the 2013 digital marketing landscape by karen burka

2013

DIGITAL MARKETING

AGENCY LANDSCAPE

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Karen Burka

Digital Marketing Depot

@dmarketingdepot

#SMX #22B

October 2, 2013

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©2013 Third Door Media, Inc.

Choosing a Digital Marketing Agency

Overview of the digital advertising market

Trends Driving Growth

Impact on the Agency Landscape

What it all means for you


Internet Ad Spending Continues to Grow (15% in 2012)

46.3%

33.0%

7.0% 9.0%

5.0% 0.4%

$36.6B in 2012

46.5%

35.0%

8.0%

5.0%5.0%

1.0%

$31.7B in 2011

Search

Display-related

Classifieds

Mobile

Lead Generation

Email

Source: Internet Advertising Bureau


Digital Share of Agency Revenue

25.8%28.0%

30.3%32.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2009 2010 2011 2012

$11.6$10.1B


Trends Driving Digital Ad Growth

Audience Fragmentation

Increasing Complexity of the Digital Landscape

Convergence of Paid, Owned, and Earned Media

Demand for Cross-Channel Campaign and Data


Audience Fragmentation


More Complex Digital Marketing Landscape

Mobile

Search

Social

Email

Display

PR

Website


Digital Media Channels

Search

SEO

Keyword research

Content creation & optimization

Link analysis

Local/geo-search

Mobile programs

International tracking

Campaign management

Paid Search

Bid management & optimization

Landing page optimization

Affiliate marketing

Search Retargeting

Campaign management

Social

Content management

Brand compliance

Influencer outreach

Community building

Global programs

Sentiment analysis

Video design/development

Display

Media planning & buying

Creative

Branding

Display/retargeting

Website

Design & development

Content creation

Ecommerce

CSEs

Microsites/landing pages

Mobile

Program design & execution

Bluetooth apps

Website audits

App & game development

Video/commercial design

PR

Blogging

Online publicity

Online brand monitoring

SEO/link building

Email

Program design & execution

List/database development

Lead generation


Paid, Owned, and Earned Digital Media Then

Paid Media

Paid search

Display

Social (FB ads/sponsored

tweets)

Mobile (ads)

Email

Owned Media

Mobile (apps/games)

Website content

Email

Social (FB pages, blogs/Twitter accts)

Earned Media

SEO

Mobile (shares/reviews)

Social (retweets/likes/

pins/shares)


Paid, Owned, and Earned Digital Media Today

Paid Media

Paid search

Display

Social (FB ads/sponsored tweets)

Mobile (ads)

Email

Owned Media

Mobile (apps/games)

Website content

Email

Social (FB pages, blogs, Twitter accts.)

Earned Media

SEO

Social (retweets/likes/

pins/shares/

reputation management)

Mobile (shares/reviews)

Paid/Owned Media:

Mobile ads, apps,

games

Social media ads,

Twitter content,

blogs

Paid/Earned Media:

Social media ads,

shares, likes,

reputation

management

Mobile ads,

shares,reviews

Earned/Owned Media:

Social likes, shares,

retweets

Mobile ads, shares,

reviews

Earned/Owned/Paid

Media

Social (ads, blogs,

shares, sponsored

content)

Mobile (apps, shares,

ads)


Demand Grows for Integrated Campaigns

From IBM’s 2013 State of Marketing Survey…Leading marketers want greater levels of integration in their

digital marketing suites

74% say campaign integration is the most important capability

Yet…

Only 31% actually integrate social and mobile marketing with other campaigns or programs


How Are Agencies Responding?

Diversify through Consolidation

vs.

Specialization


The Consolidators

95% of agencies and brand marketers are planning to add additional services in the year ahead, with 64% planning to add social media, 61% anticipating the addition of content management, 61% adding mobile and 58% looking to add SEO.

Source: Digital Marketing Depot Survey,

May 2013


Selected Holding and Media Company Acquisitions of Digital Agencies

Acquirer Acquired/Merged Date Notes

Aegis Group plc Communicate 2

I Spy Marketing

Catch Stone

Roundarch

August 2012

August 2012

July 2012

February 2012

India-based search agency

U.K.-based digital agency

Chinese digital agency bought for £55.2MM

Purchased for $125MM

Dentsu Aegis

Steak Group

Firstborn

Innovation Interactive (360i)

July 2012

June 2011

February 2011

January 2010

$4.9 billion purchase price

U.K.-based digital media agency

NY-based digital agency with animation and web

development services

Included digital agency 360i and PPC platform

IgnitionOne

Epsilon Aspen Marketing Services April 2011 Purchased for $345MM

Hearst Corp. iCrossing June 2010 Acquired for estimated $325MM

Interpublic Group FUSE

CUBOCC

Reprise Media

February 2012

March 2010

April 2007

U.K.-based digital agency

Brazilian digital marketing agency

Bolstered search marketing capabilities

Merkle IMPAQT March 2011 Added search to existing CRM capabilities

Publicis Groupe Big Fuel

Rosetta

July 2011

May 2011

Bought 51% of the social media agency

$575MM acquisition to complement U.S. search &

digital marketing brands

WPP Hungama Digital Services

Fortune Cookie

AKQA

DTDigital

June 2012

August 2012

June 2012

January 2012

India-based digital agency purchased by JWT

Acquired by WPP agency Possible Worldwide

$550MM purchase price

WPP subsidiary Ogilvy bought 33.3% stake in

Australian digital agency

Source: Third Door Media / Digital Advertising Agencies 2013 Buyers Guide

http://digitalmarketingdepot.com/research_report/digital-agencies-2013-a-buyers-guide?utm_source=smx&utm_medium=slideshare&utm_campaign=smx22b


July 28, 2013: $35 Billion Merger of Publicis Groupe and Omnicom Group

Omnicom Group

BBDO

Organic

Juniper Park

Clemenger Group

Proximity Worldwide

TBWA

Being

Designatory

Fame

Integer Group

Zimmerman Advertising

DDB

Alma

Interbrand

Tribal Worldwide

Uproar

Rapp

Rodgers Townsend

Kern Organization

Omnicom Media

Novus Media

Icon Int’l

Resolution Media

Team Ignition Pancultural

PHD

Fleishman Hilliard

GMMB

Ketchum


Publicis Groupe

PublicisWorldwide

PublicisModem

Leo Burnett Worldwide

LBW Arc

Lapiz USA

Amazon Advertising

DigitasLBi

MRY

Phonevalley

Saatchi & Saatchi

TeamOne

S&S X

Conill

StarcomMediaVest

Big Fuel

Spark SMG

Tapestry

MV42

SMG Performance

Marketing

ZenithOptimedia

Moxie

Ninah

Performics

Opimedia Int’l

Zenith Media USA

Razorfish


The Specialists

Boutiques or specialty agencies that provide channel-specific digital marketing services such as mobile messaging programs, social media marketing, or SEO link-building campaigns.


Growth In the Long Tail Agency Market

*Optify data

Established

Business

Identifiable

Agencies

North

America

121,000* long tail agencies

54,000

25

900

Largest

U.S.

agencies

Consolidated

Agencies


So What Does This Mean For You?


Specialist vs. One-Stop Shop

More granular channel strategy

More access to agency decision makers

Lower spending minimums

Diverse capabilities

Built in referrals

Network efficiencies


What or How Should You

Expect to Pay? Time Based Percentage of Spend Fixed Fees Retainers


How Do You Get Started?

RFIs/RFPs Referrals

http://www.slideshare.net/SearchMarketingExpo

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the 2013 digital marketing landscape by karen burka

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