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for 2013


Predicting the future                     is by and large a           share a passion for marketing’s past, present, and future that
wonderfully futile endeavor. Were it not, Las Vegas would             lets them spot trends—many of which will be very relevant to
have to close up shop overnight as we all became perfect              your brand in 2013.
prognosticators of every football, baseball, basketball,
and any-ball game played anywhere.                                    So dig in—think, question, and challenge the predictions you
                                                                      find within these pages. Do they align with what you’re seeing
This is not to say, however, that predictions are without value.      within your market? Is there a big trend coming that you nee
The mere act of contemplating the future removes our day-to-          to prepare for today?
day blinders and helps us contemplate how the events of the
past and present may shape what’s yet to come. For today’s            The value of these predictions lies not in their accuracy at some
marketers, this is a priceless exercise as we live in a state of      future date, but in the questions they inspire today. We hope you
constant change—often afraid to look anywhere but forward             find them as thought-provoking as we do.
for fear that we’ll fall behind our peers and the technology that
seemingly drives our every move today.
                                                                      To an inspired future,
And that’s exactly why we ask you to stop and read this
collection of predictions from ExactTarget clients, partners,
employees, and friends. Collectively, they have hundreds of                                                              Looking for More
years of experience as marketers. They understand brand,                                                                Predictions in 2013?
audience, technology, data, automation, measurement, and ROI                                                         Visit for additional
                                                                                                                    insights from our ExactTarget community
like Vegas understands point spreads. And while they don’t share
                                                                                                                       of clients, partners, employees, and
some magical crystal ball that lets them divine the future, they do                                                          industry thought-leaders.
                                                                      Tim Kopp
                                                                      CMO, ExactTarget

Table of Contents
Introduction                         2


Matt Fleckenstein, Microsoft         6
Jay Baer, Convince & Convert         7
Jeff Eden, DEG Digital               8
Christopher Parkin, Adobe            9
Ashraf Montaser, Adfinity            10

Section II: EMAIL                    11

Bryan Wade, ExactTarget              12
Matt Blumberg, Return Path           13
Kristina Huffman, ExactTarget        14

Section III: MOBILE                  15

Brent Hieggelke, Urban Airship       16
R. J. Talyor, ExactTarget            17
Table of Contents
Section IV: SOCIAL                                        18

Susan Marshall, ExactTarget                               19
Marcus Nelson, Addvocate                                  20
Mark Schaefer, Blogger, Author, and Business Consultant   21
Phil Szomszor, Firefly Communications                     22
Maddie Grant, Socialfish                                  23
Geoff Livingston, Author, Speaker, and Strategist         24
Andre Bourque, Blogger and Social Media Specialist        25

Section V: MARKETING AUTOMATION                           26

Stephanie Miller, DMA                                     27
Mathew Sweezey, Pardot                                    28

Section VI: NEW & EMERGING TRENDS                         29

Kip Edwardson, Scotts Miracle-Gro                         30
Joe Pulizzi, Content Marketing Institute                  31
David Berkowitz, 360i                                     32
Linda Woolley, DMA                                        33
Jamyn Edis, Dash Labs                                     34
Christopher Krohn,                         35

                                                                                                  Big Data Breakthroughs

  Big Data seems to be the “big thing” right now. International Data                          campaign approaches can’t keep up with pervasively addressable customers
  Corporation (IDC) recently released a worldwide Big Data technology and services            who engage well before and after the point of purchase.” More than ever,
  forecast showing the market is expected to grow from $3.2 billion in 2010 to $16.9          customers create their own paths across channels and touchpoints, bobbing and
  billion in 2015. There’s no denying that companies across the globe in nearly               weaving as they discover, research, buy, and evangelize products and services.
  all industries are investing heavily in big data solutions to drive their business in       Existing CRM solutions can’t keep up.
  new and interesting ways.
                                                                                              I predict that in 2013, we will see big data solutions extend beyond traditional CRM,
  While big data continues to grow in popularity, it seems that the majority of use           and a new category of real-time, cross-channel digital marketing automation will
  cases center around improved business and customer intelligence. Respondents                emerge. For the first time, customers’ online transactions, responses to (or non-
  in Forrester Research’s June 2011 Global Big Data Online Survey reported that               responses to) digital marketing efforts, and product/service usage behaviors will
  the majority of companies (55%) are leveraging big data for business intelligence           stream in real time into advanced, data-driven marketing automation platforms that
  and analytics, while nearly three out of 10 (28%) were using big data for ERP               sit atop big data solutions.
  or CRM purposes.
                                                                                              As in the past, digital marketers will leverage their marketing knowledge and business/
  While progress is being made in leveraging big data for CRM (see ING Direct                 customer intelligence to create a series of interactions that cut across the customer
  and Target), it is becoming increasingly clear that in today’s digital world, traditional   journey to determine which message to serve to a customer. But once a campaign or
  CRM approaches fall short. As Forrester analyst Rob Brosnan writes, “Traditional            CRM program is launched, real-time marketing automation solutions will take over,
                                                                                              leveraging rules-based personalization and adaptive algorithms/machine learning
                                                                                              to modify and optimize messages to individual users based upon current and past
                                                                                              marketing performance. More than ever, marketing automation tools that are adaptive
                                                                                              and flexible enough to keep up with and respond to customer interactions are critical,
                                                                                              given the amount (and changing nature) of customer data we now have available and
                                                                                              the fact that no two customers follow the same customer journey.

                                                                                              In the past decade, we’ve seen automated, algorithmic platforms revolutionize how

          Matt Fleckenstein                                                                   we buy/sell/trade stocks. (In 2010, it was projected that as much as 60% of all orders
Director of Product Intelligence                                                              on the New York Stock Exchange were fulfilled by automated trading tools.) In 2013,
Microsoft Office and Office 365                                                               we will see real-time, cross-channel marketing automation tools emerge and begin a
                     Microsoft                                                                similar revolution for driving CRM across the customer journey.


  Inspired Predictions for CROSS-CHANNEL MARKETING                                                                                                                                    6
                  Viral Breathes Its Last
2013 will be the death of “viral” as a marketing strategy. Despite the success of Old            Customers are more curious and
Spice, Honey Badger, Gangnam Style, and other outliers, brands will recognize that
swinging for the fences breeds strikeouts and is wholly unpredictable and unreliable.            more suspicious than ever. The only
In 2013, brands will eschew the strategy of hope and embrace a new strategy of                   way to succeed in that environment
help—and in doing so, will usher in a new era that diminishes promotion in favor
of information.
                                                                                                 is to tilt the marketing objective
                                                                                                 from selling to helping.
According to research conducted by Google, in 2010, consumers needed 5.3 sources
of information before making a purchase. In 2011, just one year later, they needed
10.4 sources. In just 12 months, the amount of information needed to pull the “buying     Youtility is marketing that’s so useful, people would pay for it. If brands do that—
trigger” doubled. Why? Are we less decisive? More risk adverse? No. We need more          if they make their marketing inherently, truly, astoundingly useful—their customers
information because we have more information. From blogs to podcasts to review            will do their marketing for them. They’ll sell more by selling less.
websites to Facebook and beyond, prospective customers are floating in a sea of
data, and brands will begin to aggressively wage this war of information in 2013.         That’s my prediction for 2013. Brands will focus on making their
                                                                                          marketing indispensible.
Simultaneous shifts in how, why, and how much information customers consume have
fundamentally altered the success formula for modern business. Brands can’t survive
by shouting the loudest and relying solely on anachronistic, interruption-marketing,
or even wacky videos that they pray will go viral. They can’t send an email every day,
proclaiming that they’re featuring the “biggest sale ever!” They can’t simply rewrite a
portion of the online brochure and hope that Google funnels customers to the website.

