tag:econsultancy.com,2008:/topics/financing Latest Financing content from Econsultancy 2018-03-16T13:21:37+00:00 tag:econsultancy.com,2008:BlogPost/69879 2018-03-16T13:21:37+00:00 2018-03-16T13:21:37+00:00 The best digital marketing stats we’ve seen this week Nikki Gilliland <p>Now, let's hop to it.</p> <h3>Marketers say 26% of their budget will be wasted in 2018</h3> <p>A <a href="https://rakutenmarketing.com/en-uk/what-marketers-want-2018" target="_blank">new study</a> by Rakuten - which is taken from a survey of over 1,000 marketers from the US, UK, France, Germany and Asia-Pacific (APAC) regions - has revealed that marketers will waste on average 26% of their budget in 2018 on the wrong channels or strategies.</p> <p>From its analysis, Rakuten has also identified four key profiles of UK marketers. First, 12% of marketers are defined as ‘architects’ - experienced data analysts who predict 18% of total budget will be wasted. In contrast, 49% of UK marketers are known as ‘advancers’ – this group chases new channels and outlets for campaigns, with 36% actively looking to invest in voice and 28% pursuing VR.</p> <p>Meanwhile, Rakuten suggests that 31% of UK marketers are ‘advocates’ - old school networkers, of which 56% are planning investment in video but just 5% have still have faith in influencers. Lastly, 9% of UK marketers are ‘adapters’ – marketing optimisation specialists, who strive to keep campaigns constant throughout the year.</p> <p><img src="https://assets.econsultancy.com/images/0009/2999/Rakuten.JPG" alt="" width="780" height="316"></p> <h3>Mobile devices responsible for 60% of all video views worldwide</h3> <p>According to Ooyala’s latest <a href="https://www.businesswire.com/news/home/20180314005323/en/Ooyala-Finds-People-Click-%E2%80%9CPlay%E2%80%9D-Mobile-Video" target="_blank">Global Video Index Report</a>, mobile video plays reached 60% globally for the first time in the fourth quarter of 2017, garnering a 60.3% share of all video starts.</p> <p>The report also states that Europe, Middle East and Africa (EMEA) saw the greatest level of engagement at 63.5%. Meanwhile, North America saw 57.6% engagement, despite also seeing mobile video jump 11% from Q4 2016.</p> <p>Alongside this increase in mobile video viewing, there has also been a significant growth in mobile advertising. Ooyala also states that smartphones topped PCs for the percentage of pre-roll ad impressions shown on broadcaster platforms (55% vs. 36%). </p> <p><img src="https://assets.econsultancy.com/images/0009/3005/mobile_video.jpg" alt="" width="550" height="343"></p> <p><strong>More on video trends:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/69094-five-examples-of-brands-using-interactive-video" target="_blank">Five examples of brands using interactive video</a></li> <li><a href="https://www.econsultancy.com/blog/69387-six-ways-boring-b2b-brands-stole-a-social-video-from-b2c" target="_blank">Six ways ‘boring’ B2B brands stole A+ social video from B2C</a></li> <li><a href="https://www.econsultancy.com/blog/69417-four-ways-marketers-can-increase-conversions-from-social-video" target="_blank">Four ways marketers can increase conversions from social video</a></li> </ul> <h3>Snapchat users 300% more likely to shop on mobile</h3> <p>Criteo’s <a href="https://www.criteo.com/wp-content/uploads/2018/03/Criteo-UK-Commerce-Marketing-Forum.pdf" target="_blank">latest report</a> has revealed a link between social media platforms and consumers’ willingness to shop via mobile. </p> <p>From a survey of 2,000 UK consumers, it found that Snapchat users are up to 300% more likely to buy items on their phone compared to the average Brit. That’s not all, as they are also said to spend more – 33% of Snapchat users say they are happy to spend over £100 when shopping on mobile.</p> <p>Perhaps it’s more to do with Snapchat’s younger demographic rather than any direct link to the platform itself. The report also suggests that one in five 25 to 34 year olds are happy to spend more than £250 on their smartphone. Meanwhile, 6% of the population overall prefer shopping on their smartphone.</p> <p>Lastly, it appears younger consumers are even more spend-happy. Criteo states that one in ten 18 to 24-year olds would purchase a car on their smartphone, while one in ten 18 to 34 year olds prefer to book flights on their mobile rather than desktop. </p> <p><img src="https://assets.econsultancy.com/images/0009/2998/Criteo.JPG" alt=""></p> <p><strong>More on mobile commerce:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/69858-a-ux-review-of-etsy-the-most-user-friendly-mobile-website-according-to-google/" target="_blank">A UX review of Etsy, the most user-friendly mobile website according to Google</a></li> <li><a href="https://econsultancy.com/blog/69589-are-retail-brands-ditching-mobile-apps-a-look-at-some-stats-case-studies/" target="_blank">Are retail brands ditching mobile apps? A look at some stats &amp; case studies</a></li> </ul> <h3>B2B marketers still unprepared for GDPR</h3> <p>It seems a day can’t go by without another GDPR-related survey (of course, Econsultancy has the definitive <a href="https://www.econsultancy.com/reports/a-marketer-s-guide-to-the-general-data-protection-regulation-gdpr">guide for marketers</a>). This one comes from Forrester, which surveyed 66 US marketing professionals for its <a href="https://www.forrester.com/report/The+GDPR+And+The+B2B+Marketer/-/E-RES142171?utm_source=blog&amp;utm_campaign=research_social&amp;utm_content=wizdo_142171" target="_blank">latest report</a> on the topic.</p> <p>The poll revealed that just 15% of B2B marketers believe they are fully compliant with the new regulations, while 18% are still unsure what needs to be done. </p> <p>Even though GDPR applies to any global marketer that collects data from EU citizens, many are still wrongly under the impression that the new rules do not apply to businesses with headquarters outside of Europe. </p> <p>It’s not all doom and gloom, however. Forrester also found that 39% of US marketers plan to be compliant within 12 months, while another 23% are at least partially compliant already.</p> <p><img src="https://assets.econsultancy.com/images/0009/3006/GDPR.jpg" alt="" width="550" height="366"></p> <p><strong>You'll find all the GDPR information you need <a href="https://www.econsultancy.com/blog/69825-all-the-gdpr-resources-marketers-need-in-one-place" target="_blank">right here</a>.</strong></p> <h3>Data protection is the key to consumer trust</h3> <p>In other data news, a report by the MRS Delphi group has revealed that data security is the first and most important <a href="https://www.mrs.org.uk/campaign/video/greatexpectations?MKTG=TRUST" target="_blank">driver of trust</a> in brands. </p> <p>From a survey of over 1,000 UK consumers, it found that respondents placed data security at number one for trust in six of seven sectors. Meanwhile, good customer service was ranked as the third biggest driver of trust, and brands “doing what they say” was ranked second. In all, three of the top five trust-drivers were related to data.</p> <p>Interestingly, respondents cited Amazon as their number one trusted brand, despite the retailer heavily relying on consumer data. However, its level of transparency, and the value exchange it provides is clearly enough to reassure customers and inspire loyalty.</p> <p><strong>More on consumer trust:</strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/69446-how-can-brands-combat-a-lack-of-consumer-trust" target="_blank">How can brands combat a lack of consumer trust?</a></li> <li><a href="https://www.econsultancy.com/blog/69489-the-changing-face-of-consumer-trust-and-the-implications-for-marketers" target="_blank">The changing face of consumer trust and the implications for marketers</a></li> <li><a href="https://econsultancy.com/blog/69643-four-key-traits-of-human-brands" target="_blank">Four key traits of ‘human’ brands</a></li> </ul> <h3>Digital ads found to raise brand awareness</h3> <p>In a bid to understand the level of effectiveness of digital display advertising campaigns, IAB UK studied the results of 675 individual campaigns from 2008 through to 2017.</p> <p>It measured the effectiveness for four main marketing objectives – awareness, brand perception, education, and sales intent across each campaign. </p> <p>Analysis proved that digital display advertising is effective across all metrics, raising brand awareness by up to 12%, positively shifting brand perceptions by 2%, educating people about a brand by 2%, and driving purchase intent by 3%. </p> <p>Interestingly, some campaigns were found to increase brand metrics by as much as 55%, showing the huge opportunity digital display ads can provide. </p> <p><strong>More on digital ads:</strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/69531-direct-ad-buys-are-back-in-fashion-as-programmatic-declines" target="_blank">Direct ad buys are back in fashion as programmatic declines</a></li> <li><a href="https://econsultancy.com/blog/68901-top-tips-to-drive-more-engagement-with-data-driven-native-ads" target="_blank">Top tips to drive more engagement with data-driven native ads</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69331 2017-08-11T14:16:13+01:00 2017-08-11T14:16:13+01:00 10 stupendous digital marketing stats we’ve seen this week Nikki Gilliland <h3>Revenue from affiliate marketing increases 16% YoY</h3> <p style="font-weight: normal;"><a href="http://info.conversantmedia.eu/download-the-cj-affiliate-holiday-report" target="_blank">CJ Affiliate</a> has revealed that revenue from affiliate marketing within global publishers and advertisers increased by 16% year-on-year in November/December 2016, with an average 4% increase in the number of orders.