Interactive Mktg Report - Dec 2006 - Forrester

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    December 26, 2006

    Topic Overv iew:In teractive Marketingby Elana Anderson and SharVanBoskirk

    Helping Business Thrive On Technology Change

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    TOPIC OVERVIEW

    December 26, 2006

    Topic Overview: Interactive Marketingby Elana Anderson and SharVanBoskirkwith Brian Haven,Charlene Li, and Peter Kim

    EXECUTIVE SUMMARYInteractive marketing tactics are crucial for marketers seeking new ways to create relevant andengaging customer communications. Forrester's interactive marketing research studies current andemerging interactive strategies and channels to help marketers prioritize investment in interactivechannels, understand best practices and potential pitfalls of the interactive channels, evaluate and selecttechnology and services vendors to support interactive marketing initiatives, and integrate interactiveefforts into their traditional marketing mix.

    TABLE OF CONTENTS2 Why Interactive Marketing Matters

    2 Forrester's Take On Interactive Marketing

    2 The Basics

    3 Best Practices

    4 Trends And Forecasts

    4 Strategic Reading

    5 Vendor And Product Comparisons

    6 Related Topics

    B2BMarketing

    Customer Experience

    7 Upcoming Research

    8 For More Information

    NOTES & RESOURCESForrester compiled its most pertinent researchon interactive marketing to provide an overviewof our research and perspectives on this subject.

    Related Research Documents"Interactive Marketing Channels ToWatch In 2006"April 27,2006, Trends

    "Social Computing"

    February 13,2006, Forrester Big Idea

    "Left Brain Marketing Planning"May 16, 2005, Forrester Big Idea

    2006, Forres te rResearch , Inc. Al l r ights reserved . Forres te r,Forres te r Wave, WholeView2, Technog raphi cs , and To ta l Economic Impact a retrademarks of Fo rr es te r Re sea rch , I nc .A l l o th e r t radema rk s a re t he p rope rt yof t he ir r espect iv e compani es . Fo rr es te r c l ient s may make onea tt ri bu ted copyor slideof each f igu re cont ai ned he re in . Addi ti ona l r ep roduc ti on i s s tr ic tl y p roh ib it ed . Fo r add it ional r ep roduc ti on r igh ts andusage information,go to www.forrester.com.lnformationi s b a se d o n b es t a va il ab le r es ou rc es . Op in io ns r ef le ct j u dgmen t a t t he t im e a nd a resub je ct t o change. Topu rchas e r ep ri nt sof th is document, p lease email resourcecemerefor res te r.com.

    http://www.forrester.com.lnformation/http://www.forrester.com.lnformation/
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    2 Topic Overview ITopic Overview: Interactive Marketing

    WHY INTERACTIVE MARKETING MATTERS

    Marketers must focus on interactive for two primary reasons:

    1. The online channels are no longer emerging - they're mainstream. Eighty percent of UShouseholds are online today, and nearly half have broadband. The mainstreaming of onlinemedia will only increase as today's young consumers age. Case in point: More than 12 of the43.2 hours per week that Gen Yers - those consumers between the ages of 18 and 26 - spendconsuming media are spent online, compared with 10.6 hours spent watching TV.!

    2. New interactive channels are more engaging than traditional channels. Individuals areincreasingly taking cues from one another, rather than from institutional sources like mediaoutlets.' This trend, coupled with consumer interest in blocking ads, creates an advertisingopportunity for channels like blogs, online video, games, and social networks, which encourage

    users to participate in a dialog about the products, services, and brands that they buy or interactwith.

    FORRESTER'S TAKE ON INTERACTIVE MARKETING

    For most firms, interactive marketing has now become a fundamental part of the marketing mix.But marketers still struggle to determine which interactive channels to prioritize, how much tospend, how to get started, and how to measure results. This requires both honing programs inindividual channels and creating a strategy for integrating interactive tactics with traditionalmarketing efforts. Forrester's interactive marketing research provides current trends and bestpractices in channels that include email, search, online display ads, RSS, blogs, social networks,games, and mobile. It also provides strategic guidance around how to organize, plan, and measureintegrated marketing efforts.

    THE BASICS

    Forrester has a number of documents that define our philosophy toward interactive marketing anddefine the different interactive channels we study.

    ~ The End Of Email List Growth

    Shar VanBoskirk

    ~ How Marketers Buy Technology

    Elana Anderson

    ~ The Interactive Marketing Channels To Watch In 2006

    Shar VanBoskirk

    December 26, 2006 2006, Forrester Research,Inc. Reproduction Prohibited

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    TopicOverview ITopic Overview: Interactive Marketing 3

    ~ Podcasting Hits The Charts

    Charlene Li

    ~ The Reality O f B ehavioral A d TargetingShar VanBosk irk

    ~ RSS 101 For M arketers

    Charlene Li

    ~ W hat Online Ad Formats Work?

    Jim N ail

    ~ W hy Game M arketing M atters

    Shar VanBosk irk

    ~ Word-Of-M outh M arketing Priorities For 2006

    Peter K im

    BEST PRACT ICES

    Forrester's best practices research can help you maximize the impact of your company's interactiveadvertising programs. This research includes case studies and examples of how other marketers testemerging channels.