Customers are more curious and more suspicious than ever. The only way to succeed
in that environment is to tilt the marketing objective from selling to helping.

If you sell something, you make a customer today. If you help someone, you may
create a customer for life. Brands will take cues from Hilton Hotels, McDonald’s                                                                   Jay Baer
Canada, Clorox, Columbia Sportswear, and many, many others that have realized the                                                                  President
key to success is to stop being a salesman and start becoming a “Youtility.”                                                                       Convince & Convert

7                                                                                 Inspired Predictions for CROSS-CHANNEL MARKETING
                                                                                        The Year of “Omnichannel”

Most organizations are collecting and using data to drive sales and                      In 2013, you’ll begin to see the most successful marketers creating ever
help decisions. However, few are truly taking advantage of the opportunities in front    more sophisticated and effective cross-channel marketing experiences. The
of them to leverage that data for successful, meaningful, sustainable engagement—        customer touchpoint data that is shared between a brand’s website, email, social
usually erring by being too focused on tactics without cohesive lines back to the        interactions, and mobile will lead to cross-channel content, product, and experience
organizational objectives.                                                               personalization like never before. This will most certainly manifest itself in both
                                                                                         on and offline experiences.
Doing this means highly sophisticated data organization and significant analytical
firepower, along with seamless front and back-end systems integration and an
omnichannel approach to marketing. To be successful, this approach must be an                   I believe that the personalized,
ongoing strategic effort and cultural mindset—not just something you set and forget.
                                                                                                integrated, experiential marketing
                                                                                                portrayed in Minority Report is
                                                                                                about to become a reality.
                                                                                         There will be nearly 140 million smartphones in the hands of US consumers by
                                                                                         the end of 2013, and according to e-Tailing Group Inc., roughly 80% of retailers
                                                                                         have indicated that they will invest in mobile commerce in the coming year. Couple
                                                                                         those figures with the technological advancements in analytics, cross-channel
                                                                                         message delivery, geo-location, and content personalization, and I believe that the
                                                                                         personalized, integrated, experiential marketing portrayed in Steven Spielberg’s 2002
                                                                                         movie, Minority Report, is about to become a reality.
                Jeff Eden
                  Principal                                                              As digital marketers, we couldn’t be living in more exciting times.
              DEG Digital

Inspired Predictions for CROSS-CHANNEL MARKETING                                                                                                                                8
                 The Millisecond Opportunity
The explosion in data and content while a challenge to marketers,                            To address the last millisecond opportunity, marketing leaders are re-platforming with
is leading to innovation.                                                                    new systems that help them:

                                                                                               • Sort through customer actions to find the meaningful signals that help
We are rapidly moving into a post-PC world of unprecedented mobility, social
                                                                                                  them understand what they’re doing right now, where they are,
connectedness, and content creation. The types, power, and connectivity of
                                                                                                  and what device they are using
the devices we use is creating an increasing number of signals that each of us
broadcasts—our likes, interests, posts, traffic patterns, etc. These signals aren’t            • Marry those signals with what is known about the customer from all
random acts and facts—they are self-defining choices with meaning.                                available sources of data (CRM, social, etc.) to create a more holistic view

                                                                                               • Use this view to predict the most appropriate content to deliver
Powerful devices and social connectedness have also made it much easier for
                                                                                               • Automatically assemble and deliver the appropriate content experience
businesses and consumers to create and distribute quality content.
                                                                                                  regardless of channel or device

                                                                                               • Accomplish it all within milliseconds

       Marketing leaders will accelerate                                                     Consumers have started to experience some really positive engagement experiences
       innovation in 2013 to make sense                                                      and are thus increasingly demanding it as part of their relationship with brands.
                                                                                             Marketing leaders will innovate in 2013 with newly available technology platforms and
       of all of these signals and content                                                   tools to deliver on this customer expectation.

       to deliver meaningful engagement.
       And they will do it in milliseconds.

Marketing leaders will accelerate innovation in 2013 to make sense of all of these
signals and content to deliver meaningful engagement. And they will do it in
milliseconds. By “meaningful engagement,” I mean delivering content and experience
that is so timely, relevant, and personal that it adds value to our customers’ lives. This
isn’t a new concept, but we are just now gaining access to the technology needed to                                                                Christopher Parkin
deliver on the promise of personalization.                                                                                                         Strategic Alliances & Adobe Genesis
                                                                                                                                                   Adobe Systems

9                                                                                 Inspired Predictions for CROSS-CHANNEL MARKETING
                                                          True Cross-Channel Marketing Arrives

How many times have you heard the term “cross-channel” bandied                                  We can start doing what marketers
about? As a marketer, the answer is probably more times than your average political
candidate has been pictured kissing babies—constantly.                                          everywhere are trying to do—
What is usually meant is that you can do web and social and email and offline and
                                                                                                send each user a tailored message in the
mobile separately. Or, you can do it just as ineffectually as you aggregate these bits          right environment at the right time.
of data and try to reach them through a single channel. Either way, it’s not great.

No more. The user will be a single user and each channel will have context of the        Real-time recommendation engines are a simple example of this. Used in a checkout
user’s state at that moment in time. The technology has been around for awhile and       lane and integrated into email receipts, they’ve been around for some time. Display
now “big data” has moved from a buzzword to business-as-usual. We can start doing        ads use behavioral targeting in the same way to target messages. The proliferation
what marketers everywhere (no matter the channel) are trying to do—send each user        of offline and online profiling through social media sites and loyalty schemes, cheap
a tailored message in the right environment at the right time, otherwise known as one-   computing power, and company acquisition/consolidation is all happening. The only
to-one marketing in many channels.                                                       thing missing is the elastic bands to tie them together and a multi-disciplined approach
                                                                                         by marketers. Target was a case study in profiling and targeting (forgive the pun) a
                                                                                         few years ago, and now these tools are cheaply available to all.

                                                                                         The final technology piece is real acquisition modeling, which can account for the myriad
                                                                                         of data noise in all channels. Marketers can move to building campaigns and messages
                                                                                         around context and real time profiling and data enrichment rather than medium.

                                                                                         So the best advice is to go back to Marketing 101:

                                                                                            • Keep it simple.

                                                                                            • Focus on target and message, not medium.

