Keeping Up with the Consumer in a Digital World

Geoffrey Ramsey@geofframsey

¡Cuidado con las modas!

It’s Better to Get a Complete, Objective Picture of the

Digital Landscape

“What % of internet users in Mexico go to

social sites?”

Ipsos 68%

Ranstad 84%

Socialbakers 75%

Pew 59%AMIPCI 92%

comScore 91%

CIU 72%

IAB Mexico 87%

It’s Better to Get a Complete, Objective Picture of the Digital

Landscape

Understanding the digital consumer today

Part I

2012

2.3B32.3%online

Global Pop 7.0 BSource: eMarketer, 2012

41%penetrationin Mexico

Global Internet Penetration

Source: eMarketer, 2012

41%penetrationin Mexico

51%by 2015

Broadband penetration tells a more important story for marketers

(% of households)

Source: eMarketer, 2012

Russia 21%Mexico 26%

China 28%Brazil 30%

Argentina 47%

UK 64%

W. Europe 64%Japan 68%US 69%Canada 75%South Korea 92%––Strategy Analytics, 2012

32%

In many countries, the most active internet users spend 20+ hours/week online

Source: Motorola Mobility Study, 2011;comScore, 2012

% of internet users in each country who are 34 years old or younger

Sources: *Roy Morgan Indonesia, 2011; **comScore, 2011; ***Sinomonitor, CNNIC, 2011

2012

3.9356%

penetration

Global Pop 7.0 B

Mobile Phone Penetration

Source: eMarketer, 2012

2016

4.91B67%

penetration

Global Pop 7.3 B

2/3’s

Country% on Mobile(2011)

South Korea 85%

UK 83%

Germany 81%

Argentina 79%

Spain 78%

US 77%

Russia 74%

Canada 67%

Latin America 65%

2015

BrazilMexicoIndia

Middle East/Africa

58%55%39%

36%

2011

73%66%

54%44%

Top markets by mobile penetration

Country 2012 Country 2012 2016

Source: eMarketer, 2012

“¿Y los smartphones?”

––Frederico Carrera, Exponential

Smartphones make all the difference

Mobile VideoMobile

SocialMobile

Coupons

Mobile GamingMobile

Apps

Mobile Search

13% of the global population are smartphone users

Smartphone user penetration in Mexico(as a % of total population)

Source: eMarketer, 2012

Asia/Pacific 12%Middle East/Africa 5%

Argentina 18%Brazil 17%Latin America 15%

US 37%Canada 31%W. Europe 25%

85%access the

mobile Webat least 1X

per day

––Ipsos, 2012

Smartphone ownership skews heavily towards those aged 18

- 34

What about tablets???

% of Population with a Tablet in Mexico*

Millward Brown 3.0%

AMIPCI 5.3%

UM 6.6%*figures adjusted to show percentages based onthe total population

Ya casi, pero...

2.3BOnline(32%)

Source: eMarketer, 2012

2012Global Pop

7.0B

1.5Bon social networks

63% of all internet users

One out of every five people in the

entire world

% of internet users who are on social networks

Source: eMarketer, 2012

88% of online executives in Mexico are on social networks

––Millward Brown and IAB Mexico, 2011

Mexico27.9%

In many markets, social networksaccount for over 20% of time spent online

27272727 27% of timespent online

TweetTweet

@geofframsey

Sources: *eMarketer; **Deloitte; ***comScore; ****Nielsen

What % of internet users are tweeting?

How Are Marketers Doing?

Part II% of global companies who say they have a “highly evolved” digital marketing strategy

10%“What are the biggest

obstacles?

3 BIG CHALLENGES Facing Marketers

#3#3#3#3

#2#2#2#2

#1#1#1#1

10 Billion mobile internet devices by 2016 – Cisco

Understand the “Technology Stack”Consumers expect brands to

keep up with them as they migrate seamlessly across

devices, platforms and activities.¿Estamos

preparados???

In a global study, only 5% of companies can track customer behavior across channels

Today’s Empowered ConsumerToday’s Empowered Consumer

SkepticalSkeptical

ResistantResistant

Lacking Lacking in trustin trust

Data complexity is overwhelming marketers

By 2017, the CMO will spend more on information technology than the CIO

By 2017, the CMO will spend more on information technology than the CIO

¡Ayuda!

“What are the media spending

trends?”

Total global media spending in 2012

Source: eMarketer, 2012

$542.3 Billion

17.4%is spent online

UK 32%

Canada23%

US 22%

Argentina 9%

6.3%

Mexico 10.2%

“¿Por qué no nos dices más sobre el crecimiento en

México?”

