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Rethink 2015

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If 2014 was the year of mobile, 2015 is most definitely the year of Rich Media.

Mobile ad spend is expected to increase 77%, in 2015. We will see sophisticated and creative collaboration in 2015, as content creators build audiences that rival those of pop stars and brands grasp just how powerful mobile can be. In order for brands to get the most ROI for their mobile advertising spend, they need to invest in Rich Media, to create immersive experiences, transforming their level of engagement with consumers.

In FreshDigitalGroup’s “Rethink 2015,” we take an in-depth look at the following Rich Media predictions in addition to forecasts for digital, mobile and social industries.

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Rethink 2015

  1. 1. Rethink 2015
  2. 2. Digital Industry Predictions Mobile Industry Predictions Digital Advertising Predictions Mobile Advertising Predictions Social Media Marketing Predictions Digital Industry Predictions Digital Advertising Predictions Mobile Industry Predictions Mobile Advertising Predictions Social Media Marketing Projections
  3. 3. Digital Industry Predictions In 2015, every website must be mobile-ready as it is imperative to reach consumers. Mobile-only/Mobile-first will be the rule, not the exception. One billion people will use mobile as their only form of internet access. User experience is everything in mobile and the focus must be on intricacy and ease. Adoption of wearable IoT technology will increase in the next five years tremendously. Wearables will carve a niche in the market as they will become essential to everyday life. Their usages are growing exponentially and they will remain as valuable utilities to complement both phones and laptops. Media companies will adopt data-driven strategies and integrate data into everyday marketing decisions, product development and campaign planning. Big data and advanced analytics will drive sales growth through more effective marketing and advertising.
  4. 4. The second screen experience creates unique opportunities for companies to enhance engagement between the audience and their favorite shows. People no longer consume media in a linear, predictable way. Therefore, to achieve brand objectives, we must mirror this shift in content interaction. 62% of users say synchronized content enhances their experience. In 2015, content will need to be more engaging to go viral and gain more traction. Marketers must add value to the user experience through content. This demands the right creative across the screen at the opportune time, and using research to listen to the consumer’s voice at key stages. Digital Industry: Second Screen
  5. 5. Apple has been late to the game of smart watches but in 2015 it will redefine how apps relate back to phones. With the heavy usage of iPhone users in America the amount of units to be sold will exceed 20 million or at least 10% of current iPhone users. Apple intends to challenge competitors to keep up with added features that others have yet to utilize. This will be setting the standard for what consumers expect in terms of wearables. Companies would be wise to study the depth Apple has spent on redesign and interface for apps on the phone versus the watch. Digital Industry: Apple Watch
  6. 6. Today’s society demands that more things in our lives become innately connected and it’s only a matter of time until this scope includes our homes. Despite a relatively new marketplace, the consumer’s need for control, convenience and safety around the home is increasing in popularity. By 2019, there will be 23.3 billion IoT installed devices connected to the Internet. This IoT expansion equates to 1.7 trillion dollars in added value to the IoT economy. Industries will be forced to deliver more efficient and user friendly systems and services that help consumers manage their homes and their security. Digital Industry: Internet of Things (IoT)
  7. 7. Digital Industry: Internet of Things (IoT) Amazon recently launched Prime Now, a one-hour delivery option for Amazon Prime members in NYC, will take off. By upping the convenience of the service customers will flock to it to purchase “essential” products, including things like paper towels, batteries, toys and books. Amazon has to stay competitive with the growing number of startup services offering similar benefits, including trials from larger companies. Amazon’s Prime push has seen the company add a lot to membership benefits in 2015, alongside a price hike earlier in the year. Amazon: Prime Now
  8. 8. Digital Industry Predictions Digital Advertising Predictions Mobile Industry Predictions Mobile Advertising Predictions Social Media Marketing Projections
  9. 9. Digital Advertising Predictions 2015 is multi-platform. Brands and agencies need Omni-device targeting, which includes: display, tablet, mobile, connected TV and others. Programmatic Native Will Become Practical. Publishers will make their native layouts more accessible by supporting programmatic native and will reap high CPMs. Advertisers aim for an increase in engagement and response, with early adopting platforms collecting healthy margins. Programmatic is primed to attract more players on both sides. The Demise Of Old School Ad Networks. In 2015 publishers will see the greater opportunity for ROI working with a good programmatic partner, rather than a traditional ad network.
