Twenty13 Trends & Beyond

From interactive video and social media to mobile and emerging platforms, changes in consumer behavior and available technology have ushered in the year of adoption.
Marketers have fully realized the benefits of digital advertising and are placing a stronger focus on more complete digital campaign strategies. In addition, savvy marketers understand the levers within their digital mix that lead to success, graduating from just testing channels and technologies to committing to wide-scale implementation. The Year of Adoption Many in the industry have touted 2013 as the year mobile really happens or the year of RTB and so on and so forth. While this may be true, there seems to be something greater going on 2013 is the year of adoption. The intersection of consumer behavior and technology has reached critical mass and marketers are no longer simply exploring or testing technologies but employing them at scale, moving emerging digital ad strategies from the margins to the mainstream. Rapid innovation has given way to changes in consumer behavior requiring advertisers to respond more quickly to new digital marketing mediums, channels and strategies what was emerging in recent years will be the standard in 2013. The following outlines the trends in relation to technology and consumer behavior that marketers must understand and actively adopt to stay current and achieve success in the year ahead.

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MOBILE/TABLET AS FIRST SCREEN

Consumer Behavior: According to eMarketer data, time spent with mobile is growing at 14 times the rate of the desktop, suggesting that the two could achieve parity as soon as 2015. Further, a growing portion of internet traffic is coming from Smartphones and tablets. Consumers have also begun to use their mobile devices in new ways including mobile commerce, on-the-spot comparative shopping and show rooming, which is viewing products in brick and mortar stores only to purchase them online. These behaviors are only going to grow in the year ahead with not only tech geeks, but grandmas snapping SKUs. Unlike the time it took for online buying to reach critical mass in the 90s, the adoption of mobile wallets will progress quickly. Technology: Advances in Smartphone and tablet technology as well as ownership is reaching critical mass. Improvements in content delivery, streaming speeds and accessibility have given rise to more frequent use while app and mobile web advancements have created better user experiences. Standards in HTML5 and various APIs will ease fragmentation for both mobile web and in-app ad experiences. The MRAID standard is quickly gaining adoption by Publishers easing the operational and technical hurdles to managing campaigns at scale. Mobile video is still being progressively loaded, for instance which is not ideal even when you have fantastic bandwidth because of the measurement constraints and user data plans. Intersection for advertisers: Mobile and tablet advertising is no longer a supplemental strategy but a key part of the marketing mix. Mobile is moving from the moniker of third screen to first screen. Case in point, a recent TechCrunch survey pointed to mobile overtaking desktop PCs as the dominant global internet platform in 2013. Not only must brands build plans that push messaging out via mobile, tablet and other on-the-go display channels including digital billboards and in-store kiosks, but they must create mobile optimized sites as well as apps.
Growth of Average Time Spent per Day with Major Media by US Adults, 2009-2012 % change Mobile (nonvoice) Online TV Radio Print* Magazines Newspapers Other Total 2009 46.7% 6.6% 5.1% -3.9% -12.7% -12.0% -13.2% -10.2% 1.9% 2010 54.5% 6.2% -1.1% -2.0% -9.1% -9.1% -9.1% 6.8% 2.2% 2011 58.8% 7.7% 3.8% -2.1% -12.0% -10.0% -13.3% -4.3% 5.0% 2012 51.9% 3.6% 1.5% -2.1% -13.6% -11.1% -15.4% -20.0% 3.1% Note: data generated on last day of period, based on the previous 24 hours; numbers may not add up to 100% due to rounding Source: Chitika Internet Access Platform Tracker, June 30, 2012 Source: eMarketer, Oct 2012 Web Trafc in North America, by Device, June 2012 % of total Tablet % Smartphone %

7.1

20.3

71.5 %

Desktop

Note: time spent with each medium includes all time spent with that medium, regardless of multitasking; for example, 1 hour of mulltitasking on a PC while watching TV is counted as 1 hour for TV and 1 hour for online; *ofine reading only Source: eMarketer, Oct 2012

