CES 2013: Big Ideas by MSL Global

A Guide to the 2013 Consumer Electronics Show

CH 3 : Commerce+

Table of Contents 5

Introduction

Chapter 1 : Connection Engine

Chapter 2 : Data-Driven Marketing

Chapter 3 : Commerce+

Chapter 4 : Next Generation Storytelling

Thank You

Conclusion

SIDEBAR : Who Is Publicis Groupe?

Welcome

Welcome to Las Vegas and the 2013 Consumer Electronics Show. The Publicis Groupe organization is pleased to have you as a member of our delegation, and we hope that you find the next three days to be invigorating and illuminating. Similar to last year, we have created a custom agenda that includes content sessions hosted by influential industry players, exclusive show floor tours, as well as networking opportunities with some exciting new start-ups and today’s leading media and tech companies. The book you are holding is intended to put the show floor into context. It provides meaningful predictions, recommendations, insights and in-depth expertise from our content experts and participating sponsors across four categories:

Connection Engine: The Connection Engine track will explore how a fully integrated ecosystem provides consumers access to content regardless of the time, place, or device. Data-Driven Marketing: Data is the central nervous system of empowered marketing, giving marketers the opportunity to create order from chaos as we reach today’s consumers. The Data-Driven Marketing track will focus on how we harness big data to capture value. Commerce+: Marketing and commerce have become indistinguishable – consumer expectations have shifted from brand building to brand selling. The Commerce+ track will focus on the ecosystem of technologies and marketing disciplines required to deliver an engaging consumer experience connected across every touchpoint.

Next Generation Storytelling: Despite advances in technology and changes in scale, storytelling remains one of the fundamental responsibilities of marketers and brands. The Next Generation Storytelling track will discuss how three components-human (services), technology (platforms) and content solutions work together to drive storytelling in today's world. Our goal in creating this book, and this entire event, is to enable you to take what your see and learn at CES home with you and apply the most relevant information to your business. Thank you again for joining our delegation, and please enjoy the show! Signed, The VivaKi Planning Committee

Publicis Groupe is the third largest communications group in the world, offering the full range of services and skills: digital (Digitas, Razorfish, Rosetta, VivaKi), traditional advertising (BBH, Leo Burnett, Publicis Worldwide, Saatchi & Saatchi), strategic communication and engagement (MSLGROUP), media buying (Starcom MediaVest Group and ZenithOptimedia) and specialized communication with PHCG (Publicis Healthcare Communications Group). Present in 104 countries, the Groupe employs 56,000 professionals.

Chapter 1

connection Engine

CH 1 : connection engine

Jeremy Lockhorn VP, Emerging Media, Razorfish

Chris Allen SVP, Director of Video Innovation, SMGx

Chuck Schultz VP, Director New Media, SMGx

Christie Hartbarger VP, Connected Devices YuMe

Ed Haslam Senior Vice President, Marketing, YuMe

Jeremy Lockhorn leads the emerging media practice at Razorfish and is focused on scouting opportunities in new channels like mobile, tablet, converged television, game consoles, digital out of home and more. Lockhorn’s team fuels innovation across the agency and helps clients navigate an increasingly fragmented media landscape with breakthrough strategic thinking that makes sense of the noise and separates the wheat from the chaff. He is a 15-year advertising industry veteran, having spent time at offline and direct marketing agencies before joining Philadelphia-based digital agency startup i-FRONTIER in 1997. He teamed with founder Brad Aronson to grow the business and ultimately join forces with Razorfish. Throughout his career, he’s been a trusted advisor to a wide range of top marketers including Best Buy, Weight Watchers, Mercedes Benz, Samsung, Miller Coors and more.

Chris Allen is a key component of SMGx’s Innovations Group and is charged with the development of a video trading platform that will take advantage of advanced audience data to more efficiently and effectively connect advertisers’ messages with consumers. SMGx is a Starcom MediaVest Group (SMG) agency that empowers all SMG agencies to exchange intelligence, test new models and leverage scale to drive marketplace and measurement efficiencies. Prior to his role at SMGx, he was responsible for determining best practices and standards for emerging video technologies, and for investment across these platforms at Starcom USA. An active contributor to VivaKi’s The Pool, Chris helped sell the ASq to 11 Starcom USA clients. In 2010, he was named one of Broadcasting & Cable’s Next Wave of Leaders. Prior to joining Starcom, he was VP at advertising agency GSD&M.

Chuck Schultz plays an integral role within the SMGx’s Innovations Group by focusing on all aspects of emerging technologies and identifying important new media trends. In his role within SMGx, he has responsibility over THE EDGE, which is focused on laying out a visionary road map of the future and provides industry leading thought leadership into the broader organization. With a focus on the “the next big thing” and pioneering new ground within the agency, Chuck is uniquely positioned as an expert advisor to all Starcom Mediavest Group clients and serves as a key advisor across the broader Starcom Mediavest Group. Prior to his role at SMGx, he led the emerging media practice at Starcom Detroit working on the General Motors account for close to 12 years. Prior to joining Starcom, he was with J. Walter Thompson heading up the emerging media practice for Ford and a number of diversified clients.

Christie is a sales and marketing executive with 18 years+ of ad industry experience. Her career spans across digital and print, and some early days in media planning, having worked for CBS Interactive, Time Inc. and Y&R.

Ed is a strategic marketing executive with substantial experience in online media, networked communications, and infrastructure computing. Prior to joining YuMe to oversee Marketing, Ed was co-founder & VP Marketing of Ludic Labs (Groupon), which developed both the social media community Diddit.com and local commerce service OfferFoundry.com. Prior to Ludic Labs, he served as the founding marketing executive for several other venture-backed technology companies including Orbital Data (Citrix) and Inktomi Corporation (Yahoo!).

Christie is currently overseeing national, emerging sales at YuMe across mobile, tablet and connected TV and is in the process of building up their new field marketing team. Her areas of expertise include the ability to create, sell and manage multi-screen initiatives, new product launches and custom content programs. She resides in the Greater Chicago Area with her husband and two children.

Ed holds a B.S. in Structural Engineering, an M.S. in Systems Engineering and ABD in Operations Research from Purdue University.

CH 1 : connection engine

Part 1 : What Is The Connection Engine?

Introduction

The long-promised future is finally here. While it’s unlikely you’ll see flying cars (a la The Jetsons) or a Back to the Future-type floating hoverboard at this year’s Consumer Electronics Show, some of the technologies that were once believed to be far-fetched are now part of our present everyday lives. World Fairs of the mid-Twentieth Century promised computers that could automate household chores (The Roomba), cars that drive themselves (Google Drive) and “picturephones” that would allow people to see each other while they talked (Skype, FaceTime and others). Our current smartphone technology surpasses what communicators imagined in Star Trek. The entertainment and identification technologies of Minority Report will not be far behind.

Our present-day lives are dominated by Web-enabled screens. Phones, laptops, TVs, even household items like refrigerators, thermostats and ovens all have the ability to talk to each other through simple, user-friendly interfaces. And all of them are begging for attention, radically changing the way people interact with content, brands and each other. Increasingly, consumers are accessing content from a variety of different devices in a variety of different venues, all on their own terms. This ubiquitous access to content, regardless of the time and place, driven by fully integrated devices is what we call the Connection Engine.

The era of the single-function device is over. People use their telephones to search the Internet. Cameras connect to wireless networks and post photos to social networks. Teenagers watch entertainment programming on tablets. Consumers are making phone calls through their televisions. Every device, it seems, connects to all other devices, and to each other. It’s the thrill we experience when we bring home a new Apple TV, hook it up, and suddenly our iPhone, iPad and laptop computer are all able to seamlessly connect to the new device over the home network. Pure magic. This type of connected ecosystem is what makes up the Connection Engine, a matrix of systems designed to bring all devices closer to each other while forging deeper, personalized experiences for people with brands and each other. At the heart of the Connection Engine are four fundamental components:

+ Connectivity. Driven by the increasing availability of Wi-Fi and ultra-fast 4G cellular networks, consumers expect an “always on” experience, giving them access to content they desire virtually anywhere. + Devices. Today’s consumer electronics are being developed to either utilize a common operating system or enable cross-communication among different operating systems to provide consistent, familiar experiences from one device to the next. Battles are raging between open and closed ecosystems, but those that are most successful are at least walking some middle ground, with some open APIs and evolving standards. + Content. Driven by connectivity and inter-connected devices, content is becoming increasingly “liquid,” able to be passed and experienced over a variety of devices. Control over the content experience is now in the hands of consumers, giving them the ability to participate directly with the content and content providers, share their experience with others and conduct commerce directly through

whatever device they happen to be using. Also, there is simply more content available than ever before. Lower barriers to production and distribution have created an absolute explosion of content and are enabling content creators to fill the needs of ever-smaller niche audiences. + Data. Services and platforms that tie all of the previous three components together and collect a wide variety of data fuel personalization and discovery of new content. When aggregated, this data is then distilled into meaningful information that powers the economics of the connection engine. As the Connection Engine sees further consumer adoption, marketers will be forced to rethink their consumer outreach programs and understand the ever-changing consumer journey as they attempt to optimize across many different platforms and devices at once. Among the new challenges and opportunities are mobile-enabled shopping, multi-screen content experiences, cross-platform measurement and new business models that flatten commerce.

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sidebar : The Coming Connection Engine Explosion Connectivity In the developed world, Internet access has become an everyday necessity. But as it matures and develops, penetration has hit a plateau. According to eMarketer, 2012 U.S. household penetration of broadband services was 69 percent, with year-to-year growth holding in the low single digits through 2016, a trend that follows in other industrialized nations as well. In emerging markets, however, penetration growth will be in the double digits over the next four years. (Table 1.) At the same time, speedier 4G Long Term Evolution (LTE) mobile networks are expected to grow at a staggering rate all over the world. With more smartphones, tablets and mobile PCs in the marketplace, the number of highspeed mobile subscribers will grow exponentially. To wit: in 2012, the number of high-speed mobile subscribers was expected to be 73MM (up 334 percent from 2011). In 2013, the number of customers is expected to grow to 206MM (a 181 percent increase). By 2016, the number of high-speed mobile customers will be 1.2B, an increase of 1,537 percent over 2012. (Table 2.) The implication for marketers is clear: by 2016, more consumers

in more markets will demand high-speed, high-quality access to wireless and mobile communications through every part of their day. What’s more, consumers will not make the distinction between being on a WiFi or mobile network. They will expect the same experience regardless of how they connect to the Internet.

Table 1. FIXED BROADBAND HOUSEHOLD PENETRATION % of Total Households in Each Group

Devices All over the world, consumers are looking to exchange their feature phones for smartphones that provide a more robust experience, with a mobile browser and apps dedicated to make specific tasks easier. Over the next four years, smartphone penetration is expected to pass feature (aka “regular”) phone penetration in most developed markets, while also maintaining growth in developing markets (Table 3.). At the same time, tablets, a category that didn’t exist three years ago, has exploded. Since their category introduction in 2010, global device sales have skyrocketed from 17 million in 2010 to more than 100 million in 2012. (The U.S. alone had 70 million tablet users in 2012.) By 2015, there will be more than 130 million tablet users in the U.S., representing more than two-fifths of the entire population.

2012

2016

Source: eMarketer, April 2012

Table 2. WORLDWIDE 4G LTE SUBSCRIBERS (MM)

Source: IHS iSuppli Consumer and Communications Market Tracker Report, August 2012

(Table 4.) Worldwide, the numbers are even more staggering, with sales projected to hit nearly 300 million units by 2014. Consumer adoption of other Internet-connected devices including connected televisions, gaming consoles, and over-thetop boxes, while still relatively new to the marketplace, is growing rapidly as well. The U.S. marketplace has led the charge, but global markets are expected to grow at a faster pace over the coming years, particularly in Asia. In 2012, more than 212 million devices worldwide were connected to the Internet, double the number of 2010. By 2017, that number will nearly triple globally, reaching almost 600 million. U.S. penetration of connected devices was 48 million in 2010, nearly doubled to 78 million in 2012, and is expected to nearly double again by 2017. (Table 5.) Taken together, the explosive growth of smartphones, tablets and connected televisions (and auxiliary television devices) will lead consumers to expect more content to work across all of these different platforms, all of the time. Marketers will want to ensure the programs work efficiently across all of these devices in the ways consumers want to use them.

Table 3. MOBILE PHONE PENETRATION % of Total Population in Each Group

Smartphones

Table 5. Connected TV Penetration Number of Internet Connected Devices (Millions)

Source: eMarketer, April 2012

Connected TVs

Gaming Consoles

Over The Top Boxes

Pay TV Set Top Boxes

Blu-Ray Players

Source: Digital TV Research, November 2012 and SMG Analysis, November 2012

Percent of population

TABLE 4. U.S. Tablet Users

Source: eMarketer, June 2012

on a tablet—while only 9 percent of the total time spent—is three times that of time spent for entertainment on smartphones. Among connected TV users, however, the bulk of time is still spent on what we might consider “traditional” entertainment, though they do turn to Internet content as a way to access options not available through traditional distribution or to simply relax. As connected TV adoption grows, however, we expect to see it take on more aspects of the tablet and smartphone experience, notably social networking and casual gaming.

Feature Phones

Tablet users

CH 1 : connection engine

Content Despite consumers’ expectations of connectivity and interoperability of their connected devices, they still tend to use different devices in different ways. Smartphone and tablet users, for instance, engage in a variety of activities on their devices, though those activities are dominated by gaming and

social networking. Yet even among these two devices, the allocation of time varies greatly; two thirds of time spent on tablets is devoted to gaming, compared with 39 percent on smartphones. Social networking accounts for about a quarter of time spent on smartphones, contrasting with 10 percent of time spent on tablets. Smartphones are often pulled out for utilitarian functions: mobile banking, directions and texting, whereas entertainment activities

Despite the interconnectivity of all of these different devices (and the expectations of consumers to have them work together), marketers will need to understand the predominant ways in which consumers use devices (and how they use them differently) and cater content to such device usage. Smartphone applications, for instance, might want to take layout and functionality cues from popular social networking sites (such as Tumblr or Pinterest), while those to be used on tablets or connected TVs will want to make greater use of entertainment preferences, such as casual gaming.

