Martech and the terribly complicated future of marketing

Martech and the terribly complicated future of marketing
the terribly complicated, needlessly technical future of marketing
Agenda • Energetic introduction • How brands are made • How brands are managed • Digital transformation • Microservices and APIs • Vertical competition • Digital everything • Artificial intelligence • Response from the Industry • Long-winded conclusion
A look at the impact of emerging technologies on the business of marketing
https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
How brands are made
CX and brands With all of this available choice, brands have never been more important—or more easily tuned out by customers. While the primary value of firms in the industrial age was derived from how well they managed hard assets such as factories, product lines and distribution channels, the information age rewards and punishes firms based on how well they manage brands. The path to 2020: Marketers seize the customer experience (Economist 2017)
How did we get here?
Behaviour trends Digital Democratisation Trend: As people globally have gained greater access to internet (primary driven by mobile) they also have greater access to the best digital experiences and services e.g. Facebook, Google, Apple, Uber. These tech giants have created an expectation for all brands to offer similar digital experiences Euromonitor 2017: Introducing the 2017 digital consumer index
Behaviour trends Increase in Consumer Power Trend: Access to more information has created a more critical, selective and powerful consumer. Brands no longer have the power to influence an audience, rather they look towards other more trusted sources such as independent car reviews, peer recommendations and social chatter Euromonitor 2017: Introducing the 2017 digital consumer index
Behaviour trends Required Consumer Centricity Trend: Connected consumers have access to the products and services when, where and at a price that suits their needs. Due to this access, we must adapt our brand to the context of the consumer, where the consumer makes the call of when they need the brands input in their journey Euromonitor 2017: Introducing the 2017 digital consumer index
Behaviour trends Connected through Internet of Things Trend: Due to the rising number of internet connected devices and the lowering of the costs these devices, people now have many more ways of connecting to brands and services. This increases the utility and lowers the friction within an ecosystem Euromonitor 2017: Introducing the 2017 digital consumer index
Behaviour trends Frictionless Consumption Trend: Consumer behaviour is shifting towards not wanting to search for relevant information but having it curated for you and brought to you Euromonitor 2017: Introducing the 2017 digital consumer index
Empowered customers Customers typically show up at a brand’s front door—physical or virtual—already well-educated about what a brand potentially offers them. This changes how you position marketing resources and assets. “ You’re no longer marketing AT people,” “You’re influencing them in an environment where they’ve already had a chance to form a view.” The path to 2020: Marketers seize the customer experience (Economist 2017)
How brands are managed
5 digital disruptions expected 1. Digital transformation 2. Microservices & APIs 3. Vertical competition 4. Digital everything 5. Artificial intelligence https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
digital transformation
Consumer digital transformation is mirrored by internal digital transformation
Their whole end-to-end experience is the product The five things that make this transformational are: • All of these touchpoints are either digital or digitally-supported. • Orchestrating these touchpoints is inherently a cross-organizational mission. • Marketing is increasingly at the center of that orchestration. • Marketing is embedded in the product (and, vice versa, product in the marketing). • The resulting end-to-end experience for customers is how companies are disrupting their competitors — e.g., Uber isn’t the car ride, it’s the whole seamless experience. https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update While every touchpoint clearly has its own characteristics and requires its own expertise there needs to be a common foundation underneath them all: •Experience Design — concepts and principles that span all touchpoints for the brand •Systems & Services — common functionality and orchestration across all touchpoints •Data & Models — underlying data, normalized for customers and business operations This is more about platform thinking. Platforms in the sense of common technology foundations and organizational principles that many different things can be built upon
CMOs and the Spark to drive Growth (Deloitte 2017)
A digital world demands a digital company
microservices & API’s
As more systems talk to one another, more opportunities for digital enablement emerge
The mash-up possibilities of APIs have inspired an explosion of innovation. Partners and customers can now leverage these machine interfaces to businesses to drive their own digital transformation https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
This is digital transformation in a company’s internal ecosystem
vertical competition
The competition for the consumer is accelerating and consolidating
https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update The most powerful “competitor” in vertical competition is one who has an exclusive gateway to the customer. If you want to reach customers through their channel or touchpoint, you must agree to their terms — or forgo access.
https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update battle for the consumer For a large scale example of vertical competition dynamics in digital channels, look at the incredible power wielded in the Chinese Internet market by Tencent, Alibaba, and Baidu. They control the interface — and data — of the vast majority of consumers in that market. Marketers who want to reach those buyers digitally, must do it through their marketing solutions, such as Alibaba’s Uni Marketing suite or One Tencent’s integrated marketing services.
