Tablets to Outsell Notebooks in 2013

Tablets to Outsell Notebooks in 2013
Online advertising now 25% of U.S. ad budgets; mobile key to growth

Two important milestones were reached for B2B marketers this week. First, tablets are expected to outship notebooks this year, according to separate report this week from NPD DisplaySearch and Gartner. Second, U.S. marketers will devote at least 25 percent of their budgets to online advertising in 2013.

For the first time ever, researchers predict that tablets will grab more than 50 percent of market share in 2013, up from around 38 percent last year and 26 percent in 2011. Growth in tablet shipments are predicted to rise 64 percent this year from 2012, the report said. Global demand for tablets has opened up the market for a variety of players, both large and small. But, what caught our attention was that growth will not necessarily be driven by the iPad, but by a variety of devices, particularly those with smaller screens. Apple recently curtailed order for iPad parts, although we think the company’s recent stock slide is a correction more than a long-term trend and might signal a buying opportunity for those looking for bargains in the tech sector.

“Tablets have dramatically changed the device landscape for PCs, not so much by cannibalizing PC sales, but by causing PC users to shift consumption to tablets rather than replacing older PCs,” according to Gartner analyst Mikako Kitagawa, in the report. “This transformation was triggered by the availability of low-cost tablets in 2012,” he added.

According to the NPD folks, tablets with screen size between 7.0 and 7.9 inches will garner 45 percent of the market this year--that’s about 108 million units. In contrast, larger 9.7-inch tablets such as the traditional iPad are estimate to get only a 17 percent share of market. The other 38 percent is made up of the wide variety of sizes, ranging from 5.6 inches to 13.3 inches.

"The tablet PC market saw increasing investments in North America in the second half of 2012, from major brands that tested not only new screen sizes and price points, but also unconventional business models to support their efforts," NPD DisplaySearch analyst Richard Shim said in a news release. "In 2013, further investments are expected worldwide, stoking demand to the point that tablet PC shipments will exceed those of notebook PCs."

Online poised for 25 percent share of ad dollars; mobile fueling half the growth

Meanwhile, online advertising will pass a symbolic milestone this year, becoming one out of every four dollars spent by U.S. advertisers, according to new projections from the equity research team at J.P. Morgan. The growth, writes Internet sector analyst Doug Anmuth, is being fueled by advertisers shifting budgets from analog media to follow consumer time spent with digital media, especially Internet connected mobile devices, as well as continuing momentum of social media platforms like Facebook which announced a powerful search feature today to compete with Google, Yelp and LinkedIn.

“As consumer behavior and time spent online rapidly shifts towards mobile, we expect advertising dollars to follow,” Anmuth wrote in a report released to investors late last week, adding: “We are projecting Internet advertising in the U.S. to grow to $43.5 billion in 2013.”

The J.P. Morgan estimate represents a 17.4 percent gain over 2012 online ad spending levels. As a result, online media will be receiving one out of every four dollars in 2013 U.S. ad budgets. That being said, Anmuth estimates about half of that growth will be coming from mobile Web ad spending, and without the mobile component, the uptick in online ad spending would be only about 10 percent from 2012.

Conclusion
Two key tipping points have finally tipped. Do you think the surge in tablet adoption and online/mobile advertising is merely a coincidence? C’mon. You’re too smart for that. Do we really need to tell you where to focus your energies in 2013?

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TAGS: Android, Tablets , iPad, notebooks, Apple, Doug Anmuth, J.P. Morgan, Gartner analyst Mikako Kitagawa, NPD DisplaySearch, Richard Shim, Facebook, Facebook, Google, Yelp, LinkedIn

Do Busy Professionals Have Time for Social Media?

Most will tell you it’s a ‘must do’, but tweeting and posting is just the tip of the iceberg. If you’re not carefully planning, adjusting and measuring the right things, then you’re just adding to the noise and making yourselves look worse



Chief Marketer’s recent survey of CMOs found that friends, followers, likes, shares forwards and retweets are still the most popular social media metrics. Why? Because they’re easy to measure. But, as Internet Marketing Report (IMR) revealed in today’s print edition, these easy metrics (we call ‘em McMetrics here at HB) just tell you how wide your reach is. IMR said leads and sales are far more accurate indicators of ROI. For instance, 60 percent of CMOs surveyed said they looked toward “friends, followers and likes” as indicators to measure social media success, but only 35 percent said they monitored qualified leads from social media and only 25 percent measured sales attributed to their social media platforms.