  10. 10. Going forward, digital will continue to be the fastest-growing ad medium. U.S. advertisers’ spending on digital, largely due to mobile, will overtake even that of TV’s in 2016. As more consumers and ad spends shift toward mobile, programmatic ad buying will continue to boom, accounting for 50% of all mobile buys. Programmatic advertising in 2015 will increase 52% to $21 billion globally. Digital Advertising Predictions What does this mean for the digital advertising? 2015 will mark the rise of the “Meta DSP.” Brands and agencies will no longer single-source a programmatic partner anymore. One provider will not have the ability to satisfy every campaign need. Therefore, working with multiple programmatic partners in 2015 will be the norm, in order to capitalize on their different skills.
  11. 11. Programmatic TV can benefit all parties by automating buying, selling, delivery and measurement. It will play a major role in targeting audiences across screens and provide more deeply integrated planning options. Programmatic video advertising will grow to a $3.8 billion market by 2016, up from $710 million this year. Connected TVs allow advertisers to select ad content that is relevant and specific to the user watching at that exact moment. Access to consumer profiles and viewing activity in real time, empowers more targeted engagement. Digital Advertising: Programmatic TV
  12. 12. RTB will be the preferred buying method for all media. In 2015, more and more media buying will become automated and instantaneous. This will further aid in the ability of systems to seamlessly communicate with each other, improving accountability, measurability and efficiency. Mobile’s seamless ad delivery and increase in adoption. 2015 will see a shift away from the last- click model, towards click-to-engage metrics such as calls, use of a store locator and downloads. Omni-channel strategies will be important this next year, with unified, cross screen marketing efforts creating seamless experiences. Big data is getting bigger. First and third party data sources will help marketers pinpoint exactly when their customers are in the market for a product so that, instead of just knowing what the customers want after they click an item, marketers will know before customers visit a website. Companies have massive amounts of analytics related to sales, purchase history, search activity, site interactions and more. Big data gives marketers the most complete obtainable customer profile, which informs audience strategies, smarter media buying and creative decisions. Digital Marketing Predictions: Mobile, Data and RTB
  13. 13. Augmented Reality We predict AR to go up in popularity as it will lead to the much anticipated virtual reality. Augmented reality marketing has developed fast in the last few years, moving from web to mobile — and next, to wearable. In 2015 AR will become more commonplace in everyday life as well as across advertising platforms. AR campaigns require active engagement; consumers choose to trigger an AR experience. Brands will be able to deliver more value to their audiences and create much more impactful interactions, whether they are delivering something of educational, entertainment or functional value. This will stumble in the beginning, make no mistake, but by the end of 2015 it will have its place among the marketing space
  14. 14. Digital Industry Predictions Digital Advertising Predictions Mobile Industry Predictions Mobile Advertising Predictions Social Media Marketing Projections
  15. 15. Mobile Industry Predictions Personalization will become a widely adopted in 2015, leading to the growth of 1-to-1 marketing. No one likes irrelevant content. A marriage of rich media and personalization will become the much desired norm as deep engagement will be key. This coming year will give way to the rise of personal marketing. Mobile apps will be seen as tools of the enterprise. In 2015 apps will no longer only seen as broadcast mechanisms aimed at a public audience, but rather as as essential tools with specific purposes targeting a certain group of people. “Phablets” will drive roughly 30% of North American mobile traffic by end of 2015. Between September 2013 and 2014, North American smartphone-based web traffic driven by users of 5-inch or larger devices grew from 6.9- 17.9%-- over 150% increase. By the end of 2015, we can expect 1/3 of all continental smartphone web usage to be driven by these devices. More mobile video. Most people already use their smartphones and tablets to stream video. The popularity of viewing videos via handheld devices will surge– at least by 50%, in 2015. Video is progressively overtaking other tactics online, and as rapidly as mobile is growing, mobile video is growing with it.