CH 1 : connection engine

Part 2 : context matters

Table 6. GAMING DOMINATES TIME SPENT ON TABLETS Time Spent per Category, Smartphones vs. Tablets

Source: Flurry Analytics, September 2012

Table 7. CONNECTED TV FINDING A PLACE in THE LIVING ROOM Why Viewers Watch Internet Content on Their Connected TV

Source: YuMe/Frank Magid Associates, May 2012

Perhaps the most important thing to remember about the Connection Engine is that though there are seemingly unlimited devices and ways consumers can stay connected, every device is used differently. As evidenced in the sidebar (“The Coming Connection Engine Explosion”), smartphones are used in much more utilitarian ways than tablets or televisions. While we expect to see more crossover in the coming years (paying bills through an Internet-connected television; using a smartphone to watch long-form video programming), the context of the task to be accomplished is the most important factor in driving device choice. In our current connection ecosystem, the phone is still the primary device for people either looking to kill a few minutes while out and about (gaming); or looking for immediate and simple information. Directions, movie times and simple price-comparison shopping are all accomplished easily with a smartphone, and potentially disruptive to a variety of businesses. Mobile phones have irreversibly changed how people

shop, again shining a spotlight on the need for marketers to understand and adapt to the evolving consumer journey. For example, as a consumer’s search for information or content becomes more complex (vacation travel; comparison shopping by feature or through multiple retail outlets), he or she tends to move these searches to more “traditional” devices, such as a tablet or PC (even if those began on the smartphone). We see mobile and its various forms of communication and connection (basic and multimediatexting, quick-response codes, automatic content recognition, near-field communications, etc.) as the connective tissue that brings all of these different devices together, with the ability to activate other media channels. Increasingly, the consumer’s expectation is that their smartphone is the portal (and first step) to everything else in the real world, including marketing and advertising. Moving forward for marketers, having a solid understanding of the consumer journey or path to purchase and the role that each medium, and device, plays along the way, will only increase in importance.

The good news is, many of the newer connected devices are getting smarter about discerning the context in which they’re being used. (Google’s search algorithm on a mobile device places heavier emphasis on location than a PC search in order to deliver more relevant results.) The result is more automation behind-the-scenes and more ease-of-use and utility for consumers, and a greater opportunity for brands to connect with more relevant messaging.

Fluid Content As marketers, we need to understand the variety of ways consumers might engage with us in the digital arena (which is quickly replacing the analog arena), and make sure every piece of content is optimized for each engagement. Already, the proliferation of connected devices is accelerating the shift from live or linear television viewing to a more consumer-friendly (and consumerdriven), on-demand model. Beginning with TiVo and the digital video recorder, on through video-on-demand, Internet video (Netflix, Hulu, Amazon Instant Video, YouTube Channels, and a

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Sidebar : social TV

If any trend has dominated the media industry over the past 18 months, it is social TV, i.e. the push to get consumers to communicate about what they’re watching in real time via social media, texting, live streams and other connective media. While some view social TV as a means to push consumers back to viewing live content on a pre-determined schedule, we believe that genie is out of the bottle and will not go back in easily, if ever. That is not to say the multi-screen/ social TV experience is not without opportunity. A joint Razorfish/ Yahoo! study from October 2011 revealed that 4 of 5 connected device owners are using a mobile device or tablet while concurrently watching television programming. Other studies suggest social media buzz can increase TV ratings and will keep audiences more engaged over time. Perhaps most importantly for TV advertisers, studies have shown significant lift in key brand health metrics when ads run on multiple screens, suggesting a stacking effect. Though it’s possible, even likely, many of these consumers are using their tablets and mobile devices in conjunction with the programming they’re viewing (see Sidebar: Second-Screen Entertainment), it’s clear many of them are multitasking with these devices, doing something completely unrelated to the program they are watching on the main screen. Such behavior

should be a concern to television advertisers, whose messages may be ignored as attention is being focused elsewhere. Like producers and programmers who are developing companion TV viewing applications to keep viewers engaged with programming, marketers, app developers and device makers are working to enhance the advertising experience, developing ways in which mobile and tablet ads can be viewed in-sync with TV programming. While some, like Shazam, are developing tools around “automatic content recognition (ACR),” which recognizes and syncs to a piece of audio content in a program or advertisement, others are looking toward direct-connectivity platforms, (like Apple’s AirPlay or Microsoft’s Xbox SmartGlass), to create a more immersive experience. As on-demand content continues to grow, we expect more experimentation with rich two-screen interactivity for both content and advertising. ONE TO WATCH: Samsung. At this year’s CES, Samsung is unveiling an innovative, crossdevice ad platform that enables mobile phone users to simply shake their device during specific TV commercials to receive content and/or more information about the product being advertised. It is internally dubbed as Project S-Catch.

host of smaller players), anytime/ anywhere content has exploded to become a consumer expectation. Just as cable moved TV from tens of channels to hundreds of channels, the Connection Engine is moving video to practically unlimited video content/channels. Yet, from a content perspective, the industry continues to struggle with legacy business models that have not caught up to these new distribution channels. Ad loads in streaming video are still lower than “traditional” television and will not command the advertising investment at levels to replace the lost TV revenues. While event television, such as the Super Bowl, World Cup, March Madness, MLB Playoffs and Academy Awards, will continue to attract large live viewing audiences, the shift to on-demand programming and

more fragmented viewing channels will only accelerate. (See Sidebar: Social TV) Bottom line, consumers (unless they work in the marketing, media or some other entertainmentrelated industry), don’t care about TV or Internet media revenue streams, usage rights and release windows. They want to watch what they want, when they want and on the device of their choosing. If Napster, Craigslist and other peerto-peer consumer connection sites (along with the collapse of the music and newspaper industries) have taught us anything, it is we must provide consumers with the easiest and best options for the content they want, on their schedules, or they’ll go out and create those options themselves leaving both the media and marketing industries behind. However, as content providers continue to work to meet consumer demands through

more digital distribution channels without cannibalizing existing revenue sources, more challenges arise. We expect to see much activity in this area both at CES 2013 and beyond, as more experimental models that try to link content with revenue launch this year. (See Sidebar: SecondScreen Entertainment)

One To Watch We expect to see continued experimentation with premium streaming video content models, including services that seek to provide consumers even more choice and control over both content and advertising. We are aware of at least one stealth startup in the premium video space that will launch in 2013, with an intriguing new approach that brings valuable new opportunities to consumers, content providers and brand marketers alike.

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Part 3: The Implications

As the Connection Engine develops, media streams will become much more fragmented. Brands looking to remain connected and engaged with their consumers will need to learn to follow the eyeballs across an increasingly fragmented media landscape, and to find the ways that best connect across different consumption environments. It will also be essential for marketers to not only consider the environments through which they’re engaging with consumers, but also the devices most often used in those environments. Messaging and content must be optimized both for the environment where they are most likely to be used (living room, office and sidewalk), and for the device the consumer is most likely using (smartphone, tablet and television). Marketers should resist the temptation to simply migrate an analog ad (such as a static print advertisement) to the digital platform. Ideally, ads should take full advantage of the interactive, immersive and sharable capabilities of new platforms enabled by the Connection Engine.

Sidebar : Second-Screen Entertainment The big screen in the living room remains an extremely effective way to connect with audiences. Yet, it, too, is becoming part of the Connection Engine – both in the form of TVs connected to the Web, and through smartphone and tablet devices used while watching TV. The interactivity, choice, control and instant access to content/information all apply here as well, and it is crucial that marketers deliver on that expectation. While mobile has become an increasingly important platform for brands, marketers should be cautioned against focusing too much on one platform or strategy in isolation. Campaigns and marketing programs should be conceived, developed and produced along a multi-screen strategy, with content that optimizes device capability (while minimizing device limitations), and with the context and environment considered. Marketers must understand that, for the consumer, the brand experience migrates across platforms and devices. They will expect marketers to know them, remember them and recall the interaction you’ve had with them in the past – regardless of platform, device or environment.

Another aspect of social TV that has been getting some attention is the so-called second screen, through which content providers supplement programming (often on the television), with closer looks into programming via a second screen (often a tablet or smartphone). In these early days of second-screen entertainment, content providers are still experimenting with finding the right multiple-screen option that works best with consumers. ABC created an early effort with an app tied directly to its Grey’s Anatomy program. That app has been criticized for ultimately becoming a distraction from the primary entertainment content, the show itself. Other content providers have similarly struggled with providing the right balance for their second-screen programming, and we expect even more hits and misses as the winter television season develops.

Ownership of this secondscreen experience will be a new battleground that we expect to heat up in 2013. While producers, networks and programmers develop apps and companion viewing experiences for different shows, we wonder how many individual apps consumers are willing to tolerate and engage with. Though they may regularly watch a dozen shows, we find it unlikely many consumers will take the time to download more than one or two apps dedicated to individual shows. At CES this year (and beyond), we expect to see a number of startups fighting to be a single “uber-app” that will enhance the viewing experience across a consumer’s entire lineup of favorite shows. Companies such as Viggle (which recently bought fellow startup Get Glue), Zeebox and IntoNow, have already started jockeying for that position (Zeebox, for instance, has support from Comcast, NBCU and others), but no clear leader has yet emerged.

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Key Takeaways

And they will expect to build upon that experience, rather than starting from scratch each time. As consumers engage with content in different ways and across different platforms, they will expect more control in how the content is presented, how they will interact with it, and how they choose to participate with a brand. Such engagement is a key part of 21st century marketing, and smart companies will embrace it, understanding that the more interaction, participation and involvement a consumer has with a brand, the more effective all marketing and advertising will be.

And yes, we’ve said it before, but consumers will reward brand experimentation along multiple platforms. The ideas that seem risky to a marketer have already become commonplace to consumers who are moving much faster in adoption of technology and the Connection Engine than many brands or marketers. They expect to be met where they are, and will not come to you. Seek them out, engage with them on levels they expect and reward them for that engagement with simplicity and seamlessness.

24/7 connectivity is no longer a novelty. For many consumers across the globe, an always-on connection is commonplace.

consumers will expect all of these devices to operate with the same functionality (and to pass information across each other).

Consumers are connecting with brands and each other across a wide array of devices in varied environments. They expect every experience – regardless of device, time or place – to be seamless and intuitive. A dayparted, multi-screen plan that embraces the fragmentation of the Connection Engine is a necessity for most marketers. And, it is up to marketers and media companies to ensure experiences work fluidly across every platform.

Consumers may be using more than one device at a time. Distraction and multitasking will continue to divide consumer attention. It is up to the marketer and/or media provider to offer different engagement levels and opportunities to retain consumers’ attention.

Consumers use different devices in different ways (at least for now). The smartphone and mobile device may be the first level of information gathering, but more complex information searches and tasks tend to move to more “traditional” devices like a PC. Entertainment (including gaming) is still the primary function of the tablet and television. It’s likely many of these functions will converge over time, and

Content must take advantage of device opportunities, while acknowledging and mitigating device limitations. Programming that works well on a smartphone may not translate to the tablet or television in the same way. The consumer journey is in a state of evolution. Overheard at a conference: “The purchase funnel has become the purchase pretzel.” Truer words were never spoken, as the Connection Engine has irreversibly changed the purchase decision process. Marketers must adapt.

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Things to look for

Hardware and software players will continue to find ways to make it easier to migrate content across screens and platforms. Apple’s AirPlay has enabled this for years, and Microsoft has brought the capability to Xbox. Samsung and other manufacturers are building their own methodologies as well. The line between the device types is blurring. Operating systems like Windows 8, which adopts touchfirst interface that is similar across desktop, phone, tablet and TV, is only the beginning. This, along with the development of smaller devices will mean more portability, simplicity and connectivity. We’re expecting a bevy of laptop/tablet convertible machines built to leverage Windows 8.

Device manufacturers will continue to experiment with touch, gesture and voice controls, trying to make the user experience simpler, more immersive and intuitive and seamless among different devices and operating systems. The Internet of Things will take hold. Beyond the devices we’re already aware of and use daily, more and more common devices will begin to connect to the Internet, providing realtime updates and information in places we may not have thought of before. (Nest Thermostats learn a person’s habits while determining when and how to turn on a furnace; Google is developing Internet-connected glasses; Ambient Displays, which provide real-time information at a glance, will become more prevalent—and a significant part of digital out-ofhome advertising.)

Chapter 2

Data-Driven Marketing

CH 2 : Data-driven marketing

Rob Jayson Chief Data Officer, ZenithOptimedia Rob Jayson leads ZenithOptimedia’s worldwide data strategy, a role he assumed in 2012. A combination of continual innovation, robust analytics and tools development have allowed him to be instrumental in finding new and exciting ways to approach communications planning. As Chief Data Officer, Rob oversees the agency’s Global Analytics Center (GLANCE), collaborating with ZO entities such as Ninah, Performics and Moxie. He also manages the implementation of the ZO Datamart and reporting tools suite, and focuses on brandspecific data strategies, such as ZenithOptimedia’s “Live ROI.” Most recently, Rob served as President of Strategy for Zenith where he was responsible for developing communication planning methods, ensuring planners led their clients and the industry in creating unique and powerful communication strategies.