</p> <p style="font-weight: normal;">The US market saw revenue growth of 16%, partly due to strong growth in overall basket value. The UK market experienced the strongest year-on-year growth in orders, with a 12% increase.</p> <p style="font-weight: normal;">In the UK, Black Friday and Cyber Monday saw levels of shopping demand to rival the US, with growth in orders increasing by 76% on Cyber Monday. The fact that UK retailers prepared for the holiday season earlier than in other markets also resulted in a stronger start to sales.</p> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0008/8212/CJ_Affiliate.JPG" alt="" width="697" height="536"></p> <h3>Thursday at 4pm found to be the ideal time to send an email</h3> <p style="font-weight: normal;">In order to find out the worst and best times to send emails, <a href="https://www.getresponse.com/resources/reports/email-marketing-benchmarks.html" target="_blank">GetResponse</a> has analysed almost 2bn emails in 126 countries and across 19 industries.</p> <p style="font-weight: normal;">It found Thursday to be the best day, with emails shared seeing a 23.13% open rate and a 3.52% click through rate – the highest of any day of the week. Interestingly, it noted that the most emails are currently sent on Wednesday.</p> <p style="font-weight: normal;">4pm is apparently the best time of day to send emails, as messages sent at this time drove an open rate of 25.13% and a click-through rate of 3.82% - higher than any other time.</p> <h3>20% of global commercial email fails to reach the inbox</h3> <p style="font-weight: normal;">In other email-related news, Return Path’s <a href="https://returnpath.com/downloads/2017-deliverability-benchmark-report/?sfdc=70137000000EUhC" target="_blank">2017 Deliverability Benchmark Report</a> has revealed that 20% of all commercial email is still being diverted to spam folders or being blocked.</p> <p style="font-weight: normal;">While deliverability has improved slightly on last year’s global rate of 79%, it means that a significant amount is still missing the mark. </p> <p style="font-weight: normal;">The US saw the lowest inbox placement of any country, with just 77% of messages reaching inboxes, while Canadian marketers achieved one of the highest inbox placement rates in this study, seeing an average of 90%.</p> <p style="font-weight: normal;">Marketers in Europe generally exceeded the global inbox placement rate, with averages of 82% in France and Spain and 84% in the UK. </p> <h3>Half of firms avoid investing in new sales tech because of cost</h3> <p style="font-weight: normal;">A new study by <a href="https://files.sugarcrm.com/resources/analyst-reports/2017-SalesTech-Survey-Report.pdf" target="_blank">CITE Research</a> has found that 48% of businesses are putting off investing in technology for their sales teams because of concerns over cost.</p> <p style="font-weight: normal;">While 63% of UK companies still spend at least £1,200 on tech annually per sales employee – equipping them with technology like smart phones, laptops, CRM systems - 34% of respondents admit to being worried about the complexity of introducing new tech systems, and 20% are concerned about a lack of skills in using the tools.</p> <p style="font-weight: normal;">Sixty three percent of firms are also worried about the cost and effort needed to keep systems up to date, while 69% are concerned about the need for training staff.</p> <p style="font-weight: normal;"><em>"Why are you not yet using new technologies for your sales team?"</em></p> <p style="font-weight: normal;"><em><img src="https://assets.econsultancy.com/images/0008/8211/Why_aren_t_you_investing_in_tech.JPG" alt="" width="730" height="373"></em></p> <h3>Mobile traffic to ecommerce sites grows 23% YoY</h3> <p style="font-weight: normal;"><a href="https://www.demandware.com/shopping-index/" target="_blank">Salesforce’s Q2 17 Shopping Index</a> has highlighted how mobile continues to be a disruptive force in ecommerce, with the news that the global mobile traffic share has jumped 23% year-on-year to reach 57%. </p> <p style="font-weight: normal;">In the UK, mobile phones saw the biggest increase in buying intent (buyers as opposed to 'active shoppers') with a growth of 48% year-on-year. </p> <p style="font-weight: normal;">Eight percent of UK mobile traffic was driven solely by social apps such as Snapchat and Instagram – which is more than any other country globally.</p> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0008/8214/Global_buying_intent.JPG" alt="" width="760" height="321"></p> <h3>Marketers are failing to keep up with offline consumer needs</h3> <p style="font-weight: normal;">A survey of 153 senior marketers by CMO Council found that just 16% believe they are responsive to consumer needs outside of the digital space. </p> <p style="font-weight: normal;">Less than one in five participants say they can make rapid alterations to products, experiences, services, and packaging based on demands.</p> <p style="font-weight: normal;">However, insight suggests that this is due to the increasingly focus placed on the digital realm, where 43% of brands saying they can respond to customer feedback about marketing campaigns in less than 24 hours online. </p> <h3>Brits spend over a quarter of time online on Facebook and Google</h3> <p>Verto Analytics has revealed that Google and Facebook account for one of every three and a half minutes Brits spend online. </p> <p>Analysis shows that British adults spend a total of 42.7m days a month across Google channels – including search, YouTube and Gmail – which is the equivalent of 17% of total UK internet time. </p> <p>Meanwhile, around 11% of time (or 28.4 million days) is spent on Facebook-owned platforms including WhatsApp and Instagram.</p> <p><img src="https://assets.econsultancy.com/images/0008/8210/Table_-_dominant_parent_co_s_by_time.PNG" alt="" width="511" height="534"></p> <h3>Brands are failing to reach women online</h3> <p>From analysis of 60,000 campaigns across 20 countries, <a href="http://www.nielsen.com/uk/en/insights/reports/2017/digital-ad-ratings-benchmarks-and-findings.html" target="_blank">Nielsen</a> has found that only half of UK online ad impressions targeting women actually reach them. </p> <p>In contrast, Nielsen noted a 62% success rate for campaigns targeting men. Just 22% of ad impressions reached women aged 18 to 34 compared with 33% reaching men of the same age.</p> <p>The overall hit rate for women in Europe is even lower than the UK, coming in at 46%. Just 45% of ad impressions reached women in Germany, and 49% in France.</p> <h3>Nine in 10 of Mum’s favourite sites offer poor mobile UX</h3> <p>There are nearly three million millennial mums in the UK, however new research by Equimedia has shown that many baby and parenting retailers are failing to deliver a positive mobile experience. This comes despite the fact that 94% of millennial mums are said to browse online primarily using their mobile.</p> <p>Equimedia found that 91% of the brand websites handpicked by mothers have poor mobile site speeds. What’s more, only two of the top brands listed in Babycentre’s recommended products list achieved a ‘good’ rating on mobile.</p> <p>With 40% of mums saying they would abandon a site if it takes more than three seconds to load – retailers are risking losing out on this valuable demographic.</p> <h3>Summer holidays sparks download surge on Amazon</h3> <p>School’s out for summer in Britain, which means many people are turning to Amazon to cure their August boredom.</p> <p>Hitwise has found that a massive 14.7m transactions took place on Amazon’s site last week – mirroring the number of transactions made during Prime Day. Meanwhile, there was a 13% increase in visits to Netflix.com from the weekend to Wednesday, and an 8% increase in visits to BBC’s iPlayer.</p> <p>Thankfully, it appears Brits aren’t just spending their summer glued to the telly – three of the top search terms across the whole of Amazon includes ‘books’ and ‘kindle books’.</p> <p><img src="https://assets.econsultancy.com/images/0008/8213/Hitwise_Amazon.JPG" alt="" width="648" height="200"></p> tag:econsultancy.com,2008:BlogPost/69236 2017-07-07T12:40:12+01:00 2017-07-07T12:40:12+01:00 10 superior digital marketing stats from this week Nikki Gilliland <p>On we go...</p> <h3>Mobile shopping ads presents growth opportunity for retailers</h3> <p>According to a new report by <a href="http://www.foundit.com/blog/mobile-shopping-search-retailers-biggest-opportunity-improve/" target="_blank">Foundit</a>, mobile clicks on Google Shopping ads represent the largest single source of visitors for online retailers, accounting for nearly 25% of all sessions across direct, paid and shopping search traffic.</p> <p>However, the report – which reviewed over 60m shopping sessions across leading retailers – also states that search is the worst channel for bounce rate, with users typically viewing just two and half pages before quitting.</p> <p>In terms of the difference in bounce rates between Google shopping on mobile and desktop, just 27% of sessions browse past the first page, compared with 38% on desktop. </p> <p><img src="https://assets.econsultancy.com/images/0008/7342/foundit.JPG" alt="" width="706" height="318"></p> <h3>TV sponsorship increases positive brand associations</h3> <p>According to a study by Thinkbox, brands that sponsor TV shows are able to improve brand health metrics – mainly thanks to the strong affinities viewers have with their favourite programs.