Communicating in a microwave society

And that’s a challenge, because technology is changing so fast. We’re so busy trying to keep up with technology that we’re not really becoming more effective communicators—let alone brand builders or reputation enhancers. “Our culture moves at warp speed, no question, the weekly or even daily news cycle long since replaced by an up-to-the-second Twitter feed of Facebook update,” wrote Sports Illustrated’s Richard Hoffer last week. “We said goodbye to thoughtful consideration the day we moved over to microwave popcorn.”

Fortunately Google Analytics and others will soon enable users to track how well their social media efforts are paying off in real e-commerce dollar terms. Disclosure: Our firm has no commercial ties or partnerships with Google.

Companies that enable the e-commerce tracking feature on their free version of Google Analytics will soon be able to produce a “social value report” that shows conversions or sales that came directly from visitors to your social media site and “assisted conversions” that come within a set interval (say 30 days) of when a visitor interacted with one of your social media pages.

As Hugh Duffy, head of a practice development firm for CPAs noted on his blog last week, time is one of the biggest resource investments you have to consider when embarking on a social media strategy. Citing research from my good friend, Rick Telberg, of Bay Street Group Research Duffy noted there’s a strong correlation between high performance and technology adoption at firms.

To do it well, it will take up a great deal of your organization’s time and energy to launch it, maintain it and perfect it. But will it bring you more business? And how long do you keep trying until you know whether or not you’ll be successful at developing a meaningful and profitable online presence?

Only you and your colleagues can be the judge? But before you start throwing stuff on the wall to see what will stick, you must have a clear timeline, clear assignment of responsibilities and clearly defined success metrics that everyone can buy into. That way you’ll know when it’s time to ramp up or clean up the mess, if it’s just not working out.

Your clients and stakeholders are depending on you. They’ll respect you for trying new ways to reach them. And they’ll respect you even more for not throwing good money (and time) after bad when it becomes apparent that some of your social experiments may not be their cup of tea.

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Thriving in a SOCIAL ‘Vucu’ Climate for B2B Marketers

Forget the markets and employment numbers. 10-year forecast might be easier to make than a one-week call

“I could probably make a 10-year forecast easier than a one-week forecast,” quipped Rod Smythe, Chief Investment Strategist of Riverfront Investment Group at a high-end wealth management conference we attended on Tuesday.

Whether it’s the financial markets, the job market, pro sports or even the weather, we’re in an incredibly volatile time and this era of uncertainty is wreaking havoc on our collective psychology. Smart B2B marketers will stay focused on their long-term goals without panicking or chasing the next fad. Just be ready for a lot more VUCU. We’ll get to what vucu means in a minute. In the long run, we’ll get through this and in many respects we’re already there. Say what?

Just two weeks ago, I was swimming in Long Island Sound on an unseasonably warm October day. Stocks were plummeting as the U.S. seemed destined for a double-dip recession and Greece and other Euro Zone players were headed for a sure default on their debt.

How quickly things change. Monday I was trick-or-treating in the snow with my kids here in the Northeast. Stocks are back to break-even for the year and have risen significantly as economic data suggests we’ve fended off the threat of a Euro Zone meltdown, a double-dip recession, and stronger than expected corporate earnings. China’s hyper-growth economy (and inflation risk) slowing and last week’s GDP results showing 2.5 percent annualized growth in Q3, our strongest effort in a year.

So, while personal income is falling, consumer spending has risen at a 2.4 percent annual rate–three times faster than Q3 according to the latest government stats. Despite a persistently high percent unemployment rate, confidence may be returning. Credit card debt is inching higher, sales of cars and major appliances are rebounding and consumers are hording a lot less in their savings accounts (again).

Living in a vucu world

We’re living in a “vucu” world, said Dana Anderson, a Kraft Foods marketing VP who was widely quoted at last week’s Association of National Advertisers conference in Phoenix which attracted a record 1,700 attendees.

Not familiar with Vucu? It stands for volatile, uncertain, complex and ambiguous which is going to require a new set of skills she said. Marketers and advertisers will need learn from experimentation, and be open to intuitive, rather than rational solutions to problems.

OUR TAKE: Amen to that, but much easier said than done. True, tough times call for bold steps and recessions have historically fostered some of the greatest innovations. But, when millions of salaried media workers are scared to death of losing their jobs, the risk of a failure pinned to one’s performance review is a stronger deterrent than usual.

