Download Performance marketing at a crossroads

Mobile Consumers
& You marketing
Performance
Connected consumers, disconnected solutions
How to use mobile to your advantage
at a crossroads
tradedoubler.com
The digital advertising landscape has
reached a tipping point. Rapid growth has
resulted in a complex and fragmented array of
platforms, technologies and approaches that
many marketing professionals struggle
to understand.
Tradedoubler believes that it is time for the
industry to take a new approach: to build
an integrated network based on technology
and expertise that will deliver smarter
performance-based results across all platforms,
channels and devices.
This short paper outlines some of the trends that are shaping the digital
marketing landscape and what they mean for the future.
Performance marketing, for long just a component of the system, has a vital
role to play in the future of digital marketing. Its foundations in technology,
quality of traffic and end-to-end tracking make it ideally placed to act as a
springboard for industry-wide integration and innovation.
2 Connected consumers, disconnected solutions – performance marketing at a crossroads
Tradedoubler
How the digital landscape has changed
Consumers are more connected than ever before – and more
distracted. They use a growing number of devices and channels, often
at the same time, to browse, buy, share and communicate
• Just under half of connected consumers are now ‘always-on’, jumping
between three or more devices to stay permanently online1
• Our own research tells us that over half of smartphone owners use their
device while watching television for activities related to the programme
they are viewing (57%) or to buy something they have seen advertised
(59%). This rises to 69% and 71% of tablet owners2
• Consumers don’t see the boundaries between channels, platforms and
devices that advertisers do
• They want, and expect the same convenience, personal relevance and
engagement across all of them
Average number
of mobile devices
per person
S PA IN
S ING A PORE
PORTUG A L
UK
FRA NCE
B E LG IUM
G E RMA N Y
FIN LA N D
N E THE RLA N DS
S OUTH KORE A
JA PA N
Deloitte, Global Mobile
Consumer Survey, 2013
7.2
6.8
5.9
5.4
5.4
4.7
4.5
4.5
4.3
4.3
4.2
“Marketers
are spending
half their time
managing
the complex
technology
ecosystem
supporting
digital marketing
instead of doing
the things they
should be doing
to personalise
customer
experiences.”
CMO.com. 18 July 2014
Brands need robust digital marketing strategies to reach these
consumers – but many are struggling to make this happen
• Three-quarters of consumer brands say that engaging connected
customers is a priority – but only 29% have a strategy in place to target
and sell to this audience, and 37% don’t know how to use data collected
from online sales to inform such a targeting strategy3
• Brands are overwhelmed by the number of marketing technologies they
now depend on. Many want more control over data and platforms in
agency relationships and to have an involvement in customisation4
• Skills shortages are a significant challenge. A study5 shows that only
8% of senior marketers have full confidence in their digital marketing
skills, while 52% of marketers do not test their campaigns or content and
instead rely on ‘instinct’
Tradedoubler
Connected consumers, disconnected solutions – performance marketing at a crossroads 3
Technology is the key driver and enabler in this new landscape:
• It seamlessly connects consumers with brands, advertising and
marketing channels and each other
• It can automate, integrate, scale and simplify processes to accelerate
performance and efficiency and reduce costs
• It lets brands, advertising agencies and others collect and make the most
of growing volumes of structured and unstructured data
€27.3b
the amount
spent on digital
advertising
in 2013
Source IAB Europe AdEx
Benchmark
This has created immense opportunity for digital marketing
and advertising
• Brands have never had so many opportunities to market to and engage
with customers
–By email, text, social media, video, display, search, native advertising
and performance marketing, among others
–Through online, mobile and social channels
–Via advertising agencies, ad networks, ad exchanges, social media
platforms and publisher networks, to name but a few
• This generates vast amounts of data, including browsing and buying
history as well as real-time behavioural, contextual and location
information
–Information that can be tracked, from first click to sale across the
entire customer journey, – providing invaluable insight for campaign
targeting
It has also created an extremely complex and competitive digital
marketing ecosystem:
24%
of advertisers say
targeting is the
most important
factor behind
advertising success
– creativity comes
second at 18%
Source: IAB/WARC/
AppNexus, June 2014
P U BL I S HE R
NE T WO R KS
A DV E RT I S E R S
AD -TEC H
CONSUME RS
P U BL I S HE R S
AGEN C IES
4 Connected consumers, disconnected solutions – performance marketing at a crossroads
Tradedoubler
Between the consumer and the brand trying to reach them are a number
of interconnected layers:
• The ad technology companies that enable or improve the effectiveness
of online advertising; offering tracking, tag management, attribution,
programmatic (automated) advertising that includes RTB (real-time
bidding) and DSP/SSP (demand-side and supply-side platform),
performance marketing, search/PPC optimisation, ad-serving, reporting
and analytics and data management, and re-targeting
• Advertising content publishers that include: ad exchanges such as
FBX (Facebook exchange), ad networks (a group of publishers offering
inventory - now often powered by RTB), as well as performance
marketing programmes and publishers
who serve the online ads in different
formats to the consumer, for example in
email, comparison/voucher/loyalty codes.
