DIGITAL

DOPAMINE
2015 GLOBAL DIGITAL MARKETING REPORT
FROM RAZORFISH
TABLE OF CONTENTS
CHAPTER 1: A GENERATIONAL CHASM 4
Marketers are underestimating the digital divide between
Millennials and Gen Xers in the United States.

CHAPTER 2: THE DIGITAL EXPERIENCE ECONOMY 11

Brands need to focus more on being useful than on
being interesting.

CHAPTER 3: SEAMLESS COMMERCE 17

Omni-channel customers still encounter a number of friction
points as they dip between online and offline platforms in search
of cross-channel convenience.

CHAPTER 4: DIGITAL CONDITIONING 25

While we usually focus on the rational benefits of technology,
digital interactions also affect us on a biological and emotional level.

CHAPTER 5: EMERGING MARKETS IN THE FAST LANE 31

Consumers in Brazil and China have higher expectations of tech-enabled
experiences than other regions, making them important markets to watch.
EXECUTIVE SUMMARY

The Internet, that endless environment for creation and obsolescence, is

a strange place. Ideas that were once dominant now face irrelevance,
as new digital developments displace them. This transformation occurs
rapidly, and marketers are constantly struggling to keep up. Therefore,
in preparation for tomorrow, Razorfish took a deep dive into the qualitative
and quantitative data of four international markets (the United States,
the United Kingdom, China, Brazil) to examine the ways in which digital
technology is shifting traditional brand-consumer relationships. From
uncovering global commerce expectations to identifying the effect of
digital on our subconscious, this research set out to expose the key
trends shaping marketing.

In addition to exclusive market data, this report provides marketers with

a blueprint for how to incorporate and adapt to these critical findings in
2015 and beyond.

RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 1

EXECUTIVE SUMMARY

WE’RE NOT DRAWING BIG YOU BUILD LOYALTY THROUGH CROSS-CHANNEL CONVENIENCE GOOD DIGITAL EXPERIENCES
ENOUGH DISTINCTIONS USEFUL EXPERIENCES, NOT IS THE NEW “OMNI-CHANNEL KEEP US LOYAL, EVEN IN THE
BETWEEN GEN XERS AND 30-SECOND TV COMMERCIALS INTEGRATION” FACE OF INFINITE CHOICE
MILLENNIALS ONLINE
Over the last few years there have Today’s access-at-our-fingertips
Though the generation gap is been many loud proclamations, culture means that consumers see We’re spoiled for choice online with
hardly more than a decade old, peppered with alarming statistics, little difference between online and an infinite number of e-commerce
U.S. Millennials and Gen Xers surrounding the death of brand offline shopping. What matters is and entertainment options just a
have hugely different relationships loyalty. Only one in four Americans cross-channel convenience. And URL away. While you’d think that
with technology. Ten years is an say they are brand loyal according yet, rather than work seamlessly the abundance of options available
eternity in Internet time. While the to a recent study by Ernst & Young, together, online and offline to us online would make us fickle in
differences between Millennials something many academics blame customer journeys are often riddled our click-throughs, the overwhelming
and Boomers have been copiously on the Internet. As it turns out, with easily avoidable dead ends. number of choices means that when
explored, there are interesting loyalty isn’t dead, but digital has Cross-channel return policies are we find an experience that works,
differences between Millennials fundamentally redefined what it one major point of friction: more we’re more likely to stay loyal to it.
and Gen Xers that have yet to be means. So, what does this mean? than two-thirds of consumers in the
fully uncovered. One of the most This has profound implications United States, the United Kingdom In Chapter 4, Digital
important areas of difference is on how you communicate with and Brazil (71%, 69% and 77%) Conditioning, we take a look at
in how they shop: 56% of U.S. consumers—and how you spend say they will only purchase products how digital interactions affect our
Millennials say their phone is their your advertising budget. online when there is an option brand loyalty on a biological and
most valuable shopping tool to return them, should they be emotional level.
in-store compared to just 28% of As discussed in Chapter 2, The unsatisfactory.
U.S. Gen Xers. Digital Experience Economy,
people are going out of their way In Chapter 3, Seamless
In Chapter 1, A Generational to avoid advertising and, instead, Commerce, we examine the ways
Chasm, we look at the digital are looking to brands to make their in which digital disappointments
divide between the generations lives better, particularly via digital negatively impact brand loyalty.
and what this means for how they solutions.
interact with brands.

RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 2

EXECUTIVE SUMMARY

BRAND LOYALTY ISN’T

BRAZIL AND CHINA HAVE
NOTABLY HIGH EXPECTATIONS
OF DIGITAL EXPERIENCES
In Brazil and China, Internet

DEAD, BUT DIGITAL

penetration remains relatively low.
While you might expect that this
would result in a less-demanding
connected population, the exact

HAS FUNDAMENTALLY
opposite is true. The people who
are online in these two countries
tend to be more tech-savvy than

REDEFINED WHAT IT
their respective general populations
and, as a result, have heightened
expectations of their devices
and brands in the digital world.

MEANS. SO, WHAT DOES

Consumers in Brazil and China,
for example, hold e-commerce sites
to a higher standard than other
markets; 79% and 87% of people in

THIS MEAN?
those countries, respectively,
believe that most online shopping
sites need improvement compared
to 52% in the U.S. and 50% in
the U.K.

In Chapter 5, Emerging Markets

in the Fast Lane, we examine how
digital experiences have a bigger
impact on loyalty in these markets
than one might initially believe.

RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 3

 CHAPTER 1: A GENERATIONAL CHASM
Marketers are underestimating the digital
divide between Millennials and Gen Xers in
the United States.

KEY INSIGHTS:

1 Mobile dominates the Millennial shopping experience. A Millennial’s smartphone is their

key to the world. As mobile payment technology grows, mobile is going to become an
even more important part of the overall brand and retail experience.

2 Millennials draw no practical distinction between online and offline. Millennials’ constantly
connected smartphones mean they no longer see a difference between “online” and
“offline.” Technology has become an integral part of their lives, and it is how they interact
with and experience brands, even when in traditionally “offline” environments. They don’t
use media in silos. Rather, they use all of the tools at their fingertips at any given time,
regardless of the device or platform.

Millennials are redefining privacy expectations. When compared to Gen X, Millennials

3 are more likely to trust brands to protect their privacy—and less likely to think that mobile
targeting is an invasion of privacy.

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 4

 “MILLENNIALS EMBRACE AND ENGENDER NEW
TECHNOLOGIES. THEY INFLUENCE THE TRENDS AS
MUCH AS THEY ADJUST TO THEM.”
— William Lidstone, Global CMO at Razorfish

Though the generation gap is hardly more than a decade, Millennials

and Gen Xers in the United States exhibit behaviors that are worlds
apart. While the differences between Millennials and Boomers have
been copiously examined, there are interesting differences between
Millennials and Gen Xers that have yet to be fully explored. Nowhere
is this more clear than in how they engage with technology, from
the way they use the smartphones in their pockets to the data they
give to brands. Millennials are far more engaged with the technology
around them than their slightly older peers, almost to the point of
dependency. Mobile devices, in particular, are essential to how
Millennials shop and buy, drawing a clear line in the sand between
the generations.