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RESPONSIVE DESIGN CREATES BETTER USER EXPERIENCES

Consumer Behavior: As mentioned above, non-PC web usage is increasing rapidly. As consumers continue to utilize devices of varying screen resolutions and sizes it is imperative for marketers to adapt their sites and content to accommodate. Technology: Responsive web design and development enables marketers to deliver a single site that automatically responds to the users behavior and environment based on screen size, platform and orientation such as landscape or portrait viewing on a mobile or tablet device. This creates a positive user experience on a Smartphone, tablet, e-reader and the desktop without the need to build a separate site and content for each device. Intersection for advertisers: Responsive design allows advertisers to be more flexible and effective, creating one website that is enabled for mobile, tablet, PC, and the myriad operating systems within each channel. When it comes to advertising, responsive design will also be important in the year ahead. In 2012, mobile ad design was an afterthought and often resulted in cramming an online display ad into a mobile banner. In 2013, responsive design will come to display advertising at scale, enabling advertisers to deliver device and orientation aware ads. This solves for marketers currently buying, designing and deploying separate mobile, tablet and online display ad tags. Brands and their agencies will longer have to build ads for every possible ad size and device, employing the same responsive principles that website builders are using. PointRoll has already delivered responsive-design enabled ads and expects this capability to grow in the new year. Two responsive ad options are available; first, when an ad tag is rendered on the site it relays visual criteria to the ad server such as resolution, size and other information that prompts the server to optimize all components and images within the ad for the particular device and resolution. The second application relays similar information but the ad in its entirety as one image is modified with only the aspect ratio of the banner and/or expandable panel adjusting.
Key features of Responsive Web Design

Smartphones Tablets Laptops Desktops Flexible Grid Flexible Images CSS3 Media Queries & Screen Resolutions

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SOCIAL MEDIA MARKETING VERSUS SOCIAL MEDIA ME TOO

Consumer Behavior: Consumer mind-share and time-share will be at the forefront when it comes to social networks. Where consumers in years past signed up for and briefly used several channels, many will limit their focus and ongoing attention to 1-2 social outlets. Even those using aggregation technologies such as HootSuite are utilizing them to push their messages out across multiple channels versus consuming content across multiple social networks. Technology: More social media outlets and opportunities will arise be it visual-based sites like tumblr and Pinterest to timeline focused applications like Path. In addition, more robust social media data mining and targeting technology has emerged and will become more applicable in 2013. Intersection for Advertisers: What these two points mean for advertisers is identifying and focusing on only those social channels that drive the greatest return and adopting paid social marketing strategies. The idea that brands need a separate social strategy and to be tumbling, tweeting, posting and pinning across every emerging social platform has given rise to brands understanding they need one marketing strategy and social platforms are a channel to deliver that overarching brand message. Marketers will need to make decisions about which platforms allow them to communicate most efficiently and effectively with their target audience and focus on those, delivering their brand message on only the social outlets that bring not just audience, but active participants. While most brands considered social media marketing in 2012 as adding a Facebook page, Pinterest and Twitter handle to their marketing arsenal, in the new year, savvy marketers will better focus social efforts where their audiences are. Branding will utilize available social targeting and listening technologies and adopt more paid social marketing strategies such as targeted ads and sponsored content in addition to owned pages and profiles. This is key as Nielsen data shows that 15% of users share social ads, 26% Like social ads and 14% make a purchase after seeing social ads. Social data advancements and technologies from companies such as Bluefin Labs, Tracker and Invisably will enable brands and their agencies to better identify their audiences across social networks and focus their time, attention and budgets where they will have the most impact.

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VIDEO GETS MORE ENGAGING

Consumer Behavior: Online video consumption continues at a jaw dropping rate. Consumers are increasing both the quantity of videos they are watching and the amount of time they spend in front of them. Content is increasing to keep up with user appetite. eMarketer projects that by 2014 nearly three-quarters of all US internet users will watch video online at least once per month (Chart on pg. 6 ). Consumers have become more comfortable watching video on the webwhether via smartphones, tablets or desktops opting to watch full length content online as opposed to TV. Further, given the interactive nature of many of devices where a greater number of users are consuming video, video has become more interactive whether the videos themselves, video advertising or simply the ability to link activity from video content to social or other interactive touch points. Technology: 2012 was a banner year for the standardization of video, including advancements in device capabilities, bandwidth and technical standardization which contributed greatly to the increase in adoption. The IAB created uniform solutions that not only enable more scalable delivery of in-stream video, but interactive in stream as well. Vast 3.0 was released in July 2012 helping to open up the in-stream digital video advertising marketplace, reducing expensive technical barriersthus making video advertising easier. VPAID 2.0 was released in April 2012 establishing a common interface between video players and ad units, enabling a rich interactive in-stream ad experience. Consuming video content has become less cumbersome, paving the way for greater availability of content with more consumers ready to watch and engage in 2013. Intersection for advertisers: Just as online display advertising started with simple gifs and ad technology companies like PointRoll pioneered more interactive options, brands and their agencies are insisting on more effective and engaging in-stream video advertising options. As their digital video budgets grow, marketers will expect to get more than the lean back TV-viewership experience out of their in-stream placements and will opt for more interactive executions. PointRoll offers several interactive in-stream packages. These are wizards that help advertisers, marketers and publishers quickly develop interactive in-stream ads that can be deployed anywhere. These packages will provide an element of ease that has yet been unavailable to help get the most engaging ads out there faster. More information will be released in early 2013.