Dave Morgan CEO, Simulmedia Dave Morgan is the CEO and founder of Simulmedia. He previously founded and ran both TACODA, Inc., an online advertising company that pioneered behavioral online marketing and was acquired by AOL in 2007 for $275 million, and Real Media, Inc., one of the world’s first ad serving and online ad network companies and a predecessor to 24/7 Real Media (TFSM), which was later sold to WPP for $649 million. After the sale of TACODA, Morgan served as Executive Vice President, Global Advertising Strategy, at AOL, a Time Warner Company (TWX). He serves on the boards of the International Radio and Television Society (IRTS) and the American Press Institute (API), and was a long-time member of the executive committee and board of directors of the Interactive Advertising Bureau (IAB).

Bryan Scanlon President, Schwartz MSL and North America Technology Director, MSLGROUP Based in Silicon Valley, Bryan Scanlon is the president of Schwartz MSL, a global public relations agency specializing in the technology, health and energy innovations that transform business, preserve the planet and save lives. He also leads the MSLGROUP North America Technology Practice, helping clients move innovation to the forefront of their brands, and specializes in information security, big data and analytics, and datadriven thought leadership and marketing programs. Scanlon has a 20-year track record of building awareness, valuation, sales and brand equity for some of the most successful technology companies. He’s taken many clients from start-up to market leadership and reinvigorated established technology brands. This includes work with Red Hat, Netezza, Symantec, ServiceNow, Hortonworks, Blue Coat, webMethods (now Software AG), Imation, LifeLock, ESET and MicroStrategy. You can follow him on Twitter @bkscanlon.

Matt Spielman SVP of Strategy, Moxie Matt Spielman is the SVP of Strategy for Moxie, a full-service digital advertising agency within the Publicis Groupe. He heads the digital AOR and leads the strategy and innovation initiatives for L’Oreal USA. Prior to joining Moxie, Spielman spent six years at MTV Networks where he helped build the network’s Client Solutions Division, working with senior marketing clients to develop and deploy marketing initiatives that leveraged the entirety of MTV Networks properties, brands and assets across all media. He also served as Vice President of Business Development and Account Management at IAG Research (acquired by Nielsen). At IAG, he oversaw a research team that advised senior marketing executives and their agencies on the effectiveness of their TV and in-theatre marketing efforts and made recommendations on how to improve their results.

CH 2 : Data-driven marketing

Part 1 : The Rise of Big Data

Introduction

The world is awash in data. Every time a consumer uses a credit card, a purchase-history is created. Loyalty programs grant companies and retailers access to consumers’ purchase patterns and preferences. Every mouse click leaves a trail to follow. We know more about consumers than ever before, and they know more about us. All of this data can be empowering, or it can be daunting. More information means greater insights, smarter thinking and better decisions all around. But with new data coming in every day, we can become subject to “analysis paralysis,” delaying decisions and programs until we get the most information possible, to be sure we’re making the right decisions. The key is for us to recognize that data is not information, nor is information the same as insights. Instead, we have to process data to reveal insights on a timely basis that can be actionable. Fifteen years into the Information Age, we’re just figuring out what it all means. We have access to more data and information than

ever before, but we’re still trying to figure out what information is good and what is bad. What information is truly effective at increasing our ROI, and what is just more “white noise?” We’re only now beginning to understand what works and what doesn’t. But even as we do, more information is presented to us, sometimes reinforcing our marketing programs. Sometimes, it requires them to change completely, on a moment’s notice. The need to be nimble, agile and flexible has never been greater. We have reached a point where the art of marketing and the science of data are completely intertwined, and are ever more inseparable. It’s time to learn how to harness the ever-increasing streams of information (mobile and social alone are creating a large number of data sources) and use them to our benefit—just as consumers are doing with the information they get. Rather than making our marketing datadependent, we need to make it Data-Driven.

1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition, and productivity,” June 2011 2 Ibid. 3 Hilbert and Lopez, “The world’s technological capacity to store, communicate, and compute information,” Science, 2011

Data has always been a centerpiece of marketing. From decades-old techniques such as consumer research surveys, product purchaser panels and customer relationship marketing to newer, financial-market approaches like time-series modeling, chief marketing officers have always looked to data and analytics to drive their decision-making. In the modern age, however, two critical changes are transforming the marketing landscape in ways we could not have imagined. First, there has been a huge increase of available data to track consumer attitudes and behaviors in real time. Second, we as marketers have increased our ability to blend and filter that mass of data into actionable insights that shape marketing campaigns at the strategic and the tactical level. The explosion in consumer data is massive and exponential. According to the McKinsey Global Institute, the volume of consumer information generated in a year has exceeded six exabytes. That number – one that we cannot even really define – would fill more than 60,000 U.S. Libraries of Congress. It’s more than every word spoken by humans if they were to be digitized as text. 1

That’s what consumers and data companies are producing and storing every year. According to McKinsey, “The increasing volume and detail of information captured by enterprises, together with the rise of multimedia, social media, and the Internet of Things will fuel exponential growth in data for the foreseeable future.” 2

Data, while exploding, is becoming easier to manage, combine and evaluate. Martin Hilbert and Priscila López in Science magazine analyzed global storage and computing capacity, and found that not only is our ability to accumulate and store data growing, but storage capacity has become almost exclusively digital (as opposed to analog). 3

Data storage has grown significantly, shifting markedly from analog to digital after 2000 Global installed, optimally compressed, storage Detail % : exabytes

Overall Exabytes 100%=

300

Digital

250

295

200 150

Analog

97 75

100 50

0 1986

1993

2000

2007

1986

1993

2000

NOTE: Numbers may not sum due to rounding. SOURCE: Hilbert and López, “The world’s technological capacity to store, communicate, and compute information.” Science, 2011

2007

CH 2 : Data-driven marketing

Sidebar : are you prepared?

This change in capacity and digitization of data storage has huge implications. We now have a window into consumers’ lives and almost every aspect of their relationship that they build with

the brands we market to them. We also have the potential to manipulate, match and manage that mass of data in almost limitless ways. (See Sidebar: Are you prepared?)

Percent of CMOs reporting underpreparedness 50% Data explosion

71%

Social media

68%

Growth of channel and device choices

65%

Shifting consumer demographics

63%

Financial constraints

59%

Decreasing brand by loyalty

57%

Growth market opportunities

56%

ROI accountability

56%

Consumer collaboration and influence

56%

Privacy considerations Global outsourcing Regulatory considerations Corporate transparency

issues that could be resolved with the help of Big Data and prioritize them. The most critical and beneficial step that any brand leader can take, in order to start the process of harnessing the power and insights of Big Data, is to establish a data strategy and a set of key performance indicators (KPIs) that outline in detail the direction of insights that are needed from data analysis in order to increase marketing ROI.

We all know the era of Big Data is upon us. Yet, many in the industry are still unprepared. A recent IBM CMO survey showed that – while CMOs understand in no uncertain terms how critical Big Data is to their future success – many admit they have yet to find the correct techniques and management approaches. Forrester, meanwhile, surveyed business decisionmakers about what they viewed as their most critical challenge in putting Big Data to use effectively. The responses were all over the map, and the fact that there was little consensus shows that each organization needs to set its own priorities about how to tackle Big Data.

The systems and data priorities that are established will clearly be significantly different if the organization’s top Big Data priority is about the ability of the internal organization to share data in real time as opposed to a primary challenge of not getting access to real-time data at all.

However, no task is more essential than to examine all of the potential

TABLE 2 Biggest challenges to use of “big data” for marketing

We have too little or no customer/consumer data

55%

29%

54% Our data is collected too infrequently or is not real-time enough

50% 47%

39%

The lack of sharing data across our organization is an obstacle to measuring the ROI of our marketing

We are not able to link our data together at the level of individual customers

We aren’t using our data to effectively personalize our marketing communications

51%

42%

45%

CH 2 : Data-driven marketing

Part 2 : The Live Data Stream All of this data is being set up for another revolution: the Live Data Stream. With powerful portable devices and alwayson connections, consumers are constantly feeding a stream of data—in real time—about brand attitudes, feelings and behaviors. This data, can be harnessed and turned into actionable insights. Thanks to smartphones, tablets and other connections, consumers have turned to digital channels to supplement their knowledge, behavior and attitudes to brands. This has dramatically increased the volume of real-time or live data that brand owners and agencies can access to illuminate up-tothe-minute changes in brand metrics. But those metrics aren’t coming to us in the easily defined and “traditional” formats of past consumer behavior. Rather, they are coming in the forms consumers have already embraced, like social media. Even more is coming. According to an eMarketer forecast, social network growth, although slowing,

SOCIAL NETWORK USERS AND PENETRATION IN NORTH AMERICA millions, % of internet users and % of population

163.9

174.7

181.9

Smartphone owners lead the way in “connected viewing” experiences % in each group who have used their phone in the preceding 30 days to... SMARTPHONE OWNERS (N=904)

OTHER CELL OWNERS (N=1050)

58%

17%

Check whether something heard was true or not

Visit a website mentioned on TV

Exchange text messages with someone watching the program

Post your own comments online about a program you were watching

Vote for a reality show contestant

189.2

Keep yourself occupied during commercials or breaks in what you were watching 63.6%

65.8%

66.9%

68.0%

47.2%

49.8%

51.4%

52.9%

See what others were saying online about a program you were watching 2011

2012

2013

2014

Social network users % of internet users % of population

NOTE: Internet users who use a social network site via any device at least once per month; includes Canada and the US SOURCE: eMarketer, Feb 2012

will grow to cover more than 50 percent of the North American population through 2014.4 Every “Like” of a brand on Facebook, and every brand-name hashtag on Twitter is another piece of data that can be used to inform marketing, but each comes with its own set of rules and parameters.

4 eMarketer, “Social Network Users and Penetration in North America, 2011-2014,” February 2012 5 Foresee 2010 Retail Satisfaction Index

Facebook and other social media are not the only sources of live data, and they are not the only cause of the explosion. Smartphones have become

a constant companion for consumers, and are used during their traditional media experiences. Pew Research shows that 74 percent of smartphone owners use their device while watching

TV for a multitude of purposes. Some use them to multitask, conducting online searches for information. Others post to their social media feeds. Still others use their phones to participate in promotions they’ve seen advertised on television, or through their secondary online browsing. Each one of these data points tells us something different about the effectiveness not only of the message, but of the channel and attitude of the consumer to the brand messaging they’re being exposed to at that very moment. Recommendation engines are a perfect example of how brands have structurally adjusted to the benefits of Big Data analytics to great advantage. Amazon (and most other e-retailers) have developed effective real-time recommendation engines based on analysis of massive amounts of real-time data to engage shoppers without resorting to traditional mass, untargeted pricing and discounting. The ability to create personalized, helpful suggestions for consumers has had a significant impact of customer satisfaction data, and there is clear evidence that satisfied customers are more likely to purchase, be loyal and to recommend a brand.5

Part 3 : From Automated and Tactical to Predictive

Sophistication level* of their current personalization efforts according to US retailers, q3 2011 % of respondents

7-10 13%

1-3 54%

4-6 33%

Learning how to harness and manage this data can yield huge returns. Nucleus Research found organizations can earn an incremental ROI of 241 percent by using Big Data capabilities to examine large and complex data sets. These returns are the result of improved business processes and decisions through optimizing the increased types of data available and the ability to monitor the factors that impact a company most, such as customer sentiment, by scouring large external data sources such as social media sites. These abilities are the hallmarks

of a Predictive Company (as opposed to a Tactical, Automated or Reactive one.) Nucleus Research identified four critical areas of benefit to big data analytics that organizations can realize from the use of Big Data: 1. Big Data solutions that encompass vast data sets enable solutions that link all aspects of the business together. Retailers can link insights about their loyalty program customers with in-store behavior and social behavior.

1400%

The data that would allow brands to personalize the experience in real time for consumers is already available, and some brands are finding ways to put it to work. That said, brands are still a long way from being able to deliver on that opportunity. The e-tailing group surveyed 131 mostly large and mid-sized Web merchants in Q3 2011, and found that more than half gave themselves poor marks in their personalization efforts.

To manage this ever-increasing, live-stream of Big Data, organizations must set themselves up internally to respond to the insights available. Brands must adjust their internal processes and marketing plans in ways that will enable them to immediately respond to consumers’ actions as information is received. Consumers have embraced social media and other live interaction opportunities with brands. It is incumbent on the brands to respond in-kind with immediate, personalized responses.

2. Big Data accelerates decisionmaking. Customer churn, for example, can be addressed in real time, rather than only fixing issues that contribute to churn long after a customer has left, live-data analytics can uncover and suggest solutions for better customer retention as they emerge. 3. Combining external data with internal data adds significant value to internal data. Adding geographic, meteorological or other external datasets creates much more sensitive analytics. 4. Big Data analytics is critical to successful online sentiment monitoring. The ability to define meaningful results from “noise” is not really possible without new Big Data techniques.

