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The Irish Marketing Report 2015
Leading Growth CONTENTS INTRODUCTION 3 ECONOMIC OUTLOOK 3 2014 THE YEAR OF THE BRAND 4 2015 THE YEAR OF THE EXPERIENCE 5 2014 A REVIEW OF MOBILE 5 MOBILE -­‐ WHAT TO EXPECT IN 2015 6 A FUNDAMENTAL SHIFT IN THE WAY ADVERTISING AND THE INTERNET WORKS 6 THE COOKIE HAS CRUMBLED 7 MICROPERSONALISATION 7 DATA 7 SOCIAL MEDIA INFLUENCE: A NEW EDGE ON CROWDSOURCING 7 LIVE SOCIAL COMMERCE 8 THE INTERNET OF THINGS 8 THE DEATH OF SEO 10 CONTENT REIGNS KING 11 MARKETING IS LEADING GROWTH 11 MARKETING JOB TITLE 2015 12 2015 EXPERIENCE DESIGNER… 12 MARKETING SALARIES 2015 12 SUMMARY: THE FUTURE OF MARKETING IS LIMITLESS 15 The Marketing Institute of Ireland
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INTRODUCTION Last year we saw some critical updates that saw a dramatic shift for marketing, setting a new course for marketers across Ireland. In 2014, Google’s Panda algorithm made a quantum leap in terms of search improvement, augmented reality has started to get very real, and with a growing economy, there was more movement in the marketing jobs sector. This report will walk you through predictions and areas of growth or decline in marketing for 2015 and what will change from those of 2014. The theme of this years inaugural report is, ‘leading growth’. As marketers, we work tirelessly to validate marketing as a viable and core driver of business growth. In today’s consumer-­‐driven world, it is evident that marketers not only have a place at a boardroom level, but with new analysis tools and predictor models, they are becoming the driving force of organisational growth. It is because of this marketing force that more CEO’s of the future will come from a marketing background and 2015 will be the year for marketers to take a step up. ECONOMIC OUTLOOK The Central Bank is projecting an increase of 1.6% in the volume of consumption for 2015. This is a slightly stronger increase on a growth of 1.4% for 2014. IBEC are more optimistic, suggesting that the growth in consumer spending may be as high as 2.9% in 2015.
Towards the last quarter of 2014, consumer confidence rose to +12, which is a record level surpassing even the boom years of 2006-­‐2007. This figure is significantly higher than our neighbouring countries and Ireland is currently one of the fastest growing economies in Europe.
Improved levels of consumer confidence into 2015 are being driven by steadily improving employment figures, which are now beginning to have a positive effect on disposable incomes. The Marketing Institute of Ireland
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The level of unemployment now stands at the lowest level since March 2009. General consumption expenditure was also up, the Central Bank is projecting an increase of 1.6% in the volume of consumption for 2015 as a whole.
2014 THE YEAR OF THE BRAND Many might call 2014 ‘the year of the brand’, where brands were creating their own voice and connecting with their audiences in new ways. An Irish brand who sought a fresh approach to brand communications in 2014 was Zurich. It worked hard to develop a strategy that would position the company as a clear thought leader and champion of financial planning. Following extensive consultation, consumer research and behavioural analysis, the ‘Dear 30 year old me…’ concept was created for Zurich by the team at Javelin. The idea formed the basis of an extensive brand campaign, which saw Zurich successfully differentiated from the competition and which delivered a very significant return on investment. It also won the Brand Campaign award at the All-­‐Ireland Marketing Awards in 2014. Other organisations that have been recognised in 2014 for developing new ways to engage consumers with their brands were Britvic Ireland, Coca Cola Ireland, Lidl Ireland and Lloyds Pharmacy. “I see the key focus for marketers in 2015, to be able to continue to better understand consumer experience, drive the levels of customer engagement, which will differentiate their brands and also meet the expectations that are set across industries to create the level and depth of engagement that will ultimately drive growth in the organisations they represent.” Mark Turner, Associate Partner, IBM Interactive Experience The Marketing Institute of Ireland
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2015 THE YEAR OF THE EXPERIENCE A brand is much more than a logo and a brand campaign is much more than advertising. At every point that a customer interacts with a company, a brand communication occurs, but not only that, an experience occurs. Real branding comprises of mission, message, differentiation and most importantly, a real-­‐life experience with the brand. Brand Managers will evolve into ‘Experience Managers’ in 2015 where it will be about how organisations can create and sustain a strong bond between company and customer. Lasting experiences will be built through personalisation, which will be spread coherently across all platforms and customer contact points. “What’s going to be really important is defining a really good brand purpose, that lives the values of the companies in a meaningful way for consumers. So we can make the transition from a broadcast brand, to an engagement brand. We need that clear purpose in order to have a single and clear engagement strategy with consumers through all the touch points. That’s what can really guide the focus of how we communicate and what we communicate.” Anne Sawbridge, Vice President Global Innovation -­‐ Chocolate, Mondelez International 2014 A REVIEW OF MOBILE
2014 was the year that marketers and organisations started to get serious about mobile marketing and mobile-­‐first design. Last year, 65% of marketers shifted budget from traditional media to spend on mobile marketing1.
