Digital Marketing Trends & Innovations Research

Digital Marketing: Trends &
Innovations
Ruth Lewin-Chen | October 2016

The Future of Digital Marketing
• This presentation demonstrates the main trends in digital marketing, and how
companies work to integrate digital into their marketing.
• The presentation is based on the Schieber Research company’s Disruption Prediction
model, which identifies macro trends & growth engines, market trends and adoption,
leading competitors’ actions, and best in class innovators – in order to understand the
future of the industry.

The Digital Marketing Trend Map
Purchase /
Monetization
Budgets &
ROI
Tactics
Video
Instant
Messaging
Email Search CRM Content
Marketing Trends
Real-Time AI & Bots Personalization
Location-Based &
Contextual
Macro Trends & Enablers
Mobile & Cross
Channel
IoT & Wearables Virtual Reality Big Data
Source: Schieber Research

Macro Trends & Enablers | Cross-Channel
• Digital in 2016 by We Are Social suggests that although
internet, mobile phones and social media experienced
growth between 2015 to 2016 and enjoy high
penetration rates, they still have more room to grow.
Mobile & Cross
Channel
IoT &
Wearables
Virtual Reality Big Data

• Deloitte Global predicts that in
2016, 26% of smartphone users
in developed markets will not
make any traditional phone
calls in a given week.
• These users, called “data
exclusives”, are replacing
traditional voice calls with a
combination of messaging
(including SMS), voice and video
services delivered ‘over the top’.
The “data exclusive” contingent
was 22 percent of all smartphone
users in 2015, in compare to 11
percent in 2012.
Mobile & Cross
Channel
IoT &
Wearables

• As of mid-2015, the most popular
data service was text messaging,
with 60 percent usage, closely
followed by instant messaging,
email and social networks.
• Apps do not only replace private
conversations but also aid in
services such as take-away,
requesting a taxi, booking an
appointment etc.
• The age group with the largest
proportion of data exclusives as of
mid-2015 was 18-24 year-olds, 31
percent of whom (in developed
countries) reported not making
phone calls on a weekly basis.
Mobile & Cross
Channel
IoT &
Wearables
Source: Deloitte, The rise of the data exclusive
TMT Predictions 2016

• According to Adobe’s Get Personal study, 79 percent of people and 90 percent of millennials
switch devices during a single online activity.
• Two-thirds (66%) of device owners find it frustrating when content is not synchronized across
devices.
Mobile & Cross
Channel
IoT &
Wearables

• The 2016 Digital Marketer report by Experian shows companies plan on running cross-channel campaigns.
• The website channel is the most likely channel to be integrated into these cross-channel campaigns,
followed by social and email.
Mobile & Cross
Channel
IoT &
Wearables

• According to Forrester
Research, mobile searches
generated 30 billion calls to
businesses in 2013, and will
inspire 73 billion more by 2018.
Source: Twitter websiteSource: Google website
Mobile & Cross
Channel
IoT &
Wearables

In 2016, Nestlé partnered with Facebook to find out
whether an untouched TV ad or one optimized for
mobile would make the greater impact on Facebook
for Coffee-Mate Natural Bliss.
The test centered on a 15-second TV spot that the
company altered to better fit the environment, with
changes such as adding text overlays throughout the
ad so that it could be understood with and without the
sound on.
Results:
the mobile optimized version showed a 10-point
increase in ad recall and 7-point increase in product
awareness, compared to only a four-point increase in ad
recall for the original version, and no increase in product
awareness.
Mobile & Cross
Channel
IoT &
Wearables

In 2016, TOMY UK relaunched its Lamaze infant
plush brand with a year-long multichannel
campaign.
The campaign includes a content partnership with
BabyCentre, a pregnancy and parenting digital
destination, through which the site will feature a series of
sponsored content articles from the site’s contributors,
as well as a video product review and other sponsored
vlog themes from influential vloggers.
The activity also includes a programmatic online display
campaign, which will target gift-givers seeking online
inspiration on what to take to a baby shower.
The push will be supported by social activity via
Lamaze/BabyCentre’s Facebook page targeting new
mums seeking parenting advice.
Mobile & Cross
Channel
IoT &
Wearables

