FUTURE FOCUS 2018 1
“ Welcome to Future Focus “ 2018 2
We are pleased to welcome you to AQL This volatile and changing marketplacefor iProspect Leeds’ Future Focus 2018 means it is increasingly difficult to plan forevent. the future and with digital transformation driving change in consumer behaviour, itAdvances in technology continue to poses risks to all who fail to adapt. Today’saccelerate at speed. Coupled with growing event will discuss a number of key topicscustomer expectations, it is increasingly on the business agenda, that will resonateimportant to harness the power of new whether you represent a FTSE 100 PLC or adigital capabilities. start-up business.From powering communications strategies, Whilst many of the themes are only justto customer service, logistics and financial beginning to emerge, they do need to besystems, everyone is witnessing change. on your roadmap. Early adopters gain first-Both established and start-up businesses mover advantage and earn the opportunityare pushing the boundaries of product and to steal share from their competitors.service propositions; disrupting traditionalmodels and challenging the notion of brand We hope that throughout the afternoon youloyalty. will feel inspired to review your long-term business and marketing strategy, and excitedUnderstanding the connections between to action some of the many insights shared,digital platforms, combined with access all of which we believe will help to maketo the skills required to integrate, store positive changes to your business today.and activate data, is critical in achievingexceptional customer experience that will PETE COATESdrive your business forward. iProspect Leeds 3
Contents1 Foreward: Stefan Bardega, UK & Ireland CEO p.62 Today’s Speakers p.83 Enhanced Customer Experience p.144 New Machine Rules p.205 Artificial Intelligence & Machine Learning p.26 4
6 Commerce Everywhere p.327 Marketing to the Machine p.388 Channel Convergence p.449 The Amazon Universe p.5010 Get in Touch p.56 5
1 Foreword 16
1STEFAN BARDEGA Foreward: Stefan Bardega,CEO of iProspect UK & Ireland UK & Ireland CEOFuture Focus is a very apt name for our event. wave is voice activation which changes both theWhy? Because success in today’s digital inputs and outputs for digital marketers. We areeconomy requires marketers to do two things already seeing fundamental changes due to voicesimultaneously. Firstly, we must look ahead activation, including entirely new types of queriesto the future; anticipating what techniques, and ‘winner takes all’ results output.behaviours and platforms we need to harnessto gain competitive advantage. But secondly Machine Learning enables us to process(and perhaps more important) we need to focus; vast amounts of digital data and then makewith limited time, budget and resource we need optimisation decisions in near real time.to ensure we focus on the things that will drive Previously this skill was the preserve of big globalcompetitive advantage. For that reason, we see Silicon Valley platforms. But no longer. Machinefour key opportunities that represent the future of learning has been democratised and can nowdigital marketing; but can be harnessed today for be applied to any marketer’s digital activity;those who seek competitive advantage. driving better faster performance outcomes and delivering operational efficiencies in the process.User experience is an increasingly differentiatingbattleground for brands in the digital economy. The duopoly of Facebook and Google isBrands who focus on a winning experience being disrupted by Amazon. This emergingacquire customers more efficiently on one hand, marketing platform is already responsible forand build loyalty on the other. an estimated 55% of product searches and is systematically going after a double digit shareHuman computer interaction (HCI) is digital advertising revenues. It now represents afundamentally changing thanks to voice marketing channel as well as a channel to market.activation. The first wave of HCI was computer/laptop and keyboard input, followed by mobile Anticipate the future, and focus; that is howwith touch screen input and sensors. The next brands win in the digital economy today. 7
2 Today’s Speakers 28
