report 2012

ISDI
TRENDS
2012
OBSERVATORY OF TRENDS
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The MIB reviews
the key factors
in the evolution
of the Internet
over the coming
months
Created by ISDI, the pioneering school of business in the digital environment, the MIB
(Master’s course in Internet Business) starts its fourth year as the leading company specialised in Internet training in Spain. This is the first Master’s course developed by Internet
professionals. Its goal is to train both entrepreneurs and professionals from different sectors so they can lead the digitisation processes of Spanish companies.
The coordinators of the main modules of the Master’s course have analysed and summarised the contents taught by over 110 professors in the MIB’s third class. They have
reviewed the trends and the changes in the market that will define the main aspects of
the Internet over the coming months:
DIGITAL
MARKETING
SEARCH ENGINES
DIGITAL
BUSINESS
ENVIRONMENT
CONTENTS
CREATIVITY
E-COMMERCE
ONLINE ADVERTISING
METRICS
LEGAL ENVIRONMENT
MOBILE
INTERNET
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TECHNOLOGY
SOCIAL
NETWORKS
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01. DIGITAL MARKETING
TRENDS
Two main changes will affect Digital Marketing
CHANGES THAT AFFECT THE MARKET
These trends bring dramatic changes not only for companies, but
also for customers:
THE SHIFT TO MULTI-CHANNEL CLIENTS
Companies should undergo a paradigm shift. Instead of focusing on shortterm sales only, they should also try to attract and retain customers that
will bring medium and long term value. Attracting clients through digital
channels allows us to identify them and classify them according to their
behavioral patterns. These data could then be cross-checked with data
about their interaction with the brand and its services. In many cases,
the social profiles of our customers will also provide us with relevant
information. We could use all these combined data to create customer
segments that will define the real value of our company for each customer.
This will allow us to design campaigns oriented to each specific profile. We
can also access these segments through the different channels that allow
the interaction between companies and customers, following customer
centric marketing strategies.
GAMIFICATION AS A LEVER TO
MOBILISE OUR DIGITAL CUSTOMERS
Gamification can be defined as the application of elements of game
playing in order to boost the customer’s interaction with our brand and its
services. Online companies are now developing strategies that encourage
their customers to adopt new technologies, complete questionnaires,
participate in promotions and complete purchases. This technique is
based on the fact that people is predisposed to play games, as well as on
the importance of meritocracy in social networks. The use of gamification
strategies has proven to be effective in improving the following metrics:
user engagement, ROI, data quality, user life time and learning process.
As for multi-channeling, the importance of digital customers
will force us to change our KPIs (the measurable values that
show how efficient our actions are). The new paradigm
states that retaining existing customers is far more important
than attracting new ones. As a consequence, new advanced
customer-management metrics such as ARPU, Churn and
Life Time Value must be introduced. Companies should also
look for a new professional profile that is able to understand
these new digital multi-channel customers. On the other
hand, customers are starting to be aware of how important
they are. They demand an impeccable service, and wouldn’t
hesitate to complain if companies fail to deliver it. Users are openly adopting gamification. Most digital pure
players incorporate gamification to some extent. However,
traditional businesses need to change their philosophy, and
sometimes, that of their managing board. It’s not easy for them
to understand that for some customers, being the Major of
Foursquare might be more important than getting discounts.
We must also understand that once the gamification process
starts, it will not stop.
 DIRECTOR
Nacho de Pinedo, ISDI CEO, Former Director of Marketing, Clients and Strategy at Canal+ and Digital+. <
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 LECTURERS:
Alberto Knapp Bjeren, CEO at The Cocktail, Juan José Peso-Viñals, Founder of Daemon Quest and partner in
Deloitte, David García-Pawley, Consumer Link Director at LG Electronics, David Gracia, Director of Marketing
Digital at the BBVA Group, Javier Bernad, Former General Manager at Mediacom and Mediaedge, Francisco José
Martínez, Consumer Marketing Manager at BBVA, and Miguel Esteban, Managing Director at Intelligence Partner.
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02. SEARCH ENGINES
TRENDS
Search engines will go through a new evolution. This will be much faster than
the previous one:
CHANGES THAT AFFECT THE MARKET
What will be the consequences of this dramatic revolution?
THE INTERNET IS GOING MOBILE
The unprecedented, abrupt irruption of mobile Internet will bring a second
digital revolution that will be even faster than the first one. Mobile Internet
penetration in Spain is quite high (57%), and soon it will define many
aspects of our daily lives. This represents a challenge for those companies
that are struggling to adapt to the digital environment, as they will need
to deal with a whole new mobile environment. On the positive side, these
factors can also be seen as opportunities. Users will become more demanding, more selfish, and, in a way, more
spoiled. The Internet allows the community of digital natives to access
information and to get answers to almost any possible question. But
these features will exponentially increase as mobiles allow a 24/7
connectivity.
