Keeping Pace with
Omnichannel Consumers
June 26, 2014
Noah Elkin
Executive Editor
Sponsored by:
©2014 eMarketer Inc.
Agenda
Key omnichannel marketing storylines
Implications of shifts in consumer behavior
Omnichannel behavior in action
How marketers are meeting the omnichannel
challenge
Key takeaways
Twitter Hashtag – #eMwebinar
Key Omnichannel
Marketing Storylines
©2014 eMarketer Inc.
The
underlying
theme:
Consumers
are spending
more time and
money online
Twitter Hashtag – #eMwebinar
5 hours 46 minutes
47% of daily media time
$449B
US B2C ecommerce sales
Source: eMarketer, April 2014
©2014 eMarketer Inc.
Much of retail
ecommerce
spending is
going toward
a few product
categories
Twitter Hashtag – #eMwebinar
$66.4B
Computer & consumer
electronics
Source: eMarketer, April 2014
$52.0B
Apparel & accessories
$31.6B
Auto & parts
The top three account
for 49% of retail
ecommerce sales
©2014 eMarketer Inc.
Marketers are spending more money than ever
to reach online consumers
Source: eMarketer, June 2014
$51B
Total spending on
US digital advertising
$28.4B
Direct response
$22.4B
Branding
$0.2B
Mobile messaging
Twitter Hashtag – #eMwebinar
$22.9B
Search
$3.0B
Classifieds/directories
$2.0B
Lead generation
$0.3B
$10.9B
Banner ads
$3.1B
Rich media
$2.4B
Sponsorships
$6.0B
Video
©2014 eMarketer Inc.
Two-thirds of that spending is concentrated
among a handful of companies
Twitter Hashtag – #eMwebinar Source: eMarketer, June 2014
66%
©2014 eMarketer Inc.
The driving force: Internet penetration is
at an all-time high
Source: eMarketer, April 2014
79%Share of US population that will go online
at least once per month in 2014
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Consumers are becoming “smart”-er
✻164M
users
✻51% of
population
✻147M users
✻46% of
population
Source: eMarketer, March 2014Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Advances in mobile device ownership have
pushed us to a new inflection point
Source: eMarketer, March 2014
12 hours 14 minutes
Total time spent/day
with media by US adults
4 hrs 28 min
Time spent/day with TV
37% of daily media time
5 hrs 46 min
Time spent/day with digital
47% of daily media time
2 hrs
Time spent/day with
radio/print/other
16% of daily media time
2 hrs 51 min
Time spent/day with mobile
23% of daily media time 2 hrs 12 min
Time spent/day with PCs
18% of daily media time
43 min
Time spent/day with other
6% of daily media time
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Mobile’s share of the pie is only doing
one thing: Getting bigger
Source: eMarketer, April 2014
613%Growth in daily time spent with mobile 2010-2014
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Consumers
are focusing
an ever-
increasing
number of
daily actions
around mobile
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
The majority of their mobile time is
spent using apps
Source: Flurry, April 2014
86%Share of time spent using the mobile
internet in the US, Q1 2014
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Gaming and
social
networking
take up the
majority of
mobile app
time
32% 17% 9.5%
Source: Flurry based on comScore/Net Marketshare, April 2014Twitter Hashtag – #eMwebinar
Gaming Facebook Social messaging
8%
Utilities
4%
YouTube
4%
Entertainment
Productivity
1.5%
TwitterNews
4% 3%
Implications of Shifts in
Consumer Behavior
©2014 eMarketer Inc.
Mobile
devices have
moved to the
center of
consumers’
multiplatform
universe
Connected Consoles
Social Machines
Smartphones Tablets
Connected
cars
Connected
consoles
Connected TVs
Wearable
technology
Laptop PCs
Desktop PCs
Smart homes
Ambient
surfaces
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
That
effectively
makes mobile
devices the
remote
control for
our lives
Twitter Hashtag – #eMwebinar
Thanks to mobile, “online” is now a persistent,
anywhere state
Of course, “mobile” doesn’t necessarily
mean “on the go”
©2014 eMarketer Inc.
©2014 eMarketer Inc.
The notion of
the consumer
is shifting
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Lines are
blurring
between
different
consumption
modes
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As a result, today’s path to purchase is more of a
winding road, and less of a straight line
Omnichannel Behavior
in Action
©2014 eMarketer Inc.
Digital
channels are
now the
method of
choice for
both product
research and
purchasing—
among digital
buyers
©2014 eMarketer Inc.
