Driving Business Performance in the Digital Economy 1
2017 Future FocusA WarmWelcomefromiProspect2
Welcome to the Tetley for iProspect Leeds’ Flagship 2017 event; Future Focus: DrivingBusiness Performance in the Digital Economy.Digital technology has completely changed the way to the horizon and plan to adapt, to become morewe do business in the 21st Century. Not since the agile and to take bold steps to transform our digitalIndustrial Revolution have we been able to make capabilities to continue to deliver our businesssuch economic progress so quickly, by leveraging objectives in line with consumer expectation.the real-time communication capabilities the We hope you find today’s content inspiring andinternet provides. useful in developing your future marketing strategy.As media converges and the lines between the Pete Coatesonline and offline world become ever more blurred,it is important as marketers that we prepare Director,ourselves for the challenges ahead. The days of iProspect Leeds‘digital marketing’ as a division of our marketingoperations are well and truly behind us, replacedwith a new challenge, best described as ‘marketingin the digital economy’.With customer expectations at an all-time high andrelentlessly evolving communications capabilities;there are seemingly endless opportunities forstart-ups to disrupt the market and squeeze outlegacy businesses. It is important to lift our eyes 3
2017 Future FocusContents4
Page 06 Foreword by Page 36 Hyper Connected, Dan Calladine Hyper Informed, Hyper Empowered: The Role of Device in Customer CommunicationsPage 08 Speakers Page 44 Getting Personal: Communicating with the Segment of OnePage 12 Future Focus: Page 52 Effectiveness Planning: Driving Business Measuring Performance Performance in the in a Converging Digital Economy EconomyPage 20 Data Inspired Page 60 About iProspect Decision Making: Finding Audiences ProgramaticallyPage 28 Connected Commerce: Page 62 Contact details The Importance of Social Connection in Driving Business Growth 5
2017 Future FocusFutureFocus6
Dan Calladine, Head of Media Futures for Dentsu Aegis Network UK offers his view ofhow widespread digital proliferation is shapingthe media market.2017 feels like a pivotal time for media and watching videos on screens of all sizes, and inmarketing. Figures from the IAB show that 2016 was shopping behaviour, where online and offline boththe biggest ever for digital advertising in the UK, play a part in research and the purchaseswhich grew 17% year on year to hit £10bn for the themselves. These bring huge opportunities forfirst time ever. Within this, mobile was the biggest marketers.riser, up over 50%, reflecting the amount of time weall spend on our phones as well as the development However, we must not lose sight of the threats thatof successful new mobile ad formats, particularly new technology brings. More people are blockingvideo. ads online, and choosing to watch more content that comes ad free, for example on Netflix, and marketersOver the past few years marketing has moved from need to be constantly vigilant that their use ofa broadcast model, targeting broad groups with customer data does not impinge on freedoms.messages to something more personalised, wherewe can target people based on all sorts of criteria Finally, disruption brings new competitors in allincluding demographics, location and previous market sectors, ready to steal business from theknown behaviour. unprepared.There have been huge advances in attribution, It’s in this context that we welcome you toallowing us to get closer to determining what iProspect’s Future Focus event. We hope that it willactivity has worked and why, against real outcomes help to prepare you for the changes ahead.like sales and footfall, rather than broader proxymeasures. We’re getting better at spotting the key Dan Calladinedrivers of consumer activity, and learning whichmoments will work best. Head of Media Futures, Dentsu Aegis NetworkWe’re seeing convergence in a number of areas, notleast in video, where ‘watching TV’ can now mean 7
2017 Future FocusSpeakers8
Pete Coates Emily Beresford-Lynn John Carr Director, General Manager, Partner Manager, iProspect Leeds Amnet Trading Desk FacebookA digital specialist with over 12 Emily is a digital native, with John joined Facebook in 2014years’ experience in the over 17 years’ experience in the as a Partner Manager workingindustry; a graduate of the industry and an active member of with some of the largest brandsprestigious IPA Excellence the IPA Digital Media Group. An and agencies in the UK andDiploma and an expert in expert in Programmatic, she Ireland to shape their businessdeveloping integrated digital delivers solutions across a strategy on both Facebookstrategy. With a background variety of sectors, demonstrating and Instagram and build theircovering the entire bought how programmatic can drive businesses by connecting toowned & earned digital media efficiencies and effectiveness at the people that matter mostecosystem; Pete is responsible all stages of the customer to them.for leading iProspect Leeds’ journey through bespoketeam of strategic client service audience’s segments, paired withand channel specialists in addressable creative solutionsdelivering digital solutions that and real time decisions on mediamake a genuine impact on our buying.clients’ businesses. 9