On the other hand, companies will face a new challenge, as they
will be dealing with a larger number of users, more time and more
difficulties to satisfy their customers. They will need to develop new
strategies of attraction and conversion that perform well in a fast
moving environment. It won’t be easy, but that’s what the second
digital revolution is all about.
 DIRECCIÓN
Javier Rodríguez Zapatero, Director General de Google España Portugal y Turquía.
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 PROFESORES COLABORADORES:
Esther Checa, SEM and SMO Manager at T2O Media, Rodrigo Miranda, General Manager at ISDI
and Shackleton Buzz, Laurence Fontinoy, Marketing Manager at Google Spain and Portugal, Fuencisla
Clemares, Manager of Consumer Products and Retail at Google Spain, Borja Berzosa, Agency Product
Specialist at Google, and Alex Gibelalde, Product Marketing Manager at Google.
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03. CONTENTS
TRENDS
Contents become more specific as the user experience gets simpler and HTML5
becomes the standard for tablets and smart phones:
CHANGES THAT AFFECT THE MARKET
These changes will dramatically affect both businesses and consumers:
TABLETS AND SMARTPHONES
TRANSFORM THE CONTENTS:
Users are increasingly using tablets and smartphones as their primary
devices, replacing laptop and desktop computers. Mobile users are not a
majority yet, but this trend will accelerate in the near future as customers
keep choosing to use tablets over computers. This will lead to the
development of web experiences compatible with tablets (HTML5), with
simpler contents and experiences. New apps with specific functionalities
will be developed. On the other hand, this will represent a challenge for
companies as they will have to give support to multiple versions and
platforms, develop products for each peripheral, and deal with a poorly
developed advertising market.
When using computers, customers will expect the seamless, visually
attractive experiences that they already enjoy on their tablets.
This calls for a profound change in the re-design, the experience
of product information and the consumption of contents. These
changes will bring a new way of online interaction. Users will turn
to the most innovative companies.
Contextual e-commerce (the activity that takes place around related
contents in an online shop) and intelligent offer generation will
increasingly establish themselves as the best options to find the cheaper
prices through sustainable commerce.
 DIRECTORS
Javier Rodríguez Zapatero, General Manager at Google Spain, Portugal and Turkey.
 LECTURERS:
Germán Frassa, Director of Internet Projects at Unidad Editorial, Ismael Viejo, Deputy Director
at RTVE interactivos (RTVE.es), Mario Tascón, Founder of Lainformación and Poderoso Volcán,
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04. E-COMMERCE
TRENDS
E-commerce will face four main challenges over the coming months:
CHANGES THAT AFFECT THE MARKET
These trends will bring some changes such as:
LINKAGE BETWEEN THE OFFLINE AND
THE ONLINE COMMERCE:
The market (both from the customer’s and the companies’ point of view)
will start to erase the differences between the offline and the online shops.
New global strategies will be required.
DEVELOPMENT OF THE PAYMENT
METHODS:
Offline companies will have to embrace ecommerce and define their
strategies. Otherwise they will be left out of the market.
Users will have an increasing number of options, as apps will allow
them to fine-tune their shopping process as well as to find the
best prices. Users will become more active. They will recommend
products and share their preferences and shopping experiences with
their friends
Traditionally, this is one of the pending tasks of the online stores.
However, this situation will dramatically change over the coming months.
The irruption of mobile devices and new applications will transform the
payment methods, especially in the offline realm.
MORE COMPLEX FINAL LOGISTICS:
Delivering products will be an increasingly complex task due to the
competition, the development of new sectors, and the demands of the
customers. Delivery points and delivery periods will be a common thing.
Next-day delivery will also increase.
MARKET PROTAGONISTS:
The main characters in the market will be the food industry and Amazon,
especially since the launch of its Spanish site.
 DIRECTORS
Aquilino Peña, Former Managing Director at mediaedge&cía.
 LECTURERSS:
Nacho Somalo, President of Alice Europa, Antonio Mas, Founder and General Manager of
Ideaup!, Fernando Aparicio, Social Commerce Director at Amvos Consulting, Enrique Sánchez,
General Manager at MRW Integración Logística, Ruth Díaz, General Manager at BuyVip, and
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05. METRICS
TRENDS
As for metrics, two main trends will bring changes over the coming months:
CHANGES THAT AFFECT THE MARKET
How will these changes affect the market?
