Marketing & Media Ecosystem 2010
CMO Roundtable Discussion
MME
2010
The Leaders
Characteristics of a Leader Marketing efforts increasingly in digital channels New media data widely leveraged Quantitative and analytical skills emphasized Predictive tools to capture insights and allocate the mix Experimental innovation fund in place Low organizational barriers and progressive culture More likely to be considered “digitally savvy”
% of Respondents
100% 90% 82% 80% 70% 60% 50% 40% 30% 20% 10% 0% 18%
Only 18% are Leaders
Leaders
Non-Leaders
MME
2010
Common Themes Marketing as Conversation Insight into Foresight Media: The New “Creative” Marketing + Math The Network Effect
MME
2010
Marketing as Conversation
Marketers shift to focus on media that offer a more direct & deeper connection
Decrease Spending Increase Spending Digital
Two-way
Mobile PR Events Direct Mail TV
One-way
Print Out of Home Radio
100% 50% 50% 100%
MME
2010
Marketing As Conversation: Leading Practices
Leaders are using two-way new media to have conversations with consumers as part of marketing
70% 60%
60% 53%
70%
Marketers are using consumers to get the word out – a majority believe advocacy in more important than awareness
64%
% of Respondents
50% 40%
49%
49%
49%
50%
40%
31% 30% 21% 20% 10% 0% 25%
30%
20%
10%
0%
Word of Mouth
Blogs
Social Networking
Leaders
Leaders
Non-Leaders
Non-Leaders
MME
2010
Insight into Foresight
Consumer Insights and Behavioral Targeting capability becoming more important to marketers
Consumer Insights Behavioral Targeting Brand Strategy Customer Marketing Partnerships PR In-house digital production Field Marketing Entertainment Marketing Event Marketing Sponsorships
0% 10% 20% 30%
82% 80% 71% 66% 60% 59% 49% 43% 39% 38% 32%
40% 50% 60% 70% 80% 90% 100%
% of Respondents
MME
2010
Insight into Foresight: Leading practices
Leaders are investing in cutting edge capabilities that enable them to gain insight and react to customers
100 90 80
Leaders – Have by 2010 Leaders – Have today Laggards – Have by 2010 Laggards– Have today
% of Respondents
70 60 50 40 30 20 10 0
36 21 39
42 27 27
42
52
42
36 33 21 30 21 27 6
15 18 9 9
Open channels for communicating with consumers
High flexibility for reacting to consumer needs
Formalized processes for integrating CI into products
Increased speed of insight generation
Dedicated group of ethnographers
MME
2010
Media: The New “Creative”
Creative takes a back seat; 2x as many say media partners are more important than traditional agencies
52% 52% 52%
26%
Media Company
Media Planning/ Buying Agency
Communications Planning Agency
Traditional Full Service Agency
MME
2010
Media: The New “Creative”: Leading practices
To achieve relevance, all seek to understand how consumers use online media for info and entertainment, but Leaders also understand role of community
100% 91% 90% 80% 90% 88%
80% 70%
Leaders are hiring communications planners to help make smarter media mix decisions
100% 90%
% of Respondents
70% 60% 50% 40% 30% 20% 10% 0% 59% 49% 49%
60% 50% 40% 30% 20% 10% 0% 15% 39%
Information
Community
Entertainment
Leaders Non-Leaders
Leaders
Non-Leaders
MME
2010
Marketing + Math
Leaders are 2x – 5x as likely to have the metrics and capabilities to judge the effects of new media
% of Respondents
80% 70% 60% 50% 40% 30% 20% 10% 0%
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MME
2010
Marketing + Math: Leading practices
All companies are facing challenges in measuring the effectiveness of new media Leaders are building tools and teams to support analytics efforts
Use predictive modeling to impact mix Use behavioral targeting to impact mix Metrics are not comparable to the predominant medium
45% 22% 32% 30% 31% 16% 30% 22% 12% 5% 0% 10% 20% 30%
Insufficient ability measure effectiveness
62%
44%
Have dashboard to measure ROI Recruiting specialists for analytics
Online efforts are not captured in the marketing mix model
0% 20%
30%
Adding an analytics department
Leaders Non-Leaders
40% 50%
40%
60%
80%
% of Respondents
% of Respondents
MME
2010
The Network Effect
Agencies in chaos: Almost 60% agree creative, strategic, and media capabilities should be rebundled – but disagree how
Doesn’t Matter 15% Media agencies should build up full service capabilities 16% Keep media and creative agencies separate 28% Keep Separate
Media landscape changing: Relationships, roles and responsibilities will be different
Leaders believe…
Direct partnerships with media more important than going through an agency 58%
Re bu
50% of media processes will be outsourced by 2010
55%
nd le
Media planning/ buying capabilities should be integrated into full service 22%
Media sourcing will look like equities in 5 yrs
50%
Leading players will be full service with both capabilities 20%
Marketer/ media relationships look like marketer/ retail
43%
% Respondents
MME
2010
Network Effect: Leading practices
Leading companies believe that direct partnerships with media companies are important … … and are investing in internal capabilities to do so
70% 60% 50% 58%
70%
47%
Internal positions
56%
% of Respondents
40% 30% 20% 10% 0%
55%
Senior positions
38%
Formalized processes
Leaders Non-Leaders
33% 24%
Leaders Non-Leaders
0%
20%
40%
60%
80%
% of Respondents
MME
2010
Leading Thoughts Across Ecosystem
“If you are not taking 15% of your marketing budget and asking your marketing partners for tests, you will be in trouble” – CEO, Agency “Digital marketing is more expensive and can be challenging to scale, but we leverage off shoring, & creative out sourcing… let creative versioning become a commodity” – CEO, Agency “Advances in technology increase the need for human capital – it does not replace it” – President of Advertising, Interactive Media Co “In the future, marketing organizations will look like media companies that sell things” – Founder, Interactive Media Co “Generations have shortened from a ten year time frame to a three year time frame” –SVP Marketing, Korea MME
2010