Please join us for this webinar featuring eMarketer Principal Analysts David Hallerman, Debra Aho Williamson and Noah Elkin. To get you ready for the upcoming year, they’ll be covering a variety of topics including digital advertising, social media, mobile devices and platforms, video, and digital audience, content and commerce.

1. D E C E M B E R 1 5, 2 0 1 1
N E W Y O R K, NY
Presented By:
Key Digital Trends
Noah Elkin
David Hallerman
Debra Aho Williamson
for 2012
Principal Analysts,
eMarketer Inc.
Sponsored by:
©2011 eMarketer Inc.

2. A Virtuous Cycle:
Trends in Device
Adoption, Consumer
Behavior and Content
Noah Elkin Availability
@noahelkin
©2011 eMarketer Inc.

3. A perfect storm of opportunity is brewing
for digital marketers
Image courtesy of Morse87/Flickr ©2011 eMarketer Inc.

4. Technology
adoption is
accelerating
rapidly,
raising
consumer
expectations
about
content
delivery and
accessibility
©2011 eMarketer Inc.

5. Pace of
change in
consumer
behavior is
even greater
in large
emerging
markets,
such as the
BRIC
countries
©2011 eMarketer Inc.

6. Forecast: Cloudy, with a chance of…
music
Image courtesy of PhysicalGeography.net ©2011 eMarketer Inc.

7. 2012 will be the year cloud-based
streaming gets a full test
©2011 eMarketer Inc.

8. What it means: finding the opportunities
that exist in today’s technology stack
• Communication
Activities • Media consumption
• Commerce
• Facebook
• Twitter
Platforms • Amazon
• Netflix
• PCs
• Smartphones
Devices • Tablets
• Over-the-Top
Twitter: #eMwebinar ©2011 eMarketer Inc.

9. The Check-Ins Begin
to Check Out
©2011 eMarketer Inc.

10. Awareness
of location-
based
services has
surged, but
usage is still
far from
mainstream
©2011 eMarketer Inc.

11. Finding deals is a bigger motivator for
using geolocation than gaining status
©2011 eMarketer Inc.

12. The next wave in location revolves
around enabling commerce
 Lots of attention on time-sensitive deals. But an
open question remains: Are daily deals good deals for merchants? Or
are they giving away the store?
 Growing emphasis on generating loyalty. Local
merchants and national brands alike recognize that customer
acquisition needs to be balanced with customer loyalty.
 Ad dollars will follow shoppers. The combination of
location, mobile, social and commerce will form a potent force in the
advertising market.
Twitter: #eMwebinar ©2011 eMarketer Inc.

13. Usage of
mobile
coupons is
modest
but growing
rapidly,
driven by
smartphone
owners
©2011 eMarketer Inc.

14. Consumer
interest in
mobile wallet
services is
growing, but
the value
proposition
is not yet
clear
©2011 eMarketer Inc.

15. Forecasts agree on mobile payments
growth, but not on how much money is on the
table
$670B
(2015)
$556B
(2016)
Juniper
$246B (July 2011)
(2011) visiongain
(Aug 2011)
Yankee Group
$86.1B (July 2011)
(2011)
Gartner
(July 2011)
Note: figures above are worldwide
Twitter: #eMwebinar ©2011 eMarketer Inc.

16. The last mile is always the longest,
hardest … and most expensive
Image courtesy of Lubos Brieda

17. Advertising and
Marketing in 2012
David Hallerman
@dhallerman
©2011 eMarketer Inc.

18. Key trends for digital advertising in
2012…
 Magnetic content: attract rather than
distract, engage rather than intrude
 Video leads the way: brand advertising
follows sometimes traditional, sometimes
interactive paths
 Programmatic buying: efficient and
effective for display advertising
 Privacy concerns: will become
increasingly central to digital marketing
Twitter: #eMwebinar ©2011 eMarketer Inc.

19. Magnetic Content
©2011 eMarketer Inc.

20. What blurs the line between
advertising and content?
Magnetic content, which can be…
…branded videos
…interactive games
…mobile apps
…digital contests
…any method that attracts as it promotes
Twitter: #eMwebinar ©2011 eMarketer Inc.

21. Magnetic
content
often blends
channels
and methods
to reach the
audience
seamlessly
across
platforms
©2011 eMarketer Inc.

