Location, Real-Time Bidding and Online Privacy Among Trends for 2011

On Dec. 16, eMarketer presented its “Key Digital Trends for 2011” webinar. The speakers included Noah Elkin, David Hallerman and Debra Aho Williamson, all principal analysts for eMarketer.

The webinar listed seven key trends for 2011:

1) Apps Invade All Platforms: While consumers have become used to using apps on mobile devices, the next step will be seeing apps everywhere. This includes mobile devices, desktops and television. Google TV, the Chrome Web Store and the Mac App Store were highlighted as two of the connected devices that will be leveraged to engage consumers via apps. Elkin noted that while the term “apps” may refer to nothing more than plug-ins, the importance of the trend is significant and blurs the line between browsing websites and consuming information. The challenge for marketers is to keep up with the on-the-go content. Half the battle of staying relevant is showing in the right place and on the right platform, while the other half is finding technology that will help marketers identify whether they are achieving that goal, according to Elkin.

2) Content Consumption Convergence: Video was the focus here because of its strengths in conveying emotion and rich experiences, regardless of platform, both in content and in advertising. The webinar displayed data from the Yankee Group showing that U.S. consumers are shifting their video-watching habits away from live TV and toward PCs/laptops and alternative devices, such as mobile phones and handheld game consoles. Marketers need to take advantage of the unique characteristics each platform offers and pay attention to the way devices and context increase the appeal of advertising. For instance, iPad owners had more positive attitudes toward advertising than iPhone users and users of all devices. Larger displays seems to boost the engagement ads have, which is something Elkin encourages marketers to watch as tablets gain popularity.

3) Location, Location, Location: Social networks are becoming increasingly mobile, as recent data from comScore shows that 23.2 percent of U.S. mobile users accessed a social networking site or blog via their mobile devices from in September. eMarketer expects, mobile social network usage to more than double from 38.9 percent in 2010, to 79.1 percent in 2015. Though location-based services are often discussed, they’re still not mainstream in the U.S., as there are 33.2 million location-based service users in 2010. The top reason for using geolocation apps is to get informed, while the most valuable aspect of “checking in” to a location via a mobile app is the deals and promotions that can be found. Not surprisingly, marketing spending for local and national mobile proximity is quickly gaining steam and is expected to reach $750 million in 2011.

4) Social Gets Its Share of Marketing Dollars: “Social media now is an integral part of marketing,” said Williamson. In 2011, 80 percent of companies with at least 100 employees are expected to use social media marketing, up from 73 percent in 2010. The three related trends to this increased usage are increasing budgets, integration and the need to prove ROI. With Facebook continuing its growth, worldwide usage rising and brand interactions increasing, social media is a must for marketers. Additionally, 83 percent of companies plan to boost their social media marketing spending in 2011. However, some industries are jumping into social media more readily than others. While education, communications, services and retail/wholesale have embraced social media, industries like energy/utilities, government and manufacturing have not. Social media is the third most used interactive marketing tactic in the U.S., behind e-mail marketing and e-mail newsletters. Still, the problem of measuring ROI remains.

5) Real-Time Bidding: Display advertising in the U.S. will be a bigger source of spending growth than search for the foreseeable future, according to eMarketer. Marketers who buy ads using real-time bidding bid on impressions based on the specific website, the location of the ad on the site, the number of impressions desired and any potential cookie data for segmentation. This helps marketers buy an audience instead of inventory, and helps publishers sell lesser inventory at higher prices. Targeting is also based on demographic and psychographic data, and is less focused on behavioral information, which mitigates privacy concerns.

6) Targeting Audiences vs. Content: There’s a tension between classic content targeting and the notion that audiences are the only things that matter. In 2010, four types of targeting were used by at least half of all U.S. advertising professionals: data-driven demographic, behavioral, channel and contextual. Digital marketing’s appeal is driven by its segmentation and targeting strengths.

7) Online Privacy Debate Heats Up: There are seven factors driving the debate about digital privacy: 1) consumer concern about being tracked; 2) advertiser-publisher need to monetize; 3) combining online and offline data; 4) rapid growth of Facebook’s ad system; 5) rise of check-ins and location-based services; 6) EU’s focus on stricter privacy protection; 7) consumer choice vs. marketer goals. The more consumers know about behavioral targeting, the less they like it. Meanwhile, 98 percent of U.S. companies say privacy concerns limit or curtail their spending on behavioral advertising. Privacy also has a different meaning to young user and older users. Overall, 23 percent are “very concerned,” 27 percent are “concerned,” 29 percent are “not very concerned” and 21 percent are “not concerned at all.”

Source:

http://www.emarketer.com/blog/index.php/emarketer-webinar-key-digital-trends-2011/