We delivered a big Digital Transformation workshop this week and developing the content and the exercises reminded us how many businesses are struggling to understand how to best embrace digital. At the C level it’s usually the CMO that has the best handle on digital – but digital is so much bigger than marketing.
As this Adweek chart shows CMOs expect digital to grow to 75% of their budget – but 42% worry about managing that change.
When we talk with a wider C level audience we tend to find a hunger for knowledge across two areas
What is the topline on digital marketing? – so they can judge whether the marketing team are moving fast enough
What can we learn from other businesses that will help us evolve into a business that uses digital throughout the enterprise?
The Accenture study of CMOs that the Adweek chart is based on, suggests just 21% believe their company will be known as a digital business in 5 years time. So we need the whole C suite in board if progress is to be made.
So a new McKinsey report on the digital tipping point is well timed. Their research shows executives believe their CEOs are increasingly involved in digital initiatives. But they believe the most important digital focus will shift from digital engagement of customers to the digital innovation of products, operating model or business models in the next 3 years.
Another McKinsey piece highlights the breadth of issues with a look at digitising the customer journey –and the opportunity to design a better experience and reduce the ‘leakage’ across channels. But even within this a key question is who owns the customer and how you can get a silo based organization to collaborate in the way needed to make radical change.
Our work in the area of Digital Transformation ranges from Workshops and change management programmes through to briefing CEOs and Boards on how companies have embraced digital with different degrees of success. There is lots of interesting learning and a clear opportunity for those who take the initiative, rather than waiting to be disrupted by someone more nimble. If you would like to learn more about our work in this area let me know.
UK Mobile Adspend to hit £2bn
To reinforce the pace of change emarketer have predicted that mobile advertising will be bigger than print next year and bigger than TV in 2016. There is a slim chance it could be bigger than print this year as the forecast shows them neck and neck.
Does looking at spend this way actually help though? Should brands be measuring the % of spend on mobile or is the smart approach to spread the money across the channels where your audiences are? If you want to reach the people who value the Guardian then you will spend across print, online and mobile – tailoring the message to suit the channel it will be delivered in.
AKQAs’ Tom Bedecarre made a great presentation which gets into how the opportunity is so much bigger now and that the incremental approach just wont get you very far.
As we have said before, there is a danger we are building an industry on sand. A high proportion of mobile ad spend is VC money chasing app downloads from the rare people who pay to jump a level on Candy Crush. New research from Venture Beat shows that much of the app download spend isn’t actually that efficient Couldn’t better creative have an effect here?
But talking with another publisher this week we learned they do the creative for free to incentivize the media buy. Until we get creative talent engaged with mobile, there is danger a large proportion of the mobile spend is being wasted.
Talking with a bank about mobile and money this week was interesting. There is a real recognition that there is an opportunity with mobile to reimagine money – but there doesn’t seem the appetite to try things. In the meantime startups are experimenting and an interesting new mobile focused start up, with a prepaid debit card service aimed at kids, has launched in the UK.
If you are as fascinated by mobile and money as we are, you will want to read this long piece looking at the disruption in the US market.
Inevitably it ends up looking at Bitcoin and this article by Peter Diamandis – the man behind the $10m XPrize programme to encourage private spaceflight – is a good summary of the current state of Bitcoin and predicts we are just a couple of years from it really disrupting.
More on Google I/O
Following the Google I/O event there has been some smart thinking on the implications. This interview with Larry Page and Sundar Pichai adds some colour to the various announcements. This quote jumps out
Today, computing mainly automates things for you. But there’s an evolution from, today we tell computers to do stuff for us, to where computers can actually do stuff for us. For example, if I go and pick up my kids, it would be good for my car to be aware that my kids have entered the car and change the music to something that’s appropriate for them.
Ex Google Patrick Mork share his thoughts on I/O and thinks the Google strategy is moving from maximizing its share of mobile and is now moving to maximising share of time. So Android being present in your Car and on your TV as well as your phone plays to that – and as Google is more deeply baked in to Android they get more learning to drive the sort of thing the quote above alludes to.
The good performances of the US team has led to the World Cup breaking records for digital stream of sports events in the US. With research showing interest in the World Cup is strongest amongst the young we continue to think that one of GAFA will buy the mobile rights for either the Champions League or the Premier League. Our money is on YouTube, but Facebook continue to build out their video capabilities so don’t rule them out.
This Economist article thinks that eventually the US will get soccer, but it will take a little longer to get India and China on board.
Beacons & Retail
We recently met with the mobile lead at one of the US largest retailers when visiting London to see who was doing what with instore tech and Beacons. He had seen the Tesco trial at Chelmsford and the Waitrose one at Swindon and was off to Paris to see what Carrefour was doing. It seems that the US is just as cautious over beacons as over here. The Carrefour trial does seem a little more ambitious, but when will we see some real testing and learning
A really interesting piece on how print has a lot to offer digital . We are convinced there is lots of potential for smart content on mobile and good print titles can inspire this.
We think Apple is engineering an interesting collision of smartphone, wearables and beacons. This look at what Disney is doing with location and tech is a good clue to what’s possible. And the theory that Apple could buy Disney isn’t as daft as it first seems – all that content to offer as an Anchor.
This FT article makes the case the Amazon Fire is more about buying things than connecting people. We agree but think that FireFly will be a separate app by the end of the year. That capability is too powerful to leave locked in a phone with a low market share – especially as a Walmart or Tesco could roll out their own version.
The nice people at Unruly have a new report called the Science of Sharing, looking at what works in viral
Finally – as part of our Digital Transformation Workshop we talked about accepting failure – as the learning can be so useful – and one example we used was Google. Remember Google Wave? – a really interesting messaging and collaboration tool that never quite took off and was quietly handed over to Apache – but not before this genius Pulp Fiction homage demonstrated the potential.
Another experiment has finally failed – Orkut was Googles first attempt at social networks in 2004 – launched after Friendster turned down Googles offer to buy them. Whilst big in Brazil, it never really took off and has now closed.
But if you don’t try, you never know what does work. As we always end our presentations; It’s time to Experiment.