Key Trends for 2014: New Demands Accelerate Marketing
Big data, real-time marketing and the always-on consumer
The rapid emergence of the everywhere, always-connected consumer places new demands on marketers, according to a new eMarketer report, “Key Digital Trends for 2014.” Specifically, it raises expectations about the speed with which marketers need to respond to expressions of interest across the customer journey, from the consideration phase all the way through to post-sales service. Gone are the days of 24- or 48-hour response times. Consumers expect instant interactions, whether it is a relevant offer or an answer to a customer service query, and the ability for same-day delivery of items purchased through digital channels.
Delivering on consumer expectations of immediacy requires a combination of several factors. Automation will be one piece of greater marketer responsiveness, especially on the advertising side. Ads can help marketers establish a presence with consumers across the purchase cycle, wherever they may be and whatever they may be doing.
But automated purchasing of display ads—whether served on websites or appearing in a smart device app—is just one piece of the puzzle. A related need is ensuring those ads show up in the right place and on the right device. A key task for marketers involves recalibrating their efforts in line with the device-shifting behavior of their audiences.
And marketers expect that smarter applications of data will help them respond faster—and better—to business challenges. For example, in a July 2013 survey by NewVantage Partners and the Direct Marketing Association (DMA), 87% of US financial services and healthcare executives cited the acceleration of their ability to gain insights and answer questions as a byproduct of working effectively with Big Data.
Marketers anticipate that greater immediacy will yield a host of benefits not limited to gains in efficiency and transparency. They likewise expect to see benefits in marketing effectiveness in terms of more precise targeting. But when it comes to real-time efforts in particular, marketers hope to drive increases in engagement with their often-elusive audience.
One result is that integration between digital and traditional channels is increasing. According to brand marketers surveyed worldwide by marketing firms Econsultancy and Responsys in May 2013, websites, email and paid search were the most tightly integrated digital marketing channels. SEO, display ads and social media marketing efforts followed closely behind. A corollary is that marketing campaigns overall are becoming more interdependent across channels. This, too, should pay dividends in terms of greater responsiveness to time-, place- and device-shifting consumers.
Mobile connectivity fosters a constant ‘shopping state of mind’
“Always-on commerce” is a subtle but significant evolution from “everywhere commerce,” brought on by consumers’ ubiquitous connectivity, according to a new eMarketer report, “Key Digital Trends for 2014.” The upshot is consumers who are, in effect, always in the consideration phase for something and rarely more than a tap away from jumping from a physical store to a virtual store, or from one online merchant to another.
The impact of a pervasive “shopping state of mind” fostered by greater mobile connectivity is only beginning to be reflected in commerce sales forecasts. eMarketer predicts that by 2017, mobile will account for 26.0% of US retail ecommerce sales (which exclude travel and event tickets), up from 19.0% in 2014. That still translates into a small fraction of total retail sales, however.
Nick Hodson, partner at Booz & Co., put his finger on it when he explained: “Smartphone use is more or less continuous. [It] doesn’t say anything about whether the use has anything to do with shopping, but it does mean that [it has] a large part of the consumer’s mindshare during that shopping mission. The shopping trip starts earlier and ends later than it used to.” In other words, even if consumers are not consciously shopping, they are shopping nonetheless. It is about state of mind as much as intent and physical location.
Though mobile still accounts for such a small share of US retail sales, this shift is further along in more digitally advanced markets like the UK, where mobile will account for an estimated 24% of retail ecommerce sales in 2014, and rise to 35% in 2017. Mcommerce also is growing at a far faster clip in the UK. Retail mcommerce sales in that country will increase 53.3% in 2014, eMarketer estimates—more than triple the 15% growth rate for retail ecommerce.
Tablet commerce is emerging as key to the overall mobile retail equation. For now, however, smartphones provide more attainable access to the much-larger segment of consumers in both developed and emerging markets who can afford to buy only one device.
The combination of portability, connectivity and relative affordability gives the smartphone a privileged place in driving always-on commerce. Unlike tablets, smartphones are more frequently used on the go, often to assist in a purchase that in many cases does not necessarily terminate on the device. Even if tablets generate far higher on-device sales, smartphones play a unique role as the fulcrum between digital and physical retail.
Read more at http://www.emarketer.com/Article/Key-Trends-2014-Always-On-Commerce/1010439#VHizjw8OhkuaL0xF.99