Emarketer Report Making Multichannel Marketing Work

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August 2016

MAKING MULTICHANNEL
MARKETING WORK: FOUR
TACTICS REQUIRED FOR
OMNICHANNEL SUCCESS
As consumers spend more time across a broader number of devices and
channels, the case for multichannel marketing has never been clearer. But few
companies are capable of integrating the required data sources, technologies
and departments to make omnichannel marketing work. Those in this elite
group are there because they have mastered four core tactics which we’ll
cover in this report.

presented by
Dear eMarketer Reader,

eMarketer is pleased to make this report, Making Multichannel Marketing


Work: Four Tactics Required for Omnichannel Success, available to
our readers.

This report is a great example of eMarketer data and insights that focus on the
current state of multichannel marketing in terms of marketers’ adoption and
perceived difficulties.

We invite you to learn more about eMarketer’s approach to research and


why we are considered the industry standard by the world’s leading brands,
media companies and agencies.

We thank you for your interest in Making Multichannel Marketing Work:


Four Tactics Required for Omnichannel Success and IBM for making it
possible for us to offer it to you today.

Best Regards,

Crystal Gurin
SVP President and Publisher

eMarketer, Inc. www.emarketer.com


11 Times Square, Floor 14 cgurin@emarketer.com
New York, NY 10036
MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED
FOR OMNICHANNEL SUCCESS
As consumers spend more time across a broader number of devices and channels, the case for multichannel
marketing has never been clearer. But few companies are capable of integrating the required data sources,
technologies and departments to make omnichannel marketing work. Those in this elite group are there because
they have mastered four core tactics:

■■ They take an audience-centric approach, not a Top Priorities for 2016 According to US Marketing
channel-specific one. Doing so allows the customer to Managers
% of respondents
dictate the ideal communication channels, not individual
Customer-centric focus
channel managers.
79%
Strategy/brand management
■■ They overcome channel silos, both at the
70%
organizational and the technological levels. This
Reporting/insight
enables channel integration via improved data sharing 61%
and communication. Marketing technology
56%
■■ They continually work to make their messaging as Omnichannel/cross-channel promotions
50%
relevant and meaningful as possible, regardless of
Culture/leadership
device, channel or content type. Failure to do so results
48%
in poor customer experience. Department integration (e.g., sales, product, merchandising)
38%
■■ And finally, they rely on multichannel attribution to Budget management/control
both measure and improve omnichannel efforts. This 37%

allows them to take a holistic view of their campaigns Talent acquisition/skills development
34%
and evaluate them without bias.
Improving C-suite/boardroom relationships
34%
WHAT’S IN THIS REPORT? This report details the current
state of multichannel marketing in terms of marketers’ Source: Black Ink ROI, "C-Level 2016 Marketing Study," March 2, 2016
adoption and perceived difficulties, and it highlights four 206193 www.eMarketer.com

core objectives companies must meet to make it work. KEY STAT: Marketers are wising up to multichannel
marketing impediments, such as the lack of a
customer-centric view and technology integration issues.
Fixing such matters was a top priority for US marketing
managers polled in March 2016.

CONTENTS
2 Making Multichannel Marketing Work: Four Tactics
Required for Omnichannel Success
3 Getting Multichannel Right
5 Making Multichannel Marketing Work: Four Areas of Focus
13 eMarketer Interviews

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 3
GETTING MULTICHANNEL RIGHT Top 2 Marketing Strategy and Investment Priorities
According to US Senior Marketers, Sep 2015
% of respondents
Brands know multichannel marketing is critical
Truly integrated marketing (PR, advertising, digital, social,
to reach their audiences, but pulling off a truly mobile, etc.)
integrated effort is no small feat. 63%
14%

Multichannel marketing can be defined simply as using Content marketing


13%
multiple touchpoints to reach audiences. Given the
27%
general nature of the description, it is not uncommon
Big data & analytics
to find it applied in vastly different ways. One marketer 11%
may describe the coordination of digital-only efforts as 16%
multichannel, while another might assume that merely Mobile marketing
maintaining a presence in multiple channels qualifies. 4%
11%
More seasoned marketers understand that multichannel Social media & business
marketing isn’t just about executing in multiple channels 4%
but integrating them. This more holistic, omnichannel 11%
definition that includes online and offline channels is Influencer marketing
now the norm, as are hopes for its implementation. (In 4%
9%
this vein, eMarketer considers this type of multichannel
Real-time marketing (brand newsroom)
marketing analogous to omnichannel marketing and
4%
uses the terms interchangeably throughout this report.)
5%
A September 2015 survey by the PR Council and
Native advertising
Association of National Advertisers (ANA) found that a 4%
truly integrated marketing strategy was far and away the
First priority Second priority
top priority of US senior marketers.
Source: PR Council and Association of National Advertisers (ANA) study as
cited in press release, Oct 22, 2015
199141 www.eMarketer.com