  16. 16. Mobile App Predictions Appification. Apps are becoming essential tools to serve larger overall objectives. More so than ever, apps are being created for designated purposes to address specific needs. This nuanced change is opening the door to a larger more specialized market tailored to needs. Apps will be used for marketing at a heightened level. Alongside the web and social media, mobile will bring unique qualities to marketing campaigns. Targeted data along with personalization will allow marketers to leverage things like location, photo- sharing and messaging to build more engagement and push the idea of mobile moments, immediate context. Mobile and web will merge in 2015 like never before driven by personalization and utility. 2015 will see apps that are more: • targeted • plentiful • focused on communication • integral to marketing
  17. 17. The Rise of Low Code Development What are low code solutions? Platforms that enable rapid application delivery with a minimum of hand-coding, and quick setup and deployment, for systems of engagement. Why is it gaining traction in 2015? As of now this exists but little to no people realize it’s value. The value of a low-code development platform is that it brings IT and the business together, allowing for more rapid, iterative and collaborative development. Applications can quickly be built, seamlessly deployed and easily altered—there is no need for low-level coding. For enterprises seeking to scale their B2E applications, low-code platforms will be the go to solution, alongside both native development and cross-platform means. Businesses that seek a faster and cheaper way to deliver applications will increasingly turn to low code for solutions in 2015.
  18. 18. Wearable Tech Will Be Commonplace By the end of 2015 the majority of wearables will be priced under $50 and become commonplace commodities. Wearables has been a hot topic, and the high-end Apple Watch’s arrival in 2015 will be met with much anticipation, hype and media attention. However, much like we saw with the Walkman and then MP3 players, wearable technology will increasingly become mainstream and commoditized. The Internet of things will create a new kind of environment and marketers will have to keep up with its rapid development in order to stay in touch with changing needs. We expect the market will only be able to support a few high-end wearables, and these will let you leave your phone and computer at home for days.
  19. 19. Mobile Industry: Beacon Technology Beacons are low cost hardware that utilize low-energy Bluetooth (BLE) to connect delivering signals, data, and messages directly to a smartphone or tablet. This method of reaching consumers is becoming more prevalent due to its heightened accuracy over GPS, WiFi or NFC. Because BLE is compatible with an estimated 570 million smartphones, beacons will continue to transform how retailers, event organizers, and businesses can use location based targeting to engage with customers in the coming 2015 year. We will see a massive increase in beacon usage. There will be 4.5 million active beacons overall by the end of 2018, with 3.5 million of these in use by retailers. Ad spending on location targeted ads will grow from the current 4.9 billion to more than 15 billion in 2018. FDG and our FreshBeacon technology has already been implemented in the Miami Dolphins Stadium, and are currently in the process of attaining several more. As beacons grow in popularity, FDG will be at the forefront in this growing field.
