CES 2013: Big Ideas

A Guide to the 2013
Consumer Electronics Show

CH 3 : Commerce+ 3 4

Table of Contents

5 Introduction

7 Chapter 1 : Connection Engine

27 Chapter 2 : Data-Driven Marketing

49 Chapter 3 : Commerce+

67 Chapter 4 : Next Generation Storytelling

93 Thank You

98 Conclusion

5

SIDEBAR :
Welcome
Who Is Publicis Groupe?

Welcome to Las Vegas and the Connection Engine: Next Generation Storytelling: Publicis Groupe is the third
2013 Consumer Electronics Show. The Connection Engine track will Despite advances in technology largest communications group in
The Publicis Groupe organization is explore how a fully integrated and changes in scale, storytelling the world, offering the full range
pleased to have you as a member ecosystem provides consumers remains one of the fundamental of services and skills: digital
of our delegation, and we hope access to content regardless of responsibilities of marketers and (Digitas, Razorfish, Rosetta,
that you find the next three days the time, place, or device. brands. The Next Generation VivaKi), traditional advertising
to be invigorating and illuminating. Storytelling track will discuss (BBH, Leo Burnett, Publicis
Data-Driven Marketing: how three components-- Worldwide, Saatchi & Saatchi),
Similar to last year, we have Data is the central nervous human (services), technology strategic communication and
created a custom agenda that system of empowered (platforms) and content engagement (MSLGROUP),
includes content sessions marketing, giving marketers solutions work together to drive media buying (Starcom MediaVest
hosted by influential industry the opportunity to create order storytelling in today's world. Group and ZenithOptimedia)
players, exclusive show floor from chaos as we reach today’s and specialized communication
tours, as well as networking consumers. The Data-Driven Our goal in creating this book, with PHCG (Publicis Healthcare
opportunities with some exciting Marketing track will focus on and this entire event, is to enable Communications Group). Present
new start-ups and today’s leading how we harness big data to you to take what your see and in 104 countries, the Groupe
media and tech companies. capture value. learn at CES home with you employs 56,000 professionals.
and apply the most relevant
The book you are holding is Commerce+: information to your business.
intended to put the show floor Marketing and commerce have
into context. It provides meaningful become indistinguishable – Thank you again for joining
predictions, recommendations, consumer expectations have our delegation, and please enjoy
insights and in-depth expertise shifted from brand building to the show!
from our content experts and brand selling. The Commerce+
participating sponsors across track will focus on the ecosystem Signed,
four categories: of technologies and marketing The VivaKi Planning Committee
disciplines required to deliver
an engaging consumer
experience connected across
every touchpoint.

8

Chapter 1
connection Engine

CH 1 : connection engine 9

Jeremy Lockhorn Chris Allen Chuck Schultz Christie Hartbarger Ed Haslam
VP, Emerging Media, SVP, Director of Video VP, Director New VP, Connected Devices Senior Vice President,
Razorfish Innovation, SMGx Media, SMGx YuMe Marketing, YuMe

