mobile tech trends for 2017

Somo’s top mobile tech trendsfor 2017

December 16 1Confidential and copyright of Somo Custom Ltd.

It’s difficult to predict the future in tech

December 16 2

"This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us." –Western Union internal memo, 1876

"The horse is here to stay but the automobile is only a novelty, a fad." –The president of the Michigan Savings Bank advising Henry Ford's lawyer not to invest in the Ford Motor Co., 1903

"I think there is a world market for maybe five computers." –Thomas Watson, chairman of IBM, 1943


"Microsoft’s ability to provide a standardized operating system that appeals to enterprise buyers will almost inevitably make Windows Mobile the dominant smartphoneplatform " –Nick Jones, Gartner VP Distinguished Analyst speaking at the Gartner Symposium, 2003


“Is Netflix a threat? Is the Albanian army going to take over the world?" –Jeffery Bewkes, CEO Time Warner, 2010

Top trends in mobile tech for 2017

But we are fearless, so here it is..

December 16Confidential and copyright of Somo Custom Ltd. 8

• Last November, Baidu presented the results of its first tests with a new speech recognition engine called Deep Speech 2. According to Baidu the new tool can sometimes transcribe snippets of Mandarin speech more accurately than a person.

• Advances in speech recognition have been possible thanks to the advent of deep neural networks, a new model of machine learning inspired by the biological processes of the human brain

2016 has seen an explosion of applications of voice recognition indifferent contexts, from car s to home assistants. Consumer use ofspeech recognition has increased, therefore understanding theimplications of consumers’ adoption of these new technologieswithin the consumer journey is going to be one of the biggestchallenges for brands in 2017.

With an increasing volume of searches moving from web tovoice, the first objective for brands is to understand how toactivate their presence and influence consumers engaged withpersonal assi stants. Influence will be ultimately achievedanticipating consumer needs with integrated services and voice-ready contents and experiences.

Secondly, the ubiquitous presence of the digital assi stance – forinstance Siri is now integrated in iOS for phone, laptop, tablet,watch, TV and car – will open up opportunities for contextual andproximity marketing. The motivations and intents behind a similarsearch within home and in a car while driving may differ quitesignificantly. Information about nearest stores, relevant services, orproduct availability will become vital to convert sales.

1. Conversational UI and voice search will redefine engagement



Zeina Farha, Head of User Experience

“There is great scope for Audio UI in designing for wearables, connected cars and connected home. Not only does it

remove barriers and improve the experience, but also it can bring a brand’s

personality to life”Mass adoptionEarly adoption



2. Everyday accessible proactive assistants

2016 has been jam packed with launches and news about digitalassistants like Google Home and A mazon Echo. In 2017companies are expected to focus on re-designing andintegrating contents and services within this channel.

One of the factors driving this AI boom i s the emergence ofplatforms like Microsoft’s Cognitive Service, Amazon’s Echo, andGoogle’s Speech API, which allow product developers to focuson user experience rather than low-level speech processing.

The personal assi stant proved to be a successful way to packageAI and machine learning functionalities, while opening up a newcommunication channel with consumers. Wit h only 2 companiesin the home space at the moment (i.e. Amazon and Google)other players such as retailers (Tesco? Argos?) and Telco (O2?BT?) may be considering to enter the arena with partnerships orlaunching their own device to drive adoption of their services.

• Google unveiled its home-based artificial intelligence personal assistant on November 4, 2016 for US$129

• On September 2016 Apple launched their AirPods, which are expected to deliver ubiquitous sound experiences

• Meanwhile Alexa reached 3M sales over the summer of 2016

2. Everyday accessible proactive assistants

Ben Magnus, Senior Product Manager

“Consumers are rapidly changing their behaviours as they adopt these evolving technologies. In the process,

they are demanding different products and services”

Mass adoptionEarly adoption


With billions of user s worldwide, today the majority of contentshared via mobile takes place on messaging apps suchas WeChat, WhatsApp, and Facebook Messenger.

It is no surprise that brands want to get access and be part of theconversation, experimenting new ways to connect and engagewith these audiences in more appropriate and sophi sticatedmanners.

Firstly, the large user base reached by messaging apps makesthem an ideal channel to deliver services. This led in 2016 to theexplosion of sales and customer service chatbots accessible viamessaging apps. This trend will continue in 2017, with new AI andMachine Learning platforms allowing to deploy more advancedand accurate bots.

Secondly, social occasions that drive purchases are brought tolife in messaging applications through private or group chats.Users exchange questions, plans, opinions and feedback aboutproducts and services they want to buy. In 2017 advertisingplatforms and brands will i ncreasingly try to engage andinfluence these conversation through messaging apps. Forexample, Google launched Allo, a new chat app that nativelyintegrates an AI-based chat assistant.