  20. 20. The rise of in-store beacons, sensors and tracking technologies will result in significant increase in the number of retailers tracking new types of in-store metrics. Retailers will continue to create more immersive experiences for their shoppers. Beacons have the real potential to take collected data and create a more engaged experience between store and shopper. Discounts being pushed to users will be a norm and perhaps expected for shoppers entering the store. Half of the top 100 retailers in the U.S. have tested beacons this year, this will be installed in one-third of their store locations by the end of 2015 and by 2019 60 million beacons deployed in US stores. Beacons in Retail
  21. 21. Almost all attendees bring their mobile phones to events, with 76% in 2014 engaging on their device. FDG believes that the amount will only increase, companies will utilize this excellent opportunity to implement beacon technology for location based targeting. With beacons, sporting events will have an added level of engagement. This will enable fans to check into the game, receive exclusive stadium offers, find the quickest routes to their seats and get the latest game and team content. Check the Score Find Your Seat Coupon Deals Beacons at Events
  22. 22. Where to Find Mobile Beacons: 2015 Although popularity in beacon technology has a bright future in retail and sports arenas it will also start gaining traction in: • Museums and zoos. Stand-alone audio narration devices are commonplace, but they’re costly and inconvenient. Beacons will lower cost and eliminate need for users to carry additional equipment, and in-app purchases could enable site operators to continue to generate additional revenues by forwarding information about upcoming events. • Hotels and restaurants. Upscale hotels are already utilizing beacon technology to automatically check in guests as they walk into the building, unlock doors to their rooms when within a certain proximity, and find their way to the nearest on-site bar or restaurant. • Amusement parks. Beacons will give real-time information regarding the wait times for nearby rides on top of greeting visitors at the entrance and delivering information such as the day’s event schedule. • Mass transit. Beacons will be invaluable in airports, subway stations and other mass transit centers. They will not only serve as a navigation guide for unfamiliar travelers but alert users on a certain concourse or platform about canceled flights or train delays.
  23. 23. • With 2014 as the year of leaked nude celebrity photos, in addition to the Sony Pictures Hack, there is a pressing concern for invasion of privacy in the mobile and digital space. • 58% now say that they are concerned about the internet eroding their personal privacy. • Digital consumers are taking direct and pro-active steps to safeguard themselves by deleting cookies, using private browsing windows, and the use of Virtual Private Networks (VPNS) and Proxy Servers. • Currently, older segments are most concerned about their online privacy, whereas younger segments are the most active in protecting themselves. Taking Our Privacy Back
  24. 24. Digital Industry Predictions Digital Advertising Predictions Mobile Industry Predictions Mobile Advertising Predictions Social Media Marketing Projections
  25. 25. Mobile Advertising Predictions Brands will tap into the power of medium as an advertisement tool. We will see much more sophisticated and creative collaborations in 2015, as content creators build audiences that rival those of pop stars and brands grasp just how powerful a advertising tool this can be. Your stories will be everywhere. In 2015 there will be a big push towards trans-media storytelling. Rather than crafting a story for an isolated viewing experience, like a blog post, a billboard or a Tweet, advertisers will design stories that are pieced together across different media, with a focus on mobile. U.S. digital ad revenues will be mobile centric in 2015 with mobile ad spending up 77%.
  26. 26. Mobile Advertising: Importance of Rich Media & Creative By the end of 2015, ads will be very different from the ones we see today. The ability for brands to add rich media to their existing ad campaigns will only enhance and offer a new venue for reaching their intended audiences. Companies will adapt to incorporate native, fun and interactive features to instill the app experience with a sense of engagement that will keep users interested and coming back. Rich Media will remain one of the best mobile advertising trends for 2015. These ads will focus on achieving increased engagement, getting leads, as well as, increasing sales volumes. Personalization will need to be enhanced in order to reach the everyday consumer. It not only is expected but demanded by the audience to better know them and what they would want. With an increase in marketing noise, marketers need to use creative to boost visual storytelling as a medium to help their message stand out, be more engaging and send a clear message about the brand. Luxury brands will have to use this avenue of reaching new consumers given the rise of rich media click-throughs in wealthier populations. If luxury brands want modern customers, they will need to update their marketing strategy. Mobile users want information delivered to their phones in a convenient and personalized way. They increasingly expect devices and apps to anticipate their needs. It is imperative to understand customers’ personal goals and emotions to craft brand messages that convey personal value.