James Lodge Dan Wigley Matz Lukmani Director of Mobile Director of Analytics Attribution Product Expert, & CRO GoogleJames joined Fetch in 2015 tobecome Director of Mobile in Dan joined iProspect in 2013 having Matz Lukmani (EMEA Product Lead,the North of England. He has 15 previously worked for Manchester Attribution & Measurement) basedyears’ experience in mobile,and Airport Group. He has over 9 in London (UK) has been withhas a particular interest in years’ experience in analytics and Google for +2.5 years working ontechnology platforms which optimisation, with qualifications in products like Google Analytics 360,continuously evolve the mobile Google Analytics (GAIQ), Google AdWords, Attribution 360 andmarketplace. James previously Tag Manager, Google Analytics 360 Firebase Analytics. He also workedheld positions as Mobile Director and comScore (Certified Expert). in the USA for over 9 years inat Creative Race, and Group various Analytics leadership rolesAccount Director at MIG He has a real passion for delivering at SAP, Bristol-Myers Squibb, Toys(Mobile Interactive Group). outstanding digital insights and R Us, MediaCom, Triad Retail Media recommendations that drive and PwC to name a few. He offers profitability for clients. These analytics consulting services in the insights are delivered from digital field of web-analytics, predictive analytics configuration, MVT analytics and advanced text mining testing, personalisation, site speed across a wide group of industries. optimisation and qualitative CRO and consultancy on eCommerce best practice.10
Your Panelists Andrew Barke Laura Redhead Head of Northern Agencies, Google Head of ProgrammaticAndrew manages the Agency Relationship Team based in Laura manages the programmatic team within iProspectManchester and is responsible for building and retaining key Leeds and has over 6 years’ agency experience. She isagency relationships within the Northern region. He also focussed on driving strategy for our programmaticadvises agencies on how best to grow strategic advertising proposition, developing and managing appropriate solutionsrevenue. for our clients. Anecia Jagpal David Pass Head of Organic Search Associate DirectorAnecia leads the natural search and content As a paid media expert, David currently leads iProspectproposition at iProspect Leeds. She has 7 years’ agency Leeds’ Paid Search team, having joined the agency back inexperience and is focussed on continuing to develop a 2010. Central to his responsibilities is to ensure the teamspecific PR and audience led approach to the natural search continue to provide market leading thinking and strategystrategy. across all aspects of paid search for our clients. 11
2017 Future FocusDriving BusinessPerformancein the DigitalEconomyPete Coates | Director, iProspect Leeds12
There are now more than 3.6 billion Delivering growth and profitability in this internet users globally, equating to environment will require many brands toalmost 50% of the world’s population. re-examine existing ways of working in a digital context. The digital age represents a number ofThese users are always on, increasingly mobile, core challenges facing brands, from utilising dataand most importantly, they’re constantly to power better decision making, to understand-connected. This constant connectivity has in turn ing how marketers can structure their organisationsgiven rise to a whole new economy, a Digital to deliver greater agility. As the pace of the DigitalEconomy. An economy where traditional business Economy accelerates, the brands that win willmodels and ways of working are being turned on be those that embrace these challenges, adapttheir head. Where digital-first brands are quickly and organise for future success.disrupting established categories and whereconsumers now have impossibly high expectationsof products and brands. 13
Global Digital Adoption There are 3.6 Billion internet users - that’s 50% of the world’s population 90% of all online journeys start with search Businesses that invest in digital transformation are 26% more profitableInsight Sources: CIA | IAB | IAN | MIT Sloan School of Managment | iProspect Consumer Survey 2016 | Google | eMarketer | Nielsen14
Voice search is accelerating fast. Currently20% of Google searches now have voiceintentUK Digital ad spend hit£10.304 Billion in 2016Global e-commerce 43%transactions are due of the World’sto hit $4 Trillion by population have now made a purchase online 2020 15
65%omfomreilltehnaianlstavnagluibelebupyoisnegsesixopnesriencesMore consumers are shopping abroad. 57% of consumersbought from an overseas retailer in the past 6 monthsInsight Sources: CIA | IAB | IAN | MIT Sloan School of Managment | iProspect Consumer Survey 2016 | Google | eMarketer | Nielsen16