battle for the consumer The most common Western example is the duopoly of Google and Facebook in digital advertising. 63.1% of all advertising dollars in the US went to those two companies — and their portfolio of sites, such as YouTube and Instagram. https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
Facebook is also getting ahead of most the major trends media and marketing analysts see as shaping the future of content. Facebook already dominates the messaging app marketplace with Messenger and WhatsApp. Same goes for digital video, which has exploded on Facebook’s native video player (though not without controversy). With Facebook M, the company is a major player in the AI arms race. Facebook also announced plans for a platform where developers can build bots for Messenger. The last part of that dominance is augmented reality and virtual reality. Facebook has the Oculus Rift; Gear; and these unnamed AR Glasses, which essentially look like Google Glass. https://contently.com/strategist/2016/04/12/facebook-plans-dominate-digital-communication-next-10-years/
A recent entrant Amazon is making brazen new moves into self-serve programmatic advertising. Amazon’s pitch to brands and agencies is that it is able to create a “total wallet” perspective — actually figure out what people are searching for with what they’re buying. https://thenextweb.com/contributors/2018/07/01/inside-amazons-plan-to-dominate-advertising-business-in-2019/
The gatekeepers will become an even more important channel in our marketing mix. Figuring out how to work with the gatekeepers to make sure our content breaks through the algorithm will be a key concern moving forward.
Vertical competition opens up more integrated client interfaces but also create walled gardens
we’re exactly half-way, sorry not sorry.
we’re exactly half-way, sorry not sorry.
digital everything
The places where brands are made and how they need to be managed continue to increase
https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update (Statista 2017)
This creates a challenge for managing our brand building efforts
• Web — must work on desktop/laptop, tablet, smartphone, etc. • Mobile — native apps, SMS (not dead yet!), AR/VR experiences, etc. • Beacon — triggered and geolocation-based mobile experiences • Chatbots — screen-based and voice-based, across a variety of devices • Wearables — smart watches and more purpose-specific wearables • AR/VR glasses and headsets — from Google Cardboard to Oculus and HoloLens • Connected TVs — with an explosion of OTT content and services • Connected cars — Android Auto and Dash are two platform examples • Digital out-of-home signage and digital kiosks — including augmented reality features • APIs as a digital interface for citizen developers with tools like IFTTT • New point-of-sale experiences — Amazon Go is an example of how far this can go https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
conversational interfaces Chatbots are a much more functional kind of marketing — offering consumers service and utility — as way to reach consumers, rather than advertising. But a good chatbot makes it easier for consumers to get what they want from a business on demand — information, support, and increasingly even purchases. Indeed, 2/3 of US millennials say that they are likely to purchase products or services using a chatbot. https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
The development of virtual assistants will enhance the customer experience by reducing search times and personalising purchases. At the same time, the search control of gatekeepers will grow, consolidating their traffic acquisition power, giving them greater access to consumer data and enabling more precise consumer targeting. Travel distribution - The end of the world as we know it?
More client interfaces opens up opportunities for “data first” or “service first” design, creating new ways to bring our brand to life
artificial intelligence
AI grows the speed and complexity of the business
A recent study by Resulticks found artificial intelligence to be the most over-hyped term in marketing today. https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
https://www.smartinsights.com/managing-digital-marketing/managing-marketing-technology/opportunities-using-artificial-intelligence-sales-cycle/
Artificial intelligence Most of the use cases they describe are powered by one of three kinds of AI: 1. Machine learning 2. Propensity modeling 3. Natural-language processing (NLP) Where things get interesting with chatbots — their differentiation and competitive advantage — is in the “actions” and “information sources” pieces of the equation. What data and services are unique to your business? That’s where AI shines. This can’t be overemphasized: https://chiefmartec.com/2018/01/5-disruptions-marketing-part-4-digital-everything-2018-update
http://raabassociatesinc.com
AI applications 1. Search 2. Recommendation Engines 3. Programmatic Advertising 4. Marketing Forecasting 5. Speech / Text Recognition https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI: search Advanced search technologies are now relatively mainstream, allowing any small eCommerce stores to have search that goes beyond simply matching keywords Data-as-a-Service companies make it easier than ever to draw from search data from other larger sources Software to detect common misspellings is now more commonplace https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI: recommendation engines A recommendation engine can pull from reams of nuanced data in order to draw conclusions from behaviors, actions and other inputs. Netflix isn’t merely taking into account what movies a person has watched, or what ratings they give those movies – they’re also analyzing which movies are watched multiple