The document discusses key trends in the UK digital marketing landscape including the growth of digital advertising spend, the dominance of search advertising, and trends in consumer digital behavior. It notes that the UK is a sophisticated digital market where consumers are increasingly connected, empowered, savvy, busy, and have high expectations. Specific search marketing trends discussed include tailoring ads to individual consumers, the challenges of attribution across devices, and the importance of technology to efficiently manage large search campaigns and optimize performance.

1. Performance Marketing Ecosystem – role of media channels, agencies and partners”
The Digital Consumer
Key trends for
2013 & beyond

2. • Image100.com 1990s
• GoTo / Overture / Yahoo 2000-2004
• The Search Works 2004-2007
• The Technology Works 2004-2007
• TradeDoubler 2008
• I Spy Marketing 2009-2012
• iProspect (Aegis) August 2012
• iProspect manage c$2bn in Search Advertising globally for many of the
world’s leading brands with c2000 global staff in 50 locations
My career in search & digital marketing

3. • 64m population
• Broadband, Smartphone and tablet penetration
high – a sophisticated market
• Google Monopoly – 90% market share for 5+
years
• 15% the size of US search market c $8.5bn on
online advertising & c$5bn on search
• Agencies dominate search spend
• Mature market – heavy competition
• Higher Cost Per Click for clients
• Higher Revenue Per Search for search
engines
About the UK

4. • Ongoing Growth – living through a successful marketing
revolution
• Changes in Consumers puts the focus on digital marketing
• Specific Search trends that iProspect deal with every day
Trends In Search

6. £465
£825
£1 366
£2 016
£2 813
£3 350
£3 541
£4 097
£4 809
£5 416
£0
£1 000
£2 000
£3 000
£4 000
£5 000
£6 000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
£Millions
SOURCE: IAB / PwC Digital Adspend 2002 - 2012
UK Digital advertising spend – last 10 years

7. SOURCE: IAB / PwC Digital Adspend 2002 – 2012 & WARC
Digital shows sustained quarterly growth

8. SOURCE: IAB / PwC Digital Adspend 2002 – 2012 & WARC
Digital spend is the biggest medium

9. SOURCE: IAB / PwC Digital Adspend 2002 – 2012 & WARC
Digital = 31% of a £17.6 billion market

10. Category 2011 Share
Search 58%
Display 24%
Classified 16%
NB: Other includes Lead Generation, Search Affiliate, Solus Email, Mobile SMS/MMS SOURCE: IAB / PwC Digital Adspend 2012
The digital media mix - % share of revenues 2012

11. SOURCE: IAB / PwC Digital Adspend 2012
Search continues to show impressive growth

12. “
“What does the UK growth
tell us and why?

13. changing
The world around us is

14. reasons
Three main

15. 70%
Speed
Will have 4G coverage
by the end of 2013

16. £83
Accessibility
Is the average price that
an entry level smartphone
has fallen to

17. 44%
Information
Visit price
Comparison sites

18. Today’s
consumer
Is…. Different.

19. Five consumer trends
1
2
3
4
5
Connected
Today’s consumer is
Empowered
Today’s consumer is
Savvy
Today’s consumer is
Busy
Today’s consumer is
Expectations
Today’s consumer has high

20. connected
Today’s consumer is

21. Whenever, Wherever
48% Increase in time spent
online in two years
40% Of all adults use 2+
devices to go online
28% Of time spent online via
mobile

22. Across all screens
75% Of W Europe population
will be online
50% Will have a smart-phone
20% Will have a tablet
By next year…

23. We lead increasingly ‘3 device lives’

24. M Commerce becoming big business
Of all Debenhams
traffic via mobile
Global sales
through mobile
Of all online sales
via mobile

25. Top 100 advertiser mobile websites
63% 37%

26. Keeping up with
the consumer
What clients should be doing:
Think cross platform digital strategy
Ensure consumers experience a great user
experience across all platforms by
developing mobile and tablet optimized
sites and connection plans

27. Empowered
Today’s consumer is

28. Choice & Control
More than a third of adults watch video
on demand
One in ten households have
Connected TVs
Over three quarters get their main
source of news online