NOTE: *on a scale of 1-10 where 10 = “very sophisticated” and 1 = “not at all sophisticated” SOURCE: the e-tailing group, “Prioritizing Personalization For Growth,” Nov 11, 2011

1200%

RETURN OF INVESTMENT

CH 2 : Data-driven marketing

1000% 800% 600% 400% Predictive Strategic

200%

Tactical Automated

0% Automated

Tactical

Strategic

Predictive

Yes, these changes are difficult. And it may require years of “unthinking” the practices of the past. But marketers who can make the attitudinal and structural modifications to realize the full benefits of Big Data will reap significant rewards. Moving from a tactical/reporting position to a strategic and predictive approach will generate a measurable increase in marketing ROI, and a significant lift in business. (See Sidebar: Moneyball)

CH 2 : Data-driven marketing

Sidebar : Marketers Must Play ‘Moneyball’ The popular book and film "Moneyball” illustrated how the smart use of data and statistics transformed a 150-year-old sports pastime and business. The same is happening with advertising. For years, baseball had been managed according to gut instinct and near-mythical truisms. In the early 21st century, one outlier, Bille Beane, used data, statistics and financial market-like techniques to bring success to a payrollchallenged team. Beane's use of sophisticated data analysis to identify which player statistics really mattered—a player's on-base percentage rather than batting average, for example—gave him a real advantage in finding players who were undervalued by his competition. These days, the research and insights Beane used have become commonplace among his competitors and all of Major League Baseball. Marketers must apply the same game-changing insights to the information available to them. For marketers, the data explosion is

3rd Party Data

1st Party Data

planning data

not just about online messaging exposure and real-time response. Now, there is real-time behavioral data on our customers, allowing us to figure out their level of interest in our brands, their loyalty and potential for incremental crosssales. Matching first-party data from brand customers with thirdparty data from other online and offline sources, can give marketers and their agencies unprecedented insights into the relationship of media and messaging at the campaign and individual spot basis to specific brand customers and their actions.

database management platform

These Database Management Platforms, where we collect and analyze the Big Data that comes from brand customers as well as other online behavior, offer the potential to make strategic and tactical marketing decisions based on a mass of statistical data and analysis that has never been available before. To stretch an analogy, we can draft new target audiences, never before considered based upon the behaviors we have seen from the data analytics on current customers and potentials.

As media become more digital— and, as a result, more targetable, measurable and accountable— these analytics will be crucial. Even television, which has long resisted change is changing fast as more of it is delivered through digital set-top boxes, over Internet protocol networks or on the tens of millions of new smart, Internetconnected TVs and companion devices that are shipping around the world this year. Not only will these new TVs connect directly to the Internet, but they will run Web-based apps, link new cloudbased streaming services and also produce a treasure-trove of data and direct consumer-viewing measurements, which will open up TV advertising to Billy Beane-like transformation. This does not mean that the “art” of the media industry will be forever trumped by “science.” However, decisions about which media to buy will no longer be driven by history, comfort and relationships. Data and predictive science will drive more and more media decisions. And the results will solve many of the problems plaguing our industry. Such as: Wasted frequency. In most massawareness TV ad campaigns in the US today, 80 percent of the spots end up being delivered to only 35

percent of the target audience, and a full 30 percent of the desired target receives none. The culprit? Audience fragmentation. Fifteen years ago, that 80 percent was spread to more than 60 percent of the target, and the size of the unreached target was very small. Now, data analysis is being used to determine the exact makeup of a show's audience and to perfectly measure and manage the reach and frequency of TV ad campaigns with online-like frequency capping. Finding elusive audiences. Trying to find young males outside of sports content? Hispanic audiences within English-language content? Or light TV viewers you can't reach efficiently with broadcast-centric prime-time campaigns? Data will find them. Marketers will discover gold using data to aggregate valuable audiences from unconventional places. Creative testing. With robust cross-channel data, you can now know which viewers abandon your ads and which viewed them. Not only will we learn which audiences actually like our ads, but we'll be able to test and optimize creative

units in live environments. Think of the improved efficiency if we can get audiences to stick around and watch ads because the data tells us which ads will stick with them. Secondary measurement and promises. Nielsen, comScore and panel ratings aren't going away. Macro audience ratings will be with us for a long time. However, those measurements will be supplemented with micromeasures of exact audience patterns, which will be baked

into ad campaign deals. Imagine delivering your Gross Ratings Points with set-top box databased guarantees of specific audience compositions—such as frequent moviegoers who like dramas, or Coca-Cola brand fans— or guarantees of attributed sales by linking household-level viewing data with actual purchases. We’ve moved into the “Moneyball” era. Are you ready?

Becoming a Predictive Company, however, will require changes in the ways many do business, both at the macro and day-today levels. In a world soon awash in Big Data and opportunities to use it, one thing is clear: there are not enough people in today’s marketing organizations with the level of experience in using Big Data to make companies successful in the future. And many of these organizations do not have the right tools and processes needed to survive—much less thrive—under the coming tidal wave of information. In the Big Data-driven world, marketing organizations need to infuse themselves with experts. Mathematicians, scientists, statisticians, software and hardware engineers. All will be important to companies looking to harvest and harness Big Data and turn it into useful, actionable information. It’s a page from the playbook of today’s fastestgrowing digital companies. Look at the hiring practices of Google, Amazon, Apple, Microsoft, Facebook and Twitter. Employees in those companies are different from those hired by traditional marketing and media companies. They possess:

Analytics and data science job growth Analytics and data science job starters (as a percentage of all job starters)

CH 2 : Data-driven marketing

0.1

0.09

0.08

0.07

0.06

0.05

0.04

0.03

0.02

0.01

0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Tech-savvy leadership. Not only are the most successful digital companies well-stocked with engineers, scientists and techcentric product managers, but technology is the primary skill set of their leaders and their workers. They drive the businesses, the products and the core strategies.

Hard science. Many marketingrelated companies, particularly in media, still rely on qualitative “social” science in much of their decision-making, not the kind of quantitative sciences needed to exploit Big Data. Yet, hard numbers are the new reality of

CH 2 : Data-driven marketing

the advertising and marketing industry. Marketers need cognitive scientists, statisticians, mathematicians and physicists. Diversity. In fast-growing digital, data-driven companies, diversity is a competitive advantage and a business imperative. Impatience. Companies like Amazon, Google and Apple have relatively flat organizational cultures, and their employees have no time or patience for the kind of long, escalator-like ride over decades to reach leadership positions that exist in many nondigital companies. They know what they want and they want it now. Versatility. In traditional marketing organizations, many folks are “bucketed” into roles and silos during early stages of their careers and find success through focus and unique expertise. Invariably, some of the strongest talents in emerging, digital and data-driven companies have degrees that span both science and arts, work better horizontally than vertically, and take pride in constantly changing gears in their careers.

However, hiring the best is only part of the equation. (And a very difficult piece at that. There is a limited pool of emerging talent with Big Data skills, and competition for the best is intense—much like the competition we’ve seen for computer scientists over the past 10-15 years. It’s a certainty that demand for data scientists will outstrip supply for years to come.) Companies must also adjust, adapt and improve their internal processes and procedures to ensure they’re set up to capitalize on the information and insights created by these streams of Big Data. Among the things they need to keep in mind: Big Data technology is getting bigger, better, faster and cheaper. Innovation in analytic tools, systems and platforms has exploded over the past few years, particularly in the opensource community. Open-source data management technologies like Hadoop and pay-as-yougo cloud-based data services like Amazon Web Services and Mongo Database are replacing comparable data management systems from companies like IBM, Oracle and Teradata that cost

millions upon millions of dollars. In many cases, enterprises can build or buy analytic data warehouses that are 100 times bigger than those available 10 years ago - for 1/100 the cost. This means companies with data technologies that are only five years old will find themselves at significant disadvantages in both capabilities and cost structures to competitors with new technology. Investments in new data technology on a regular basis will be critical for marketing enterprises to remain competitive. Data analytics is becoming more broadly accessible across organizations. Not only can these new data systems store massive amounts of data, but they can also manage unstructured data, giving users far more flexibility in how they organize, manage and query the data. This is helping companies make data much more accessible and available across organizations. Whether it is trying to understand purchase behaviors of target customers or sales attribution to social media, what was once

the domain of the research department is now available to managers at all levels of marketing organizations. (See Side Bar: Trust and Security) Investing in new employees, technologies and processes to better serve Big Data is not an option. Companies looking for competitive advantages will target these three areas for strategic, competitive and market share growth. Those that do not will be left behind. The era of Big Data is upon us. Thanks to the tools of the Connection Engine (smartphones, tablets and super-fast, alwayson connections), consumers are giving marketers a wealth of actionable information. It’s up to marketers to turn that information into valuable insights and programs that reward consumers based on their needs, information and realities. The data is coming in real time and marketers must react with the same spontaneity. Information moves at the speed of light; marketing programs will have to move just as quickly.

CH 2 : Data-driven marketing

Sidebar : Big Data: Big Security Needs Fifty-five percent of CMOs feel unprepared for the privacy considerations in the exploding digital world (Source: 2011 IBM CMO Study). In March of 2012, the Federal Trade Commission (FTC) published “Protecting Consumer Privacy in an Era of Rapid Change,” delivering basic principles that emphasize awareness, transparency and care in dealing with customer or community information. The report mandates protection at many levels, simple customer-driven options and transparency and disclosure. “In its guidance and actions, the Federal Trade Commission (FTC) is asking for privacy by design, built from the ground up with consumers getting notice and choice,” says Gary Kibel, a partner in the Digital Media & Privacy Practice Group of Davis & Gilbert. “If you are a brand, you have to look at the whole process of how data flows.” In addition to stricter privacy guidelines and increased FTC action, another real brand threat emerges: the increasing complexity of keeping data that resides and moves across complex

social, mobile and financial ecosystems safe from security breaches or organized hacks. Every state has different levels of breach notification and action. With nationwide customer bases, resolution is messy, timeconsuming and expensive for anyone experiencing a breach. And according to research done by Imation (see image, right), the strictest states have relatively low bars that trigger mandatory notification of consumers, credit agencies and government entities. Actual or even perceived violations are a one-way ticket to losing a customer, not to mention fines and potential costs of remediation. There is clear expectation that brands will be careful with personal information, and errors come with a high price. According to ongoing research from PricewaterhouseCoopers LLP, consumers are far more worried about security breaches than privacy, and 61 percent of those surveyed said they’re “not willing to continue to use a company's services or products after it experiences a security [breach].” (Source: http://www.pwc.com/us/ en/industry/entertainment-media/ assets/pwc-consumer-privacyand-information-sharing.pdf)

CH 2 : Data-driven marketing

“Consumers feel more comfortable sharing information if they understand the benefits to them individually or as part of a larger group” – PwC survey.

Big Data requires a trust reset and close, careful management of data in the new world. But the good news is that consumers are eager to partner on privacy, and the best marketing tackles engagement as a partnership with clear and agreed-upon benefits for all. Consumers seem to have an insatiable appetite for monetary incentives, trend information and a desire to be part of something broader. According to PricewaterhouseCoopers LLP surveys, “80 percent of respondents said they were willing to share personal information if the company lets them know upfront how they are going to use it.” Meanwhile, brands are becoming their own news organizations, pushing out data and advice to their customers and markets. But in an age where information saturates, trust is one of the vital filters for consumers to decide

what brands to even pay attention to in the increasing barrage of information. According to the 2012 “Trust Factor” study by About.com, 84 percent of consumers say “being trustworthy is a requirement before interacting with a brand or info source.” (Source: http:// www.advertiseonabout.com/ wp-content/uploads/2012/07/ AboutTheTrustFactor.pdf) In the era of Big Data, trust and security will become something as valuable (if not more so) than any other brand attribute. Consumers will be on the lookout for brands that treat the information they’re sharing with respect, rewarding those that value the information in trustworthy and secure manners, and shunning those that do not. Consumer trust and security of their personal information must get the same attention as every other brand attribute.

Things to think about on the CES Floor

key takeaways

To realize their full potential, organizations must be set up to respond to Big Data insights in real time. Brands will need to adjust their marketing plans to immediately respond to consumers’ actions as they learn about them. Consumers have embraced social and other liveinteraction opportunities with brands, and they fully expect brands to respond in-kind with immediate, personalized responses. It will take considerable change for brands to begin to realize the full benefits of Big Data analytics. But if those hurdles can be overcome, the benefits are clear and significant. Moving from a tactical/reporting position to a strategic and predictive approach will generate a measurable increase in marketing ROI.

The ability to collect and analyze massive amounts of data and the application of predictive science are transforming how marketers and agencies manage media. These insights can help develop strategies and reach new potential target audiences with customized messaging, as well as aid measurement, optimization, attribution and accounting. Marketing organizations will not be able to exploit Big Data without investing in new types of people, technology and processes. It will be a requirement. In the Big Data world, security and trust will become brand currency. Strong security and privacy communication can actually strengthen customer loyalty. Trust is good business, and it is (and should be) desired by consumers and the agencies looking to protect them.

Every new technology will provide you with access to even more consumer information. How will you access it? How will you incorporate it into your current marketing processes? Are you equipped to harvest and harness that data with personnel and/or technological systems? What might you need to add to your internal operations to yield the best information from this data? How will it support and/or work in conjunction with other data streams?

Chapter 3

commerce+ Meeting the Needs of Todayâ&#x20AC;&#x2122;s Omnichannel Shopper

CH 3 : Commerce+

Samantha Starmer VP Experience, Commerce & Content, Razorfish

Paul do Forno SVP, Commerce & Content Razorfish

Jason Goldberg VP Strategy, Commerce & Content, Razorfish

Samantha Starmer is the Vice President of Customer Experience for Razorfish’s Commerce and Content Practice. Prior to Razorfish, Samantha was Director of eCommerce Customer Experience at REI, a leading national outdoor retail co-op. There, she was responsible for creating and incubating user experience, interaction design, information architecture and experience strategy teams, focusing on optimizing the commerce customer experience and driving sales and conversion. Samantha has over 15 years of experience in leading large, customer-centered programs from strategy through design and execution at companies such as Microsoft and Amazon. She has a Masters in Library and Information Science from the University of Washington and regularly teaches graduate level courses and presents on customer experience and information management.

Paul is the Senior Vice President for the Commerce and Content Practice at Razorfish, a national, multi-discipline practice of user experience, strategist, business process, technology, and research professionals. Paul has over 18 years of experience in a broad set of roles — including strategy, consulting, technology, digital experience, and large program management. He’s accomplished at managing high performance, globally distributed teams that integrate creative, business consulting, and technology. Through the years, Paul has served a wide range of companies, including Target, Hyatt Hotels, Victoria Secret, Lululemon, BMW, Borders Books, and TE Connectivity.

