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The 50 Most Important

Marketing Charts of 2016

Inside this collection


Every year, we look back and analyze the biggest trends that shaped
marketing. We also look ahead to how theyll impact marketers in the coming
year. Last year was the year of mobile, as messaging apps exploded and started
to converge with social networks.
Another standout trend was ad blocking, as software became easily accessible
to both desktop and mobile browsers. For marketers and publishers, this
means a readiness to innovate is key. And speaking of innovation, new media
formats gained popularity in new apps like Snapchat, and were experimented
by stalwart platforms like Twitter and Facebook. So in a world where brands
can get their message across on a multitude of channels, how much does it cost
to create this content?
We undertook our largest study to date, surveying over 300 CMOs and senior
marketers about the costs of producing content and the results show that
content costs are on the rise across industries. This year, weve included new
categories on creative workflows, customer experience, and streaming media
three things that are of increasing importance to marketers. Jump right in.

Mobile

For brands to succeed today, they need to


communicate eectively with their mobile
consumer. These charts illuminate mobile web
behavior and content consumption patterns.

Nearly two-thirds of all internet time is spent on mobile


Percentage of total Internet minutes Monthly minutes spent online, Dec 2014 vs. Dec 2015

December 2014

December 2015

35%

40%
Total Mobile Minutes
Total Computer Minutes

60%

Source: IAB Digital Trend Usage Report, 2015

65%

Mobile will account for half of e-commerce by 2020


US Mobile Commerce Forecast, 2015-2020
Tablet

Smartphone

49%
Share of mobile commerce by 2020

$79
$69
$60
$51
$43
$35

$80

2015 (F)

$99

2016 (F)

$119

2017 (F)

F = Forecast

Source: Mobile Commerce Daily, Forrester Research Mobile and Tablet Commerce Forecast, 2015-2020

$138

2018 (F)

$156

2019 (F)

$173

2020 (F)

Asia Pacific will become the worlds largest app market


App downloads by region, in billions
APAC
300

EMEA

284.3

58.3
240

63.7
180

147.3
120

60

111.2

31.4

25

36.3

27.7
58.5

Source:App Annie

162.2

2015

79.6
2016

2020

Americas

led by China, with 51.9% of global app downloads


App downloads by region, in billions
China
300

284.3

240

194.1

180

147.3
120

111.2

98.3
73.2
60

90.2
38
0

Source:App Annie

2015

49
2016

2020

Rest of World

Apps, not browsers, get the lions share of mobile usage


Mobile Time Spent In Apps Vs. Browser; Daily Minutes Per User Per Day, US
Mobile Browser
300
270
240
210

Minutes

180
150
120
90
60
30

Q1 2013
Source: Company Filings, News and Company Announcements, GlobalWebIndex

Q2 2014

Q2 2015

Mobile Apps

Which brands win on messaging apps?


Brand categories messaging app users are most likely to interact with
35-49

18-34

Total

Snacks

Restaurants

E-Retailers

Movies

TV Shows

Source: MEC

10

20

30

40

50
Millions

60

70

80

90

100

87% of millennials say theyre never without their smartphones


My smartphone never leaves
my side, night or day

When I wake up, the first thing


I do is reach for my smartphone

I spend more than two hours


every day using my smartphone

In the next five years, I


believe everything will be
done on mobile devices

Source: Mary Meekers 2015 Internet Trend Reports

10

20

30

40

50
Millions

60

70

80

90

100

The second screen is alive and well


Percent who strongly agree with the following statements:
"I browse the internet while watching video programming"
"I like to keep up with shows so I can join the conversation on social media"
"I watch live video programming content more if it has a social media tie-in"

Global Average

Asia-Pacific

Europe

Middle East/Africa

Latin America

North America
0
Source: Nielsen Global Digital Landscape Survey

15

30
45
Percent of respondents who strongly agree

60

75

Watching mobile video has never been more popular


Percentage of Video Plays on Mobile Devices, Global
50

42%

45%

38%

40

Share of Plays (Percent)

44%

46%

30%
30

27%
22%

20

13%
10

4%
0

4Q11

Source: Ooyala

6%

1Q12

7%

7%

2Q12

3Q12

8%

4Q12

15%

17%
10%

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

CMOs think mobile marketing can perform better


Rate the performance of your companys mobile marketing activities (1 = Poor, 7 = Excellent)
August 2015

February 2016

3.56
2.89

3.46

2.92

3.12

3.14

3.47

3.44
2.74

2.90

2.64

2.74

Customer acquisition

Customer engagement

Source: The CMO Survey by the Fuqua School of Business at Duke University

Customer retention

Delivering your band message

Sales

Profits

Theres huge scope for mobile banking in emerging markets


Emerging Market Penetration: Bank Accounts vs. Mobile Phones, 2014-2015
Bank Account Penetration