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 5

MILLENNIALS ARE CHANGING THE
GAME, AS MOBILE DEVICES ARE “I am interested in using mobile “My phone is my most valuable
ESSENTIAL TO HOW THEY SHOP AND payment technology” shopping tool when I’m in a store”
BUY

Percentage of Millennials who have a U.S.

MILLENNIAL 66% U.S.
MILLENNIAL 56%
smartphone
GEN X 46% GEN X 28%
U.S. U.K.
U.K.
MILLENNIAL 60% U.K.
MILLENNIAL 42%
GEN X 50% GEN X 25%

83% 90%
YOUNGER SHOPPERS ARE MORE Google Shopper will find you the if brands started doing that it would appreciate the two-way benefit of
LIKELY TO BE SMARTPHONE cheapest price. And you say ‘Hey, make my shopping experience 10 giving a brand their information. “It’s
SHOPPERS
I’m paying $50 at Macy’s for this times better.” helping the brand to actually see
Forget helpful salespeople or good comforter. It’s on eBay right now, what type of customer I am. And
old intuition: Millennials rely on brand new, for 20 bucks. I don’t MILLENNIALS ARE REDEFINING again they send me offers to that,
that screen in their hands. Fifty-six need it right away. I don’t mind THEIR PRIVACY EXPECTATIONS but it also helps the shop, which
IN THE U.S.
percent of U.S. Millennials say waiting. I’ll purchase it on eBay.’” I’m going to buy my shoes from.
their phone is their most valuable These generation gaps are less They’re going more personal now,
shopping tool in-store—compared U.S. Millennials are also looking evident in Brazil, China and the and this is what I like,” says Kamilla.
to just 28% of U.S. Gen Xers. forward to whipping their smart- U.K., especially when it comes
Additionally, 59% of U.S. Millennials phones out more frequently in the to privacy concerns. In the U.S., Though the numbers are still high,
use their device to check prices future: 66% of them are interested however, Millennials are much less fewer U.S. Millennials are concerned
while shopping compared to 41% of in mobile payment technology concerned about privacy than with mobile privacy. Seventy-five
U.S. Gen Xers. Even a young Gen compared to 46% of their older Gen their older neighbors. Why? percent feel that brands targeting
Xer like Marisol, 34, a New York X peers. Millennials like Charlie, 29, A combination of trust and people on their mobile phones is
City-based mother of two, finds U.K., love the convenience of mobile resignation. Seventy-four percent an invasion of privacy compared to
such comparison shopping “too payment, saying, “You don’t have of U.S. Millennials trust brands 83% of U.S. Gen Xers.
time consuming,” while Millennials to go to a till. You can go to one of to protect their privacy compared
take advantage of the latest tech to these people floating around—and to 63% of Gen Xers. Others have
make it a breeze. Says Jason, 22, just say I want to buy these head- simply lost faith in their ability to
a law student at UCLA, “There’s a phones … scan it with your phone, control privacy and are looking
barcode scanner where you can with the camera, and then you’ve for the silver lining. Millennials like
scan any item and it takes you paid for it already. So it’s, yeah, a Kamilla, a 33-year-old Londoner
directly to Google Shopper, and massive plus. Definitely I’d say that working in the fashion industry,

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 6

MILLENNIALS IN THE U.S. ARE LESS CONCERNED ABOUT THEIR PRIVACY, WHICH LIKELY
CONTRIBUTES TO THEIR HIGHER LEVELS OF ENGAGEMENT WITH BRANDS ONLINE

“It’s an invasion of privacy when brands “I trust most brands to protect my

target me on my mobile phone” privacy”

MILLENNIAL 75% MILLENNIAL 74%

GEN X 83% GEN X 63%

WE’RE ALL BECOMING For younger technology users, Gen X lags behind the younger MILLENNIALS IN THE U.S. AND U.K.
DEPENDENT ON TECH, BUT ENGAGE FAR MORE WITH DIGITAL
it’s the endorphin rush that likely Millennial cohort both in ownership ACTIVITIES ON A DAILY BASIS THAN
MILLENNIALS HAVE A MORE
creates the tie to tech, along with of smartphones and in how widely THEIR OLDER COUNTERPARTS
EMOTIONAL RELATIONSHIP
WITH THEIR DIGITAL DEVICES the promise of connecting with they apply technology in their lives.
Gen Xers Millennials
THAN GEN XERS others. Seventy-two percent of U.S. While 83% and 90% of Millennials
Millennials get excited when they own smartphones in the U.S. and Use social networking sites
Sometimes, our interactions with
get a text message or notification on U.K., only 64% and 82% of Gen X
technology border on obsession, no U.S. 62% 77%
their mobile phone. U.S. Gen Xers, respondents in the same countries
matter what demographic cohort
we fall in. Seventy-eight percent of
at 50%, are a bit more taciturn. own a device. Meanwhile, Millenni- U.K. 61% 77%
als are more likely to have apps that
U.S. Millennials and 72% of U.S. GEN X MANAGERS Watch short online videos
touch different industries (80% in
Gen Xers admitted to often feeling UNDERESTIMATE THE U.S., 77% in U.K.) than Gen Xers U.S. 18% 42%
dependent on technology. Some- EMOTIONAL CONNECTION
MILLENNIALS HAVE WITH
(64% in both countries). Asked for
times, it happens because of specific
TECHNOLOGY the perfect way a brand could inter- U.K. 18% 39%
functions on a smartphone. Fifty-
act with him, Charlie, 21, pointed
three percent of U.S. Millennials say Millennials outpace their Gen X
to apps: “Definitely have an app. I Stream music
they don’t know how they ever lived counterparts in nearly every digital
like the whole idea of notifications
without certain apps—compared to activity on a daily basis, from social U.S. 20% 36%
coming through, because that’s
41% of U.S. Gen X respondents. “So networking to streaming media.
much of my technology shapes how And they continue to look for more
something that doesn’t annoy me—I U.K. 9% 21%
come to look.”
I go about every single moment of my ways to integrate technology into
day,” says Ryan, 41, when asked how Stream movies or TV shows
their lives. Sixty-three percent of
he would respond to losing access to U.S. Millennials wish they could U.S. 10% 30%
his current technology. “I would have control their household devices over
to find new things to replace them, the Internet compared to half of Gen U.K. 5% 16%
which is a scary thought.” X respondents in the United States.