    ~ Advertising Campaigns That Drive Web Traffic

    Peter K im

    ~ Case Studies In Event-Triggered M arketing

    E la na Ande rs on

    ~ Coty H um anizes The Digital Experience

    C hristine S piv ey O verby

    ~ Em ail M arketing FA Qs For Beginners

    Shar VanBosk irk

    ~ HowTo GetYour M arketing Em ail Delivered

    Shar VanBosk irk

    ~ Search Engine M arketing FAQs

    Shar VanBosk irk

    ~ Using RSS As A Marketing Tool

    Charlene Li

    2006, Forrester Research,Inc. Reproduction Prohibited December 26, 2006

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    4 Topic Overview ITopic Overview: Interactive Marketing

    TRENDS AND FORECASTS

    Trends and forecasts documents leverage data from Forrester's consumer, marketer, and vendorpanels. This research also represents our predictions for interactive marketing spending and channeladoption.

    ~ How Consumers Find Web Sites In 2006

    Charlene Li

    ~ Inbound Marketing Goes Mainstream

    Elana Anderson

    ~ Marketers: Keep A Keen Eye On Gen Yers

    Charlene Li

    ~ Marketing Technology Adoption 2006Elana Anderson

    ~ Should Your Brand Use Online Video?

    Brian Haven

    ~ The State Of Consumers And Technology: Benchmark 2006

    Ted Schadler and Charles S.Golvin

    ~ Teen Online Ad Targeting: Proceed With Caution

    Shar VanBoskirk

    ~ US Online Marketing Forecast: 2005 To 2010

    Charlene Li and SharVanBoskirk

    ~ Use Promotions To CutThrough Ad Clutter

    Shar VanBoskirk

    STRATEGIC READING

    Once you have a sense of the interactive marketing basics, we recommend reading a few of our keymarketing reports to understand where we think the marketing discipline is headed.

    ~ The Essentials Of Consumer-Driven Innovation

    Christine Spivey Overby

    ~ Left Brain Marketing Planning

    Shar VanBoskirk

    December 26, 2006 2006, Forrester Research,Inc. Reproduction Prohibited

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    TopicOverview ITopic Overview: Interactive Marketing 5

    ~ The Marketing Technology Backbone

    Elana Anderson

    ~ Marketing To Technology PessimistsLisa Bradner

    ~ Reinventing The Marketing Organization

    Peter Kim

    ~ Social Computing

    Chris Charron

    VENDOR AND PRODUCT COMPARISONS

    Through Forrester Wave~ evaluations and market overview research, Forrester can help youunderstand the relative strengths and weaknesses of vendors and their offerings as they pertain tointeractive marketing.

    ~ The Database Marketing Services Landscape

    Eric Schmitt

    ~ The Email Marketing Vendor Landscape

    Shar VanBoskirk

    ~ The Forrester Wave: Brand Monitoring, Q3 2006

    Peter Kim

    ~ The Forrester Wave TM: Blogging Platforms, Q2 2006

    Charlene Li

    ~ The Forrester Wave TM: Email Marketing Service Providers, Q4 2005

    Shar VanBoskirk

    ~ The Forrester Wave TM: Enterprise Marketing Platforms, Q1 2006

    Elana Anderson

    ~ The Forrester Wave TM: Rich Media Content Delivery, Q2 2006

    Brian Haven

    ~ The Forrester Wave: Search Marketing Agencies, Q4 2006

    Shar VanBoskirk

    2006, Forrester Research,Inc. Reproduction Prohibited December 26, 2006

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    6 Topic Overview ITopic Overview: Interactive Marketing

    RELATED TOPICS

    Forrester's coverage of interactive marketing extends to many areas of research, including B2Bmarketing and customer experience.

    B2B Marketing

    B2B marketers have recently begun rapidly adopting interactive marketing tools to help drive andmanage leads. This research looks specifically at how interactive marketing applies to businessmarketing challenges.

    ~ B2B Email Marketing Best Practices: Hewlett-Packard

    Shar VanBoskirk

    ~ B2B Marketers Zero In On Customer Experience

    Laura Ramos

    ~ B2B Marketing Needs A Makeover - Now

    Laura Ramos

    ~ The B2B Search Marketing Playbook

    Laura Ramos

    Customer Experience

    As marketers embrace Social Computing and start joining in their customers' conversationsinstead of shouting at them, marketing and the customer experience will overlap more and more.

    Our customer experience research addresses how firms can use interactive tools to craft customerexperiences that help promote products, build brands, and establish customer relationships.

    ~ Culture And Process Drive Better Customer Experiences

    Moira Dorsey and Kerry Bodine

    ~ Design Sites With Other Channels In Mind

    Harley Manning

    ~ Humanizing The Digital Experience

    Christine Spivey Overby

    ~ The People Who Make Great Web Sites

    Kerry Bodine

    ~ Should Web Designers Report Into Marketing?

