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MAR KET ING 20 15 MARKETING TRENDS MARKETING CONSUMER DIGITAL HEALTH
20 15 MARKETING TRENDS Our fifth annual series of trends reports includes insights into the big shifts that are changing marketing, healthcare, digital experience, and consumer expectations. In this report, you’ll find the top eight trends in marketing, each with clues into new possibilities and examples of brands that got there first.
20 15 MARKETING TRENDS Abigail Schmelzer Alex Brock Andrea Evans Angela Cua Azul Ceballos Campbell Hooper Charles DiSantis Chelsea Bailey Duncan Arbour Eduardo Menendez Eric Davis Fred Harrison James Tomasino Jeffrey Giermek Jessie Brown Joe DeSalvo John Mucha Joy Hart Julie Valka Kathryn Bernish-Fisher Kevin Nalty Leigh Householder Luke Hebblethwaite Matt Groom Mike Martins Nick Bartlett Nicole Sordell Pavithra Selvam Phil Storer Richard Martin Rick Summa Sam Cannizzaro Sarah Brown Sayeed Anwar Scott Raidel Stefanie Jones Zach Gerber CORE CONTRIBUTORS
At the core of our innovation practice is a simple idea: At the core of our innovation practice is a simple idea: Knowing how people’s expectations are changing lets us capture new market opportunities, take smart risks and spur innovation. We start by uncovering clues. Clues are data points, great stories, quotes and pictures that shift our understanding of what people want right now. We find them in practices around the world and in the technologies, brands, and experiences that doctors and patients encounter in their every day lives. Over time, those clues combine and connect to reveal trends, a new kind of inspiration for creating experiences in the moments before our customers realize they need them. And, months and years before our competitors realize the same thing. 20 15 MARKETING TRENDS
Focus Group Adjourned *Poof* – Instant Advertising Amuse Me, Dear Advertiser Content Isn’t King, It’s the Kingdom Humble Brands Teaming Up Right-sized Video Local, Now More Local We’re following eight trends that show how marketers will earn attention and engagement in 2015. THE TRENDS 1. 2. 3. 4. 5. 6. 7. 8.
FOCUS GROUP ADJOURNED 1. IN SHORT The open secret of high-stakes websites is quickly becoming the standard for message and marketing testing.
The rise of live message testing For decades advertisers have invested heavily in getting every single detail of a campaign right before launching it to the world. They used focus groups, quant studies, intercepts and more. Now big brands are increasingly borrowing a long-trusted trick from startups: in-market testing of incomplete products. The approach randomly divides an audience into two groups and offers each group a different option. Those options could be large or small—from entirely different homepages to a tweak in a banner ad headline. The option that earns more of the desired behavior wins. At least until the next test. Companies whose conversion rates have improved over the previous 12 months are performing on average 50% more tests than those companies whose conversion rates have not improved. —Econsultancy, 2014 50% 1. FOCUS GROUP ADJOURNED
#1 lesson: Never trust your gut 1. FOCUS GROUP ADJOURNED During President Obama’s two election campaigns, he charged his digital team with one big goal: turn the website’s visitors into subscribers—scoring an email address that would let the marketing machine kick into high gear. To maximize that desired behavior, they broke every page into its component parts to determine how each could be most effective, changing images and wording on buttons to test their hunches. Had the team listened to those hunches, to instinct, the sign-up rate would have slipped to 70% of the baseline. Instead the A/B testing brought it to 140%. In fact, they estimated that a full 4 million of the 13 million addresses in the campaign’s email list, and some $75 million in money raised, resulted from these careful A/B experiments.
1. FOCUS GROUP ADJOURNED “Learn More” earned 18.6% more signups than the default of “Sign Up.”
CHOOSE EVERYTHING The beauty of A/B testing is that it lets marketers choose all of the above. Why limit the options we give to consumers when they can better choose what they want? If five headlines appeal to the brand, data can rule that final decision by running all five by our audience, testing them live to see which earns the most action. This revolution in research is turning traditional decision-making on its head. Taking the call away from the HiPPO—”highest-paid person’s opinion”—and giving it to the people who pay us, our customers. 1. FOCUS GROUP ADJOURNED 140% 70% WITH TESTING WITHOUT TESTING
*POOF* – INSTANT ADVERTISING 2. IN SHORT The instant-advertising era gained a head of steam in 2014 and is set to earn brand sharing for years to come.
