The Mobile Era
Utilization of digital applications, web/internet, and other innovative technology has been a growing phenomenon in the marketing department. I personally had the opportunity to experience a summer of paid digital marketing internship in a firm called Exidea (http://exidea.co.jp/) in Tokyo, Japan from June-August 2015, and can vouch (for what its worth) the increase in demand for further implementation of “tech” in the marketing field is unparalleled.
Being taught the importance of digital marketing by Tim Goudie(left) at the Click Z Live event in Central Hong Kong
Tim Goudie: Social Media Director, Sustainability for the Coca Cola Company
*This article will be a 3 part article.
Important Vocabularies
- Tech-In this article, tech will be the short term for technology. This term will infer to modern methods, innovative creativity and actual technology. (i.e. internet, mobile smart phone, web design application)
Abstract Introduction
Part 1 will be the informative introduction to marketing. This section will establish the fact that marketing is currently undergoing significant growth/innovation through the integration of technology. Part 1 will institute in detail the standard of norm for modern marketing as well as introduce research results on to what extent “Marketing” has accumulated growth in the category of tech marketing.
Part 1
$15 BILLION. According to the IAB, the 3rd Quarter revenue for U.S. internet advertising as of December 10, 2015 was at a record breaking $15 billion USD. This is the highest recorded quarter ever and the figure marks a significant 23% uptick over the Q3 from 2014 which was at $12.2 billion USD.
To better put this sum to perspective, Jannet Fowler’s article on Investopedia in 2012 serves as an interesting source. Fowler shared with the readers 7 companies that were predominant in their marketing image and the budget each company spent respectively (all in the billions) in advertisement for the year 2011.
- Procter&Gamble: $2.95 billion
- L’Oreal: $1.34 billion
- General Motors: $1.78 billion
- Chrysler: $1.19 billion
- Verizon: $1.64 billion
- Time Warner: $1.28 billion
- Pfizer: $1.2 billion
This sums up to $11.38 billion, which is still nearly $4 billion short of what was spent on internet advertisement just 4 years later!
As evident in above case, tech has gained (and is continuing to grow as) substantial priority to marketer on a globally dynamic spectrum.
The most basic component of this tech marketing is the internet. The internet is arguably mankind’s greatest innovation in the 21st century. The phenomenon in the rise of online shopping web entities such as Amazon.com and Ebay.com signifies the role of internet in modern marketing. Online shopping sales total has also increased annually and in 2015 the total sales has reached +$300 billion. The internet is not just a new dimension to mankind anymore. It has become a part of a consumer’s daily life and is the foundation of successful marketing.
A statistical argument often heard during this topic (online vs in-store shopping), is the fact that a significant percentage of consumers still purchase merchandise in a physical store. *PricewaterhouseCoopers also publicized a research result that supported this argument by recording that compared to 40% of consumers who purchase in store, only 27% of consumers purchase online. However, nearly 75% of those surveyed (19,000 consumers worldwide) by PwC also claimed that the online marketing lead to the purchase in store. **eMarketer also projected that consumers worldwide will spend a total of nearly $1.672 trillion in online transaction. This figure represents approximately 7% of overall global retail sales, which is projected to be $22.822 trillion. Additionally, eMarketer projects online purchase to increase by over double to $3.551 trillion, a revenue of +12% of total retail sales of (projected) $28.55 trillion, through the increased access to the online world.
*PricewaterhouseCoopers is a multinational professional services network headquartered in London, United Kingdom. It is the largest professional services firm in the world, and is one of the Big Four auditors, along with Deloitte, EY and KPMG.
**eMarketer is an independent market research company that provides insights and trends related to digital marketing, media and commerce. eMarketer, founded in 1996, is located in New York, NY. Its clients include two-thirds of Fortune 500 companies.
Two essential modern marketing (message) receiver tool (message receiver) is the Personal Computer and tablets/smart phones. These two items revolutionized marketing on multiple levels. ***Foundation Capital estimates that the spending budget on tech marketing will reach $120 billion in investment. Many fintech applications as well as mobile based market tools have revolutionized the way of business. Airbnb and Uber are recent examples that incorporate the new mobile dimension to connect business and clients on a personal level. Both application allows for any individual to sign up to be qualified as an employee to generate revenue. The system of how business is conducted is unique, but through the integration of technology in modern marketing has allowed for such businesses to experience a revolutionary success.
***Foundation Capital is a venture capital firm located in Silicon Valley. The firm was founded in 1995, and manages more than $2.4 billion in investment capital.
Social media is also a critical factor in the tech market game.While only 4% of U.S. consumers purchased items via social media, statistics show that 36% (over 1/3) credited the interaction with brands on social media as the decision factor into purchase.
While there this is an excerpt of the research results on how much impact technology has on modern marketing, it suffices as adequate proof for the argument. I hope that Part 1 was able to establish the importance of tech marketing as well as to what caliber this innovative method of marketing has grown into .
References
Clancy, H. (2015, October 07). 5 reasons marketing tech spending will reach $120 billion by 2025. Retrieved April 11, 2016, from http://fortune.com/2015/10/07/marketing-technology-budgets/?iid=sr-link1
Smith, J. (2015, December 29). Here’s how marketers are using different mobile technologies to reach consumers. Retrieved April 11, 2016, from http://www.businessinsider.com/the-mobile-marketing-report-how-marketers-are-reaching-consumers
Young, Sarah. “Mobile Technology and Targeted Marketing Barge in on Holidays.” Business Insider. Business Insider, Inc, 02 Nov. 2015. Web. 11 Apr. 2016.
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