The 50 Most Important Marketing Charts of 2016

Every year, we look back and analyze the biggest trends that shaped marketing. We also look ahead to how they’ll impact marketers in the coming

year. Last year was the year of mobile, as messaging apps exploded and started

to converge with social networks.

Another standout trend was ad blocking, as software became easily accessible

to both desktop and mobile browsers. For marketers and publishers, this

means a readiness to innovate is key. And speaking of innovation, new media

formats gained popularity in new apps like Snapchat, and were experimented

by stalwart platforms like Twitter and Facebook. So in a world where brands

can get their message across on a multitude of channels, how much does it cost to create this content?

We undertook our largest study to date, surveying over 300 CMOs and senior

marketers about the costs of producing content — and the results show that

content costs are on the rise across industries. This year, we’ve included new

categories on creative workflows, customer experience, and streaming media

– three things that are of increasing importance to marketers. Jump right in.

Inside this collection

For brands to succeed today, they need to communicate effectively with their mobile consumer. These charts illuminate mobile web behavior and content consumption patterns.

Mobile

60%

40%Total Computer MinutesTotal Mobile Minutes

65%

35%

Nearly two-thirds of all internet time is spent on mobile

December 2014 December 2015

Percentage of total Internet minutes — Monthly minutes spent online, Dec 2014 vs. Dec 2015

Source: IAB Digital Trend Usage Report, 2015

Mobile e-commerce will double by 2020US Mobile Commerce Forecast, 2015-2020

Source: Mobile Commerce Daily, Forrester Research Mobile and Tablet Commerce Forecast, 2015-2020

2015 (F) 2016 (F) 2017 (F) 2018 (F) 2019 (F) 2020 (F)

$79$69

$60$51

$43$35

$173$156$138$119

$99$80

Tablet Smartphone

F = Forecast

Share of mobile commerce by 2020

49%

0

60

120

180

240

300

2015 2016 2020

58.3

31.4

25

63.7

36.327.7 162.2

79.658.5

APAC EMEA Americas

111.2

147.3

284.3

Asia Pacific will become the world’s largest app market…

Source:App Annie

App downloads by region, in billions

0

60

120

180

240

300

2015 2016 2020

194.1

98.373.2

90.24938

China Rest of World

…led by China, with 51.9% of global app downloadsApp downloads by region, in billions

Source:App Annie

111.2

147.3

284.3

Apps, not browsers, get the lion’s share of mobile usage Mobile Time Spent In Apps Vs. Browser; Daily Minutes Per User Per Day, US

Source: Company Filings, News and Company Announcements, GlobalWebIndex

Min

utes

30

60

90

120

150

180

210

240

270

300

Q1 2013 Q2 2014 Q2 2015

Mobile Browser Mobile Apps

Which brands win on messaging apps?

Snacks

Restaurants

E-Retailers

Movies

TV Shows

Millions0 10 20 30 40 50 60 70 80 90 100

35-49 18-34 Total

Source: MEC

Brand categories messaging app users are most likely to interact with

87% of millennials say they’re never without their smartphones

Millions0 10 20 30 40 50 60 70 80 90 100

Agree Disagree Not Sure

My smartphone never leaves my side, night or day

When I wake up, the first thing I do is reach for my smartphone

I spend more than two hours every day using my smartphone

In the next five years, I believe everything will be done on mobile devices

Source: Mary Meeker’s 2015 Internet Trend Reports

The second screen is alive and well Percent who strongly agree with the following statements:

Source: Nielsen Global Digital Landscape Survey

Global Average

Asia-Pacific

Europe

Middle East/Africa

Latin America

North America

Percent of respondents who strongly agree0 15 30 45 60 75

"I browse the internet while watching video programming""I like to keep up with shows so I can join the conversation on social media""I watch live video programming content more if it has a social media tie-in"

Shar

e of

Pla

ys (P

erce

nt)

0

10

20

30

40

50

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

4%6% 7% 7% 8%

10%13%

15%17%

22%

27%30%

38%

42%44% 45% 46%

Source: Ooyala

Percentage of Video Plays on Mobile Devices, Global

Watching mobile video has never been more popular

CMOs think mobile marketing can perform better “Rate the performance of your company’s mobile marketing activities (1 = Poor, 7 = Excellent)”

Source: The CMO Survey by the Fuqua School of Business at Duke University

1

3

4

6

7

Customer acquisition Customer engagement Customer retention Delivering your band message Sales Profits

2.742.903.443.143.46

2.92 2.642.743.473.12

3.562.89

August 2015 February 2016

There’s huge scope for mobile banking in emerging marketsEmerging Market Penetration: Bank Accounts vs. Mobile Phones, 2014-2015

Source: World Bank, Communication Authority of Kenya, TRAI

0%

14%

29%

43%

57%

71%

86%

100%

Kenya India

80%81%

53%

75%

Bank Account Penetration Mobile Penetration

But for many, data is too expensive relative to income Cost of 500MB of data against hourly minimum wage in USD

Source: Jana

5

10

15

20

25

Mexico South Africa Brazil Nigeria Philippines Turkey India Indonesia

$0.43$0.2$1.29$1.18

$0.46$1.04$1.22

$0.56

$2.39$3.38

$9.98

$11.76$12.88

$13.77

$16.47

$23.41

Cost of 500MB of data Hourly minimum wage (USD)

A multitude of new media formats lets brands amplify their reach, but they need to be prepared to be innovative in order to combat ad blocking and the costliness of new media formats.