        Ashraf Montaser                                                                     • Make the experience spookily personal—not creepy.
      Co-Founder & Director

Inspired Predictions for CROSS-CHANNEL MARKETING                                                                                                                                10

                The Year of the First Impression

When it comes to email, 2013 will be all about making that first                        and managing the inbox. Both ISP based-organizers (e.g., Gmail and Yahoo!) and
impression of the email count, reaching your readers wherever they are, and making      client-based organizers (e.g., Outlook) automatically organize and display content
sure your message gets read. The changing landscape for where and how emails            based on rules set up by the consumer—essentially changing the way consumers
are being viewed opens the door for new innovations in email. Three things in           view emails in their inbox. This technology could be a game-changer in the way
particular will impact email marketing in 2013:                                         marketers think about inbox preview and rendering.

1. Mobile will become the platform of choice for email.                                 3. Testing will become the new send wizard.

Handheld devices will overtake the PC screen as the place where consumers read          In 2013, marketers will increasingly allow data to drive their email strategy through
emails first, making mobile rendering the most pressing issue email marketers face.     the use of testing. Marketers will devote more time to testing subject lines, images,
Marketers must adapt—literally—with adaptive HTML design using responsive               content areas, or even entire email layouts to see what drives a higher ROI.
designs. The @Media rules built into HTML to detect handheld devices versus             Sophisticated marketers will not only test the emails themselves, but they will also test
C screens will make their way into the mainstream email design standards.               which data segments perform best. Testing tools are so easy to use that every email
New technologies are making links device-aware (thus allowing marketers to              send will become a test—and today’s winner will become the baseline for tomorrow’s
redirect to a mobile app instead of the web), causing link redirects to be smarter      test. Marketers will gain greater insight into winning subject lines, content, and
and more mobile-aware.                                                                  layouts—including important information about seasonality or how a campaign may
                                                                                        lose effectiveness over time.
2. Inbox organizers will change subscribers’ view of email.

Marketed to consumers as time savers and productivity tools, inbox organizers will
become increasingly popular in 2013 as consumers realize their benefit for organizing

       The changing landscape for where
       and how emails are being viewed opens
                                                                                                                                                Bryan Wade
       the door for new innovations in email.                                                                                                   Vice President, Email Products

12                                                                                                                              Inspired Predictions for EMAIL
                                   Consumers Will Fall in Love with Email (Again)

In 2013, consumers will start discovering what industry insiders are already            The inbox of the future also manages email more actively. It automates sorting
seeing—email is cool again. For the record, it’s always been cool. But it’s been        and prioritizes messages with solutions like OtherInbox (a Return Path subsidiary),
a long time since so many new ideas about email came to light. This burst of            Sanebox, and Gmail’s Priority Inbox. It dictates when messages are received and
new development offers a glimpse into the inbox of the future, and for smart            sent (Boomerang for Gmail), and lets users set reminders ( so they
marketers, it’s an opportunity.                                                         can ignore messages until they’re ready to read them.

First and foremost, the inbox of the future is a command center. It’s where users       Soon, experiences that once required leaving the inbox will start taking place directly
manage social data, schedules, and even other communication channels. Think             from messages. Consumers will watch video, they’ll read Tweets, they’ll review offers
of how Rapportive displays contacts’ social media information in a Gmail sidebar;       based on geo-targeted messages. Thanks to widespread industry adoption of security
or how Google Voice via Google Talk lets Gmail users make phone calls from their        advances like DMARC, people will even shop directly from the inbox of the future—
inboxes; or how TripIt uses flight confirmation emails to build and manage travel       although probably not in 2013.
itineraries. Then there are task managers like MailPilot and ActiveInbox that turn
email into a to-do list. All of this happens in the inbox, and as users embrace and
spur more innovation like this, email will increasingly centralize an array of online          As consumers rediscover email’s
and offline experiences.
                                                                                               coolness and manage more of their lives
                                                                                               from the inbox, they’ll offer marketers
                                                                                               an opportunity to truly engage them.

                                                                                        So as consumers rediscover email’s coolness and manage more of their lives from
                                                                                        the inbox, they’ll offer marketers an opportunity to truly engage them. One critical
                                                                                        factor will separate brands that take advantage of this offer from the rest: intelligence.

           Matt Blumberg                                                                Marketers that succeed will know what devices their subscribers read email on, when
                 Co-Founder,                                                            they read their messages, what they do with them (move them, forward them, ignore
      Chief Executive Officer,                                                          them)—and use these insights to build highly customized, highly effective campaigns.
              and Chairman
                Return Path                                                             Meanwhile mailbox providers will offer an additional incentive: they’ll use some of                                                                these same insights to guide deliverability decisions, further distancing the smartest
            @MattBlumberg                                                               marketers from the rest.

Inspired Predictions for EMAIL                                                                                                                                                 13
                Email Flexibility Unlocks True Creativity

In 2013, designers will stop redesigning the wheel with every email send and              uniqueness of our business. You sent a Columbus Day sale email,
set up flexible email templates so they can increase production efficiencies and spend    but can you really explain what Columbus Day has to do with your business?
more time coming up with new ideas. Ideation and openness to change are innate            Be honest and transparent with your subscribers and they will return the favor.
to a designer’s nature and training and can be a hugely valuable asset in broader
creative conversations outside of just cranking out emails.                               The static, print-inspired email will die. Emails will not look the same in every
                                                                                          email client, whether it’s because we’re using progressive enhancement tactics or
                                                                                          responsive layouts. Content and design will be tailored to subscribers. This means
                                                                                          giving up some control around how an email looks, which isn’t always easy.
      The static, print-inspired email
                                                                                          Finally, we’ll see socially-ranked and curated content take front and center, letting
      will die. Emails will not look                                                      customers connect directly with influencers. Customer-curated content is trustworthy
      the same in every email client.                                                     and personal—two aspects of marketing that are the hardest to achieve. It’s a win-
                                                                                          win—influencers are featured, which extends their reach, and marketers receive
                                                                                          thoughtfully crafted content for their communications.

We will all get our heads out of the “Apple tree” and start to recognize Android as the   Let's create this future together!
mobile market leader, accommodating its preview pane and image-blocking when
we design. We will monitor the open tracking data and market share data and make
appropriate, informed decisions for the future of our subscribers. Subscribers are
starting to expect mobile legibility. Clear communication equals good design—
don’t be deleted.