• Messaging apps downloads surpassed social media platforms in 2014 and are used by billions of people worldwide every day

• According to TechCrunch, 30,000 bots are today available on the Facebook Messanger platform, following the launch in April this year

• O2 has integrated sharing widgets and URL shorteners across its owned and earned media assets to track and understand how content is shared on messaging apps


3. Messaging apps are the new social marketing frontier

Source: RadiumOne Post social data, Feb 2016

UK Percent of online shares by channel, globally

7%9%

84%

Other social media

Facebook

Messaging apps

3. Messaging apps are the new social marketing frontier

Giffard Hogge, Innovation Executive

“Chatbots are not only useful, they are also smart and constantly learning from

interactions with users. This means that the responses for consumers are always up to

date and useful” Mass adoptionEarly adoption


The Apple and Play stores today features more than two millionapps. Promoting a new app has therefore become an incrediblydifficult challenge for brands and developers. According tocomScore, 49% of US users have not downloaded a new app inthe last 3 months while 2 out of 5 apps downloaded get forgottenor deleted within few days.

The app-install frictions have opened new opportunities forprogressive web apps. Instant Apps i s the latest model presentedby Google in 2016 to make that mobile experience more similarto the web without installing anything on your mobile, whilstkeeping all the benefits of the native apps world.

Instant Apps could be a game changer in 2017 especially forthose apps that are more transactional or for occasional usageand don’t require a high share of user time – e.g. shopping, traveland hotels, delivery. The model is expected to improve theexperience in many areas from di scoverability and onboarding tousage and monetisation.

During its I/O developers conference on May 2016 Google launched Android Instant Apps – a new set of features of the Android ecosystem that allow to deploy and use apps without them being downloaded to a device.


4. Instant apps to revamp progressive web ambitions

4. Instant apps to revamp progressive web ambitions

Chris George, VP of Product

“Instant Apps can become a market reality in an relatively short time frame – and radically change the way we develop consumer apps” Mass adoptionEarly adoption


No matter in which sector you work, companies have started tothink, design and maybe implement an Internet of Thingsstrategy. But few firms have understood how to achieve aconsistent competitive advantage through IoT. So what now?

It turns out that IoT initiatives are complex especially for productcompanies, because they require to change mindset toward aservice-oriented offering. In fact, the increase in communicationtouch points and in customer data inevitably opens upopportunities that in the long run transfer the competitiveadvantage from the products to the services offered.

In many sectors such automotive, home and appliances productownership is expected to be disrupted in favour of new ownershipmodels based on “sharing” or “leasing”. Meanwhile, the valueoffered through services like personalization, insights, customersupport and success will become the real competitive leverage.

In 2017 we will see more and more companies re-thinking theirproduct / service strategy, and re-design customer experience,operational structure and business model to take advantage ofthe opportunities offered by IoT.

• At TechCrunch Disrupt London Volkswagen has recently presented its new mobility services business called Moia

• In January General Motors launched Maven, a car sharing company offering customers a fleet of new vehicles on-demand

• These initiatives follow earlier successful acquisitions in the space by other competitors: Zipcar acquired by Avis, DriveNow by BMW and Car2Go by Mercedes Benz.


5. IoT-driven services strategy

5. IoT-driven services strategy

Max Moir, Head of Client Strategy

“In the UK there are already 4 million households who own at least one connected smart home device. The question now is how companies can take advantage of the data and contact points generated to deliver new services and revenue streams”




6. Live experiences become a viable opportunity for brands

In presenting the new live 360 video streaming service, FacebookCEO Mark Zuckerberg mentioned that we are entering a "goldenage for live video" , and that this format is the future of hiscompany.

This is why we believe that live experiences will be a big thing forbrands in 2017. With the two major video platforms YouTube andFacebook supporting live 360, brands will be increasingly keen onexperimenting with this new opportunity in a variety of differentcontexts, from live events, to marketing, from sales to educationand customer service.

The proliferation of accessible VR head-sets (like GoogleDaydream, Oculus Rift, Samsung Gear) users will be able to stepeven deeper inside branded experiences.

• A few days ago Facebookannounced the future release of live 360 video streaming on the social network platform

• This follows the launch of live 360 made by YouTube earlier this year

6. Live experiences become a viable opportunity for brands

Sam Harvey, Marketing Manager

“There are potentially no limits for using streaming videos as a business tool, if you are

creative enough. Live events and concerts, behind-the-scene sets, infotainment, product showcases,

sales demos, partner education programmes, customer support. And these are just few

examples”Mass adoptionEarly adoption


At the end of 2016 Amazon unveiled Amazon Go, a new bricks and mortar grocery store concept where customers pick up their grocery and walk out without paying at a checkout. The announcement is expected to have a deep impact on the retail marketing agenda throughout 2017.