</p> <p>Research found that there was a 53% increase in ‘personality fit’ between viewers of a TV show and the sponsoring brand when compared to non-viewers. In turn, viewers were far more likely to recommend the brand than those that didn’t watch the TV show. </p> <p>Meanwhile, when the sponsorship creative was a natural fit with the program, key brand health metrics for viewers were 5% higher than for non-viewers. </p> <h3>UK shoppers buy from just three online stores</h3> <p>According to a YouGov poll commissioned by Apptus, online fashion retailers are struggling to attract new and loyal customers.</p> <p>In a survey of over 1,500 online shoppers, 62% of people were found to have a core group of favourite online retail stores – a figure that rises to 68% for women.</p> <p>Interestingly, younger shoppers appear more likely to stick to a narrow selection of sites, with 78% of 18-24 year olds and 70% of 25-34s staying loyal to a select few retailers.</p> <p>In order to tempt them away from their favourites, 66% of shoppers said that other retailers should offer greater value for money, while 48% said they should make it easy to find products they are looking for. In contrast, just 4% pointed to ‘lifestyle content’ as a means of grabbing their attention and building loyalty.</p> <p><img src="https://assets.econsultancy.com/images/0008/7346/online_payments.jpg" alt="" width="718" height="487"></p> <h3>North Dakota named the best US state to start a business</h3> <p><a href="https://wallethub.com/edu/best-states-to-start-a-business/36934/" target="_blank">WalletHub</a> has compared 50 US states across 20 key indicators to determine where startup businesses are most likely to succeed.</p> <p>It found New Jersey to be the worst, mainly due to high office space and labour costs as well as inaccessible financing.</p> <p>On the flip side, North Dakota was ranked the best, seeing the highest average growth in small businesses. The state also has the most startups per 100,000 residents – three times more than West Virginia, the state with the fewest.</p> <p><img src="https://assets.econsultancy.com/images/0008/7341/Start-ups_US.JPG" alt="" width="780" height="311"></p> <h3>75% of users are searching on mobile more often due to voice technology</h3> <p>New research from Google shows that voice search is influencing user behaviour, with 75% of consumers saying that they now search on their mobiles more often because of the technology.  </p> <p>People who started using voice search in the last six months are said to be the most frequent users, with 42% now using it daily. In comparison, just 25% of people who started using voice search over four years ago use it as frequently.</p> <p>The research also found that both visual and text search remain popular, with 51% of respondents using the two interchangeably.</p> <h3>Cyber-attacks on UK businesses increase 52% in Q2</h3> <p>A new report by Beaming suggests that the number of cyber-attacks aimed at UK-based businesses increased by more than half in Q2 2017. This means that businesses saw almost 65,000 attacks in just three months – an increase of 52% from the previous quarter.</p> <p>68% of attacks targeted connected devices such as networked security cameras and building control systems. However, there was also a marked increase in attacks on company databases, with businesses experiencing an average of 105 attempts per day compared to just 14 in the first quarter.</p> <p><img src="https://assets.econsultancy.com/images/0008/7340/Cyber_attacks_UK.JPG" alt="" width="780" height="192"></p> <h3>Mobile traffic at an all-time high across Europe</h3> <p>A new <a href="https://www.slideshare.net/adobe/adi-2016-europe-best-of-the-best" target="_blank">report from Adobe</a> – which includes analysis of the top 20% of companies using Adobe Experience Cloud and a survey of over 5,000 consumers across Europe – suggests mobile traffic is increasing across Europe.</p> <p>It states that smartphones accounted for 31% of all European web visits in 2016 – an increase from 22% in 2015. In comparison, desktop accounted for 58% of browser traffic - down from 65% in 2015. For the top-performing companies, 41% of web traffic came from a smartphone in 2016, up from just 31% the previous year. </p> <p>Meanwhile, the report found that consumer expectations are driving mobile usage, with 57% preferring to use a smartphone over another device when completing tasks in 2016 – up from 51% in 2015.</p> <h3>Shoppers’ dual-screening habits present big opportunities for retailers</h3> <p>Data from eBay has revealed there was a huge spike in consumer spending during last summer’s sporting events, indicating the potential for retailers to tap into dual screening behaviour.</p> <p>On the final day of the Tour de France last year, searches for ‘Pinarello’ – the bike that Chris Froome rode – rose by 62% on eBay.co.uk. Meanwhile, searches for ‘cycling shorts’ and ‘road bike’ increased by 46% and 71% respectively.</p> <p>Similarly, in the two weeks of the Rio Olympic Games, searches for ‘running shoes’ rose by 66%, and interest in running watches jumped by 113%.</p> <h3>Uber gains more customers than any other US company in the past year</h3> <p>Despite the series of scandals that have plagued the company in the past year or so, Uber has made the largest customer gains since the first half of 2016. </p> <p>26% of all US millennials are said to have recently used the service, which has increased its <a href="http://www.brandindex.com/article/ride-sharing-brands-top-biggest-millennial-customer-gains-over-last-year" target="_blank">Adobe BrandIndex</a> ‘current customer score’ by 8.2 points.</p> <p>Other companies in the sharing economy have also grown, with Lyft – Uber’s biggest US rival – becoming the third biggest gainer, and Airbnb coming 12th in this list.</p> <p><img src="https://assets.econsultancy.com/images/0008/7343/uber.jpg" alt="" width="724" height="483"></p> <h3>Online consumers desire security over transaction speed</h3> <p><a href="https://mypinpad.com/consumer-trust-report/" target="_blank">New research</a> suggests that retailers who favour speed and convenience over security measures could be losing customer trust. This is because 67% of consumers surveyed said they are concerned about their online banking and shopping security, with one in four respondents being ‘very concerned’.</p> <p>In order to improve levels of trust, retailers must implement greater transparency around security practices, as well as increased security steps. </p> <p>40% of respondents said they would like to use cardholder PIN to authenticate online transactions, while 50% would like to use a combination of both PIN and biometrics. Only 2% of consumers believe transaction speed is more important than security.</p> tag:econsultancy.com,2008:BlogPost/69143 2017-06-02T12:33:26+01:00 2017-06-02T12:33:26+01:00 10 intriguing digital marketing stats from this week Nikki Gilliland <h3>71% of Brits think voice will be used in daily tasks in 10 years</h3> <p>According a consumer survey by Wiraya and YouGov, 71% of consumers think voice will be used for one or more daily tasks by 2027, while 26% of Brits already interact with day-to-day technology using voice activation.</p> <p>Helen Mirren was voted the voice people would most want to hear on automated calls, closely followed by Ewan McGregor, and then Tom Hardy.</p> <p><img src="https://assets.econsultancy.com/images/0008/6516/Voice.JPG" alt="" width="780" height="421"></p> <h3>C-Suite executives rank customer experience as top priority</h3> <p>Calabrio has <a href="http://learn.calabrio.com/dl-customer-experience-era-intl/" target="_blank">released a report</a> that reveals customer experience is now a top priority for US and UK business executives – ranked above sales and revenue as a primary concern for 2017.</p> <p>52% of senior leaders now view customer experience as the most important way of differentiating their brand. Further findings suggest it’s not that easy, however, with the biggest obstacles being achieving a single customer view and integrating customer data.</p> <p>29% of C-Suite execs are still unsure of the number of devices customers are using to complete a purchase, and only one in three believe that customers are connecting with brands using more than two devices.</p> <h3>Only half of consumers know how to block ads on mobile</h3> <p>Despite more than 80% of the people surveyed owning a mobile device, just 15% of them block ads on their mobile devices, compared to 68% blocking ads on their laptops.</p> <p>This is according to a <a href="http://insight.globalwebindex.net/mobile-ad-blocking-2017" target="_blank">GlobalWebIndex study</a>, which delved into the reasons why the US and EU are way behind Asia when it comes to the uptake of mobile ad blocking. </p> <p>Results show that users are unaware they can block ads on mobile devices, with just 48% of device owners currently aware of the possibility. It’s clear that many are still frustrated with online advertising, as one in three mobile users feel they see too many ads when browsing, and almost 50% have a desire to block all ads on their mobile devices.</p> <p><img src="https://assets.econsultancy.com/images/0008/6510/mobile_ad_blocking.JPG" alt="" width="780" height="420"></p> <h3>70% of audiences want social media companies to tackle fake news</h3> <p>Research by the7stars has revealed that just 20% of UK news audiences feel confident that the news they are reading is real, and 70% want social media companies to take more responsibility for tackling fake news.