Jeremy Lockhorn leads the Chris Allen is a key component Chuck Schultz plays an integral Christie is a sales and marketing Ed is a strategic marketing
emerging media practice at of SMGx’s Innovations Group and role within the SMGx’s Innovations executive with 18 years+ of ad executive with substantial
Razorfish and is focused on is charged with the development Group by focusing on all aspects industry experience. Her career experience in online media,
scouting opportunities in new of a video trading platform of emerging technologies and spans across digital and print, and networked communications,
channels like mobile, tablet, that will take advantage of identifying important new media some early days in media planning, and infrastructure computing.
converged television, game advanced audience data to more trends. In his role within SMGx, having worked for CBS Interactive, Prior to joining YuMe to oversee
consoles, digital out of home efficiently and effectively connect he has responsibility over THE Time Inc. and Y&R. Marketing, Ed was co-founder
and more. Lockhorn’s team fuels advertisers’ messages with EDGE, which is focused on laying & VP Marketing of Ludic Labs
innovation across the agency consumers. SMGx is a Starcom out a visionary road map of the Christie is currently overseeing (Groupon), which developed
and helps clients navigate an MediaVest Group (SMG) agency future and provides industry national, emerging sales at both the social media community
increasingly fragmented media that empowers all SMG agencies leading thought leadership into YuMe across mobile, tablet Diddit.com and local commerce
landscape with breakthrough to exchange intelligence, test new the broader organization. With a and connected TV and is in the service OfferFoundry.com. Prior
strategic thinking that makes models and leverage scale to drive focus on the “the next big thing” process of building up their new to Ludic Labs, he served as the
sense of the noise and separates marketplace and measurement and pioneering new ground within field marketing team. founding marketing executive
the wheat from the chaff. He is efficiencies. Prior to his role at the agency, Chuck is uniquely for several other venture-backed
a 15-year advertising industry SMGx, he was responsible for positioned as an expert advisor Her areas of expertise include technology companies including
veteran, having spent time at determining best practices and to all Starcom Mediavest Group the ability to create, sell and Orbital Data (Citrix) and Inktomi
offline and direct marketing standards for emerging video clients and serves as a key advisor manage multi-screen initiatives, Corporation (Yahoo!).
agencies before joining technologies, and for investment across the broader Starcom new product launches and
Philadelphia-based digital agency across these platforms at Starcom Mediavest Group. Prior to his role custom content programs. Ed holds a B.S. in Structural
startup i-FRONTIER in 1997. USA. An active contributor to at SMGx, he led the emerging Engineering, an M.S. in Systems
He teamed with founder Brad VivaKi’s The Pool, Chris helped media practice at Starcom Detroit She resides in the Greater Engineering and ABD in
Aronson to grow the business sell the ASq to 11 Starcom USA working on the General Motors Chicago Area with her husband Operations Research from
and ultimately join forces with clients. In 2010, he was named one account for close to 12 years. Prior and two children. Purdue University.
Razorfish. Throughout his career, of Broadcasting & Cable’s Next to joining Starcom, he was with J.
he’s been a trusted advisor to Wave of Leaders. Prior to joining Walter Thompson heading up the
a wide range of top marketers Starcom, he was VP at advertising emerging media practice for Ford
including Best Buy, Weight agency GSD&M. and a number of diversified clients.
Watchers, Mercedes Benz,
Samsung, Miller Coors and more.


Part 1 :
Introduction
What Is The Connection Engine?

The long-promised future is finally Our present-day lives are The era of the single-function + Connectivity. Driven by the whatever device they happen to
here. While it’s unlikely you’ll see dominated by Web-enabled device is over. People use their increasing availability of Wi-Fi be using. Also, there is simply
flying cars (a la The Jetsons) screens. Phones, laptops, TVs, even telephones to search the Internet. and ultra-fast 4G cellular more content available than
or a Back to the Future-type household items like refrigerators, Cameras connect to wireless networks, consumers expect an ever before. Lower barriers to
floating hoverboard at this year’s thermostats and ovens all have networks and post photos to “always on” experience, giving production and distribution have
Consumer Electronics Show, some the ability to talk to each other social networks. Teenagers watch them access to content they created an absolute explosion of
of the technologies that were through simple, user-friendly entertainment programming desire virtually anywhere. content and are enabling content
once believed to be far-fetched interfaces. And all of them are on tablets. Consumers are creators to fill the needs of
are now part of our present begging for attention, radically making phone calls through their + Devices. Today’s consumer ever-smaller niche audiences.
everyday lives. World Fairs of the changing the way people interact televisions. Every device, it seems, electronics are being developed
mid-Twentieth Century promised with content, brands and each connects to all other devices, to either utilize a common + Data. Services and platforms
computers that could automate other. Increasingly, consumers are and to each other. It’s the thrill operating system or enable that tie all of the previous three
household chores (The Roomba), accessing content from a variety we experience when we bring cross-communication among components together and
cars that drive themselves (Google of different devices in a variety of home a new Apple TV, hook it different operating systems collect a wide variety of data fuel
Drive) and “picturephones” that different venues, all on their own up, and suddenly our iPhone, to provide consistent, familiar personalization and discovery of
would allow people to see each terms. This ubiquitous access to iPad and laptop computer are experiences from one device new content. When aggregated,
other while they talked (Skype, content, regardless of the time all able to seamlessly connect to to the next. Battles are raging this data is then distilled into
FaceTime and others). Our current and place, driven by fully the new device over the home between open and closed meaningful information that
smartphone technology surpasses integrated devices is what we network. Pure magic. This type ecosystems, but those that are powers the economics of the
what communicators imagined call the Connection Engine. of connected ecosystem is what most successful are at least connection engine.
in Star Trek. The entertainment makes up the Connection Engine, walking some middle ground,
and identification technologies of a matrix of systems designed with some open APIs and As the Connection Engine sees
Minority Report will not be to bring all devices closer to evolving standards. further consumer adoption,
far behind. each other while forging deeper, marketers will be forced to rethink
personalized experiences for + Content. Driven by connectivity their consumer outreach programs
people with brands and each other. and inter-connected devices, and understand the ever-changing
content is becoming increasingly consumer journey as they attempt
At the heart of the “liquid,” able to be passed and to optimize across many different
Connection Engine are four experienced over a variety of platforms and devices at once.
fundamental components: devices. Control over the content Among the new challenges and
experience is now in the hands opportunities are mobile-enabled
of consumers, giving them the shopping, multi-screen content
ability to participate directly experiences, cross-platform
with the content and content measurement and new business
providers, share their experience models that flatten commerce.
with others and conduct
commerce directly through