We will stop hoarding and hyper-analyzing all of our competitor’s emails.
Instead, we’ll replace that time with true collaboration between internal stakeholders
to develop and test new, crazy ideas that really speak to the personality and                                                                      Kristina Huffman
                                                                                                                                                   Design Practice Lead

14                                                                                                                                Inspired Predictions for EMAIL

                                           Mobile Apps Become a Strategic Imperative
Let’s just get this out of the way and proclaim 2013 as                                      with Kraft Foods Group (now Mondelez) moving 10% of its media budget to mobile. In
another “Year of Mobile.” In fact, global PC sales were outpaced by total smartphone         addition, the Mobile Marketing Association’s recent MXS mobile study recommended
sales starting in 2011, so it’s probably time for us to just agree that this is the decade   that marketers in 2013 should spend 7% of their budget on mobile advertising.
of mobile. The fact is that mobile changes things more than anything we’ve ever seen.
                                                                                             In 2013, mobile apps will move from being a brand’s playground to a strategic

       It’s probably time for us to just agree                                                 • Smartphone users worldwide will download more than 45 billion apps
                                                                                                  this year—nearly twice the number of apps that were downloaded in 2011.
       that this is the decade of mobile.                                                         (Gartner, August 17, 2012)

       The fact is that mobile changes things                                                  • Mobile apps are a $6 billion market today, growing to $55.7 billion by 2015.
                                                                                                  (Forrester, February 13, 2012)
       more than anything we’ve ever seen.                                                     • Consumer spending on mobile app stores and digital content will increase
                                                                                                  from $18 billion this year to $61 billion by 2016. (Gartner, July 12, 2012)

In 2013, we’ll see mobile advertising spend grow at an increasing pace. We’re not going      And now with push messaging, apps have a direct voice with all of their best
out on a limb to say that mobile ad budgets will at least quadruple in 2013 as brand         customers and can reach out anytime, any place—without the app even being open.
advertisers seek to be where consumers are. We’re already seeing evidence of this            Push establishes direct-to-consumer communications with the future potential to steal
                                                                                             advertising budgets from other channels as brands find higher response rates and a
                                                                                             much lower cost—for example, sending Rich Push videos versus having TV ads being
                                                                                             skipped over on DVRs. And there’s already growing evidence that push messaging is
                                                                                             a primary reason that consumers keep some apps on their smartphones.

                                                                                             In 2013, location will become apps’ trump card. Apps will leverage location to offer
                                                                                             more value and innovative features to users. Location insights will enable apps to
                                                                                             attain an unprecedented level of messaging precision—not only knowing where you
                                                                                             are right now, but where you’ve been…where you live, work, and play.
       Brent Hieggelke
           Urban Airship

Inspired Predictions for MOBILE                                                                                                                                                     16
                 Mobile ROI Takes Hold

2013 will be the year of the mobile return on investment (ROI). Marketers have               Clicks, opens, mCommerce conversions,
already invested the resources into experimenting with mobile. In 2013, they’ll use
data to prove what works, and what doesn’t.                                                  coupon codes, in-app’s
No matter the sophistication level of a mobile program, marketers can calculate its          a dream field of marketing data that
ROI. And the good news with mobile marketing? The data is there. Clicks, opens,
mCommerce conversions, coupon codes, in-app conversions... it’s a dream field of
                                                                                             can be used to quickly calculate ROI.
marketing data that can be used to quickly calculate the ROI of a mobile marketing
investment. Doing so will lead to a number of shifts in 2013.                          The most advanced marketers will determine ROI based on market segment—or
                                                                                       individual. ROI by segment (or individual) will show that different channels work for
Marketers solely adopting mobile will recognize their mobile email open rate (some     each consumer, each purchase path and each marketing goal.
marketers are seeing mobile opens over 30%; others, over 50%!) and refine
templates and practices for conversion on the handset or tablet. Seeing its return     In 2013, marketers will create simple to complex marketing campaigns that start,
on investment, marketers will decide on how best to incorporate SMS and push           continue, and end on a mobile device. Accountability for mobile investment is coming
messaging into a lifecycle marketing program, or whether to stick with transactional   in 2013, and the data is there. Where will this new ROI lead you?
use cases only for those channels.

More advanced marketers will integrate advertising, email marketing, SMS/text
marketing, and push messages into the ways they promote their apps and mobile
websites. In calculating the ROI for a mobile website or app, marketers will abandon
disparate marketing programs and go with fully integrated cross-channel programs
that result in higher ROI.

                                                                                                                                               R. J. Talyor
                                                                                                                                               Vice President, Mobile Products

17                                                                                                                           Inspired Predictions for MOBILE

                                  Slimming Down, Shaping Up, & Getting Organized
       It sounds like a New Year’s resolution that could easily go awry, but it                   staffing adequately in-market and-in region to ensure conversations are authentic and
       sums up what will likely be a rude awakening for many marketers. Quality of fans           local. This will require support from executives—which means that the champions
       and followers will matter more than quantity, and savvy marketers will begin to find       will need to prove why social media is critical to all areas of the organization, not just
       creative ways to leverage social to drive more relevant, higher performing interactions    marketing and customer service.
       with their customers.
                                                                                                  3. Offline/Online Social Advertising Experiments
       1. Community Curating
                                                                                                  As networks like Facebook, Twitter, Linkedin, Google+, and Pinterest look for new
       In an effort to eliminate unnecessary noise, people will continue limiting their friends   and imaginative ways to expand their percentage of the advertising revenue pie, we’ll
       on Facebook and hiding content in their newsfeeds to only see what’s most relevant         experience some in-your-face bloopers that people will readily reject. We’ll also see
       to them. Since most people are not emotionally connected to brands, we’ll also start       creative uses of hashtags and conversation starters on TV, in-store, and on the radio.
       to see people “unlike” and “unfollow” brands that aren’t adding any value. Brands will
       need to think carefully about the creation of relevant, timely, and valuable content to
       ensure they aren’t curated right out of the picture.                                              Quality of fans and followers will
       2. Social Re-Org 101                                                                              matter more than quantity, and
                                                                                                         savvy marketers will begin to find
       Many organizations haven’t figured out how to staff for social media, but they’ll have
       no choice in 2013. You’ll either see brands outsourcing community management or                   creative ways to leverage social to
                                                                                                         drive higher performing interactions.
                                                                                                  4. One World, Many Voices

                                                                                                  We all know that social media enables communities to freely connect, mobilize, and
                                                                                                  swiftly make decisions. This is what’s so powerful and amazing about social media!
                   Susan Marshall                                                                 These growing connections across regions will forge powerful social and economic
Senior Director, Product Marketing -                                                              relationships, resulting in new businesses, fairer trade, and community activism.
                  Social Product Line                                                             What’s more, video will bring us all closer as we get to “know” our customers and
                         ExactTarget                                                              vendors without travel.

       Inspired Predictions for SOCIAL                                                                                                                                                    19
                 Rise of the Amplified Employee

The 2012 Edelman Trust Barometer revealed the rise of credibility amongst                    It’s usually not a matter of employees not wanting to share content about their
regular employees in social media. The sudden rise in credibility was the greatest           company. Typically it’s that they either don’t know what to share, or they don’t want to
increase since 2004—one that should serve as a wake-up call to leaders and                   say the wrong thing and get in trouble. So instead, they do nothing at all.
                                                                                             This can be easily overcome by putting syndication systems in place to distribute
Consider for a moment that in aggregate, your employees have an entirely different           content and drive success toward your company’s key performance indicators.
audience than your brand channels. It could be argued also that an enormous amount of        Internal metrics will no longer be just a luxury, but an absolute necessity. In addition,
intimacy, influence, and trust exists with these personal accounts vs. corporate channels.   consideration for acknowledging and crediting your newfound evangelists will also be
                                                                                             necessary to assist in supporting, rewarding, and perpetuating the behaviors you’re
                                                                                             looking to encourage.

       Ask any person whether                                                                Without consistent recognition, your employees will likely lose interest and drop off.

       they’d rather talk to a logo or                                                       Even so, the greatest challenge marketers will have is organizing and creating
       a real person on social media.                                                        authentic content your employees feel is worthy of being shared.

