CARAT@CES2018
CES 2018
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CARAT@CES2018
Approximately 180,000 people attended CES this
year, hitting a record high.
Nick Brien, Dentsu Aegis Network CEO, Americas
took the stage on the first day of the DAN Clubhouse
with David Bell and Tim Armstrong, CEO of Oath to
talk about their experiences as leaders in media and
the importance of shifting to a people based
approach the real question was, "Why come to a
conference where you could learn everything you
need to about the topics online?"
The answer is evident, people crave human
experiences. These experiences happen in real life,
and the shift has begun to move to a more intimate
people based approach digitally.
With the vast amounts of technology displayed at CES
our Carat Innovation and Strategy team was
determined to fully immerse themselves in the CES
experience to find the most meaningful (and also
uncertain futuristic) technology. Check out what we
have found out on our travels…
“HOW DO WE INNOVATE THE WAY BRANDS ARE BUILT...
WE FOCUS ON MARKETING SOLUTIONS FOR REAL PEOPLE”
- Nick Brien, Dentsu Aegis Network CEO, Americas

CARAT@CES2018
SAFETY &
SECURITY
VOICE
&
VIDEO
5G
AUTONOMOUS
CARS
AMAZON
VS.
GOOGLE
SCREENS:
TV, VR
& AR
ROBOTS
SMART
CITIES
CARAT’SCES
2018TRENDS

CARAT@CES2018
SECURITY
&SAFETY
Brand safety and data security have been hot topics
in the press, and CES 2018 was no exception.
With the ever expanding universe of IoT products,
pretty much anything in your life with a Bluetooth
connection could provide a serious data breach.
145M Americans were affected by the Equifax
breach and hacks are becoming a regular
occurrence in the press, so this should be a key
focus for all of us as consumers and brands. The
creativity of hackers will continue to evolve along
with consumer behavior.
The launch of 5G networks will enable an
enormous number of new devices to flood the
connected marketplace, creating the opportunity
for new breaches from new entrant devices. When
looking to create deeper connections with your
consumers on a one-to-one level, we'll need to
consider the platforms we ask for sensitive,
personal information to ensure the safest
experience for all. Brands should be looking into
their own data protocols, understanding not only
their software shortcomings, but their hardware too.
Marketing buzzword of the year, Blockchain, will
have some interesting solutions for device safety.
Companies like Californian based, SmartAxiom, are
building end-to-end, scalable, IoT security platforms
that can secure personal items in your life such as
your connected home, and (eventually) autonomous
vehicle, to smart cities and industrial IoT.
Consumers will expect brands to be able to keep their data
safe, and as we saw with the recent data breach from
brands like Uber, it will make or break consumer retention.

CARAT@CES2018
NETWORKSFOR
THEFUTURE:5G
As consumer expectation for speed and quality
content streaming increases, so do the needs of the
network delivering this data. Enter the next
generation network, 5G.
5G stands for fifth-generation network technology,
and it should transform our digital lives as we start
to expect more of our devices and services to be
always connected to the internet.
The expansion of IoT (Internet of Things) devices in
households and the reality of autonomous vehicles
needing to be connected and sharing data, we
need a network that will be robust and fast enough
to handle the increased data pressures.
As 5G technology matures and processing moves to
the edge of the network, experts anticipate not only a
bevy of new services, but also device improvements
thanks to the reduction of power consumption.
In the U.S., the telco giants are battling out their 5G
rollout with AT&T announcing they are spending over
$40M as part of the pre-5G evolution program in
Minneapolis, Minnesota ahead of next month’s Super
Bowl, easing that ‘stadium network freeze’ that usually
happens with network access at crowded, public events.
However, many experts were quick to point out that
until 5G chips are in smartphones (predicted by early
2019) the rush to rollout in 2018 is pointless.

CARAT@CES2018
AUTONOMOUS
CARS
Autonomous Cars may feel like something out of a
sci-fi movie, but CES proved that self-driving car
technology is coming on leaps and bounds. A
partnership with Lyft and Aptive provided over 400
rides to CES attendees with 99% of those miles
covered by its autonomous mode. This successful
first pilot means Lyft is looking to expand it’s testing
to another U.S market.
Autonomous announcements were widespread
from big auto brands, with Nissan looking into
building a platform infused with human reactions,
Ford’s self-driving delivery vehicle in partnership with
Postmates that will be testing in a currently un-
named city this year, and Toyota showing off their
concept cars and delivery vehicle the ePalette. The
ePalette looks like something from future, but with
collaboration from partnerships inked with Uber,
Amazon, Pizza Hut and Mazda, the future
development of these vehicles seems realistic.
With the ‘Self Drive’ Act clearing the House in a
unanimous vote in Sept 17, it seems autonomous
cars will become a reality in the U.S. sooner than
later.

