outlook 2014 mid-year review
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In January, we released Outlook 2014, identifying four key themes that we believed would play a major role in consumer behavior over the coming year: Internet of Things/Anticipatory Computing Notification Nation Data Doing Good Generation Y and Z Let’s look back to see where we are now, and look forward to see where the trends are going in the second half of the year.TRANSCRIPT
Outlook 2014 Mid-Year Review
August 7, 2014
We are the IPG Media Lab, and we provide innovation and insights for audience-based solutions.
© 2013 IPG Media Lab. Proprietary & Confidential
Looking back, looking forward: where we are now
In January, we released Outlook 2014, identifying four key themes that we believed
would play a major role in consumer behavior over the coming year:
!• Internet of Things/Anticipatory Computing
• Notification Nation
• Data Doing Good
• Generation Y and Z
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The Internet of Things and Anticipatory Computing
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Smart devices are creating new ecosystems
As more devices become “smart”, they create data that developers and marketers can use
to deliver value to consumers. Three verticals in particular are leading the way:
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Sources: http://www.wired.com/2012/08/umtri-michigan-connected-car/vehicleswithcircleshighway-660/ http://siliconangle.com/blog/2014/01/21/the-connected-home-is-streets-ahead-of-wearable-tech/connected-home-kitchen/ http://www.isaac-katz.com/blogs/news/8333671-3d-printing-and-the-future-of-retail
Cars Home Retail
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Consumers already recognize the potential benefits of IoT
As people already use their mobile phone in cars (legally or
not), it makes sense that that’s where they see the most
benefits from incorporating smart technology.
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Cars are becoming an extension of the mobile phone
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Home is where the data collection is
Google’s acquisitions of Nest and, most recently, Dropcam illustrate that the home is a platform
open to data collection and integration into the web. And at Google I/O 2014, announcements
involving Android Wear and Google Fit, Android Auto, and Android TV showed that the company is
clearly moving toward a comprehensive ecosystem for users.
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Image sources: Nest: http://downloads.nest.com/nest_uk_away.png Dropcam: https://www.dropcam.com/press/images
© 2013 IPG Media Lab. Proprietary & Confidential
Beacons and other proximity tools are on the cusp of reinventing retail
Brands and retailers are taking the first steps into
implementing this technology, such as this SAP’s Connected
Vending Machine, which we spotted at the Mobile World
Congress in Barcelona in February 2014.It includes an iBeacon, NFC reader, facial detection, and social
media integration. It even has a loyalty program which
remembers your favorites and lets you send gifts to friends.
!Other retailers have also experimented with installing beacons
in stores, including American Eagle and Macy’s, and we expect
more companies will roll out similar programs in the next six
months.
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How is this affecting human behavior?
Smart devices are ultimately tools that people use to create and control content. Brands that can contribute to content, whether by helping audiences create it, control it, or both, can morph into services that offer true utility.
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Publishers and brands must remember 3C’s of IoT:
Constant
Data never sleeps: more smart devices are always on, making it possible—and
necessary—to process data and deliver results both on a real-time basis and
over time for deeper analysis.
Convenient
Consumers seek value from their services, whether that’s in terms of time,
money, or status. In fact, at Consumer Electronics Week, the desire for
convenience was ranked above safety and security in terms of driving
connectivity in cars.
Context
Location- and time-specific messaging is more important than ever, and
becoming increasingly possibly from a technological standpoint.
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What do we expect in second half of 2014?
1. More smart devices solving dumb problems as people struggle to create frictionless experiences between devices and between devices and people.
2. More partnerships and open platforms between developers, manufacturers, and publishers
3. Consumer adoption dependent upon replacement cycles
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Data Doing Good
© 2013 IPG Media Lab. Proprietary & Confidential
The data created by these smart devices is leading to greater questions about privacy:
• Edward Snowden’s virtual interview one of the hot topics at SXSW
• Google starting to remove search links in Europe as “right to be forgotten” law implemented
• The US Supreme Court ruled that searching a cell phone requires a warrant
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© 2013 IPG Media Lab. Proprietary & Confidential
Data from programmatic buying is starting to expand out of the online market
Data can help drive decisions in the real world, not just online. IPG recently invested in AdStruc, which allows
advertisers to purchase OOH programmatically.
!