Digital Media

Current Levels Over Next 12 Months In Next 5 Years

10.6%

13.2%

20.9%

% of Marketing Budget

Social media spend will increase to 20% of the marketing budget Social media spending as percent of marketing budgets

Source:The CMO Survey 2016

Brands outsource up to 22% of social media to agenciesPercentage of company’s social media activities performed by outside agencies

Source:The CMO Survey 2016

Feb-14 Feb-15 Aug-15 Feb-16

17.4%

18.9%

21.7%

20%

% Outside Agencies

Creative alert: Brands are using more emojis in their contentTop global brands that use emojis in posts

Source: SocialBakers

Sess

ions

0

50

100

150

200

250

300

350

Facebook Twitter

Q4 2014 Q4 2015

Note: Top 500 brands based on followers

Twitter’s user growth continues to stall Twitter Monthly Active Users (Global)

Source:Twitter

Mill

ions

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Monthly Active Users (Global) QoQ Growth

$305$307$304$302$288$284$271

$255$241$232$218$204$185

320MMonthly Active Users at Present

Ad blocking is on the rise, and it isn’t going anywhereGlobal Monthly Ad Blocking Software Users (desktop)

Source: PageFair and Adobe | 2015 Ad Blocking Report

Glo

bal M

onth

ly A

ctiv

e U

sers

Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015

21M30M

39M

54M

121M

181M

198MMonthly Active Users

Billi

on U

SD

0

10

20

30

40

50

2013 2014 2015 2016

The global cost of ad blocking will almost double this yearGlobal Economic Cost of Blocking Ads

PageFair and Adobe | 2015 Ad Blocking Report

90%Increase in ad blocking cost from 2015-16

But ad revenue is still growing — along with subscribers New York Times Digital Revenue (Global)

Source: The New York Times

Mill

ions

$20

$40

$60

$80

$100

$120

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14

Advertising Subscriptions

For most news websites, over half of mobile data is spent on adsTime to load editorial content versus advertising content for major news publications

Seco

nds

to lo

ad

0

3

6

9

12

15

18

21

24

27

30

The Daily Beast

Chicago Tribune

New York Post

Salon

CNN

Los Angeles Times

Vox

The Atlantic

Vice

The Huffington postThe New York Times

Buzzfeed

Seconds to load advertising content Seconds to load editorial content

Source: The New York Times, The Cost of Mobile Ads on 50 News Websites | October 2015

Facebook and Pandora are the most used on mobileMonthly mobile minutes (Billions), Dec 2015 (to any site or app via mobile device)

Source: IAB Digital Usage Trend Report Full Year 2015

Billi

ons

of M

inut

es

210

Facebook Pandora Google Apple Spotify Yahoo Sites Amazon Sites Netflix Snapchat Twitter Microsoft Sites6.87.210.911.113.719.419.8

74.692.295

200.7

984.3BTotal monthly mobile minutes

What drives people to block ads?Why consumers tried using ad blockers (Percentage of respondents)

Found out ad blockers exist

Got a virus from clicking on an ad

Got tired of low quality ads

A friend recommended an ad blocker

Don't like seeing behavioral targeted ads

0 4 8 11 15 19 23 26 30

Source: IAB

Visitors to social networking sites are more likely to block adsGlobal share of ad blocking rates by site category (Q2 2015)

Source: PageFair and Adobe | 2015 Ad Blocking Report

0

6

12

18

24

30

Gaming

Socia

l Netw

orking

Tech/

Intern

et

Educ

ation

Sport

s/Re

creati

on

Finan

cial S

ervice

s

Resta

urants

/Dini

ng/F

ood

Charita

ble O

rganiz

ation

s

Govern

ment/L

egal

User experience is now on marketers’ radar, thanks to ad blocking Almost two-third of marketers surveyed said UX is a high priority

Source: Celtra

We don't think about itIt's somewhat importantIt's high priorityIt's our highest priority

X

22%

48%

26%

4%

9%

24%

21%

46% Content blockingSubscription modelsPaywallsUsing an ad block vendor

X

Most publishers will turn to content blocking Publishers’ preferred response to ad blocking

Source: Celtra

Cord-cutting isn't just a buzzword anymore: people are choosing on-demand streaming services over cable subscriptions, leaving advertisers wondering how to fill the gap.