2 Today’s Speakers PETE COATES Director, iProspect LeedsA digital specialist with over 13 years’ experience in the industry; a graduate of the prestigiousIPA Excellence Diploma and an expert in developing integrated digital strategy. With abackground covering the entire bought, owned and earned digital media ecosystem; Pete isresponsible for leading iProspect Leeds’ team of strategic client service and channel specialistsin delivering digital solutions that make a genuine impact on our clients’ businesses. SOPHIE WOOLLER Director of Data and Technology ProductsSophie is the Director of Data and Technology Products at iProspect London. She leads abrilliant team across a comprehensive product portfolio including Analytics, Consultancy, CRO,Data Intelligence, Data Visualisation, Technical SEO and Ad Ops who deliver transformativebusiness outcomes with a data led approach. 9
RAHUL PARMAR Business Manager; Adtech, GoogleRahul leads the AdTech vertical for Google Cloud in the UK, and is the Global lead for DentsuAegis Network on Google Cloud. In this role, he is responsible for helping the world’s largestmedia agencies develop new ways of working with data to more effectively target andinfluence consumers using Google Cloud Platform. Prior to joining the Cloud team, Rahulworked with these same agencies on large-scale commercial deals for DoubleClick, Google’sprogrammatic advertising stack. CAROLINE REYNOLDS Director of Performance Media ProductsSince joining iProspect in 2015, Caroline’s career has included highly productive stints atgroups such as Mindshare, DigitasLBi and Razorfish. These saw her focusing mainly ondriving results across Paid Search, before taking on a broader remit within her current role inJune 2017. Caroline leads a team comprising an ever-increasing number of disciplines andcontaining a wealth of different talents, skills and personalities. It is her job to spot the synergywithin these divisions and create transformative business opportunities for iProspect’s clientbase. 10
ANNABEL THORBURN Consulting DirectorWith a career exceeding 15 years in the retail industry, Annabel uses her experience tohead up our retail consulting team. Annabel’s experience is primarily from Tesco, where sheworked across multiple disciplines including online marketing and trading, web and mobileproduct development, strategy and commercial. She has led teams delivering step change,multi-channel projects, for example launching the first grocery apps and mobile websites;developing and launching grocery subscriptions in the UK; launching grocery home shoppingacross eastern Europe and Asia. IAN WILLIAMS Associate DirectorIan has gained significant experience over the past eight years within the specialisms ofecommerce, data and customer experience. Working predominantly with internationalretailers, Ian has helped to simplify complex online/offline customer journeys, usedpersonalisation engines to deliver tailored retail experiences, and created dynamic real-timedigital experiences across multiple ad platforms. He is now responsible for leading one ofiProspect Leeds’ client teams. 11
DAN STEPHENSON Head of Sky AdSmartDan is currently the Head of Sky AdSmart at Sky Media and is fundamental to leading thedevelopment and sales for Sky’s industry leading addressable TV platform.Having worked on the commercial and strategic development of Sky AdSmart and also therecently launched Sky AdVance proposition, Dan has successfully built alliances with partnersand clients to enhance Sky platforms through unique/leading data sources, custom data andpropositions. 12
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Enhanced 3 Customer Experience 314
3Enhanced Customer Experience Enhanced Customer ExperienceData is the currency of the Digital Economy. Harnessing data to power your businessUnderstanding how to collect, organise, operations and communications canstore and activate the data available to your be challenging. With multiple strategicbusiness is a crucial component of your approaches, technology platforms andfuture strategy. opinions to navigate it can be difficult to know where to start. What is crystal clear,Customers expect increasing levels of however, is that the longer a business takesrelevance and personalisation in their to develop and activate a solid customer-brand interactions; demanding seamless centric data strategy, the less relevant theyexperiences in both on and offline will become to their customers and theenvironments. The amount of data we create greater the effect on the bottom line.is growing exponentially, with most of thedata existing in the world today having beencreated in only the last two years. 15
90% of the data on the internet has been created since 2016. IBM Marketing Cloud Study12.5% 1.7MBBy 2020, of dataof staff time is lost in data will be created for every personcollection and analysis. on earth every second. Callcredit IDC Digital Universe Study85% of businesses are trying to be data driven.37%But only of those companies feel theyare being successful.NVP 16