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02 Media Mobile Marketing Report 2014
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The Irish Marketing Report 2015
THE TOP MOBILE MARKETING TACTICS OF 2014 69% said a mobile optimised website was on the top of their mobile marketing tactics for 2014 60% Social Mobile 46% SMS 38% geo targeting (representing a 65% growth in the use of Geo Targeting year on year) 17% planned to use mobile coupons 23% admit that they didn’t have a mobile strategy at all for 2014
MOBILE -­‐ WHAT TO EXPECT IN 2015 Multi-­‐device use and new ways of tracking consumers across platforms emerged in the latter half of 2014. 2015 will now see marketers seeking to capture the consumer on their mobile over the course of the day, or between browsers and desktops, on apps and across operating systems like Android and Apple. In our ‘always on’ world, 2015 will be the year that we truly connect with our customers on mobile. According to YouTube’s Chief Executive, Susan Wojcicki, half of all YouTube traffic now originates from mobile devices, which further solidifies the growing shift towards a mobile first audience2. A FUNDAMENTAL SHIFT IN THE WAY ADVERTISING AND THE INTERNET WORKS 2014 saw the year of advertising decline as Google and other online organisations start to move away from forcing users to watch unwanted ads. Speaking at a US mobile conference Wojcicki said: “YouTube right now is ad-­‐supported, which is great because it has enabled us to scale to a billion users; but there’s going to be a point where people don’t want to see the ads.” Google and YouTube are trialing and investigating alternative methods of gaining revenue from viewers as their behaviour shifts evermore towards mobile, says Wojcicki. This includes Google launching a Netflix style subscription model to the internet called Contributor by Google. Mobile consumption is different to desktop in such a way that advertising is not as prominent on mobile. Marketers will need to think of new ways to engage customers online that goes beyond advertising. This is a critical change for marketers to 2
Interview with CEO, Susan Wojcicki at Re/code’s Code/Mobile conference 27 & 28 October 2014
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stay on top of in 2015 as those who shifted marketing spend towards paid advertising last year to push earned, may need to re-­‐evaluate their plans. THE COOKIE HAS CRUMBLED More websites are already looking at alternative ways to track customer behaviour online as cookies are increasingly being blocked by on desktops, and even more-­‐so on mobile. Marketers have also until now struggled with device recognition and device-­‐recognition ‘IDs’, however in 2015 they will become the way of the future as cookies inevitably decline. With device recognition, for the very first time marketers will get a truly holistic view of the customer across platforms, throughout the day. MICROPERSONALISATION Micro personalisation will be more evident throughout 2015 which stems from the new ways of tracking customers across platforms through device recognition ID’s as we discussed above. We will now be able to offer a truly personalised customer experience. It will no longer be just personalised email headings, but the entire customer experience will be personalised based on specific and detailed captured user data. “76% of consumers today expect organisations to understand their individual needs” IBM, Institute for business value, 2014
DATA 2015 won’t be about just about using “big data’’, data will be intertwined into the marketing strategy, it will drive company growth and enable everyday marketing decisions. Identifying the right prospects and delivering the right message at the moment that matters will be the key to success in 2015. According to a Gartner report, 65% of advanced analytics programs will come embedded with an open source program called Hadoop. This program will provide access to advanced large-­‐scale analytics, which can be used to drive sales growth by enabling marketing departments (even small and medium sized businesses) to deliver more informed marketing decisions. Marketers will need to scale up their data and analytics teams to support this explosive growth. SOCIAL MEDIA INFLUENCE: A NEW EDGE ON CROWDSOURCING The Marketing Institute of Ireland
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The power of the media has been in the hands of the consumer since socials inception. Media organisations are now referring and often embracing the “prosumer” (producer-­‐consumer) driven world. Examples of this early in 2015 include the murder of 17 people surrounding the attack on satirical magazine Charlie Hebdo in Paris on January 7, 2015. Throughout the few days of the siege, the media's ability to report on the situation was left in the hands of those nearby, and Twitter had a number of requests from major media organisations like the BBC requesting permission to use photos. “For the first time, it’s the minority that are influencing the majority” for every one person that’s tweeting, there are 7 or 8 listening” Maria Mahon, Vice Chairman of ChinaHR.com
According to new social media aggregator Storyful Chief Executive, Mark Little “If you're not harnessing the power of the crowd, you're going to fail"3. According to the former RTE correspondent, unless organisations understand this business model, media organisations and more will become irrelevant and will miss out. The power of social lies within the consumers hands; they don't need media any more and as soon as companies “get that” says Little, then that's when they'll grow.