IMPROVEMENT OF THE ATTRIBUTION
MODELS:
Companies will optimise their attribution models in order to find data
that helps them to understand the relevancy of each channel in regard to
online sales.
COOKIES POLICY:
Branding campaigns will become more visible. As a consequence, the
investment in brand building will increase.
The new regulations about the cookies that allow for the monitoring of
customers and potential clients will have an impact on the future of the
online shops and their metrics.
Companies will be able to identify their clients by requiring them
to log in. Tools for identification and registration, such as Google
Connect, will develop
 DIRECTORS
Arnaldo Muñoz, European CMO at Vistaprint.
 LECTURERSS:
Jaime Agulló, General Manager at ComScore Iberia, Jaume Clotet, General Manager at Netsuus
ICO and Eduardo Sagüés, Country Manager at 888.Com.
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06. TECHNOLOGY
TRENDS
As in many other cases, the new trends affecting technology will bring crucial
challenges. Technology moves fast, and can be used to design very complex and
demanding business projects.
ANALYSIS OF LARGE AMOUNTS OF
DATA (BIG DATA):
As the amount of digitally stored data increases, companies and researchers
have plenty of potentially useful material that they can analyse. The challenge
for Big Data is to automate the analysis of the billions of interactions between
almost one billion Internet users, and to extract valuable information from
it. Facebook is one of the main examples. Some time ago, this social network
introduced a timeline in which users would sort out their own data. This
makes the data-mining process easier. Facebook is now able to get the most
out of the users’ data, which will allow for a very thorough segmentation
and knowledge of its users. This knowledge is what the advertisers actually
pay for. Google is following similar strategies, as the search engine is now
working with comprehensive data taken from searches, browsing, email and
the rest of the Google apps.
CHANGES THAT AFFECT THE MARKET
From the user’s point of view, these trends have many things in
common, as they are based on analysing data provided by the
users themselves. Companies will try to encourage users to provide
contents or data that will then be cross-checked in order to obtain
a result that will be greater than the sum of its parts. This will be the
next step in the web 2.0.
There’s already talk of paying users for releasing their data. There
are projects to develop social networks in which users will get paid
according to the amount of personal and activity related data that
they provide the advertisers with.
CROWDSOURCING:
Crowdsourcing can be defined as the creation of contents and/or products
based on the information provided by the users. These techniques are
increasingly used, as they allow to quickly solve complex problems.
USE OF REPUTATION ALGORITHMS:
These algorithms are extremely useful, as they allow to analyse the
‘advanced social reputation’ of potential customers. This is done by
analysing the opinions and information provided by other users, and could
be useful, for example, to determine the client’s credit rating or their
professional psychological profile
 DIRECTORS
Marcelo Royán, Co-founder of LogiQo.
 LECTURERSS:
Juan Antonio García Peredo, Foudner and Director of LogiQo, Pau Oliva Fora, Systems Manager
at KubiWireless, Andrés Pedrera, Technology Manager at RTVE, and Andrés Herrero, Head of
Development Projects at PRISA TV.
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07. SOCIAL NETWORKS
TRENDS
Social networks have lead one of the largest expansions of the digital culture,
and they are now reaching their maturity.
CHANGES THAT AFFECT THE MARKET
Users will relax, while companies will benefit from the use of Social Media:
END OF THE EUPHORIA. WIDESPREAD
USE OF THE SOCIAL MEDIA:
After the period of discovery (2004-2006), popularisation (2007-2009) and
unleashed euphoria (2010-2011), in 2012 the use of Social Media and
Social Networks became a standard. Companies such as Groupon, Zinga,
LinkedIn and Facebook are now listed on the stock exchange. This marks
the end of the ‘Social Media fad’, as these companies have established
themselves as the leading companies in the sector. Saturation has caused
the end of this cycle. The media and the analysts have talked about social
media for many years, and we all think that we know everything about
social media - as we use it on a daily basis. In addition to this, the poor
results in the stock market (and the unrealistically high expectations) have
led to underestimating the importance of Social Media. But Social Media is
here to stay. Its consequences are very real, and they are already part of our
society and our business culture. The fact that Social Media has become a
commodity confirms the need for social media training and strategies.
We can expect that users will become more relaxed and specialised
in the use of Social Media, as they learn more about social tools.
Following the investment and stock market euphoria, companies will
try to make their business profitable through advertising and paid
services.