    Harley Manning

    December 26, 2006 2006, Forrester Research,Inc. Reproduction Prohibited

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    TopicOverview ITopic Overview: Interactive Marketing 7

    UPCOMING RESEARCH

    "Digging For Gold In Consumer-Generated Media"Brian HavenDecember 2006

    "The ROI Of Blogging"Charlene Li

    December 2006

    "Is The US Ready For Mobile Marketing?"Christine Spivey OverbyDecember 2006

    "The Best And Worst Of Email Marketing 2006"Shar VanBoskirkDecember 2006

    "The Interactive Marketing Organization"Shar VanBoskirkJanuary 2007

    "Mobile Marketing Best Practices"Christine Spivey Overby

    January 2007

    "The Best And Worst Of B2B Brand Sites"Laura RamosFebruary 2007

    "Integrated Marketing: A Framework For Success"Peter KimMarch 2007

    "Marketing Metrics That Matter"Christine OverbyMarch 2007

    "The Forrester Wave~: Interactive Marketing Agencies"Brian HavenSeptember 2007

    2006, Forrester Research,Inc. Reproduction Prohibited December 26, 2006

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    8 Topic Overview ITopic Overview: Interactive Marketing

    "US Online Marketing Forecast"Shar VanBoskirkSeptember 2007

    FOR MORE INFORMATION

    Analysts ToWatch

    Forrester is continuously researching, analyzing, and writing about changes and new developmentsin technology. To keep abreast of future Forrester research on the subject of interactive marketing,you may want to watch for new research coming from the following Forrester analysts:

    Brian Haven. Brian is a senior analyst whose research focuses on emerging interactive channelsfor marketing and customer engagement. Specifically, he covers the intersection of rich media

    and Social Computing, including consumer-generated media, online video, podcasting, andimmersive video gaming environments, helping marketers navigate these new communicationchannels. Additionally, Brian teaches bootcamps on emerging interactive channels and SocialComputing.

    Peter Kim. Peter is a senior analyst on Forrester's Marketing research team, which analyzesthe changing role of marketing in an era of media fragmentation, increasing prevalence ofaddressable and interactive media, and fast-changing consumer behavior. Peter's currentresearch agenda focuses on marketing strategy and organization, advertising, word-of-mouthmarketing, and consumer media behavior.

    Charlene Li. As a vice president on Forrester's Marketing research team, Charlene examines theways new technology will affect how companies deliver information, content, and advertising,as well as how these changes will affect the businesses that provide these services. Charlene'scurrent research agenda focuses on marketing trends, consumer search, Social Computing(blogs, RSS, podcasting, and social networking), consumer portals, media site design, localmedia, and online recruitment.

    Christine Spivey Overby. Christine is a principal analyst who analyzes how marketingleadership responds to fast-changing consumer behavior, emerging digital and interactivechannels, and the rising call for marketing accountability. Christine's current research looksat marketing measurement strategies, methods, and technologies; marketing as a driver ofcorporate innovation; and the role of mobile channels in the overall marketing mix. She alsoevaluates the role of digital marketing in consumer products (CP) manufacturers' overallmarketing strategies.

    December 26, 2006 2006, Forrester Research,Inc. Reproduction Prohibited

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    TopicOverview ITopic Overview: Interactive Marketing 9

    Laura Ramos. Laura is a vice president on Forrester's Marketing research team. Her currentcoverage focuses on areas of specific interest to business-to-business (B2B) marketers, includingthe B2B buying process, effective B2B marketing tactics and best practices, and the use oftechnology to address the specific and unique needs of firms that sell to businesses. Laura's workalso focuses on marketing lead management, sales and marketing integration, effective channelmarketing strategies, pricing models and strategy, interactive marketing, database marketing,and marketing measurement in the B2B setting .

    Shar VanBoskirk. Shar is a senior analyst on Forrester's Marketing research team. Her workfocuses primarily on strategies for leveraging interactive channels, and she is widely quoted inpublications such as The New York Times, For tu ne,and The Wall S tr ee t Jou rnaland has appearedon National Public Radio. Shar's specific areas of emphasis include email marketing, onlineadvertising, search engine marketing, ad serving, and targeting.

    Research Help Desk

    Research specialists in Forrester's Research Help Desk collaborate with Forrester analysts to compilethese Topic Overviews for selected areas of Forrester's coverage. If you have additional questionsabout this topic, please contact us at researchhelpdeskocforrester.corn, and we will respond to yourquestion within 36 hours.

    Research Alerts

    To be notified when a new document is published about interactive marketing or by any of theanalysts listed above, set up a Research Alert.

    ENDNOTES

    1 See the July27,2006, Data Overview "The State Of Consumers And Technology: Benchmark 2006:'

    2 Easy connections brought about by cheap devices, modular content, and shared computing resources are

    having a profound impact on our global economy and social structure. Individuals increasingly take cues

    from one another rather than from institutional sources like corporations, media outlets, religions, and

    political bodies. Tothrive in an era of Social Computing, companies must abandon top-down management

    and communication tactics, weave communities into their products and services, use employees and

    partners as marketers, and become part of a living fabric ofbrand loyalists. See the February 13,2006,

    Forrester Big Idea "Social Computing:'

    2006, Forrester Research,Inc. Reproduction Prohibited December 26, 2006

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