LIVE SOCIAL COMMERCE Companies like Twitter have a mantra around ‘marketing in the moment’, but it has gone beyond that now to receiving real-­‐time social transactions. There were a few organisations talking about how they are making social transactions in 2014 and this is likely to increase in 2015. Marketers should be looking into ways that their organisations will harness social transactions if they want to tap into new opportunities. THE INTERNET OF THINGS For those who haven’t heard this term, ‘The Internet of Things’ is the coined term for any electronic device that can and will be connected to the Internet. This includes everything from a coffee maker, a 3
Interview with Mark Little, Chief Executive, Storyful, November 2014, The Web Summit
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washing machine, your fridge, to your car. It will come to a point in the near future that anything that can be switched on will be connected. For marketers, this will mean that we eventually get to the point where we can truly track the consumer at every moment; our ‘always on’ consumer, will become an ‘always trackable’ prospect. The future of the Internet will be people to people, people to devices, and devices to devices. This will mean more companies may share user data and a world of other possibilities.
Gartner, Inc. forecasts that 4.9 billion connected things will be in use in 2015, that figure is up 30% from 2014 and by 2020 it will reach 25 billion according to the research giant. The Internet of Things has become a powerful force for business transformation and its disruptive impact will be felt across all industries and all areas of society. WHAT WILL ‘THE INTERNET OF THINGS’ FUTURE LOOK LIKE? Already real-­‐time mapping is happening; your time of arrival is based on traffic ahead, matched with your speed and previous data. However, with the IOT, your car will be able to communicate with your computer at work, which in turn can send out an email to attendees of a meeting that you will be late for, informing them of your delay. Or with GPS your phone could literally signal to your oven to be switched on and heated ready for your arrive home. What if your fridge did your shopping for you based on consumption habits? There are endless opportunities as individuals and marketers will inevitably capitalise on this. This will start to become more mainstream this year. Obvious concerns will be around privacy and data sharing, which is a big issue today. If you throw in a billion other devices into the equation, it seems it will be a little chaotic. Marketers will need to be prepared for the data influx and to be able to quickly disseminate the vast quantities of data that all of these devices are going to produce. The Marketing Institute of Ireland
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THE DEATH OF SEO In the article “What Do Farming, Hashtags, Pandas and Content All Have in Common?” The Marketing Institute wrote about improbably changes that may happen in SEO. In short, Google’s algorithms are becoming so sophisticated, that it will eventually rule out the value of SEO as we know it. In a digitally focused world, SEO at the moment can literally make or break a business and since Google’s very inception, they have been working on improving standards and tracking in Search. 2014 saw one of Google’s biggest and most significant updates to its main crawler algorithms, Panda, which saw 2014 being the start of the inevitable end of ‘cheating’ the system through effective SEO. The day is fast approaching where Google and other search engines will become a better predictor of what content a person wants to consume than that person themselves.