Jason “Retailgeek” Goldberg is the Vice President of Strategy for Razorfish’s Commerce and Content Practice. He is a 4th generation retailer with over 20 years of experience in shopping marketing. Jason has served as a principal customer experience architect for major retailers and well-known brands, including Best Buy, Levi Strauss & Co, Microsoft, Procter & Gamble, Sony, T-Mobile, Target, and Walmart. He has served as Sr. Director of Marketing for Blockbuster Entertainment, and held senior leadership positions for several leading retail customer experience firms. Most recently Jason ran the strategy practice for a leading cross-channel e-commerce firm, responsible for several billion dollars in annual e-commerce. Goldberg studied cognitive psychology and usability under Jakob Nielsen and Don Norman. He has observed tens of thousands of shopping sessions on-line and in-store.

Brian Walker SVP Strategy, hybris Brian focuses on strategy at hybris software, a leading enterprise commerce solution provider with commerce platform, order management, product content management (PCM), and mobile commerce solutions for B2C multichannel, B2B, telco, and digital commerce. Brian formerly was a Vice President at Forrester Research where he authored many leading Forrester reports, such as: “Welcome to the Era of Agile Commerce”, “The Agile Commerce Platform”, “B2C eCommerce Platform Wave”, and the “Global Commerce Service Providers Wave.” In his role at Forrester Brian also provided strategic consulting for Fortune 500 companies on their eCommerce and multichannel strategies, technology strategy, vendor selection, organizational development, and operations. Brian’s past roles have spanned both business and technology leadership within large, established online retailers, online travel businesses, eCommerce technology providers, and startups focused on eCommerce.

Darin Archer Sr. Product Marketing Manager, Commerce Adobe Darin Archer joined Adobe tasked with transforming adobe.com from a channel focused brand site with a separate eCommerce store to a single immersive experience that enables commerce at every point of content consumption. Prior to joining Adobe, Darin has led large-scale transformations of eCommerce and CRM experiences for fast-paced start-ups and Fortune 500 companies. He has spent his career wrangling technology to meet business needs. Today he’s responsible for product marketing of Adobe’s “experience-driven commerce” initiative and the Adobe Experience Manager solution with hybris.

CH 3 : Commerce+

Introduction

Lisa Hurwitz EVP, Group Account Director, Leo Burnett / Arc Worldwide

Karuna Rawal Executive Vice President, Strategy Director Leo Burnett Group

Lisa wears a dual hat for the agency - shopper marketing innovator and global P&G business leader. Lisa leads Arc’s P&G business worldwide, its largest shopper marketing relationship spanning four continents and dozens of brands. Under Lisa’s leadership, Arc has delivered double digit growth on P&G. With a relentless focus on insights and innovation, Lisa has helped her clients to expand their shopper marketing efforts well beyond the store. She leads shopper marketing innovation for Arc and has formed new practice areas such as eCommerce and social commerce within the agency. Her passion for this intersection between shopper marketing and digital marketing has led to seats on Google’s Shopper Marketing Council and Groupon’s Agency Advisory Board.

Karuna brings over 15 years of experience in brand management and shopper marketing across the CPG, retail and healthcare industries. Her expertise, shopper insight, and innovative “Shopper Back” work have helped to grow the P&G business and deepen the relationship with the P&G client, yielding incremental revenue in both shopper marketing and ecommerce. Beyond P&G, Karuna has been instrumental in business development efforts on other Leo Burnett and Arc clients, including Kellogg’s and Cheese Merchants among others. Her contributions to agency intellectual property have helped elevate the agency’s reputation in the shopper discipline, and as a result, Karuna is recognized internally and externally as a leader in the shopper space and is a frequent speaker at conferences, client-side think tanks, and industry events. Prior to joining Leo Burnett, she founded and managed her own consulting firm providing branding, strategy and innovation services to CPG and other clients.

The linear path to purchase is dead. Purchasing a product in 2013 occurs across a multitude of devices, channels and touchpoints determined by the consumer. While physical retail stores - which had once been the only place to browse, research and consider purchases - remain the center of the many shopping experiences, consumers are now enhancing or replacing their in-store experience with the Web and mobile apps. A 2012 Leo Burnett survey found that an average shopping decision journey (from trigger to postpurchase behaviors) takes 26 days, involves 11 unique resources and 31 total behaviors/touchpoints.1 Consumers move back and forth between various in-store, online and mobile channels along their shopping journey, and the role of each is dependent on who they are as a shopper and the category they are shopping. In this age of instantaneous information and gratification, many consumers are opting to buy products online, on their schedule, with an endless variety of retailer options, comparing with the click

of a mouse or the swipe of a finger, products, pricing and availability in the comfort of their own home or wherever they may be. The proliferation of new devices and multiple screens – along with near ubiquitous connectivity – has resulted in greatly changed consumer shopping behaviors and expectations. Time-crunched consumers are finding the “always open, always on” virtues of digital storefronts more convenient and efficient for their daily lives, often reserving in-store visits for events or special purchases. Increasingly, consumers are using connected devices to shop on their own time before heading into a physical store for the final purchase. The ability to browse, shop and buy 24/7 has put more power in the hands of the shopper. Brands and retailers are vying for influence, but winning will come from the recognition that the consumer is in charge. The consumer decides which channels to engage when and where to transact. And they expect all of these interactions to be seamless and part of a holistic shopping experience.

1 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012 2 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012

The challenge now is that the “shopping experience” is no longer easily defined. Research (including price comparison, quality, fit and reviews) is happening online in many different locations: the home, the office, the subway and increasingly, in stores. Another Leo Burnett study showed that 29 percent of all category interactions occur prior to stepping foot in a physical retail environment where the product is sold2. Inspiration and recommendations are coming from a host of different media and other influencers, such as online recommendations. Purchases are being made in-person, or over the Internet using PCs, phones, tablets and televisions. With so many different outlets and potential connections with consumers, brands must create new commerce solutions that help them compete amid device and media fragmentation and changing consumer behaviors and expectations.

CH 3 : Commerce+

The Consumer is Always On For much of the 20th century, shopping and the retail experience were pretty simple. A customer needed a product, and went to a store with an idea—driven by some sort of marketing or advertising—of the product he or she wanted to buy. A salesperson was the expert, showing the customer the product options, explaining how each one was different, highlighting different features and attributes. With some variations (deciding to “think about it,” and/or shop around), the customer would purchase that product from that salesperson (or a similar salesperson at a competitive outlet). With the rise of smarter mobile devices, and an Internet connection that provides information from a variety of different sources (what Amazon CEO Jeff Bezos calls “the world of perfect information”), the retail path to purchase has been entirely upended. According to Forrester Research, the retail store

Sidebar : Showrooming

experience is set to change more in the next decade than it has over the past 100 years.3 Today’s consumers analyze products and make purchase decisions well before they enter a store, and they are capable of transacting at any time using a variety of devices. They are not shopping according to retailer calendars—they are shopping on their own time, any time. The consumer is “always on.” The end result is a fundamental disruption of the traditional retail and marketing business models. While such disruption can cause concern for retailers and marketers, there is also a bright side. Consumers who are shopping via multiple channels are five-to-six times more valuable than those who rely on a single shopping channel, according to Forrester.4 And the cross-channel influence on overall sales is only expected to grow. According to Forrester’s U.S. Cross Channel Retail Forecast, 44 percent of total retail sales will happen in physical stores as a result of Web research. (See Sidebar: Showrooming)

3 Forrester Research, “The Digitization of the Store Experience” 4 Forrester Research, “Developing an Agile Commerce Business” 5 Deloitte, “The Dawn of Mobile Influence,” June 27, 2012

The pace at which the Internet and mobile are influencing retail sales is not about to slow down. According to Deloitte, smartphones influenced 5.1 percent of retail store sales in 2012 (to the tune of $159 billion). By 2016, that influence will increase to 19 percent of all retail sales, amounting to $689 billion in mobile-influenced sales.5 Retailers must begin to change their business models to incorporate the explosion of always-on connected devices into their overall retail experience, understanding that consumers can and will use them for their greatest benefit.

In the current retail landscape, nothing is more concerning to anyone selling a product than “showrooming.” The practice is one where consumers use a retail store as a showroom to see, touch and interact with a product, getting all their questions and concerns answered, before turning to the Internet (often using their mobile devices in the store) to find a better deal elsewhere. According to Pew Internet, nearly a quarter of cell phone owners use their devices to look up product reviews while they were in the store. A similar number use their phones to look up the price of a product online – while they are in a store – to see if they good find a specific product cheaper elsewhere. The practice of showrooming, which will only grow as more consumers possess better devices and networks become faster, is a concern that needs to be addressed before it becomes so commonplace that it becomes second nature to consumers.

CH 3 : Commerce+

Sidebar : Couch Commerce

The Future of Commerce With consumers possessing more devices and having an alwayson Internet experience, physical and digital shopping experiences are merging, and consumers are using their different devices to shop multiple physical and virtual channels simultaneously. For the 2012 holiday season, 80 percent of consumers said they would use their devices simultaneously to help with their seasonal shopping,6 a figure that will only continue to increase with the proliferation of more devices and faster connectivity. Consumers no longer see digital experiences, stores and customer service interactions as different channels. Rather, consumers shop these channels as part of a single journey—discovering, searching, researching, buying and getting service on a product. In a survey of more than 900 consumers, 45 percent of online shoppers said

they planned to combine online, brick-and-mortar and mobile shopping into one experience.7 Indeed, shopping through multiple channels has become the rule, rather than the exception (Chart 1). Forrester indicates that the Web influences half of all retail purchases in the U.S.8 And it is important to recognize that each journey will use a different set and order of interactions that combine digital touchpoints and offline interactions. Make no mistake, traditional brick-and-mortar retail will still be necessary and important to meet consumer needs and deliver outstanding consumer experiences, though the role of the stores may change dramatically. Mobile and other digital technologies will support the in-store shopping experience both as a set of selfservice tools and to aid the sales associates working with customers. This will be true for big-ticket considered purchases, every-day commodities and spontaneous gratification shopping.

6 Google 2012 Holiday Intentions Survey. 7 PriceGrabber 2012 Shopping Outlook 8 Forrester Research, U.S. Cross Channel Retail Forecast

With multiple touchpoints (many of them used at the same time), consumers have many more ways to interact with brands and retailers. Marketing needs to happen in real-time, showing responsiveness and authenticity of customer interaction on a variety of levels. The traditional marketing funnel is gone, with consumers creating brand interactions wherever, whenever and however they desire. (See

Sidebar: Couch Commerce) As consumers access multiple touchpoints and channels at once, commerce companies and brands will have to design and implement new selling platforms optimized across all these different touchpoints. This new reality, with channels working in conjunction with— rather than independently of—each other, is what we call omnichannel.

Chart 1 Lines between offline and online shopping experiences are blurring

51% 32% 17% Research online and visit store to purchase

Research online, visit store to view purchase, then go online to purchase

(Google 2012 Holiday Intentions)

Visit store first then purchase online

Shopping as a planned, sitespecific activity is fading. In the past, consumers were either forced to be physically present in a store or tied to a computer or Internetconnected laptop to complete a purchase. But with increased connectivity, consumers can shop for and purchase products whenever the mood strikes them: at the coffee shop, at a sporting event or from the couch. In Fall 2011, the hot new term for shopping was “couch commerce,” designating a trend of consumers purchasing items while multitasking with a tablet or other mobile device. To capitalize on the trend, Ebay launched an app that allowed consumers to “Watch with eBay,” programming in their zip code, television provider and channel or program they were watching to get a list of items featured on the shows that were available for purchase through their marketplace. Similarly, for the holiday shopping season in 2012, American Express began working with Fox Broadcasting on a “T-commerce” program, which enabled consumers to shop in real-time while watching Fox’s New Girl, allowing them to buy items featured on the show. Other companies have also shown a trend to link commerce, content and device in ways that make it seamless for the consumer. As tablet and smartphone purchases increase, we expect couch commerce to become the norm, rather than the exception.

CH 3 : Commerce+

The Rise of Omnichannel Serving an omnichannel environment requires a system of connected experiences that are interrelated and enabled across all channels and touchpoints. It is no longer enough to simply allow consumers to transact across channels, or for retailers to view these channels in isolation. The consumer experience—which is defined by need, rather than channel—needs to be seamless across all touchpoints. This does not mean each consumer touchpoint is the same, but they must be consistent while being delivered in context. Ensuring that the consumer’s overall experience across all touchpoints individually and collectively is both consistent and contextual is critical for businesses to remain competitive and grow. Research has shown that a poor customer experience in one channel will negatively affect a consumer’s experience in others. Three quarters of consumers who had a poor shopping experience online said they would be unlikely to shop with that company online again, and a quarter of them said they’d would be unlikely to shop with that company in any channel.9 At the same time, a good customer experience showed a positive impact on sales

Omnichannel Marketing and overall market share. Among consumers who have had a good customer experience online, the propensity to switch brands increased 16 percent, a willingness to pay increased 14 percent and the likelihood to recommend a product or brand to a friend increased 17 percent.10 With so many different outlets and potential connections with consumers, the challenge for brands today is to create new commerce solutions that help them win with the consumer in a world of device and media fragmentation and changing consumer expectations. Consumers don’t distinguish channels as separate experiences. In their minds, the Web is not separate from mobile, which is not separate from brickand-mortar. By understanding their consumer’s journey and everything that influences their behavior along the way, brands and retailers have the opportunity to deliver an experience across and between channels that uses each channel to its strengths, delighting shoppers and moving them closer to purchase.

