Tony Foggett's Digital Predictions for 2012

As another year draws to a close, we once again take time to reflect on key milestones from the past 12 months and share some of the agency’s insights into emerging digital trends that will have the biggest effect on multi-channel strategies in the year to come, writes Tony Foggett, CEO of Code Computerlove.

How Quickly A Year Shifts In Digital

Whereas in 2010 it sometimes felt as if consumers and technology were moving faster than marketers could keep up with, in 2011 brands and service providers finally embraced new digital platforms, channels and technologies with some fantastic digital marketing campaigns exploding on to the scene.

On the whole it’s been another exciting year of fast paced change…yet again. I think I wrote something very similar last year, there’s definitely a pattern emerging!

But this year the speed of change was dominated by the growth of mobile and adapting new technologies to deliver a better customer experience.

Mobile has revealed itself as a game-changer for high street retailing, and that it’s likely to become the primary digital marketing channel between businesses, brands and consumers. But in 2011 brand-consumer engagement via mobiles has not always been a satisfactory experience, where consumer demand and expectation from mobile has tended to outstrip what’s being delivered. Companies that haven’t yet got a mobile strategy in place need to make this a priority for 2012.

And it’s the pace of change that’s once again been the major challenge to the marketing community.

Clients are still trying to adjust their marketing capabilities to an empowered consumer, an altered media landscape and a period of rapid technological change; and lack of boardroom understanding is still apparent.

Our role as an agency partner now goes deeper than just implementing great campaigns or digital solutions to increasing marketers’ appreciation of how technology is affecting their business; helping them to understand and appreciate the change in technology, which platforms to prioritise, how to develop a longer-term strategy and in some cases how to re-engineer their internal structures to enable change. Within these organisations a realisation is dawning that siloed approaches are no longer relevant in a multi-channel, or omni–channel, world.

And, unlike when we started out 11 years ago, as an agency we don’t just operate in terms of websites anymore, we plan around platforms, embracing multiple technologies – including various facets of mobile and tablet development, gesture based technology and outdoor display. Why? Because that’s the future of consumer communication and allows us to create relevant and forward thinking digital solutions that will have the greatest impact on a client’s bottom line today and in the future.

This time last year, in addition to the cross-platform revolution, I predicted that content engagement strategies would be a buzzword, with a shift from the old interrupt model of advertising to building an audience through value exchange and ongoing dialogue. This has certainly been an area of focus for many brands and we at Code have worked with all of our clients on social media strategies and campaigns that can flow through earned media channels. Brands will continue to develop more sophisticated ways of embracing social channels in the year to come.

2012 – Getting on the front foot

While 2011 centred on ‘new technology’, 2012 will be more about marketers applying the technologies to maximum effect and exploring opportunities within platforms; meaning the extent of change should be on a slightly lesser scale than marketers have experienced during the past few years. Phew, I hear you say.

That said, expect plenty of innovation and lots of stimulating new ‘digital stuff’ to keep consumers happy, and I predict that full service digital agencies will increasingly be those at the centre of these exciting new campaigns that span all media and disciplines, especially those that can deliver the strategy, technology and creative ideas.

1. Digital Gets More Strategic

Fundamental to the exploitation of technologies and platforms in 2012 will be increased customer insight and greater accountability.

More decision-making will be firmly grounded on perception into consumer behaviour, journey planning and relevance, with fewer cases of brands jumping on the bandwagon “because they think they need an app etc”

And agencies, like ours, that can deliver this insight will begin to shine through again versus app providers who can deliver a technology but without any thought or accountability behind it.

Marketers will lean on their agencies to be able to turn ideas and information into evocative solutions and brand experiences that consumers will really love and want to share.

Investment in digital will continue in earnest during 2012 based on measurability and case studies that clearly demonstrate effectiveness in new channels. So while experimentation is crucial in delivering brand stand out and to steal a march on the competition, analytics, examples of ROI and a more targeted approach will help convince marketers and procurement departments that they’re embracing the right technology and using the platforms that are most relevant in the lives of their customer.  

As current digital platforms mature and more emerge, content will remain a key differentiator for e-commerce and brand building activities in 2012. The importance of clever creative thinking and technology remains – if not becomes more important.  

But in all of this advancement into new and exciting territories, it’s vital that marketers don’t lose sight of the basics, like SEO and A/B testing. Around 25% of the top 100 online retailers in the UK still have holes in their SEO strategy. Basics like page descriptions are missing from home pages. What’s the point spending all of your resource and money driving people to a site that may be delivering a poor experience? Creating fantastic user experiences across multiple platforms will also be a key trend for 2012.

2. There will be more focus on driving ROI through profitable, engaging, seamlessly integrated and consistent multichannel strategies

Customers are platform agnostic – seamlessly jumping from one to the other and brands have to be the same. Moreover, research shows that multi-channel shoppers are more valuable than those using a single purchasing point (either offline or e-commerce), spending almost double. But consumers are less brand-loyal in today’s multi-channel world.