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 7

MOBILE APPS ARE PARTICULARLY IMPORTANT TO CONSUMERS WHEN IT
COMES TO FINANCIAL SERVICES, AND THE INDUSTRY DELIVERS A RELATIVELY
FAVORABLE EXPERIENCE

APPAREL AUTOMOTIVE FINANCIAL FOOD & TRAVEL /

SERVICES BEVERAGE HOSPITALITY

Importance
of mobile
app 27% 25% 50% 18% 32%

Familiarity
of mobile
app 25% 26% 51% 21% 36%

Rating of
mobile app
23% 25% 43% 23% 31%

Similar patterns In the U.S., ratings for

emerge across mobile apps are highest
the U.K., Brazil for financial services
and China

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 8

CASE STUDY

Great Eastern Insurance:

Mobile apps to forge a deeper connection

In 2012, Singapore- and Malaysia-based life insurance group Great The app is part of a wider strategy by the company to “Use digital
Eastern launched a free mobile application to help people develop to develop new touchpoints and increase engagement with
healthy new behaviors and habits, as part of a wider brand strategy consumers.” As Meffert notes: “Normally people only think about
review. Based on the insight that it takes 21 days to truly change insurance at unhappy moments; we want to be there in between
behaviors or create habits, the Great Eastern 21 Days iPhone the unhappy moments and help you live a happier life.” This
application lets users set a goal (such as “go to the gym every day”) means talking to your consumers on a more personal level and on
and then commit to a loved one that they’ll reach it. The app then the platforms they naturally gravitate to. “We engage differently
sets daily reminders to keep users motivated and lets them share on different channels with different target groups. YouTube, for
their goals with friends through Facebook and Twitter. example, is targeted more at 20- to 30-year-olds, and has been a
very useful way for us to reach a younger consumer group that
“Over the last few years there has been a definite shift towards might typically not want to engage with a 106-year-old insurance
developing tools that help us be more useful,” notes Veronique company. We created a channel on YouTube called Live Great TV,
Meffert, Head, Group Digital Marketing, for Great Eastern. which addresses topics like dating. It has around 25,000 subscribers,
“The 21 Days App was initially a sort of test to see what the which is a lot for Singapore. Instagram, Facebook and LinkedIn have
response to a mobile app that wasn’t insurance related from an also become very important touchpoints with very good returns.”
insurance company would be. We were overwhelmed by the
fact that people really liked it; research showed that people found
it really useful.”

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 9

 APPLIED INSIGHTS
1 Plan for the Gen X / Gen Y digital divide. Millennials lead the pack when it comes to the
adoption of technology, outpacing their Gen X counterparts in nearly every digital activity
on a daily basis. Gen X-led organizations need to ensure that their brand experiences
align with Millennials’ tech-led lives and that digital isn’t simply an afterthought in the brand
planning process.

Target carefully and with purpose. Although many U.S. Millennials understand that
2 targeting has become the natural order of things, three-quarters still believe that targeting
on their phone is an invasion of privacy. Brands should ensure that the targeting they
engage in feels useful and light, so as to avoid being labeled invasive.

Love stats about Millennials? Drop a note to [email protected] for more insights on the
generational chasm.

CHAPTER 1 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 10

 CHAPTER 2: THE DIGITAL EXPERIENCE ECONOMY
Brands need to focus more on being useful than on
being interesting.

KEY INSIGHTS:

1 Consumers are actively avoiding advertising. Consumers in all four markets (United
States, United Kingdom, Brazil, China) report doing anything they can to avoid seeing
advertising, and many are utilizing tools like DVRs to help them succeed.

2 Advertising is most effective when it is part of a value exchange. Consumers are now
aware of how much their attention is worth to marketers, and they expect to be rewarded
for it. They look to be compensated with loyalty programs, free content or useful tools
that solve problems.

3 Brazil still has a cultural affinity to traditional advertising. Interestingly, Brazil remains more
receptive to advertising than any of the other markets. Fifty-seven percent of Brazilian
consumers endorse TV, radio and print ads as the most influential source of advertising.
Therefore, it is important to understand that adding value means different things to
different cultures.

CHAPTER 2 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 11

 “IN AN AGE OF RADICAL TRANSPARENCY,
ENABLED BY CONSUMER EMPOWERING
TECHNOLOGIES, THE QUALITY OF THE
PRODUCT AND EXPERIENCE IS ELEVATED.”
— ­Ray Velez, Global CTO at Razorfish

If there’s a consumer motto for advertising, it may be “What have you

done for me lately?” It’s estimated that consumers are exposed to
over 5,000 brand messages a day and don’t have the time or energy
to care about most of them. And they are increasingly savvy at
deflecting disruptive advertising. If you want to get people’s attention,
then you’d better be giving them something more valuable than a
funny commercial or an amusing tweet in return. Eighty-six percent of
consumers in the U.S. say they value brands that are useful over
brands that are interesting. The most successful brands are those that
are becoming truly user-centric and designing services that help make
people’s lives better.

CHAPTER 2 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 12

FUNCTIONAL VALUE

“I prefer brands that are useful over brands that are interesting”

86% 79% 81% 88%

CONSUMERS ARE GOING The proliferation of channels has MAKING LIFE EASIER
OUT OF THEIR WAY TO AVOID also led to a proliferation of
ADVERTISING
advertisements that is further
“It is important that brands make “The best mobile apps are ones that
The importance of being useful rather exasperating people. Over 75% of my life easier” make my life easier”
than simply being interesting is even consumers in all four markets say
more pronounced when you look at they hate hearing or seeing ads
the extent to which people are going multiple times on radio, TV or online.
out of their way to avoid advertising. As Stuart notes, “You’ve shown 81% 89% 77% 87%
Over half of consumers in the U.S. it to me! I’ve seen it on Facebook.
and U.K. and 69% of consumers in I don’t need to see it on Twitter. I
China say they do anything they can don’t need to see it on the telly.
to avoid seeing ads. What’s more, I don’t need to see it in the paper.
they’re actively availing themselves I’ve seen it.”
of technology to do so, with a
majority of TV lovers using a DVR While frequency is known to
to skip through ads (U.S.—65%, increase brand or product recall,
U.K.—73%, China—81%). Online there is a point where it starts to be 95% 92% 96%
video watchers, like 39-year-old detrimental to the brand. Negative 80%
Stuart, feel the same way about emotions begin to be associated
pre-roll advertisements on YouTube, with the forced repetition.
saying, “There’s nothing worse …
if you want to watch something on
YouTube, and an advert comes up.
The first thing I do is skip it.”