Macro Trends & Enablers | IoT & Wearables
Mobile & Cross
Channel
IoT &
Wearables
• The Internet of Things (IoT) connects
everyday objects into web-connected
data rockets.
• IoT is not a new concept, but it has come
a long way in the past few years, and
today brands are pulling together data
from an ever-expanding variety of objects
that individuals continuously adopt.
• Smartwatches, health trackers, home
appliances — these are just a few
examples of objects that can adapt IoT
technology.
Phillips Hue features an automated lights system.
The system can automate the lights completely to
make it seem like a person is at home when on a
vacation.
The lights can switch off automatically when leaving
the house. Watch the video

Macro Trends & Enablers | IoT & Wearables
Wearables:
• CCS Insight claims that the wearables market
(include smartwatches, fitness trackers, augmented
and virtual reality headsets and wearable cameras)
is set to treble in size between 2015-2019 and
become worth over $25 billion.
• In volume terms, the market is set to grow from 84
million units in 2015 to 245 million units in 2019.
• Smartwatches are the main source of wearables
revenue, delivering over $9 billion of sales in 2015.
• the explosive growth of fitness trackers will see
sales more than double in volume between 2014
and 2015. Until 2019, these devices will remain the
biggest wearables category by unit sales.
Mobile & Cross
Channel
IoT &
Wearables

Macro Trends & Enablers | VR
• With new hardware available to individuals,
and a growing body of content to consume,
virtual reality has experienced high growth
in recent years.
• It is important to distinguish between virtual
reality (VR) and augmented reality (AR)
since they have different use cases,
technologies and market opportunities: VR
immerses a user in an imagined or
replicated world or simulates presence in
the real world; while AR overlays digital
imagery onto the real world.
Mobile & Cross
Channel
IoT &
Wearables
Source: Ericsson, “10 Hot Consumer Trends
2016”, December 2015

• According to Advertising Week,
marketers need to make sure that 3
elements exist when using VR:
• 1) Defining the goal in creating a VR
experience (e.g. change brand perception,
raise brand awareness, increase customer
acquisition)
• 2) Defining the audience
• 3) Establishing specific metrics to measure
the ultimate success.
Mobile & Cross
Channel
IoT &
Wearables
Pokémon Go app, launched on July 5th 2016, is an augmented-
reality based application.
As for September 29th, the app experienced over 500 million
downloads, according to Niantic labs, the app developers.
For many of the app users, Pokemon Go was their first
experience with AR.
The app allows its users to discover and capture Pokémons
around them.

Ford has launched a virtual reality app. The app allows the
consumer to experience various events related to the brand.
"Go behind the scenes, see automotive superstars in action and
get behind the wheel with this 360-degree view into the world of
Ford.“ Watch video
eBay has launched the "world's first" VR shopping app, offering
12,500 products that shoppers can browse, select and add to their
shopping cart just by moving their head. Once the app is
downloaded, it works with headsets like Samsung's Gear VR.
Watch video
IKEA Catalog – the app allows the customers to see how the furniture will look
like in their homes before the purchase, by using Augmented Reality
technology. Watch video
Mobile & Cross
Channel
IoT &
Wearables

Macro Trends & Enablers | Big Data
• Allegedly, personalization and targeted marketing can be carried out efficiently thanks to the “big data”
revolution: the ability to analyze the massive amount of data (structured or unstructured), in order to
gather insights about the customer.
• In “big data”, in addition to collecting the data, marketers ought to know what questions is it meant
to answer, and how to analyze the data accordingly.
• Furthermore, it is important for marketers to balance between data and creativity.
Mobile & Cross
Channel
IoT &
Wearables
Dr Pepper Snapple group was using big data analysis in order to
optimize the audience for Straight Up Iced Tea.
Through “big data” analysis, the company found out that while they were
trying to target a younger audience for the product, they were in fact
getting to an older audience – including busy mothers.
The data helped the marketers to better understate the need state of the
product’s consumers, consuming the drink as an alternative to energy
drinks.
The insight led to a mothers-centered campaign through influential
bloggers who target mothers.
Source: The stitchin’
mommy blog