Anecdotally, ask any person whether they’d rather talk to a logo or a real person on
social media, and you’ll have a better understanding of how important placing faces
amongst your brand can become.

To capitalize upon this trend, marketers will be required to think long and hard about
putting together thorough training programs, conscientious social media policies, and
inspired content that employees would want to share as brand advocates.                                                                               Marcus Nelson
                                                                                                                                                      Co-Founder and CEO

20                                                                                                                                   Inspired Predictions for SOCIAL
                                                                                   2013: The Year of Instagram!

One of the biggest social media trends is the emphasis                                   4. Today, 67% of Instagram’s users are under the age of 34. I project that
on visual content, and new research from The Social Habit seems to confirm that the        there could be a huge upside across demographics because everybody
photo-sharing site is poised for a breakout.                                               loves sharing photos. And it’s so easy to use, even the non tech-savvy
                                                                                           can master it in minutes.
Of the Americans surveyed who currently use a social media platform, only 18%
                                                                                         5. Since Instagram is a mobile-only application, its adoption will increase
currently have a profile on Instagram. That’s paltry compared to Facebook (94%) or
                                                                                           as the trend toward smartphones continues in 2013.
Twitter (47%). But here are five reasons why Instagram could explode in 2013:
                                                                                      How do you capitalize on this for your business? There’s an almost voyeuristic quality
  1. Of those who have a profile, 61% have used it in the past 24 hours, an
                                                                                      to Instagram that is lacking anywhere else—similar to the appeal of gossip magazines
     adoption level only surpassed by Facebook (at 84%). So those currently
                                                                                      and reality TV shows. Can you show the “insider’s view” of your company in an
     using Instagram are pretty voracious users.
                                                                                      entertaining way? Follow some journey or event in a realistic way?
  2. Of ALL social media users surveyed, 48% declared they are using Instagram
     more often. This blows the other major platforms out of the water.

  3. Of those who have an Instagram profile, 83% use it at work—again surpassing             There's an almost voyeuristic quality
     even Facebook and YouTube by a long shot. One reason could be that sharing
     on Instagram requires no typing. You just snap a photo and post in seconds.             to Instagram that is lacking anywhere
                                                                                             else—similar to the appeal of gossip
                                                                                             magazines and reality TV shows.

                                                                                      Instagram is a natural outlet for any business that can offer stunning visuals—think
                                                                                      travel, exotic locations, celebrities, animals, news events. Instagram is also red-hot with
                                                                                      teens right now. If this is your target market, get to know this photo-sharing community!

                                                                                      Remember that Facebook acquired the 11-employee, non-revenue-producing
         Mark Schaefer                                                                Instagram early in 2012 for $1 billion. It was a defensive move, but at some point
           Blogger, Author,                                                           there will probably be a move to more closely integrate Instagram and the one billion
   and Business Consultant                                                            people on Facebook. Something to consider.
        @MarkWSchaefer                                                                In 2013, think “visual” communication and think Instagram.

Inspired Predictions for SOCIAL                                                                                                                                               21
                  B2B Social Media Comes of Age

A recent eConsultancy survey found that 67% of marketing                                  “The purchasing lifecycles are too long for social media.”
decision makers agreed that social media is integral to their marketing mix (and only
11% disagreed). But when I speak to B2B marketing and PR leaders, the received            Yes, you’re going to spend a longer time selecting a new piece of accounting software
opinion is that social media is a “consumer thing.” Why is this?                          to roll out in 50 countries than you are to buy a new digital camera. But to me, that
                                                                                          means that an organization needs to spend more time building up trust. You can’t
There are 10 million people on LinkedIn in the UK—that’s about a third of the working     spend all that time face-to-face with your prospects, but social is an excellent way of
population. A similar number of people use Twitter in the UK, while another survey        building on the relationship that you begin offline. And as the lines between personal
found that companies that blogged more frequently closed more deals.                      and professional lives blur, social media can add to the client relationship.

2013 is the year that B2B social media will start to see its potential. But to do so,     “People aren’t using social media for business.”
we need to overcome a few objection points. Here are the top three things
I keep hearing:                                                                           Why would business people only want to get their news in print or via traditional
                                                                                          broadcast channels? The answer is, they don’t. And why are videos, blogs,
“Hardly anyone watches/reads my content.”                                                 infographics and podcasts increasingly popular? Because they’re interesting (ok,
                                                                                          maybe not in all cases) and easily consumed in bite-sized portions.
First up, with B2B social media you have to get over the numbers barrier because
the universe is smaller. We’re not trying to make a “Gangnam Style” viral effect
with B2B content. And that’s not a bad thing. Success in B2B looks different—if it
helps to create a lead, it’s worth more than getting a bucketful of views. The key
is not to create content for the sake of it and (it has to tie in to the marketing mix)
measure its effectiveness.

       There are 10 million people on LinkedIn
       in the UK: that’s about a third of the                                                                                                     Phil Szomszor
       working population. A similar number                                                                                                       Head of Business and Digital
                                                                                                                                                  Firefly Communications
       of people use Twitter in the UK.                                                                                                 

22                                                                                                                              Inspired Predictions for SOCIAL
                                                                   Social Gets Infused in the Business

We’re in a transitional period in which companies are struggling                            gives their company a competitive edge, and 84% agree that communicating core
to integrate social into their business processes, and it goes way beyond marketing.        values via social media is integral to leadership—yet 44% are concerned about the
Those that confine social activity to specific sales or marketing “channels” will soon be   lack of involvement by their leaders in social media.
at a huge disadvantage to those that can incorporate the human-powered principles
of social media throughout their organization.                                              So why is this important for marketers? Because marketers understand story.
                                                                                            Infusing social media into an organization requires communicating those core value
Our employees expect more transparency, more change, more experimentation,                  messages and the authentic brand story throughout the organization—which is a
and more clarity. Smart organizations should start taking a close, hard look at their       challenge for traditional leaders, as evidenced by their hesitance around social media.
existing cultures and begin considering some different (less hierarchical) ideas of what
“leadership” means if they are going to successfully adapt to this disruption.

How do we know this? We conducted a recent survey of 500 individuals and asked
                                                                                                  Smart organizations will start taking
them questions about how their leaders are leveraging social media for organizational             a close, hard look at their existing cul-
results. Of those surveyed, 84% agree that leadership involvement in social media
                                                                                                  tures and begin considering some dif-
                                                                                                  ferent ideas of what ‘leadership’ means.

                                                                                            Marketers know how to tell the stories—and they also know how to experiment, test,
                                                                                            and learn from different kinds of messaging. It’s time we started applying those skills
                                                                                            to building leadership capacity, rather than just marketing. For leadership to spread
                                                                                            through an organization—as social media demands—we need to change our culture,
                                                                                            and marketing can play a vital role.