“You need to have an omnichannel digital strategy,” said


Brian Leder, senior vice president and head of North
American Media at digital advertising agency Razorfish.
“It’s no longer good enough to have a mobile strategy, a
programmatic strategy or a fill-in-the-blank strategy. What
brand marketers need to do is they need to be thinking
across all platforms.”

Accomplishing this is proving elusive. A June 2015 survey


of CMOs worldwide conducted by The CMO Club found
just 11% of respondents felt they had a sophisticated
omnichannel strategy, meaning a cross-channel strategy
that included online and offline channels. About a third of
respondents were in the early stages, but the remaining
55% had yet to launch or had no plans to launch such
a strategy.

Though one might expect the portion of marketers


possessing an omnichannel strategy to have risen since
last year, companies are still struggling to keep pace
with expanding media consumption habits, especially
within digital.

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 4
In 2016, eMarketer estimates, the average US adult will Average Time Spent per Day on Select Digital
consume almost 6 hours of digital media daily across Activities by US Adults, by Device, 2013-2018
mobile, desktops/laptops and other connected devices, hrs:mins and CAGR
such as an internet protocol TV (IPTV) or over-the-top 2013 2014 2015 2016 2017 2018 CAGR
(2013-2018)
(OTT) devices like a Roku.
Digital 4:48 5:09 5:28 5:43 5:53 6:01 4.7%
—Mobile 2:15 2:37 2:53 3:06 3:15 3:23 8.4%
Average Time Spent per Day with Major Media by US ——Smartphone 1:11 1:26 1:39 1:49 1:56 2:03 11.6%
Adults, 2016 ——Tablet 0:57 1:05 1:10 1:14 1:16 1:18 6.4%
hrs:mins —Desktop/laptop* 2:16 2:14 2:12 2:11 2:10 2:08 -1.2%
Other connected devices —Other connected 0:17 0:19 0:23 0:26 0:28 0:30 13.0%
0:26 devices
Print*
Digital video 0:46 0:54 1:02 1:08 1:12 1:15 10.4%
0:28
Other* —Mobile 0:17 0:22 0:26 0:29 0:31 0:34 14.1%
0:22
Radio* ——Smartphone 0:07 0:10 0:13 0:15 0:17 0:19 20.3%
1:27 Mobile ——Tablet 0:10 0:12 0:13 0:14 0:14 0:15 8.8%
Desktop/ (nonvoice)
laptop** 3:06 —Desktop/laptop 0:22 0:23 0:24 0:25 0:25 0:24 2.3%
Digital
5:43 2:11 —Other connected 0:07 0:09 0:12 0:14 0:16 0:17 21.0%
TV* devices
4:05
Digital radio 0:38 0:45 0:50 0:53 0:56 0:57 8.3%
Digital —Mobile 0:32 0:39 0:44 0:47 0:50 0:52 10.3%
—Desktop/laptop 0:06 0:06 0:06 0:06 0:06 0:05 -4.0%
Total per day=
12 hours 5 minutes Social networks 0:35 0:38 0:41 0:43 0:45 0:46 5.9%

Note: ages 18+; time spent with each medium includes all time spent with —Mobile 0:18 0:23 0:26 0:29 0:32 0:34 13.6%
that medium, regardless of multitasking; for example, 1 hour of ——Smartphone 0:11 0:15 0:18 0:21 0:23 0:24 17.0%
multitasking on desktop/laptop while watching TV is counted as 1 hour for
TV and 1 hour for desktop/laptop; *excludes digital; **includes all internet ——Tablet 0:07 0:08 0:09 0:09 0:09 0:09 6.7%
activities on desktop and laptop computers —Desktop/laptop 0:17 0:16 0:15 0:14 0:13 0:13 -5.5%
Source: eMarketer, April 2016
Pandora 0:20 0:24 0:26 0:28 0:29 0:30 7.9%
207864 www.eMarketer.com
—Mobile 0:16 0:20 0:22 0:24 0:25 0:26 10.1%
Mobile, which includes smartphones and tablets, has —Desktop/laptop 0:04 0:04 0:04 0:04 0:03 0:03 -3.4%
brought significant frustrations to marketers in the past Facebook 0:18 0:20 0:21 0:22 0:23 0:23 5.3%
couple of years. With US mobile time spent projected —Mobile 0:10 0:12 0:14 0:16 0:17 0:17 12.9%
to climb over the next several years, eroding time spent —Desktop/laptop 0:08 0:07 0:07 0:06 0:06 0:06 -7.5%