Business spending hot, hiring is not

According to the Commerce Department, business increased their capital investments at a 17.4 percent annual rate. Economists say business spending has been strong throughout the recession, an optimistic sign because investment in factories, offices, equipment and software is often a run up to hiring.

And from a micro-perspective, the office building in which we work was less than half full when we moved in two years ago. It’s 100 percent occupied now. That’s right. No vacancy!

Is technology replacing humans in the workforce?

According to the authors of “Race Against the Machine” a just-released book by Erik Brynjolfsson and Andrew McAfee is a scary deep-dive into the job fallout from advances in technology. The authors, who are directors at the MIT Center for Digital Business, warn that automation has picked up in recent years because of a combination of technologies including robotics, numerically controlled machines, computerized inventory control, voice recognition and online commerce.

Since the “official” end of the recession in mid 2009, payrolls have been flat, but corporate spending on equipment and software has increased 26 percent, they note. According to Factset Research, the productivity gains from technology seem to be falling to the bottom line. The S&P 500 companies are expected to report record profits—nearly $1 trillion--and the corporate profit share of the U.S. economy is at a record high when millions are out of work or facing foreclosure of their homes.

It’s true that hundreds of thousands of sales and marketing jobs have been lost or impacted by technology, but Brynjolfsson and McAfee argue companies still need humans for many higher level tasks requiring intuition, creativity and solutions. Leave narrow, literal minded assigned tasks to the computers they advise and smart humans—including B2B marketers—will learn how to create a “partnership” with technology.

SOCIAL, and we don’t mean Facebook

Marc Benioff, founder of the popular cloud-based sales CRM solution, Salesforce.com, frequently says we’re in the midst of an IT revolution based on the acronym SOCIAL—S is for speed; O is for open; C is for collaboration; I is for individuals who can now instantly reach around the world to network and collaborate; A is for alignment (all your ships moving in the same direction) and L is leadership, both top down and bottom up.

In a New York Times Op-Ed piece, Thomas Friedman, quotes LinkedIn CEO, Jeff Weiner on the power of the IT revolution: “It makes it easier and cheaper for anyone anywhere to be an entrepreneur and have access to all the infrastructure of innovation.”

OUR TAKE: Whether you’re a sole practitioner, a 10-person regional outfit or a Fortune 500 powerhouse, you need to have everyone—and every machine—at your organization aligned and in a nimble entrepreneurial mindset. Make some mistakes. Make ‘em hard and fast and see how quickly you can learn from those mistakes.
That’s how we’ll get out of this economic first gear and great B2B marketing is what’ll get us into the overdrive phase.

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Blogging Remains Top B2B Content Marketing Tactic

Whatever is old is new again. Timeliness and relevance still reigns in this instant message, zero-attention span environment.

What’s the top B2B content channel to support your primary marketing objectives? Facebook? Twitter? Youtube? Webinars? Actually it’s blogging, the good old fashioned workhorse of business thought leadership, according to a new Focus Research report on the challenges and priorities of B2B marketers.

According to researchers, nearly two in five (39%) B2B marketers cited Blog Posts as their No. 1 type of content to support their primary marketing objectives. Webinars and Virtual Events came in next, cited by 38 percent of respondents, followed by Industry Whitepapers (31%), Videos (23%) and Data-Driven Research Reports (20%).

OUR TAKE: This research shouldn’t surprise you. In today’s fragile “wait and see” business climate, sales cycles have gotten longer. That’s increased the need to keep your prospects engaged during the consideration phase of the sales cycle. To that end, smart marketers are providing valuable content to decision-makers and influencers at their target customers. Blogs have been particularly successful as they can be updated and delivered much faster than a webinar, video or white paper—but with a lot more “meaty content” than a banal twitter post or Facebook “like.”

Blogs drive traffic and search results

Hubspot’s latest study shows that the number of companies actively blogging has grown to 65 percent today from 48 percent in 2009. Here’s why. Researchers found that companies that blog have 55 percent more visitors, 97 percent more inbound links and 434 percent more indexed pages than companies that don’t blog.

But, I’m not a writer

You don’t have to be a journalist—or hire one on staff—to create a meaningful blog for customers. You just need to show customers you understand their pain points and can help them solve their problems. If you understand your market, you’ll never run out of material. You can alternate an opinion post one week with a customer testimonial the next week, with an employee (or product) spotlight the next week with a short how-to article the next. Still not enough? Then try linking out to articles or research in the trade publications your prospects follow and then comment on the article with your authoritative spin on whether you agree or disagree with the findings.

