists, tasked with delivering content and services to users, we lost track of the user experience.” – IAB • ”Acceptable Ads” initiative - Acceptable ads are defined as the ones that are not annoying, do not disrupt user experience, transparent, and appropriate to the site that users are visiting. • Marketers need to deliver non-disruptive message that are relevant to their target audiences. • In addition to native ads on the web, native ads on social platforms like Facebook and Twitter, as well as mobile display in apps, could become popular ways to get around ad blocking. Ad Blocking Acceptable Ads L.E.A.N. Ads
  70. 70. C R E A T I V E 4 Increased focus on in-app and social ads • Since ad block software does not block ads inside mobile apps, brands will shift their resources to social media, native advertising and influencer marketing. • The main reasons people use ad blockers are 1) Annoyance - People are simply annoyed by overly intrusive ads. 2) Usability - Ads increase load times of web pages and use up memory on devices. 3) Privacy - People are concerned about their personal data being misused to personalize the ads. Ad Blocking
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