29. Curators rather
than Consumers
Tomorrow’s consumers will curate their
own media galleries
Increasingly, they will cherry pick the
content that’s right for them
and share it with those with similar

30. Keeping up with
the consumer
What clients should be doing:
Free content from place and time
Use data to understand the customer to
personalize the media and content experience
Diversify traditional TV advertising strategies
into other channels such as Video On Demand

31. Savvy
Today’s consumer is

32. More sites, more
Searches
27 days
3:17 hours
22 sites
and
across
Before making a purchase, today’s
consumer spends up to:

33. Recessionary
Behavior to stay
Consumers will continue to seek
out the best deals and research
their purchases thoroughly even
when we begin to see green
shoots of a recovering economy.

34. Keeping up with
the consumer
Maintain a strong digital presence
throughout the customer’s path to
purchase - understand attribution
Search at the core of the plan
Understand the true customer journey
Be always on at the moments and the
places that matter
What clients should be doing:

35. Busy
Today’s consumer is

36. Elusive
Today’s consumer is constantly on
the go.
They have so many things to cram
in to such little time.
It’s a struggle to get, never mind
keep their attention

37. Time pressured
Next Year:
Consumers will take more measures to
save time:
90% Will make purchases online
53% Of internet users are expected
to have their groceries delivered
40% YOY growth expected for
mCommerce

38. Keeping up with
the consumer
Help them to save time by making their lives easier
(apps, click to call, mobiles sites, easy to use sites)
Remarket to consumers who have already shown
an interest in your brand who haven’t had the
chance to convert.
Get their attention with impactful & engaging
creative
What clients should be doing:

39. Expectations
Today’s consumer has high

40. Simply the best
Today’s consumers want the best of
everything from...
WEBSITE SPEED
to
CUSTOMER SERVICE

41. Fast & efficient
55%
Of consumer have
abandoned a purchase
because of poor customer
service
Key reasons include:
Waiting too long for an issue to be resolved.
Having to make a follow up call.

42. Speed matters…

43. Keeping up with
The consumer
Ensure all online touch points with your brand
provide a fast and efficient experience
Deliver a great website site user experience
Use analytics to optimize and personalize
Be social by design
What clients should be doing:

44. 1
2
3
4
5
Connected
Today’s consumer is
Empowered
Today’s consumer is
Savvy
Today’s consumer is
Busy
Today’s consumer is
Expectations
Today’s consumer has high
Five consumer trends

45. Specific Trends In Search
•Targeting the customers that matter
•Attribution – 3 battles that wage endlessly
•Technology selection and evolution

46. Not all UK consumers are equal

47. Search Ads are Tailored to the Individual
Stage 2
• New versus returning consumers
• Consumers who pass credit checks
• Consumers who will be profitable long term customers rather than the
mass market
Stage 1

48. Attribution in a 3 device world is an impossible
dream for most marketers
But still marketers endlessly battle On; Battle Number 1 - Brand & Non
Brand terms - beware of reducing volume
Battle Number 2 Paid and SEO. If it’s working invest more not less
Battle Number 3 Impact of Offline media on Paid Search. Good offline
media drives searches

49. Technology Is Vital to Manage Search
• To efficiently create, manage and track large campaigns across multiple
search engines search technology is a given
– Campaigns with millions of keywords
– Tracking multiple actions
– Regular optimisation to CPA or ROI targets
• Historically 3 Options – Bespoke Technology, 3rd party technology
(Kenshoo, Marin, Ignition One or Adobe) or Search Engine Own technology
• Choose the technology that is right for your business that allows you to
understand and optimise campaign performance
– Robust
– Scalable
– Costs are known
• Given the new battlegrounds of Attribution, Targeting individuals and
relentless budget optimisation the well funded tech players look strongest

50. To Conclude
• The UK & Global search market is growing fast and isn’t slowing
• The World is Undergoing a consumer driven digital change
• Advertisers are willing to pay more for the right consumer
• Those consumers are not making it easy for advertisers to track
them and attribution is getting harder every day
• Select the right technology partner wisely to get the best results