“Blogs are a great way to get your name out there as a thought leader—and search engines love them, Bill Sheridan told us over coffee the other day. Bill is the editor and electronic communications manager of the Maryland Association of CPAs a very progressive professional society when it comes to connecting with members in this electronic age.

So don’t worry about being a writer, or even a hotshot blogger. Just be the expert in your target niche and if nothing else, be the best friend of your customers, prospects and decision-influencers at your target companies. Give them some ammunition to convince their boss, CFO or board and they’ll be your advocate for life.

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Don’t Sweat the Stock Market, Sovereign Debt crisis or Jobs Report

There’s lots of work to be done and companies are spending money. They’re just not hiring full-timers to do it. Be wary of over-weighting your marketing portfolio on Facebook.

It’s a lazy, muggy Saturday in August. Like millions of American’s we’re headed to the airport, but not for vacation. We’re on our way to a hot, landlocked Midwestern city for the start of a client’s biggest annual convention. That’s right. It kicks off on the first Saturday in August, goes full tilt first thing Sunday morning and extends only into Monday for most attendees. Perhaps it’s a sign of the times, but more and more B2B event organizers have realized that to attract a crowd in this zero-job-security economy, they’ve got to minimize the amount of time attendees spend out of the office. And they better stress the educational and business development parts of the conference, and de-emphasize the aura of a drunken social junket.

We’re not going to spend much time here re-hashing yesterday’s jobs report and the roller coaster week on Wall Street. From a glass half full perspective, it wasn’t so much the 120,000 new people added to American payrolls last month, it was the breadth of the new jobs, as many sectors—not just one or two-- showed some initial signs of hiring activity. Are we worried about the bloodbath on Wall Street which essentially wiped out the entire year’s worth of gains in 2011? Not so much. The market has long been decoupled from the overall economy as corporate earnings are more a factor of (a) low interest rates; (b) relatively easy access to credit and (c) the ability to sustain operations with fewer employees which improves the bottom line.

NOTE: None of the aforementioned factors are sustainable in the long term—especially doing more with less, as frustrated underappreciated workers will bolt for the doors when the job market eventually improves. While many are concerned about the debt ceiling right now, we’re more concerned about the “Great Brain Drain” that will eventually devastate companies who don’t start taking better care of their burned out talent.

OUR TAKE: If you’re a savvy B2B marketer, business are being very selective about how they spend their dollars for advertising, capital improvements, technology and raw materials, but they ARE spending—and they’re doing so at a healthier clip than individual American consumers. Our advice, be just as selective about who you target and fortunately there are a great many tools out there to help you stay hyper focused on the best prospects for new business.

If you’re waiting for us to start trumpeting the merits of mobile and social media, you’ll be disappointed. There are hundreds of thousands of other blogs you can spend time with. We just want you to be smart about how you use these widely publicized, albeit hard to measure tools. And just like the financial advisors whose balanced portfolio approach will successfully guide their clients through the latest financial crisis, you don’t want your marketing portfolio too heavily invested in any single channel.

Face the facts about Facebook

New research indicates that Facebook shouldn’t automatically be the linchpin of your social media strategy. Data from ROI Research, Inc. found that companies who actively use social media found Twitter more effective than Facebook for getting your customers/followers to talk about your product or service, recommend it to friends and buy it. ROI researchers found Twitter to be 13 percent more likely than Facebook to induce followers to attend your promotional or sponsored event; 12 percent more likely to talk about your company or product; 6 percent more likely to recommend your company or product and 12 percent more likely to link to an ad for your company or product.

And that’s not all. Upstart StumbleUpon.com recently unseated Facebook as the No.1 social media site for referring traffic to other website, according to the web analytics firm, StatCounter. If you haven’t checked it out yet, StumbleUpon.com is a search engine that finds and recommends videos, articles and other web-based content to you based upon your tastes and the interests of your peers.

Finally, a Smartbrief poll on Social Media found that marketers and others interested in social media in business say their companies have not lost money because of social media, but more than 25 percent said they “spent too much on maintaining a social presence for the level of return we’re seeing.” Another 3 percent said they lost money because of legal issues, leakage of sensitive information, or brand damage.

Bottom line. You need to use the tools that most effectively connect you to your clients, customers and prospects for the long-term. You don’t need to be cool for the sake of being cool. Don’t be afraid to experiment. But just like investors who chase the latest fad, marketers who chase the latest cool communication tools without carefully weighing its merits and pitfalls will get burned in the long run.

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