100%

86%

71%

57%

43%

81%

75%
29%

80%
53%

14%

0%

Kenya

Source: World Bank, Communication Authority of Kenya, TRAI

India

Mobile Penetration

But for many, data is too expensive relative to income


Cost of 500MB of data against hourly minimum wage in USD
Cost of 500MB of data

Hourly minimum wage (USD)

25
$23.41

20

$16.47
15

$13.77
$12.88
$11.76
$9.98

10

5
$3.38
$2.39
$0.56
Mexico
Source: Jana

$1.22
South Africa

$1.04
Brazil

$0.46
Nigeria

$1.18

$1.29
$0.2

Philippines

Turkey

India

$0.43
Indonesia

Digital Media

A multitude of new media formats lets brands


amplify their reach, but they need to be prepared
to be innovative in order to combat ad blocking
and the costliness of new media formats.

Social media spend will increase to 20% of the marketing budget


Social media spending as percent of marketing budgets
% of Marketing Budget

20.9%

13.2%
10.6%

Current Levels

Source:The CMO Survey 2016

Over Next 12 Months

In Next 5 Years

Brands outsource up to 22% of social media to agencies


Percentage of companys social media activities performed by outside agencies

% Outside Agencies

21.7%
20%
18.9%
17.4%

Feb-14

Source:The CMO Survey 2016

Feb-15

Aug-15

Feb-16

Creative alert: Brands are using more emojis in their content


Top global brands that use emojis in posts
Q4 2014

Q4 2015

350

300

Sessions

250

200

150

100

50

0
Source: SocialBakers

Facebook

Twitter

Note: Top 500 brands based on followers

Twitters user growth continues to stall


Twitter Monthly Active Users (Global)

Millions

Monthly Active Users (Global)

$185

Q4 2012
Source:Twitter

$204

Q1 2013

$218

Q2 2013

$232

$241

$255

$271

$284

$288

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

QoQ Growth

$302

$304

$307

$305

Q1 2015

Q2 2015

Q3 2015

Q4 2015

320M
Monthly Active
Users at Present

Ad blocking is on the rise, and it isnt going anywhere


Global Monthly Ad Blocking Software Users (desktop)

181M

Global Monthly Active Users

198M

121M

Monthly Active Users

54M
39M
30M
21M
Jan 2010

Jan 2011

Source: PageFair and Adobe | 2015 Ad Blocking Report

Jan 2012

Jan 2013

Jan 2014

Jan 2015

The global cost of ad blocking will almost double this year


Global Economic Cost of Blocking Ads
50

40

90%

Billion USD

30

Increase in ad blocking cost


from 2015-16

20

10

2013

PageFair and Adobe | 2015 Ad Blocking Report

2014

2015

2016

But ad revenue is still growing along with subscribers


New York Times Digital Revenue (Global)
Advertising

$120

Subscriptions

$100

Millions

$80

$60

$40

$20

Q1 13
Source: The New York Times

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

For most news websites, over half of mobile data is spent on ads
Time to load editorial content versus advertising content for major news publications
Seconds to load advertising content

Seconds to load editorial content

30
27
24

Seconds to load

21
18
15
12
9
6
3
0

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la

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m
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po

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Da

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Sa

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Source: The New York Times, The Cost of Mobile Ads on 50 News Websites | October 2015

Facebook and Pandora are the most used on mobile


Monthly mobile minutes (Billions), Dec 2015 (to any site or app via mobile device)

Billions of Minutes

210

984.3B
Total monthly mobile minutes

200.7

95

92.2
74.6

19.8

Facebook

Pandora

Google

Source: IAB Digital Usage Trend Report Full Year 2015

Apple

Spotify

19.4

13.7

Yahoo Sites Amazon Sites

11.1

10.9

7.2

6.8

Netflix

Snapchat

Twitter

Microsoft Sites

What drives people to block ads?


Why consumers tried using ad blockers (Percentage of respondents)

Found out ad blockers exist

Got a virus from clicking on an ad

Got tired of low quality ads

A friend recommended an ad blocker

Don't like seeing behavioral targeted ads

Source: IAB

11

15

19

23

26

30

Visitors to social networking sites are more likely to block ads


Global share of ad blocking rates by site category (Q2 2015)

30

24

18

12

Source: PageFair and Adobe | 2015 Ad Blocking Report

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User experience is now on marketers radar, thanks to ad blocking


Almost two-third of marketers surveyed said UX is a high priority

26%

22%

48%

Source: Celtra

4%

We don't think about it


It's somewhat important
It's high priority
It's our highest priority

Most publishers will turn to content blocking


Publishers preferred response to ad blocking

9%

24%

46%
X

21%

Source: Celtra

Content blocking
Subscription models
Paywalls
Using an ad block vendor

Streaming Media

Cord-cutting isn't just a buzzword anymore:


people are choosing on-demand streaming
services over cable subscriptions, leaving
advertisers wondering how to fill the gap.