CARAT@CES2018
BATTLEOFTHETITANS:
AMAZONVS.GOOGLE
CES 2018 was dominated by voice assist infused
products, and who’s voices are battling it out?
Amazon’s Alexa and Google Home.
CES 2017 saw Alexa dominate as the preferred
voice platform for new consumer products coming
to market. However, we’re seeing the chips fall with
providers making an ecosystem bet on one or the
other, and some building for both.
E-Marketer in April 2017 shows Alexa’s share of US
voice-enabled Speakers at roughly 71% with
Google Home sitting at 24%. Interestingly, Alexa is
winning in functionality, offering simple voice
commands paired with market leading fulfillment in
Amazon, however Google Home is powered with
the enormous superior language recognition and
search functionality, so we expect this current share
of market to balance out as we see consumer
expectations of voice evolve.
There was SO much voice assistant integration at
CES 2018 that it came to be expected.
The Verge’s executive editor, Dieter Bohn put it
perfectly ‘…we will be reporting when a gadget
DOESN’T have Alexa or Google Assistant.’
As products become more reliant and provide better
services for consumers in voice, we will see adoption
rate continue to increase at a rapid rate, and brands
need to test now to ensure they don’t get left behind.

CARAT@CES2018
“People are 22x more likely to remember stories than
facts. We are all hardwired to see and create stories.”
Jen Zimmerman, Global CSO of mcgarrybowen said
as she opened the Dentsu Aegis Network Clubhouse
stage planned for a day filled with discussions on The
Future of Storytelling.
However, given that people are smarter and more
distracted than ever, brands need to be clear and
focused in their approach to storytelling. Jen and Pam
Drucker Mann, Chief Revenue and Marketing Officer
of Conde Nast, discussed the challenge of being a
subtle storyteller. Brands need to be bold and brave to
breakthrough today’s complex media environment,
and Conde’s brands are doing exactly that.
Teen Vogue took a sharp turn from mainly reporting
on fashion to being a leading voice in social issues
relevant to the female youth audience. The discussion
wrapped up with a rallying cry urging brands to think
about "story-catching" vs. "story-telling," to create the
most relevant content that will captivate the audience.
”TIMES CHANGE, AND CONTENT IS A REFLECTION
OF THE TIMES WE ARE LIVING IN."
- Pam Drucker Mann, Chief Revenue & Marketing Officer, Conde Nast

CARAT@CES2018
VOICE&
VIDEO
Google was impossible to miss at CES this year with
an extraordinary takeover of super-sized digital
billboards, wrapping the Las Vegas monorail,
topped off with their giant installation, the Google
Playground, that played host to the MASSIVE
number of IoT devices it is integrated with. From
doorbells to humidifiers, connected cars to
connected watches, however for us, it’s
development of smart displays with manufacturers
Lenovo, LG and JBL show off the power and
functionality that the full Google suite can offer.
By connecting search, to reviews, to maps, as well as the
power of voice AND image search, Alexa may have some
serious competition in this powerful combo from Google.
Video and voice are transforming the way we search
and discover things at breakneck speed. Scientifically,
text is much more complicated for the human brain to
process whereas visual information can be processed
60,000 times faster than text and is easier to remember.
As we see the evolution of search move into more
‘human-friendly’ interfaces, we will see the power of
voice paired with video becoming a game changer
for entertainment and utility. Voice commands will
enable more functional, quick experiences, with
video becoming pivotal to discovery and context.

CARAT@CES2018
THEFUTUREOF
SCREENS:TV,AR&VR
It wouldn’t be CES if we didn’t talk a little bit about
TVs. Over the last few years, 3D TVs and curved
screens haven’t really taken off, and at CES this
year we saw manufacturers concentrate on picture
quality, voice integration and a sense of screens in
house, without overpowering people’s homes, with
projectors from Sony and Hisense.
8k TVs are definitely on their way, but until we see
content created for 8k screens, there’s little point in
worrying. As with all technology, we’re seeing the
cost of 4k, smart TVs drop, which will provide a
range of exciting opportunities in screen advertising
across programmatic TV.
Samsung’s enormous VR experience at Tech East
looked like a tech-infused theme park and shows the
power of immersive experiences in the right use case,
but VR has lost momentum for brands and
consumers alike.
It seems AR (Augmented Realty) has become the
new hype trend for experts and the show floor was
littered with AR headsets, some akin to the
awkwardness of Glass but others starting to take on
a more appealing form factor for consumers. The
application of AR is undoubtedly more scalable with
it’s integration into mobile, and is rumored a key
focus for Apple moving forward. We recommend
brands start experimenting in this space to entertain
and add informative layers to brand and product
experiences.

