Performance marketing grew hugely in 2014, with key developments and ever increasing spend across all channels. The industry is constantly evolving, and we anticipate more big changes in the coming months. Here are our top five predictions for performance marketing in 2015.
1. Measuring the full omnichannel journey across all devices
Measuring the value of digital to in-store activity (and vice versa) continued to be a challenge in 2014, with many retailers still unable to attribute store sales at a channel or keyword level. Although progress has been made over the last two years to allow for retrospective analysis, this doesn’t solve the real challenge. Retailers will be looking to use insight gained from consumers’ previous actions and different touch points in order to determine which ads to serve to who and when. Retargeting providers will definitely be hoping to crack this in 2015.
2. Using margin to optimise the full media mix
Even for retailers who have separate budgets and targets at category level, COS, ROAS and ROI are beginning to be seen as blunt metrics. Using product level data allows for retailers to instead maximise revenues at the greatest margin. This will become increasingly important with the share of Google Shopping (PLAs) continuing to grow. This, in combination with customer lifetime value segments, should be a big factor in decisions about the level of investment and where budget should be allocated in 2015.
3. Increased investment into content
This isn’t a new trend, however the rising cost and competition in paid media and the role of content in driving SEO performance is placing more importance than ever on a good content strategy. One key aspect of this will be proving the value of increasing content; measurement of this will be more than just how the content has improved rankings and last click revenue. Much of the content produced by retailers today helps to ensure there is a conversation all the way through the journey from awareness to purchase, and that the brand is always in the mind of the customer. We believe that retailers should be aiming to become publishers of thought leading content. This is definitely where many are heading, including Selfridges, ASOS, Ikea and Net a Porter.
4. Greater investment across Social Media as part of a retailer’s customer relationship management program
Reliance on email as part of the mix will continue to slowly dwindle in 2015. Resources will be placed on developing the communication strategy across owned and earned social media, and building a customer base outside of the website should be viewed as a positive development. Retailers will work to build a cohesive plan to join up content within their content hub and social inspiration centre – Wiggle do this extremely well with their Social Hub. Usage of highly targeted paid social will be crucial for accelerating the growth of the follower base in 2015.
5. More inhouse delivery teams
The role of a digital agency will continue to evolve in 2015. Digital is growing up and so are the people that have ridden the wave of change for the past 14+ years. The market is now saturated with ‘digital experts’, and it is likely that retailers will shift their reliance on agencies to focus on specialist expertise and consultancy rather than the practical elements that in house teams can bring. More retailers will move to this model in 2015 however this will not be a seismic shift as it is unlikely to be the right move for every team.
Stay tuned to our blog over coming months to find out about big industry developments as they happen, and check in with us this time next year to find out what changes we have witnessed and what we hope to see in 2016 and beyond. If you have any questions or would like to know about how we can help you make more money online in 2015 please contact Dave Trolle on (01482) 876876.