CHAPTER 2 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 13

 THIRD-PARTY CONSUMER ENDORSEMENTS ARE MORE INFLUENTIAL THAN
TRADITIONAL ADVERTISING Further, 83% of Brazilian consumers TRADITIONAL ADVERTISING
ISN’T JUST IRRITATING—IT’S say ads give them ideas about
INCREASINGLY INEFFECTIVE Purchase decision influences ranked
things they want to buy compared
Word of mouth is the most to just 58% of people in the U.K.
influential driver of purchase And only 49% of Brazilians prefer to
decisions across industries, and skip through ads with DVRs versus
regions with consumers rate it the 73% in the U.K. and 81%
more important than traditional in China.
advertising. This is particularly
noticeable in China, where 79% While Brazil is still more receptive to
of consumers described word of traditional advertising than other Word of mouth 1st 1st 1st 1st
mouth as an important source of markets, there is a still a move
information—compared to only 20% toward brands trying to be useful
when it came to traditional advertis- and provide services. However,
ing (TV, radio, print). Online reviews
it’s important that brand-created from other 2nd 2nd 3rd 2nd
Twenty-three-year-old Chinese tools in a market like Brazil retain a consumers
consumer Irene states, “Advertising sense of fun. Caio Del Manto, Head
doesn’t really influence my of Brand Strategy and Creative
decisions; I am more likely to rely Excellence for LatAm, Mondelez, Online reviews
on my friends.” says that while “brand-created tools
from industry 3rd 3rd 5th 4th
experts
and services will grow a lot in the
BRAZIL IS AN OUTLIER WHEN future, they need to be interesting as
IT COMES TO ADVERTISING well as useful. Usability alone won’t Traditional
TRENDS
be successful in Brazil. People love
advertising (TV,
radio, print)
4th 4th 2nd 5th
While the death knell of traditional to consume brand content. They
advertising appears to be ringing want to have fun. The challenge is
loudly around the world, it should to be useful while being fun.” Del Social media
be noted that Brazil remains more Manto adds that, ultimately, “It’s all posts from 5th 5th 4th 3rd
friends/family
receptive to advertising than other about experiences. What kind of
markets. Fifty-seven percent of relationship do we want to create
Brazilian consumers endorse with people, and how can technology
TV, radio and print ads as most help in this sense? It doesn’t matter
influential, while consumers from how exciting the tech is if the
most other markets say third-party experience isn’t interesting.”
endorsements work better than ads.

CHAPTER 2 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 14

ADVERTISING NEEDS TO BE rewarded for loyalty. That’s very IMPORTANT FOR BRANDS TO...
PART OF A CLEAR VALUE important to me.”
EXCHANGE
People don’t mind advertisements Those rewards can take various Reward you

if they’re part of a clear value forms, from the purely financial to

for being a
loyal customer 72%
exchange. For example, 70% of the more emotional. Ryan, a
consumers in the U.S. and U.K. and musician from New York City, Have loyalty
programs
64%
77% in China don’t mind seeing explains, “I follow brands on social
advertising in order to access free media more for deals than ‘being
Have offers and
72%
content online. the first to know’ about something.” promotions
But while financial incentives are
The nature of this value exchange important, people are looking for
becomes more important further more from brands than simply 65%
along in the consumer journey. discounts and coupons. Over 80%
Seventy-two percent of Americans of consumers in the U.S. say that 50%
and 92% of Brazilians say it’s it’s important that brands make their
important for brands to reward you lives easier—in Brazil that figure is a 71%
for being a loyal customer. massive 95%.
Consumers like Jason, a 22-year-
old from Los Angeles, feel loyalty ADVERTISING, AS WITH OTHER 92%
rewards build their relationship with BRAND TOUCHPOINTS,
the brand and motivate them to SHOULD PROVIDE CONSUMERS
WITH SOMETHING OF VALUE
89%
keep buying the brand’s products.
He describes his appreciative “The best mobile apps are ones that 96%
experience with his favorite car make my life easier”
brand, Range Rover. “Even though
you’re making a deal, you’re kind
of like friends, you know, in a sense 70%
where you say okay, three years ago 71%
you bought this Range Rover from 70%
me, so you know what? I’m going 54%
to talk to my manager and try to get 62%
you [money] off this year’s model … 75%
because you’re a loyal customer, 77%
and we see that. I like being

CHAPTER 2 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 15

 APPLIED INSIGHTS

1 Provide a return on attention. For today’s consumers, time can be more valuable than
money. If people are going to spend time on a brand, they expect to be rewarded for it.
Marketers need to calculate the return on attention their advertising provides. If you can’t
come up with a decent answer, you may need to reassess your marketing program.

2 Make yourself useful. Brands need to offer their customers services beyond core
products and add some real value to peoples’ lives, if they are not already. Consumers are
more likely to stick with a brand if they feel it makes their lives easier.

3 Reward your loyalists. With more options and transparency than ever before, consumers
don’t have much reason to stay loyal. Therefore, it is imperative that brands continually
incentivize and reward purchases.

Useful > interesting. We’ve got the stats to prove it. Email [email protected] to learn more about
the digital experience economy.

CHAPTER 2 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 16

 CHAPTER 3: SEAMLESS COMMERCE
Omni-channel customers still encounter a number of
friction points as they dip between online and offline
platforms in search of cross-channel convenience.

KEY INSIGHTS:

1 Digital is the new storefront. A good e-commerce site is not just a nice-to-have; it has a
major impact on your brand. The numbers speak for themselves: 84% of people in
Brazil and 92% of people in China say that a bad brand website negatively impacts their
opinion of the brand. Seventy-three percent and 79% of people in the U.S. and U.K.,
respectively, agree.

2 Current e-commerce experiences fall short of expectations. Even with the massive
accomplishments made in the evolution of commerce, consumers are still not
impressed. Current e-commerce experiences, return policies and shipping options
are falling flat in cultivating satisfied customers.

Consumer journeys are peppered with dead ends. Although consumers no longer view
3 a distinction between online and offline brand channels, brands are not yet structured
to support this outlook. This creates a tension between what consumers want and what
brands are providing, forcing consumers to jury-rig solutions.

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 17

 “COMMERCE IS EVERYWHERE WILL
BE EVERYONE’S EXPECTATION.”
— ­Paul do Forno, SVP E-commerce at Razorfish

Consumers see little difference between online and offline shopping.

What matters is cross-channel convenience. And yet, rather than work
seamlessly together, online and offline customer journeys are often
riddled with dead ends, both customer-made and brand-made. While
in-store behavior shows consumers distracted by their smartphone—or
perhaps using it to make them smarter shoppers—online behaviors
show that the stores themselves, and their e-commerce presences, are
often the biggest deterrent to conversion.

