DIGITAL TRENDSReaching the New Digital Consumers across screens and media channels !!!!Thom Arkestaal | Microsoft Advertising

Smartphone sales have overtaken feature phones

0

100000

200000

300000

400000

1Q08 4Q08 3Q09 2Q10 1Q11 4Q11 3Q12 2Q13 4Q13

Feature Phones

Smartphones

Global Mobile Phone Sales | Source: Gartner

‹#›

The mobile hub

114 Million Smartphone Owners in LATAM in 2013

‹#›

The social glue

222 Million Social Network Users in LATAM in 2014

‹#›

33%!Digital Ad Spend Growth in 2014

‹#›Relevant, engaging experiences?

‹#›Or chaotic and overwhelming?

‹#›

“We have created more and more screens crowded with more and more clutter than ever before. If we don’t change, we risk disenfranchising consumers, damaging marketers, and putting people out of business.” !Randall Rothenberg President/CEO of the IAB

00

250,000,000

500,000,000

750,000,000

1,000,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PCs are now a small share of connected devices

Global Connected Device Shipments | Source: Gartner, IDC, Strategy Analytics, BI Intelligence Estimates

PCSmartphonesTablets

Wearables

Smart TVs

‹#›

The importance of multiscreen advertising is increasing…

48%of US marketers say that integrated multiscreen campaigns are Very Important today

88%say that integrated multiscreen campaigns will be Very Important in 2016

We asked 45 early adopters+ industry expertsand surveyed 8,300 consumersin 9 countries“how is your relationship with technology changing?”“what do you want now?”“what will you want tomorrow?”

and asked:

What do t

he

consum

ers thin

k?

Colombia

And identified 8 Digital Trends

Value Me Consumers want open exchanges with brands with rewards for what they share

My analytics More than even, users are online tracking self-improvement goals.

The Right to Anonymity The focus on online privacy demands services that let users control their data.

Niche Networks Consumers crave unique experiences and build personal relationships with brands.

Creator Culture The new coding culture values creativity and anything new.

Intelligently ON People want intelligent, ‘always on’ relationships with technology.

Surprise Me Daily life is full of fun, easy interactions, and consumers want the same online.

Enhancing the Real The best online experiences blur the line between virtual and actual.

And identified 8 Digital Trends

Value Me Consumers want open exchanges with brands with rewards for what they share

My analytics More than even, users are online tracking self-improvement goals.

The Right to Anonymity The focus on online privacy demands services that let users control their data.

Niche Networks Consumers crave unique experiences and build personal relationships with brands.

Creator Culture The new coding culture values creativity and anything new.

Intelligently ON People want intelligent, ‘always on’ relationships with technology.

Surprise Me Daily life is full of fun, easy interactions, and consumers want the same online.

Enhancing the Real The best online experiences blur the line between virtual and actual.

55%

41%

37%

33%

48%

25%

37%

31%

43%

40%

35%

28%

42%

26%

22%

24%

50%

42%

27%

23%

35%

28%

26%

23%

41%

26%

22%

19%

24%

18%

17%

14%

Consumers don’t want to be connected ALL the

time

Brands need to know when to talk and when to

be quiet, and focus on the context

Intelligently ONCONSUMERS WANT TO DISCONNECTAND EXPECT BRANDS TO KNOWWHEN TO BE QUIET OR SWITCH OFF

We don’t want to select profiles or hit Do Not

Disturb buttons

Intelligently ON

30% ALL THE TIMEWANT TO BE CONNECTED

Intelligently ON

79%EXPECT BRANDS TO KNOWTHE RIGHT MOMENT TO TALK TO THEM

Data collected on who you are and what you do, your location and the time of the day mixed

with 3rd party data

Technology knowing you better than yourself

Surprise MeCONSUMERS SEEK TECHNOLOGIES

THAT SURPRISETHEM AT THE RIGHT TIME AND PLACE, AND WHENTHEY ARE IN THE RIGHT FRAME OF MIND

Data collected on who you are and what you do, your location and the time of the day mixed

with 3rd party data

Surprise Me

53%WANT DEVICES TO PROVIDEPERSONALIZED RECOMMENDATIONS AND CONTENT

Surprise Me

63% ARE MORE LIKELY TO BUY FROM A BRANDTHAT OFFERS A PLEASANTLY SURPRISING EXPERIENCE

random acts of kindness

“With a network of influencers and curators and a specialized algorithm, you get not just the music experience only a talented DJ or music expert can deliver, but also the right song for you right now” !

Ian Rogers CEO of Beats Music

We want to control our privacy and have a right

to delete our digital footprint

Consumers are becoming anxious

about the data available about them online

People are deleting any personal data they can to preserve anonymity

Right to Anonymity CONSUMERS WANT TO CONTROL PRIVACYAND HAVE THE RIGHT TO DELETE ANDCONTROL THEIR ONLINE DATA

Right to Anonymity

89%EXPECT BRANDS AND ADVERTISERSBEFORE THEY USE MY DIGITAL INFORMATION

TO ASK FOR PERMISSION BEFORE

Right to Anonymity

76%ARE MUCH MORE LIKELY TO BUYTO UPDATE THEIR PRIVACY SETTINGS

FROM A BRAND THAT ALLOWS THEM

We scan the Internet to find your exposed personal information—phone numbers,

addresses, birth date, relatives, and more—then we help you take it down. Select

the types of information you want removed, and Reputation.com

automatically processes opt-outs on your behalf.

Recap

Smartphone growth Mobile as a hub

Always social

These combined: Better data

Personalization and targeting Expectations on experience

And concerns about anonymity

Always connected

Social glue

As well as timing and relevance

Focus on PLACE, TIME AND CONTEXT to improve the relevance for the consumers

WHAT ARE THE IMPLICATIONS FOR

Reduce the clutter and noise; be seen in the right CONTEXT at the right time - when it’s not perceived as intrusive or chaotic

Build coincidence and surprise into your marketing; it doesn’t have to be complex, but it needs to be relevant. Again – CONTEXT

Ask for permission, and be transparent about how data is used and stored, and offer rewards to build trust

Offer users total control and complete access to their information

Overall… put the CONSUMER FIRST

DIGITAL ADVERTISING?

THANK YOU