from in the can to on the spot Advertising typically takes months to produce. It starts with a creative brief and concepts and ends with a very choreographed placement in mass media. That’s why even seemingly of-the-moment advertising like Walt Disney’s famous post-Super Bowl “I’m Going to Disney World!” commercials were created well in advance of the big game. The spots themselves had to be to the television stations days before kickoff. Social media took a big step toward changing that model. No longer did advertisers have to buy television time or reserve print space to reach customers. That middle man of mass advertising could be entirely eliminated. But it’s a new kind of collaboration between agency and client that’s really made instant advertising possible. 2. *POOF* – INSTANT ADVERTISING 32% 26% Laptop Smartphones 20% Tablets 8 in 10 consumers use a second screen while watching TV —CEA, 2014
social media response 2. *POOF* – INSTANT ADVERTISING During live events, many brands have their agencies at the ready to seize opportunity. Oreo’s famous Twitter ad during the Super Bowl power outage took just five minutes to conceive and produce because creative and strategy teams were on site, working together. It published quickly and was retweeted more than 15,000 times in the first 14 hours because client teams were on hand, ready to review and approve just as quickly. Nissan won over the Internet with a similar rapid response, joining the worldwide excitement about the new royals and reaching hundreds of thousands of drivers doing it.
Joining a national conversation 2. *POOF* – INSTANT ADVERTISING The secret to instant advertising is context: being part of a conversation or event people are already excited about and are actively looking online for people (and brands) that feel the same way. There may be no annual event for which the fanboy excitement is more palpable than Apple Live. It’s where the new iProducts are revealed and the gossip leading up to it is dwarfed only by the flurry of online conversation during it. Samsung took big advantage in 2014 by creating instant ads that made fun of Apple's glitchy live video stream and compared new iPhone features to ones it had made standard years before. Video: engadget.com/2014/09/10/samsung-notethedifference-apple-attack-ads/
AMUSE ME, DEAR ADVERTISER 3. IN SHORT The golden rule of content marketing is coming to advertising: Make things people want instead of making people want things.
What do people want? Shakira, of course. 3. AMUSE ME, DEAR ADVERTISER The most shared ad of all time was “The Force” for Volkswagen. You remember it—the cute kid in the Darth Vader costume who believed he was opening the car door with The Force, promoting the remote start feature on the new model. It was the most shared until the Dark Empire fell to yogurt. Dannon bested the spot with trackvertising —a spot that is both a music video and an ad. They launched an Activia spot, titled “La La La (Brazil 2014)” featuring Shakira, during the World Cup. At last count, it had been shared 5,409,192 times across Facebook, Twitter and the blogosphere, (beating out “The Force” at 5,254,667 shares). The bigger spread is in the number of views. “The Force” earned 60 million. “La La La” is at over 330 million and counting. Kia recently launched even more brand-centric trackvertising with Maroon 5’s single “Animal,” and with Lady Gaga’s track “Applause.” H&M teamed up with Beyonce, Fiat with Arianna; and Evian with Rizzle Kicks.
3. AMUSE ME, DEAR ADVERTISER Shakira “La La La” Video youtube.com/watch?v=7-7knsP2n5w Volkswagen “The Force” Video youtube.com/watch?v=R55e-uHQna0
FINE PRINT GETS FUN Every traveler is familiar with these words: “Now we request your full attention as the flight attendants demonstrate the safety features of this aircraft.” We know they’re required to do it, but the presentation that follows is so boring that even its could-save-your-life potential can’t make people tune in. Delta decided to rethink that fine print and make the required safety demonstration fun. Not just for the sake of entertainment, but to really earn people’s attention. Their new in-flight videos include their charismatic president, triplets, a few comedians, and even a friendly alien we know as Alf. 3. AMUSE ME, DEAR ADVERTISER Delta’s Safety Demonstration Video youtube.com/watch?v=eduNjwNvcH4
MORE CHANNELS, MORE OPPORTUNITIES The fracturing of original programming is creating even more opportunities for brands to develop advertainment. Platforms like Hulu offer brands much more than product placement: from becoming part of the story arc, to taking the characters off set, to develop brand-centered original programming. 3. AMUSE ME, DEAR ADVERTISER Kony 2012 Video: youtube.com/watch?v=Y4MnpzG5Sqc DYK Only one (Kony 2012) of the most shared videos of all time is not a music video.
CONTENT ISN’T KING, IT’S THE KINGDOM 4. IN SHORT Rumor is that you’re more likely to climb Mount Everest or survive a plane crash than click on a banner ad. So why do we keep making them?