sidebar : The Coming
Connection Engine Explosion

Connectivity in more markets will demand (Table 4.) Worldwide, the numbers
high-speed, high-quality are even more staggering, with
Table 1.
In the developed world, Internet access to wireless and mobile FIXED BROADBAND HOUSEHOLD PENETRATION sales projected to hit nearly 300
access has become an everyday communications through every % of Total Households in Each Group million units by 2014.
necessity. But as it matures and part of their day. What’s more,
develops, penetration has hit a consumers will not make the Consumer adoption of other
plateau. According to eMarketer, distinction between being on a Internet-connected devices
2012 U.S. household penetration WiFi or mobile network. They including connected televisions,
of broadband services was 69 will expect the same experience gaming consoles, and over-the-
percent, with year-to-year growth regardless of how they connect to top boxes, while still relatively
holding in the low single digits the Internet. new to the marketplace, is
through 2016, a trend that follows growing rapidly as well. The U.S.
in other industrialized nations Devices marketplace has led the charge,
as well. In emerging markets, but global markets are expected
however, penetration growth will All over the world, consumers are to grow at a faster pace over
2012 2016
be in the double digits over the looking to exchange their feature the coming years, particularly
next four years. (Table 1.) phones for smartphones that Source: eMarketer, April 2012 in Asia. In 2012, more than 212
provide a more robust experience, million devices worldwide were
At the same time, speedier 4G with a mobile browser and apps connected to the Internet, double
Long Term Evolution (LTE) mobile dedicated to make specific the number of 2010. By 2017, that
Table 2.
networks are expected to grow tasks easier. Over the next four number will nearly triple globally,
WORLDWIDE 4G LTE SUBSCRIBERS (MM)
at a staggering rate all over the years, smartphone penetration reaching almost 600 million. U.S.
world. With more smartphones, is expected to pass feature (aka penetration of connected devices
tablets and mobile PCs in the “regular”) phone penetration was 48 million in 2010, nearly
marketplace, the number of high- in most developed markets, doubled to 78 million in 2012, and
speed mobile subscribers will while also maintaining growth in is expected to nearly double again
grow exponentially. To wit: in 2012, developing markets (Table 3.). by 2017. (Table 5.)
the number of high-speed mobile
subscribers was expected to be At the same time, tablets, a Taken together, the explosive
73MM (up 334 percent from 2011). category that didn’t exist three growth of smartphones, tablets
In 2013, the number of customers years ago, has exploded. Since and connected televisions (and
is expected to grow to 206MM (a their category introduction in auxiliary television devices) will
181 percent increase). By 2010, global device sales have lead consumers to expect more
2016, the number of high-speed skyrocketed from 17 million in content to work across all of these
Source: IHS iSuppli Consumer and Communications Market Tracker Report, August 2012
mobile customers will be 1.2B, 2010 to more than 100 million different platforms, all of the time.
an increase of 1,537 percent over in 2012. (The U.S. alone had 70 Marketers will want to ensure the
2012. (Table 2.) million tablet users in 2012.) By programs work efficiently across
2015, there will be more than 130 all of these devices in the ways
The implication for marketers is million tablet users in the U.S., consumers want to use them.
clear: by 2016, more consumers representing more than two-fifths
of the entire population.


on a tablet—while only 9 percent
of the total time spent—is three
Table 3. Table 5.
MOBILE PHONE PENETRATION Connected TV Penetration times that of time spent for
% of Total Population in Each Group Number of Internet Connected Devices (Millions) 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
Smartphones Feature Phones casual gaming.
Source: eMarketer, April 2012
Connected TVs Gaming Consoles Blu-Ray Players Despite the interconnectivity of
Over The Top Boxes Pay TV Set Top Boxes all of these different devices (and
Source: Digital TV Research, November 2012 and SMG Analysis, November 2012 the expectations of consumers
TABLE 4. to have them work together),
U.S. Tablet Users marketers will need to understand
Percent of population the predominant ways in which
Content social networking. Yet even consumers use devices (and how
Tablet users