with desktops and laptops and even television, it will only Note: ages 18+ who use each medium at least once per month; average
time spent with each medium includes all time spent with that medium,
continue to disrupt brands’ marketing efforts. regardless of multitasking or device; *includes all internet activities on
desktop and laptop computers
Source: eMarketer, April 2016
Keeping pace with digital consumption habits in a broad 207887 www.eMarketer.com

sense is challenging enough, but racing to cover all the


“The consumer has caused all of this mess,” said Chris
channels and formats proves even harder. As time spent
Paradysz, co-founder and CEO of digital marketing agency
on core digital activities such as digital video, digital radio
PMX Agency (formerly PM Digital). “The marketing tech
and social networking rises, marketers must hone their
and the media and all of that are simply a function of how
efforts to capitalize on these actions across search, email,
the consumer’s role has changed so dramatically. All of
shopping engines, news sites and many other properties
this is driven by consumers’ desire to get what they want,
at any time and on any device.
when they want it, from wherever they want at any time
they want.”

Consumers’ changing attitudes are just as influential


as their behaviors. Now accustomed to moving freely
between touchpoints thanks to greater access via more
device types, consumers expect companies to do the
same—for instance, by knowing that a customer just
browsing its app on a tablet is the same one who has
now moved to its website on a desktop. Expectations
are for more than a mere brand presence, they are for a
cohesive, relevant brand experience.

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 5
“Consumers don’t want bombardment, they don’t want
overlapping messages and inappropriate noise,” Paradysz
MAKING MULTICHANNEL
said. “As data experts, we have to continue to solve the MARKETING WORK: FOUR AREAS
world in a way that brings some sanity and interpretation OF FOCUS
and insight to all the data that’s being amassed.”
Before brands commit resources to executing
Paradysz’s classification of marketers as data experts
individual channels, they must first solidify a proper
makes sense in light of what’s required to overcome
these obstacles and achieve a more integrated, omnichannel marketing foundation. That foundation
multichannel effort. Omnichannel marketing success will be data-driven, and it will rest on four pillars.
cannot be obtained without building a solid, data-driven
foundation that accomplishes the following four tasks:
transitioning to an audience-centric view; integrating
channels; crafting meaningful, relevant messaging; and
TRANSITIONING TO AN
implementing proper multichannel attribution. AUDIENCE-CENTRIC VIEW
Whether it’s called an audience-centric view, a
The remainder of this report will assess each of these
customer-centric view or a people-based view, the move
four areas in terms of their importance, challenges and
away from a channel-specific view was a top priority
other considerations for a company transitioning to an
for the majority of US marketers polled by marketing
omnichannel marketing strategy.
software services provider Black Ink ROI in March 2016.

Top Priorities for 2016 According to US Marketing


Managers
% of respondents
Customer-centric focus
79%
Strategy/brand management
70%
Reporting/insight
61%
Marketing technology
56%
Omnichannel/cross-channel promotions
50%
Culture/leadership
48%
Department integration (e.g., sales, product, merchandising)
38%
Budget management/control
37%
Talent acquisition/skills development
34%
Improving C-suite/boardroom relationships
34%

Source: Black Ink ROI, "C-Level 2016 Marketing Study," March 2, 2016
206193 www.eMarketer.com