Cord-cutting is on the rise as cable subscriptions decline


Cable subscribers, by service
TV

Broadband Internet

60
58
56
54

Millions

52
50
48
46
44
42
40

Q4 2013

Source: Leichman Research Group

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Spotify is still the leading streaming music service


Paying subscribers in Q1 2016

40

Millions

30

20

30M
10

11M
0

Source: Spotify, Apple

Spotify

Apple Music

Podcasts are increasing in popularity


Share of U.S. population that listened to podcasts in the last month

25%

Percent of U.S. Population

20%

15%

10%

5%

0%

2008

Source: Edison Research

2009

2010

2011

2012

2013

2014

2015

2016

Netflix is aggressively adding content


Netflix cost of content streaming

12

Billions (USD)

2010

Source: Company Filings, Statiista

2011

2012

2013

2014

2015

Higher income households stream more video


On-demand streaming and high-speed internet penetration are income-related

<$40k

$40k-$75k

18%

$75k-$100k

$100k+

5% 4%

21%
32%

29%
23%

15%

19%

68%

31%

35%

Have broadband, but dont


on-demand stream video

Source: Nielsen

Stream on-demand video

Dont have broadband

Short-form video streaming is on the decline


Share of video content type streamed globally per year
Live

Movie

100%

80%

Millions

60%

40%

20%

2014

Source: Conviva

2015

Episodic

Short-form

Marketing Spend and Strategy

Marketing budgets may be going up, but are those


dollars being invested wisely? Knowledge
management and process ineciency can drive
down high production costs.

12%

22%

Traditional

Display Ads

How does the average advertising budget break down?


13%

Brand Publishing

14%

10%
Programmatic

14%

15%

22%

Traditional

12%

Search Ads

Display Ads
Website & Ecommerce

Social

13%
Brand Publishing

14%

10%
Programmatic

14%

Social

Source: Percolate

15%

Website & Ecommerce

Marketing represents an increasing percent of firm budgets


Marketing budget as percentage of firm budget

% Marketing Budget

13

12.1%
11.4%

11

11.4%
10.9%

10.9%

10.6%

10.4%

10.1%

10%
9.4%

8.1%

7
Feb-11

Aug-11

Source:The CMO Survey 2016

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

Feb-16

Marketing budgets forecasted to increase 6.9%


Percent change in marketing budgets in next 12 months
Change in Marketing Spending

9.2%

9.1%
8.7%
8.1%

6.7%

6.4%

5.9%

6.9%

6.7%
6.1%
5.5%
5.1%
4.3%

1.1%
0.5%

Feb-09

Aug-09

Source:The CMO Survey 2016

Feb-10

Aug-10

Feb-11

Aug-11

Feb-12

Aug-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

New media formats are driving growing production costs


Top 5 Responses: What are the top drivers of non-working spend for your team? (Select up to three.)

Emergence of more expensive


media formats

Brief creation, planning,


and media evaluation

Employee talent costs

Agency costs

Lack of defined process


for newer media
0

Source: Percolate

10

15

20
25
Percent of respondents

30

35

40

45

B2C brands expect the most growth in marketing costs


Non-working spend growth trends (n < 12 excluded)
Non-working spend has increased in the past year

Non-working spend will increase in the next year

Percent of budget consumed by non-working expenses

100
90
80
70
60
50

89%
40

78%
65%

30

60%

62%

61%
51%

20
10
0

Source: Percolate

57%

42%

51%
37%

25%

Banking

Consumer-Packaged Goods

IT & Technology

Manufacturing

Retail

Professional Services

Production cost growth isnt under control


How have non-working spend levels
grown in the last year?

10%

How do you expect non-working spend


levels to grow in the next year?

2%

4%
13%

22%

26%

11%

62%

51%

Have seen growth


in the past year

Expect non-working to
grow in the next year

33%

40%

40%

Increased signifcantly
Stayed about the same
Decreased significantly

Source: Percolate

Increased
Decreased

Will increase significantly


Will stay about the same
Will decrease significantly

Will increase
Will decrease

And heres how much goes toward ad production


Share of non-working spend

Share of working spend

Average share (by media category)

100

80

60

40

50%
20

Traditional media

Source: Percolate

43%

42%

40%

40%

38%

38%

Brand publishing

Social

Website & E-commerce

Programmatic

Display ads

Search ads

Ad production costs dont have an industry bias


How Non-Working Spend Consumes Budgets Across Industries (n < 12 excluded)