among these two devices, the they use them differently) and
Despite consumers’ expectations allocation of time varies greatly; cater content to such device usage.
of connectivity and inter- two thirds of time spent on tablets Smartphone applications, for
operability of their connected is devoted to gaming, compared instance, might want to take layout
devices, they still tend to use with 39 percent on smartphones. and functionality cues from popular
different devices in different Social networking accounts for social networking sites (such as
ways. Smartphone and tablet about a quarter of time spent on Tumblr or Pinterest), while those
users, for instance, engage in smartphones, contrasting with 10 to be used on tablets or connected
a variety of activities on their percent of time spent on tablets. TVs will want to make greater use
devices, though those activities Smartphones are often pulled out of entertainment preferences, such
Source: eMarketer, June 2012
are dominated by gaming and for utilitarian functions: mobile as casual gaming.
banking, directions and texting,
whereas entertainment activities


Part 2 :
context matters

Perhaps the most important shop, again shining a spotlight The good news is, many of the
thing to remember about the on the need for marketers to newer connected devices are
Table 6.
GAMING DOMINATES TIME SPENT ON TABLETS Connection Engine is that though understand and adapt to the getting smarter about discerning
Time Spent per Category, Smartphones vs. Tablets there are seemingly unlimited evolving consumer journey. the context in which they’re being
devices and ways consumers can For example, as a consumer’s used. (Google’s search algorithm
stay connected, every device is search for information or content on a mobile device places heavier
used differently. As evidenced becomes more complex (vacation emphasis on location than a PC
in the sidebar (“The Coming travel; comparison shopping search in order to deliver more
Connection Engine Explosion”), by feature or through multiple relevant results.) The result is more
smartphones are used in much retail outlets), he or she tends automation behind-the-scenes
more utilitarian ways than tablets to move these searches to more and more ease-of-use and utility
or televisions. While we expect to “traditional” devices, such as a for consumers, and a greater
see more crossover in the coming tablet or PC (even if those began opportunity for brands to connect
years (paying bills through an on the smartphone). with more relevant messaging.
Internet-connected television;
using a smartphone to watch We see mobile and its various
long-form video programming), forms of communication and Fluid Content
the context of the task to be connection (basic and multimedia-
Source: Flurry Analytics, September 2012
accomplished is the most texting, quick-response codes, As marketers, we need to
important factor in driving automatic content recognition, understand the variety of ways
device choice. near-field communications, consumers might engage with
Table 7. etc.) as the connective tissue us in the digital arena (which
CONNECTED TV FINDING A PLACE in THE LIVING ROOM In our current connection that brings all of these different is quickly replacing the analog
Why Viewers Watch Internet Content on Their Connected TV ecosystem, the phone is still the devices together, with the ability arena), and make sure every
primary device for people either to activate other media channels. piece of content is optimized for
looking to kill a few minutes Increasingly, the consumer’s each engagement. Already, the
while out and about (gaming); or expectation is that their proliferation of connected devices
looking for immediate and simple smartphone is the portal (and is accelerating the shift from live or
information. Directions, movie first step) to everything else in the linear television viewing to a more
times and simple price-comparison real world, including marketing consumer-friendly (and consumer-
shopping are all accomplished and advertising. Moving forward driven), on-demand model.
easily with a smartphone, and for marketers, having a solid Beginning with TiVo and the
potentially disruptive to a variety understanding of the consumer digital video recorder, on through
of businesses. Mobile phones have journey or path to purchase and video-on-demand, Internet video
irreversibly changed how people the role that each medium, and (Netflix, Hulu, Amazon Instant
Source: YuMe/Frank Magid Associates, May 2012 device, plays along the way, will Video, YouTube Channels, and a
only increase in importance.