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 6
“We’re seeing a lot more people talking about Cross-device capabilities are still being developed and
people-based marketing,” said Anneka Gupta, chief refined, which can limit the richness of audience profiles
product officer of data onboarding service LiveRamp. as well as their readiness. At the micro level, this
“That’s really important when you’re thinking about process focuses on how audiences are organized or
multichannel marketing, because if you think about all segmented, whether by similar attributes or stages in
these different channels, they think about people in very the customer journey. At the macro level, it is about the
different ways. Some measure a person as a device, activation or deployment of these audiences. Here again,
which isn’t true. People have many different devices. Or cross-device capabilities are important, as is the ability
they might be looking at one kind of an identifier like an to easily integrate audiences into a variety of marketing
email or a name or postal address. But for multichannel channels and platforms.
marketing to really get to the level that it needs to, you
need to take a people-based approach.” However, no single tool is sufficient to activate audiences
across every channel. For example, marketers must still
Switching from a channel-based to a people-based work directly with emerging platforms like Snapchat,
approach requires marketers to ascribe data collection utilizing their tools and processes until they are eventually
and analytics practices to audiences, not channels. Chris integrated with other media-buying platforms.
Harrison, chief technology officer of marketing services
firm Epsilon, noted that to do so, companies must look to These technological limitations pose significant
build customer profiles that are both “rich” and “ready,” challenges for marketers transitioning to a more
meaning that marketers have the ability to actually audience-centric view. A November 2015 survey of
recognize and reach those individuals. senior-level marketers worldwide from a variety of
industries conducted by Experian Marketing Services
“The richness is the depth and breadth of the profile found that marketers that get stuck in transitioning
itself, and the readiness is how easily you can actually to a more customer-oriented view tend to run into
use that knowledge that you have. When you get into that technological and organizational challenges.
element, a lot of it is about the recognition and the reach,”
Harrison said. “I need to be able to recognize as much As such, many marketers are now forced to pursue added
about them and have a deep profile to be able to make technologies to execute audience-driven campaigns
a decision.” outside of pure marketing channels. A December
2015 survey of US senior-level agency and marketing
First-party, third-party, behavioral and demographic data professionals conducted by programmatic ad tech firm
are just some of the inputs brands might consider when Rocket Fuel found high interest in learning about data
fleshing out audience profiles. However, the depth of management platforms (DMPs), demand-side platforms
the profile isn’t limited to knowing high-level behaviors, (DSPs) and even programmatic TV.
attitude, actions and attributes—such indicators must also
be discernable regardless of channel or device.
Technologies US Senior-Level Agency and Marketing
Professionals Are Interested in Learning About in
To do this, cross-device audience recognition and 2016
identification capabilities are paramount. A December % of respondents
2015 poll of US digital media and marketing practitioners DMP 91%
conducted by the Winterberry Group, for example,
Multichannel attribution 81%
found more than two-thirds of respondents cited
DSP 80%
cross-device audience recognition as the development
that will command the majority of their attention this year. Programmatic TV 80%

Ad viewability measurement 78%

Cross-device tracking & delivery 74%

Note: n=204; "very" or "somewhat interested"


Source: Rocket Fuel, "Marketing Tech Trends: 10 Things Happening in 2016,"
Feb 22, 2016
205711 www.eMarketer.com

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 7
Historically, DMPs have been the audience engine for Channels that Are Important to Integrate with Their
programmatic advertising, given their ability to store Data Management Platform (DMP) According to US
and analyze a massive amount of data from a variety of Agency and Marketing Professionals, Aug 2015
% of respondents
sources, channels and inputs and quickly act on it via the
DSP, the main programmatic ad buying platform. Website/mobile app 74.5%

Mobile 72.0%
But lately multichannel marketers and those with large
Search 69.6%
amounts of first-party data are increasingly looking to
CRM 68.7%
use DMPs’ rich audience insights and activations in their
marketing channels. Email 68.2%

Earned social 61.7%


“It’s about having that one point of truth where all the Video 61.4%
activity data is stored so that you can use that for your
Display 60.0%
different marketing campaigns and automate different
Paid social 59.3%
campaigns against that,” said Kipp Bodnar, CMO of
HubSpot, a provider of an inbound marketing platform. Point-of-sale 46.3%
“That’s very different than the data you get just from the TV 43.5%
web analytics and performance side.” SMS/MMS 41.0%

Call center 36.9%


The DMP’s ability to ingest and organize a variety of data
types is one draw for multichannel marketers. Another Note: responses of 8-10 on a scale where 1=not at all important and
10=extremely important
is that many DMPs offer cross-device identity matching Source: Ad Age Content Strategy Studio, "Picking the Right DMP: What
capabilities or can easily partner with vendors for this Marketers Want" sponsored by Neustar and conducted by Advantage
Business Research, Feb 19, 2016
service. This doesn’t just make for more complete 205668 www.eMarketer.com
profiles, it also makes it easier to act on those profiles
across a variety of channels and devices.