What I said at IAB Conecta in 2010

Online ad spending is growing fast in Mexico

Argentina 55%Latin America 31% Brazil 30%

vs. 10% growth for total media

Online ad spending per internet user

Source: eMarketer, 2012

$185UK

$165US

$105W. Europe

$118Canada

$13China

$24Brazil

$20Argentina

Mexico

$14Latin America

$10

Globally, marketers are looking to increase their spending in some key digital channels

Almost half of global marketers are using mobile, and their spending is increasing...

+ 62%

Global

+ 145%

Sources: eMarketer, 2012 (spending increases); Strongmail, 2012 (45% of

global marketers are using mobile)

Despite the interest in mobile, actual spending is relatively small

Source: eMarketer, 2012

Total Global Digital Media Spending$113.7 Billion

Mobile = 6%of total digitalad spending

Social media = 5% of total digital ad

spending

Four Strategies for Success: Marketing to Digital Consumers

Part III“Don’t we need a

whole new approach?”

The interruption/disruption model of advertising will have less The interruption/disruption model of advertising will have less and less effectand less effect

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Push Marketing

Pull Marketing

“Magnetic Content”

“Contenido Magnético”

Strategy #1: Create Magnetic Content to attract consumers

“Contenido Magnético”

Magnetic content can also be useful

ice cream

“In the digital age, all advertising is now

opt-in.”

Strategy #2: Reach consumers––throughout the purchase cycle, and throughout the day–– with multichannel marketing

36% of global companies admit their digital channels are NOT INTEGRATED

“We are researching all channels to come up with the appropriate

consumer journey to accompany their natural path to conversion.”

Top multi-channel marketers balance direct response with branding efforts that create interest, engagement and demand

Awareness

InterestAttitudes

Perceptions

Pre-PurchaseInformationGathering

Transaction(online or

offline)

Shopping & Learning

Discovery

“Use the right channels for direct response, and the right

ones for branding.”

The best direct response channels for driving immediate action

SEARCH

EMAIL

MOBILE

Use mobile as an integrated channel––to allow the consumer to engage further with your brand after being exposed to your offline marketing efforts

A majority of smartphone owners in Mexico search on their phones in response to ads seen in offline channels,according IPSOS MediaCT

The best branding channels for stimulating discovery, curiosity, learning and interest

DISPLAY

SOCIAL

VIDEO

New technologies provide more efficient targeting, often with personalized ads delivered in

real-time

Show vs. Tell• Product demos• Customer testimonials• Entertaining videos• “How To” videos

Strategy #3: Use social media to reach, engage with and influence consumers52%

of social network users worldwide have “liked” or

followed a brand on a social network

– Nielsen, 2011

Social media has the power to influence.

Consumers trust each other more than they do marketers.

How to use a Contenido Magnético approach through social media

1. Leverage the Trust factor Listen and Learn Add genuine Value to the conversation Focus on your Core Brand Enthusiasts

#2. Listen and Learn

New Strategy

¡INTENSIFICAR!

Hello, Adobe, I’ve got a problem!

#3. Add value to the conversation…“Make sure the content you post is what consumers actually want to see and share.”

#1. They expect it.#2. You’ll make them even more loyal.#3. They’ll want

to tell others.

#4. Focus on Your Core Brand Enthusiasts:

Customers

Prospects

Find them via Social Media

Nurture them carefully

Why?

CORE

Strategy #4: Start building mobile into your marketing mix

1. shifts the power even more towards the consumer;2. bridges the gap between the physical and digital worlds;3. should be integrated with your other media4. is a highly personal channel...

¿Y esto?

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% of US marketers who feel highly competent in their use of mobile? 9%

With mobile, focus on providing genuine value or a service to the

consumer, i.e., Contenido Magnético

Another example of Contenido Magnético por mobile

Scan the code and it “tweets about your pint, updates your Facebook status, checks you in via Foursquare, downloads coupons and promotions and even invites your friends to join you.”

“Mobile can add two new exciting dimensions to your marketing efforts.”– Noah Elkin, eMarketer

CONCLUSIONS

• Consumers everywhere are getting deeper into digital platforms, and marketers are struggling to keep up Do your homework––understand what your target consumer is doing online and how you can engage with them Seek to attract, rather than distract, consumers––with Contenido Magnético Be bold. Take risks. Test, measure, repeat.

“¡Sigan adelante!”

“¡Muchas Gracias!”

Geoffrey RamseyChairman, Co-founder

@geofframsey