So a big shift in 2012 will be ways in which retailers bring together their current channels and the integration of brands’ on and offline worlds. Again, understanding today’s consumers’ user journeys becomes more important than ever in shaping this change.

More digital solutions will also enter the physical retail environment and mobile in store presents brands with an opportunity to retain greater control of the purchasing journey all the way to till, and help prevent customers switching retailers if stores haven't got what consumers want in stock. Also expect the research experience to be integrated into the store experience – watching videos or gaining additional information via phones while browsing.

Already more and more retailers are exploring ways to embrace technology within their shopping experience – from iphone apps and contactless payments to virtual products – and this will be a big area of differentiation between them in 2012.

Creating a more seamless experience and merging physical and digital channels will help to create closer relationships with customers, being able to recognise that they’ve shopped in store, as well as online and reward them accordingly, can help to increase brand loyalty and sales. 

3. Gestural technology implementation 

Shared/social gaming applications are another area of real opportunity in 2012.

We use Kinect’s and OpenNI depth capabilities to create a variety of gestural user interfaces.  Applications of this technology include allowing people to engage with shopfrontage, allowing potential buyers to ‘gesture’ through the entire back catalogue of products, prices and retrieve detailed digital information that can be manipulated and shared.

We have also developed dual screen applications that allow users to take over and interact with a parent screen from their smart phone.

4. Social, Local and Mobile

Mobile and tablet use brings new customer needs and user contexts, and it’s probably is the most exciting area for development in 2012.

If 2011 has been the year when mobile technologies emerged in earnest, 2012 will be the year when brands really start to take advantage of smartphone and tablet usage. Mobile offers an amazing marketing platform with which to innovate from.

The latest mobile web technologies now make it cost effective for all brands to develop a mobile presence and as these technologies develop we’ll see an increase in the mobile web and a decrease in developing for multiple platforms as the marketing continues to diversify.

That said, focus will be given to tablet technology as its usage becomes more widespread and more robust data in terms of user’s distinctive needs becomes more apparent. The tablet is likely to be considered as a new content platform distinct from both the desktop and the smartphone during 2012.

It’s also important that marketers don’t just view their mobile solutions as just another device for e-commerce and for viewing their brand websites, mobiles go much further in enhancing offline experiences (namely physical shopping) and in relation to location based marketing and social. Mobile is about an audience not just device.

Location and mobile will play a more significant role in how people engage, shop and interact. The inherent immediacy and location awareness of mobile devices adds depth, relevancy and context much further into the digital purchasing journey than has traditionally been. Emerging technology - for example near field communication - opens up even more opportunities such as simplified in-store purchasing, promotions and couponing. And marketers who can deliver local relevance and local information in their advertising will be able to capitalise on the demand for “right now, for me”.

Social has already transformed some major brands and, as dialogue not message continues to be important in 2012, hopefully a few more brands will embed social into their whole business. Even more so than ever, consumers crave humanity, compassion, transparency and maturity, and brands have to show a human side in 2012.

Social media will continue to move from experimentation to integration with other marketing channels and across business functions, and it will grow as a sales channel in 2012.

5. Social TV is one of the key digital trends we expect to impact brands in 2012.

Social TV - the connection of television viewing and social engagement – presents a number of opportunities for brands. Watch this space!

6. The rise and rise of online video

As e-commerce techniques continue to mature, and consumers demand better online shopping experiences, it’s no surprise that online video content is high on sales and marketing agendas for 2012.

The growth in online video content is being facilitated by better broadband speeds, which means that it’s now easy to download HD video from home PCs and even mobile devices. Reports are predicting up to a 50% rise in investment in video advertising next year and businesses without an online video presence will soon be in the minority.

7. Being British and the Olympics

And finally, there won’t be much getting away from the 2012 Olympics. In addition to the official sponsors, brands will be capitalising on ways they can use all channels to link themselves to the event and consumers' excitement in "Britain". The British theme will also be continued as we celebrate the Queen’s diamond jubilee.

Survival of the fittest

The biggest advice that I can give marketers for 2012 though is that they can’t sit back and do things how they’ve done them before – even how they’ve done them in 2011.

The brands that truly embrace new channels in the context of consumer’s lives, by applying understanding, insight and management of data, will be the ones who stand to gain ground in what’s set to be another turbulent year in terms of the wider economy.

Mobile is only one part of a marketing strategy. Brands need an integrated cross-platform view of digital and to rethink their whole approach – from back end platforms that deliver better integration and user experience across not only mobile and desktop but to all other consumer touch points.

And we need to be aware that the current mobile trend is just the beginning. Consumers will be interacting with brands via a greater diversity of web enabled devices and platforms. IPTV is an immediate opportunity and announcements like Google’s ‘Android@Home’ framework, which allows household appliances to communicate with Android devices demonstrates Google’s intentions of finding new ways to use their information in everyday life beyond the mobile phone.

Happy New Year.



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