</p> <p>In a survey of 1,000 Brits, 45% said that it’s difficult to understand what is fake news and what isn’t. Just 7% said they felt Facebook and Twitter are doing enough to protect them from fake news.</p> <p>Only 10% of respondents said they trust news shared by friends on social media, with 45% saying they would not trust a shared news article.</p> <h3>Champions League engages more fans on social than FA Cup</h3> <p>Ahead of this year’s Champions League Final, Adobe has revealed how fans have been engaging with football's biggest competitions on social media.</p> <p>Taking into account over 27.8m mentions of the Champions League and FA Cup, stats show that the Champions League has been dominating, garnering over 22m social mentions – an average of 2.4m mentions a month. </p> <p>In contrast, the FA Cup generated just over 5.8m social mentions during its tournament phase, with an average of almost 900,000 mentions a month.</p> <p>This appears to be due to the Champions League’s international presence, with 84% of mentions coming from outside of the UK, compared to 63% coming from abroad for the FA Cup.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/UCLfinal?src=hash">#UCLfinal</a> Festival in Cardiff Bay:</p> <p>Sunshine ✅<br>Floating pitch ✅<br>Ultimate Champions Match ✅</p> <p>Details: <a href="https://t.co/WPHOv0QOZb">https://t.co/WPHOv0QOZb</a> <a href="https://t.co/OnycoUM95S">pic.twitter.com/OnycoUM95S</a></p> — Champions League (@ChampionsLeague) <a href="https://twitter.com/ChampionsLeague/status/870292999967842304">June 1, 2017</a> </blockquote> <h3>Biggest UK mortgage companies are delivering poor online experience</h3> <p>According to <a href="http://dock9.com/latest/press-release-uk-mortgage-giants-failing-customers-online-says-research" target="_blank">new research</a> by Dock9, three of the UK’s biggest mortgage providers are ranked worst in terms of online customer experience.</p> <p>In a study of the best and worst online experiences for 19 major mortgage intermediaries, high street and specialist lenders – Santander, Nationwide, and Natwest finished bottom of the pile. Barclays, Lloyds, and TSB were ranked top.</p> <p>Overall, it found 53% of companies are failing to design websites fully suited to mobile and tablet devices. 65% are only partially or not responsive at all, meaning customers have a much longer journey than necessary. </p> <h3>72% of marketers fail GDPR consent test </h3> <p>A test conducted by <a href="https://uk.mailjet.com/blog/guide/gdpr-research-report/" target="_blank">Mailjet</a> found that 72% of UK marketers either cannot answer, or incorrectly list the necessary conditions to meet GDPR requirements for ‘opt-in’ consent.</p> <p>With less than a year to go, just 17% of respondents have taken all of the recommended steps towards GDPR compliance. The reason could be that many marketers wrongly believe that the fine for non-compliance is €5.2m, when it is in fact €20m, or 4% of their global revenue.</p> <p>This is not the only area of confusion - 64% also assume GDPR means they must ensure individuals are able to opt-out easily, while 32% of UK marketing professionals believe they will be able to automate processing of location data without ‘opt-in consent’.</p> <p>For a handy breakdown of the GDPR, head on over to <a href="https://econsultancy.com/blog/69119-gdpr-needn-t-be-a-bombshell-for-customer-focused-marketers/" target="_blank">Ben's article</a>.</p> <p><img src="https://assets.econsultancy.com/images/0008/6511/GDPR.JPG" alt="" width="780" height="394"></p> <h3>90% of UK consumers have unsubscribed from retail communications in the past year</h3> <p>New research by Engage Hub has revealed that 90% of UK consumers have unsubscribed from communications from retailers in the past 12 months, with 46% saying it is due to an onslaught of messages from brands.</p> <p>In a survey of over 1,500 consumers, one third of respondents said they were unhappy with the frequency of offers or updates they receive. 24% say they receive something at least once a day, while 15% say they receive even more.</p> <p>Alongside the frequency of communication - irrelevancy is also a problem. 24% of respondents said they have unsubscribed from a retailer due the messages being highly irrelevant to them.</p> <h3>Stock in UK supermarkets declines 5.7%</h3> <p>A study by <a href="https://www.iriworldwide.com/en-GB/insights/Publications/Launching-a-new-product" target="_blank">IRIR</a> has found a 5.7% decline in the amount of products UK supermarkets are stocking in stores. From February 2016 to February 2017, there was an average of 930 fewer products available to shoppers in their local supermarket.</p> <p>During the same period, there was a decline of 8.4% in new branded items, with sales of new products also down by 6.5%. </p> <p>As well as fewer branded products being launched, supermarkets are also struggling to gain sufficient distribution, with only one in every seven new products achieving more than 75% distribution across the major UK supermarkets.</p> <p><img src="https://assets.econsultancy.com/images/0008/6509/distribution.JPG" alt="" width="738" height="388"></p> <h3>Budgets for experiential marketing predicted to rise</h3> <p>According to <a href="https://www.freeman.com/news/press-releases/new-research-from-freeman-and-ssi-confirms-brand-experiences-matter-to-marketers-and-theyre-willing-to-pay-for-them" target="_blank">Freeman</a>, one in three global marketers expect to allocate up to half of their budget to experiential marketing in the next three years. </p> <p>In a survey of over 1,000 CMOs in the US, Europe, and Asia, 59% of respondents agree that brand experiences have the ability to create stronger relationships with audiences. As a result, 51% say they plan to spend between a fifth and a half of their budget on experiential in the next three years.</p> <p>Currently, 42% of marketers in Asia are using sensory interaction as a means of creating personalised experiences, compared to 28% in the US and just 13% in Europe. 31% of Asian companies are using virtual reality, compared to just 7%-9% elsewhere.</p> tag:econsultancy.com,2008:BlogPost/69028 2017-04-21T15:10:00+01:00 2017-04-21T15:10:00+01:00 10 tremendous digital marketing stats from this week Nikki Gilliland <h3>UK search data shows surge in ‘snap election’ queries</h3> <p>Following on from the announcement of the snap general election this week, Hitwise has analysed how the UK responded online.</p> <p>Data shows there was a 2,000% increase in searches for Theresa May on print media sites, while three out of five searches on Tuesday 18th were about the election news. Most searches were in the form of questions, with the nation generally appearing unsure about what a ‘snap election’ actually means.</p> <h3>One fifth of retailers are failing to offer preferred delivery options</h3> <p><a href="http://ampersandcommerce.com/insights/yougov-consumer-survey-delivery-2017/" target="_blank">Research from Ampersand</a> has found that many of the UK’s biggest retailers are failing to offer next day delivery, despite a YouGov survey showing that 58% of people favour this method over any other.</p> <p>In comparison to 2014, Ampersand found that most people still favour next day delivery over click and collect and same day delivery, with preference for this increasing 6% within three years. </p> <p>Meanwhile, preference for same day delivery has gone from 21% in 2014 down to 12% this year.</p> <p><img src="https://assets.econsultancy.com/images/0008/5625/Ampersand.JPG" alt="" width="780" height="492"></p> <h3>UK add-to-basket rates on the up in Q4</h3> <p>Monetate's latest <a href="http://info.monetate.com/ecommerce_report_EQ4_2016.html" target="_blank">ecommerce report</a> has revealed that UK add-to-basket rates were 3.75% higher in Q4 2016 than a year previously. </p> <p>The report also shows that both global and UK conversion rates were lower this Q4 than in 2015. However, global and UK conversion rates saw its first increase since Q4 of 2015.</p> <p>Meanwhile, website visits via mobile continued to increase globally, with 44% of UK website visits coming from smartphones.</p> <h3>75% of UK consumers have not spoken to a chatbot</h3> <p>New research from <a href="https://insights.ubisend.com/2017-chatbot-report" target="_blank">Ubisend</a> has uncovered the brand characters people would most like to see turned into chatbots. Compare the Market’s Meerkats topped the poll, followed by the Andrex puppies and Nespresso’s George Clooney. </p> <p>Other research found that 75% of UK consumers have not yet spoken to a chatbot, however, 57% of consumers are aware of what a chatbot is. </p> <p>Lastly, 35% want to see more companies adopting chatbots to solve their queries, with 68% citing ‘reaching the desired outcome’ as the most important factor in their experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/5628/chatbots.JPG" alt="" width="780" height="297"></p> <h3>Expedia outperforms other travel brands with 7% market share</h3> <p>Conductor has released its first ever <a href="https://www.google.co.uk/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwis1ZyKnbXTAhXOaVAKHc0ZA4EQFggiMAA&amp;url=http%3A%2F%2Fww2.conductor.com%2Frs%2F149-ZMU-763%2Fimages%2FConductor-Organic-Online-Market-Share-Report-Holiday-2016.pdf&amp;usg=AFQjCNGO-bWF8Ak2EEpMJ7kZeecHFR3fjA" target="_blank">Organic Market Share</a> report, detailing the brands that excel at reaching consumers from organic search.