Really? You're asking me about the future of Digital Marketing?

In a recent new business pitch, I was asked the dreaded question. The ONE question that every agency person has been up against. The crystal ball. The fortune teller. The winning numbers on a lottery ticket. THAT type of question. Here goes…I was asked: What is the future of digital marketing?

Not exactly the easiest question to answer. But with a deadline looming, here were some of my thoughts:

1. Explosion of smartphone penetration and increasing importance of mobile integration Can you spell ‘OBVIOUSLY’? Felt I would be remiss not to mention this. Smartphone penetration in North America is often reported as high as 40%. This number is expected to climb significantly over the next few years. Understanding how to motivate consumers via this device and encourage interaction and brand advocacy will become more important than ever before.

2. In-bound vs out-bound marketing The marketing/communication landscape continues to change - daily. In this business, the only constant IS change. One thing we can be sure of though is the evolution from out-bound marketing (where brands pushed out their message) to the increasingly omnipresent in-bound marketing. In-bound marketing includes:

The shift has happened. And the pressure to provide value and utility will only increase. Check out this related infographic which I used as a source.

3. Heightened sensitivity around consumer privacy With the explosion of social networks and related marketing applications that delve into consumer settings and preferences, we as a society are more cautious than ever before about protecting our privacy. While consumers are hungry for laws that protect their information and private data, marketers are concerned with over zealous regulations that threaten to derail marketing and communication freedom (CASL anyone?). Striving for balance will be a key issue for marketers across North America. One only needs to look to recent claims and action taken against Facebook to understand the depth and complexity of the issue. Giving consumers clear access to control their privacy while allowing marketers to build permission based programs will become a bigger challenge over the next few years.

4. “Phygital” marketing Let me be clear on one thing. I detest the word ‘phygital’. But this isn’t about me. So let’s move on…. Phygital Marketing is often described as “ideas that extend brand engagement with consumers through the interplay of experiences in both the physical and digital spaces – in the Phygital space.”. With increasing budgets in the digital space (from media to production to innovation in technology), blending our physical world with the online environment is now the cost of entry. Consumers no longer decipher between online sites and physical store locations. The brand persona – and brand experience – is one. Agencies will need to understand how to connect and deliver engaging and useful interactions.

5. Monetizing social engagement It is no surprise that brands are clamoring to get on social networks such as Facebook (if they haven’t already arrived). Those who joined the party some time ago are constantly struggling with how to engage their fanbase while monetizing their ROMI. Herein lies the challenge….how to determine return on investment and furthermore, how to leverage the social sphere into a revenue generating channel. As social inevitably continues to evolve, we predict that the value will be less about ‘status’ and size of network and more about crowd sourced solutions and daily interaction. Social media in the B2C space is not only about helping brands connect with consumers but also influencing awareness, interest and desire. Some brands have been able to directly monetize their social media efforts and are well on their way to turning this dynamic channel into another example of ‘phygital’ well done.

Robin Whalen

Tags: Digital