China now represents 47% of all global e-commerce India is the fastest growing ecommerce market on the planet, but only 1% of the country have a credit card, with cash on delivery the preferred payment methodThe AlibabaApp is nowa Top 10app acrossEurope 17
2017 Future FocusData InspiredDecision Making:Finding AudiencesProgramaticallyEmily Beresford-Lynn | General Manager, Amnet Trading Desk20
The advent of programmatic media This technology is now starting to power trading trading has changed the face of the across traditional media channels: Digital Radio,communications sector. While audience Linear TV and Digital Outdoor screens now offerhas always been the primary planning advertisers the opportunity to plug their customervariable for advertising campaigns, data into DSP platforms and compete for themedia publishers have served as a proxy opportunity to communicate with their customers.to reaching that audience, leading togeneric one-directional brand Data is now as valuable, if not more so, than thecommunication with little scope for content itself. As we develop ever smarter methodsflexibility. of collecting, storing, analysing and activating that data, we get closer to making the delivery ofThe media industry has been disrupted by the digital personalised, addressable advertising formats to therevolution as much as any other. The principles of segment of one a reality.programmatic now enable brands to look throughthe media content and directly at the individual,thanks to the vast amount of data we all leavebehind us, as we consume content, make purchasesand communicate with our networks. 21
Programmatic: A New Era in Media75%maofemdaolilabpislrepoegdnreadvmiwcmeilalintbice20o1n7By 2020 the UK mobile 2.5 Quintillion bytes of dataprogrammatic market are created on thewill be worth internet every day£8.99 BillionIInnssiigghhttSSoouurrcceess: :CIIAAB| |IAiPBro| sMpIeTcStloCaonnsSucmhoeor lSoufrMveayn|agGmooegnlte| |iPerMosaprekcetteCro|nIsBuMme| rDSuunrv&eyB2ra0d1s6tr|eGeot o| gelceo|nesMulatarknectyer| SKY | Clear Channel | Global Radio22
70%of marketers plan to increaseinvestment in programmatic in 201760% Programmatic ad spend hit £3.76 Billion in 2016 of programmatic ads served will be video in 201768% of marketers believe DMPs are key to the future of programmatic advertising 23
60% of Condé Nast UK’s top 50 platform buying advertisers in its first year of programmatic operations were newTargeted content is one of the fastestgrowing methods of capturing userbehaviour data for future targetingpurposes Video ads watched for only 3 seconds lead on average to 2.3x increased brand awarenessInsight Sources: IAB | iProspect Consumer Survey | Google | eMarketer | IBM | Dun & Bradstreet | econsultancy | SKY | Clear Channel | Global Radio24
15 Million UK consumerscan be reached by the DAXplatform (Digital Audio Exchange)60% 1.9 Billion ad impressionsof UK OOHrevenues are from served in the first 18 monthsdigital screens on Sky’s AdSmart platform 25
2017 Future FocusConnected Commerce:The Importance ofSocial Connectionin Driving BusinessGrowthJohn Carr | Partner Manager, Facebook28
The emergence of social media Social connections are the thread that holds the platforms has tapped into our innate Digital Economy together. Brands can tap into socialneed to feel connected to each other data to provide ever more accurate and detailedand has provided the infrastructure for insights and audience targeting capabilities. Theyus to extend those networks to a global can weave their messages seamlessly into theirlevel. Our connected social experience customers’ personalised content feeds, leveragingnow goes beyond simply keeping up to the power of connected networks and sharing todate with what our friends are up to; we extend their reach further.tap into our networks for entertainment,advice, to discover new things and to As the point of engagement and transaction movesinfluence our purchasing decisions. ever closer together we will start to see fully transactional social marketplaces, enabling consumers to buy the products, services and experiences that appeal to them instantly. 29
The Social RevolutionThree-quarters of Facebook users and halfof Instagram users visit the sites dailyDaily Weekly Less often 76% 15% 7% 51% 26% 22% 42% 24% 33%25% 31% 43%18% 31% 51%Note: Do not know/refused responses not shown. Source: Survey conducted March 7th April, 2016 “Social Media 2016”Insight Sources: Comscore | Facebook | PEW Research | iProspect Future Focus report | Social Media today | Lithium | Linkedin30
There are 2.3 Billion active social media users78% percent of people who complain to a brand via Twitter expect a response within an hour 1 Million new aaTcrhetaivated’sdm 1eo2dbeielaevceshroyscdeiaaclyou.nsde!rs Messaging apps now have more active monthly users worldwide than traditional social network apps 31
LinkedIn boasts more than 450 million user profiles Iiannrsmatpoaibdgillyeraianmdcrreeeavaseirnnnguesnpu$me5rb9yee5rarm, illion r5Fe6avc%ee nbinuoe2o0kg’1sr6e t,woatn5adl9r%aedvveenruteisignrgewShoppable ad formats will be thefastest growing format in 2017Insight Sources: Comscore | Facebook | PEW Research | iProspect Future Focus report | Social Media today | Lithium | Linkedin32