Advertising Budget

Marketing Budget

Percent of budget consumed by non-working expenses

50
45
40
35
30
25
20

46%
41%

38%

37%

32%

15

5
0

Source: Percolate

24%

23%

10

17%

14%

Banking

Consumer-Packaged Goods

42%

IT & Technology

16%

Manufacturing

19%

Retail

Professional Services

Production costs dont have a revenue bias, either


How Non-Working Spend Consumes Budgets (By Revenue)

Advertising Budget

Marketing Budget

Percent of budget consumed by non-working expenses

45
40
35
30
25
20

40%

42%

42%

40%
34%

15
10

23%
17%

19%

21%

25%

5
0

Source: Percolate

Less than $50M

$50M to $249M

$250M to $999M

$1B to $4.99B

$5B or More

But they grow with a larger marketing budget


How Non-Working Spend Consumes Budgets (By Annual Marketing Budget)

Advertising Budget

Marketing Budget

Percent of budget consumed by non-working expenses

50
45
40
35
30
25
20

46%

43%
37%

38%

36%

15
10

17%

18%

20%

22%

27%

5
0

Source: Percolate

Less than $10M

$10M to $50M

$51M to $100M

$101M to $500M

Over $500M

How low can production costs get?


Non-working spend as a share of advertising budget vs. marketing budget
Average

High Performers*

Percent of budget consumed by non-working expenses

40
36
32
28
24
20

40%

16
12

24%
20%

8%

4
0

Source: Percolate

Non-working as a share of advertising budget

Non-working as a share of marketing budget


*High performers are respondents who disagreed that non-working spend
is too high, reported no growth in non-working spend levels in the past year,
and said they were confident in their ability to control non-working spend.

Marketing has a knowledge management problem


Rate your company on each marketing knowledge metric during the last 12 months (1 = Poor, 5 = Excellent)
Sharing valuable marketing knowledge

Developing and using customer insights

Average Rating

1
February 2011

Agust 2013

Source: The 2016 CMO Survey by the Fuqua School of Business at Duke University. Note: Question asked irregularly.

August 2014

February 2016

Is a shift to in-house creative agencies imminent?


How marketers expect assignments to shift to in-house agencies
Significant Shift
50

40

16%
4%

30

20

30%

28%

10

Source: RSW/US

Brand Marketers' Expectations

Agency Marketers' Expectations

Moderate Shift

Smart Tech and the Internet of Things

Globally, venture capitalists are optimistic about


IoT startups, as recent funding increases show. But
enterprises are still cautious about IoT for data
security reasons.

IoT startup funding has risen rapidly in the last five years
IoT Global Quarterly Financing History, Q110- Q315
Deals

Investment ($M)

65

64

54

43

63

54

44

42
38

$ Billions

65

37
34

33

22

23

28

26

25
21

30

29

26

$547

$151

$350

$301
$244
$184

$434

$428
$363

$163

$548

$479

21

$270

$626

$602

$262

$284

$277

$268
$199

$219

$165
$99

Q1'10

Q2'10

Source: CB Insights

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Enterprises are concerned about IoT data security and privacy


Top Enterprise IoT Security Concerns (Global)

Protecting sensitive data


generated by IoT Devices

Privacy Violations

Identifying which
data is sensitive

Priveleged user access to


IoT data and devices

Attacks on devices may


impact critical conditions
0

n = 1100
Source: Varmetric Data Threat Report, 2016

10

15

20

25

30

35

40

Not so fast: Wearables will depend on connectivity through 2020


Wearable devices with and without connectivity (millions)
Dependent wearables
700

41
560

420

601

280

140

3.2
97
0
Source: Cisco

2015

2020

Wearables with connectivity

Customer Experience

In the age of the hyperconnected consumer,


brands have to design customer experiences
that ensure they meet customer expectations
and provide a seamless experience on all channels.

Customer service: People still reach for the phone first


Customer Service Channel US Customers Use First for Urgent Issues (2015)

77%

2%

8%

8%

Social media

Email

Live chat

Source:North Ridge Group

Phone

Facebook is the go-to channel for customer complaints


Social media platform US consumers are most likely to use for customer service (2015)

29%

Facebook

Source NM Incite

13%

12%

Twitter

YouTube

Pricing, not advertising, influences purchase the most


Most important factors that influence US consumers purchase decisions (2014)

61%
36%

35%

31%

26%
6%

Sales/ competitive pricing

Source Accenture

Superior products

Superior customer experience

Loyalty programs

3%

Relevant promotions Engaging advertising campaign Celebrity endorsement

Percolate is The System of Record for Marketing.


Our technology helps the world's largest and fastest-growing
brands at every step of the marketing process.
Want to learn more?
Contact learn@percolate.com for more information
or request a demo today at percolate.com/request-demo

Mihika Barua
Mihika Barua is a member of Percolates Integrated
Marketing team. Her focus areas are content
marketing and social media management.

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