           Maddie Grant
Author and Social Strategist

Inspired Predictions for SOCIAL                                                                                                                                                     23
                  2013: The Year of Clicks and Mortar
The big shift for social media in 2013 has little to do                                    Smart store owners and entertainment venues will seek to cater to the wired customer
with technology evolution or new social networks that we'll see. Rather, it will revolve   on site. That includes making inventories available on the web, providing great
around how brick and mortar businesses—in particular, stores and entertainment             wireless access in-venue, offering connected flat screens that amplify what customers
venues–integrate social into their physical brand experiences.                             are saying about the store or in-house entertainment, and of course, looking at the
                                                                                           increasingly popular mobile deals that have become prevalent on networks like
Some folks dub this trend “clicks and mortar,” the integration of online into our          Foursquare and (to some extent) Facebook.
everyday physical whereabouts.
                                                                                           In-store interactions represent a huge opportunity for business owners. Whether they
Recently, I attended the Ivy League Sports Symposium and, whether it was MLB               offer in-store deals or easy access to peer reviews and customer service, real-time
or the Tough Mudder franchise, everyone was talking about the live fan experience          on-site interaction can make or break store deals.
from a participation perspective.
                                                                                           As 2013 progresses and stores ready for the 2013 holiday rush, the innovators—
                                                                                           both local and forward-thinking chains—will move to encourage in-store interactions.
       As 2013 progresses, the innovators—                                                 Similarly, entertainment venues will add additional content engagement and feedback
                                                                                           loops to extend and better their live customer experience.
       both local and forward-thinking
       chains—will move to encourage                                                       The pervasive will expand, making live experiences a balance of clicks and mortar.

       in-store interactions.
It's not just sports, either.

Burberry recently invested significant dollars to bring the online experience into its
flagship London store. The effort includes some creative use of RFID chips to show
video content about clothes that have been brought into changing rooms.

Business owners realize the rise of smartphones and tablets has wrought a new
revolution in marketing. People can explore products and experiences on-the-go
wherever they are.                                                                                                                              Geoff Livingston
                                                                                                                                                Author, Speaker, and Strategist

24                                                                                                                              Inspired Predictions for SOCIAL
                                                         Beneath the Surface: Storytelling in 2013

      For years, Seth Casteel photographed dogs leisurely floating in pools                            For marketers, advances in social
      and playing in water fixtures. It wasn't until one of these animals lunged for a toy and
      dove into a pool that he captured an entirely new and revealing perspective on an                media are simultaneously forcing
      otherwise ordinary event. It turns out, there's a whole lot of activity beneath the
      placid surface of a pool's water.
                                                                                                       and enabling us to look beneath
                                                                                                       the surface of our businesses.
      Following business trends, speaking with clients, publishing articles, and hearing
      stories at internet marketing conferences throughout the year, I've discovered a
      similar phenomenon. It turns out, there's a whole lot of consumer activity happening       One of the most extensively distributed and widely read articles I wrote this year was
      beneath the surface of business as well. For marketers, advances in social media are       a story about Pinterest and a mom-and-pop company launched by the social media
      simultaneously forcing and enabling us to look beneath the surface of our businesses.      darling. What makes it so compelling is that it pairs the power of social media with
      What's happening with Casteel's canines is happening with our consumers, and good          the power of a single voice. A lady pinned a photo, an enormous amount of interest
      storytelling is what brings these remarkable experiences to surface.                       ensued, and a company was launched.

                                                                                                 It's been said that content is the currency of social media. Good stories make up
                                                                                                 the higher value legal tender. In the content marketing world, that means creativity,
                                                                                                 investigation, articulation, and ultimately, engagement. Many of these stories dwell
                                                                                                 beneath the surface of the obvious. My Pinterest story and others like it are the kind
                                                                                                 of remarkable content brands and business need to find, articulate, and share to drive
                                                                                                 their reach in the social sphere.

                                                                                                 So dig deep in 2013, and pull all your good stuff to the surface.

          Andre Bourque, MBA
Blogger and Social Media Specialist

      Inspired Predictions for SOCIAL                                                                                                                                                    25

                Technology Optimized to Serve Customers

Technology will not drive digital marketing innovation in the coming years.                Now that the data is manageable and accessible, we marketers have the chance
Smart marketers will. To be precise, smart marketers who use smart technology              to stand up for our customers’ satisfaction. Smart marketers will put the customer
will drive the most innovation. But don’t get cocky, now. Marketers are not in             needs first (and really first, not just first after the product needs). Driving response and
charge—consumers are.                                                                      revenue. I predict that marketers make this their mantra in the coming year. No one
                                                                                           will do this because I predict it--they will do it because it’s what works.
Marketing automation technology has advanced to unlock the mysteries of consumer
data so that marketers can help enable and encourage fantastic and customized              As Uncle Ben said to Spiderman, “With great power comes great responsibility.”
consumer experiences. The days of “set it and forget it” are over. One size fits all       Marketers, this is your year to use your big data technological power for the good
marketing programs—built in January and left to run through June—are no longer             of customer satisfaction.
going to meet consumer expectations.

The best tool in our arsenal is great strategy—driven by consumer need, choice, and               Marketing automation technology
behavior. Consumers know that we have data about them, and they expect us to use
it responsibly and respectfully. This creates a forced collaboration between marketers
                                                                                                  has advanced to unlock the
and their customers—with industry bloggers, analysts, and journalists chiming in too.             mysteries of consumer data.
This is the year of the great omnichannel marketing strategists.

Now, those brilliant strategists of the future look familiar because they are you and me
and those folks down the hall who really get data analytics. Smart marketers will think
outside the channel. Although most of our data today comes from email marketing
interactions, we won't work from email data alone. Instead, smart marketers will
analyze and utilize most (or all) of the data they have to consistently present
messaging that reflects customer interests and passions. Yes, the technology is
important (essential!)—but it doesn’t alone ensure engagement.
                                                                                                                                                    Stephanie Miller
                                                                                                                                                    VP, Member Relations
                                                                                                                                                    DMA & Email Experience Council

27                                                                                                Inspired Predictions for MARKETING AUTOMATION
                                                                                        Early Adopter Window Closing

      The modern digital marketing revolution has spawned new                                    The sizeable increase is directly tied to marketing automation’s ability to track
      marketing mediums and techniques such as SEO, SEM, and social media. The early             individuals across multiple marketing mediums and keep a central database of their
      adopters of these technologies have seen the largest gains for taking that initial risk.   actionable, individual history. The history is then used to dynamically personalize
                                                                                                 marketing efforts to each person across any medium, at any time. This allows
      Now that SEO, SEM, and social media are standard marketing avenues, what’s next?           marketers to be infinitely more relevant to each person, increasing engagement.
      The new wave of innovation for marketers is automated marketing. Leading B2C and
      B2B companies and increasing marketing engagement through behavioral-based                 These abnormally high gains will not last forever; however, they will continue for
      tracking and dynamic messaging are deploying marketing automation worldwide.               the next year or two. The next wave of adopters to marketing automation will be
                                                                                                 the early majority. These adopters will see the tail end of the largest returns from
      Currently, marketing automation is used by less than 15% of all companies in               marketing automation. We should expect to see adoption creep into the mid-to-
      the United States. Despite its slower adoption rate, that 15% comprises leading            high 20% by the end of 2013.
      companies like Some companies who have implemented this
      technology have reported an increase in revenue of over 300%.

