STEPHEN KRAUS - WINNING THE INTERNET: HOW THRIVING DIGITAL BRANDS USE MARKET INTELLIGENCE
- 1. How Thriving Digital Brands Use Market Intelligence Winning the Internet
- 2. ● The Digital Revolution and Market Intelligence ● Keys to Winning the Internet ● From Insight to ROI: Making Market Intelligence Work TODAY’S AGENDA © SimilarWeb, 2017 | 2 ○ Dancing with the Giants ○ Stop Flying Blind ○ Connecting with Millennials
- 3. In terms of the digital revolution, we are closer to the end of the beginning than to the beginning of the end. This is true for consumer behavior, and businesses strategy. “ © SimilarWeb, 2017 | 3
- 4. 50% Internet penetration reaches majority in 2017... still double-digit growth 5X Devices growing five times faster than people 50% Of Internet traffic is now mobile Time spent with digital (5.6 hours daily) Ecommerce (15% y-o-y growth) Digital ad spending (surpassed TV) GLOBALLY... IN THE U.S ... © SimilarWeb, 2017 | 4 “Digitally-Infused Lifestyles”: All Things Digital Continue To Grow
- 5. PwC's Global Data and Analytics Survey, "Big Decisions™," May 2016. 62% of executives still use experience and advice more than data to make decisions 3X Highly data-driven organizations are three times more likely to report significant improvement in decision-making © SimilarWeb, 2017 | 5 Market Intelligence Still in Its Infancy, Even with Demonstrated ROI
- 6. Why I Left a Market Research Giant for a Market Intelligence Startup 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Market Research Big data © SimilarWeb, 2017 | 6Source: Google Trends
- 7. Sources: AMA 2016 Gold Report; Research Rockstar Market Intelligence Is the Future “ The marketing research industry as we’ve known it for decades is disappearing… absorbed into a rapidly transforming collection of market intelligence sub-disciplines. Intelligence is hot. There are many job openings requiring skills related to business or market intelligence. Indeed, the debate… about ‘research’ versus ‘insights’ seems rather trivial when we consider the enormous employer demand for ‘intelligence.’ “ © SimilarWeb, 2017 | 7
- 8. The true measure of a CDO’s success is when the role becomes unnecessary: by its very nature, a high-functioning digital company does not need a CDO (however, it may want its former CDO to be the CEO). Of course, the vast majority of organizations are not yet at that point.” source: McKinsey • Digital market intelligence IS market intelligence • If you aren’t succeeding digitally, then you aren’t succeeding © SimilarWeb, 2017 | 8 Tech-Ubiquity Means: Digital Market Intelligence IS Market Intelligence “
- 9. A View Of Market Intelligence
- 10. The Requirements (and applications) of True Market Intelligence Find the rising tides • Market sizing • Market growth • Traffic & engagement Stop Flying Blind • Benchmarking • New entrants • Competitive strategy • Onsite search • “Not provided” keywords Data-Driven Growth • Customer journey • Growth strategies • Fighting the PPC wars • “Clickstream navigation” The Last Mile • Conversion • ROI calculation • Implementation & refinement © SimilarWeb, 2017 | 10 Global Granular Cross-platform Insightful Actionable Timely
- 11. Every Website Every Mobile App Ranking Engagement App Store Category Keywords Traffic Metrics Traffic Sources Audience Industry Content Provides Digital Insights for 190+ Countries & Territories ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ © SimilarWeb, 2017 | 11
- 12. Our Data: Multiple Sources at Massive Scale Google Analytics Adobe Analytics Google Play Store Apple App Store Data Collection Data Processing Calibration, Prediction Algorithms & Machine Learning PRO Digital Insights API Delivering Our Magic Global Panel Data Global ISP Data Public Data Sources Direct Measurement Data © SimilarWeb, 2017 | 12
- 13. Winning the Internet Dancing with the Giants
- 14. The Big Five, and the (Incredibly) Long Tail of the Digital World 16 B 14B 12B 10B 8B 6B 4B 2B 0B The long tail: Passion ~ Community ~ Conversion 57% of Top 100 traffic goes to the “Big 5” Average Monthly Visits (top 100 US sites) © SimilarWeb, 2017 | 14
- 15. Category Dominators Extending Their Lead, As #2 Players Fall Further Behind How far ahead is #1? © SimilarWeb, 2017 | 15Averaged across 25 categories. #1 player extending lead in 72% of categories +114% Feb 2016 +156% Sept 2017
- 16. © SimilarWeb, 2017 | 16 Optimizing Channels: Quantifying Cannibalization, Conversion & Overlap Overlap: ~10% consumers shopping on bose.com also shop for Bose products on Amazon within 24 hours Conversion: Consumers viewing on both sites 6X more likely to buy on Amazon
- 17. Ralph Lauren gets all traffic from their brand name As searches become more “generic,” Amazon gains share Amazon.comRalphlauren.com © SimilarWeb, 2017 | 17 Ralph Lauren Dances With the Giant Well, Although Growth Opportunities Remain
- 18. Business Intelligence Competitive Intelligence Market Intelligence+ = Winning the Internet Stop Flying Blind
- 19. In Isolation, All Growth Looks Good... © SimilarWeb, 2017 | 19 +67% Growth over two years Visits to tdameritrade.com
- 20. Benchmarking Is Crucial When A Rising Tide Lifts All Boats © SimilarWeb, 2017 | 20 Fidelity: +76% Vanguard: +114% Schwab: +75% TDAmeritrade: +67%
- 21. Food Delivery Apps: Treading Water Is Falling Behind © SimilarWeb, 2017 | 21 UberEATS Grubhub Postmates Food Delivery Current Installs: Google Play (U.S.)