Sidebar : social TV

If any trend has dominated the should be a concern to television
media industry over the past 18 advertisers, whose messages may
months, it is social TV, i.e. the push be ignored as attention is being
to get consumers to communicate focused elsewhere.
about what they’re watching in
more digital distribution channels
real time via social media, texting, Like producers and programmers
without cannibalizing existing
live streams and other connective who are developing companion
revenue sources, more challenges
media. While some view social TV TV viewing applications to
arise. We expect to see much
as a means to push consumers keep viewers engaged with
activity in this area both at
back to viewing live content on programming, marketers, app
CES 2013 and beyond, as more
a pre-determined schedule, we developers and device makers
experimental models that try to
believe that genie is out of the are working to enhance the
link content with revenue launch
bottle and will not go back in advertising experience, developing
this year. (See Sidebar: Second-
easily, if ever. ways in which mobile and tablet host of smaller players), anytime/ more fragmented viewing channels
Screen Entertainment)
ads can be viewed in-sync with anywhere content has exploded to will only accelerate. (See Sidebar:
That is not to say the multi-screen/ TV programming. While some, become a consumer expectation. Social TV)
social TV experience is not without like Shazam, are developing Just as cable moved TV from
One To Watch
opportunity. A joint Razorfish/ tools around “automatic content tens of channels to hundreds of Bottom line, consumers (unless
Yahoo! study from October 2011 recognition (ACR),” which channels, the Connection Engine they work in the marketing, media We expect to see continued
revealed that 4 of 5 connected recognizes and syncs to a piece is moving video to practically or some other entertainment- experimentation with premium
device owners are using a mobile of audio content in a program unlimited video content/channels. related industry), don’t care about streaming video content models,
device or tablet while concurrently or advertisement, others are TV or Internet media revenue including services that seek to
watching television programming. looking toward direct-connectivity Yet, from a content perspective, streams, usage rights and release provide consumers even more
Other studies suggest social media platforms, (like Apple’s AirPlay the industry continues to struggle windows. They want to watch what choice and control over both
buzz can increase TV ratings or Microsoft’s Xbox SmartGlass), with legacy business models that they want, when they want and content and advertising. We
and will keep audiences more to create a more immersive have not caught up to these new on the device of their choosing. If are aware of at least one stealth
engaged over time. Perhaps most experience. As on-demand distribution channels. Ad loads Napster, Craigslist and other peer- startup in the premium video
importantly for TV advertisers, content continues to grow, we in streaming video are still lower to-peer consumer connection sites space that will launch in 2013, with
studies have shown significant expect more experimentation with than “traditional” television and (along with the collapse of the an intriguing new approach that
lift in key brand health metrics rich two-screen interactivity for will not command the advertising music and newspaper industries) brings valuable new opportunities
when ads run on multiple screens, both content and advertising. investment at levels to replace have taught us anything, it is we to consumers, content providers
suggesting a stacking effect. the lost TV revenues. While event must provide consumers with and brand marketers alike.
ONE TO WATCH: Samsung. television, such as the Super Bowl, the easiest and best options for
Though it’s possible, even likely, At this year’s CES, Samsung is World Cup, March Madness, MLB the content they want, on their
many of these consumers are unveiling an innovative, cross- Playoffs and Academy Awards, schedules, or they’ll go out and
using their tablets and mobile device ad platform that enables will continue to attract large live create those options themselves
devices in conjunction with the mobile phone users to simply viewing audiences, the shift to leaving both the media and
programming they’re viewing shake their device during specific on-demand programming and marketing industries behind.
(see Sidebar: Second-Screen TV commercials to receive content
Entertainment), it’s clear many and/or more information about However, as content providers
of them are multitasking with the product being advertised. continue to work to meet
these devices, doing something It is internally dubbed as Project consumer demands through
completely unrelated to the S-Catch.
program they are watching on
the main screen. Such behavior


Part 3: Sidebar : Second-Screen
The Implications Entertainment

As the Connection Engine The big screen in the living room Another aspect of social TV that Ownership of this second-
develops, media streams will remains an extremely effective has been getting some attention screen experience will be a new
become much more fragmented. way to connect with audiences. is the so-called second screen, battleground that we expect to
Brands looking to remain Yet, it, too, is becoming part of through which content providers heat up in 2013. While producers,
connected and engaged with the Connection Engine – both in supplement programming (often networks and programmers
their consumers will need to learn the form of TVs connected to the on the television), with closer develop apps and companion
to follow the eyeballs across an Web, and through smartphone looks into programming via a viewing experiences for different
increasingly fragmented media and tablet devices used while second screen (often a tablet or shows, we wonder how many
landscape, and to find the ways watching TV. The interactivity, smartphone). In these early days individual apps consumers are
that best connect across different choice, control and instant of second-screen entertainment, willing to tolerate and engage
consumption environments. access to content/information all content providers are still with. Though they may regularly
It will also be essential for apply here as well, and it is crucial experimenting with finding the watch a dozen shows, we find
marketers to not only consider that marketers deliver on right multiple-screen option that it unlikely many consumers will
the environments through which that expectation. works best with consumers. ABC take the time to download more
they’re engaging with consumers, created an early effort with an app than one or two apps dedicated
but also the devices most often While mobile has become an tied directly to its Grey’s Anatomy to individual shows. At CES this
used in those environments. increasingly important platform program. That app has been year (and beyond), we expect to
Messaging and content must for brands, marketers should criticized for ultimately becoming see a number of startups fighting
be optimized both for the be cautioned against focusing a distraction from the primary to be a single “uber-app” that will
environment where they are most too much on one platform or entertainment content, the show enhance the viewing experience
likely to be used (living room, strategy in isolation. Campaigns itself. Other content providers across a consumer’s entire lineup
office and sidewalk), and for the and marketing programs should have similarly struggled with of favorite shows. Companies
device the consumer is most be conceived, developed and providing the right balance for such as Viggle (which recently
likely using (smartphone, tablet produced along a multi-screen their second-screen programming, bought fellow startup Get Glue),
and television). strategy, with content that and we expect even more hits and Zeebox and IntoNow, have
optimizes device capability (while misses as the winter television already started jockeying for that
Marketers should resist the minimizing device limitations), and season develops. position (Zeebox, for instance,
temptation to simply migrate with the context and environment has support from Comcast, NBCU
an analog ad (such as a static considered. Marketers must and others), but no clear leader
print advertisement) to the understand that, for the consumer, has yet emerged.
digital platform. Ideally, ads the brand experience migrates
should take full advantage of the across platforms and devices. They
interactive, immersive and sharable will expect marketers to know
capabilities of new platforms them, remember them and recall
enabled by the Connection Engine. the interaction you’ve had with
them in the past – regardless of
platform, device or environment.


