2009 Trends

IPG Emerging Media Lab Accelerating Marketing Innovation by Empowering Agencies and Brands

2009 Digital Trends

‘09 Trends: Setting the Stage ‘09 Trends: Setting the Stage

2009 Trends

60% of marketing professionals planned to increase their spending on online advertising in reaction to the downturn.

Even with downturned economy, online advertising is expected to grow from $24.5 billion in 2008 to $28.5 billion in 2009.

The combined growth rate for online ad revenues in Q1 and Q2 among the top four US portals—Yahoo!, Google, AOL and Microsoft—was 19%.

-Source, MarketingProfs

-Source, eMarketer

Online includes several categories:

search, display (banners, rich media and video) and e-mail ad spending.

Slow Economy Making its Mark

Toward interactive, digital marketing

Setting the Stage

2009 Trends

Current MarketplaceMajor Digital Media Players

• AOL – Platform A• Microsoft – Aquantive/Atlas/DrivePM• Google – DoubleClick/AdWords• Yahoo! – AMP/Fusion

The major players offer a full suite of targeting options and millions of eyeballs:

• Behavioral Targeting, PPC Search, Geo,Demo and Contextual Targeting

Vertical Integration is within sight for the two largest players

• Microsoft – Aquantive/Atlas & Atlas VOD/DrivePM/Navic Networks (Cable TV and Online Video)

• Google – DoubleClick/AdWords/Google TV (Echostar & NBCU), Google Radio, Google Print

Next for Them:

• Conquer agency media planning and back office

Alarmist POV:

• Full-service media offering, circumvents a traditional agency relationship

Setting the Stage

2009 Trends

SOCIAL MEDIA Development

Google’s Open Social

OpenSocial defines a common API for all social applications across multiple websites.

Developers can create apps that access a social network's friends and update feeds.

GOAL: All social apps working across all sites.

Open Platforms Drive Ubiquity

MOBILE Development

Google’s Android is a software stack for mobile devices that includes an operating system, middleware and key applications.

Apple opened the doors to its “App Store,” accessible through the standard iTunes interface.

And within 3 days of its debut, more than 10 million applications were downloaded

GOAL: One operating system for all mobile phones.

Setting the Stage

2009 Trends

New Consumer Reverses the Flow

We used to spend 80% on distribution (“media”) and 20% on content (“production”)

We are now starting to spend80% on the content (platforms), and 20% on distribution (driving traffic)

Setting the Stage

Source: MRM Worldwide

2009 Trends

Broadband

New Hollywood Traditional Content Model is Broken

Short Form

Display Ads

Sponsorship

Hypersyndication

Subscription

Broadcast

Setting the Stage

2009 Trends

•Personal Branding•Letting the Consumer Work For You

•Rise of Expert User

•Cloud Computing•Semantic Web

•Advanced Browsers•Extensions to Browsers

•Individual to Group•Shared Sharing

•Microblogging•Social Reputation Management

•In -Store to Online•Smart POP - RFID

•Audience Measurement•Pop-Up Retail

•Single Purpose Apps•Privacy

•Simplifying to Save•Sustainability

CONVERSATION IS KING

BEYOND THE BROWSERS

TRANSMISSION EFFECT

RETAIL SOARS

ZEN TECH WARRIOR

The browser is becoming the new operating system with applications, content, and the “growing pipe” feeding off it as a platform

Beyond the Browser Beyond the Browser

2009 Trends

Cloud Computing – Putting the Foundation in the Cloud

Beyond the Browser

Services, storage and applications all exist in the Internet (cloud) and a user taps into the cloud using a device.

User/Businesses can start relying on the Internet for satisfying all their computer

Developers are looking at browsers as a communication layer

“What we really needed was not just a browser, but also a modern platform for Web pages and

applications, and that's what we set out to build.” -Google Blog

Google’s ChromeGoogle’s Chrome

+ Beefed up Javascript Engines

+ Better stability

+ More extensions

2009 Trends

Semantic Web

Stumbleupon is a toolbar that, once clicked, takes you to a unique webpage that’s matched to your pre-set personal preferences. It allows you to quickly stumble upon countless of fun/useful pages you never would have found otherwise.

