CES 2013: Big Ideas

A Guide to the 2013 Consumer eleCtroniCs show

3CH 3 : CommerCe+ 4

IntroductIon

chapter 1 : connectIon engIne

chapter 2 : data-drIven MarketIng

chapter 3 : coMMerce+

chapter 4 : next generatIon StorytellIng

thank you

concluSIon

5

7

27

49

67

93

98

Table of ConTenTs

5

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

WelCoMesIDebaR : Who Is PublICIs GRouPe?

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.

8

ChAPter 1

ConneCTIon enGIne

9CH 1 : ConneCtion engine

JeReMy loCkhoRnVP, eMeRGInG MeDIa, RazoRfIsh

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 allensVP, DIReCToR of VIDeo InnoVaTIon, sMGx

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 sChulTzVP, DIReCToR neW MeDIa, sMGx

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 haRTbaRGeRVP, ConneCTeD DeVICesyuMe

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.

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 haslaMsenIoR VICe PResIDenT, MaRkeTInG, yuMe

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!). ed holds a B.S. in Structural engineering, an M.S. in Systems engineering and aBd in operations research from purdue university.


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.

InTRoDuCTIon

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.

PaRT 1 : WhaT Is The ConneCTIon enGIne?


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 high-speed 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

sIDebaR : The CoMInG ConneCTIon enGIne exPlosIon

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.

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.

(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-the-top 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 1. FIxed BroadBand houSehold penetratIon% of total households in each group

2012 2016

Source: eMarketer, April 2012

taBle 2. WorldWIde 4g lte SuBScrIBerS (MM)

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


ConTenT

despite consumers’ expectations of connectivity and inter-operability 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

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.

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.

taBle 4. u.S. taBlet uSerS

ta

Bl

et

uS

er

S

pe

rc

en

t o

F p

op

ul

at

Ion

Source: eMarketer, June 2012

taBle 3. MoBIle phone penetratIon % of total population in each group

Source: eMarketer, April 2012

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

taBle 5. connected tv penetratIon number of Internet connected devices (Millions)

Smartphones Feature phones

connected tvs gaming consoles Blu-ray players

over the top Boxes pay tv Set top Boxes


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

PaRT 2 : ConTexT MaTTeRs

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 multimedia-

texting, 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 consumer-

driven), 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

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


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 entertainment-

related 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 peer-

to-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

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, cross-device 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.

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: Second-Screen 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.

sIDebaR : soCIal TV


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

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 second-screen 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.

PaRT 3: The IMPlICaTIons

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.


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 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 day-

parted, 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 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

consumers will expect all of

these devices to operate with the

same functionality (and to pass

information across each other).

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.

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.

key TakeaWays


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 touch-

first 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 real-

time 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-of-

home advertising.)

ThInGs To look foR

28

ChAPter 2

DaTa-DRIVen MaRkeTInG

Ch 2 : DaTa-DRIVen MaRkeTInG 29

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).

MaTT sPIelMansVP 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.

bRyan sCanlonPResIDenT, 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 data-

driven 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.

Rob JaysonChIef 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 brand-

specific 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.

31CH 2 : Data-Driven marketing

InTRoDuCTIonPaRT 1 : The RIse of bIG DaTa

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 data-

dependent, we need to make it

data-driven.

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

1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition, and productivity,” June 20112 Ibid.3 Hilbert and Lopez, “The world’s technological capacity to store, communicate, and compute information,” Science, 2011

dAtA storAGe hAs Grown siGniFiCAntlY, shiFtinG mArKedlY From AnAloG to diGitAl AFter 2000

Global installed, optimally compressed, storage

overallexabytes

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

100%=

digital

Analog

1986 1993 2000 2007

Detail % : exabytes

300

250

200

150

100

50

0

1986 1993 2000 2007

75

25

54

6

94

295

97

10

3

99

3

1


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?)

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 decision-makers 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.

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

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.

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.

sIDebaR : aRe you PRePaReD?

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

0 10 20 30 40 50 60

29%

51%

42%

45%

39%

we have too little or no customer/consumer data

our data is collected too infrequently or is not real-time enough

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

50%

PerCent oF Cmos rePortinG underPrePAredness

71%data explosion

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 55%

Global outsourcing 54%

regulatory considerations 50%

Corporate transparency 47%


All of this data is being set up

for another revolution: the live

data stream. with powerful

portable devices and always-

on 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-to-

the-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,

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.

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

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

PaRT 2 : The lIVe DaTa sTReaM

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

soCiAl networK users And PenetrAtion in north AmeriCA

millions, % of internet users and % of population

63.6%

47.2% 49.8%

65.8%

51.4%

66.9%

52.9%

68.0%

163.9

2011

social network users

% of internet users

% of population

174.7

2012

181.9

2013

189.2

2014

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

smArtPhone owners leAd the wAY in “ConneCted ViewinG” eXPerienCes% in each group who have used their phone in the preceding 30 days to...

