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On Tuesday I spent the day at the Being Digital Mashup conference. It was a really interesting and insightful day – although there were way too many pitches crammed into the programme.

For those of you that didn’t attend, I’ve put together a summary of the key predictions from the event, outlining what is going to happen within digital marketing over the next 5 years:

• Media fragmentation and the decline of mass audiences will continue as there will be constant shifts in the way consumers live their lives, but this should be seen as a positive instead of a negative. After all, ad spend can be reduced through advertising to smaller fragmented audiences, as there is less money wasted on irrelevant audiences. Advertisers will need to create innovative and targeted ‘marketing pieces’ for their consumers, reaching them via their niche channels.
• Although it is often thought that young people watch less TV than they used to, research shows that there has been a 10% increase in the time that 16-24 year olds spend watching TV each day (since 1997 their daily viewing has increased from 1.61 hours to 1.77) and this is likely to remain constant.
• The penetration of mobile internet is currently at 30%, but with continued promotion from the iPhone and other key players in the mobile industry, this is going to see huge growth.
• Most sites will have an element of social networking or online community in the near future, as consumers continue to want this functionality.
• Online shopping is not going to take over or replace offline retail. Research has proven that consumers like being able to use a combination of online, store and call centre when shopping, and when given this option to shop across multiple channels, consumers exhibit a higher degree of loyalty – their average relationship ‘lifetime’ with the brand is 2 ½ times greater which is very valuable. As a result, the future will see online and retail work hand-in-hand.

However, the two areas that I think are going to have the greatest significance over the next five years are branded content and location. Predictions for these topics are:

• Branded content is going to be huge over the next five years and brands are likely to benefit hugely from being associated with entertaining or relevant content, as indicated by Nigel Conway from Nestle. Their annual advertising budget currently stands at around £5bn, of which £3.5bn is spent on TV advertising. However, Nigel believes that in 7 years time, this £3.5bn will be spent on branded content. Research has shown that branded content is the most popular of all advertising formats, with 67% of all consumers finding it acceptable or valuable.
• Location is going to play a major part over the next few years, as GPS and mobile internet become more widespread. We all know how to find things on a map if we have the postcode, and with GPS we will all know where people are located – but the key question is how do marketers use this data to add real value to consumers? Many companies are trying to create 3D search interfaces and immersive environments for consumers but at the moment they are too expensive and very difficult to develop, and despite all efforts the interfaces are really hard to use.

My prediction is that whoever can create a user friendly, and ultimately useful and valuable location mashup for consumers will be much much richer in the next five years.