Marketers have high expectations for the number of


INTEGRATING CHANNELS
channels and devices DMP insights can be used with. Channel integration might seem an obvious, basic
An August 2015 poll of US agency and marketing requirement for omnichannel marketing, but trying to
professionals conducted by Advantage Business account for every possible combination becomes near
Research found most respondents planned to integrate impossible when considering dozens of channels across
major marketing and advertising channels with their DMP. digital, traditional media, offline experiences (like stores),
Though the importance of integrating offline channels direct mail and events and the ever-growing number of
like call centers, SMS and TV was slightly less, eMarketer digital devices at consumers’ fingertips.
anticipates such integrations will grow in importance in
the next 12 months. “The number of touchpoints that brands have with
consumers is continuing to grow, as there are more
channels, more devices, more apps and more websites,”
Gupta said. “We see this continued fragmentation within
the marketing technology ecosystem, but also just in the
way that brands and consumers are interacting. And our
bet is that the fragmentation is just going to continue
to grow.”

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 8
The same technological issues that plague marketers While full-scale integration is the ultimate goal for
when moving to a more audience-centric view also marketers, the ability to integrate marketing-specific
affect channel integration efforts. Here again, multiple efforts is most important today. Experian’s survey of
systems and solutions are required for proper integration. senior-level marketers found the greatest concentration
Econsultancy found just 8% of digital marketers and of cross-channel marketers planned to integrate their
ecommerce professionals it polled worldwide said they website, social efforts, email and mobile apps. Nearly half
had a single platform for managing data across multiple (49%) had plans to integrate digital display advertising
channels in 2015, a portion that remained unchanged from across desktop and mobile, and about a third intended to
2013. The survey showed very limited gains in pursuing bring offline channels such as direct mail and in-store into
a more cohesive integration strategy, again highlighting their omnichannel efforts.
the difficulties—and even the improbabilities—associated
with finding a more unified solution.
Planned Channel Integrations According to Enterprise-
Level Cross-Channel vs. Total Cross-Channel Marketers
Worldwide, Nov 2015
Digital Marketers/Ecommerce Professionals % of respondents
Worldwide Whose Company Has a Single Platform for
Managing Data Across Multiple Channels, 2013 & 2015 Enterprise-level Total cross-channel
cross-channel marketers marketers
% of respondents
Website 53% 62%
Have a single platform that manages data across multiple Social (paid and organic 57% 60%
channels social media)
8%
Email 63% 55%
8%
Mobile—apps 65% 53%
Have a single platform that can manage data from some Display advertising 55% 49%
channels, but not others (desktop and mobile ads)
13%
Mobile—SMS/MMS 44% 40%
12%
In-store 37% 36%
Have separate but connected technologies for different channels Direct mail 38% 35%
27%
Addressable TV 49% 29%
30%
Source: Experian Marketing Services, "The 2016 Digital Marketer: Your
Have separate, nonconnected technologies managing data for Guide to Using Data and Technology to Better Engage Your Customers,"
different channels April 6, 2016
52% 208243 www.eMarketer.com

50%
Though such offline channels are likely longer-term areas
2013 2015 of focus, they are equally important for achieving a unified
Note: 2013 n=413; 2015 n=848 customer view—not just in terms of messaging but in the
Source: Econsultancy, "Quarterly Digital Intelligence Briefing: The data they provide marketers on their audience’s actions
Multichannel Reality" in association with Adobe, Sep 3, 2015
196388 www.eMarketer.com and behaviors.

“[Clients] want our platform to be integrated with all of Gupta said that brands and agencies are increasingly
their other components in their marketing tech stack, interested in making these connections, but data
whether it’s CRM, data warehousing, segmentation or compatibility issues make it difficult to bridge online and
predictive analytics,” said Beth Adams, vice president of offline channels.
marketing at Saepio Technologies, a marketing technology
and services provider. “They’re continually asking for “If you think about the customer experience and the
integration with all the different tech stack systems as way that brands are able to recognize consumers, in the
well as back-office systems to try and achieve more offline world, you may have an email address or a name
closed-loop reporting.” and postal address if someone made a purchase,” Gupta
said. “But in the online world, it’s all anonymous. So being
able to connect the known and the anonymous is really
challenging if you have no way to reconcile that person
across those touchpoints.”