SMARTPHONEOWNERS (N=904)

OTHER CELL OWNERS (N=1050)

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

58% 17%

Check whether something heard was true or not

37

6

Visit a website mentioned on TV 35 3

Exchange text messages with someone watching the program

32 13

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

20 2

Post your own comments online about a program you were watching

19 2

Vote for a reality show contestant 9 4


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.

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

soPhistiCAtion leVel* oF their Current PersonAliZAtion eFForts ACCordinG to us retAilers, Q3 2011% of respondents

1-354% 4-6

33%

7-1013%

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

PaRT 3 : fRoM auToMaTeD anD TaCTICal To PReDICTIVe

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.

Re

Tu

Rn

of

In

Ve

sT

Me

nT

1400%

1200%

1000%

800%

600%

400%

200%

0%

Predictive

strategic

tactical

Automated

PredictivestrategictacticalAutomated

2. big Data accelerates decision-making. 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.

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)


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 payroll-challenged 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

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 cross- sales. Matching first-party data from brand customers with third-party 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.

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, Internet-connected 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 cloud-based 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 mass-awareness 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

sIDebaR : MaRkeTeRs MusT Play ‘Moneyball’

dAtABAse mAnAGement

PlAtForm

PlannInGDaTa

3rd

Party data

1st

Party Data


Becoming a Predictive Company,

however, will require changes

in the ways many do business,

both at the macro and day-to-

day 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 fastest-

growing 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:

teCh-sAVVY leAdershiP.

not only are the most successful

digital companies well-stocked

with engineers, scientists and tech-

centric 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 marketing-

related 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

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 micro-measures of exact audience patterns, which will be baked

into ad campaign deals. Imagine delivering your gross ratings points with set-top box data-based 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?

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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 non-

digital 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 open-

source community. open-source

data management technologies

like hadoop and pay-as-you-

go 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, always-

on 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.


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, time-consuming 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-privacy-and-information-sharing.pdf)


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 live-

interaction 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.

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.

“Consumers Feel more ComFortABle shArinG inFormAtion iF theY understAnd the BeneFits to them indiViduAllY or As PArt oF A lArGer GrouP” – PwC surVeY.

key TakeaWaysThInGs To ThInk abouT on The Ces flooR

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 todAY’s omniChAnnel shoPPer

50

51CH 3 : CommerCe+

saManTha sTaRMeR VP exPeRIenCe, 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 Do foRnosVP, CoMMeRCe & ConTenTRazoRfIsh

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 GolDbeRGVP sTRaTeGy, CoMMeRCe & ConTenT, RazoRfIsh

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 start-ups focused on ecommerce.

DaRIn aRCheR sR. PRoDuCT MaRkeTInG ManaGeR, CoMMeRCeaDobe

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.

53CH 3 : CommerCe+

lIsa huRWITzeVP, GRouP aCCounT DIReCToR, leo buRneTT / aRC WoRlDWIDe

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 RaWalexeCuTIVe VICe PResIDenT, sTRaTeGy DIReCToR leo buRneTT GRouP

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.

InTRoDuCTIon

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 post-

purchase 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.

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.

1 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 20122 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012

55CH 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

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)

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.

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

sIDebaR : shoWRooMInG

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.

57CH 3 : CommerCe+

The fuTuRe of CoMMeRCe

with consumers possessing more

devices and having an always-

on 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 self-

service 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.

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

Shopping as a planned, site-specific activity is fading. In the past, consumers were either forced to be physically present in a store or tied to a computer or Internet-connected 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.

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.

6 Google 2012 Holiday Intentions Survey.7 PriceGrabber 2012 Shopping Outlook8 Forrester Research, U.S. Cross Channel Retail Forecast

(Google 2012 Holiday Intentions)

ChArt 1lines Between oFFline And online shoPPinG eXPerienCes Are BlurrinG

research online and visit store to

purchase

51% Visit store first then

purchase online

17% research online,

visit store to view purchase, then go online to purchase

32%

59CH 3 : CommerCe+

The RIse of oMnIChannel

oMnIChannel MaRkeTInG

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

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 brick-

and-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.

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.

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 user-

generated, 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)

9 Forrester, “Welcome to the Age of Agile Commerce”10 Forrester, “The Business Impact of Customer Experience,” 2012 11 Leo Burnett Participation Framework: Understanding the Human Decision Journey, August 2012

61CH 3 : CommerCe+

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.

[2]

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).

[3]

express allows customers to save items to their retail accounts through mobile apps and through the Internet, with easy access

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.

[5]

at&t has created a 10,000-square-foot 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.

oMnIChannel anD The oRGanIzaTIonal IMPaCT

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

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).

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

63CH 3 : CommerCe+

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

“eVerY AsPeCt And eVerY innoVAtion oF our miChiGAn AVenue store hAs Been desiGned with the Customer eXPerienCe in mind” (Paul Roth, president of AT&T retail sales and service)

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)

13 Forrester, “The State of Customer Experience 2012”

ChArt 2Consumers inCreAsinGlY demAnd A seAmless eXPerienCe ACross touChPoints

“which of the following do you expect from a retailer or brand?”

