Analysis: A disruptive influence

New technologies are threatening to disrupt traditional digital marketing methods by targeting consumer more accurately. So what’s in store for 2016?

In a constantly changing digital landscape, new technologies continue to disrupt traditional marketing methods and keep marketers on their toes. According to Mondo’s The Future of Digital Marketing survey, in 2016 over 50% of all digital marketing hires will have a technical background.

Mondo’s report also found that marketers allocate an average of one-third of their budgets to social and digital marketing while marketing technology budgets are expected to surpass IT technology budgets in 2017. This emphasises the central role of technology in today’s digital marketing strategies. The influx of new technologies means that companies are shifting away from traditional marketing methods towards more personal and targeted campaigns.

“These new technologies are allowing brands and companies to move away from the standard marketing methods that would often involve pushing out generic and sometimes irrelevant messages to the wider market and hoping that something sticks,” says Phil Foster, managing director at Love Energy Savings. “Instead, our increased connectivity allows for brands to harness big data which, as a result, will lead to more relevant, more focused and contextualised marketing.” So which technologies are on the rise and what should we be looking out for in 2016?

Internet of Things (IoT)
The concept of the Internet of Things (IoT) is a world where everything is connected so any device with an on and off switch can be connected to the internet and/or to each other. From mobile phones, washing machines and coffee machines to wearables and machine components, IoT has a far reaching trajectory.

In marketing terms, the ability to increase the number of touchpoints with consumers and businesses means more opportunities to interact with customers by digital means. Sky Betting and Gaming’s Timo York, head of product – core customer platform, expects to see more interactive outdoor advertising next year and a change in the way IoT data is used. “Think of the opportunities associated with knowing my health stats but also knowing what is and is not in my fridge at any given time,” he says.

Edison’s media analyst Fiona Orford-Williams also highlights the importance of data collection through IoT. “With IoT, the value is that you’re picking up data from people as they go about their business. We’re talking about things you interact with, are connected to or collecting data as you go about your day. Unless that can be pulled together and connected it’s not of actionable value,” she says. “We really need to focus on connecting data and using it to help leverage those brands on those touchpoints.”

Augmented reality
New forms of technology are opening up a whole new realm of opportunities for marketers, says Foster, allowing companies to personalise their marketing to each individual person. “Augmented and virtual reality technology will make the process of purchasing a product or service much easier, faster and more convenient for the customer. For example, it could allow people to test drive a car without leaving the showroom or try on an outfit without touching the clothes,” he says.

Not to be confused with virtual reality (VR), augmented reality (AR) layers digital information over real-world objects using descriptive text, graphics, images, audio and video. It provides opportunities for marketers to create unique promotions, for instance Disney has released a Star Wars app for its latest film containing augmented reality features such as projected character images and a mini-game. AR allows marketers to interact with their customers as opposed to simply pushing branding messages to them. It can also add value to the customer experience.

As well as expecting the continued growth of social media and the use of live video streaming apps like Periscope and Meerkat, Foster also stresses the increasing role that VR tech will play in the future. “2016 will be the year when the gap between the digital and physical worlds is bridged as companies like Facebook and Microsoſt bring their virtual reality headsets to life,” he says. “Technology such as this will enrich people’s real-world experiences, as well as delivering much more value on a whole new level.”

Wear next?
Aſter the launch last year of Apple Watch – one of the best-selling wearables globally – it was pipped to the top-selling spot by Fitbit, famous for its activity trackers and WiFi-enabled wearable technology. Wearables open up marketing opportunities for brands to access customer data from the source as well as the screen itself offering scope for more advertising and promotions. According to Gartner, wearables for fitness and health alone will reach $5bn in devices, apps and services in 2016.

Gwen Andrieux, CEO of Dice London, believes wearables are set to make their mark on campaigns. “These ‘on the go’ devices could have huge implications for traditional marketing methods in that they’re all collecting a massive amount of data,” he says. “Once advertisers are able to properly process this information it can be much easier to prove the relative successes, or failures, of digital campaigns in comparison to traditional forms of marketing such as TV, which is very difficult to track.”

New technologies such as Apple Watch open up new ways to interact, says York. “The smartwatch has great potential as a contextually aware interface through which brands can discreetly communicate and interact with consumers,” he comments.

Wearables have also been a good source of information on behavioural patterns and can have an impact as long as there is enough added value for people to interact with. “We just need them to be integrated and less disruptive,” Orford-Williams points out. “Smartwatches and wearables have to provide a benefit to the user otherwise the take up just won’t be there. If they are just passive trackers then people won’t want to pay for them.”

The role of data
When it comes to new technologies, the collection of data is key, stresses Orford-Williams. “The real value is the information [the technology] gives you back. People’s route to purchase is no longer a straight line; it’s more like a ball on a pinball table. You need to be on as many of those touchpoints as you can if you’re going to direct the consumer to what you want to do,” she explains.

For egaming, technological development and new marketing techniques are sure to open up a whole world of possibilities for marketing to new and existing customers. Egaming companies can use these new technology trends effectively in their marketing campaigns as long as engagement is kept front of mind.

“These new tech trends like virtual reality as well as other forms of video such as Facebook’s recently launched 360 mean egaming companies have to create thoroughly engaging campaigns to appeal to their target audience. More and more companies are putting resources into creating innovative marketing campaigns, such as Star Wars: The Force Awakens, where users can pilot through part of the Star Wars universe. It helps to fully immerse the user in the game and as such an emotional attachment is founded,” says Andrieux.

Orford-Williams feels that the egaming sector is on the right track in harnessing the power of tech in its marketing strategies. “The big difference with gaming is the ‘know your customer’ requirements. You are steps ahead in understanding customers’ behavioural patterns,” she says.

For 2016, it’s likely we will see marketers placing greater emphasis on brand building and strengthening customer relationships. Using data to provide a personalised and targeted campaign is key while also being mindful not to breach the trust of your consumers. No doubt the future involves more dynamic and portable marketing that is sure to follow you around wherever you go.