Gary Bicker, UK Country Manager at affilinet UK offers his thoughts on the future of digital marketing in the new year
As we head towards 2012, we have seen some marked changes in the online world, not least the increased discussion of mobile and social, as well as companies finding new ways to utilise these new channels. In this article, I will discuss some of the key trends for the coming year and offer advice on what marketing professionals can do to ensure they are able to take advantage of these new opportunities in 2012.
Making mobile affiliate friendly
There has already been an astonishing take-up of smartphones in the last year, with consumers increasingly using their mobile to access the internet. Recent figures released by the IAB reveal that around 21 million UK residents use mobile internet every month, with 23 per cent of all time spent online now being via mobile devices. The research also shows that smartphone users are 63 per cent more likely to engage with mobile commerce, highlighting the growing trend towards purchasing on mobile.
Therefore, it’s clear to see that the scales are now sufficient for advertisers to take mobile seriously, especially as this channel offers access to a key demographic of younger, ABC1 consumers that are not afraid to spend on mobile. Yet many advertisers are still playing catch-up with the wealth of m-commerce options available to them, whether these are mobile optimised websites or applications. One major success story has been Domino’s Pizza, who recently reported taking £130,000 per day through m-commerce.
It’s clear to see there is a huge potential to drive both incremental sales and footfall to stores using mobile. This does not necessarily require a specially designed mobile application, which can have its own challenges and complexities to build in order to be instantly clear and accessible to all users. With many web-enabled smartphones, it can be far more cost-effective to use mobile optimised websites, which can still offer a strong user-experience. However, it’s fair to say that the UK affiliate channel as a whole has yet to fully embrace mobile and it’s paramount that advertisers invest in mobile sites and integrate the necessary tracking technology in order to not only engage but also accurately report on mobile activity.
Being more social
While many are still unsure about the opportunity social networks offer in relation to direct sales engagement, the growth of social has already meant social platforms are increasingly able to engage consumers wherever and whenever they are. Many companies have invested in transactional Facebook pages, offering consumers the opportunity to purchase via this channel. The question is how exactly to gain the most value from social media platforms, for both the advertiser and the consumer.
Another solution that we are already increasingly seeing in the market is the use of virtual currency, often within online games in exchange for redeeming advertisers’ offers. Facebook is one of the social networks already trying this and if they are able to make a success of their own currency, it will go a long way to educating consumers on how these systems can work. A key benefit of Facebook’s success would be the ability to share offers and products among friends and peers, increasing the level of trust and, in line, the propensity to buy.
Social networks also offer advertisers a higher level of information on consumers, lending itself perfectly to more intelligent and accurate recommendations engines. Enabling advertisers to offer deals and products that are more accurate, based on behaviour, friends and any characteristics or preferences indicated on the platform. The danger with social engagement is the need to monitor the space for relevant feedback and potential complaints, which is something that merchants inevitably will have to consider when dealing with user-generated content.
The data Holy Grail
2012 is set to be the year that advertisers begin to truly take advantage of the wealth of information available to them, better utilising this data to make both business and marketing decisions. While many marketers need only worry about a very tiny percentage of the 1.8 Zetabytes of data that will be produced this year, making sense of what they have is no easy task, especially at a product level. Pinpointing the relevant data that will drive up the success of marketing campaigns can feel like mission impossible. Most organisations know that the data they are sitting on is potentially a pot of gold, but unless they can find a way to sort the wheat from the chaff it is, frankly, useless.
As companies move further into mobile and their channels to market continue to diversify, so the ability to understanding and connecting data becomes more challenging. Helping clients to make sense of their data is a real opportunity for networks to showcase their value. As transparency becomes ever more critical, those not on board with the data revolution may well be swept aside. As the say goes, you have to be in it to win it.
In time, this information will allow companies to better understand how customers come to their site, and via which publishers, from this they can hone and refine future marketing strategy. It will also enable advertisers to build a relationship with the customer based on their actual – rather than perceived – purchasing behaviour. By doing this, marketing strategies can be devised that actually resonate with customers and this in turn helps to capture the Holy Grail: lifetime spend.
A year of change?
There are clearly some interesting and exciting trends to look forward to in the next 12 months, but most exciting is how these can grow from each other’s success. More than any other year, the combination of mobile, social and other trends can each be successful independently, while also allowing each other to succeed. One thing is for sure, 2012 could see some major changes in the industry and how consumers engage with brands on a daily basis.