9 Forrester, “Welcome to the Age of Agile Commerce” 10 Forrester, “The Business Impact of Customer Experience,” 2012

The rise of omnichannel requires an evolution of marketing. Omnichannel marketing transcends channels and is driven by consumer behavior. In fact, a consumer’s decision journey is more easily understood through the lens of motivations and needs than it is through the myriad of touchpoints or channels. In a recent study conducted by Leo Burnett examining 18 product categories ranging from toilet paper to real estate, twelve universal human motivations were identified that underpin every shopper journey.11 The good news for marketers is that even though a consumer’s choice of channels may change, their fundamental needs and motivations as a shopper do not. Therefore, staying focused on the consumer’s needs instead of designing for a particular channel will be key in this new world of omnichannel marketing. As marketers begin to engage in omnichannel marketing, one big shift will include content. Content will move from a static, one-to-one communication to one that is more dynamic. Marketing messaging must coexist with commerce, meshing into one

cohesive experience that rewards consumers at all levels. Content management will become more important as different media and needs require content to be changed according to the context in which it will be consumed, and delivered dynamically according to consumer behavior and trend analysis. Consumers shopping in a variety of contexts and environments will expect local and timely information that is personalized based on behavior, past-purchase information and other data. (IN PRACTICE 1) In addition to being highly targeted, omnichannel marketing content must incorporate information from a variety of sources to be relevant and resonant with consumers in a way that increases engagement and drives overall sales. Consumers shopping in a variety of contexts and environments will expect local and timely information that is personalized based on behavior, past purchase information and other data. While search engine optimization will remain important, results will have to match and maximize device capabilities and medium in ways that satisfy consumers’ expectations in their searching and shopping context.

11 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012

Photography, video and other robust communication must be utilized to provide robust product details and information simply and in an engaging manner. Additionally, as consumers opt to use different channels at different (or even at the same) times, content will have to work in concert to drive interaction and sales across channels (showing physical store inventory on mobile product pages, for instance). As different consumers find motivation in different forums, all variety of content (including usergenerated, expert, curated, video, photography, words and data), will have to work together to attract and engage consumers at all stages of a purchase process, no matter at what stage they engage (browsing, researching, buying or even post-purchase), that process. Content must match consumer expectations for every context, location and type of interaction, providing added value (suggestions, recommendations, automated selling assistants), to help consumers make decisions. And this all must be done via rich storytelling that is seamless and continuous across devices, context and time. (IN PRACTICE 1)

CH 3 : Commerce+

Omnichannel and the Organizational Impact

IN PRACTICE

[1] Carnival Cruise Lines has created a dynamic website that uses targeted content to personalize the homepage depending on the type of user that visits the site. Meanwhile, retailer Express allows consumers to guide their online shopping experience by defining a style, which is then reflected on the site as different categories. Social media comments are tied throughout the experience so a consumer can see what others are saying about the clothes.

to those preferences in-store. Meanwhile, the retailer hosts “flash sales” through multiple channels that apply a discount to all clothes a consumer has tagged through their MYEXP app, regardless of where they might be shopping during the time of the sale.

[4] Oakley’s Lensfinder app simulates extreme sports scenarios online, allowing customers to “test” different tint and lens properties under various conditions.

[2]

[5]

Delta Air Lines maintains a consistent personalization look and feel through all of its digital touchpoints, anticipating consumer needs and providing proactive customer service that supports the end-to-end shopping journey. Integrated systems and technology create seamless connections within the consumer experience (e.g. checked bags can be paid for via a mobile app before the traveler even gets to the airport).

AT&T has created a 10,000-squarefoot store as a digital playground for consumers to discover different aspects of the customer experience. Equal parts entertainment and education, the store’s staff encourage playing with apps and devices over sales, and in-store experiences (which include nearly 150 digital displays showcasing different custom content, a large video wall with interactive content and an “experience platform” that allows customers to use AT&T products in new ways such as home security and automation, entertainment, and in automobiles). All promote the new products and platforms AT&T has for its current and potential customers.

[3] Express allows customers to save items to their retail accounts through mobile apps and through the Internet, with easy access

As commerce and marketing merge in the consumers’ world, so too will they have to come together within retail organizations. With the rise of e-commerce over the past 15 years, most retail operations today are managing each channel—mobile, Internet, brick-and-mortar— separately. The result is often a disjointed experience that creates frustration among consumers, who now expect seamless, integrated shopping. As omnichannel takes hold, commerce will move away from optimizing for channel and instead look to create connections for consumers that are seamless across media and device. Understanding consumer context, and designing campaigns and experiences around different contexts, and will become more important as consumer mobility takes even greater hold. Each context – from how many (or which) devices are being used, whether the consumer is on the go, at home or in the office, and where they are in the purchase journey—must be considered to address different purchasing needs and connections for every context and every device.

Consumers have already expressed their expectations that online and offline shopping experiences are connected and consistent. Among some of the ideas they’ve expressed: the ability to return products purchased online at a brick-and-mortar outlet, the ability to see the same assortment of products regardless of channel and the ability to view available inventory in a store online and/or via a mobile device.12 Delivering on these omnichannel experiences will require systems that can support a single view of products, customers, and orders across the enterprise.

consumer brand awareness and connections, further deepening relationships. These seamless connections can also reduce showrooming by keeping a consumer in the pipeline regardless of context and device. All things being equal (price, convenience, etc.), many consumers have shown a preference to purchase in stores because of the immediate availability of a product and the tactile experience. (Chart 2) Ensuring compelling content (customer reviews, digitally accessed “value add” information while in store), on mobile devices

“As long as pricing is generally comparable across channels, consumers are unlikely to switch to another retailer or channel” (Forrester - US Cross-Channel Retail Forecast, 2011-2016)

Device diversification and ubiquitous connectivity are combining to make convenience a key driver among consumers during their shopping journey. Integrating channels and experiences feed this need for convenience while increasing

12 Forrester, “The Digitization of the Store Experience.”

keeps consumers engaged, turning mobile – which could have been seen as a detriment – into an ally in augmenting and differentiating a shopping experience (rather than as an opportunity to comparison shop).

CH 3 : Commerce+

“Every aspect and every innovation of our Michigan Avenue store has been designed with the customer experience in mind”

Chart 2 Consumers increasingly demand a seamless experience across touchpoints

(Paul Roth, president of AT&T retail sales and service)

“Which of the following do you expect from a retailer or brand?” To return products purchased online to a physical store

52%

To see the same assortment of products no matter where I shop (e.g., stores websites, mobile apps)

44%

To track or change my order online, in a store, over the phone, or using a mobile app

43%

Customer service representatives in stores online, and over the phone to be able to view my transaction history

33%

Physical store location to be able to place orders for me online

32%

Retailers to match prices if I can find a product cheaper on my mobile device while in the store

28%

To easily retrieve my loyalty program information in stores, online, over the phone, or using a mobile app

25%

To view available inventory online and view my mobile device To buy and look up product information using a mobile app that I can download from a mobile app store (e.g., iPhone app store)

22%

11%

Base: 4,731 US online adults (Multiple response accepted) SOURCE: North American Technographics Retail Online Survey, Q1 2011 (US)

Campaigns, content and the overall shopping experience needs to be connected seamlessly across every channel, screen and device to optimize consumer engagement. Connection across channels, however, doesn’t mean “matching luggage.” Channels must be optimized for shopper expectations and needs. Consumers use each channel for a specific reason – ultimately to complete their purchase. So as marketers, we need to pay careful attention to our consumers’ needs and the role of each channel as we develop deeper content experiences. We need to ask ourselves – does the consumer really want deep content or do they just want to buy a product quickly? Do they want the path to purchase shortened or do they actually want to play and explore

or learn? Ultimately, commerce and communication will have to look a lot more like marketing with a heavy focus on our consumer. (IN PRACTICE 2, 3) To truly meet the consumers’ needs in this omnichannel world, commerce companies and marketers need to develop robust and complete “experience visions.” These visions are no longer simply a path to purchase. They must include integrated and supporting strategies and elements that encompass and account for multiple channels and devices used in the shopper’s journey. The number one obstacle perceived by companies as keeping them from improving the customer experience is the lack of a clear strategy.13 Once vision and strategies have been established, the consumer experiences must be explicitly designed for the

13 Forrester, “The State of Customer Experience 2012”

merging of digital and physical shopping across multiple devices. (IN PRACTICE 4, 5) So how can brands win with the always-on consumer in an omnichannel world across increasing devices and technology? While there are a lot of complicated factors, the answer is quite simple. Start with the consumer: understand who he or she is and how he or she shops. Use these insights about the consumers’ behavior to guide creative and messaging decisions within and across the appropriate channels to create a seamless experience. Let the shopper lead, and results will follow. (IN PRACTICE 6)

CH 3 : Commerce+

Key Takeaways

Shopping is no longer a linear experience. Consumers are shoppers anytime and everywhere. They research, consider, shop and purchase along a different continuum that involves physical and tactile input, traditional, PC-based Internet and, increasingly, mobile. The proliferation of smarter devices and faster connectivity is leading to even greater influence for mobile across customer experiences. Consumers are becoming increasingly inclined to work across all devices and touchpoints—incorporating information from every medium— as part of their shopping journey. Consumer experiences are connected across touchpoints. It is no longer acceptable to have an optimal online experience that is not matched through mobile or in-person. With consumers utilizing multiple touchpoints at once, companies will have to design and deliver new selling platforms optimized for each touchpoint, but consistent across all. The new reality of channels working in conjunction with—rather than independently of—each other, is omnichannel.

What to Watch For

In an omnichannel world, marketing and commerce influence each other equally. Brand marketing is integral to getting consumers to complete transactions, and transactional commerce is part of marketing. Consumers will not follow the same path to purchase for every transaction. In some cases, research will begin online, while in others it may start in-store. Each channel must be optimized for all steps along the purchase journey. Content must be in context and provide information of value to consumers at every touchpoint. Mobile and Internet content showing how much product inventory is in a brickand-mortar outlet, for instance, will be expected. Links on Internet banner ads should take consumers directly to the advertised product. The “shopping experience” will be a key defining attribute as omnichannel takes hold. Retailers need to develop robust “experience visions” that include integrated and supporting strategies and elements that encompass and account for multiple channels and devices.

Increased interactivity and interoperability among platforms and devices will enable commerce across different touchpoints. Devices and technologies that enable commerce across platforms to be seamless and brand-specific will be of great interest. Ubiquitous connectivity will enable consumers to purchase products as the mood strikes them, rather than at times when they designate for “shopping.” Anything that makes the transaction process simple and convenient is good. Consumers expect their information to port across platforms. Solutions that “remember” consumer data and information (what they were browsing while shopping on their laptop, that is remembered by their tablet), ease omnichannel transitions.

things to consider on the floor When encountering a new platform or app: How can I use this technology to optimize and enhance my shopping experience? How might consumers use this technology on their smartphone, tablet or other device to research, compare or purchase my product? At what points on the shopping journey might this technology be optimized? When encountering a new hardware device: How does this technology work within my current purchase model? Do I currently have a model in place for this technology or must I begin thinking about a new practice? How might I incorporate this technology into my current marketing practices? How might consumers use this new device to research, compare or purchase my product?

Chapter 4

Next Generation StoryTelling

CH 4 : next generation storytelling

Bob Bejan Chief Development Officer, MSLGroup

Chris Bowler GVP, Social Media Razorfish

Bob Bejan is currently the Chief Development Officer of MSLGROUP worldwide. His responsibilities include generating new opportunities and relationships for the group and evangelizing the story and value proposition of the Publicis Groupe’s strategic communications and engagement network. Prior to taking this position, Mr. Bejan was the co-founder and CEO of PBJS, Inc., a Digital Creative Studio that specializes in the design, execution and ongoing management of data-driven marketing systems, focusing on Digital Marketing, Corporate Communications, Creative Production and live experiences.

A marketer for over 20 years, Chris leads the social media practice in the U.S. for Razorfish, one of the world’s largest digital marketing agencies and recently recognized on Advertising Age’s “A-list.” Chris manages a rock-star team of social strategists, content developers, community managers to conquer the ever-evolving social media world.

John McCarus Senior Vice President and Practice Lead, Brand Content, Digitas

Erika Nardini Senior Vice President of Sales and Marketing, Demand Media

As Senior Vice President, Brand Content for Digitas, John leads the development of original and partnered digital brand offerings across all client teams. Working in partnership with social, creative, media and client relationship leaders, The Brand Content team is responsible for leading digital content strategy development, sourcing digital content creator partnerships and crafting digital brand content offerings that are borne out of insight and drive business results. John is also a Co Founder and serves as Executive Producer of the Digitas Newfront - an annual event that brings together content creators, distributors, talent, and brands to harness creative media opportunities in original online video and online brand content. Named one of the Digital Hollywood Power 50, John is also a sought-after industry expert and has spoken at a variety of industry events.

Erika Nardini leads sales and marketing at Demand Media, connecting brands with intent driven consumers in new and creative ways. Erika is an architect behind Demand Media’s Content for Real Life platform and is focused on driving advertiser revenue and innovation via a cross-functional creative services and sales development organization. At Demand Media, Erika oversees the company’s strategic partnerships including their relationship with L’Oreal, Proctor and Gamble and Purina. Erika was formerly the Vice President of Packaging at Yahoo!, where she built a cohesive and aligned go to market operation spanning branded entertainment, market development, advertiser solutions and strategic insights. Prior to Yahoo!, Erika built the global arm of Microsoft MSN’s branded entertainment and experiences (BEET) division and opened offices in Tokyo, London, and Amsterdam.

CH 4 : next generation storytelling

Introduction

Mark Renshaw Chief Innovation Officer, Leo Burnett / Arc Worldwide As Chief Innovation Officer, Mark Renshaw’s role at Leo Burnett is to help drive brand participation, break down technology, and make it easily understood and applied. It’s an apt one for someone who has helped to nurture and drive groundbreaking, crosschannel, cross-discipline thinking throughout his career. Mark is accelerating innovation across the entire agency in how we work, how we are structured and how we operate. He has helped us reframe so many opportunities for clients that we have a saying: “Invite Mark to the meeting. He’ll make what we’re doing better.”

