Trends that could shape your 2017 marketing budget
The DMA.org published an insightful article on some 2017 trends to look out for when doing marketing budgeting planning which is right now for some companies, such as my current day job.
Insight #1: Market to Customer – especially Millennials – In-store
With 80% of millennials using their phone in-store and 74% of millennials willing to receive location-based mobile alerts, marketers have a tremendous opportunity to provide relevant offers to their customers directly on their phones. For example, Target’s rewards app presents offers to customers as they walk through their stores’ various departments. With advancements in beacon technology, marketers can place precisely relevant offers directly in the hands of their customers.
Insight #2: Invest Big on Social Analytics, Then on Social Budgets
Last week, DMA reported that social media in still in its infancy. Before anyone gives us credit for provocative perspectives, we’re somewhat stating the obvious about the great opportunities still presented by social media.70% of companies are still not collecting data from social media channels. This gap will close this year given that 47% of marketers say that social channels offer the greatest opportunities in the next two months. That’s compared to 37% who see email and websites as the hotbed of opportunity followed by 26% for SEO. They’re backing up those expectations with their budgets. According to the DMA SFB, social media will grow to 24% of marketing budgets within five years, up from 10% today.
Insight #3: Double Down on Video
Video rules, and it’s taking over the social media landscape with 4 times as many consumers preferring digestible video content over text. Marketers are picking up on the trend as well, with 69% of marketers saying their budget on video content is “increasing” or “significantly increasing.” Another accelerator of video is the explosion of programmatic video, projected to be 2/3 of total digital video spending in the U.S. by 2019. Marketers that bet and budget right will outpace their competitors in delivering ads that are more timely, relevant and responsive to consumer interests.
Insight #4: Triple Down on Programmatic
The use of programmatic ads isn’t just growing on the video side, it’s now representing a larger portion of the overall advertising market. Programmatic continues to grow faster than content of audience-based advertising, capturing 50% of all spending in display advertising. Mobile programmatic spend is also increasing drastically, moving from 43% of total programmatic spend in 2014 to 69% in 2016. DMA Board Member and CEO of MediaMath Joe Zawadzki said greater adoption of a programmatic-first approach is all about “delivering a more seamless, relevant user experience that drives true outcome-based results.”
Insight #5: Prepare for Cross-Device Marketing – and Quickly.
DMA’s SFB reports that the average consumer is now connected through five addressable devices, breeding opportunities and headaches of equal proportion for marketers. Kevin Dean, President of Experian Marketing Services, writes in the Statistical Fact Book about the challenges of marketing across multiple devices. “The marketer not only has to recognize the same consumer…but also must track any actions the consumer takes,” Dean wrote. However, graduating to cross-device communication may be a hurdle for some marketers, as 69% say they do not have data alignment within their companies according to DMA’s SFB.
Insight #6: Mobile is a Moving Target
Currently, 4 out of 5 Americans carry a smartphone with them every day (compared to 3 of 5 globally). While smartphones are not likely to be obsolete anytime soon, they may be outpaced soon. DMA’s SFB projects that by the end of 2016, one out of every four U.S. consumers will be using a wearable device. What’s that mean for marketers and 2017 planning and budgets? That they need to be prepared to produce and distribute content to fit the format, the channel, the time and the place for their current and target customers.
Insight #7: Talent Game Plan Recalibration
Over 30% of executive say “lack of skills” and “lack of human resources” are holding them back from improving data quality. But how can marketers determine where to invest in the proper talent? According to DMA’s SFB, the top marketing talent being hired today is in web design (23%) and mobile & app development (14%). Investment in technical acumen will ensure marketers can leverage the data and technologies to reach their customer effectively and efficiently.
For more insights and data points to drive the value of your social media spend and results, secure your copy of the 2016 Statistical Fact Book today! The SFB, long known as the “Definitive Source of Marketing Benchmarks”, contains 326 pages and 379 charts organized by channel as well as insight reports and perspectives from the leading companies in marketing. Brought to you by DMA research.