In China, Unilever Food Solutions used “big data” in order to create
emotional bonds with its key target audience: chefs, for its Knorr brand.
For the 2016 Chinese New Year, the company launched a social marketing
campaign targeted for chefs who cannot go home for the holiday.
The campaign included a WeChat webpage that featured the sounds of
hometown dialects, in addition to spotlighting hometown specialties, covering
more than 34 provinces and municipalities. After selecting their hometown and
hitting the "Visit Home" button, users receive a virtual home-cooked dish,
accompanied by caring voices in their hometown dialect, giving them the
authentic feel of being at a family reunion.
The campaign also offered chefs to send a greeting to their families and
friends.
The “big data” used for the campaign led to insights regarding the online digital
behaviors of chef groups, which enabled to categorize the chefs under different
tags so as to launch the ads more precisely.
As for February 2016, the campaign has increased the brand's followers on
social media, crossing over the one million mark.
View the TV spot
Mobile & Cross
Channel
IoT &
Wearables

The campaign incorporated a
number of interactive elements
on the WeChat platform. These
include:
• Prize redemption by using a
mobile to scan a code on
selected Knorr product
packaging.
• Interactive webpages on the
UFS WeChat platform allowing
chefs to hit a ‘visit home’ button
to receive virtual home-cooked
dishes accompanied by the
sound of voices of their
hometown dialect.
• The sharing of lucky red
envelopes.
• Fans could also choose an
image of a traditional Spring
Festival dish and add a recorded
message to send to families and
friends.
Mobile & Cross
Channel
IoT &
Wearables

Marketing Trends | Real-Time
Real-Time AI & Bots Personalization • Real Time marketing and
decisioning is a trending
topic due to Customer
expectation of immediacy.
• According to the 2016
Digital Marketer report by
Experian, many marketers
already incorporate aspects
of real-time marketing into
their current programs.
• The possibilities for real
time data can go far beyond
the simple triggered email if
marketers can align their
data and use advanced
analytics to optimize
decisioning and messaging.
Location Based &
Contextual

Marketing Trends | AI & Bots
Location Based &
Contextual
• Until recently, bots - softwares that impersonate a user, often
used by spammers - were perceived by social networks as a
“risk factor” (see Twitter’s 2015 annual report in which Twitter
estimates that 5 percent of active accounts are fake).
• Today, however, social networks and messaging companies
are moving to welcome bots into their networks.
• According to MIT Technology Review, helping companies set
up marketing or customer service bots is seen as a new
revenue source.
• Popular mobile messaging services Kik and Telegram have
both set up “bot shops,” where you can find automated
accounts. Most are very simple, for example providing
horoscopes, or helping you send money to other users. But
some companies are setting up more complex, interactive
bots for marketing purposes.
In 2016, Microsoft created a bot designed to have
automated discussions with Twitter users, mimicking
the language they use.
Less than 24 hours after the bot, @TayandYou, went
online – Microsoft halted posting from the account
and deleted several of its most obscene statements.
The bot, developed by Microsoft’s technology and
research and Bing teams, disputed the existence of
the Holocaust, referred to women and minorities with
unpublishable words and advocated genocide.
Several of the tweets were sent after users
commanded the bot to repeat their own statements,
and the bot dutifully obliged.

Marketing Trends | Personalization
Location Based &
Contextual
• According to Adobe’s Get Personal study, 90% of
consumers are willing to share at least one piece
of information (i.e. age or gender) about
themselves to improve their online experience.
• Consumers are especially open to information
sharing when it results in a tangible benefit, such
as discounts (62% of consumers surveyed) or
when it makes their shopping experience easy
(59%).