Platform UK Users 2016Facebook 32,000,000 19,100,000YouTube: 15,000,000 14,000,000Twitter: 12,600,000 10,300,000Instagram: 10,000,000 10,000,000Google+: 9,000,000 6,600,000Pinterest: 412,085 Snapchat: LinkedIn: Tumblr: Reddit: Vimeo: 33
2017 Future FocusHyper Connected,Hyper Informed,Hyper Empowered:The Role of Device inCustomer CommunicationsJames Lodge | Director of Mobile36
The internet created a whole new Our ability to communicate any-time, anywhere has environment for us to spend time in, created an entirely new breed of consumer; one whonew content to consume, new feels empowered to switch allegiances instantly ifexperiences to enjoy and new ways to their ever-increasing expectations are not met anddo business. This environment, however, who will comfortably share their opinions with thewas always an alternative to the real world at the drop of a hat.world; forcing us to choose betweenwhether we wanted to be online or While many legacy businesses are still trying tooffline. restructure for the internet, the new breed of consumer is seeking out mobile-native brands.Mobile connectivity has accelerated the Brands that offer a personalised, frictionlessconvergence of these two worlds: bringing online app-based experience that is available to them at alland offline together and enabling an almost times, on-demand, in any location and that add valueseamless transition between analogue and digital. to them in both an on or offline environment.This in turn delivers an entirely new perspective onbrand communication and experience. 37
Mobile Connectivity61% of all time spent online in the UK is on a mobile device 82% of all time spent online on a mobile device is in an app UK users spend 66 hours per month browsing on a smartphoneInsight Sources: Comscore | Hitwise | Google | OFCOM | CCS | Think with Google | Monetate38
Most consumed mobile content by industry Food & Beverage 72%Mobile accounts for 38% Health 68%of all digital ad spend Sports 68%30% of all online News & Media 64%transactions now takeplace on a mobile phone Lifestyle 62% Automotive 62% Retail 56% Travel (non-maps) 52% 48%Real Estate/Property Entertainment 42% Banking 39% 39
103%Mobile video ad spend grew On average mobile is 1.9x more influential inYoY in 2016 driving sales than is currently attributed 79% of consumers use a mobile device to research a purchase 70% of consumers making a purchase on the high street strarted their journey on a smartphoneInsight Sources: Comscore | Hitwise | Google | OFCOM | CCS | Think with Google | Monetate40
Smartphone conversion 55-64 year olds are the fastest growing age group15%rate has increased by for smartphone pentration risingon average over thelast 2 months from 19% to 50% since 201272% of people use their 41 device during ad breaks
2017 Future FocusGetting Personal:Communicating with theSegment of OneDan Wigley | Director of Analytics & CRO44
While programmatic technology and The brands that are succeeding are those that are data-driven marketing provide thinking about how to develop and deliver trulyever more complex and effective unique and personalised communications at allmethods of identifying audiences and points in the customer journey; from initialbuying opportunities to communicate engagement through to transaction and all stepswith them, our creative messaging both in between and after.capabilities have for the most partfailed to keep pace. Consumers appreciate relevant brand communications and increasingly understand theWith increasing opportunities to communicate with value exchange in swapping personal data for better,audiences who are consuming more media content more targeted and more addressable advertising asthan ever before, brands have responded by long as it is both transparent and tactfully executed.creating a wall of one-directional noise that is veryeasy for consumers to ignore. Business performance in the Digital Economy will rely on a carefully constructed, agile and reactive communications framework, with an ongoing commitment to continuous testing, learning and refining communications to avoid becoming irrelevant. 45
The Art of Personalisation94%of businesses agreepersonalisation is critical 50,000GB ofto marketing success data per second 74% of will be created marketers agree that personalisation in 2018 makes marketing performance more effectiveIInnssiigghhttSSoouurrcceess: :CeIAco|nIAsuBlt|aMncITy S| lIoBaMn S| cBhoosotol nofCMoannualtginmgeGntro| uiPpro|sipPerocstpCeocntsPuemrseornSaulrisvaetyio2n01C6o|nGsuomogerleS|uervMeayrk|eTtheirnk with Google46
Removing complexity is the single mostimportant factor in making a brandexperience more attractive to customers70% of consumers are less likely to click on an ad from a brand they do not knowWebsites Email Facebook 38% 38% 30%are the most appropriate channels for personalisation 47
Price promotion messages are the most valuable type of personalised message Consumers are 4.3x more likely to click on a personalised ad when the data collection policy is made available Personalised real-time location based messages are in the top 3 most valuable personalised brand messaging typesIInnssiigghhttSSoouurrcceess: :CeIAco|nIAsuBlt|aMncITy S| lIoBaMn S| cBhoosotol nofCMoannualtginmgeGntro| uiPpro|sipPerocstpCeocntsPuemrseornSaulrisvaetyio2n01C6o|nGsuomogerleS|uervMeayrk|eTtheirnk with Google48