Social Media Marketing is a reality for most companies. From the
smallest business to the largest corporation, all of them have their
own social media strategy. All companies try to capitalise on social
media while minimising the risks, depending on their sector and
potential targets. In the future, consulting agencies will increasingly
offer outsourcing services to small and medium size companies. Large
corporations will have teams specialised in managing their social
media, as part of their golbal strategies of marketing, communication
and customer support. Perhaps the future will bring new tools and
brands, while others sink into oblivion. Maybe we will be using mobile
devices more often than our desktop computers, but one thing is for
sure: companies must not forget that Social Media is a reality that has
a very real impact on their day-to-day operations
 DIRECTORS
Miguel Ángel Díez Ferreira, Founder and Ceo of Red Karaoke.
 LECTURERSS:
Julio Alonso, Founder and General Manager of Weblogs, Luis Remírez de Esparza, Social Media
Marketing Director at Nethink, Daniel Pérez Colomar, CEO and Founder of Stop & Walk, and
Germán Martínez, Sales Manager at Facebook.
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08. MOBILE INTERNET
TRENDS
The use of Mobile Internet is exponentially growing all over the world, and also
in Spain. This will speed up the digitisation of our society to unimaginable levels.
MASSIVE USE AND PENETRATION OF
SMARTPHONES AND TABLETS:
The increased penetration of Mobile Internet will imply:
CHANGES THAT AFFECT THE MARKET
The massive adoption of the Mobile Internet will bring a huge change
in the lifestyle of its users. This will have dramatic social consequences,
as we will be even more connected.
• The development of native mobile apps and HTML5 apps. This
will stimulate an even greater penetration of the Mobile Web.
• An increase of mobile advertising at a faster pace than any
other media (including the Internet).
• Mobile access to social networks will account for over 50% of
the total.
The greatest change will occur at the business/brand level. Mobile
marketing, advertising and connectivity will have an even greater
impact than in 2012. Several successful mobile-oriented companies
will appear, and we’ll witness a widespread adoption of tablets in
businesses.
• In 2013, convergence between smartphones and smart TVs
will be frequent.
• The user experience will improve thanks to new technologies
such as the 4G network and other customised services that
will contribute to the creation of a new lifestyle based on
mobile connectivity.
DEVELOPMENT OF THE MOBILE
COMMERCE:
The most important trends will be related to SoLoMo strategies (Social,
Local, Mobile). In addition, mobile interaction in physical shops will be
common in just a few months.
MOBILE PAYMENT:
Several mobile payment platforms will be launched. The adoption of these
platforms will depend on the infrastructures developed by each of the
components of the value chain.
 DIRECTORS
Fernando González-Mesones, B2C World President at Buongiorno.
 LECTURERSS:
Salvador Carrillo, CEO of Mobile Dreams Factory and Member of the Managing Board of
MMA Europa, Álvaro Alonso, Co-founder of Adnstream and Daniel Cervantes, General
Manager at Microsoft Entertainment.
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09. LEGAL ENVIRONMENT
TRENDS
The demands of the users will define these trends:
CHANGES THAT AFFECT THE MARKET
Operating costs will increase
USERS WILL BE MORE CONCERNED
ABOUT PROTECTING THEIR DATA:
Data protection will generate great controversy. Internet users are
increasingly maturing and are becoming more and more concerned about
how media providers treat their personal data. On one hand, the Internet
has become social and we all consciously share some of our personal data.
On the other hand, users demand that the service providers make a licit and
adequate use of these data. Issues such as the ‘Right to digital oblivion’ will
arise.
Digital companies will need to spend extra money on managing
their customers’ data. Those companies with good data managing
practices will have a competitive advantage. Users will be more and
more concerned about the implications of the Web 2.0.  DIRECTORS
Ventura Barba, Founder and Director of Tenzing Media
 LECTURERSS:
Juan Carrasco, Manager of the IT Department at Santiago Mediano Lawyers, and Javier
Berrocal, Founder and Managing Partner at Santiago Mediano Lawyers.
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10. ONLINE ADVERTISING
TRENDS
Brands bank on efficiency as well as on campaigns that can be easily measured.
B RANDS NEED CAMPAIGNS THAT CAN
BE MEASURED:
Advertisers opt for measuring models that go beyond the observation of
events. In other words, they adopt attribution models that allow them
to define whether a specific target has been achieved or not. This is a
symptom of digital maturity: The belief that ‘everything can be measured’
or that ‘you can determine the exact ROI of everything you do’ has created
short-sightedness with regard to understanding that merely counting
impressions, clicks and conversions is not enough to measure the efficiency
of our communications. CHANGES THAT AFFECT THE MARKET
Companies (especially when the crisis strikes) need to give metrics
a more important role. This means that they might need to recruit
qualified staff and adopt new technologies and working methods
As for users, there are enormous benefits. As the interpretation of the
data related to the communication improves, segmentation will also
get better. As a consequence, users will get more relevant results. In
conclusion, over the next year, new steps towards a more efficient
communication will be taken
SOCIAL ENVIRONMENTS ARE ALSO
PART OF THE METRICS:
Brands need to give a credible business value to the social environment
metrics. Understanding the value, the distribution and the socialisation of
these contents, as well as their influence on the purchasing process, is of key
importance.