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 18

E-COMMERCE IMPROVEMENT SHIPPING / RETURN

“Most online shopping sites need “Shipping price determines whether or not I will purchase a product online”
improvement”

88% 85% 90% 72%

52% 50% 79% 87% “I only buy products online that I have the option to return”

71% 69% 77% 61%

ONLINE RETAIL STILL FALLS massive gaps in importance and to her lifestyle: “The thing that is so them, should they be unsatisfactory.
SHORT OF CONSUMER EXPECTA- digital rating. Digital experiences for disappointing is the return policy. But retailers shouldn’t be scared
TIONS, PARTICULARLY IN BRAZIL
financial services and travel were You know, I’m busy, I don’t have of consumers like Chris, who take
AND CHINA
thought to be of utmost importance, time to return my items within two advantage of free returns—they
Despite having a world of data but not many consumers thought to three weeks.” could turn out to be your most
at their fingertips, online retailers they were succeeding. valuable customers. In fact, Zappos,
still can’t seem to meet, let alone An inflexible return policy is also a which offers free 2-way shipping
exceed, consumer expectations. A RETURN POLICIES ARE A major reason why many consumers and a 365-day return policy, has
majority of consumers still believe SERIOUS FRICTION POINT IN are unwilling to take a leap of faith publicly claimed that clients buying
that most online shopping sites THE CONSUMER JOURNEY
when buying things online. Chris in the more expensive shoes have
need improvement, and people Rigid return policies appear to be Los Angeles, 21, explains that the a 50% return rate, but that the
continue to make online purchase a common friction point across both return policy is an important factor continued loyalty of these customers
decisions cautiously, illuminating the offline and online consumer before deciding whether to buy is worth the initial loss.
pain points throughout the process. journey. Return policies are an online: “Online you always expect
As developing nations fully embrace example of giving power to the to get things cheaper, but you can’t In China, where e-commerce has
e-commerce, they simultaneously consumer, and a number of really trust how you see them. So been more widely accepted for
hold online retailers to a higher digital-first brands, like Amazon and first thing I always look at is like the a longer time, consumers seem
standard, expecting top-quality Zappos, have set high expectations return policy. If they have a good less concerned about making an
experiences on every website they by putting shoppers in the driver’s one, no worries.” Chris is far from unsatisfactory purchase. Sixty-one
visit—and often are disappointed. seat. When other brands fail to unusual: more than two-thirds of percent of consumers in China
meet these expectations, customers consumers in the U.S., U.K. and say they will purchase products
And this is true of every industry we are understandably annoyed. As Brazil (71%, 69% and 77%) say they online only when there is an
surveyed. Although there is much Alyssa, 21, New York City, notes, will only purchase products online option to return them. However,
room for improvement for every return policies rarely seem aligned when there is an option to return while customers in China may be
category, some industries showed

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 19

more willing to take the initial risk, shopping sites. In fact, 84% of DIGITAL PRESENCE (U.S.)
retailers should be aware that the people in Brazil and 92% of people
return policy still affects future in China say that a bad brand
loyalty. China resident Bang, 27, website negatively impacts their
reveals that a company’s return opinion of the brand. In the U.S.
APPAREL AUTOMOTIVE FINANCIAL FOOD & TRAVEL /
policy “directly impacts my second and U.K., the numbers drop to 73% SERVICES BEVERAGE HOSPITALITY
purchase.” and 79%. Therefore, it is extremely
important to consider the message
A BAD E-COMMERCE SITE your website sends as we move
SEVERELY IMPACTS CONSUMER
PERCEPTIONS OF BRANDS
toward the future of digital shopping. Importance
Even very talented brand marketers of digital
Consumers in more developed can undermine all of their efforts
presence 38% 35% 57% 30% 55%
countries have been slower to jump and media spend with a poor site
to online shopping outlets. Where experience.
only 51% of U.S. and 49% of
U.K. citizens say they wish they
Rating
could make all of their purchases digital
online, that number skyrockets in presence 21% 12% 21% 17% 20%
Brazil and China (74% and 82%,
respectively), where formal, in-store
retail might not be as plentiful.
However, although Brazil and China
are more eager to rely exclusively
on e-commerce, they are also
much harder critics of said Internet

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 20

CASE STUDY

Marks & Spencer:

Addressing omni-channel convenience
via an experimental digital lab

In 2013 Marks & Spencer, a major British retailer known colloquially from sales people in-store to the people who manage the website.”
as M&S, opened a Digital Lab to help it develop and exploit Big data is an important part of this process, but, as Kuntawala
technology to create a leading omni-channel offering. The Digital stresses, “big data generally also does need to be coupled with
Lab makes use of lean start-up techniques to move quickly: its qualitative insights.”
modus operandi is to build, measure, learn and iterate.
After identifying key problems, Digital Lab then goes about trying
Hemal Kuntawala, product manager of M&S Digital Lab, explains to solve them by way of different experiments. One of the most
that one big challenge for M&S is its large range of products. recent experiments was around men’s formal shirts, a category the
The company sells everything from socks to sofas: very different team hypothesized was underperforming when it came to online
products that are bought by consumers in very different ways sales because there wasn’t a dedicated purchase experience for
but sold via the same one-size-fits-all experience online. “We’re them. Rather, if you wanted to buy a formal shirt from M&S, you
not content with the status quo of retail—both the online and went to the same marksandspencer.com you went to if you wanted
offline experience—and we want to evolve it,” explains Kuntawala. to buy some garden furniture. “But if you know your neck size and
“We want to make retail very easy for our customers and let them fit, you should be able to buy formal shirts online very easily. So we
browse in the way they want on whatever device they want.” thought this would be one area where we would be able to increase
conversion,” explains Kuntawala. After doing research around how
Digital Lab goes about re-evaluating the retail experience by first customers bought formal shirts, the team started to think about the
identifying its key problems. “We look at customer behavior and sort of shirt-buying experience they’d go about designing if shirts
speak to customers in order to find out where the pain points are were the only thing M&S sold. The outcome was a domain-specific
both in-store and online,” says Kuntawala. “We spend a lot of time e-commerce experience that is now outperforming the main
talking to people in the business. Getting insight from everyone e-commerce experience.

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 21

M&S Digital Lab considers what it does to be problem-solving apps that veered towards the gimmicky or glitzy rather than
rather than “advertising” in the traditional sense of the word. “From tools that solved real problems,” notes Wright. “Now, however,
my perspective, we’re here to solve problems for customers, and they’re starting to think a lot harder about how to solve
that’s pretty much it,” states Kuntawala. But while the Digital Lab marketing imperatives with services.”
is currently separate from the marketing department, there are
growing overlaps between the two groups. Style Board, for example,
a social outfitting experience developed by Digital Lab as a tool
to help online with discovery and inspiration, ended up later being
heavily leveraged by the retailer in its marketing. What’s more, Peter
Wright, a designer at M&S Digital Lab, explains that Style Board
went from being simply a useful product to a “useful product that
could change brand expectations. Style Board attracted a slightly
younger demographic than our usual customer—which was
interesting to see because that is what we were trying to achieve
from a marketing point of view.”