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“ADstruc has managed to do what no player in the ad space has done before. It has obtained the buy-in of all the major operators as well as hundreds of smaller regional
owners of outdoor, in order to seamlessly consolidate, track and buy outdoor media.” — Chad Stoller, Managing Partner, IPG Media Lab
“‘We are bullish on the current value proposition of combining the principles of digital with the scale of TV to deliver programmatic TV audience buying. This approach delivers
granular audience targeting, accountability, and performance based metrics’.” — Matt Bayer, VP of Advanced TV, Cadreon
© 2013 IPG Media Lab. Proprietary & Confidential
The key to using consumer data is consent: opt-in, not opt-out
Placed, for instance, has a panel of over 100,000 Americans
who have opted-in to location tracking. Panelists are regularly
surveyed on places they have gone and activities they’ve done,
and are rewarded with points. According to CEO David Shim,
participants actually look forward to receiving a survey
because it gets them closer to earning a prize.
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Facebook’s psychological research can be a “teachable moment”
The Facebook experiment, in which hundreds of thousands of
users’ feeds were manipulated to study their reactions, was
heavily criticized for researching people without their consent.
When we conduct research at the Lab, we’re very careful to
recruit paid participants who have consented to being studied,
even if they do not know the specifics of the experience.
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Source: xkcd
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What do we expect in second half of 2014?
1. Continued debate around privacy and who owns and uses data
2. More emphasis on the value brands provide in exchange for consumer data
3. Television and other ad markets move towards programmatic
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Date
Notification Nation
© 2013 IPG Media Lab. Proprietary & Confidential
In today’s info-overloaded, distracted culture, you have to earn attention
To combat shrinking attention spans, information has become: !
• More visual • More timely • More personal
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© 2013 IPG Media Lab. Proprietary & Confidential
Wearables open up new opportunities for alerts
Ringly, a “smart ring’ that connects to a phone via Bluetooth,
lights up in various colors and patterns to notify users of
incoming messages, and can be customized based on each
user’s preferences.
!Although Ringly and similar wearables are still in their infancy,
they have the potential to create a unique opportunity for
marketers who want to alert fans to special messages. Imagine
a band announcing a new song via a blue light or a sports team
celebrating each goal with flashing team colors.
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Instant rewards keep people engaged and open to buying
Our media trial with Kiip showed that rewards boost all brand attributes and increase purchase intent 133%.
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© 2013 IPG Media Lab. Proprietary & Confidential
But when it comes to notification, less is better
Intrusive notifications can quickly overwhelm the user, so they should be designed to be as efficient as possible. During Apple’s WWDC, the company announced that their notifications can be acted upon without entering the app, providing a more seamless experience. !
Once, frictionless is better; consumers shouldn’t know it’s there.
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What do we expect in second half of 2014?
1. Continued shift to visual, passive information
2. More branded messages, less intrusion
3. More personalized rewards for engagement
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Generations Y and Z
© 2013 IPG Media Lab. Proprietary & Confidential
Younger generations are often early adopters of new tech, which spreads to the general audience
Messaging apps were initially adopted by Generations Y and Z as a way to communicate without
broadcasting information to their entire social network. Far from being a sudden phenomenon, the timeline
below shows how text messaging and apps have gained traction over the past decades. We anticipate that
these apps will follow a similar pattern as Facebook, where older users soon followed, making apps a useful
platform for all audiences.
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© 2013 IPG Media Lab. Proprietary & Confidential
Visual messaging continues to appeal to this group
As part of their recent anti-smoking campaign, charity “Quit”
created Vines with the message that every six seconds, a
smoker dies.
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What do we expect in second half of 2014?
• More visual design • More brands moving to messaging apps • More fads and experimentation
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© 2013 IPG Media Lab. Proprietary & Confidential
Want to learn more?
Recent POVs and Studies • From ‘Like’ to Love: How Brands Can Woo Users on Messaging and Dating Apps • Smart Devices, Smarter Brands: How the IoT Is Creating New Ecosystems • A Network for Every Interest: How People Actively Manager Their Social Profiles
across Multiple Platforms • Moments That Matter Study • Stores and Shoppable Media: How Personality, Purpose, and Publishing Create
Unified Customer Experiences !Upcoming Reports and Coverage • The Future of Over-The-Top Television • Connected Car • Advertising Week !… and of course, Outlook 2015!
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© 2013 IPG Media Lab. Proprietary & Confidential
Thanks!
We hope you’ve found this Outlook 2014 review interesting and provocative. If you have questions or want to talk more about the future of media, please contact us: !
ipglab.com [email protected] @ipglab
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