Then there are mobile apps, online search
engines such as Google, and social media
• Advertising agencies – charged with
building a brand or achieving consumer
action on behalf of that brand
This fragmented, overlapping,
complicated map of technologies,
customer data sources and systems
has made it difficult for anyone
to truly integrate, understand and
manage the success of individual
campaigns.
The next stage in the journey for digital
marketing and advertising
To meet the brand needs of programme simplicity and clarity, tracking
and insight for campaign optimisation, additional skills and expertise,
and a level of in-house involvement and control, the digital advertising
landscape needs to evolve to deliver:
• A truly unified approach to tracking, reporting, and attributing sales and
interactions
• Single sets of enriched data being used to improve personalisation
through all channels
• Partnership marketing delivered through both private and public
networks
• Advanced technology and data analytics matched by expertise and
account management
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Connected consumers, disconnected solutions – performance marketing at a crossroads 5
Conclusion
The ultimate goal for advertising has always been ‘to show the right ad to
the right person.’
Today’s data-driven, disruptive impact of digital marketing has extended
this to include ‘…in the right way and at the right time.’
What we can aim for tomorrow will depend on our ability to harness
collectively every opportunity for insight and connection. If we get it right,
we will all offer a richer, more relevant experience to customers and greater
returns for advertisers.
How Tradedoubler is evolving to meet
these trends
We believe that it is time to redefine what we do and our place in this
dynamic market place.
We have launched a new strategy to become the leader in delivering
performance marketing results through high quality traffic, technology and
expertise.
This involves extending our core performance-based expertise and
technology to encompass all digital marketing channels.
At the heart of this is an enhanced technology platform that is fully
agnostic, open to:
• Different business models, formats (video, display, email, text etc.)
• All traffic including meta search, comparison, voucher, loyalty email,
apps, vertical, search and social media
• All devices - integrated tracking will allow for reporting of all activity
across desktops, tablets and handsets
• New traffic sources and technology providers
6 Connected consumers, disconnected solutions – performance marketing at a crossroads
Tradedoubler
Weekly overview
Gross booking value
Gross booking value
X,XXX,XXX
-XX.X%
Spend
Sales
XXX,XXX
XX,XXX
ADV
ADV YoY
XXX
XXX
Cost of sale
Converting sites
XXX
X.X%
Converstion rate
Clicks
X,XXX,XXX
By tracking
X.X%
By product
XX.X%
XX.X%
-XX.X%
-XX.X%
-XX.X%
X.X%
-XX.X%
XX.X%
-XX.X%
A data management platform and associated expertise will be a key part
of the new offering. This will enable us to leverage data-driven insights
and tracking across all digital activity to optimise clients’ performance
marketing activity.
The first stage in the new strategy, our new business intelligence tool
ADAPT, is already available.
ADAPT enables digital marketers to quickly access the KPI-based data they
need to make smarter business decisions.
ADAPT delivers detailed live information on programme performance
through customised dashboards that visualise complex data and let users
understand and optimise programme performance.
We are continuing to invest in our world class private network capability
that allows clients to white label our technology and run their top partner
programmes in-house. In the future this will be matched with an end-toend advertising technology offering.
Notes
1 The always-on consumer,
Vivaldi Partners 2013
2 The rise of the
omniconsumer,
Tradedoubler, 2014
3 Open all hours, The
Economist Intelligence
Unit and the Institute of
Practitioners in Advertising,
September 2014
4 CEB, Chief Marketing
Technologist summit,
4 October, 2014 www.
chiefmartec.com
5 Vision Critical for Adobe,
October 2013
Alongside this we will continue to expand and enhance our existing
publisher network.
We offer our clients a performance marketing partnership solution
that is driven by their business goals and KPIs.
Tradedoubler
Connected consumers, disconnected solutions – performance marketing at a crossroads 7
Jane Turner
Marketing Director
E:[email protected]
W:tradedoubler.com