As digital experiences prove to have an increasingly powerful effect

on brand perceptions, they’re becoming a more important part of
the branding and marketing mix at M&S. “At first, the advertising
team would come to the Digital Lab with requests to build tools and

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 22

 EARLY ADOPTERS DEPEND HEAVILY ON THEIR PHONE WHEN SHOPPING IN STORE
E-COMMERCE DISAPPOINT- Still, China seems the least satisfied
MENTS TELL CONSUMERS YOU with its e-commerce options. Gen Xers Millennials
DON’T WANT THEIR BUSINESS
Consumers there rated 88% of all
Perhaps because they expect a e-commerce experiences below
good e-commerce experience from excellent compared to 63% in the
every brand, consumers in Brazil U.S. and Brazil and 58% in the U.K.
and China feel there is room for China resident Hoyt, 28, agrees that “I frequently
price check 67% 64% 68% 65%
improvement with most shopping “most companies’ online websites
items on 42% 30% 48% 56%
sites. Seventy-nine percent of Brazil- are really rough and behind.” my phone
ian and 87% of Chinese shoppers The disappointments, wherever while I am
in the store”
would prefer better experiences with they’re happening, send a negative
e-commerce sites. In the U.S. and message to customers that the
U.K., however, people seem to be brand may not be totally on-board “I often
more pleased with what they’ve got. with digital. “Tesco has the most scan QR
46% 36% 43% 63%
Only 52% of Americans and 50% of rubbish website. It freezes all the codes” 15% 13% 22% 25%
U.K. citizens feel that most shopping time,” says U.K. shopper Rachel.
sites need improvement. “I feel like Tesco’s website doesn’t
want to be used.”
In the U.S. and the U.K., shoppers “My phone
is the most
63% 53% 49% 65%
prioritize ease of use—both online Soon the consumer’s mobile device
and when it comes to returns—when
valuable 32% 25% 25% 54%
will become the center of the tool when
judging a website. “Websites should commerce experience, if it hasn’t I’m in a
store”
be obvious and clean-cut. Not so already. As early as 2012 over half
many hoops to go through. Clean- of U.S. consumers said they had
cut, to the point, like I’m walking stopped an in-store purchase
through the store and buying it— as a result of using their mobile
that’s what e-commerce should be,” phone, according to the Interactive
says U.K. shopper Charlie. Advertising Bureau. Razorfish’s data
shows even more reliance on the
new first screen.

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 23

 APPLIED INSIGHTS

1 Empower your customer. Inflexible returns policies, in particular, are a major point of
friction in both the online and offline retail experiences. A good return policy is an easy
way to differentiate your brand from the competition, build loyalty and earn trust.

2 Design for the digital blur. If consumer journeys criss-cross between online and offline,
then your retail experience should reflect this. Map some prospective customer paths through
various platforms and devices to understand how shoppers’ lives unfold and
intersect with your brand, and remember to prioritize mobile throughout this journey.

Seamless commerce matters. Help us help you. Connect with the Razorfish team at [email protected].

CHAPTER 3 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 24

 CHAPTER 4: DIGITAL CONDITIONING
While we sometimes focus on the rational benefits
of technology, digital interactions affect us on a
biological and emotional level.

KEY INSIGHTS:

1 Consumers admit to technology dependence. Over three-quarters of consumers in all

four of the markets surveyed admitted to often feeling dependent on technology. Many
elements are cited for the development of this dependence, including utility, connectivity
and the positive emotions they associate with it.

We’ve been exposed to digital classical conditioning. As proven by Pavlov, repeatedly

2 pairing two cues can elicit a classically conditioned response. This is equally true for
many consumers who use smartphones—the light or sound emitted from the device
triggers a response of immediate attention.

3 Instant gratification is not always preferred. Remarkably, consumers in all four markets
reported more excitement when receiving a purchase in the mail than when buying in the
store. This illuminates an interesting aspect of shopping that is specific to e-commerce—
the power of pleasurable anticipation and delayed gratification.

CHAPTER 4 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 25

 “TECHNOLOGY HAS CHANGED EVERYTHING.
INCLUDING OUR BRAINS.”
— Grant Owens, GVP Planning at Razorfish

A great deal has been written about how technology has given
consumers the ability to research products more thoroughly and make
better-informed purchase decisions. Certainly, the Internet has made
us more sophisticated shoppers: a recent PricewaterhouseCoopers
study found that 80% of consumers look at online reviews before
making major purchases. In many product categories, like automotive,
that number is significantly higher.

Arguably, all of this research leads to buying decisions that are based
more on objective information than irrational brand loyalty. While it is
true that the Internet has peppered the path to purchase with facts,
reviews and data, it would be wrong to think that technology has made
us more rational shoppers. Indeed, the neurological aspects of digital
interactions are giving rise to new forms of impulse shopping.

CHAPTER 4 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 26

BRANDS CAN CAPITALIZE ON THE CONSUMER EXCITEMENT GENERATED FROM RECEIVING ONLINE PURCHASES AND DIGITAL COMMUNICATIONS

“I am more excited when my online purchase arrives than when I buy things in store”

76% 72% 73% 82%

OUR TECH-DEPENDENCY U.S. and Brazil admit to getting the U.S., 72% in the U.K. and 73%
HAS FORGED A NEW SET OF excited when they get a text or in Brazil say they are more excited
EMOTIONAL CUES
notification on their phone, with when their online purchases arrive in
It’s hard to overstate just how China and the United Kingdom the mail than when they buy things
important technology is to our daily trailing only slightly behind at 59% in store. As Raine, 43, Los Angeles,
lives. Three-quarters of people in and 55%. notes, “It’s nice to get something
the United Kingdom and the United fun in the mail because all I get in
States say they often feel dependent ENGINEERING ANTICIPATION the mail are bills.” The pleasure of
on technology; in Brazil and China IN AN AGE OF INSTANT anticipation is even more heightened
those figures are even higher, at GRATIFICATION in China, where 82% of people
79% and 87%, respectively. Our While it might seem logical to are more excited about online
tech addiction isn’t just about the assume that an age of instant purchases than in-store buys.
convenience of having a wealth of gratification means we want what
information and social connections we want immediately, that isn’t
at your fingertips: there’s a highly always the case. Sometimes
emotional element to it. Admit it, immediacy isn’t enjoyable. While
when your phone goes “ding!” and one might presume that waiting
you see that you’ve got a new text for purchases to arrive is a
message, it’s hard to stop yourself disadvantage for online shopping
from reaching for your phone, no versus shopping in-store, it appears
matter what else you may be doing. that people actually enjoy the
Turns out you’re not the only one anticipation involved in waiting
hooked on digital dopamine. for purchases to be delivered.
Sixty-two percent of people in the Seventy-six percent of people in

CHAPTER 4 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 27

 ADMIT IT, WHEN YOUR PHONE GOES
“DING!” AND YOU SEE THAT YOU’VE
GOT A NEW TEXT MESSAGE, IT’S HARD
TO STOP YOURSELF FROM REACHING
FOR YOUR PHONE, NO MATTER WHAT
ELSE YOU MAY BE DOING.