Key Takeaways

And they will expect to build And yes, we’ve said it before, 24/7 connectivity is no longer consumers will expect all of
upon that experience, rather than but consumers will reward brand a novelty. For many consumers these devices to operate with the
starting from scratch each time. experimentation along multiple across the globe, an always-on same functionality (and to pass
platforms. The ideas that seem connection is commonplace. information across each other).
As consumers engage with risky to a marketer have already
content in different ways and become commonplace to Consumers are connecting with Consumers may be using more
across different platforms, they consumers who are moving much brands and each other across a than one device at a time.
will expect more control in how faster in adoption of technology wide array of devices in varied Distraction and multitasking
the content is presented, how and the Connection Engine than environments. They expect will continue to divide consumer
they will interact with it, and how many brands or marketers. They every experience – regardless attention. It is up to the marketer
they choose to participate with a expect to be met where they are, of device, time or place – to be and/or media provider to offer
brand. Such engagement is a key and will not come to you. Seek seamless and intuitive. A day- different engagement levels
part of 21st century marketing, them out, engage with them on parted, multi-screen plan that and opportunities to retain
and smart companies will embrace levels they expect and reward embraces the fragmentation of the consumers’ attention.
it, understanding that the more them for that engagement with Connection Engine is a necessity
interaction, participation and simplicity and seamlessness. for most marketers. And, it is up to Content must take advantage
involvement a consumer has with marketers and media companies of device opportunities, while
a brand, the more effective all to ensure experiences work fluidly acknowledging and mitigating
marketing and advertising will be. across every platform. device limitations. Programming
that works well on a smartphone
Consumers use different devices may not translate to the tablet or
in different ways (at least for television in the same way.
now). The smartphone and mobile
device may be the first level of The consumer journey is in a
information gathering, but more state of evolution. Overheard at
complex information searches a conference: “The purchase
and tasks tend to move to more funnel has become the purchase
“traditional” devices like a PC. pretzel.” Truer words were never
Entertainment (including gaming) spoken, as the Connection
is still the primary function of Engine has irreversibly changed
the tablet and television. It’s the purchase decision process.
likely many of these functions Marketers must adapt.
will converge over time, and


Things to look for

Hardware and software players will Device manufacturers will continue
continue to find ways to make it to experiment with touch, gesture
easier to migrate content across and voice controls, trying to
screens and platforms. Apple’s make the user experience simpler,
AirPlay has enabled this for years, more immersive and intuitive and
and Microsoft has brought the seamless among different devices
capability to Xbox. Samsung and and operating systems.
other manufacturers are building
their own methodologies as well. The Internet of Things will
take hold. Beyond the devices
The line between the device types we’re already aware of and use
is blurring. Operating systems like daily, more and more common
Windows 8, which adopts touch- devices will begin to connect
first interface that is similar across to the Internet, providing real-
desktop, phone, tablet and TV, is time updates and information in
only the beginning. This, along places we may not have thought
with the development of smaller of before. (Nest Thermostats
devices will mean more portability, learn a person’s habits while
simplicity and connectivity. We’re determining when and how to turn
expecting a bevy of laptop/tablet on a furnace; Google is developing
convertible machines built to Internet-connected glasses;
leverage Windows 8. Ambient Displays, which provide
real-time information at a glance,
will become more prevalent—and
a significant part of digital out-of-
home advertising.)