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VIDEO GETS MORE ENGAGING

US Digital Video Viewers, 2010-2016 millions and % of internet users
178.7 187.6 195.5 201.4

145.6 65.0%

158.1 68.2%

169.3

70.8%

72.9%

74.7%

76.0%

76.9%

2010

2011

2012

2013

2014

2015

2016

Digital video viewers

% of internet users

Note: internet users who watch video content online via any device at least once per month Source: eMarketer, March 2012; conrmed and republished, Aug 2012

US Digital Display Ad Spending Share, by Format, 2010-2016 % of total and billions

2010 total spending $9.91 62.9% 2011 total spending $12.33 61.3% 2012 total spending $14.98 57.9% 2013 total spending $17.67 54.3% 2014 total spending $20.69 49.7% 2015 total spending $23.13 47.0% 2016 total spending $25.21 44.8% Banners Video Rich media 31.9% 12.0% 11.4% 30.2% 11.6% 11.2% 27.8% 11.5% 11.0% 23.4% 11.5% 10.8% 19.6% 12.1% 10.4% 16.2% 13.4% 9.1% 14.3% 15.5% 7.2%

Sponsorships

Note: includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets; data through 2011 is derived from IAB/PwC data; numbers may not add up to 100% due to rounding Source: eMarketer, Sep 2012

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SELF SERVICE CULTURE SETS IN

Consumer Behavior: Self checkout at the grocery store, ordering a pizza via an app or show rooming products in brick and mortar stores only to buy them online are only a few indicators of our self service culture. Enabling consumers to access and act on information will be prominent in 2013. Technology: This mentality carries over to digital marketing as providers release technology to enable brands, their agencies and publishers to more easily manage and deploy campaigns. From the self-service nature of real time bidding to automated dynamic creative capabilities and self service tools that enable marketers to more efficiently and quickly build and execute campaigns, self-service will be both a consumer and advertiser trend in 2013. Implications for Advertisers: PointRolls ad building tool, Composer, is a great example, enabling anyone to produce and deliver rich, interactive display ads in both Flash and HTML5, including video and mobile, in minutes and without knowing a single line of code. This tool replaces the need for Flash or HTML5 build knowledge through an easy to use drag and drop interface.

BEYOND 2013
Looking ahead there are key technologies, tactics and trends that will live in the margins in 2013 but are important to keep an eye on as they will become more mainstream in 2014. Some build on the technologies of today including billing on viewable impressions and responsive design-driven ad serving, while others serve to bridge devices and digital behavior such as Auto Content Recognition (ACR). Viewable Impressions: Viewable impressions entered the lexicon in 2012. It is a way for advertisers to understand not only where their ad was served, but where it was actually viewable. A lot of work is still being done to figure this metric out to make sure that we can measure this for each ad served. The IAB is still working on its SafeFrame initiative to ensure that ads served via iframes can be counted. Looking ahead once these challenges are addressed, we can expect to see billing implicationswhere advertisers would only be billed for viewable impressions.

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Near Field Communication: Digital billboards that can respond to you, such as, contactless
communication, is going to gain traction. We will see more significant changes in 2014. This could signal the end of QR codes. This technology will better understand who you are just by proximity (if it is enabled on your phone). Mobile payments is the most near term use case for near field communication. Mobile wallets are already starting to gain traction but useage and the technology will continue to evolve in the coming years.

Auto Content Recognition (ACR): In the next few years, we will really see the proliferation and
new uses of auto content recognition (as currently used in apps like Shazam). ACR recognizes content and provides additional information based on what you are watching/listening to/seeing. You could be watching a show on TV and using your iPad. Your tablet could hear an audio clip from the TV and serve situational advertising based on what you are watching. ACR can connect the first, second and third screens for complimentary experiences.

For more information about this report, or to learn more about these digital marketing strategies and how PointRoll can help you, contact info@pointroll.com.

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