Base: 4,731 us online adults (multiple response accepted)

52%to return products purchased online to a physical store

44%to see the same assortment

of products no matter where i shop (e.g., stores websites, mobile apps)

11%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%to view available inventory online and view my mobile device

25%to easily retrieve my loyalty program information in stores, online, over the

phone, or using a mobile app

28%retailers to match prices if i can

find a product cheaper on my mobile device while in the store

32%Physical store location to be able to place orders for me online

33%Customer service representatives in stores

online, and over the phone to be able to view my transaction history

43%to track or change my

order online, in a store, over the phone, or using a mobile app

SOURCE: North American Technographics Retail Online Survey, Q1 2011 (US)

65CH 3 : CommerCe+

key TakeaWaysThInGs To ConsIDeR on The flooR

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.

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 brick-

and-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.

WhaT To WaTCh foR

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.

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

68

Ch 4 : nexT GeneRaTIon sToRyTellInG 69

John MCCaRussenIoR VICe PResIDenT anD PRaCTICe leaD, bRanD ConTenT, DIGITas

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.

ChRIs boWleRGVP, soCIal MeDIaRazoRfIsh

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.

bob beJanChIef DeVeloPMenT offICeR, MslGRouP

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.

eRIka naRDInIsenIoR VICe PResIDenT of sales anD MaRkeTInG, DeManD MeDIa 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.

71CH 4 : next generation storytelling

MaRk RenshaWChIef 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, cross-channel, 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 sTuRGesVP, 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.

InTRoDuCTIon

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.


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.


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 battle-ground 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 follow-up 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.

sIDebaR : obaMa Vs. RoMney

a second critical platform for the obama campaign was the data-driven 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.


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 agreed-

upon 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 engineering-

challenged 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 user-

generated 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.

PaRT 2 : PRInCIPles

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.


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.

Ch 4 : nexT GeneRaTIon sToRyTellInG 81

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.

sIDebaR : eMeRGInG PlaTfoRMs anD TeChnoloGIes

1. faCebook

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.

2. DeManD MeDIa

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 top-down 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.

3. TWITTeR 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?


5. Mass ReleVanCe

ever been to a live event such as a concert where tweets are streamed and displayed in real-time 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.

alWays-on ConTenT

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 – 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 don’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.

4. sToRIfy

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 multi-dimensional. 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.


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.

MasTeRInG The sToRy anD ITs TellInG

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.


a) hold Tight loosely: the next

generation story is collaboration

between the story teller and

the audience, but it is not free-

form 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

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.

ThInGs To keeP In MInD

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.

ConClusIon


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 experi-

mentation 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 long-

and 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.

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Thank you anD ConClusIon

93

we’d like to thank our sponsors for making this year’s

“Bright lights, Big ideas” experience possible.

Thank you

95

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.

Thank you

Core Ces teAm

Cheri Carpenter

mary deBrunner

Josh dysart

tracey scheppach

eVent teAm @ AGenCYeA

Genny Aamoth

Korbi Bare

sean Bourke

terry Castre

Charlie eder

Katharine Greis

hunter haas

matthew mcFarling

david st. martin

sPeCiAl thAnKs to:

Guy Abrahams

Chris Allen

Kelly Andrews

darin Archer

Claire Ballard

Bob Bejan

Chris Bowler

Jacqueline Boy

Brett Celedonia

ellis Chambers

Pravin Chandiramani

Amy Cheronis

Kevin Cochrane

Brian Cooley

Jeannie Curcio

lauren daniels

liz darby

Andrew davidson

Beth doyle

Paul do Forno

Abby dow

John dunleavy

dan Fisher

Jenn Freeman

Jason Goldberg

Vlad Gorenshteyn

trudi harris

Christie hartbarger

ed haslam

lisa hurwitz

Alyson hyder

rob Jayson

Greg Kahn

diane Jackson

trevor Johnson

lindsay Jurist-rosner

helen Katz

Jill Kelly

Christian Kugel

Jeremy lockhorn

Jon manka

randy mayer

John mcCarus

Anita mcGorty

michelle mcGowan

samantha merritt

Kelly moran

dave morgan

steve murtos

erika nardini

scott navarro

lola olateju

Jennifer Pack

Britta Petersen

lena Petersen

John Piccone

Beth Pyne

Karuna rawal

mark renshaw

Kevin ritt

mike russell

Bryan scanlon

Chuck schultz

Adrienne scordato

rocco smeriglio

wendi smith

Bertil snel

matt spielman

tina stanton

loni stark

samantha starmer

meghan sturges

rishad tobaccowala

Brian walker

Bill watkins

michael wiley

mickey wilson

steven wolfe-Pereira

And many more...

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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.

Documents

CES 2013: Big Ideas