                                                                                                        Now that SEO, SEM, and social media
                                                                                                        are standard marketing avenues, the
                                                                                                        next wave of innovation for marketers
                                                                                                        is in the field of automated marketing.

                                                                                                 If you're searching for a solid way to increase marketing engagement rates, look
                                                                                                 into marketing automation—and doing it sooner than later. Early adopters have
              Mathew Sweezey                                                                     already proven the advantages, and big gains are still there to be had by the next
             Marketing Evangelist                                                                wave of companies adopting marketing automation.
Pardot – an ExactTarget company

      Inspired Predictions for MARKETING AUTOMATION                                                                                                                                     28

                Get the Picture(s)!

As a fan of the Cleveland Browns and the Minnesota Vikings, I’ve been wrong              According to Blogher, 47% of online consumers have made a purchase based on a
more often than not when it comes to predicting the future. If I was right, my teams     Pinterest recommendation. Instagram gets over five million photos a day and has over
would have at least five Lombardi Trophies apiece. And I never did marry Drew            15 million users, while Facebook boasts 2.5 billion photos uploaded every month.
Barrymore like I told everyone I would. However, I’m feeling pretty good about this
one: Brands will find themselves spending more on original photography.                  P&G’s campaign for the Olympics, “Thank You Mom,” did a fantastic job using
                                                                                         stunning images to tell the story of inspiration behind the athletes that inspire us.
That’s “original”—meaning it originated from the brand. Brands are becoming              (No, not Adrian Peterson’s mom—although he would make an awesome Olympian.)
better storytellers–look at a campaign like “We Speak Mom” from Fisher-Price or          General Electric is using Instagram to tell the GE story—go check it out and maybe
“Jess Time” from Google Chrome. Campaigns like these are part of a movement.             the light bulb will go on for you. (See what I did there?)
Successful brands are telling the stories that their consumers want to hear—and
share. Combine that movement, or shift in advertising, with the popularity of photo      We all want to increase our "likes," pins, shares, and opt-ins, but are you interesting
sharing online via social sites like Pinterest, Instagram, and Tumblr and you begin to   enough to be pinned, "followed," or subscribed to? Are you telling good stories, and
see a real change in how brands express themselves. And let’s not forget the billions    are you giving your brand advocates something to share? You should, and you should
of photos uploaded and shared daily on Facebook.                                         rethink the photography on your site, in your emails, on your Facebook timeline, and
                                                                                         on your Pinterest board.

       We all want to increase our "likes,"
       pins, shares and opt-ins but are you
       interesting enough to be pinned,
       "followed," or subscribed to?

                                                                                                                                                 Kip Edwardson
                                                                                                                                                 Director of Digital Marketing
                                                                                                                                                 The Scotts Miracle-Gro Company

30                                                                                             Inspired Predictions for NEW & EMERGING TRENDS
                                                                       The Rise of the Chief Content Officer

        2012 was the year content marketing came to life in North America.                               My advice for 2013: find
        According to research from Content Marketing Institute and MarketingProfs,
        approximately 90% of all marketers use some form of content marketing. This means                your content marketing
        that now, when we say that marketers are publishers, it's a true statement. In addition,
        budgets for content marketing now surpass 28% for both B2B and B2C companies
                                                                                                         mission statement.
        That's a lot of content!
                                                                                                   So these marketers know that they need to be creating valuable and compelling
        But just because marketers can and do use content marketing, doesn't mean they do          information in multiple channels to attract and retain customers–but it's a struggle.
        it well. Actually, there's something quite amiss with content marketing. According to      After all, most marketers weren’t trained as journalists and publishers.
        the same research, just one in three marketing professionals feel that their content
        marketing is effective. Now this is a real problem, especially when more than half of      And now, to the inspired predictions for 2013:
        these marketers are planning to invest more money into this area over the next 12
                                                                                                      1.  heRiseoftheChiefContentOfficer. More and more organizations (such as
        months. (Could this be the definition of insanity?)
                                                                                                        Kelly Services) will hire a dedicated "chief storyteller" to work with marketing and
                                                                                                        public relations departments to create a cohesive content strategy and unified
                                                                                                        customer experience around content.

                                                                                                      2. TheNewHomeforJournalists. In 2013, more journalists will be hired by
                                                                                                        non-media companies than by media companies.

                                                                                                      3. ContentM&A. Google started acquiring smaller media companies, such as
                                                                                                        Zagat, over a year ago. In 2013, we'll start to see big brands in all industries start
                                                                                                        to purchase media companies. While many will still opt to build, many will just
                                                                                                        buy the media brand and talent as part of their content marketing initiatives.

                                                                                                   Less than 5% of organizations have a written content marketing strategy. How can
                                                                                                   you develop winning content without a vision of what that content is supposed to do?
                     Joe Pulizzi                                                                   My advice for 2013–find your content marketing mission statement.
              Author and Founder
      Content Marketing Institute

        Inspired Predictions for NEW & EMERGING TRENDS                                                                                                                                     31
                 3D Printing (The “D” Stands for Disruptive)

In 2012, 3D printing started to migrate from the lexicon of techie tinkerers to             Both approaches facilitate a new form of peer-to-peer commerce, where
the business trades. By the end of 2013, marketers will need to engage in serious           customers buy goods directly from designers, cutting out many middlemen such
scenario planning to assess how 3D printing may impact their businesses.                    as manufacturers, retailers, and transportation. A colleague who owns a Makerbot
                                                                                            once used it to print shower curtain rings from a design he found online. Meanwhile,
Two companies that best exemplify the disruptive potential for 3D printing are              someone at Shapeways told me it’s as easy to fulfill an order for 10,000 of the same
Makerbot and Shapeways. Makerbot designs and sells 3D printers which allow                  product as it is to fulfill 10,000 individualized items from a vendor.
consumers to upload designs that print durable, tangible goods. The “ink” in this case
comes in spools of plastic. While Makerbot’s printers sell for $2,000 now, that price is    While a small fraction of homes and businesses will own 3D printers next year, and
bound to drop. Case in point, in 1987, Hewlett-Packard’s first inkjet printer cost $1,400   Shapeways is a long way from rivaling Amazon, marketers should take a long view as
($2,850 in today’s dollars). But now, better ones are practically free. It’s not hard to    to 3D printing’s potential. Those that find ways to adapt to and incorporate the shifts in
envision a model in the coming years where the printers are basically given away and        technology and business models will be in a far better position once 3D printing goes
the profit comes from the “ink.”                                                            fully mainstream.

       By the end of 2013, marketers will
       need to engage in serious scenario
       planning to assess how 3D printing
       may impact their businesses.