Over the next two years,global stored datavolumes are expectedto multiply by10 times.IDC Digital Universe Study By increasing the usability of data just 10%, the average Fortune 100 company could expect an increase of $2 billion dollars. FathomWalmart collects 2.5 million Less than 0.5% of datapetabytes of customer data created in the world is everevery hour. analysed and used.Dezyre Technology Review 17
Expected global revenues generated from data and business analytics. Revenue in billion US dollars 250Revenue in billion US dollars 200 150 100 50 0 2016* 2017* 2018* 2019* 2020* 2015 RevenueYienabrillion US dollars Statista 18
Global spending on data technology peaked at £40.8 billion in 2017. SNS ResearchBy 2020,1/3 of all datacreated in the world will pass through the cloud.IBM Marketing Cloud Study 19
4 New Machine Rules 420
4 New Machine RulesMachine Learning, a subset of Artificial Whilst the notion is nothing new, automated New Machine RulesIntelligence (AI), is no longer an aspiration, bid optimisation platforms have beenit has become a reality and will very learning for years. However, capabilities arequickly be a staple of digital technologies. now accelerating quickly and the businessesConceptually, AI has been a plot staple winning in this space are developing theirof dystopian science fiction stories, which own bespoke applications, rather thandoes little more than distract from the real relying on out of the box solutions.opportunity staring business squarely in theface. The DeepMind platform, part of the Alphabet suite of tech initiatives, have ledIt is simply the realisation of advanced the development of AI from the front andcomputer processing power and are currently managing a constantly evolvingprogramming capabilities. Improved list of practical applications for Machinehardware makes it possible for machines to Learning across several different industrytest and learn at scale; identifying trends sectors, from logistics and marketing toand adapting approaches to deliver better healthcare, social issues and ethics.outcomes. 21
20%of C-Suite level employees report they are activelypursuing machine learning strategies. McKinsey38%By 2038, of current jobs couldbe replaced by automation.PWC 75% of developers in 2018 will include AI functionality in their applications. IDC Futurescapes 22
45%of the fastest growingcompanies this year willemploy more smart machinesand assistants than humans.Gartner The machine learning industry is estimated to be worth £33 billion worldwide by 2020. Wall Street Journal 23
41% of consumers believe AI will make their lives better. Strategy AnalyticsHeliograf, The Washington Post’s AIwriter created 850 stories onthe Rio Olympics and 2016 election. The Washington Post 24
Google’s Deep Learning programme has proven 15% moreaccurate at diagnosing breast cancer than pathologists.Google Research 65 million The number of question combinations, financial trading algorithm Kensho analyses when making trading decisions. Forbes 25
5 Artificial Intelligence 526
5 Artificial IntelligenceArtificial Intelligence (AI) is transforming CORE; iProspect’s AI optimisation engine Artificial Intelligencemarketing at a pace not seen since the dawn has already begun to show the potentialof the digital revolution in the late nineties. of applying this technology to digitalAutomation is nothing new in marketing, performance channels. Initial testing in abut automation that can consume, learn and live environment has yielded efficiencyadapt to create new customer-first strategies improvements of almost a third withinon the fly is the new benchmark. the first few months for some clients, highlighting the scale of the opportunity.With customer data sitting at the heart of alldigital channel communications strategies,algorithms that can analyse data and powerreal-time decisions are set to create anentirely new expectation for consumers.How much a customer is worth, whatproducts they will be interested in, whatmessages to show them, what ecommerceexperience to provide them can all bealgorithmically determined. What is more,the outcome of every interaction can byfed back into the machine to make the nexttransaction more profitable. 27
84% of marketing organisations are planning to implement or expand AI in 2018. Forbes57% 3 in 4 organizations implementing AIof enterprise executives believe the most increase sales of newsignificant growth benefit of AI and machine products and serviceslearning will be improving customer by more thanexperiences and support. 10%.The Stack Capgemini 28