The semantic Web is an evolving extension of the Internet.

Information is exposed and filtered by computer intelligence, not humans.

•Semantic profiles assembled from shared information and learned behavior will allow virtual “agents” to personalize your online experience. •Sets the stage for Intelligent execution of requests and hyper-relevant information retrieval.

Twine is an online application that keeps tracks of your interests and allows you to collect and share online content. It then organizes your content, “learns” what you are interested in, and recommends new things to check out.

Beyond the Browser

2009 Trends

Extensions to the Browser

Before: Browser extensions added little value to your Internet experience.

Now: Extensions can completely redefine it.

Cooliris transforms your browser into a fully-immersive cinematic slide show

Beyond the Browser

For individuals and brands, Web presence alone is no longer enough—now it’s about engaging customers in conversation and managing relationships online

Conversation is King Conversation is King

2009 Trends

I Am Online Therefore I Exist.

Conversation is King

Personal branding

•How we are represented online will determine how the world views us

•How we get jobs and the friends we keep are influenced by our online presence.

Branding strategies include

2009 Trends

Rise Of Expert Users

Word of mouth will shift from the many to the few—

Expert users who are defined and trusted by the community

Conversation is King

2009 Trends

Focus on Expert Users: Gen X & Gen Y Moms

Top three online activities of Gen X moms:•Using photo sites, •Rating •Reviewing products•shopping

 

Top three online activities of Gen Y moms:• Reading blogs• Participating in an online community of moms • Creating and sharing their own video

Conversation is King

“Motrin-gate”

2009 Trends

Brands are learning to listen--no, really

Companies are starting to trust consumers — a fundamental shift in perception

Brands are enlisting their audience for crowdsourcing (i.e. design input, product development, etc.)

Conversation management: Brands are learning to listen to conversations wherever they are occurring, giving them an opportunity to respond and improve service and products

Conversation is King

2009 Trends

Social Media as CRM The New ROI = Return On Involvement

Advertisers must use a combination of

metrics to maximize engagement analysis

Source: JupiterResearch/ClickZ Social and Mobile Marketing Executive Survey (2/08), n = 238 (social marketers), US; n = 40 (social marketers spending $50K+, US)

Question: What metrics do you rely on to measure the success of your social marketing efforts? (Select all that apply.)

Conversation is King

Conversations and content are moving faster and spreading everywhere

Individuals become groups that become organized units that can move mountains.

Transmission Effect Transmission Effect

2009 Trends

The New Editorial

Twitter has influenced the format for breaking news

Twitter has influenced the format for breaking news

Live blogging of events and live mobile video are increasing speed by which news is transmitted

Flixwagon, Livecast and other providers are making live mobile video broadcasting possible

Live blogging of events and live mobile video are increasing speed by which news is transmitted

Flixwagon, Livecast and other providers are making live mobile video broadcasting possible

Transmission Effect

2009 Trends

Group to Group Communication

Groups each have their own personality, manners,

memes, and vocabulary

Groups that share members become meta groups

2009 Trends Transmission Effect

2009 Trends

Content Can’t be Controlled

Transmission Effect

All content is viral contentAll content is viral content

The HD DVD encryption key that Digg could not keep off their site

The HD DVD encryption key that Digg could not keep off their site

Comcast technician falls asleep on man’s couch – video leaks on YouTube, receives national press coverage

Comcast technician falls asleep on man’s couch – video leaks on YouTube, receives national press coverage

“Tronguy” was featured on South Park

• Content cannot be controlled, but the tone of the conversation around the content can be set

• Brands need to be present at every stage of a conversation.

• Brands must respond, not react

2009 Trends

Brand Reputation Management

Brands must have a web reputation strategy to manage web insurrections

Transmission Effect

From Smart Signs and interactive mirrors to RFID and loyalty programs, retail is undergoing dramatic changes to become more interactive and meet consumers’ and brands’ needs.