CHAPTER 4 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 28

CONSUMER PSYCHOLOGY BEHAVIORAL ECONOMICS

Habits Form Faster

Online

Pavlov’s Proof Is
in Our Pocket
Dr. Susan Weinschenk, founder
of the Weinschenk Institute
and YouTube’s resident “Brain
Lady,” explains that it’s easier to
become loyal to an online retailer
versus an offline retailer because
Dr. Susan Weinschenk, a some, or most, of the messages it, with the effect of vacation we can form habits a lot more
psychologist and founder of the you receive are rewarding. They anticipation boosting happiness quickly online. “If I can think, ‘I
Weinschenk Institute, explains are good news or something for eight weeks. need a new pair of slacks,’ and
that the reason so many of us interesting, which reinforces the I can go online and click on a
seem to be at the constant beck whole thing from a neurochemi- Weinschenk notes, however, button to buy slacks, it’s much
and call of our smartphones cal point of view. that the brick-and-mortar retail more likely I’m going to become
is because the unpredictable experience is largely devoid of loyal to, if not a brand then at
nature of when you might Dr. Weinschenk explains that anticipation: “There is some least a site.” She notes that
receive a text message, coupled the reason we get excited when anticipation about going to the online shopping habits tend to
with the visual and/or auditory our online purchases arrive is store, but once you’re there and be strongly ingrained. “People
cue, builds up a classic because the parts of the brain you’ve picked your item out— have websites they go to when
conditioned response. Basically, that act as a reward system are there is perhaps a half an hour they shop. They have their ‘go-to
we’re all Pavlov’s dog, except, more active with anticipation between when you decide and methods’ for buying certain
instead of salivating when we than the actual getting of the when you get it—and actually, categories of things, and getting
hear a bell ring, we reach for our reward. Just think, for example, you’ve already ‘got it’ because them out of that habit once it
smartphone: “When you hear of the last vacation you took: it’s in your hand as you bring is set is actually pretty tough.
that beep, or you see something wasn’t the anticipation of your it to the checkout. So there is It’s going to take a lot to get
flash, your arm will start to reach holiday better than the airport not really an opportunity for someone to switch once a habit
for the phone before you’re even security lines, packing and the reward system to drive has been established. You can
consciously aware that you family squabbles? Indeed, a anticipation.” get them to switch, but it is hard
heard it; that’s how ingrained it 2010 Dutch study found that when it becomes a ritual.”
can become.” Weinschenk notes the largest boost in happiness
that the conditioned response is from vacations comes from
often coupled with the fact that the simple act of planning

CHAPTER 4 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 29

 APPLIED INSIGHTS
1 Design for humans. Consider psychological aspects
when creating experiences, factoring in the power of
habit and ritual.

2 Engineer anticipation into your brand experience. Find

a way to encourage consumers to enjoy the planning,
researching and anticipation stages of the purchase
process. Remember that instant gratification isn’t always
the most positive thing for consumers, even in an
on-demand world.

3 Use “surprises and delights” to your advantage. Without

turning brand communications into a carnival of push
notifications and flashing buttons, you can still create
pleasurable moments of anticipation around routine
events for a brand. Smart marketers will play around
with game mechanics in the shopping and purchasing
process, while ensuring it doesn’t get in the way of
simplicity and service.

Emailing [email protected] will provide pleasurable

anticipation and instant gratification. Side effects: may condition you
to make smart(er) business decisions.

CHAPTER 4 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 30

 CHAPTER 5: EMERGING MARKETS IN THE FAST LANE
Consumers in Brazil and China have higher expectations
of tech-enabled experiences than other regions, making
them important markets to watch.

KEY INSIGHTS:

1 Consumers in Brazil and China are tech-hungry early adopters. This data shows
that Internet users in these markets rely on technology for every part of their lives and
continually look for more ways to integrate it.

2 Consumers in countries with lower Internet penetration may be the most demanding
online. There are unexpectedly high expectations for digital services and websites
in countries with lower Internet penetration. In particular, there is a very strong desire in
Brazil and China for e-commerce to improve.

3 Tech savvy spans all generations. While there is an important digital divide between
Millennials and Gen Xers in the United States and United Kingdom, these demographic
differences aren’t so pronounced in Brazil and China.

CHAPTER 5 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 31

 “I SUSPECT THESE DATA ARE SHOWING
US THAT TECHNOLOGY IS A CORE ASPECT
OF CULTURAL PRIDE AND PROGRESS.
TECHNOLOGY IS TAKEN FOR GRANTED IN
SOME MARKETS, BUT FOR OTHERS, LIKE
CHINA, IT IS COVETED AND DEMANDED.”
— ­Michael Karg, International CEO at Razorfish

In Brazil and China, Internet penetration remains relatively low—46%

of China and 53% of Brazil, according to Internet Live 2014. While you
might expect that this would result in a less-demanding connected
population, the exact opposite is true. These laggards have leapfrogged
their more connected peers precisely because Internet is harder to
come by. The people who are online in these two countries tend to be
more tech savvy than the overall population—and thus show greater
facility with advanced technology. As a result, they have heightened
expectations of their devices and brands in the digital world. These
consumers have essentially skipped over the novelty stage of early
connectivity and gone directly to advanced behaviors and expectations.