Streaming Media

“Cord-cutting” is on the rise as cable subscriptions decline Cable subscribers, by service

Source: Leichman Research Group

Mill

ions

40

42

44

46

48

50

52

54

56

58

60

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

TV Broadband Internet

Spotify is still the leading streaming music servicePaying subscribers in Q1 2016

Source: Spotify, Apple

Mill

ions

0

10

20

30

40

Spotify Apple Music

11M

30M

Podcasts are increasing in popularityShare of U.S. population that listened to podcasts in the last month

Source: Edison Research

Perc

ent o

f U.S

. Pop

ulat

ion

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Netflix is aggressively adding contentNetflix cost of content streaming

Source: Company Filings, Statiista

Billi

ons

(USD

)

0

4

8

12

2010 2011 2012 2013 2014 2015

Higher income households stream more video On-demand streaming and high-speed internet penetration are income-related

Source: Nielsen

18%

15%

35%

32% 29%

19% 31%

21%4%5%

23%

68%

<$40k $40k-$75k $75k-$100k $100k+

Have broadband, but don’t on-demand stream video

Stream on-demand video Don’t have broadband

Short-form video streaming is on the declineShare of video content type streamed globally per year

Source: Conviva

Mill

ions

20%

40%

60%

80%

100%

2014 2015

Live Movie Episodic Short-form

Marketing budgets may be going up, but are those dollars being invested wisely? Knowledge management and process inefficiency can drive down high production costs.

Marketing Spend and Strategy

Search Ads

Social

Traditional 22%12%

Display Ads

13%

Brand Publishing14%

Programmatic

10%

Website & Ecommerce

15%

Advertising48%

14%

Search Ads

Social

Traditional 22%12%

Display Ads

13%

Brand Publishing14%

Programmatic

10%

Website & Ecommerce

15%

Advertising48%

14%

How does the average advertising budget break down?

Source: Percolate

Marketing represents an increasing percent of firm budgetsMarketing budget as percentage of firm budget

Source:The CMO Survey 2016

7

9

11

13

Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16

8.1%

10%

10.4%

11.4%

10.6%

9.4%

10.9% 10.9%

10.1%

11.4%

12.1%

% Marketing Budget

Marketing budgets forecasted to increase 6.9%Percent change in marketing budgets in next 12 months

Source:The CMO Survey 2016

Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-150.5%

1.1%

5.9%

9.2%

6.7%

9.1%

8.1%

6.4%6.1%

4.3%

6.7%

5.1%

8.7%

5.5%

6.9%

Change in Marketing Spending

New media formats are driving growing production costsTop 5 Responses: “What are the top drivers of non-working spend for your team? (Select up to three.)”

Source: Percolate

Emergence of more expensive media formats

Brief creation, planning, and media evaluation

Employee talent costs

Agency costs

Lack of defined processfor newer media

Percent of respondents0 5 10 15 20 25 30 35 40 45

B2C brands expect the most growth in marketing costsNon-working spend growth trends (n < 12 excluded)

Source: Percolate

Perc

ent o

f bud

get c

onsu

med

by

non-

wor

king

exp

ense

s

0

10

20

30

40

50

60

70

80

90

100

Banking Consumer-Packaged Goods IT & Technology Manufacturing Retail Professional Services

37%

57%51%60%

78%

25%

51%62%61%65%

89%

42%

Non-working spend has increased in the past year Non-working spend will increase in the next year

Production cost growth isn’t under control

Source: Percolate

How have non-working spend levels grown in the last year?

2%10%

26%

40%

22%

Increased signifcantly IncreasedStayed about the same DecreasedDecreased significantly

Have seen growth in the past year

62%

4%13%

33% 40%

11%

Will increase significantly Will increaseWill stay about the same Will decreaseWill decrease significantly

Expect non-working to grow in the next year

51%

How do you expect non-working spend levels to grow in the next year?

And here’s how much goes toward ad production

Source: Percolate

Ave

rage

sha

re (b

y m

edia

cat

egor

y)

20

40

60

80

100

Traditional media Brand publishing Social Website & E-commerce Programmatic Display ads Search ads

38%38%40%40%42%43%50%

Share of non-working spend Share of working spend

How Non-Working Spend Consumes Budgets Across Industries (n < 12 excluded)

Ad production costs don’t have an industry bias

Source: Percolate

Perc

ent o

f bud

get c

onsu

med

by

non-

wor

king

exp

ense

s

0

5

10

15

20

25

30

35

40

45

50

Banking Consumer-Packaged Goods IT & Technology Manufacturing Retail Professional Services