28

Chapter 2
Data-Driven Marketing

CH 2 : Data-driven marketing 29

Bryan Scanlon
Rob Jayson Dave Morgan Matt Spielman
President, Schwartz
Chief Data Officer, CEO, Simulmedia SVP of Strategy, Moxie
MSL and North America
ZenithOptimedia
Technology Director,
Dave Morgan is the CEO and Matt Spielman is the SVP of
MSLGROUP
Rob Jayson leads ZenithOptimedia’s founder of Simulmedia. He Strategy for Moxie, a full-service
worldwide data strategy, a role he previously founded and ran both digital advertising agency within
Based in Silicon Valley, Bryan
assumed in 2012. A combination TACODA, Inc., an online advertising the Publicis Groupe. He heads
Scanlon is the president of
of continual innovation, robust company that pioneered the digital AOR and leads the
Schwartz MSL, a global public
analytics and tools development behavioral online marketing and strategy and innovation initiatives
relations agency specializing in
have allowed him to be was acquired by AOL in 2007 for for L’Oreal USA. Prior to joining
the technology, health and energy
instrumental in finding new and $275 million, and Real Media, Inc., Moxie, Spielman spent six years
innovations that transform business,
exciting ways to approach one of the world’s first ad serving at MTV Networks where he
preserve the planet and save lives.
communications planning. As and online ad network companies helped build the network’s Client
He also leads the MSLGROUP North
Chief Data Officer, Rob oversees and a predecessor to 24/7 Real Solutions Division, working with
America Technology Practice,
the agency’s Global Analytics Media (TFSM), which was later senior marketing clients to develop
helping clients move innovation to
Center (GLANCE), collaborating sold to WPP for $649 million. and deploy marketing initiatives
the forefront of their brands, and
with ZO entities such as Ninah, After the sale of TACODA, Morgan that leveraged the entirety of
specializes in information security,
Performics and Moxie. He also served as Executive Vice President, MTV Networks properties, brands
big data and analytics, and data-
manages the implementation of Global Advertising Strategy, at and assets across all media. He
driven thought leadership and
the ZO Datamart and reporting AOL, a Time Warner Company also served as Vice President
marketing programs. Scanlon
tools suite, and focuses on brand- (TWX). He serves on the boards of Business Development and
has a 20-year track record of
specific data strategies, such as of the International Radio and Account Management at IAG
building awareness, valuation,
ZenithOptimedia’s “Live ROI.” Most Television Society (IRTS) and the Research (acquired by Nielsen). At
sales and brand equity for some
recently, Rob served as President American Press Institute (API), and IAG, he oversaw a research team
of the most successful technology
of Strategy for Zenith where he was a long-time member of the that advised senior marketing
companies. He’s taken many
was responsible for developing executive committee and board executives and their agencies on
clients from start-up to market
communication planning of directors of the Interactive the effectiveness of their TV and
leadership and reinvigorated
methods, ensuring planners led Advertising Bureau (IAB). in-theatre marketing efforts and
established technology brands.
their clients and the industry in made recommendations on how to
This includes work with Red Hat,
creating unique and powerful improve their results.
Netezza, Symantec, ServiceNow,
communication strategies.
Hortonworks, Blue Coat,
webMethods (now Software
AG), Imation, LifeLock, ESET
and MicroStrategy. You can follow
him on Twitter @bkscanlon.