- 22. Onsite > Traditional: The Paradigm Shift in Search & Discovery Rethink Amazon as channel, manufacturer, media brand and search engine ~15,000 Visits to Amazon from search traffic for “toilet paper” ~860,000 Searches for “toilet paper” within Amazon Source: SimilarWeb © SimilarWeb, 2017 | 22
- 23. Winning the Internet The Millennial Mindset
- 24. Source: U.S. Census Bureau; National Association of Realtors; NY Times The Millennial Wave Crests At Age 25… With Lifestage Changes on the Horizon Millionsofpeople Age Median age of first time home buyer Median age at first marriage Women ~ Men
- 25. Demographics • Diversity (cultural, family) • Education • Women’s influence • Urbanization; west/south Marketplace • Value-orientation • Experiences > Things • Smart is the new black • Trust in the wisdom of crowds Economic • Social & mobile tech • Fragile optimism • Stock market • Economic bifurcation The Millennial Generation Came of Age Amid Significant Social Change © SimilarWeb, 2017 | 25
- 26. CarGurus Rides The Millennial Wave Edmunds.com (12%) Cargurus.com (33%) KBB.com (16%) AutoTrader.com (17%) Cars.com (14%) edmunds.com (14%) cargurus.com (31%) kbb.com (17%) autotrader.com (17%) cars.com (14%) © SimilarWeb, 2017 | 26 UX & Channels Optimized for Millennials • Mobile: Lead vs. #2 much bigger in mobile than desktop (+23pp vs. +3pp) • Research: Make/model landing pages ranked by quality of “deal” • Value: Optimized for bottom-funnel value keywords (e.g., “used” & “cheap”)
- 27. What Brands Are Thriving in the “Millennial Young Adult” Market? Category #Winning Millennials Keys to Success Home design & decor Wayfair Value (average order: $258); free shipping Home services HomeAdvisor Strong matching; enhanced branding Pets Chewy Zappo’s-like service; non-slick video content Buzz Merchants Reddit, Quora Quality and quantity of info; expertise; unfiltered Coupons Slickdeals.net, RetailMeNot Community; wisdom of crowds transparency Streaming Hulu, STARZ Compelling content; appealing to cord-cutters Financial services NerdWallet, Betterment, Acorns Compelling content/calculators; SEO; robo-advisors
- 28. From Insights to ROI: Making Market Intelligence Work
- 29. Growth Strategies & Key Questions Beyond traffic Are you fully leveraging competitor, clickstream & conversion data? Dancing with giants Giants are pulling away amid “re-intermediation” – are you responding? Partnerships Are you maximizing reach? Incremental sales often outweigh cannibalization Onsite > organic Are you leveraging the paradigm shift search and product discovery? PPC Wars Brands are buying growth – are you spending enough to compete? SEO + PPC = SERP Are you strategizing for the entire page? © SimilarWeb, 2017 | 29
- 30. Market Intelligence Aligns the Organization Around a Shared Set of Insights Company Executives Strategic Planning Strategy Opportunity Identification Marketing Competitive & Market Research Sales Market Penetration Analysis Corp Dev Due Diligence Analytics/ Strategy Competitive & Market Research Performance SEO, SEM, Media Buying Content PR, Marcom, Social Affiliates & Partners Mining, Qualification, Tracking Account Management Client Research Sales & Lead Development Mining, Qualification, Categorization © SimilarWeb, 2017 | 30
- 31. Market Intelligence Success Requires Senior Management Buy-In, Integration © SimilarWeb, 2017 | 31 Category High-performing companies Low-performing companies #1 Success Driver Ensuring senior management involvement in data/analytics Designing organization structure to support data/analytic activities #2 Success Driver Designing effective data architecture/infrastructure Securing internal champions “Data are accessible across organization” 64% 33% “Have self-serve analytics capability” 52% 23%
- 32. Thank you! Stephen Kraus, Ph.D. Chief of Insights [email protected]