22%Onlyof advertisers are satisfiedwith their conversion rate 40% of consumers will leave a mobile page if it takes more than 3 seconds to load Companies whose conversion rates improved last year are performing on average, 50% more tests and using 47% more methods to improve conversion 49
2017 Future FocusEffectiveness Planning:Measuring Performancein a ConvergingEconomyMatz Lukmani | Attribution Product Expert, Google52
The emergence of the Digital Economy complex and challenging to follow. Even the tracking has resulted in an ever converging technologies we relied on only a few years ago tomedia ecosystem, which presents an determine how our marketing budgets wereentirely new challenge for measuring distributed are fast becoming obsolete.the effectiveness of our marketingperformance. In a consumer-led Digital Investing in robust and effective measurement toolsEconomy we need to base our is as important as investing in media itself. Ensuringinvestment decisions on what our they are configured to produce accurate and reliablecustomers want and can’t expect them insights into how your campaigns are performing issimply to respond to the channels we essential. It is too easy to get measurement wrongfind easiest to measure. and rely on the wrong insights or inaccurate data to make important investment decisions. Or worseConsumers are constantly and seamlessly switching still, become paralysed by a complete lack ofbetween devices and engaging with brand understanding of the impact your marketing istouchpoints in both on and offline environments; having on the bottom line of your business.ultimately making the customer journey even more 53
Measuring Business PerformanceAttribution adoption still has significant room to growFigure 1: Do you (or your clients) carry out any type of marketing attribution modellingto measure the effectiveness of your (or their) marketing?31% 35% 22% 29% 18% 23% 13% 17% 8% 4%We/they carry We/they carry We/they carry No, but we/ No plans forout attribution on out attribution on out attribution they are thinking attributionthe majority of/ some campaigns but we/they are about itall campaigns and and analyse not sure how toanalyse results results effectively analyse resultsCompany respondents Agency respondentsCompany respondents: 389. Agency respondents: 1IInnssiigghhttSSoouurrcceess: :CiIPAro| sIApeBc|tMCIoTnSsluomanerSSchuorvoelyof| MGoaongaglem|eencto|niPsuroltsapneccyt Consumer Survey 2016 | Google | eMarketer54
40% of marketers identify measuring the customer journey as their biggest challenge in the Digital Economy84%of marketers believe attribution iscritical to marketing success71% of UK marketers still utilise last click attribution to understand marketing effectiveness 55
Yet only 29% would regard last click measurementas very effective Very effective Somewhat effective Somewhat ineffective Very ineffectiveRespondents: 145IInnssiigghhttSSoouurrcceess: :CiIPAro| sIApBec|tMCIoTnSsluomanerScShuorvoelyof| MGoanoagglem|eencto|niPsuroltsapneccyt Consumer Survey 2016 | Google | eMarketer56
57% of digital marketers plan to alter the way they attribute sales value across the marketing mix in 2017Google have now measured 1 Billion store visitsworldwide and linked them back to Adwordsinteractions64% of businesses are targetingdata-driven attribution as a goal in 201776% of businesses identify a lack ofskilled employees as the biggest barrier totaking advantage of attribution technology 57
2017 Future FocusAboutiProspect60
In a challenging economy and a complex world, a forensic obsession with business performance has never been more important or relevant. At iProspect our purpose isto drive business performance through the intelligent application and deployment oftechnology, data, media and content.• We create solutions for the most difficult business challenges.• We innovate relentlessly to stay one step ahead of the industry.• We deliver value that transforms businesses.• We perform globally without compromising local innovation.Our focus is to be a critical partner to our clients, harnessing consumer intent across multiple digital advertisingchannels to build experiences that drive tangible business outcomes for our clients.These solutions are built from data and evidence-based strategies and implemented through specificcombinations of our products and services. This ensures we deliver seamless consumer experiences, influencingevery aspect of the consumer journey.Our ProductsThat span over across all digital marketing channels, a truly holistic digital performance marketing offering.Paid Social NativeSocial Media Managment Lead Generation & AffilatesConversion Optimisation DisplayStructured Data & Feeds Content & CreativeData & Analysis Organic SearchVideo Paid SearchAttribution Mobile Strategy 61
2017 Future FocusContactDetails62
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