times, rewound, fast-forwarded, etc… These myriad behaviors, when correlated and assessed over millions of other users, help to coax out the best recommendations. https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI: programmatic advertising Programmatic ads bring a tremendous amount of efficiency to bear on the “inventory” of website and app viewers. Platforms like Google and Facebook have set the standard for both efficient and effective advertising, https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI: marketing forecasting One of the most straight-forward marketing applications of business intelligence data lies in it’s ability to aide in predictions, a capability much enhanced by developments in AI. Because of the (generally) high volume and quantifiable nature of marketing data (clicks, views, time-on-page, purchases, email responses, etc…), models can often be trained to help companies continuously improve marketing efforts https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI: speech recognition While chatbots and natural language processing haven’t made their way into the marketing departments of most businesses, the applications from the largest and hottest tech companies are making it clear that there’s a bigger trend ahead. https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI opportunities 1. Image Recognition - “search” for products (or similar products) by snapping a photo 2. Customer Segmentation - optimize communications by continually learning from user behavior 3. Content Generation - a significant portion of sports and finance-related articles are written by machines, not by humans. Expect more of that. https://www.techemergence.com/artificial-intelligence-in-marketing-and-advertising-5-examples-of-real-traction/
AI grows the speed and complexity of business, it powers more interfaces which collect more data
response from the industry
67% of CMOs interviewed reported a cross-organizational mandate on growth and/or customer experience. The path to 2020: Marketers seize the customer experience (Economist 2017)
The path to 2020: Marketers seize the customer experience (Economist 2017)
Technology Is Critical To Customer Obsession As touchpoints multiply and customer addressability increases, B2C marketers must use marketing technology to understand a customer’s context at the time of interaction. Make strategic tech investments that emphasize the integration of data, content, and work ows to deliver consistent, targeted customer interactions throughout the customer journey.
Technology Maturity Derives from Customer Insights Marketers must embed customer insights into their marketing technology and processes. Why? Building a mutually beneficial relationship with a customer depends on a firm’s ability to capture, integrate, analyze, and act on customer insights in context.
The rise of the marketer 86% of CMOs and senior marketing executives believe they will own the end-to-end customer experience by 2020. Interviews reveal that from now through 2020, CMOs will reorganise their departments around personalised customer experiences as a core strategy for creating and growing the value of brands. The path to 2020: Marketers seize the customer experience (Economist 2017)
overall, a tougher gig
broader interest Today, the primary task of CMOs is to deeply understand • Customer buying behaviour and intent, • The context of where someone is in their decision journey; • Be able to predict what they’re most likely primed to do next; and • Be ready to influence them at the right moment. By 2020, more marketers expect they will interact directly with their customers through technology and personalisation than interact indirectly with their customers through media and advertising. The path to 2020: Marketers seize the customer experience (Economist 2017)
CMOs and the spark to drive growth (Deloitte 2018) • Chief storyteller, navigating the path to bridge the brand with the business. • Key stakeholders in technology stack innovation broader roles
CMOs and the spark to drive growth (Deloitte 2018) broader skillset Combined with well-honed skills in brand and content, intelligence is creating the foundation for marketers’ growth plans, but in order to evolve and accelerate, marketers should add to this list, taking the opportunity to add new skills to enhance the growth agenda.
Technology excellence is closing the gap as a top strategic marketing goal from now to 2020 The path to 2020: Marketers seize the customer experience (Economist 2017)
The path to 2020: Marketers seize the customer experience (Economist 2017)
Combining operational with technical skills The survey and interviews show that a greater portion of a CMO’s success is starting to hinge on developing and maintaining a single, best version of customer truth for the entire organisation to use. At the same time, CMOs are in the midst of reorganising their departments around data and analytics as much as content and media channels. The path to 2020: Marketers seize the customer experience (Economist 2017)
The new model for brand building is not based solely on a “Big Idea” More CMOs are focused on data and analytics- fuelled “Big Capabilities”
hang in there, we’re almost done
long-winded conclusion
The future of marketing is good storytelling built on technological expertise
How are we going to manage growing number of consumer experiences? New technologies, new platforms, new ways of sharing, new businesses, new expectations.
How do we build for the AI economy? What is our goals with data, what do we need to operationalise it for AI?
How do we manage our tech investments? What do we invest in, at the expense of what?
Thank you

Martech and the terribly complicated future of marketing

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