7. Ubiquitous shopping, invisible payments

The proliferation of mobile devices has radically changed thepath to purchase, multiplying the points of contact and sales. Thebuying process potentially starts on smartphones, continues ondesktop and tablets, and is completed through connected homeassistants.

The announcement of Amazon Go launching early next year hasalso generated a significant hype around invisible finance. Weshould not forget that frictionless payments have been around forsometimes now, perfected by some of the most successful techcompanies in the market. With Uber you just have to thank thedriver and jump out the cab. Similarly, you can just pre-order yourcoffee with the Starbucks app, pick them up in a café’, walk outand enjoy your drink, while the app will use your top-up credit tocomplete the transaction.

This evolving scenario makes ubiquitous shopping and invisiblepayments one of the most important trends in marketing andfinance today, making commerce and transaction seamless andmost natural possible.

7. Ubiquitous shopping, invisible payments

Carl Uminski, Chief Operating Officer & Co - Founder

“The innovations that have reshaped the online shopping experience will be increasingly transferred to the real world. Shopping doesn’t have to be

complicated. Finance doesn’t have to be visible”




2016 was a great year for consumer VR and AR, with all majorplayers from Samsung and HTC to PlayStation and Googlelaunching their new headsets. GPU and hardware costs stillrepresent a significant barrier for wider adoption of premiumproducts, therefore we expect VR technology will need a fewmore years to become mainstream.

However, 2017 can become an important year for thedevelopment of contents and experiences for VR. We alreadysee ambitious projects starting for exciting year ahead for VR.Facebook has been showing strong desire to explore social VRpossibilities. Starting from small games and explorations,Facebook is likely to start creating engaging multi-peopleexperience. We expect contents to be built around education,gaming, architecture, automotive, real-estate, sports, productpresentations and shopping. For instance, Fox Sports in December2016 was already incorporating VR into their event broadcastingto enhance customers’ experiences of the Soccer game.

In New Year we look forward to developers launching VRequipment that has inbuilt depth sensors for room mapping, noexternal dependencies, no cables whatsoever, eye tracking andfacial expression recognition (though for the facial recognitionwe might have to wait beyond 2017). This would create immensepossibilities for VR consumers and stakeholders alike.

2016 was a pivotal year for consumer VR. While Vive and Oculus launched products positioned in the upper end of the market, adoption is expected to be driven by mobile-based HDM such as Samsung Gear and Google Daydream which mix simplicity with an attractive price tag.

8. Consumer VR moving from hardware to content

8. Consumer VR moving from hardware to content

Jocelyn Bull, SVP Client Solutions

“Today commercial VR headsets are available in more and more high street shops with

attractive price points. It is clear that manufacturers and brands need to move from

focusing just on hardware and wow-moments to creating meaningful experiences and content”



9. Hyper-Targeted Marketing driven by data

The proliferation of data generated by a multitude of devices hasfostered tremendous business opportunity, especially foradvertisers looking to reach users at the right moment, in the rightcontext at the right time.

Driven largely by platforms such as Facebook and Google, withtheir contribution to overall growth being 76% market share in theUS (59% and 18% respectively in 2015), now more than ever thedata points marketers have available are driving value in waysthat we would not have been possible previously.

Whilst all of these data points available such as interest basedbehaviours, location, gender, age and demographic profilesenable marketers to build a user profile and segment them toallow for personalised and localised messaging; it’s essential to beaware of privacy laws and ensure that compliance is key. Thi s isespecially true as the new EU GDPR legislation comes into play inMay 2017.

Trending creative formats: App store search (Search Ads forGoogle Play and Apple Search Ads), Video – 360 video andvertical video, App streaming ads.

• Mobile display adspend overtook desktop display in H1 for the first time (£802m Vs. £762m).

• Facebook and Google dominating mobile adspendwith 76% growth

Source: IAB UK and Mary Meeker Internet Trends Report 2016

£762m £802m

MobileDesktop

UK Display Adspendin UK, H1 2016

The Digital DuopolyFacebook + Google =

76% of growth


Naomi Hands, Director of Commercial Partnerships

“2017 will be the year that we see a big turning point for data driven

marketing that enables advertisers to achieve localisation and personalisation at scale”


9. Hyper-Targeted Marketing driven by data


Emma Crowe, Chief of Client Strategy

Last words

“A new stage of technological evolution is emerging driven by technologies such as

machine learning, mixed reality, image and voice recognition. We expect these new

technologies to become core elements within the connected mobile space in a few years”


2. Everyday accessible proactive assistants3. Messaging apps are the new social marketing

frontier4. Instant apps to revamp progressive web ambitions5. IoT-driven services strategy6. Live experiences become a viable opportunity for

brands7. Ubiquitous shopping, invisible payments8. Consumer VR moving from hardware to content9. Hyper-Targeted Marketing driven by data

The Top Tech Trends in 2017

If you need help navigating the trends in 2017, you can contact us at: [email protected]