Closing the attention gap 4. CONTENT ISN’T KING, IT’S THE KINGDOM Where do people go with their questions about life and health? 90% of people turn to the Web first for information about consumer products or services and 72% of people treat their health questions the same way. But, only 13% of them choose our product websites for answers. We do a little better with doctors: 82% are asking Google for help every week and 21% get some of their information from our product sites. That attention gap has a lot to do with our current approach to content. Our ads and websites are all about the brand and not at all about our customers. Consumers want more than those product messages— and they’re finding it elsewhere. Consumers are hit by over 5 trillion impressions a year, leaving consumers feeling bombarded by, what a recent Microsoft study called, “irrelevant information overload.”
4. CONTENT ISN’T KING, IT’S THE KINGDOM 14% 2.8% We’re living in an era of banner blindness: Only 14% can remember the last display ad they saw and the product it promoted. Worse, only 2.8% say the ad was relevant to them. -Infolinks, 2014
content flips the model 4. CONTENT ISN’T KING, IT’S THE KINGDOM More and more brands— from American Express to Merck—are using content marketing to fundamentally change that model and earn more of their time and attention. They’re throwing away the megaphone of push marketing that interrupts doctor and patient alike with yet another commercial message. And replacing it with what people are actively looking for: compelling, authentic stories that create real meaning and provide real value. In the American Express OPEN Forum that means 200 experts giving ~ 2 million people per month ideas, advice, and connections that will grow their small businesses and increase their use of American Express products. For Merck it means self-screeners, personal planning tools and deep content designed to help people living with chronic disease stick with treatment and lifestyle change. Or, said another way: Be more loyal customers.
4. CONTENT ISN’T KING, IT’S THE KINGDOM
Our first question to answer is one of the biggest: HMDIS 4. CONTENT ISN’T KING, IT’S THE KINGDOM When people first go online looking for healthcare answers, they have one big question: How Much Does It Suck (HMDIS)? They want to know what to expect, what side effects might be possible, how much will it cost, and when they might actually start to feel better. They’ll return later with much more personal questions to understand if how they’re feeling is normal or if there isn’t something more they could be doing. The healthcare brands that are making the deepest connections are delivering three kinds of content to support them along their very personal journeys: Information: What happens if you don’t take your medicine, facts about how the drug works in your body, about what life on therapy will be like. Inspiration: Disease makes people feel isolated and alone. Bring them inspiration from people who are dealing with the same decisions and disease. Innovation: Curate and create apps, experiences, and products that enable more empowered patients and physicians + better living with diseases.
4. CONTENT ISN’T KING, IT’S THE KINGDOM DATA DRIVEN CONTENT MARKETING DELIVERS RESULTS: Content marketing earns 54% more leads than traditional marketing and costs 13% less per lead. Hubspot survey of 3,300 business leaders and marketers around the world. —2013 DDCM 54% more effective Cost 13% less 54% 13%
HUMBLE BRANDS 5. IN SHORT A surprising number of brands are trying to carve out a new space. One that puts them firmly in the back seat.
5. HUMBLE BRANDS “Even very successful brands leverage their humble beginnings by using a narrative of their history to help build brand biographies. Tech giants Apple, Microsoft, and HP each proclaim that they were started in a garage. In doing so, managers hope to construct a brand image that can leverage their underdog status for competitive advantage.” —Consumer Research, Georgetown University
KNOW YOUR BRANDED PLACE After a decade of marketers vying to create the next Big Lifestyle Brand that fans would not only buy, but make part of their own identities and lives, we’re seeing a shift to a less assuming approach. More and more brands are turning the attention away from themselves, letting the customer be the story and simply pointing to their small part in it. 5. HUMBLE BRANDS 71% 29% Underdog Brand Top Brand Overall, consumers were more likely to choose the underdog brand (71%) than the top-dog brand (29%).
FIRST, THROW AWAY THE LOGO This spring will mark the end of Abercrombie and Fitch’s traditional logo-focused apparel line in the US. Teens who once sought brand names have shifted to fast fashion that is cheaper and unmarked, from retailers like Forever 21 and H&M (Hennes & Mauritz). They want to put together their own individual styles, not emblazon themselves with a brand. It’s not just teens. Brands ranging from Louis Vuitton to Michael Kors to Coach have started to limit logo’ed merchandise. Once considered among their most must-have items, products bearing logos have been broadly relegated to the discount bin. 5. HUMBLE BRANDS Abercrombie & Fitch is dropping its logo from their apparel to meet a shift in unmarked retail goods.