</p> <p>In the travel category, Expedia was found to be the overall top performer, taking a 7% market share. Meanwhile, TripAdvisor dominates the ‘early stages’ of the consumer journey category with a 10% share. </p> <p>Data shows that airlines, car rental companies and hotel chains (including Hilton) have the potential to increase their visibility. </p> <p><img src="https://assets.econsultancy.com/images/0008/5627/Online_market_share.JPG" alt="" width="713" height="404"></p> <h3>Consumers prefer traditional advertising to digital</h3> <p>Research by Kantar Media has found that UK consumers feel significantly more positive about advertising on traditional platforms, such as TV and magazines, than they do about online formats.</p> <p>In a survey, 33% said they actively dislike seeing advertising on online video services and search engines, while 30% dislike being served ads in news and articles online. In contrast, only 13% and 14% of consumers dislike seeing ads in printed newspapers and printed magazines.</p> <p>With online ads predicted to account for more than half of all advertising spend in the next few years, this provides food for thought for brands.</p> <h3>Connected shopping driven by Generation Y </h3> <p>New research from Savvy suggests that the mass adoption of smartphones and social media has contributed to a fundamental change in the path to purchase.</p> <p>Data shows that Generation Y is driving changes in retail due to being constantly connected. 66% say they regularly use their smartphone to buy products and 49% regularly use their smartphones while in the supermarket. While this group represents around a third of shoppers at the moment, they are predicted to account for 47% by 2022.</p> <p><img src="https://assets.econsultancy.com/images/0008/5634/connected_shopper.jpg" alt="" width="680" height="453"></p> <h3>UK marketers increase budgets in 2017</h3> <p>According to data from the Q1 2017 <a href="http://www.ipa.co.uk/page/ipa-bellwether-report#.WPnTjtLyuUk" target="_blank">IPA Bellwether Report</a>, marketing budgets increased in Q1 2017 with significant growth seen in internet and main media advertising categories.  </p> <p>The report suggests that the overall outlook for 2017/18 is positive, with 26.1% of companies suggesting growth in total budgets for the coming year. Meanwhile, ad spend is now predicted to grow 0.6%, replacing the previous forecast of -0.7%.</p> <h3>Only 55% of Brits associate Easter with religion</h3> <p>New <a href="https://yougov.co.uk/news/2017/04/13/only-55-brits-associate-jesus-christ-easter/" target="_blank">research from YouGov</a> has found that Brits are more likely to think of Easter in relation to chocolate eggs than religious connotations. </p> <p>In a survey of 2,670 UK adults, only 55% said they personally associate Jesus with Easter, while 67% said they associate it with a bank holiday. Chocolate eggs is clearly at the forefront of everyone’s minds, with 76% associating this with Easter above anything else.</p> <p>In a separate study, Captify analysed found that Cadbury products dominate searches for chocolate eggs, with Crème Egg accounting for 29% of searches and Mini Eggs accounting for 18%.</p> <p><img src="https://assets.econsultancy.com/images/0008/5626/YouGov.JPG" alt="" width="650" height="752"></p> <h3>Luxury ad spend predicted to shift online </h3> <p>Zenith's <a href="https://www.zenithmedia.com/product/advertising-expenditure-forecasts" target="_blank">latest report</a> suggests that expenditure on luxury advertising is set to recover, with growth predicted to occur due to an increase in online spend. Zenith predicts a 3.9% rise in 2017 – a welcome figure following a 0.5% decline in 2016.</p> <p>It also predicts that the internet will become the main luxury advertising medium in 2018, despite print currently being the principal medium, accounting for 32.7% of ad spend in 2016 compared to 25.8% for internet advertising.</p> tag:econsultancy.com,2008:BlogPost/68693 2017-01-11T14:46:00+00:00 2017-01-11T14:46:00+00:00 The importance of the blockchain: The second generation of the internet Nick Hammond <p>The profile of bitcoin (powered by a blockchain network) has often masked the <a href="https://www.businessesgrow.com/2016/07/20/blockchain-101/">rising importance and relevance of the underlying blockchain technology</a>, but this is changing rapidly.</p> <p>One perspective is that the blockchain is the ‘second generation of the internet’.</p> <p>According to an article <a href="http://raconteur.net/business/the-future-of-blockchain-in-8-charts">published on Raconteur</a>, ‘The first generation brought us the internet of information. The second generation, powered by blockchain, is bringing us the internet of value; a new, distributed platform that can help us reshape the world of business and transform the old order of human affairs for the better. But like the internet in the late-1980s and early-1990s, this is still early days.’<a href="http://raconteur.net/business/the-future-of-blockchain-in-8-charts?utm_source=pardot&amp;utm_campaign=wed50117&amp;utm_medium=email"><br></a></p> <p>The initial paper regarding bitcoin (and blockchain) entitled <a href="https://bitcoin.org/bitcoin.pdf">Bitcoin: A Peer-to-Peer Electronic Cash System (2008)</a> was authored by a mysterious individual, likely a pseudonym, going under the name of Satoshi Nakamoto.</p> <p>While the original paper was written with financial transactions in mind, blockchain has far wider potential. Time will tell, but it may be that Nakamoto’s paper will have ramifications on a par with Tim Berners-Lee’s innocuously titled 1989 paper <a href="http://info.cern.ch/Proposal.html">Information Management: A Proposal</a>.</p> <p><iframe src="https://www.youtube.com/embed/Gc2en3nHxA4?wmode=transparent" width="560" height="315"></iframe></p> <p>In December 2015, the UK government’s Chief Scientific Adviser, Sir Mark Waldport, stated in his report <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/492972/gs-16-1-distributed-ledger-technology.pdf">Distributed Ledger Technology: beyond blockchain</a>, that: ‘The technology [blockchain] offers the potential, according to the circumstances, for individual consumers to control access to personal records and to know who has accessed them.’  </p> <p>Canadian writers and researchers, Alex and Don Tapscott, authors of the recent book <a href="https://www.amazon.co.uk/d/Books/Blockchain-Revolution-Technology-Behind-Bitcoin-Changing-Business/1101980133">Blockchain Revolution</a>, believe that the blockchain goes way beyond the second coming of the internet. The pair, like so many others, stumbled across blockchain via the bitcoin association, quickly realising the genie is out of the bottle. </p> <p>Alex Tapscott observes, ‘With blockchain technology, a world of possibilities has opened and we now have a true peer-to-peer platform that enables personal economic empowerment. We can own our identities and our personal data; we can do transactions, creating and exchanging value without powerful intermediaries acting as the arbiters of money and information.’</p> <p>The blockchain, essentially a database and a giant network, known as a distributed ledger, records ownership and value, and allows anyone with access to view and take part. The asset database can be shared across a network of multiple sites, geographies or institutions. All participants within a network can have their own identical copy of the ledger. Any changes to the ledger are reflected in all copies, like a Google doc. </p> <p>The blockchain is currently having its biggest impact in financial services, with the largest changes caused by infrastructures using blockchain APIs, which are delivering in the areas of speed in data processing, transparency (amongst the right people) and security. </p> <p>But what does the blockchain mean for businesses outside of the financial sector? The answer lies in the areas of - privacy/information control, disintermediation, and business processes. </p> <p>As mentioned above, the blockchain offers consumers opportunity to achieve greater control over their information. This will impact on most organisations, as they increasingly rely on the acquisition and application of customer data.</p> <p>The importance of privacy is obviously a sensitive issue. One current solution for consumers is the selection of ephemeral applications like Snapchat and encrypted messaging, but the future might lie in the anonymity of blockchain technologies. </p> <p>Another change will affect business sectors where there are many intermediaries, for example travel and tourism. Here, the blockchain’s ability to simplify and speed up interactions, will likely lead to a process of dis-intermediation.</p> <p>Current examples of businesses and categories active in the blockchain include: Peer-to-peer payments (Abra, BTC Jam), <a href="https://econsultancy.com/blog/68612-how-the-internet-of-things-will-fundamentally-change-marketing/">internet of things</a> (Chimera-Inc, Filament), collaborative transport (La’Zooz, Arcade City) and online gaming (Auckur, SatoshiDice).</p> <p>As the number of applications that utilize blockchain technology increases, so will its relevance. Not only will we be selling products through the blockchain, but marketing companies that run off it as well.</p> tag:econsultancy.com,2008:BlogPost/68549 2017-01-10T11:53:09+00:00 2017-01-10T11:53:09+00:00 How will fintech lenders cope with an economic downturn? Patricio Robles <p>Today, non-bank lenders, many of them generating leads and conducting business primarily or exclusively online, are big players in the lending markets, in many cases having taken market share from banks.