Shapeways is more akin to crafts marketplace Etsy, where anyone can upload their
designs and sell products. Shapeways fulfills the order, with objects printed in a range                                                             David Berkowitz
of materials such as plastics, ceramics, glass, and sterling silver. Expect to see more                                                              Vice President of Emerging Media
products “powered by Shapeways,” where consumers customize and personalize                                                                           360i
design templates that are then printed to their specifications.                                                                            

32                                                                                                Inspired Predictions for NEW & EMERGING TRENDS
                                                                                      Regulatory Threats Rise Up

The economic turmoil of the past four years                                            As businesses increasingly rely on information for marketing capital, the regulation of
has deeply affected the marketing industry. Yet, of all the changes I’ve observed,     personal information will take on new importance. Politically naive data use policies,
perhaps the most significant has been the evolution of marketing data as a highly      combined with growing consumer demand for more relevant marketing will ignite a
effective driver for bottom-line growth.                                               global privacy debate which could threaten responsible data-driven marketing.

According to “The Power of Direct Marketing—2011/2012 Edition,” data-driven            The emergence of consumer preference for more personalized advertising has fueled
marketing investment (as a portion of total advertising spend in the Unites States)    the shift from mass marketing to highly targeted customer outreach and interaction.
stood at over 52%. What’s more, data-driven marketing produced 8.7% of US GDP.
                                                                                          • According to one study, published by the UK Direct Marketing Association, more
                                                                                            than seven in ten US consumers prefer to receive promotional offers that reflect
                                                                                            their likes and dislikes.
       While the ability to mine and analyze                                              • Another study, published by RSR Research, indicates that the vast majority of

       data to drive strategic marketing                                                    global retailers say that customer-centric marketing opportunities such as better
                                                                                            targeting through more detailed customer preferences (97%) and delivering
       decisions increases, so too does the                                                 real-time personalized offers to consumers (97%) are either highly valuable or
                                                                                            somewhat valuable to them.
       threat to our ability to use it.
                                                                                       While the ability to mine and analyze data to drive strategic marketing decisions
                                                                                       increases, so too does the threat to our ability to use it.

                                                                                          • Congress wants to put an end to the collection and use of consumer data.

                                                                                          • The Federal Trade Commission is telling tall tales about marketing practices
                                                                                            (like consumers who buy deep-fat fryers online will be denied health insurance).

                                                                                          • Activists are using scare tactics, saying, “Consumers are being pinned like
                                                                                            insects to a pin board,” by marketers.
        Linda A. Woolley                                                                  • The press is slanting the story, reporting that marketers who collect personal
       Acting President and                                                                 consumer data are worse than the FBI or the IRS.
      Chief Executive Officer
                       DMA                                                             The regulation of personal data use will have far-reaching implications for the marketing                                                               economy of the future.

Inspired Predictions for NEW & EMERGING TRENDS                                                                                                                               33
                 The Automobile Ascends

As the evolution of consumer engagement                                                   Now, for the first time in marketing history, sensors in the car, paired with smartphone
moves from web to social to mobile, we'll see an increasing desire to leverage the        sensors, ambient information about road journeys from third party APIs (e.g., weather,
latest innovations. The amusing thing is, a lot of that will be right under our noses—    traffic, playlists), and the social profile of drivers, we can paint an amazingly vivid
everyday objects. Some people call this the “internet of things.” Others call it          picture of what we do on the road—and why.
“physical computing.” In plain English, I’m referring to everyday interactions with our
surroundings at home, on the road, and at the office—objects that will be increasingly    For marketers, that data is a goldmine—not only to reach and engage drivers, but
filled with cheap sensors, ubiquitous connectivity, and screens for apps and data,        also to direct targeted and measurable campaigns. Imagine being able to better
be it in a thermostat, a fridge, or a car.                                                understand, at any given time of day, on any given stretch of highway, which
                                                                                          consumer or household is driving, in which car, with whom, with what purpose,
With 230 million vehicles on the road in the US and 120 million personal cars, there's    and what destination. And then consider the broader time and location-based
already a material installed base to support innovation. And cars are clearly an          spectrum; whether for marketing insurance, leveraging a local merchant platform,
important part of our daily routine, with an average of 10,000 miles driven per year      or for dynamic advertising billboards.
and $10,000 running costs. But little is known at a granular, data level about the
driving experience, outside of macro-level surveys or traffic-flow analyses.              Just as Nest helps your home become smarter and Nike Fuel tracks your physical
                                                                                          activity, this new vision of the car is becoming a reality.

       Imagine being able to understand
       which consumer is driving in
       which car, with whom, with what
       purpose, and what destination.

                                                                                                                                                    Jamyn Edis
                                                                                                                                                    Founder and CEO
                                                                                                                                                    Dash Labs

34                                                                                              Inspired Predictions for NEW & EMERGING TRENDS
                                                    2013 Means “Game On” for Gamification
Marketing fads and gimmicks come and go—                                                   Gamification works because humans are innately wired to compete—even if it’s just
from sock puppet ads to Second Life virtual stores. Every now and then, however,           against themselves or a neutral “progress bar”—and game structures are an effective
true innovations emerge that revolutionize how marketers engage with customers.            tool to get them to do so. The underlying mechanism here is dopamine, a powerful
From where I sit, 2013 will be the year in which “gamification” moves from the             neurotransmitter and behavioral motivator that acts on the reward-seeking system of
periphery to the core of the cross-channel marketing tool set.                             the human brain.

Marketing innovations tend to move through a classic product lifecycle curve:              By providing the right rewards at the right time, a properly structured gamification
introductory phase, early adoption phase, late adoption phase, long maturity phase,        program can prompt dopamine releases in the customer's brain and thereby incent
and eventually decline. For cross-channel marketers, gamification is now entering in its   and reward desired customer behaviors. Even more attractively, many of the best
introductory phase—but many are unsure if it is a true innovation or just another fad.     rewards like leader boards, "leveling up," achievement badges, and social recognition
                                                                                           awards are non-monetary, creating highly attractive ROI scenarios for gamification
The rise of gamification doesn’t mean every brand will (or should) launch its own          marketing. And best of all, it's engaging and fun!
version of Farmville on Facebook—far from it! Cross-channel marketers should
understand that gamification applies certain aspects of games to non-game
applications, capitalizing on behavioral psychology to reward customers for changing             Gamification works because humans
their behaviors. The ultimate goal is to generate greater lifetime value and higher
profits. When properly applied, gamification techniques have been shown to increase
                                                                                                 are innately wired to compete—
customer retention, social sharing behaviors, user content generation, acquisition               even if it’s just against themselves
campaign ROI, and online retail conversion rates.
                                                                                                 or a neutral ‘progress bar.'

                                                                                           A study by M2 Research predicted that the $100 million spent by corporations
                                                                                           on gamification in will rise to $2.8 billion by 2016. Gartner estimates 70% of Global
                                                                                           2000 businesses will be gamified by 2015. Those numbers indicate that gamification
                                                                                           is more than just a fad, but rather a true innovation that savvy marketers should
                                                                                           capitalize on as early adopters.
       Christopher Krohn
          President & CMO                                                                  Game on!

Inspired Predictions for NEW & EMERGING TRENDS                                                                                                                                     35
        The Future of Marketing
              Starts Here
        Deeper engagement through a single point of interaction.

Email   Mobile       Social       Web        Marketing        Data &          Fuel
                                            Automation       Analytics      Platform

                                             Cross-Channel Marketing Automation

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