Location Based &
Contextual
• Gender is the type
of data consumers
are feeling most
comfortable
sharing, followed by
age purchase
history.
Source: Adobe’s Get Personal study

Location Based &
Contextual
• Consumers also want a personalized experience, including apps (mobile and web) which are
automatically personalized to fit their needs and interests and personalized websites.
• The desire for personalization is especially prominent among millennials and “shopaholics”.

Location Based &
Contextual
• However, consumer
anxiety and media
consumption habits
are cited as barriers
to personalized
marketing.

Location Based &
Contextual
• According to the 2016 Digital Marketer
survey by Experian, 93% of marketers are
personalizing communications to some
degree.
• Basic demographic data, such as first name,
gender or birthday, is the most popular.

Location Based &
Contextual
• Segmenting is a core strategy that is crucial to any marketer’s
success. As not all customers have the same characteristics or
behave in the same manner, it’s increasingly important to employ
different marketing tactics for each distinct group.
• While traditionally segmenting has been thought about quite simply in
regards to age, gender and even geography – as the threshold for data-
driven marketing continues to increase, the definition of segmenting has
shifted as well.
In 2016, Google launched a new mobile application, Google Trips, aimed at
helping consumers plan their vacations and other travels. Suitable for both iOS
and Android, the app pulls in a combination of data from Google Maps and
crowdsourced contributions from other travelers, in order to offer a
personalized travel guide which contains information regarding day trips,
reservations, points of interest, tourist attractions, restaurants and more.

Marketing Trends | Location Based & Contextual
Location Based &
Contextual
• According to the LBMA (Location Based Marketing
association), 77% of marketers agree location based
data is valuable but only 65% think it's accurate.
• Three quarters believe location based marketing is an
important business issue for 2016.
- While current use of location based marketing is
focused on targeting consumers with offers to drive sales
(insert average stat), location based tech will become
much more pervasive in 2016. 66% of global marketers
plan to use the technology in non-marketing areas of
operations, customer services or public safety, for
example.
- All location technologies - beacon, NFC, GPS, and Wi-
Fi - are set to grow by double digits, with 63% of
marketers planning to invest in Wi-Fi, 57% of marketers
planning to invest in GPS, 46% NFC and 41% in
beacons.Source: LBMA Global Location Trends Report,
March 2016
Barneys New York, an American chain of luxury
department store, launched an iBeacon platform
with its mobile app to alert users when new
content is uploaded, as well as help customers
navigate the store. In addition, the chain offers
Barneys’ recommendations for dining and
sightseeing in the Chelsea neighborhood, based
on customers’ location.

Tactics | Video
• According to Cisco, globally, in 2019, consumer internet video traffic
will be 80 percent of all consumer Internet traffic in 2019,
up from 64 percent in 2014.
• Internet video to TV doubled in 2014. Internet video to TV will
continue to grow at a rapid pace, increasing fourfold by 2019.
• Content delivery network traffic will deliver over half of all internet
video traffic by 2019. By 2019, 72 percent of all Internet video traffic
will cross content delivery networks, up from 57 percent in 2014.
Porsche automaker created a
3D ad for its Porsche 911.
The ad, on Fast Company's
April (2016) issue, created for
a group of affluent subscribers,
Come with a small acetate
prism, along with directions for
assembly.
Placing the prism atop a tablet
computer—while it runs a video
from 911hologram.com—brings
shimmering 3-D footage of the
latest Porsche 911 to life.
This advertisement
demonstrates how marketers
can make print more relevant in
the age of video.

Tactics | Instant Messaging
• According to Global Web Index, 36% of
digital consumers are using Facebook
Messenger app for messaging, and over a
third are using WhatsApp.

• According to eMarketer’s report, in 2016, 58.6 million US
consumers are projected to use Snapchat at least once per
month, representing 28.3% of US smartphone users and
18.1% of the US population (Snapchat Advertising: A
Roadmap for US Brand Marketers and Digital Agency
Executives, June 2016).
• Snapchat app is best thought of as a utility for visually
capturing moments that matter and communicating them
creatively in a private or semiprivate way.
• Globally, however, only 7% of global internet users are
Snapchatting, according to Global Web Index.