IN 2015, HERE ARE THE THINGS THAT WILL WORK WITHIN SEO FOR 2015 AND WHAT MARKETERS SHOULD FOCUS ON: 1. Great Content: The context of your content will become even more important than a catchy headline in 2015. Google is penalising poor quality content and will continue to enforce penalties for all who don’t play ball. Providing users with great quality content that is timely and relevant is Google’s number one priority. With the death of organic reach, marketers will need to couple great content with a good social strategy to ensure reach in 2015. 2. Continuously Updated Content: Content will need to be updated and refreshed to ensure it remains relevant. 3. Time Spent on your page: This is going to be one of Google’s biggest ranking factors to determine the best content on the Internet. It also means that any page, which provides false or misleading links (i.e. the user bounces right off), means those irrelevant paid advertising links will fail. It’s looking like there is thankfully an end in sight to those “one weird trick to lose belly fat” ads. 4. Good Content is OK, Great Content is Best: In 2015, it won’t be enough to put up OK, or even good content. Content will have to be great, constantly striving to meet and understand the needs and wants of your consumer. 5. Mobile First: As stated above, over 50% of content consumption is on mobile devices, and this will only increase. Mobile search will overtake desktop search in 2015 and the content you publish needs to be accurate for all screens, no matter what the size. The Marketing Institute of Ireland
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6. Multimedia World: Content that has visual elements, video and written content will succeed over those with one medium as consumers opt for multi channel viewing preferences. 7. Opinions Won’t Count: Like the news, consumers don't want to read biased content. Google’s algorithms will get better at deciphering what is bias content and will start promoting sites to produce fair, honest, transparent content. “The individual centered economy is already here” IBM Digital Reinvention Paper 2014
CONTENT REIGNS KING With SEO becoming obsolete, content marketing will become even more important in 2015 with companies reporting they are increasing their content marketing division. 70% of marketers are saying that creating visual content is their top priority4.
Sean Moriarty, from Demand Media spoke at The Web Summit back in November 2014 and said ‘if marketers are not pushing quality content out there then it’s not worth it’ stating "quality will squeeze out scaled content over time" says Moriarty. 2015 will see a decrease in guest posting as both parties start to understand the penalties and implications for double posting. Matt Cutts, who is the Head of Google’s Webspam team stated back in January 2014 with regards to guest blogging, it was “the decay of a once-­‐authentic way to reach people” and to “expect Google’s webspam team to take a pretty dim view of guest blogging going forward”. 2015 content will be multi-­‐medium, high quality, relevant and timely. MARKETING IS LEADING GROWTH Marketing leaders will be expected to take a lead in the transformation of the company in 2015. Those organisations that adapt their focus from commodity to customer will have the upper hand. Marketing has a critical role to play on the strategic side of the overall business. Marketers who adapt to ensure they are covering some of the areas above, like micro-­‐personalisation, hyper-­‐targeting and recognition ID’s, will be able to attribute enormous organisational growth and performance to the marketing department. 4
2015 Report by The Content Marketing Institute
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Marketers will need to develop a company-­‐wide strategic focus and plan, which means being accountable, not just measurable. This will mean working alongside customer and harnessing their needs and influence to lead change. MARKETING JOB TITLE 2015 2010 Social Media Guru
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2011 SEO Specialist ê
2012 Marketing Technologist ê
2013 Content Creator
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2014 Data Analyst
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2015 EXPERIENCE DESIGNER… Design Leadership “is the largest single source of money that the board does not know about” according to Raymond Turner FCSD, Non-­‐Executive Director of Image Now. The experience designer is the new brand manager. They are a hybrid marketer, data expert coupled with a true understanding of the creative customer experience. They understand customer profiling and how to engage them -­‐ through micro-­‐personalisation and hyper targeting -­‐ to deliver a customer experience that is truly personalised. They know how to market content, they are constantly willing and ready to change according to behaviours and needs of our always on, always adapting customer. MARKETING SALARIES 2015 The Marketing Institute of Ireland
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According to The Marketing Institute’s Salary Survey partnered with Alternatives -­‐ the most comprehensive survey of its type ever conducted in Ireland -­‐ 2014 painted a very positive picture for the marketing industry in 2015. The 2014 Marketing Salary Survey revealed that, in light of a rebounding economy, organisations have firm plans to recruit rapidly to restore marketing teams to pre-­‐
recession numbers. Improved salaries and better pay terms are already back in place and more marketers than ever before are now considering a career move while emerging sectors such as Gaming are creating new roles within marketing at eye-­‐popping salaries and very persuasive incentives. According to the BrightWater Salary Survey 2015 “there is a continuance for innovation specialists with insights and project management qualifications being highlighted. Roles continue to be data driven with analytics and statistics considered vital.”