CHAPTER 5 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 32

VERY KEEN GROUP OF EARLY devices through the Internet (84% consumers like technology but different patterns depending on
ADOPTERS IN THESE MARKETS in China, 79% in Brazil) and in using don’t necessarily know a lot about age. Instead, there is an overall
China, in particular, is home to a mobile payments (90% in China, it. At the same time they’re hugely enthusiasm for digital solutions
very keen group of early adopters. 80% in Brazil). In the U.S. and U.K. interested in social networking, first across ages, likely due to the early
Of consumers surveyed, 60% of we see desire for a connected with Orkut then with Facebook. adopter aspect of Internet users
Chinese respondents considered household drop to 57% and 52%, Brazil had these huge digital leaps in those countries in general. Del
themselves the first among friends and mobile payment interest drop as a country and leapt straight into Manto explains: “When it comes
and family to adopt new technol- to 57% and 55%, respectively. The social networks. Then we went back to technology, the overall behavior
ogies, compared to 33% in the convenience of these technologies to technology and said we need amongst Brazilians is pretty much
U.S., 32% in the U.K. and 38% in is cited as an especially appealing technology to help us. So social the same. They love sharing stuff.
Brazil. Chinese consumers were aspect. China resident Bang, networks have really been an entry The main difference isn’t around
around twice as likely to read news 27, reveals that he loves mobile way into technology, and you could behavior but time—how much time
websites, stream movies and payments because “scanning say that they really pushed penetra- they spend and how accessible
shows, and read online reviews on a code to pay is so convenient— tion of smartphones.” Smartphones technology is for them to do that.”
a daily basis as their counterparts in and the less work I have to do, the now represent 76% of all phones
better.” Consumers in Brazil and in Brazil according to recent data CONSUMERS IN BRAZIL AND
the U.S. and U.K. Chinese
CHINA EXPRESS A PARTICU-
Millennial Sibly reaffirms, “Technology China are also more likely compiled by the Brazilian Electrical LARLY STRONG DESIRE FOR
is reflected in every aspect of my (69% and 71%) than consumers and Electronics Industry Association. EXCLUSIVELY SHOPPING ONLINE
life.” Additionally, an overwhelming in the U.S. and the U.K. (57% and
TECH ADOPTION AND Online shopping is a more
87% of Chinese consumers and 56%) to believe that devices like
INTEREST IS NOT DEPENDENT established habit in Brazil and
79% of Brazilian consumers report Google Glass will one day become
ON DEMOGRAPHICS China than in more developed
often feeling dependent on technology, mainstream. Their eagerness for
When it comes to technology, countries like the U.S. and U.K.
demonstrating its extreme importance integrating technology in all facets
generational differences are minimal One demonstration of this is their
in these markets. of life paints a picture of a very
in Brazil and China, and in many desire for all shopping experiences
connected future for consumers in
instances nonexistent, with an overall to be exclusively online: 82% of
AN EVEN MORE DIGITAL FUTURE these markets.
enthusiasm for digital solutions across China and 74% of Brazil wish
These early adopters show no signs that they could make all of their
Caio Del Manto, Head of Brand the age spectrum. As opposed to
of stopping, expressing desire for purchases online, numbers that are
Strategy and Creative Excellence the U.S. and U.K., where Millennial
technology of all types, and even much more compelling than their
for LatAm, Mondelez, notes that consumers exhibit distinct behaviors
for devices that are barely available. American and British counterparts
social networks have an important from their older, less-connected
For example, consumers in Brazil (51% and 49%, respectively).
effect on the rate of technology countrymen, consumers in Brazil
and China expressed considerable
adoption in Brazil: “Brazilian and China do not have vastly
interest in controlling all household

CHAPTER 5 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 33

 “THE ONLINE STORES ARE OKAY, BUT I’D LIKE
IT [THE EXPERIENCE] TO BE MORE DYNAMIC,
MORE ENJOYABLE. THIS WOULD MAKE ME
BUY MORE. NOW I FIND IT SO BORING.”

TECHNOLOGY EXPECTATIONS key for increasing basket size and a determining factor in purchase
ARE HIGHER THAN IN OTHER fortifying brand perceptions. This is decisions.
MARKETS
especially true in Brazil and China,
While Internet users in Brazil and where 92% and 84% of consum- EMERGING DIFFERENCE:
China are more likely to consider ers, respectively, say a bad brand BRAZIL IS CURRENTLY MORE
RECEPTIVE TO TRADITIONAL
themselves early adopters and tech website negatively impacts their ADS THAN CHINA
enthusiasts, their digital standards opinion of that brand—a feeling that
are also amplified. Seventy-nine is more pervasive in these emerging One key difference between Brazil
percent of people in China and 87% markets than in the U.S. and U.K. and China: Brazilian consumers are
of people in Brazil believe that most (73% and 79%). more receptive to traditional ads
online shopping sites need improve- than people in the U.S., U.K. and
ment. Compared to only 52% in the Although consumer complaints are China. In the latter three countries,
U.S. and 50% in the U.K., that is a often about site experience, some traditional advertising ranked fourth
lot of unsatisfied consumers. Luiza, concerns regard factors that brands or fifth in influence, behind word of
a 30-year-old doctor who lives may not be considering. Thirty-one- mouth, online consumer reviews,
in Brasilia, explains that “the online year-old Raissa, who lives in Araras, online industry reviews and, in
stores are okay, but I’d like it [the a small town two hours from Sao China, social media posts from
experience] to be more dynamic, Paulo, notes that she’d “like to shop friends and family. In Brazil, however,
more enjoyable. This would more online, but it’s always hard to traditional TV, print and radio
make me buy more. Now I find it schedule a delivery time, and, as me advertising was ranked second in
so boring.” and my husband are not always at purchase influence, behind only
home, the product goes back to word-of-mouth. On the other side of
With high standards and multiple the central mail.” In this same vein, the spectrum, 69% of consumers in
options, it is clear that an engaging a whopping 90% of Brazilian China declare that they do anything
and intuitive digital experience is consumers cited shipping costs as they can to avoid seeing advertising.

CHAPTER 5 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 34

 APPLIED INSIGHTS

1 Use Brazil and China to bring the future into focus. Consumers in these markets hold
the highest expectations of digital experiences and exhibit the most rapid consumption of
technology. Consider how these heightened expectations will push the boundaries of
commerce and technology tomorrow.

2 Consider Brazil and China as early adopters. Emerging markets like these are exciting
places to test new technology. These consumers are not afraid of technology and are
actively looking for new ways to use it in their daily lives.

We have more global stats where this came from. Get in touch to learn more about emerging markets:
[email protected].

CHAPTER 5 | RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 35

CONCLUSION
With this research, Razorfish aimed to discover the hidden side of
ongoing digital transformation by illuminating the gaps in our knowledge
about how people interact with the increasingly connected world
around them. We unearthed quite a few interesting findings, including
the generational chasm between Millennials and Gen Xers, the
importance of providing true value through marketing and the bifurcation
of expectation between developed and developing markets, to
name a few.

But one finding emerged with ringing certainty: No longer is it sufficient

for a brand to promise the world in vague terms without truly delivering
upon that promise. Instead, companies must provide real value in the
lives of consumers, adapting their practices to fit the high expectations
of digital natives around the world. Whether through flexible return
policies, customer-first privacy protocols or superior online experiences,
brands must expand their vision beyond their product to create
moments of value in their customers’ journey.

This report and its findings are tools to shape better brand-consumer
relationships in tomorrow’s digital world, exposing the key trends
shaping marketing in 2015 and beyond.
RAZORFISH | 2015 GLOBAL DIGITAL MARKETING REPORT | 36
Interested to learn more about our findings? Contact Razorfish at [email protected]
for industry-specific data analyzing the apparel, automotive, financial services,
food & beverage and travel/hospitality industries.

Methodology
Quantitative Methodology: Over 1,680 individuals with Internet access completed our survey in the United States,
United Kingdom, Brazil and China during the spring of 2014.

Qualitative Methodology: Nine 2-hour ethnographies were conducted in two U.S. markets and one U.K. market during
the spring of 2014.

This study was conducted in partnership with the Center for the Digital Future.