  27. 27. Mobile Advertising Predictions Creative will up its game to new heights. Rich media ad units have seen a 216% growth from year-to-year and this trend will continue into the coming year. Mobile is surpassing any other device on click-throughs. Visual Storytelling Will Go Wild Due to the increase in marketing noise, marketers need to find a medium that will help their message stand out from the crowd. The answer? Visual storytelling. This tactic will be employed to communicate the brand’s philosophy and aesthetics by engaging and nurturing consumer communities. Videos on Mobile The demand for personalized videos will drive the intent for companies to produce these. Marketing is no longer about campaigns that take months to create, long shelf lives is not the goal, it is archaic. The beauty of video ads are the shortness while still allowing the footprint of what was watched to linger.
  28. 28. Mobile Advertising: Mobile Gaming Gaming will remain the number one type of mobile app people download in 2015. Moreover, mobile is expected to become gaming’s overall biggest market this coming year. Advertisements in games can be targeted directly the right people, so the ad is actually relevant to the person’s interests. Games will be a massive asset for data collection and will allow the development of new content. At least 2/3 of mobile gamers check price or read reviews on their phones while in store. Brand advertisers are currently spending just 20% of their budgets on mobile now, but by 2018 that share will increase to 35%. The mobile game business is expected to surpass console games in revenue in 2015 as mobile gamers each year are getting younger. We expect mobile games will hit $30.3 billion in 2015, up from $25 billion in 2014. By 2017, mobile games are expected to top $40 billion.
  29. 29. Digital Industry Predictions Digital Advertising Predictions Mobile Industry Predictions Mobile Advertising Predictions Social Media Marketing Projections
  30. 30. Social Media Marketing Predictions The rise of Ello- Ello, which is still in public beta (invite-only,) has been mounting in interest. Ello offers a forever ad-free experience and promises to never sell its users’ information to third parties. Though engagement on the platform does not seem to be high at this point, Ello is primed to grow in 2015, both in terms of numbers and engagement. This is one to watch. Facebook ad pricing and demand will significantly increase. As Facebook continues to limit the number of posts page fans see, the demand for promoted posts and ads will continue to increase. A trend of increased pricing since 2013 is likely to continue into 2015 as organic post reach continues to diminish, this will lead to an increased demand and ultimately increased pricing Google+ will further lag behind Twitter, LinkedIn and Facebook. With the failure of Google’s Authorship experiment, Google+ no longer brings unique value given that most don’t realize with the creation of a gmail this is also created. We will be taking our Privacy back. The time for broken boundaries has passed. Educated consumers will continue to refuse using applications and sites that want too much personal information and companies should pay close attention to this blurred line.
  31. 31. Social commerce: FB + Twitter Facebook will remain the primary platform for users in 2015 and will continue to drive massive amounts of daily traffic while remaining the best in shopping influences. Facebook users can expect a new “Buy button” allowing them to make purchases on a platform native to Facebook. In addition, expect less ads and promotions! Facebook will begin to allow users to control the ads they see, even allowing users to opt out of viewing ads completely. In 2015, we also expect Twitter to have it’s own “Buy button” along its side tweets and posts, bringing online sales to new highs by eliminating the hassle of searching for your purchases online. As Twitter rolls out new shipping and payment options, it will become a contender with commerce heavy weights Amazon and eBay. Twitter itself has an advantage against Facebook because filtering is an option to gear feeds specific to each user offering convenience of purchase right from Twitter. 2015 will see a deeper integration of e-commerce and social media, due to social media power players Facebook and Twitter. This has been an escalating battle between the two and will only intensify further coming into 2015 as both are envious of features the other offers. Social Media Marketing Predictions
  32. 32. Facebook = Digital Media Powerhouse Facebook will keep increasing their dominance as a digital media powerhouse in 2015. Facebook has been on a spending spree, shelling out billions of dollars on both small and large companies that it will either fold into its umbrella or tap to improve experiences. Facebook has acquired up around 50 companies since 2005, and most of them are considered talent acquisitions. The biggest purchases however - including Instagram, WhatsApp, and Oculus VR - are some of the most notable exceptions, because Facebook plans to use them for global and mobile dominance. In 2015, Facebook will push forward with its digital media expansion and increase its media impact through mobile and digital execution. Facebook’s Multifaceted Reach