54% of marketers believe consumers are ready for AI solutions. Boxever20%of business content will beauthored by machines in 2018.Gartner99%Google Picture is now accurate at recognising faces in images. Google 29
AI adoption by industry sector. 13 Future AI demand trajectory Leading sectors 12 Average estimated % change in AI spending, Financial Services 11 next 3 years, weighted by firm size2 10 High tech and 9 telecommunications 8 7 Travel and tourism Heath care Transportation and logistics 6 5 Professional services Automotive 4 Retail and assembly 3 Energy and resources 2 Consumer packaged goods Media and entertainment 1 Falling behind Education 00 2 4 ConstructionMcKinsley global institute 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Current AI adoption % of firms adopting one or more AI technology at scale or in a core part of their business, weighted by firm size2 30
Sales and Marketing is the area most businesses see MachineLearning and technology making the biggest differences.Oracle Virtual Experience Report Base: online Which technologies Already Planning to No plans to retail/e-commerce will most improve implemented implement by integrate marketers and CX? 267 2020 267 salespeople: 267 267 51% 267 10% Automationtechnologies (in sales, 44% 52% 38% 11% 47% 13% marketing and 44% 29% 37% 26% customer service) 40% 51% 40% 9% Smarter analysis of 34% 35% 45% 27% 46% 14% customer data 37% 28% 40% 30% Purpose-built 31% 24% mobile apps 33% 25% 38% 33% Virtual Reality 34% 40% 30% 42% Greater 31% 45%experimentation with 34% 42% social media Artificial Intelligence Predictive analytics Robotics Chatbots Drones 31
6 Commerce 6 Everywhere 32
6Commerce EverywhereThe West is falling ever behind the East Blockchain is set to revolutionise the way Commerce Everywherewhen it comes to customer ecommerce ecommerce businesses operate. Knownexperience. China is leading the way with by most for powering headline-grabbingthe application of technologies such as crypto-currency bubbles, this newVirtual Reality, digital malls and social technology looks set to lift the hood ofcommerce to online shopping. online marketplaces to offer consumers a much clearer view of how online transactionsThe convergence of communications work. Delivering genuine transparency andplatforms such as social or messaging truly empowering the customer.applications and transactional capability isbringing the point of discovery and purchasecloser together. It is no longer enough touse digital media to signpost potentialcustomers to your website, retailers nowmust think about how they can take theirbrand and proposition into other digitalenvironments in order to encourage thecustomer to transact. 33
Global eCommerce sales will reach$4.5 trillion by 2021. Almost double the amountStatista reached in 2018.Top eCommerce markets worldwide 2017: 57%1. China: $672 billion.2. United States: $340 billion. of online shoppers have3. United Kingdom: $99 billion. made a purchase in the4. Japan: $79 billion. past 6 months from an5. Germany: $79 billion. overseas retailer.6. France: $43 billion.7. South Korea: $37 billion. Nielsen8. Canada: $30 billion.9. Russia: $20 billion.10. Brazil: $19 billion.Business.com 34
80,000 The number of chicken nugget packs sold by KFC on Tmall. Forbes Alibaba’s singles day generated £17.8 billionin 2017 over 7x the revenue generated by Amazon on Amazon Prime Day. Internet Retailer 10% of global GDP will be powered by Blockchain by 2025. Oracle 35
Frequency of online shopping by age group. Figure 5: Fequency of online shopping, by age group, 2017, Great Britain Once or twiceThree tofive times Six toten timesEleven times 5 10 15 20 25 30 35 or more 16-24 25-34 35-44 45-54 All % 0 55-64 65+Office for National Statistics 36
UK vertical sales by device.SaleCycle100 36.8% 49.9% 41.1% 18.3% 90 63.2% 80 57.1% 60.8% 58.9% 81.7% 70 Travel - Travel - 60 65.4% 42.9% 39.2% 50.1% Traffic Sales 50 51.3% 34.6% 40 30 20 10 0 48.7%All - All - Fashion - Fashion - Retail - Retail -Traffic Sales Traffic Sales Traffic Sales Desktop/Laptop Mobile 37
7Marketing tothe Machine 7 38