• As of November 2015, Snapchat is closing gap with
Facebook in the social networks’ battle for scale in
video.
• The number of videos viewed on Snapchat every day
has tripled since May 2015 to 6 billion in November
2015 (According to The Financial Times).
• That compares with 8 billion daily video views
announced by Facebook at the same time, which has
doubled from 4 billion in April 2015. Facebook’s figure
includes both desktop and mobile views, while
Snapchat’s audience — though smaller in size overall
— is entirely made up of smartphone users.
• According to Global Web Index report (Q3-Q4 2015),
54% of Snapchat users use the app weekly or less
often, while 82% of WhatsApp users use it daily, often
more than once a day.

In May 2016, Starbucks used Snapchat's
Sponsored Lens ad format that overlays
graphics on the app's ephemeral photos
and videos.
The brand used the Sponsored Lens
feature to promote its revamped loyalty
program and mobile app.
Adding the sponsored graphic to a "snap"
makes users' eyes bigger and then turns
them into a pair of stars - the symbol the
brand uses for its loyalty program - that
then explode.

Tactics | Content
Rolex features detailed information regarding the brand’s
watches on its website.
Customers can learn about every component of the watch.
The brand has a content marketing presence on Instagram as
well, where it offers photos for PR.

Tactics | Content
Whole Foods focuses on content marketing in order to
strengthen its position as a healthy living and earth-
conscious eating brand.
The retailer’s website features a “Eating & Cooking” section
with information on “healthy eating”; “recipe collections”;
“special diets”; and “parents & kids”.
In addition, the retailer uses a lot of proactive language (“I
want to learn/do/both” as a search option in its navigation
bar) which makes the audience feel like they have an active
role in the experience.

The Future of Digital Marketing
• The importance of integration and synchronization – between devices and channels – is
becoming clearer than ever, as a mean of offering consumers the optimal personalized
experience.
• Big Data will continue to be relevant and marketers should define the questions that it is
meant to answer. The use of Big Data is also driven by consumers’ willingness to give personal
information as long as they see their benefit from it.
• While some consumers are increasing their voice call volumes, many consumer become “data
exclusives” and use other types of communication as an alternative to voice calls.
• Using video is no longer a luxury, whereas in 2019 internet video traffic is expected to be 80%
of all consumer internet traffic.
• The use of VR and AR can help marketers change brand perception / raise awareness when
used right.
• Location-based technologies will see more implementation both for marketing purposes and in
other business areas.
• Millennials reflect most significantly digital trends, but as technology develops – more
demographics are expected to adopt them as well.

Resources
Publisher Title
We Are Social Digital in 2016
Deloitte Global The rise of the data exclusive
Adobe Get Personal
Experian The 2016 Digital Marketer
Forrester Research Brief: Capture Customers With Click-To-Call
Adobe How Millennials Made the Market for Innovative TV Services
Adobe What the Internet of Things (IoT) Means for Cross-Channel Marketing
Adobe Bridging Marketing with the IoT
Deloitte Closing the digital divide: IoT in retail’s transformative potential
CCS Insight Wearables Market to Be Worth $25 Billion by 2019
Ericsson 10 Hot Consumer Trends 2016
Goldman Sachs Profiles in Innovation: Virtual and Augmented Reality
Advertising Week Should Virtual Reality be a Marketer’s New Best Friend?
Campaign Brief Asia Chefs are invited by Isobar and Unilever Food Solutions to have a taste of home this CNY
Twitter 2015 Annual Report
Adobe Not Personalizing? Now, There’s NO Excuse!
LBMA LBMA Global Location Trends Report
Cisco Cisco Visual Networking Index: Forecast and Methodology, 2014-2019
eMarketer Snapchat Advertising: A Roadmap for US Brand Marketers and Digital Agency Executives

Thank You!
The research was conducted by: Ruth Lewin-Chen
Schieber Research | Market Research & Competitive Intelligence
www.researchci.com | hamutal@researchci.com
More articles and researches on Carmelon Digital
Marketing website:
http://www.carmelon-digital.com

Digital Marketing Trends & Innovations Research

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