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 9
The complexities of integrating channel-specific data and One approach some companies are taking to mitigate
technology complicate efforts, as do organizational flaws. the negative effects of silos and enable more data and
A September 2015 survey of US marketing executives information flow among departments is to create a
conducted by Forbes Insights showed the top challenge separate position or team dedicated to ensuring proper
for respondents looking to develop data-driven marketing communication and integration among channels.
initiatives was breaking down departmental silos. This
was more pressing than issues with data collection, Haley Rubin, who focuses on digital shopper media
defining audience segments and figuring out technology. at Heineken USA, noted that her company is taking
this approach to better align internal teams to reach a
common goal. Rubin acts as the gatekeeper between
Leading Challenges of Developing Data-Driven
Marketing Initiatives According to US Marketing media and brand teams and the commercial team that
Executives, Sep 2015 works with retail accounts. Her role is twofold. First, it
% of respondents minimizes the legwork required from each team, be it one
Breaking down the silos of data between departments to ensure that concentrates on grocery outlets vs. liquor stores, to
the successful flow of information analyze and interpret the data. Second, it helps to instruct
61%
each team on what it needs to be considering, both in
Gathering and parsing data
its own actions and as part of the broader campaign
56%
objectives. “We need to make sure we provide the right
Defining audience and customer segments
56%
information to those teams that need it,” Rubin said. “And
Focusing on complex technical solutions
then they just simply need to embrace it and then apply
54% the thinking to their activations.”
Telling the story of your brand and products
51% Even in the absence of such teams, most agreed that
Creating a single view of the customer frequent, frank conversations between departments
38% and teams could also go a long way to improving
data-sharing practices.
Source: Forbes Insights, "Data Driven and Customer Centric: Marketers
Turning Insights Into Impact" in association with Turn, Nov 3, 2015
201171 www.eMarketer.com “When there are data silos within an organization, there
Most of those interviewed for this report stressed how are also organizational silos,” Gupta said. “So we might
crucial proper organizational alignment is for multichannel see a brand that has different people running the CRM
marketing success, both in departments’ abilities to vs. the digital piece vs. the TV advertising. There might
share necessary data and technology and in their ability be an agency as well. But when we can bring all these
to work together freely and fluidly toward a common people together and get them talking and thinking about
campaign goal. how they can actually leverage the value of their different
channels, by and large, what we see is that everyone
“When advertisers are trying to sort out omnichannel understands that they can create better experiences for
and integrated solutions, it still ultimately comes down their customers.”
to the organizational structure of the brand and where
decisions get made and by whom,” Paradysz said. “If
you’re not properly aligned internally to be able to make CRAFTING MEANINGFUL, RELEVANT
those decisions and [are] too siloed, then you really
haven’t solved the problem. Companies are going through MESSAGING
a lot of pain and torture trying to figure out how to align With improved multichannel communications now
themselves structurally to be able to handle everything a consumer-driven mandate, consistent, relevant
from the technology to the marketing, the media and messaging is now even more important to marketers.
content. And it’s tough because it means realignment of Marketing executives in North America don’t just deem
people and things like resetting titles and compensation it critical to the customer experience, they also consider
and incentive bonuses. All of those things used to be it key to their companies’ bottom line, according to a Q4
pretty well set, but now they are being challenged.” 2015 poll conducted by the CMO Council.

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 10
Campaign Strategies that Are Critical to Realizing “If a consumer buys something on their laptop and then
Greater Revenues/Profitability from Customer visits your site on their phone and you don’t know it’s
Engagement According to Marketing Executives in the same person, so you’re still reaching out to them on
North America*, Q4 2015
% of respondents their phone even after they’ve bought something, the
consumer is going to think less of you,” said James Green,
Personalized engagements that take customer preferences, past
engagements and known preferences into account CEO of Magnetic, a programmatic ad tech company. “And
49% there are so many examples of that. Marketers are still
Omnichannel communications that are consistent and trusted stuck working on channel-specific functions.”
41%
Consistent experiences in all channels, including offline But poor cross-device experiences are only part of
and in-store
the problem. Even if marketers were able to properly
36%
identify audiences on each respective device, they still
Identifying upselling and cross-selling opportunities
34%
would lack the tools needed to properly tailor creative
Creating personalized offers, deals and savings based on
and messaging.
customer preferences
32% “We can find the right audiences, we can reach that
Closed-loop marketing campaign execution and measurement audience, but you have to have something compelling
25% to say that’s going to grab their attention,” Harrison said.
Using analytics and intelligence to better develop and “Today, that seems out of step with everything else that’s
price products
23%
going on in marketing. We’re speeding up the way we
Always-on customer service options across web and
can make decisions and understand consumers, but the
mobile channels process hasn’t been applied to that creative emotional
19% connection quite yet, at least not as effectively as the
Improving responsiveness of customer communications other parts.”
18%
Social engagement channels, including click-to-buy and social According to Gupta, this disconnect stems from two
service plug-ins
7% main issues: data connectivity and content optimization.
Mobile-first campaign execution to optimize mobile engagement “You actually need to be able to know who a person is
5% and know something about them when you’re interacting
Other with them,” she said. “But the other piece is showing the
2% creative that’s relevant and improving that creative. If you
can bring data connectivity into the content optimization
Note: *84% of respondents were from North America
Source: CMO Council, "Predicting Routes to Revenue: Identifying Real-Time platforms, then we can really help our brands figure out
Decisions for Business-Driving Engagement" conducted in partnership with
Pegasystems, Jan 20, 2016 what messages are working and help them engage with
203641 www.eMarketer.com clients better. But this is still an emerging area where the
technology is growing and where there needs to be more
Of course, delivering a consistent, highly relevant user
powerful platforms.”
experience across every channel and device is extremely
hard. Not only do marketers need rich audience profiles
Gupta said LiveRamp sees clients looking to integrate
to derive relevancy and meaning for their audiences, but
their data services with site personalization and
they also need straightforward methods of activating that
optimization platforms—and even dynamic creative
data and delivering that message in a seamless manner
platforms—across display and video to try and deliver a
across every channel and device.
more relevant, consistent experience.
One obvious delay is the work-in-progress quality of
cross-device targeting and identity functions.