24%19%16%17%

23%14%

42%46%

32%37%

41%38%

Advertising Budget Marketing Budget

Production costs don’t have a revenue bias, eitherHow Non-Working Spend Consumes Budgets (By Revenue)

Source: Percolate

Perc

ent o

f bud

get c

onsu

med

by

non-

wor

king

exp

ense

s

0

5

10

15

20

25

30

35

40

45

Less than $50M $50M to $249M $250M to $999M $1B to $4.99B $5B or More

25%21%19%17%

23%

42%42%40%34%

40%

Advertising Budget Marketing Budget

Perc

ent o

f bud

get c

onsu

med

by

non-

wor

king

exp

ense

s

0

5

10

15

20

25

30

35

40

45

50

Less than $10M $10M to $50M $51M to $100M $101M to $500M Over $500M

27%22%20%18%17%

46%43%38%36%37%

Advertising Budget Marketing Budget

…But they grow with a larger marketing budgetHow Non-Working Spend Consumes Budgets (By Annual Marketing Budget)

Source: Percolate

How low can production costs get?Non-working spend as a share of advertising budget vs. marketing budget

Source: Percolate

Perc

ent o

f bud

get c

onsu

med

by

non-

wor

king

exp

ense

s

0

4

8

12

16

20

24

28

32

36

40

Non-working as a share of advertising budget Non-working as a share of marketing budget

8%

24%20%

40%

Average High Performers*

*High performers are respondents who disagreed that non-working spend is too high, reported no growth in non-working spend levels in the past year, and said they were confident in their ability to control non-working spend.

Marketing has a knowledge management problem“Rate your company on each marketing knowledge metric during the last 12 months (1 = Poor, 5 = Excellent)”

Source: The 2016 CMO Survey by the Fuqua School of Business at Duke University. Note: Question asked irregularly.

Ave

rage

Rat

ing

1

2

3

4

5

February 2011 Agust 2013 August 2014 February 2016

Sharing valuable marketing knowledge Developing and using customer insights

0

10

20

30

40

50

Brand Marketers' Expectations Agency Marketers' Expectations

4%

16%

28%30%

Significant Shift Moderate Shift

Is a shift to in-house creative agencies imminent? How marketers expect assignments to shift to in-house agencies

Source: RSW/US

Globally, venture capitalists are optimistic about IoT startups, as recent funding increases show. But enterprises are still cautious about IoT for data security reasons.

Smart Tech and the Internet of Things

IoT startup funding has risen rapidly in the last five years IoT Global Quarterly Financing History, Q1’10- Q3’15

Source: CB Insights

$ Bi

llion

s

Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15

Deals Investment ($M)

$434

$626

$428

$602$548$547

$284

$350

$277

$479

$219$199

$363

$301

$99

$268$262$244

$165$184

$270

$163$151

34

63

44

6565

54

37

64

42

54

29

38

30

43

2628

33

26

212125

232222 2325

21 21

26

33

2826

43

30

38

29

54

42

64

37

54

65 65

44

63

34

Enterprises are concerned about IoT data security and privacyTop Enterprise IoT Security Concerns (Global)

Source: Varmetric Data Threat Report, 2016

Protecting sensitive data generated by IoT Devices

Privacy Violations

Identifying which data is sensitive

Priveleged user access to IoT data and devices

Attacks on devices may impact critical conditions

0 5 10 15 20 25 30 35 40

n = 1100

Not so fast: Wearables will depend on connectivity through 2020Wearable devices with and without connectivity (millions)

Source: Cisco

0

140

280

420

560

700

2015 2020

41

3.2

601

97

Dependent wearables Wearables with connectivity

In the age of the hyperconnected consumer, brands have to design customer experiences that ensure they meet customer expectations and provide a seamless experience on all channels.

Customer Experience

Customer service: People still reach for the phone first Customer Service Channel US Customers Use First for Urgent Issues (2015)

Source:North Ridge Group

Social media Email Live chat Phone

77%

8%8%2%

Facebook is the go-to channel for customer complaintsSocial media platform US consumers are most likely to use for customer service (2015)

Source NM Incite

Facebook Twitter YouTube

29%

12%13%

Pricing, not advertising, influences purchase the most Most important factors that influence US consumers’ purchase decisions (2014)

Source Accenture

Sales/ competitive pricing Superior products Superior customer experience Loyalty programs Relevant promotions Engaging advertising campaign Celebrity endorsement

61%

3%6%26%31%35%36%

Percolate is The System of Record for Marketing. Our technology helps the world's largest and fastest-growing

brands at every step of the marketing process.

Want to learn more?

Contact learn@percolate.com for more information

or request a demo today at percolate.com/request-demo

Mihika Barua Mihika Barua is a member of Percolate’s Integrated

Marketing team. Her focus areas are content

marketing and social media management.