22. Branded
social
pages help
mix the
message
with a call
to action,
such as
discounts
©2011 eMarketer Inc.

23. Branded
apps are a
prime form
of magnetic
content
©2011 eMarketer Inc.

24. Viral video is ―classic‖ magnetic
content—and is used more and more
©2011 eMarketer Inc.

25. Magnetic content can bypass consumer
dislike for advertising and engage them
“The ad is yesterday. Content is the future.”
—Oliver Newton, head of emerging platforms,
Starcom MediaVest
“You’ll start to see us—and in general the
industry—move away from just the static push
advertising to more engaged conversations.”
—Scott Kelly, digital marketing manager, Ford
Motor Co.
Twitter: #eMwebinar ©2011 eMarketer Inc.

26. Video Leads Online
Ad Growth
©2011 eMarketer Inc.

27. Spending for
online video
advertising
in 2012 will
pass the $3
billion mark,
growing
faster than
any other
online ad
format
©2011 eMarketer Inc.

28. Better reach
will be the
main factor
leading
toward more
video ad
buys
Twitter: #eMwebinar ©2011 eMarketer Inc.

29. And better reach will come from the
rapidly growing online TV audience
©2011 eMarketer Inc.

30. 63% of publishers see in-stream video
generating the most ad revenue in 2012
©2011 eMarketer Inc.

31. As online video becomes more
established, new layers will be added
©2011 eMarketer Inc.

32. Programmatic Buying
for Display Advertising
©2011 eMarketer Inc.

33. Ad inventory options: old ways and
new methods
 Publisher direct (premium)
 Ad networks
 Ad exchanges
 Private exchanges
 Demand-side platforms (DSPs)
 Real-time bidding (RTB)
Twitter: #eMwebinar

34. Publishers
extend their
sales reach
by putting
inventory on
exchanges
or other
real-time
platforms

35. What is a private exchange?
 Marketplace in which one large publisher sells
inventory based on its segmented user base
 While many are a single publisher, some are
small, related groups of publishers
 Also can be large groups (ex:
QuadrantOne, which sells inventory from
hundreds of newspaper sites)
 Often fueled using RTB technology
Twitter: #eMwebinar

36. Nick Johnson, senior vice president, digital
media sales, NBC Universal
“If advertisers want to
come in, we’re selling
them the network.
We’re not selling them
placements; we’re
selling them people.”

37. What is a demand-side platform
(DSP)?
 System for managing multiple ad exchange
accounts using a single interface
 Lets marketers integrate outside data directly
into DSPs for buying via RTB methods
 Prime example of programmatic buying
 Trading desks are essentially in-house
agency DSPs
Twitter: #eMwebinar

38. Significant share of those considering a
DSP say it will be a part of their efforts

39. What is real-time bidding (RTB)?
 Component of a DSP, ad exchange or network
that lets buyers use their own data and
targeting options to bid for each ad impression
 Gives marketers a controlled environment
for buying ad inventory and optimizing costs
 Fueled by a wealth of data, such as IP address,
geolocation, current site user is viewing, ad unit
size and format, time of day, user profile
 Based on instantaneous auctions (duh!)
Twitter: #eMwebinar

40. RTB’s share of display spending is still
small, but growing rapidly

41. Programmatic buying: can be more
effective, but control is a concern

42. Privacy Concerns:
Real and Growing
©2011 eMarketer Inc.

43. Internet
users
regularly
contradict
themselves
about
privacy
concerns

44. Is the privacy debate outdated? Or is
the concept of privacy simply changing?

45. The vast
majority of
consumers
simply want
to know
what data is
being
collected, a
form of
control

46. When it
comes to
data, control
and
knowledge
are essential
for at least
half of
consumers

47. Interesting
that ―only‖
59% of
internet
users say
government
should be
responsible
for
protecting
their privacy

48. Which players should be responsible
for protecting user privacy?
 Advertisers and agencies?
 Online publishers and retailers?
 Search engines?
 Trade groups, such as the IAB?
 Privacy vendors, such as TRUSTe or Evidon?
 Other ad-infrastructure vendors, such as ad networks?
 Browser makers?
 Operating-system creators?
 The government?
 Users themselves?
Twitter: #eMwebinar

49. Two basic ways the ad industry is
responding to privacy challenges
 Transparency: here is what we’re
doing and why we’re doing it
 Trade-offs: here is something of value
in exchange for your time, attention and
data
Of course, transparency itself is
a form of value—knowledge and
control help create trust
Twitter: #eMwebinar

50. Trends in Social Media
Marketing
Debra Aho
Williamson
@debrawilliamson
©2011 eMarketer Inc.

51. Social Network
Audience: 66% of US
Internet Users in 2012
©2011 eMarketer Inc.

52. Two-thirds of US internet users will use
social networks in 2012
But the
pace of
growth will
be less
dramatic
over the
next few
years.