7Marketing to the MachineEver since the launch of the personal In the same way that business is starting to Marketing to the Machinecomputer in the 1970s, we have seen an use technology to power communication,unstoppable production line of connected consumers are using technology to helpconsumer technology that seeks to enhance them navigate the seemingly endless streamthe end-user’s experience of both the on and of options available to them. Brands haveoffline worlds. We are now starting to see historically, and perhaps arrogantly, believeda major shift in communication capabilities, they had direct access to the customerwith digital home assistants responding to broadcast brand messages. This is setto voice commands and bots enabling to change, with digital assistants filteringtechnology platforms to talk personally; one- through the options to determine the bestto-one with humans. one. Without a strategy to appeal to the machine, your marketing efforts might fall onWhat’s more, customers are embracing these deaf ears.developments. They are prepared to workwith the glitches in emerging technology,recognising that it is improving all thetime, but even now can provide them withbetter service; a functional round the clockemotionless interface to manage their brandinteractions. 39
49.4% of consumers would rather contact a business by messaging rather than by phone. VenturebeatChatbots will power 68%85% of UK consumers expect a 24 hour chatbot service.of customer service by 2020. eMarketerGartner 40
Chatbots will save business $8 Billion in cost savings by 2020. Juniper ResearchBy the end of 2016 there were34,000chatbots live on FacebookMessenger alone.Facebook 9% of UK households have home assistants. This is expected to rise to 40% by the end of 2018. WARC 41
AcAtcitviviitteessfofrowhricwh UhKiIcnhternUetKUsienrstWeorunldeCthouosseetrosUswe aoCuhladtboct*h, Moaoy s20e16tous%eoaf recshpoantdbenotst.App consolidation (e.g. all social apps in one place) 4% Expensive purchases e.g. cars 5% Purchase inspiration To pay a bill 16% 19% To get detailed answers or explanations 20% Mailing list or service subscriptions 24% Bookings or reservations 24% Complaint resoluton 26% Buy basic items (e.g. clothes / food) 33% Forwarding to appropriate human 40% Quick emergency answers 46%eMarketer 42
ExE%pxpoefeccrettesepdodnBdebenneetfsintseoffiCthsatobfotcs*hAactcboroditnsg,toacUKcoIntredrnientgUsteors,UMKay i2n0t1e6 rnet users. Friendliness and approachability 9% Getting detailed/expert answers 14% Quick answers to complex questions 18% 18% A good customer experience 18% Efficient complaint resolution 28% Ability to register a complaint 37% Ease of communication 50% Convenience for you 51% Getting an instant response 64% Quick answers to simple questions 68% Getting 24 hours serviceeMarketer 43
8 Channel 8 Convergence 44
8Channel ConvergenceAddressability in advertising communications By combining their deep understanding Channel Convergenceis the holy grail for marketers. The ability to of their TV subscribers, with the additionalpersonalise messages to ensure relevance to behavioural insight available throughthe end-user is a no-brainer, the challenge their large share of the UK broadbandto date, however, has been the channels market, they have developed an enviableavailable to deliver this experience. 360-degree view of the consumer. Enabling their brand partners to deliver effectiveWhile many brands are now successfully campaigns that consumers value, whilstdelivering personalised creative strategies driving greater ROI.for mobile, tablet and computer screens,opportunities to do the same on an Outdooror TV screen have been limited.All is now changing and over the next twoyears we can expect to see huge stridesforward in advertising technology, poweringaddressable brand experiences throughmore traditional channels. Sky are leadingthe market in the UK with the developmentof their AdSmart platform. 45
Over 1,000 Sky reachesindividuals targeting 95%attributes on Sky AdSmart. of the UKSky population. Addressable TV Sky advertising spend will reach $3.04 billion worldwide users in 2019.eMarketer 46
40% of UK homes will have Sky AdSmart by 2019. Sky£5.6 billionSky’s annual investment in content. Sky£3.79 billionSky’s investment in PremierLeague rights from 2019-22. Telegraph 47
Annual growth in addressible TV spending.US Addressible TV Ad Spending, 2015-2019 $3.04billions, % change and % of TV ad spending104.9% $2.25 78.7% 84.8% 65.8% $1.26$0.41 $0.76 1.7% 3.0% 35.5%0.6% 2015 2015 1.1% 4.0%2015 2015 2015Addressable TV ad spending % change % of TV ad spendingNote: targeted TV ads delivered on a home-by-home basis via cable and satellite boxes;includes video-on-demand (VOD); excludes connected TV, smart TV and other over-the-top (OTT).Source: eMarketereMarketer 48
UK share of broadband connections. Other 1% 2% Don't know 1%Vodafone O2 1% 3 1%Plusnet 3% EE 5%Talk Talk 11% 20% Virgin 22% Media Sky BT 28% 0 5 10 15 20 25 30 35Statista Percentage of respondents 49
9 The Amazon 9 Universe 50
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