Part 1 :
Introduction
The Rise of Big Data

The world is awash in data. Every ever before, but we’re still trying Data has always been a centerpiece That’s what consumers and data Data, while exploding, is becoming
time a consumer uses a credit to figure out what information of marketing. From decades-old companies are producing and easier to manage, combine and
card, a purchase-history is created. is good and what is bad. What techniques such as consumer storing every year. According to evaluate. Martin Hilbert and
Loyalty programs grant companies information is truly effective at research surveys, product McKinsey, “The increasing volume Priscila López in Science magazine
and retailers access to consumers’ increasing our ROI, and what is purchaser panels and customer and detail of information captured analyzed global storage and
purchase patterns and preferences. just more “white noise?” We’re relationship marketing to newer, by enterprises, together with the computing capacity, and found that
Every mouse click leaves a trail only now beginning to understand financial-market approaches rise of multimedia, social media, not only is our ability to accumulate
to follow. We know more about what works and what doesn’t. But like time-series modeling, chief and the Internet of Things will fuel and store data growing, but storage
consumers than ever before, and even as we do, more information marketing officers have always exponential growth in data for the capacity has become almost
they know more about us. is presented to us, sometimes looked to data and analytics to foreseeable future.” 2 exclusively digital (as opposed
reinforcing our marketing drive their decision-making. to analog). 3
All of this data can be empowering, programs. Sometimes, it requires In the modern age, however, two
or it can be daunting. More them to change completely, on a critical changes are transforming
information means greater insights, moment’s notice. The need to be the marketing landscape in ways
Data storage has grown significantly, shifting markedly from
smarter thinking and better nimble, agile and flexible has never we could not have imagined. First,
analog to digital after 2000
decisions all around. But with been greater. there has been a huge increase of
Global installed, optimally compressed, storage
new data coming in every day, we available data to track consumer
can become subject to “analysis We have reached a point where attitudes and behaviors in real
Overall Detail
paralysis,” delaying decisions and the art of marketing and the time. Second, we as marketers Exabytes % : exabytes
programs until we get the most science of data are completely have increased our ability to blend
3 10 54 295
information possible, to be sure intertwined, and are ever more and filter that mass of data into 300 100%=
Digital 1 3
we’re making the right decisions. inseparable. It’s time to learn how actionable insights that shape
The key is for us to recognize that to harness the ever-increasing marketing campaigns at the 250 25

data is not information, nor is streams of information (mobile strategic and the tactical level.
200
information the same as insights. and social alone are creating a
Instead, we have to process data large number of data sources) The explosion in consumer data
150 94
to reveal insights on a timely basis and use them to our benefit—just is massive and exponential. Analog 99 97
that can be actionable. as consumers are doing with According to the McKinsey Global 100 75
the information they get. Rather Institute, the volume of consumer
Fifteen years into the Information than making our marketing data- information generated in a year 50
Age, we’re just figuring out what dependent, we need to make it has exceeded six exabytes. That
6
it all means. We have access to Data-Driven. number – one that we cannot even 0
more data and information than really define – would fill more than 1986 1993 2000 2007 1986 1993 2000 2007

60,000 U.S. Libraries of Congress. NOTE: Numbers may not sum due to rounding.
It’s more than every word spoken SOURCE: Hilbert and López, “The world’s technological capacity to store, communicate,
and compute information.” Science, 2011
by humans if they were to be
digitized as text. 1
1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition,
and productivity,” June 2011
2 Ibid.
3 Hilbert and Lopez, “The world’s technological capacity to store, communicate,
and compute information,” Science, 2011


Sidebar :
are you prepared?

We all know the era of Big Data is issues that could be resolved
upon us. Yet, many in the industry with the help of Big Data and
are still unprepared. A recent IBM prioritize them. The most critical
CMO survey showed that – while and beneficial step that any brand
CMOs understand in no uncertain leader can take, in order to start
This change in capacity and the brands we market to them.
terms how critical Big Data is to the process of harnessing the
digitization of data storage has We also have the potential to
their future success – many admit power and insights of Big Data, is
huge implications. We now have manipulate, match and manage
they have yet to find the correct to establish a data strategy and a
a window into consumers’ lives that mass of data in almost
techniques and management set of key performance indicators
and almost every aspect of their limitless ways. (See Sidebar:
approaches. Forrester, meanwhile, (KPIs) that outline in detail the
relationship that they build with Are you prepared?)
surveyed business decision- direction of insights that are
makers about what they viewed needed from data analysis in order
as their most critical challenge to increase marketing ROI.
Percent of CMOs reporting underpreparedness in putting Big Data to use
effectively. The responses were The systems and data priorities
50%
all over the map, and the fact that that are established will clearly
Data explosion 71% there was little consensus shows be significantly different if the
that each organization needs to organization’s top Big Data priority
Social media 68%
set its own priorities about how to is about the ability of the internal
Growth of channel and device choices 65% tackle Big Data. organization to share data in real
time as opposed to a primary
Shifting consumer demographics 63%
However, no task is more essential challenge of not getting access to
Financial constraints 59% than to examine all of the potential real-time data at all.
Decreasing brand by loyalty 57%

Growth market opportunities 56%
TABLE 2
ROI accountability 56% Biggest challenges to use of “big data” for marketing

Consumer collaboration and influence 56%

We have too little or no
Privacy considerations 55% customer/consumer data 29%

Global outsourcing 54%
Our data is collected too infrequently
or is not real-time enough 39%
Regulatory considerations 50%

Corporate transparency 47%
The lack of sharing data across our organization is
an obstacle to measuring the ROI of our marketing 51%

We are not able to link our data together
at the level of individual customers 42%

We aren’t using our data to effectively
personalize our marketing communications 45%

0 10 20 30 40 50 60

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