</p> <p>These include direct lenders like Sofi, Avant and OnDeck Capital, as well as marketplace lenders like LendingClub and Prosper. </p> <p>The timing couldn't have been better. The slow but steady recovery that has occurred over the past eight years has seen historically low default rates, a boon to the fintech lenders that more aggressively seized the opportunities bank lenders ceded.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/reports/digital-transformation-in-the-financial-services-sector-2016/"><em>Digital Transformation in the Financial Services Sector</em></a></li> <li><a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016/"><em>Digital Trends in the Financial Services and Insurance Sector</em></a></li> <li><a href="https://econsultancy.com/blog/67202-what-s-the-future-for-big-banks-in-a-fintech-world/"><em>What's the future for big banks in a FinTech world?</em></a></li> </ul> <h3>Underwriting as customer experience</h3> <p>Fintech lenders haven't benefited just because they were willing to lend money when bank lenders weren't. It's also that they have offered a better customer experience.</p> <p>Not only have fintech lenders brought much if not all of the loan application process online, they created user experiences that made it easy for consumers and business owners to complete that loan application process quickly and without hassle.</p> <p><img src="https://assets.econsultancy.com/images/0008/2931/lending_club.png" alt="" width="800" height="460"></p> <p>For example, fintech lenders generally allow borrowers to upload documentation, and in many cases, borrowers can authorize the lenders to automatically retrieve data from their bank accounts, eliminating the need for borrowers to collect bank statements.</p> <p>Borrowers are often also able to sign documents digitally, speeding the application and funding process.</p> <p>But fintech lenders haven't just created winning customer experiences by implementing web and mobile user experiences that make applying for loans quicker and easier. In many cases, they have also reinvented the way loan applications are underwritten.</p> <p>Many fintech lenders have developed their own proprietary lending models, which are often different than those traditionally used by bank lenders. Some boast of using thousands of data points to evaluate borrowers and even relying very little on credit scores from the major credit bureaus.</p> <p>The result: in many cases, fintech lenders are able to approve loan applications much more quickly than their bank lender competitors, and are often able to approve loans for borrowers who banks historically wouldn't lend to.</p> <h3>Are cracks starting to emerge?</h3> <p>The narrative around fintech lenders has been that their underwriting models represent innovation.</p> <p>But there's a problem: the vast bulk of the loans fintech lenders have issued were issued after the Great Recession, and thus, the underwriting models they have been using haven't been battle tested against an economic downturn.</p> <p>Now, as recently detailed by Bloomberg, there are signs that at least some of these models might not have been as strong as fintech lenders believed them to be.</p> <p><a href="https://www.bloomberg.com/news/articles/2016-11-15/consumer-loans-souring-fast-in-some-bonds-tied-to-online-lenders">According to</a> Bloomberg, several bonds issued by Avant, an online lender that offers personal loans, have breached or are expected to soon breach delinquency or default triggers for the first time ever.</p> <p><img src="https://assets.econsultancy.com/images/0008/2932/avant.png" alt="" width="800" height="399"></p> <p>Earlier in the year, LendingClub, which later faced scandal, revealed that its write-off rates were higher than it had predicted, <a href="http://247wallst.com/banking-finance/2016/11/16/surge-in-online-loan-defaults-sends-shockwaves-through-the-industry/">suggesting to some</a> that LendingClub wasn't as good at assessing credit risk as it probably thought it was.<br></p> <p>While it's unlikely that fintech lenders will experience a collapse unless and until there's a major turn in the global economy, 2016 appears to have revealed some cracks in the loan portfolios of these companies. Many have taken corrective action, reducing their emphasis on loan growth, for instance.</p> <p>But given that non-bank lenders <a href="http://www.wsj.com/articles/lenders-step-up-financing-to-subprime-borrowers-1424296649">have been among the most willing</a> to lend to borrowers that wouldn't pass muster with banks, it's entirely possible that they could be at greater risk for loss than most have anticipated when the next recession hits.</p> <p>If that happens, it could offer bank lenders an opportunity to win back business they have ceded in the past eight years by applying some of the fintech lenders' innovations around user experience.</p> tag:econsultancy.com,2008:BlogPost/68533 2016-11-16T12:42:00+00:00 2016-11-16T12:42:00+00:00 Low growth predicted for digital agency revenues in 2017: Report Nikki Gilliland <p>The research also found that on average agencies predict their daily rates will grow by only 2% in 2017.</p> <p><img src="https://assets.econsultancy.com/images/0008/1513/Predicted_growth.JPG" alt="" width="600" height="572"></p> <p>This news comes from the <a href="https://www.econsultancy.com/reports/digital-agency-rate-card-survey-2016/">Digital Agency Rate Card Report</a>, which is based on an online survey of 398 UK digital agencies.</p> <h3>Predicted growth is down but positivity is up</h3> <p>So what’s behind the downturn?</p> <p>Many respondents cited uncertainty over Brexit as the biggest obstacle in the near future, and more specifically, its impact on clients' budgets and funding capabilities.</p> <p>A surprising number also mentioned resourcing, with difficulty managing freelancers and finding the right people in a competitive market appearing troublesome.</p> <p>Despite this level of uncertainty, many agencies reported having a high level of confidence in their business for the next 12 months.</p> <p><img src="https://assets.econsultancy.com/images/0008/1514/Optimism.JPG" alt="" width="628" height="465"></p> <p>Though it might sound contradictory in relation to the previous finding, this positivity stems from the weaker pound and the opportunities it presents on an international level.</p> <h3>Offline networking growing in importance</h3> <p>Finally, when it comes to attracting new clients, the majority of agencies said recommendations and referrals are the most effective tool.</p> <p>Though this method is seen as marginally less effective than it was in 2014, other practices like offline networking and email marketing have seen a spike in perceived importance.</p> <p><em><strong>What are the most effective business development methods or ways of getting new clients? (2014 vs. 2016)</strong></em></p> <p><img src="https://assets.econsultancy.com/images/0008/1537/Screen_Shot_2016-11-16_at_12.45.51.png" alt="" width="774" height="891"></p> <p><strong>For lots more on this topic, you can download the full <a href="https://www.econsultancy.com/reports/digital-agency-rate-card-survey-2016/">Digital Agency Rate Card Report</a>.  </strong></p> tag:econsultancy.com,2008:BlogPost/68089 2016-07-28T15:21:00+01:00 2016-07-28T15:21:00+01:00 10 things I learned raising £1m VC for my martech startup Parry Malm <p>This article is not about “why we fundraised”. If you want to understand more about what led us to raise the funds, you can read about <a href="https://phrasee.co/why-we-took-on-1m-in-phrasee-funding/">Phrasee’s funding</a> here.</p> <p>Instead, this article will offer you some free advice and tips. If I was cool, we’d call them “hacks”, but I’m not cool. So let’s go with “advice and tips”.</p> <p>By no means am I a fundraising expert – in fact, quite the opposite. But for anyone else who’s trying to raise funds – or anyone who’s curious what startups go through to drive investment – then read on.  </p> <h3>1. Learn how to say what your business does in one sentence.</h3> <p>The tech we’ve built is awesome… and by virtue of being awesome, it’s mega complicated. We could spend hours explaining how everything works.</p> <p>But – and here’s the thing – most people don’t want to hear about all the intricacies. And me, I’m a wordy guy (probably fitting for a guy who runs an AI-powered language company). So to whittle down everything I want to say to a sentence is, for all intents and purposes… hard.</p> <p>So when we started, and someone asked me, “So what is it your company does?” my answer would range anywhere from one to five minutes. And the lucky person listening would stare at me blankly.</p> <p>This was a problem.</p> <p>See, investors get pitched on ideas a lot. And they don’t have time to listen to longwinded descriptions of stuff. So, after a while, I came up with this little chestnut: “Phrasee uses artificial intelligence to generate better <a href="https://econsultancy.com/blog/66328-211-awesome-phrases-for-email-subject-lines-that-sell/">subject lines</a> than humans.”</p> <p>BOOM.</p> <p>By focusing on a simple talking point, further conversations were much more focused.  </p> <h3>2. Bootstrapping is awesome, so don’t rush raising.</h3> <p>We launched Phrasee in February, 2015, and closed our seed round about 18 months after launch. For many tech firms, this is an eternity. And it wasn’t easy. But here’s why we did it.</p> <p>First, earlier on, we didn’t have enough market traction to raise at a level that would mitigate founder dilution. Surely this doesn’t require explanation – less dilution is better than more.