46%50%
4%
PC Smartphone Tablet
74%
20%
5%
Bigger-ticket, higher-consideration purchases
require more time spent on the desktop
40%
44%
16%
Restaurant Auto Entertainment
Source: xAd/Telmetrics/Nielsen, Jan/June 2014
©2014 eMarketer Inc.
The preponderance of mobile activity happens at
the start of the purchase process
51%
24%
12%
24%
55%
37%
13%21%
48%
25%
10%
26%
At the start In the middle At the end Throughout theprocess
Stage of research process in which mobile device was used
Restaurants Auto Entertainment
Source: xAd/Telmetrics/Nielsen, Jan/June 2014
Retailers see the research process continuing
in-store: Is this a threat or an opportunity?
40% of US adults showroom, but only a small percentage
actually buy from an online competitor while in-store
Some
retailers are
leveraging
in-store
mobile usage
to improve
customer
experience
Lowe’s is thinking about
how its customers shop
and where to address
their pain points
©2014 eMarketer Inc.
Mobile devices
are go-to tools
for in-market
auto shoppers
Share of consumers
at location during
last use:
Smartphone – 7%
Tablet – 11%Source: xAd/Telmetrics/Nielsen, Jan/June 2014
How Marketers Are Meeting
the Omnichannel Challenge
©2014 eMarketer Inc.
Reaching consumers across digital channels is
becoming a key focus for CMOs
Source: Mass Relevance/CMO Council, Feb 2014
24%Share of US Fortune 500 CMOs who see it
as their biggest challenge of 2014
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Marketers
need to
consider a
variety of
approaches
to meet the
challenge of
consumers’
cross-channel
behavior
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Just don’t assume it’s a matter of one size or one
screen fits all
“Across different formats you have different
expectations. It’s the same story, the same
content. But it has to appear differently in
the way that consumers expect, and that
means different apps, different devices,
different types of day, whatever it is.”
—Eric Korsh, senior vice president of brand
social.content at DigitasLBi
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Easier said than
done: Most
retailers are
already
multichannel,
but few have
become fully
omnichannel
Data and systems
integration remain big
hurdles to overcome
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Consumer
behavior
shifts already
have started
to affect
media budgets
for brand
marketers and
agencies alike
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Expect this shift toward multiscreen campaigns
to gain momentum over the next few years
Share of US marketers
describing integrated
multiscreen campaigns
as “very important”:
2013 — 48%
2016 — 88%
Twitter Hashtag – #eMwebinar Source: Association of National Advertisers (ANA)/Nielsen, Oct 2013
©2014 eMarketer Inc.
Multiple cross-device targeting solutions are
gaining momentum
Twitter Hashtag – #eMwebinar
ResponsiveDesign
ad
objectives
©2014 eMarketer Inc.
Knowing how to measure is as important as
knowing where to spend
Key factors in measuring campaigns across multiple
media according to US client-side advertisers include:
– Understanding each medium’s impact (78%)
– Understanding the path to purchase (77%)
– Identifying individuals across channels (54%)
– Comparability of online/offline GRPs
Twitter Hashtag – #eMwebinar Source: Association of National Advertisers (ANA)/Forrester Consulting, May 2014
Key Takeaways
©2014 eMarketer Inc.
Key takeaways
Consumer time and attention is shifting from traditional to digital
media channels, and within digital from PC to mobile.
One result is the customer experience now extends along a
seamless continuum from screen to screen and from home to work
to store.
Reaching customers across screens and channels needs to become
a higher priority for marketers.
Achieving a synchronous cross-channel experience will require a
variety of approaches, from media to audience targeting to
attribution.
Twitter Hashtag – #eMwebinar
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Engaging Omni-Commerce
Access a media library to enrich product
catalog views across multiple devices
Deliver personalized commerce
experiences in concert with e-Commerce
providers
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Create Publish Measure Adjust Consume
Omni-Channel Experience
World-Class Integration
End-to-end management as information flows through critical processes:
Superior Digital Experiences
Mobile, Social, Web, ….Any Device
Any Business Process
eCommerce
Processes
Service
ProcessesPublishing
Processes
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Delivering the Digital Enterprise Experience
Discovery BusinessProcess
Management
EnterpriseContent
Management
Customer Experience
Management
Information Exchange
Developer
Tools
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Solutions
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Q&A Session
Keeping Pace with Omnichannel Consumers
Sponsored by:
You will receive an email tomorrow with a link to
view the deck and webinar recording.
Noah Elkin