Meghan Sturges VP, Account Director, Saatchi & Saatchi New York In her career, Meghan has helped a range of packaged goods clients ranging from Folgers and Reynolds to Cadbury and Sunny D. Currently, Meghan is running the global Lenovo business, the world’s largest personal computing company. She serves as account lead for Lenovo’s global equity management, strategy and advertising. She recently led the development, execution and internal sell-in of the company’s first-ever global brand campaign, spanning eight markets across the world. Meghan began her career at DVC Experiential Marketing, managing marketing activities for Remy Amerique, Oral-B and Gillette. Originally from Mobile, Alabama, Meghan lives in Brooklyn, New York and is still a die-hard fan of the Alabama Crimson Tide.

Stories and their telling are the heart of civilization. In every culture, from ancient to modern, stories are the way we educate, entertain and enlighten each other. Stories stick with us because they offer something we can internalize, process and take with us throughout our lives. The best stories can endure for years, passing from generation to generation, father to son, mother to daughter, grandparent to grandchild. We use stories to entertain and enlighten. We use them to educate, and to sell. The best brands tell the best stories. Tide tells the story of happy families bonded through clean clothing. General Electric tells the story of making lives better through technology. Today, the art and craft of storytelling is central to building, maintaining and strengthening the bond between consumers and brands.

In advertising’s Golden Age much of this storytelling was linear. The brand told the story. The consumer listened. Or not. In 2013, the storytelling model has been upended. Consumers are now so actively engaged in every story; it’s often hard to tell whose point of view is being expressed. Newscasts, reality shows and even “traditional” broadcast entertainment invite consumers into the conversation, encouraging them to offer their opinion through online polls, Twitter hashtags and Facebook questions. Some brands, like Dorito’s—which has encouraged consumers to create advertising for the biggest platform of all (the Super Bowl)— are actively inviting consumers to expand the well-known stories with their own versions. In the new multicast world, brand storytelling presents new challenges and opportunities. We now need to solve for the story as well as how we tell it simultaneously.

CH 4 : next generation storytelling

Part 1 : The Storytelling Need Across our world, in every culture, storytelling has been at the center of human existence. From our earliest days of communication, we as a species have been working to record, share and pass on our stories of love, battle, adventure conquest and intrigue. The caves at Altamira, Spain, hold some of the earliest recorded stories, with the walls serving as a canvas for a tribe of ancient people conveying the details of a hunt that happened 40,000 years ago. Since then, the media conveying the story have changed—from hieroglyphs to painting, to oral histories, to stained-glass windows, through to books, movies, television videogames and websites— but the need to tell tales has remained the same. We, humans have an overwhelming need to chronicle and share the drama of our existence, make emotional connections express feelings and confront challenges. This irrepressible need is a significant contributor to the essence of our greatest stories and why, to a large degree, many of these stories stay largely the

same and share similar themes across cultures, geographies and time. They also share structure. Aristotle was the first to describe the essence of story, applying and defining a story structure as something that has a beginning, middle and an end. Later, in the 19th century, German writer Gustav Freytag identified five components of story structure: Exposition/ Introduction, Rising Action, Climax, Falling Action and Resolution/ Denouement. Regardless of genre, location or period of time, these fundamental structural rules continue to play an important and consistent role in making the stories we tell ourselves and each other understandable, resonant and compelling. While the structure of the stories we tell has stayed remarkably the same throughout the ages, the conduits have changed constantly. Oral histories told by tribal elders are in many ways similar to the content shared by Internet users today. Because storytelling is a re-enactment of life and life experiences, storytellers are constantly looking for ways to “create a reality” around their story that makes the tale relatable

to the intended audience. The author or storyteller has to create a suspension of disbelief that allows an audience to surrender to the conceits of a story (and its storyteller and medium) and leave their real world behind for the period of time. In doing so, the audience gets the full value of the story and the experience the creator intended. 21st Century storytellers look for ways to explore and embrace new media and technology to tell their stories more effectively. Every advancement in media and technology has taken hold largely through its capacity to convey stories. Oral histories gave way to theatrical advancements that grew to include stage productions that included scenery, projection, music, lighting and other effects to create immersive experience that deliver powerful emotional connections and sweeping scale. The printing press allowed storytellers to extend the length and depth of their stories, preserving them through history and greatly extending their audiences. Photography gave

storytellers the ability to capture moments in time through the visual power of imagery. Radio combined the immediacy of performance with the audience’s own active imagination to create collaborative experiences of great resonance. Motion pictures combined the performance of radio and the power of imagery to create arguably the most arresting and effective story telling medium in history, while television shrunk that experience to a more intimate scale to deliver stories in direct and highly personal ways. In the modern age, gaming consoles break through the boundaries of traditional storytelling roles to deliver a new level of collaboration and participation in storytelling. And finally, the Internet has built massive communities and empowered them to collaborate and share. As each new storytelling vehicle has emerged, authors have evolved to master them. In the movie industry, for example, one of the earliest motion pictures depicted a train coming out of a tunnel towards the camera. Though this “narrative” was unsophisticated when compared with literature and

dramatic productions, unfamiliar audiences fled the theater thinking the train was about the run them over. And as these “media” evolve, so too do the plots, becoming more complex and sophisticated, finally reaching the high-water mark of “Birth of a Nation,” which combined images, music and dialogue in ways that took the medium to new levels. Over time, new media have decorated stories, adding sound, color, special effects and even 3D technology. The relationship between a “story” and its “telling” is fluid and constantly evolving. For marketing storytellers, the opportunity is to evolve the message in parallel to the medium.

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Sidebar : Obama vs. romney With the 2012 Presidential election put to test (and to rest), let’s take a look at the two competing stories in this election: Mr. Obama’s “Forward” and Mr. Romney’s “Believe in America.” What mattered more, the story or the telling? Media and consumer input into these mission statements were of course extensive. Constant polling and consumer listening informed both campaigns beginning in mid 2011 and by Fall 2011 – the Romney “story” took shape. As the incumbent, Mr. Obama’s story was crafted later with even more data and the benefit of a massive data gathering engine and social media conversation. But once the stories were locked, what had the greatest influence on the campaign outcome? - the story or the telling? Let’s look at some of the stories that were leveraged as well as the platforms where these stories were delivered.

Arguably, the Romney campaign’s best platform was the debates – particularly the first debate where the momentum shifted to Mr. Romney. By articulating his viewpoint aggressively, Romney was able to drive media attention and voter excitement for days following the first debate. And Obama was seen as having failed to tell his “story” effectively which stopped his positive trajectory and dampened voter enthusiasm on his side. Clearly storytelling moments on a scaled platform such as the debate mattered at that time. But the Obama campaign was able to better leverage two key platforms for electoral success. The first platform was broadcast TV – especially in the battleground states where the campaign was able to cast Mr. Romney in a negative light. Some of the storytelling themes were clearly planned – “Bain Capita,l” but others were opportunistic: the “47%,” “Big Bird” and “Romnesia.” The Obama campaign employed what could be called “real-time listening” to pick-up key messages that were being discussed on Facebook and Twitter and amplify these messages to their

advantage through followup stump speeches, through surrogates in the media, and through daily emails and social media messaging. This represented a closed-loop system of quickly developing thematic messaging from social media, driving awareness through television and campaign events, and amplifying further through fans and followers back in social media, sometimes changing or mashing-up the story through text, graphics and imagery. But the real TV success wasn’t just ads – over a billion dollars spent – but key TV moments. Let’s start with the successfully-executed Democratic Convention with key speeches (i.e. stories) told by Ms. Obama and Mr. Clinton. Take note of a badly-executed story by Clint Eastwood and the “empty chair” at the Republican Convention which resonated negatively for the Romney campaign. Indeed, a second TV moment was the media coverage of Hurricane Sandy and the relief efforts which cast Mr. Obama in a positive light – with the help of storytelling by New Jersey Governor Chris Christie.

A second critical platform for the Obama campaign was the datadriven voter turn-out machine employed effectively. Using megafiles of voter registration data, the Chicago-based team of employees and volunteers added additional datapoints around persuadability and ran tests to help predict which messages (“stories”) would be most effective. This modeling allowed for fine-tuned message strategy as well as activation for turn-out the vote initiatives. So in the end, which mattered more, the “story” or the “telling”? Certainly the answer must be both – however, the story was never quite the same, and the telling turned into events and moments which neither campaign could ever have predicted.

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Part 2 : Principles It has been said that stories, like jokes, are only great when delivered well. As storytellers reach new levels of mastery for a new method of storytelling (theatrical, filmed, spoken word), the audience expects more from the telling than mere adequate delivery. They demand new ways to be immersed. Though Hollywood (and advertising and marketing to a lesser extent) has created some of the greatest stories of all time, the telling is still largely linear, with one group controlling the story line and creating structured narratives that have a strict beginning, middle and end to produce an agreedupon theme. In recent years, the video game industry has been changing the narrative structure, allowing gamers (a.k.a. the audience) to decide their own journeys and destinations. The immersive techniques are a large part of the gaming world’s explosive growth over the past two decades. The

stories they tell (even if those stories are about birds angry with a group of structural engineeringchallenged pigs) are engaging, interesting and relatable. With the explosive growth of new technologies, formats and storytelling devices, the next generation of storytellers will have to find ways to break through the millions of voices and stories being produced throughout the world (including the rise of usergenerated content, which has democratized storytelling in ways that hadn’t previously been envisioned). We believe there are five principles that will make, break and remake the telling of the Next Generation Stories. The principles not only apply to brands; they can also be used by Hollywood, the video game industry, celebrities and an emerging source of new stories, Apps. In all cases, the goal is to create stories that endure long beyond the initial telling to create something that hangs in the mind of consumers long after it has been told.

Principle 1: Create Worlds, Not Just Stories. The best brands (and most enduring stories) are those that create a world of possibilities to develop and evolve over time. They allow people to truly explore and become involved in a story world. They create a culture, language, mini- and sub-plots and they allow the audience to fill in gaps they may have missed the first time around. They go beyond mere chapters and narratives to blur the lines between an audience and the actors. (The rise of fan-fiction among passionate audiences is an example of worlds taking hold.) Great brands (and great stories) create their own worlds, and build realities around them. For Example: The Energy Drink Red Bull has created its own world of adventure and experience. While there are many different entry points unique to different people’s passions, every experience they create traces back to adventure, invention and excitement. From Rally Driving to creating their own Formula 1 Team to financing (and supporting) a historic skydive from the Edge of Space (which shattered YouTube viewing records), the brand has created its own world of adventure and excitement, and allowed people to live both inside and outside of it.

Principle 2: Dramatic Darwinism: Once created, these worlds have many different story threads and narratives. Not all will resonate with enough consumers to last beyond an initial telling or grow on their own in the minds of the audience. Within these worlds, storytellers (i.e. brands) will have to experiment with many techniques, characters, themes and through lines to find narratives that resonate and relate to consumers. Those that are specific, believable and real will grow, adapt and evolve (Darwinism), and those that don’t will become extinct. For Example: Allstate’s dramatic story world is “Mayhem”— mishaps that the audience believes can happen to anyone. As created through a character representing these pieces of fate, Mayhem has become a story world that is rich and insightful, while allowing consumers to participate in an unfortunate reality of having the wrong insurance company. By listening to social media channels, Allstate has told sub-plots based on consumer insights and made suggestions to broaden story lines while continuing to develop the character and overall World of Mayhem.

Principle 3: Performative Not Informative. Storytellers must treat their audiences as characters, creating roles for their “listeners” as players within the larger story and world. These shifting roles allow audiences to project themselves into stories and bring those worlds into their daily lives, blurring realities with roles and goals that have tangible rewards and uses, not just in the story world, but in their day-to-day lives. Just as Nike+ has used social media to encourage exercise (linking with Facebook to provide a cheering crowd for a run, for example), successful performative stories use many different tools, formats and venues to interact and engage with the story. For Example: Kellogg’s Special K created a story around “What will you gain when you lose?” In that world, the brand allows people to shift focus from losing weight (a dreary and hard to maintain goal) to the goals they will achieve by losing weight. The brand lets people perform within their own storyline offering tools, support and a story world for people to interact with. In many ways the brands here have opened up their very being via an API to allow for performative actions.

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Principle 4: Responsive By Design. Not to be confused with “responsive design,” which allows for the same content to be experienced on different screens and formats in real time, Next Generation stories need to be created from the outset to be responsive to the audience. The stories and storytellers must listen, learn, act, respond and engage, sometimes all at once. Brands need to leverage interactions to create unique story lines for different audiences, and create different entry points and designs for different audiences. Like Nintendo’s Wii U that provides multi-screen experiences on both a tablet-like controller and on the television (allowing two stories to be told to different audiences – in the same room – at the same time, acting concurrently), brands need to develop storylines that are responsive and can develop both concurrently and sequentially.

For Example: P&G’s Secret Deodorant brand developed a story world around “Mean Stinks”. The story world focused on women being “fearless” in the face of bullying and the role that a brand can play in changing that behavior. The brand has been responsive by design in identifying the ways that bullying occurs, allows girls to confess and encouraging them to “gang up for good.” These programs have been designed accordingly to people’s participation on Facebook, Twitter, and Instagram.