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 11
Experian’s poll of senior-level marketers offers insight Preference center data is another source of information
into the most common types of data used to personalize useful for understanding the right multichannel
communications. More than half of respondents said strategy for each customer. Brands that collect data on
they personalized messages using basic information like consumers’ preferred messaging channels, frequency of
a customer’s name, birthday or gender. Slightly less than communications and preferred product or content types
half used financial-based demographic info like estimated have valuable customer experience information. Knowing
household income or net worth estimates to tailor a consumer prefers paper coupons vs. in-app promotions
messages. First-party behavioral data gleaned from site or email vs. SMS can take significant guesswork out of
interactions, purchases and email activity was another reaching them and has the potential to greatly improve
common data source, used by 45% of respondents. the customer experience. Conversely, not abiding by
preference data could harm a brand—by wasting channel
efforts and by irritating the consumer.
Types of Data Used to Personalize Communications
According to Senior-Level Marketers Worldwide,
Nov 2015 As more companies look to better personalize their
% of respondents messaging and content experiences for audiences, an
Basic demographic data, like first name, gender or birthday inevitable rise in content and creative generation will
53% follow. Many brands now find themselves swimming in
Financial data, like estimated income, discretionary spend content marketing materials, ad unit creatives, images,
estimates, net worth estimates
calls to action, promotions, audio files, video files
46%
and other creative assets they might use to message
1st-party interaction data, like email clicks, web browser
behavior or past purchases individuals across a bevy of channels and devices.
45%
Loyalty program data This influx of assets being utilized by multiple individuals,
44% teams and departments is making it difficult for many
Attitudinal/lifestyle data, like whether they are price sensitive or companies to keep things organized, consistent and up
impulse buyers
to date.
41%
Geolocation data
41%
“Because everything is so siloed, everyone is working on
3rd-party behavioral data, like how customers interact with
a different version [of creative],” Adams said. “It’s really
other brands hard to get everyone on the same page using the same
38% basic files.”
Preference center data
33% Not surprisingly, Adams noted clients are increasingly
We do not personalize our communications interested in using a digital asset management (DAM)
5%
solution to store and organize such assets. eMarketer
Don't know
predicts that this trend will only increase as brands’
2%
targeting and personalization efforts improve, and they
Source: Experian Marketing Services, "The 2016 Digital Marketer: Your generate more content as a result.
Guide to Using Data and Technology to Better Engage Your Customers,"
April 6, 2016
208241 www.eMarketer.com

Not every data type listed above will be relevant for


every industry, company or audience, but there are many
useful indicators marketers could use to personalize
communications. Geolocation data, for example, might
prove extremely valuable for time- or area-sensitive
marketers hoping to connect with someone near their
storefront or traveling to a new city where their services
might be welcomed.