CARAT@CES2018
When asked about the biggest thing in B2B marketing
in 2018: “more marketers need to use AI to get
insights, not just data. We need to know what the
data means. It helps us predict what moves our
customers may make next.”- Liam Blackwell, gyro.
When thinking about implications for clients: When
you aren’t a tech company, making the case to invest
in AI and automation can be like moving a mountain,
but it’ll be critical to get ahead in 2018 and beyond.
However, algorithms will not necessarily highlight
brand concerns and cultural context issues, a balance
will need to be made.
Hot of the press with the fusion of human and AI
solutions, Google has just announced it’s response to
brand safety concerns across the platform.
This solution will leverage both humans and machines
and will involve 10,000 new hires in 2018 focused on
brand safety. They’ll be focused on both resolving
issues and creating proactive solutions including:
o A new approach to monetization on YouTube
o Manually curating Google preferred
o More control and transparency for brands and
agencies
o More rigorous approach to controversial content
“EMPTY CALORIES OF CHEAP CLICKS AND RISE OF
FAKE NEWS IN 2017 HAVE MARKETERS
RETHINKING THEIR APPROACH TO DIGITAL”
- Jann Martin Schwartz, Global Director, Agency & Channel Strategy, LinkedIn

CARAT@CES2018
ROBOTSFOR
BETTERORWORSE
Year on year, we see more wild and wacky robots
that can cause controversy or amazement at CES.
We love robots that can offer solutions to human
problems or frustrations; hate vacuuming? Get an
iRobot Roomba. Need your washing folded? Get a
Foldimate. The options are becoming endless.
Interestingly, companion Robots have been a
growing trend and can offer one-to-one attention to
consumers in need. Below AvatarMind’s iPal robots
function as teaching assistants in the classroom or
as companions that can help with elder care.
There was, however, a seedy underbelly to the Robot
trend, with Sapphire Gentleman’s Club showcasing
an art installation from British artist Giles Walker.
The original purpose of the work was to make a
comment on the voyeuristic culture of CCTV,
however his work has somewhat morphed into a
broader conversation over the future issues of
sexualized robots. This pole-dancing installation got
a lot of coverage in the press as a gimmick, but
should be a cautious reminder to brands in this
space when thinking about human interactions and
intentions with robots.

CARAT@CES2018
SMART
CITIES
With the rise of consumers taking charge of their
utilities at home with connected thermostats, smart
blubs, connected sockets, we’re seeing this trend
scale, as governments start looking at ways to
improve infrastructure, sustainability and quality of
life of their citizens through the rise of smart cities.
Global spending on smart cities is projected to
reach $34.35 billion by 2020 and this was the first
year the conference launched CES Smart Cities to
cover this booming market.
Why Smart Cities? Steve Koenig, Senior Director,
Market Research at the Consumer Technology
Association (CTA)– the owner and producer of CES
eloquently says “The tech community is committed
to and passionate about changing lives for the
better, and smart cities have the potential to
address the need for more sustainable and livable
cities around the world. With the Internet of Things
(IoT) as a foundation, technologies such as
automated street lighting, smart energy meters,
parking assistance apps and sensors have the
ability to make cities safer, more efficient and more
accessible…
The United Nations predicts 66% of the world’s
population will live in urban areas by 2050 – so, now
is the time to harness technology’s potential to
improve urban life.”
Brands should start thinking about their impact on
cities in their manufacturing processes, and how new
technologies can make them more efficient and
sustainable, as well as looking at the data they
collect that could be used to help smart cities e.g.
connected car manufacturers providing data to cities
to aid congestion and road safety.

CARAT@CES2018
CARAT focuses on brand and product experiences
that start and end with what is relevant and
meaningful to consumers. As we continue to focus
on people based marketing, we look to these
trends to understand the contribution they will
make to consumer’s lives and how brands can
offer value in this evolving market.
5G As consumer expectation for speed and
quality content streaming increases, so do the
needs of the network delivering this data. Enter the
next generation network, 5G. However, many
experts were quick to point out that 5G chips
won’t be in smartphones until early 2019, which
means we have some time until it’s mainstream.
As quality of service and streaming increases on
devices expect consumer appetite for content on
channels currently seen as ‘second screens’ will
become prevalent.
AMAZON VS. GOOGLE CES 2018 was
dominated by voice assist infused products, and
who’s voices are battling it out? Amazon’s Alexa
and Google Home. As products become more
reliant and provide better services for consumers in
voice, we will see adoption rate continue to
increase at a rapid rate, and brands need to start
testing now with this more personal medium to
ensure they don’t get left behind.
VOICE & VIDEO As we see the evolution of
search move into more ‘human-friendly’
interfaces, we will see the power of voice paired
with video becoming a game changer for
entertainment and utility. Voice commands will
enable more functional, quick experiences, with
personalized video becoming pivotal to discovery
and context.
AR The hype of VR has moved onto the
possibilities of AR. The application of AR is
undoubtedly more scalable with it’s integration
into mobile, and is rumored a key focus for Apple
moving forward. We recommend brands start
experimenting in this space when they need a
more immersive solution, to both entertain and
add informative layers to brand and product
experiences.
IMPLICATIONSFOR
BRANDS

CARAT@CES2018
CARAT USA
150 East 42nd Street
New York, NY 10017
Carat.USMarketing@carat.com
CES 2018
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REPORT