Principle 5: Stories Spawn, Divisions Destroy. In many companies discussions about brand stories live and die in the marketing teams. But just as these stories need to become immersive for audiences, they need to become all-encompassing for brands and the people behind them. Stories can spawn new opportunities across virtually every function in a brand, yet divisions and silos also have the power to destroy a Story World. For a story to be believed it must be lived. Storytelling extends into the product and customer service that should all be driven by a brand’s purpose. When consumers are motivated to buy a product, they have committed to the story line that has been told; they are buying not just the product or service, but the brand’s “story.” For Example: In an effort to increase sales, Ebay created a program called “Significant Objects.” The company took second-hand items, created a story around them and sold them at significantly higher price points than similar items with no content backstory. Consumers,

in purchasing the higher-priced items bought into the story world Ebay had created, and the company connected content and commerce via this world. These five principles are essential building blocks that give brands and marketers entry into the Next Generation of storytelling. Brands must use the power of Next Generation storytelling responsibly, ensuring that the audiences (a.k.a. consumers) have choice and control in combination with the natural aspects of a well-told narrative. In every case, regardless of the opportunity, the core elements of a great story must be present for the narrative to take hold. Striking a fine balance between these elements and new technologies (See Sidebar: New Platforms and Technologies) and opportunities will shift storytelling from a linear experience about things that have happened to other people, to creating an infinite number of possibilities with the audience as the central character.

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Sidebar : Emerging Platforms and Technologies

We are in the midst of a storytelling revolution. New platforms and technologies are fundamentally changing the way authors tell stories. At the same time, the audience’s role is changing from one of passive viewing (or hearing) to one of active engagement and creation, often enabled by these new technologies and platforms. Here is a quick summary of some of the new platforms, technologies and storytelling tools, and the opportunities they create. Participatory Platforms. Among the myriad of social networks and platforms that allow brands to spark dialogue and the participation of fans and followers, five platforms (presented as examples here) stand out.

1. Facebook

2. Demand Media

3. Twitter

The largest scaled participatory platform in the world, Facebook’s unique Newsfeed streams social content which showcases storytelling using multiple formats: text, photo, video, location, event, and onward. From desktop to mobile, Facebook combines participation with in-moment relevance, anywhere which is immediately sharable. For marketers, Facebook is the hub of a brand’s storytelling community and the engine for reach and virality beyond its own customers. While most brands today have operationalized ongoing content delivery and response on Facebook, the opportunity exists to co-create deeper, more engaging experiences and utility within the Facebook platform. Stretch beyond your brand page and develop social movements, products, and services that leverage the Facebook community.

Demand Media has invested in the development of one of the largest content production studios in the world. This studio functions as an ecosystem combining state of the art insight on consumer interest and demand, a topdown story construction method (start with the headline that the consumer wants then write/ produce the body of work), a talent and influencer network designed to identify and cultivate platform-specific storytellers, and a distribution and optimization mechanism for one of the biggest digital platforms of today. A notable take-away from the Demand Media model is the principle that content changes depending on the channel in which it will be consumed. Content formats that work on owned and operated website properties are very different than the formats that work on mobile destinations and, in turn, different from the formats which need to be produced for YouTube, Twitter, and other third parties.

The power of Twitter cannot be overstated. Its ability to instantly connect to what’s important to you has changed the world of news, entertainment, advertising and customer service all at once. The ability to receive and share across nodes of followers has transformed what it means to be an influencer – no longer confined to a celebrity – but has allowed new and old influencers to broadcast their stories in real time. For storytelling, we can verify and contribute to a breaking news event or topic trend as it happens. Imagine the 1938 radio broadcast of the War of the Worlds in today’s Twitter culture: would anyone have been duped by the simulated news bulletins of an alien invasion when on-the-scene verification would be taking place?

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4. Storify

5. Mass Relevance

Always-On Content

Storify is a platform for creating stories in social media. It weaves together site links, Twitter, photos and videos into a story timeline that feels dynamic and multidimensional. Users can drop-in and reorder these elements and add text to provide context to readers. Within the components of text, imagery and links, readers can like, comment, share, and create their own storyline.

Ever been to a live event such as a concert where tweets are streamed and displayed in realtime to thousands of fans? Most likely, you are seeing technology powered by Mass Relevance. At scale, Mass Relevance brings the digital and physical worlds together which allows participation and dialogue between a brand, sponsor, or celebrity and their audience. What has mostly focused on Twitter, will expand into other channels and formats for live event participation.

These technologies create a constant stream of storytelling for consumers which allow brands to determine the themes and offshoots that people want to talk about and deliver the topics in a timely, always on matter. Brands must continuously engage with these technologies to identify the relevant topics trending at any given moment, create and update their stories, and to respond to them in real-time. + Bottlenose â&#x20AC;&#x201C; Search engines only index the past. But using real-time semantic analysis and annotation, Bottlenose detects, filters, tracks, monitors and visualizes the social content connected to a brand. The most promising feature is the ability to directly influence the dialogue around trending topics before that same content goes viral on search engines and in mainstream media.

+ Curata Next Generation Storytelling requires a need for continuously updated content. Many brands and marketers donâ&#x20AC;&#x2122;t have the resources to devote to constant content creation. Some technologies are being developed to fill the gap, using resources to find, organize and share relevant content for your brand that is engineered for fair use and copywriting. + Social Flow - Engagement occurs when content is delivered at the moment when an audience is most receptive. Social Flow determines when your audience is available (think Twitter followers), and publishes your tweets and posts when the topic of interest is trending. Could be 3 am or 9 am; Social Flow takes the guesswork out of your content publishing process. + Sense Networks delivers content to customers on the go, at points of interest. The technology extracts location

data of users (stripping away personal data) in order to build a profile of the generic mobile user. If the user tends to appear at home improvement centers continuously, that user is identified as a do-it-yourselfer and might be more receptive to this content. Conversely if the user never appears on a golf course, the user will never see a golf-related message.

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mastering the story and its telling

Immersive Experiences: Today, there are many digital platforms that create an immersive experience that animates the world of a story. See Story Worlds Not Stories, above. For example, consider these iPad applications for inspiration and partnership opportunities: + Back in Time. What were the defining moments in the History of Humankind, of Life, of the Universe itself? Back in Time is a multimedia interactive journey through those moments that stiches together visuals, data, and text together for an immersive, educational experience. + Living Earth. Enjoy a stunning, live 3D simulation of earth. But it’s also functional as a useful weather and clock app for the iPad. + “The Fantastic Flying Books of Morris Lessmore.” Inspired, in equal measures, by Hurricane Katrina, Buster Keaton, The Wizard of Oz and a love for

books, “The Fantastic Flying Books of Mr. Morris Lessmore” is a poignant, humorous allegory about the curative powers of story. Using a variety of techniques (miniatures, computer animation, 2D animation), the authors present a hybrid style of animation that harkens back to silent films and MGM Technicolor musicals. + Articles. Browse a world of art through carefully curated galleries with Art.com's newly released shows, but also experience how a tablet allows you to find completely new ways to navigate by finger rather than by mouse.

As we continue to look at the world and ponder the technological developments that affect stories and storytelling in fundamental ways, we must – first and foremost – remember that the world is still comprised of human beings who look to stories (and each other) as a way of making emotional connections with a sense of empathy and understanding. In this sense, the goals and desires we have as both storytellers and audiences remain largely the same as they’ve been throughout history: we want to understand our world, we want to see the connections, we want to not feel alone, and we want to share experiences that allow us to celebrate and embrace what it means to be human. It’s about “AND” not “OR”: The next generation of storytelling is about being open. Open to collaboration and open to new ways of creating and delivering the story experience to audiences. Because of this, the traditional definitions and boundaries of

brand advertising, Hollywood filmmaking, television production, game design and development, publishing and live experiences need to continue to be broken down and blurred. The next generation is about combining, blending, leveraging and learning from all of these mediums to create narratives that define the next generation and engage audiences in the ways they behave and live today and tomorrow. It is up to all of us as creative storytellers to push these boundaries and demand the redrawing of the lines that define the borders of story. All of us have an opportunity and a responsibility to drive the evolution forward and help to build the body of work that will form the new landscape of storytelling.

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things to keep in Mind

a) Hold Tight Loosely: The next generation story is collaboration between the story teller and the audience, but it is not freeform collaboration. It is critical to remember that the structure of the story you are creating and telling must have enough integrity to achieve the goals and objectives you have, while at the same time have enough flexibility to create a real sense of collaboration and participation with the audience you are telling the story to. b) The story is a living thing: Interactive, immersive, collaborative stories are, by definition, living things. This means that as storytellers, you are never really done with the story or the telling. The next generation of story is a real time performance that takes place between the core narrative and the audience. As storytellers we must be mindful of this and work to engage with our stories in a way that allows us to focus and act on the real time information we receive from our audiences as they engage with

Conclusion

our stories. This means balancing between the big picture of the narrative itself and the granularity of the data that can be gathered in real time as the story unfolds across multiple channels. c) It’s about technology, but we’re still human: As we look at our world today and continue to try and understand the impact of the technological developments that are happening all around us, it is important to remember that in the end we are still human beings seeking emotional connections and a sense of empathy and understanding. d) Embrace the new: As human beings, we are affected and changed by the developments in our world. The ability to connect and communicate at increasingly rapid speeds, anytime, anywhere and on an increasingly wider array of devices and methods allow us to connect to storylines, storytellers and the audiences that listen and participate in stories in more direct and different ways. As next generation storytellers, we need to be hyper-aware of the

changes taking place and work to not only understand them but enthusiastically embrace and leverage them to help bring our stories to life. e) Fundamentals still matter: New developments or capabilities do not minimize the importance of fundamental structures to powerful storytelling. The foundational structures and approaches remain largely unchanged. A story still has to be clear. It has to have an intention and an outcome. There needs to be tension and something at stake. The audience has to care about it.

Telling stories is the fundamental job of marketing. The ability to create and share stories that connect and resonate with consumers is what separates the best marketers (and companies) from the also-rans. This is the same as it has always been. The need to connect with audiences and influence the choices they make will, in all likelihood, remain the same. What changes and will continue to change is the way we can tell those stories. We are in the midst of significant change in our ability to “tell” stories differently. We are still in the early stages of our journey towards mastery. It is an exciting time for anyone with a story to tell.

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Key takeaways

+ The media may have changed, but the power of great stories is constant. The elements of great stories: characters, plot, theme and structure (with a beginning, middle and end) have remained unchanged since the dawn of time. Stories are our most engaging connection engines. + Storytelling tools have changed throughout history. Storytellers create realities for their audiences. As new tools are developed (the printing press, cameras, film, etc.), storytellers find ways to use these tools to broaden their audiences and create more engaging stories. + As new tools are introduced, there is a period of experimentation and exploration. Such exploration will lead to many failed experiments, but will eventually lead storytellers to mastery of these new tools.

+ Next Generation Storytelling, while still far from reaching mastery, requires storytellers to create vivid, complete worlds, stories that evolve and change and prompt audiences to action. They must be responsive in real time and need to be felt throughout the entire brand architecture. + Along the path to mastery for Next Generation Storytelling, brands must consider both longand short-term elements of their stories, grant open access to the stories, data and media, operate in real time and build a consistent storyline throughout their organization.

Thank you and conclusion

THANK YOU

We’d like to thank our sponsors for making this year’s “Bright Lights, Big Ideas” experience possible.

THANK YOU

A very special thank you to the individuals who made the Publicis Groupe Bright Lights, Big Ideas experience – and this book – a reality. It is no small task developing compelling content and creating a customized experience for more than 500 agency leads and marketers, but they did it. Together, this task force worked tirelessly for months leading up to CES to make this experience the best it could possibly be. So we just want to say thank you, gracias, merci, danke. We could thank these people in every language and it still wouldn’t be enough.

Core CES Team

Special Thanks to:

Trudi Harris

Lena Petersen

Cheri Carpenter

Guy Abrahams

Christie Hartbarger

John Piccone

Mary DeBrunner

Chris Allen

Ed Haslam

Beth Pyne

Josh Dysart

Kelly Andrews

Lisa Hurwitz

Karuna Rawal

Tracey Scheppach

Darin Archer

Alyson Hyder

Mark Renshaw

Claire Ballard

Rob Jayson

Kevin Ritt

Event Team @ AgencyEA

Bob Bejan

Greg Kahn

Mike Russell

Genny Aamoth

Chris Bowler

Diane Jackson

Bryan Scanlon

Korbi Bare

Jacqueline Boy

Trevor Johnson

Chuck Schultz

Sean Bourke

Brett Celedonia

Lindsay Jurist-Rosner

Adrienne Scordato

Terry Castre

Ellis Chambers

Helen Katz

Rocco Smeriglio

Charlie Eder

Pravin Chandiramani

Jill Kelly

Wendi Smith

Katharine Greis

Amy Cheronis

Christian Kugel

Bertil Snel

Hunter Haas

Kevin Cochrane

Jeremy Lockhorn

Matt Spielman

Matthew McFarling

Brian Cooley

Jon Manka

Tina Stanton

David St. Martin

Jeannie Curcio

Randy Mayer

Loni Stark

Lauren Daniels

John McCarus

Samantha Starmer

Liz Darby

Anita McGorty

Meghan Sturges

Andrew Davidson

Michelle McGowan

Rishad Tobaccowala

Beth Doyle

Samantha Merritt

Brian Walker

Paul Do Forno

Kelly Moran

Bill Watkins

Abby Dow

Dave Morgan

Michael Wiley

John Dunleavy

Steve Murtos

Mickey Wilson

Dan Fisher

Erika Nardini

Steven Wolfe-Pereira

Jenn Freeman

Scott Navarro

And many more...

Jason Goldberg

Lola Olateju

Vlad Gorenshteyn

Jennifer Pack Britta Petersen

Conclusion

We hope the perspectives provided within these pages prove to be useful as you navigate the show floor and most importantly, as you conduct business well into the future. Given the ever-changing nature of this space, we know a lot can change in a few short days, and as such, we will be refreshing the content in the days following CES. We want you to be armed with the most relevant and latest information. Thank you for entrusting us to be your guide at CES this year, and we hope to see you again in 2014.