</p> <p>Second, not having huge cash reserves, while at times stressful, forces you to be pragmatic AF. And this is huge. We were forced to be nimble, responsive to customer requirements, and ultimately focused on core product development.</p> <p>Third, while bootstrapping, you have to be laser-focused on immediate success. Whilst it’s great to have a bunch of money so you can do a bunch of stuff, most stuff has a 50% failure rate. Whilst bootstrapping, we couldn’t afford failures.</p> <p>I’ve seen many companies raise too much, too soon, and it results in either targets not being hit, over-dilution, or down rounds. These are three things we intend to avoid – and had we not delayed our seed round as long as was reasonable, we’d have become too unfocused, too quickly… and likely not be where we are today.  </p> <h3>3. Get your business model sorted, and everything else will work out.</h3> <p>Sounds obvious, right? Well, it’s not. And here’s why.</p> <p>Your business model (that is, how you charge, and how it translates into cost base) is hugely important. Obvious, right?</p> <p>But, until you have actual experience in running your business, you’re only guessing what your business model is. And, it can change, dependent on market requirements.</p> <p>Anytime you look at ProductHunt or some site like that, a normal strapline/business model is something like “Uber for X”, or “Tinder for X”, or “Snapchat for X”. But that’s not a business model. That’s a reference point.</p> <p>A business model is not one sentence. It’s a fully reasoned revenue and cost plan based upon actual market feedback – and preferably actual revenue and cost.</p> <p>It took us a while to figure out our business model, which is why we weren’t raise-ready until now.</p> <p>Our first model, well, if we knew then what we knew now, was never going to work. But how were we supposed to know that?</p> <p>The first model went into Beta in Feb 2015, and we were sure we were going to be INSTANT BILLIONAIRES.</p> <p>NOPE.</p> <p>We tried a bunch of stuff, and failed hard numerous times, before figuring out what worked. And now that it works, the sky is the limit.  </p> <h3>4. Your pitch deck matters. A lot. So make it look dope as $%!&amp;.</h3> <p>“What’s a pitch deck,” you ask? It’s 10-15 slides that you present to investors. It’s key, because it’s the information upon which they’ll decide whether or not to speak to you.</p> <p>Here’s something I learned – make your pitch deck awesome. Spend time on it. Spend money on it. Make it memorable. Because it’s the most important presentation you’ll make for your business.</p> <p>So, how do you make a pitch deck awesome? There’s no hard-and-fast rule to it. There’s many formats you can follow. I know what worked for us, but that doesn’t mean it will work for you.</p> <p>Get all of your key information in one place – ie product description, core intellectual property, customer traction, business model, financials, exit strategy, etc. etc. – and put it in a sensible order. And – bear this in mind – expect to iterate it about a million and one times.</p> <p>Next, find someone who is AWESOME at design. If you don’t have someone on your team, then outsource it. But, there’s nothing worse than a deck on powerpoint that looks like Fisher Price My First Pitch Deck. It doesn’t show how awesome your company is.</p> <p>We’re fortunate, as we have an in-house designer who specialises in making things look dope AF.</p> <p>*SIDE NOTE* His job title is “Junior Vice President of Product”. We don’t have a President, or a Vice President for that matter. But, he thought “Junior Vice President” sounded more senior than Vice President. I agree. <a href="https://www.youtube.com/watch?v=9STeegpxSb0">Here’s why</a>. *END SIDE NOTE*</p> <p>Your pitch deck is what investors will first see about you, and it’ll get passed around. So don’t skimp on it, and don’t be lazy.</p> <p>Make sure it tells your company’s story – and outlines very simply why your business is a can’t-miss investment opportunity.  </p> <h3>5. Finding “smart money” takes longer, but is worth the wait.</h3> <p>OK, so here’s a phrase that I learned recently – “Smart Money”. It refers to investors who are expert in the industry in which you operate.</p> <p>Why is this important? For some businesses, it’s not. They simply need money to cover their burn, and want to go it alone.</p> <p>But for some businesses, smart money is critical – because what you’re getting is not just money, but also expertise, advice, and connections. Our investors – <a href="https://www.next15.com/">Next15</a> and <a href="http://www.galvanisecapital.com/">Galvanise</a> – are smart money, and this is one of the big reasons we chose to work with them.</p> <p>*SIDE NOTE* Remember, you don’t have to work with a particular investor, so it’s not just them choosing you. It’s also about you choosing them. Their personalities, cultures, and business model matter just as much as yours do! *END SIDE NOTE*</p> <p>It’s ultimately a choice you have to make for your business. Do you just want money to scale, or do you want money to scale alongside people who are digital industry experts? We chose the latter.</p> <h3>6. Honesty actually is the best policy.</h3> <p>Go give your mum a hug, because she was right all along – honesty really is the best policy, and I’m not just saying that.</p> <p>See, every company, large or small, has warts. No business is perfect – and if they were, then striving to maintain perfection would render them imperfect.</p> <p>Early on in your conversations, be up front about your uncertainties, risk points, and future challenges. Because chances are your prospective investors will ask about them anyway… so beat them to it.</p> <p>Now, with that said, also be honest about the awesome points! If you get a meeting with an investor, there’s a reason for it. So don’t be afraid to shout about what you’re doing well… just remember, whilst they’re investing in your awesomeness, they’re also investing in your shortcomings. So it’s best to be honest and avoid surprises in the future.</p> <h3>7. Find awesome advisors, lawyers and accountants.</h3> <p>Here’s the glamourous part of seeking investment that no one tells you – you’ll be spending more time than ever with your advisors, lawyers and accountants.</p> <p>And I mean loads of time. It’s unavoidable – because we’re talking about a substantial chunk of change involved in your transaction… so all parties need to protect their interests.</p> <p>And, if you’re like my co-founders and me, you’ll be doing a lot of things for the first time. There’s going to be a lot of things you don’t know about. For example: I didn’t know what a “disclosure letter” was. Now I do. But, when asked if we had started preparing ours, I was like, “Erm… gimme 5 minutes.” I called up one of our advisors… and got my answer straight away.</p> <p>For each of the three categories of people mentioned in the point, here’s a few specific pointers:</p> <p><strong>i) Advisors</strong></p> <p>Make sure your advisors have actually done the nitty gritty details of a fundraise before, and not from the investor side. This way, they’ll have been in the trenches – and will also understand the pressure you, as a founder, face.</p> <p>And make sure they speak to you in plain English, not investment jargon. I can’t stress this point enough. Our panel of advisors were awesome, and saved us so much pain and stress.</p> <p><strong>ii) Lawyers</strong></p> <p>Everyone loves lawyers right? The thing is, they are so important. From negotiating your term sheet, through to wording your investors agreement, right through to executing the documents upon signing, having awesome legal representation is critical. There is a lot of legal lingo that lingers in a deal.</p> <p>Schedule regular calls/meets with your lawyers and make sure they’re actual humans, not just paper pushers. Fortunately, ours were!</p> <p><strong>iii) Accountants</strong></p> <p>Ultimately, an investment is a commercial play, so it always comes down to the numbers. Whether it’s on your forecasts, your cap table, or your asset structure, get ready to deep dive into a million and one spreadsheets.</p> <p>Having a solid bean-counter on your side is critical. They’ll tell you if you’re over-spending in one area, under-spending in another, and will give solid guidance on boring things like tax liabilities and depreciation.    </p> <h3>8. Due diligence isn’t always fun… but it’s important.</h3> <p>For those who haven’t heard the term before, “due diligence” is the period between signing terms (an agreement in principle) and the final close (when you get the money).</p> <p>Think about it like an MOT for your business. Your investors look under the bonnet of your car, and highlight anything that is either broken, or could break.</p> <p>It’s a lot of detail. A lot. It’s basically everything you’ve done up until now, in all it’s gory detail. From your revenue model and forecast, to your cost projections, right through to your employment contracts, insurance levels, and IP protection strategy. It’s a lot of work, and will take you a long time.</p> <p>It’s frustrating. It’s arduous. It’s going to keep you up at night. And it’s worth every second.</p> <p>Why? A rigorous DD will highlight elements of your business model that need attention. We learned so much through it.</p> <p>Some of it was negative (i.e. you need to do this, have this, and get that). But the vast majority of it was positive. Things like, “Have you thought about this market?”, or “What if you need to scale faster than planned?”, or “Are you spending enough on Prosecco?” (Note: that last one didn’t come up. But it could have).