Today's brands have to deal with increasingly well-informed consumers. While the majority of products is still purchased at local stores, more and more people search for those products online and make up their mind browsing through reviews and recommendations. We spoke with Scott Galloway, Professor of Marketing at NYU Stern and founder of think tank L2 about the latest shifts in brand positioning and digital marketing.
Based on your research, what are the most relevant recent trends in digital marketing?
Mobile, omnichannel and the rise of email/CRM.
How is the digital sphere changing the store experience?
60 percent of smartphone owners now use their device while shopping. Many people are treating stores as warehouses, where they take delivery of a product they emotionally already purchased online.
Will the digital sphere eventually replace stores or will it remain important to offer both experiences?
Stores aren’t going anywhere. Digital’s power will be recognized via the influence it has on people’s purchase in-store. Only 10 percent of retail is e-commerce, however 40 percent of purchases are influenced by digital.
Scott Galloway spoke at the DLD11 fashion panel with Natalie Massenet, Vanessa Friedman, and Margareta van den Bosch.
How relevant is social media in this context? Is it recommendable to be present on all channels?
There is a cumulative effect when you program across multiple channels. However, most brands do not need to be present on every platform. Today, only 2.7 percent of traffic to brand sites comes from social media platforms – versus 8 percent and 33 percent for email and search, respectively. There is still a lot of blocking and tacking to be done around basics (search, CRM, etc.).
Which channels and platforms are on the rise?
YouTube, and video in general, is playing an increasingly important role online and in the purchase funnel. If a consumer watches a two-minute brand video, they have a 40 percent chance of being in-store looking for the product within 30 days. In 2012, YouTube was a top 8 referral source for brands 40 percent of the time (up from 20 percent in 2011).
What is the most relevant shift, brands need to consider?
Likely, within 3 years, the majority of time spent on brand sites will be on a mobile device, yet most brands continue to focus their efforts (programming, resources, etc.) on a desktop experience.
Can you give us a sneak peek of your talk at DLDwomen?
Scott Galloway will speak at the upcoming DLDwomen conference, taking place in Munich July 15 - 16, 2013. Apply for a ticket to this exclusive conference, tune in on the beat of our community on the DLDpulse and find regular updates on the DLDw13 programme and speakers here.