BE PART OF SOMETHING BIGGER Who’s behind the largest public hygiene campaign in the world? It’s Unilever. And their ultimate ambition is to reach 1 billion people. At the center of the effort is the Lifebuoy soap brand. Unilever focuses the brand’s humble efforts on reducing the number of children who die from diarrhea and pneumonia. They do it by telling stories about families, not about brands. And by taking action in communities. Like, stamping 5 million roti with a soap-washing reminder at Kumbh Mela in Allahabad, India, where 100 million visitors pass through. They’ve also created new ways for villages to connect around better hygiene, like a clever jump pump designed to bring children together or a simple test to show children how clean their “clean hands” really are. These humble efforts work because soap saves lives. Selling more soap builds bottom lines. It’s a double bottom-line approach to social business that creates opportunities for big consumer brands to act like service brands, expanding their reach and changing their reputations. Coca Cola and GE are following suit. 5. HUMBLE BRANDS
UNILEVER, “HELP A CHILD REACH 5” Unilever has built the largest public hygiene program in the world and delivered real health impact—reducing diarrhea by 25%, reducing respiratory infections by 15%, and increasing school attendance by 40%. 5. HUMBLE BRANDS Unilever “Help A Child Reach 5” youtube.com/watch?v=UF7oU_YSbBQ
5. HUMBLE BRANDS BANK OF AMERICA There’s no better example of this “humility in advertising” than Bank of America’s storytelling campaign, which takes us into the real lives of its customers with this powerful, but deferential promise: We know we’re not the center of your life, but we’ll do our best to help you connect to what is. Bank of America “Portraits” Video youtube.com/watch?v=efAqCmKZDDI GUINNESS Guinness’ “Friendship" spot takes a similar approach, letting its consumers be the focus of the story. The 60-second spot is all about six guys playing wheelchair basketball, revealing in the end that only one of the men needs the mobility device to play. After the final buzzer, the group heads into a pub for a few post-basketball pints. Guiness “Wheelchair Basketball” youtube.com/watch?v=0Vxjh6KJi8E
TEAMING UP 6. IN SHORT Why go it alone when the perfect sidekick can make your story so much better?
MAKING IT CLICK Today’s partners are getting much more creative about where multiple brands can fit into one experience. From the floor of Comic Con to Central Park to hospitals in India, these brands are turning away from glorified sponsorships and figuring out how to amplify each other’s brands with deeper integrations. Okay, maybe not all so “deep.” Some of our recent favorite pair-ups include 3D Systems and The Hershey Company, joining forces to chef up printable chocolate. Or Pizza Hut and the Ninja Turtles, replicated the Ninja Turtles’ pizza-shooting van and letting Comic Con fans shoot pizzas from the top of it. Yes! 6. TEAMING UP Chobani ran a promotion in New York City with transportation app Lyft. New riders received a case of pumpkin spice yogurt in exchange for booking a car, resulting in 19,000 people who received free yogurt in two hours, according to CMO and brand officer Peter McGuinness.
RIDING A TREND Uber will continue to be the darling of urban riders going into 2015. Which will, of course, continue to make them the darlings of urban brands. Lay’s made one of the most memorable moves, with a bold new Uber-assisted approach to sampling. Consumers could log on to try one of the new potato chip flavors and—with the right code—have UberRush quickly deliver them a basket filled with the chips, two sandwiches from Katz's Deli, fruit and two bottles of Aquafina water (owned by the same parent company). Retailers, universities, and the reservation system Open Table have partnered with Uber to deliver everything from mattresses to dinners. Expect more surprise services in the year to come. These early integrations point to a new fast-mover expectation. The first to make the partnership wins headlines and hearts. 6. TEAMING UP Pizza Hut teamed up with the producers of the Teenage Mutant Ninja Turtles movie to create a real-life Pizza Thrower, a vehicle used in the original cartoon series.
BEST OF TWO VERY DIFFERENT WORLDS As the walls of traditional institutions—like media and publishers— continue to crumble, more interesting partnerships are formed in their wakes. One we’re watching is Amazon—now both retailer and publisher—and Mattel. Together, they’re bringing popular children’s cartoon Fireman Sam exclusively to the online retailer. Across the UK, France, Germany, Italy, Poland, and more, Amazon users will be able to watch the best of Sam, via Amazon Instant Video, Prime Instant Video, and FreeTime Unlimited, paired with ready-to-buy merchandise like toys, ebooks, games, apparel, footwear, and lunch boxes. These intriguing opportunities to bring new expertise to the experience are extending into healthcare. Think Eli Lilly and Disney teaming up to make navigating diabetes easier for kids. Or, Sanofi partnering with India's Apollo Hospitals to offer diabetes management services via a chain of diabetes clinics. 6. TEAMING UP Disney and Eli Lilly’s “Coco,” a monkey with diabetes, helps kids make living with the disease easier.