  33. 33. Social commerce: Instagram + Snapchat The number of Instagram users has surpassed that of Twitter and it is projected to grow at least 15% in 2015. More opportunities in brand engagement will occur, especially in direct messaging, where coupons or promo codes can be sent directly to followers. Instagram will bring the shopping experience to a new level by making links clickable under posts to direct commerce traffic and increase their product placement. Snapchat has recently rolled out Snapcash, a convenient person-to-person payment platform powered by Square. Built in to Snapchat’s direct messaging system, Snapcash is used to send money from a user’s bank account to friends also registered with the program. Snapcash partners with major events like NCAA Football, Oktoberfest or The World Cup to become a ticket sales platform allowing the purchase of tickets through Snapchat in 2015. Social Media Marketing Predictions
  34. 34. In 2015, Yik Yak has a chance of bringing marketing opportunities to local small businesses through events, special in-store deals, and product information promotion. This will eventually move up to larger corporations. Having launched in November 2013, Yik Yak had 100,000 users by Februrary 2014 and proceeded to raise $61 million in funding soon thereafter. We expect this latest messaging app to take the social media world by storm in 2015. 35 Social Media Marketing Predictions Yik Yak next? Yik Yak, also known as the “local anonymous Twitter” lets unknown users share their voice according to their location. Yik Yak is the first location-based social platform and is especially popular among college students.
  35. 35. Twitter’s new business advertising model will skyrocket in popularity. With Twitter’s move to offering businesses more choice and flexibility in how and what they pay for in terms of advertising, more small and medium sized businesses will join Twitter. The new fee structure allows businesses to pay for certain performance-based actions rather than just retweets or clicks. These campaigns will be particularly appealing to small business owners who want to pay for results, not just for brand visibility. Instagram will become essential for image-based social media marketing. Instagram will also continue to grow in the micro-video space. With both Vine and Instagram vying for billing as the top video networking site, the platforms have continued to differentiate themselves from the other offering dissimilar features, video lengths and editing capabilities. However, it is likely we will see Instagram begin to outpace Vine as we enter 2015 by removing unpopular filters and adding newer ones. LinkedIn will widen the gap as “the” B2B social network. For the B2B crowd: 88% of B2B marketers are using LinkedIn, compared to 89% for Facebook and 86% for Twitter. B2C marketers, on the other hand, report LinkedIn as being significantly less important than Facebook or Twitter for their marketing efforts. We believe 2015 is the year LinkedIn will surpass Facebook for B2B marketing. Social Media Marketing Predictions
  36. 36. Digital Industry • Wearable technology will change behavior • Big Data and advanced analytics will drive everyday marketing decisions • Beacons will be used in the retail and event setting • IoT offers the opportunity to develop a system of products rather than stand-alone • Second Screen will drive creative execution that has value at the opportune time Digital Advertising • Digital advertising will outpace TV in the coming years • Working with multiple programmatic partners will become the norm • Augmented reality will grow • Brands and agencies must specialize omni-device targeting • Traditional ad networks will become outdated with a shift to programmatic • Programmatic TV will be utilized for more personalized advertising Key Takeaways: Digital
  37. 37. Mobile Industry • Apps will again be viewed as app utility will enter the fourth inning of progression • Apps will be used for marketing to leverage things like location, photo-sharing etc. to build more engagement through personalization • The frequency of communication is important to maintain user engagement no matter the audience size Mobile Advertising • Rich media will continue to be a major factor in mobile advertising as user experience is critical in capturing and sustaining their attention • Gaming will be a new platform to boost sales with targeted content Social Media Marketing • Facebook and Twitter’s ad pricing and demand will significantly increase • Instagram will become the leader in image-based social media marketing • LinkedIn will be considered the favorite go-to social network for B2B Key Takeaways: Mobile and Social Media
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