 DIRECTORS
Gabriel Saénz de Buruaga, Founder and co-CEO of WINK, Transforming Through Digital.
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 LECTURERSS:
Carina Szpilka, CEO of ING Direct , Juan Domínguez, Founder and General Manager of
Red CPA, Sonia Fernández, General Manager at Vindico Group Europe, Hugo Llebrés,
Managing Director at MEC, Gonzalo Madrid, Former Head of Strategy at Havas Digital,
and Chechu Lasheras, Regional Manager for Spain, Portugal and Latin America at Zanox.
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11. CREATIVITY
TENDENCIAS
As in other cases, the demands of the customers will play a key role in
transforming the market. For example, in advertising:
USEFUL SOLUTIONS WILL REPLACE THE
TRADITIONAL MESSAGES:
Customers are increasingly demanding, and will not be satisfied with just
a simple message from the brand. They will require the brands to provide
valuable, useful solutions. Technology is a powerful ally that brands should
use to generate this value. The Honda, Connecting Lifelines campaign (http://
internavi-dots.shipoo.jp/landing_cl_all_e.html) is a great example. CHANGES THAT AFFECT THE MARKET
Consumers and technology are way ahead of the creativity
and advertising departments. In response to the demands of
the users, brands are now closer to their customers. This has
also transform the way in which advertisers and advertising
agencies work. Brands now communicate and relate through
each and every action. This shift of paradigm requires a greater
coordination of the departments involved in this process
STORYTELLING BECOMES A MORE
COMPLEX AND FRAGMENTED
PROCESS:
The digital environment allows us to tell stories in an audiovisual format
without time limits. But this audiovisual language is giving way to a new one
in which stories connect different formats and media. The interconnection
of different digital realities expands the scope and the engagement. The
Jay-Z campaign by Bing was the first example of this new trend.
BRANDS GO WHEREVER THEIR
CUSTOMERS ARE:
The Creativity departments focus on reinforcing the presence of the brand
in the environments where the customers are, instead of trying to attract
them to the company’s site. That is, of course, a formidable challenge.
 DIRECTORS
Marcel.li Zuazua, Member of the Manging Board of Herraiz Soto & Co. <
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 LECTURERSS:
Rafael Soto, Founding Partner and Executive Creative Director of Herraiz Soto & Co, Quico Vidal,
Founding Partner and Director of Nadie - The Creative Think Tank, Kuki Bastos, Former Creative Director
at Publicis Modem, Daniel Solana, President of Double You, Félix del Valle, Executive Creative Director
at Contrapunto BBDO and Adolfo González, General Manager and Creative Director at Wysiwyg.
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12. DIGITAL BUSINESS MANAGEMENT
TRENDS
The following trends will transform the Digital Business Management models
LARGE CORPORATIONS WILL ADOPT
THE START UP CULTURE:
Companies are aware that their chances of surviving depend on how they
adapt to the transformations brought by the Internet. Succeeding in the
digital world requires a shift of paradigm inspired by the startup culture.
This transformation will require:
CHANGES THAT AFFECT THE MARKET
Companies will start selling directly to their customers, establishing
a direct, bi-directional dialogue from which the two parts will receive
feedback. The possibilities offered by the Internet will turn this
dialogue into a CRM that will allow companies to crosssell and upsell
their products.
• Redesigning works and processes.
• Market rethinking and scalability. Speeding up mergers and
acquisitions.
• Constantly rethinking the business model and strategies.
• A new professional philosophy based on merits, stock options,
specialisation and projects
THE CONSUMER SECTOR WILL LEAD
THE DIGITISATION PROCESS:
As a consequence of the communication and advertising disintermediation,
brands will take the initiative in their relationship with the final customer.
 DIRECTORS
Alberto Díaz, CEO of Digital Migration Partners  LECTURERSS:
Miguel A. Acosta, Partner of BeRuby, Luis Martín Cabiedes, Founder of Cabiedes &
Partners, Pablo Larguía, CEO of La Red Innova, y Javier López de Haro, Digital Strategy
Manager at Openbank.
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www.isdi.es
Tel. 900 814 144
informacion@isdi.es
@ISDI_edu
FOR FURTHER
INFORMATION
Cristina del Gallo /
Rafael Delgado
prensa@grupoformedia.com
FORMEDIA
Phone.: 915628100
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