Retail Solutions Soar Retail Solutions Soar

2009 Trends

Online Experience Influencing In-World Purchase Decisions

Retail Solutions Soar

Consumers’ shopping experiences are enhanced with the ability to constantly be connected to the web via mobile phone.

SnapNowPhotograph any retail product to receive price comparisons and peer ratings from Amazon.com

Google’s mobile bar code reader Zxing (“zebra crossing”)Enables photography and decoding of barcodes to provide data about products immediately via mobile

2009 Trends

Smart Signs and Interactive Mirrors

Customer interaction triggers an online-like experience in store that features:•Product details•Customer ratings •Side-by-side feature comparisons

Solutions provide “Real Time” statistics of every customer interaction

Retail Solutions Soar

2009 Trends

Audience Measurement In Store

125°

20ft

Identifies any number of concurrent

viewers within the field of view.

Brands want to know who is watching and when

Advances in analyzing audience data will provide ways to generate more relevant, targeted ads

Retail Solutions Soar

2009 Trends

Pop-Up Retail Big Box retailers in small doses with new locations

Retail Solutions Soar

The Zen Tech Warrior wants to be digitally connected, but on their terms.

Conscious of their pocketbooks and the environment, they are increasingly discerning about their choice of media and technology platforms.

Zen Tech WarriorZen Tech Warrior

2009 Trends Zen Tech Warrior

Rebirth of the Nomad

Portable USB Applications

New online storage solutions provide more freedom

The Zen Tech warrior wants to roam freely, with access to all the fruits of technology, but they don’t want to be restrained by cumbersome devices or clunky platforms

To Do list follows you on the road

•Personal Digital Assets and Identification

2009 Trends

Single purpose applications

The PEEK does e-mail, and that’s it.Time Magazine’s 2008 #1 Gadget of the Year. For $19.95/month, users have unlimited access to e-mail in an incredibly slim and easy to use handheld device

Flip Video does video, and that’s it. The Flip camera captures high quality (even HD) video and makes it easy to upload to Myspace, Facebook and other sites with a built in USB-port.

Some consumers are finding that single-purpose applications, all of which are incredibly easy to use, are solving their problems best and making their lives more efficient

Tumblr

Zen Tech Warrior

2009 Trends2009 Trends

Simplifying to Save

In a down economy, consumers are using technology to save money:

Cutting cable and moving to Xbox360, AppleTV, and other solutions

Cutting landlines and making a permanent switch to mobile-only lifestyle

Cutting down on printed invitations and announcements, moving to email and digital solutions

• 60 percent of U.S. consumers intend to cut spending in at least one area of communications and media entertainment this year

• 1 in 5 households are cutting their landlines

Zen Tech Warrior

2009 Trends

Privacy Pushback

Overexposure of online profiles drives a privacy pushback

•Behavioral Targeting under heavy scrutiny by FCC

•Anonymous email services used for sign-ups

•In-browser private browsing settings

• Already in Chrome and Safari, planned in Firefox and IE

Zen Tech Warrior

2009 Trends

Sustainably Digital

Shedworking refers to working from home in a (custom built) office space. It’s a fast growing trend that is indicative of the employee’s ability to provide content and products without the hassle of a commute and the bureaucracy of a corporation.

Hydro-powered, kinetic, solar fueled; whatever the product, whatever the packaging, consumers are looking for products and brands who have an eye on all things green.

Zen Tech Warrior

2009 Trends

Get in the Game – Develop a Content Strategy

Mobile

Social Media

Broadband

BroadcastDigital Out of Home

2009 Digital Trends What does this mean for marketers?Contact us to discuss what new trends in digital mean for agencies and brands

and how you can stay ahead of the digital curve in 2009.

Lori.schwartz@ipglab.com(including membership questions)

Raquel.Krouse@ipglab.com

Josh.Lovison@ipglab.com