53. Asian, Black and Hispanic populations
lead in usage
Twitter: #eMwebinar

54. Social Network Ad
Revenues: Still Rising
©2011 eMarketer Inc.

55. Worldwide social network ad revenues
will pass $8 billion in 2012

56. Facebook will have $5.8 billion in
advertising revenue in 2012

57. Facebook trends to watch in 2012:
 Privacy. The FTC agreement doesn’t mean
Facebook’s privacy challenges are over. There will be
more attention than ever on how Facebook uses its
members’ information.
 Ad revenue. To keep ad revenues growing, the
company will spend more time evangelizing the
benefits of buying ads to support a Facebook marketing
presence.
 Mobile. Facebook needs to make its mobile platform
even better to attract international audiences. And
mobile ads are long overdue.
Twitter: #eMwebinar

58. Measurement: Moving
Toward Metrics That
Prove Business Value
©2011 eMarketer Inc.

59. CMOs need
hard
metrics to
support
social
media
spending
increases

60. Marketers
still
focusing on
measuring
fans rather
than
business
results

61. Top
companies
want to
gain more
consumer
insights
and
develop
dashboards
and KPIs

62. How to get to the metrics that matter
Look at more
than branding
results
Don’t wait for
the silver bullet
success metric
Know your
business goals
Measure
(something!)
Be a leader in
the next phase
of social media
measurement.

63. Google+: Attracting
Marketer Attention
©2011 eMarketer Inc.

64. Google+ will draw marketer attention in
2012
 Google’s social network opened to brands in
November 2011. Consumers can add a brand to
their Google+ Circles. Brands can then do the same,
segmenting their audience into different groups.
 +1 button adds social actions to search. A
Google+ page can affect a brand’s search results, and
searching on Google for “+[Brand]” takes the user
directly to the company’s Google+ page.
 Early usage trends have been up and down.
However, the size of the audience may be moot if
Google can create new ad products that blend social
and search.
Twitter: #eMwebinar

65. Adoption of Google+ Pages is promising,
with 61% of the top 100 brands there

66. Wrap-Up: 2012 –
Doomsday or Payday?
Noah Elkin
@noahelkin
©2011 eMarketer Inc.

67. London Olympic Games promise true
multiscreen opportunities
©2011 eMarketer Inc.

68. Digital is the new battleground state
©2011 eMarketer Inc.

69. 2012 presidential election and Olympics
will provide a short-term advertising jolt
©2011 eMarketer Inc.

70. Key takeaways
 Device adoption trends signal new imperatives for
marketers. Consumers’ approach is increasingly platform-agnostic.
 The line between advertising and content continues
to blur. Marketers are looking to bypass consumer dislike of advertising
through new forms of cross-channel engagement.
 Social networking remains in growth mode. Users and
ad revenues are on the rise; measurement is still evolving.
 Consumers’ mobile, social and shopping behaviors
are converging at the last mile. Brands need to understand
where location fits with their different touchpoints, from check-in to checkout.
 Privacy remains on the front burner for consumers
and marketers alike. Concerns are real and growing across online,
social and mobile platforms.
Twitter: #eMwebinar ©2011 eMarketer Inc.

71. CMO’s feeling overwhelmed…
IBM CMO Study finds that with a torrent of complexity, CMOs
feel unprepared for the amount of complexity they face.
Expected level of complexity and preparedness to handle
Percent of Global CMOs responding
© 2011 IBM Corporation

72. Overwhelmed with channels, devices, and social media
IBM CMO Study finds CMOs are underprepared for data explosion
and look to technology and analytics for help
Under-preparedness
Percent of CMOs reporting under-preparedness
© 2011 IBM Corporation

73. Better prepared CMOs more likely to succeed
IBM CMO Study finds that preparing for and dealing with your
marketing challenges can improve business success
Percent of CMOs reporting under-preparedness to manage market factors
Lower unpreparedness
correlated with out
performance
© 2011 IBM Corporation

74. How are you doing? Learn more with the IBM CMO
Self-Assessment Tool
Download the CMO Study for our Interactive
Marketing Resource Center at http://bit.ly/tg14Zr
© 2011 IBM Corporation

75. Key Digital Trends for 2012
Questions & Answers
Registrants will receive an email tomorrow that includes a link to
view the deck and webinar recording.
For more discussion, please join us after the webinar on Twitter.
To learn about eMarketer Total Access please visit www.emarketer.com/products
or contact us: (800) 405-0844 or webinars@emarketer.com
Presented by: Noah Elkin, David Hallerman
and Debra Aho Williamson
Sponsored by:
Principal Analysts, eMarketer, Inc.
Twitter hashtag: #eMwebinar