Key Findings included: 73% said that their company is doing better than one year ago 61% said that their businesses are hiring again The Top 5 areas recruiting for marketing positions now are: ●
Foreign Direct Investment ●
FMCG ●
Agency ●
Utilities ●
Financial services (and after an absence of several years) 66% of marketing career opportunities remain at the middle manager range, while senior level positions are up somewhat year on year, junior, graduate and entry level roles represent 25% of all advertised positions More than 50% of respondents received a salary increase this year The Marketing Institute of Ireland
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60% of those polled scored their level of Job satisfaction / engagement at 8 out of 10 with 70% scoring at 7 out of 10. The factors given for this level of engagement were ●
Meaningful Role (77%) ●
Career Progression (68%) ●
Great Boss (55%) ●
Nice Office (44%) Salaries covered by the survey range from the €190,000 for a Marketing Director in the Gaming industry to the €25,000 salary for a Marketing Executive in many sectors
Manager Level Salaries
At this level, there are over twice as many females as males, as women are increasingly promoted into
managerial roles. Over 83% are currently employed on a permanent contract. Over 65% feel
secure in their current role and 76% see their future in marketing. Salaries are typically in the €45,000-­‐
€90,000 range. Practitioners (average 5-­‐9 years experience) Typical salary ranges from €30,000-­‐€60,000 with usual bonuses of 5-­‐10%. Interestingly, there are more than 2.5 times as many males at practitioner level with the majority employed in Dublin, in a 1-­‐50 employee company and 56% working in an Irish owned company. Highly engaged, over half received a salary increase in the last year. Support Level There are twice as many females than males with 85% working in Dublin and over half work for an Irish owned company, with 44% working in a 1-­‐50 employee company. They are highly engaged, rating their personal level of engagement in their current role as 8/10 (1 being the least, 10 being most highly engaged). The top 3 factors that engage this level personally beyond salary are:
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Career progression ●
A nice office environment ●
Meaningful role Head of/Director
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This is the only level where males surpass females (1.2: 1). It will be interesting to see if this develops over time and whether the larger female representation at lower levels continues as careers progress.
SUMMARY: THE FUTURE OF MARKETING IS LIMITLESS The key focus for marketers in 2015 will be that the old marketing rulebook will no longer apply. The days of the fixed three-­‐year marketing plan, where little or nothing changes are over. The only thing that is constant is change and if you or your organisation doesn’t have that culture and environment in place to adapt quickly, now is the time to make it happen. Organisations should instill a culture of ensuring their staff keep a finger on the pulse; to know what the market is looking for and will demand in any given period of time, and to ensure that the organisation is well positioned to adapt and respond. It is a scary thing for any individual or organisation to not have a structure, or a rulebook, but in today’s fast moving world, you need to develop more disruptive ways to grow, to throw out any rulebook that will limit your thinking. As marketers, our job is to find new frontiers, to think about shifts in business models and to redefine the consumer experience. Every year, it is proven that those who adapt, thrive; those people who thrive are not restricted by boundaries, rulebooks, or limited thinking to the ‘here’, and ‘now’.
“If you do nothing else in 2015 but shift up a gear to a point where you can stand in front of a board and tell them why they need to invest in a plan, why they need to either spend money or enter into a new market, if you can demonstrate, in terms of ROI, to the board, then there is no reason why marketers don’t move centre stage in the organisation.”
Maria Mahon, Vice Chairman, ChinaHR.com
Innovation isn’t just about the product; it’s about the business and the experience. Using those new analytics and customer tracking measures mentioned above will ensure you provide an informed approach to radical thinking that will lead growth for the entire company. No marketer can ensure they optimise their impact on an organisation if they are unable to demonstrate the impact of their activity on the overall organisation. If you are to truly lead growth, and lead a company you need to be thinking both above and across. Given that by now you should have thrown out that rulebook, and you understand the need to change, you should also know that there is no waiting for next years plans. The time is now to change for that is the only constant. The Marketing Institute of Ireland
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