</p> <p>Your DD process will consume your life, so make sure you have people in place who can manage “business as usual”. However, your business will come out of DD stronger than before… Like they say, there is no pleasure without pain.  </p> <h3>9. Never mind the Brexit, here’s Phrasee.</h3> <p>Our deal closed on July 1<sup>st</sup>, so about a week after the Brexit.</p> <p>We were acutely aware of the potential risk the Brexit could pose for Phrasee’s investment round.</p> <p>Four days before we closed, I was invited onto CBC TV, Canada’s BBC, to discuss <a href="https://econsultancy.com/blog/68003-ecommerce-in-the-uk-post-brexit-positives-negatives-opportunities">the effect the Brexit could have</a> (you can <a href="https://www.facebook.com/phraseeapp/videos/579318905569710/">watch it here</a> if you’re interested). Inside, with the studio's lights shining in my face, my emotions were churning – “a deal ain’t done until it’s done,” my internal monologue was depressingly repeating.</p> <p>But, here’s the thing. Upon reflection – a business with a majority cost base in (currently cheap) pounds, with substantial foreign (and currently stable) currency revenue streams – is actually not a bad model. So, for Phrasee's investment at least, it was a storm in a teacup.</p> <p>Post-Brexit, there was mass hysteria. People, especially in the week directly after Brexit, were noticeably concerned. The markets dropped, the Sterling devalued, and there was an atmosphere of uncertainty, at least in London.</p> <p>And still, a week later… we closed our deal.</p> <p>According to my research on CrunchBase (which wasn’t exhaustive), Phrasee’s Seed round was the first major post-Brexit investment in the UK’s MarTech sector.</p> <p>Why am I humble-bragging? During your funding round, the world isn’t static. Things will change around you. You have to ensure your business is resilient and can withstand uncontrollable shocks, like the Brexit.</p> <p>Listen, you can control a lot of things – the hiring of employees, the deployment of product updates, and things like that. But there’s WAY more things you can’t control – the weather, your customers, and largely the world around you.</p> <p>So don’t stress about what you can’t control, and focus on what you do best – running, and growing, your business.</p> <h3>10.  The day we closed is a day I’ll never forget.</h3> <p>The day we closed, we had a deadline, at which time all the parties were meeting up to sign all the requisite paperwork. And there’s a LOT of paper in these deals, wowza!</p> <p>The meeting was set at 4:30pm.</p> <p>As of 1:30pm, we were finalising a few details.</p> <p>After 6 weeks of back-and-forth, DD, and countless phone calls, everyone was on the same page, all in agreement.</p> <p>I hung the phone up. The flurry of emails stopped. No one was calling me. And it was the most excruciating few hours of my life.</p> <p>I went to a roof terrace in Soho, and had a cup of tea. I aimlessly scrolled through Instagram, the images not registering in my head. I sat there for an hour, unable to form a cognizant thought.</p> <p>I checked my watch. There was still two hours to go.</p> <p>No emails through. “What were they all doing?” I wondered. “Have they changed their minds?”</p> <p>I called one of my co-founders and asked her what the deal was. “They’re doing their jobs Parry, what did you expect?”</p> <p>I left the terrace, and left onto Shaftsbury Avenue. I had two hours to get to Liverpool Street.</p> <p>So I started walking.</p> <p>I walked up to Holborn, then down to Aldwych. I walked across the bridge, then down Southbank, then back over. I wove through the alleys of the City. I aimlessly crossed one street, than back over.</p> <p>And I have no memory of any of it.</p> <p>Then, somewhere between Soho and Liverpool Street, I had a cathartic moment. A moment of clarity, if you will.</p> <p>It was this – the business my co-founders and employees have built is inherently valuable. And industry experts - our investors - agree, and were backing what we built with cold, hard cash.</p> <p>At about 4:20pm, 10 minutes before our meeting, all alone, sweating in the sun, sore feet from walking aimlessly, I stopped and looked around.</p> <p>Surrounded by 8 million people, all doing their business, hustling from one place to another, rushing by me, not knowing what was happening inside my head.</p> <p>At that moment, I felt paradoxically huge... and simultaneously tiny.</p> <p>It was a moment I will never forget.</p> <p>I went to meet my awesome co-founder Victoria at the station.</p> <p>We gave each other a fistpump, a hug, and said, “Let’s do this.” And we set off to sign on the dotted line.</p> <p>It’s been a wild ride this far. I’ve never had so little sleep. Or been so excited. Or been so uncertain.</p> <p>And would I change a thing?</p> <p>NOPE.  </p> <h3>And here’s one bonus point, probably the most important one of all.</h3> <h3>11. Don’t forget to celebrate!</h3> <p>When you start a business, you do it for a number of reasons. But, anyone who’s done something new, something innovative, something exciting, will understand this.</p> <p>Your milestones, be they large or small, need to be celebrated. Because you’ll never do something for the first time again.</p> <p>Let me reiterate the point: <strong>it’s so important to celebrate.</strong> With your co-founders. With your investors. With your team.</p> <p>Because if you aren't enjoying the ride, what’s the point?</p> <p>When we started Phrasee, we had no idea what was in store for us. We still don't know what tomorrow will bring. But no one can take away the 18 months of laughter, tears, sweating and celebrating that Phrasee has brought to our lives.</p> <h3><strong>If you have any other sage advice for anyone looking to fundraise, stick them in the comments below.</strong></h3> <p>The points above are some of the things I’ve learned along the way. Maybe not all of them are in a textbook, but they’re all things that I’ve picked up taking Phrasee from being a fledging startup to an actual company.</p> <p>For all the entrepreneurs out there, no matter what stage you’re at, good luck.</p> <p>And for those who have a job, but have always wanted to live the dream – do it. You’ve nothing to lose – except your life savings, and a whole lot of sleep.</p> <p>No big deal, right?</p> tag:econsultancy.com,2008:BlogPost/66258 2015-04-03T14:30:00+01:00 2015-04-03T14:30:00+01:00 Equity crowdfunding comes to the US, sort of Patricio Robles <p>It's not <a href="https://econsultancy.com/blog/9548-the-crowdfund-act-everything-you-need-to-know/">the CROWDFUND Act</a> that everybody has been talking about for years and which may never be put into place, but it does pave the way for businesses to raise up to $50 million in offerings that aren't open only to wealthy investors. </p> <p>The new Regulation A+ rules give companies the ability to sell equity in two tiers. Under a Tier 1 offering, companies can offer up to $20m in equity to the public over a 12 month period.</p> <p>Companies will need to have their financials reviewed and an offering circular approved by the SEC. Under a Tier 2 offering, companies will be able to offer up to $50m in equity to the public over a 12 month period.</p> <p>In addition to the Tier 1 requirements, audited financials must be provided, and ongoing disclosures similar in nature to those publicly-traded companies are required.</p> <p>The buzz around Regulation A+ is due to the fact that under both Tier 1 and Tier 2 offerings, companies can sell equity to non-accredited investors (individuals who don't have more than $200,000 a year in income or a net worth of at least $1m).</p> <p>In Tier 2 offerings, non-accredited investors will be limited to investing 10% of their net worth or net income, whichever is greater, in an effort to prevent individuals from betting more than the SEC believes they can afford to lose.</p> <p>Importantly, non-accredited investors will be able to self-report their net worths and incomes, so companies will not have the burden of verifying this information.</p> <p>Combined with the fact that companies using Regulation A+ can freely advertise their offerings to the public, Regulation A+ is being hailed by many as a groundbreaking development that will usher in a new wave of equity crowdfunding in the United States. But will it really?</p> <p>A Regulation A+ offering isn't going to be cheap to prepare and according to some observers, the total cost could run companies upwards of $100,000.</p> <p>Additionally, the offering circular that the SEC must approve is expected to receive the same level of scrutiny as an SEC Form S-1, the document companies must prepare for a traditional IPO.</p> <p>Fortunately, Regulation A+ does allow companies to test the waters before they prepare their circulars, so in theory some of the costs could be delayed until companies have confidence their offerings will be successful.</p> <p>Despite this, given the minimum costs, disclosures required and reviews that companies will be subjected to, it might be appropriate to think of Regulation A+ offerings as mini IPOs rather than the true crowdfunding campaigns proponents have been seeking.</p> <p>Certainly, there are reasons to believe there won't be a flood of new companies raising money using Regulation A+, but that doesn't mean that the SEC's new rules aren't a step in the right direction.</p> <p>Giving young companies more ways to raise capital is almost certainly a good thing and it would be surprising if, at a minimum, Regulation A+ doesn't result in at least a few interesting, innovating businesses getting capital they might otherwise not have.</p>