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 12
IMPLEMENTING MULTICHANNEL Frustrations surrounding the complexity of multichannel
attribution models, the cost of building or borrowing one
ATTRIBUTION AND ANALYSIS and deep ties to legacy metrics and measures have all
played a role in delaying marketers’ shift to these more
Attribution, any method of assigning credit to a particular advanced measurement models. But at last, interest is
marketing- or advertising-driven action or other reaching critical mass.
brand-imposed touchpoint, is critical for each channel’s
relative importance and the combined influence they A December 2015 survey of US digital marketing and
wield when used together. At the most basic level, media practitioners from the Interactive Advertising
attribution can provide marketers with insight into how Bureau (IAB) Data Center of Excellence and the
a particular tactic, like paid search, performed. At a more Winterberry Group found 57.6% of respondents planned
departmental level, it can discern whether or not a larger to focus on multichannel attribution and measurement in
campaign worked—for example, did a lead generation 2016, up from just 35.4% a year earlier. And, as the above
campaign that utilized search, display, email and social eMarketer chart indicates, half of all US companies will
pay off? And at the company level, it allows marketers use multichannel attribution by 2017.
to determine whether or not their combined advertising
and marketing efforts were successful—the true To make the move to multichannel attribution, many
multichannel effect. companies will likely seek out third-party attribution
vendors, though a smaller set will choose to develop
The case for that type of insight is clear, but marketers their own in-house or agency-offered solutions. Like any
have been slow to adopt multichannel attribution decision, there are pros and cons with every option.
practices. eMarketer predicts just 39.8% of US Developing an in-house model may require added
companies will employ a multichannel attribution model headcount and expertise, but companies often find the
in 2016. ability to create a more custom model offers greater
insight than a standard out-of-the-box solution can
US Companies Using Multichannel Attribution provide. This is especially true of companies hoping to
Models, 2014-2017 attribute across traditional and digital channels, which may
2014 2015 2016 2017 include a blending of top-down marketing mix models and
% of total companies 22.9% 30.1% 39.8% 50.6% bottom-up digital attribution solutions.
% of companies that use digital 37.5% 43.0% 51.0% 61.0%
attribution models
Will Martin-Gill, chief product officer at digital marketing
Note: companies with 100+ employees that use more than one digital
marketing channel; multichannel attribution models are attribution models technology provider Kenshoo, noted another potential
that include more than a first and/or last touch attribution to differentiate limitation of standard attribution service providers,
the respective contributions of various marketing channels to a desired
outcome explaining that while most offer good high-level insight
Source: eMarketer, Oct 2015
198373 www.eMarketer.com
on channel performance, many are unable to offer insight
down to a more publisher-specific view, which is what
That portion only pertains to those using multichannel many brands want.
attribution for their digital advertising and marketing
efforts. It does not quantify the portion of companies “When you’re working in a multipublisher world, it’s
tying traditional media into multichannel attribution, and not good enough to have that data at a high level,” he
it does not indicate whether or not such a practice is said. “You need a publisher-by-publisher or an
deployed for cross-device insights. opportunity-by-opportunity assessment of where your
next dollar is best invested for the maximum return.
“It’s astounding and jaw-dropping how many people are And that’s where you need some good forecasting
still measuring performance on last action and by device,” models. You need the ability to take that data and make it
Green said. “I’d say for the maybe 20% or so of people actionable. You need to be able to combine reporting and
who are actually doing some kind of cross-device actionability in one interface.”
attribution and multitouch attribution, they have a
completely unfair advantage.”

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 13
As Martin-Gill points out, those making the move to
multichannel models aren’t just looking to justify channel
efforts but to optimize efforts in a more real-time, almost
case-by-case manner. Harrison noted this has been a
trend among Epsilon’s clients. He said CMOs that have
already subscribed to a multichannel approach are now
shifting budgets among channels quarterly, instead
of annually.

“In the past year, we have seen an increase in


organizational change management at our clients—a
rightsizing or reallocating so that folks have more control
over a broader type of consumer communications,”
Harrison said. “There is still a lot that needs to be done
in terms of combining channels, but I’ve seen a greater
intention among clients to work across those boundaries
and create organizations that force that behavior.”

One organizational change many big brands and agencies


are seeing is the creation of an in-house team or specialist
in charge of all attribution-related data and insights. Much
like the team described earlier that’s focused on channel
integration, this team or specialist would focus on the
overarching analysis of multichannel attribution as well as
the individual applications to each team and channel. In
providing each team and individual with those insights,
organizations are attempting to more quickly optimize and
maximize their cross-channel efforts.

Though such a team could be implemented regardless


of the type of attribution model chosen (third-party
supplied vs. in-house), some believe increased demand
for real-time insight and more custom models will
eventually push companies to invest in their own
in-house models.

“I wouldn’t be surprised to see more of the brands


take some of this back into their own hands as more
sophisticated marketers and marketing organizations
emerge,” Gupta said. “There’s a level of trust you’re giving
to a platform, and I think a lot of the brands want to figure
it out themselves and want access to the raw data.”

MAKING MULTICHANNEL MARKETING WORK: FOUR TACTICS REQUIRED FOR OMNICHANNEL SUCCESS ©2016 EMARKETER INC. ALL RIGHTS RESERVED 14
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