RIGHT-SIZED VIDEO 7. IN SHORT In 2014, we said people would rather just press “play” than read brand content. In 2015, marketers are going to make that trend quite a bit smaller. “I thought that YouTube was like TV, but it isn’t. I was wrong. TV is one-way. YouTube talks back. TV means reach. YouTube means engagement.” —Eric Schmidt, Google chairman
SCREEN SHIFT CONTINUES Mobile has swiftly risen to become the leading digital platform, with total activity on smartphones and tablets accounting for an astounding 60% of digital media time spent in the US. Video is a critical part of that move. Every day, more than 100 million Internet users watch an online video—40% from mobile devices. Advertisers are following suit. US brands are expected to spend $6 billion on video ads this year, with growth to 15% of their ad budgets by 2017. Leading CMOs are quick to point out that number will just be the average. Some brands will be spending up to one-third in video. —Comscore, 2014; Nielsen, 2014 7. RIGHT-SIZED VIDEO 60% Mobile devices such as smartphones and tablets account for 60% of digital media time spent in the U.S.
MILLENNIALS ARE THE ACCELERATOR YouTube reaches more US adults ages 18-34 than any cable network. It is their TV. The challenge for brands is that traditional methods of advertising often don't translate well on mobile — both because of the different screen size and the user expectation. Eric Schmidt, Google chairman, said it best: “I thought that YouTube was like TV, but it isn’t. I was wrong. TV is one-way. YouTube talks back. TV means reach. YouTube means engagement.” People use phones differently than computers. The bar is even higher to make content quick and seamless, augmenting—not interrupting—the experience. - Nielsen, 2014 7. RIGHT-SIZED VIDEO What better way to show the power of video than with a video? Shutterstock and Comscore “Exploration of Video Engagement” vimeo.com/90856165
NEW MEDIA UNITS MAKE IT POSSIBLE Don’t worry, we’re not about to proclaim that banner ads are dead (again). Instead, they’re changing and evolving to be more native in more places. For example, Google’s new ad units are designed to overcome the limitations of the small screen and deliver a truly branded experience—mostly based on user interaction (there’s one that’s a little more, shall we say, not optional). One is focused on expanding the reach of their popular video ads on the TrueView platform by taking it from gaming apps to all apps. Their approach sets the bar high for brand and platform alike: advertisers only pay when a user chooses not to skip their ad. And, of course, consumers only engage with ads that make sense on the device, at the moment, and in the media they’ve chosen. 7. RIGHT-SIZED VIDEO Kate Spade created mobile lightbox engagement ads that dynamically resize to fit any screen size.
LOCAL, NOW MORE LOCAL 8. IN SHORT We’ve watched marketers make incremental changes to adjust to the digital world, but this year marks the tipping point of our big leap forward: proximity-based marketing.
iBEACON, DO YOU? Apple is the biggest momentum driver in the category, with its clever iBeacon devices. The small, cheap Bluetooth transmitters can talk to apps on user’s phones when the phones comes into range, prompting offers, content, or interactions. Beyond the iBeacon, all sorts of technologies —like NFC and GPS—make distributing local advertising content to users, via wireless channels such as mobile devices, easy. And when we say local, we mean hyper-local, within no more than 100 meters. 8. LOCAL, NOW MORE LOCAL iBeacon Bluetooth Transmitter
RETAIL JUST WENT FIRST 8. LOCAL, NOW MORE LOCAL ABI estimates the iBeacon/BLE market will grow to 60 million units in the next four years. Retailers moved first. Creating in-store promotions and location-relevant content designed to compete with stiff competition from hyper-personalized online stores. But proximity marketing can change any number of advertising experiences from billboards to baseball. In fact, it’s already changing Major League Baseball. The organization was one of the first to deploy iBeacons on a broad scale in 28 ballparks around the US. They let users check in to games to get special offers that recognize their location in the park and are customized based on offers they’ve used before. They’re entering phase 2 in 2015 with even more content and interactive features. As with any big shift, the jury is still out on the ultimate fate of this emerging trend. Operational complexities and opt-in requirements could stand in the way of fast upscaling. And the quality of first experiences could dramatically impact the rate of consumer uptake and confidence. But, right now, this is the next frontier of advertising: interactions delivered only in the moment they’re most likely to be relevant. BULLISH ON BEACONS
8. LOCAL, NOW MORE LOCAL 63% Consumers who feel a coupon is the most valuable form of mobile marketing 62% 57% 53% Consumers who share local deals with friends Consumers who are more likely to engage with location-based advertising Consumers that are willing to share their current location to receive more relevant advertising
20 15 MARKETING TRENDS To discuss this report live, request another module, or schedule a presentation of trends, please contact Leigh Householder at 614-543-6496 or firstname.lastname@example.org