1.
2018
Trends
18 FOR

2.
18 FOR

3.
epsilon.com ©2017 Epsilon Data Management, LLC. Private & Confidential
2018 will usher in an evolution of experience. We will see technology that empowers
consumers, intelligent systems that will enhance our lives and the definition of reality and the
blending of physical and digital will begin to converge and redefine our world. Our new trend
framework focuses on the core behaviors driving technology adoption and engagement. As
a data-driven growth engine for clients, our goal is to look at every new technology and trend
through a behavioral lens to understand why consumers gravitate to specific technologies and
how those technologies establish and amplify new behaviors.
Our new trend framework focuses on the following three core areas:
Empower - Trends that allow consumers to own, create, and democratize experiences.
Enhance - Trends that enhance daily life activities and responsibilities through intelligent
systems and proxies.
Environment - Trends that lead to the frictionless connection between physical and digital
experiences, reshaping our environment.
These three behavioral drivers align to provide consumers overall EXPERIENCE.
Tom Edwards
Chief Digital Officer, Agency
UPDATED TREND
FRAMEWORK
EXPERIENCE
EMPOWER
ENVIRONMENT ENHANCE
AGENCY 3

4.
5AGENCY
TABLE OF
CONTENTS
ENVIRONMENT
38
ENHANCE
24
CONTEXT
6
EMPOWER
10
BEYOND
52

5.
7
EXPERIENCE
ENHANCEEMPOWER ENVIRONMENT
CONTEXT
Data – Cognitive Systems – APIs
Contextualizing
the Framework

6.
epsilon.com ©2017 Epsilon Data Management, LLC. Private & Confidential
9
Earlier this year, we conducted a study of 420 respondents to understand the impact,
acceptance, interest, etc. in artificial intelligence amongst Gen Z, Millennials, Gen X
and Boomers.
Throughout this book, you will find that some pages utilize research by visually showing
either how excited, apprehensive, or knowledgeable a given cohort is about a technology.
UPDATED TREND
FRAMEWORK
GenZ
GEN Z
(Ages 13-17)
105 respondents
Indicates Positive Sentiment
Indicates Neutral Sentiment
Indicates Negative SentimentMILLENNIAL
(Ages 18-34)
105 respondents
GEN X
(Ages 35 - 54)
105 respondents
BABY BOOMERS
(Ages 55+)
105 respondents
GenXMill Boom
+
–

7.
AGENCY 11
EMPOWER

8.
AGENCY 13
Over the course of this past year, companies such
as Apple and Facebook joined the likes of Snapchat
and discussed their vision of building the camera into
a platform. A mobile camera is a user’s theoretical
window to the world, bridging physical with digital.
As these companies open up this platform and create
tools to enable consumer experiences, we see a
fundamental shift in how the camera is used.
An underlying theme throughout these 2018 trends
is how new hardware and software are enabling
new use cases. Giant screens, incredible processing
power, and amazing cameras have become table
CAMERA AS
A PLATFORM
Ikea’s new Place app takes
advantage of Apple’s ARKit
to allow users to place virtual
furniture around their home. Users
are able to then save and reserve
products, eventually being able to
purchase directly from the app.
stakes on the new generation of smartphones. This
has enabled third parties to create compelling camera
effects through SDKs such as ARKit and ARCore. In
turn, consumers are empowered to create and share
content using these effects.
As we move forward, it will be increasingly important
to enable camera experiences using contextual and
unfiltered data sets in combination with Augmented
Reality (AR) effects. Essentially, this will allow the
user to create experiences in real time that are
personalized and contextually relevant.
GenZ GenXMill Boom
Implications
Brands need to start shifting their focus from creating content to creating experiences that enable consumers
to create and share content. One of the best ways to do this is by building for the camera, which will
increasingly be optimized into more and more consumer experiences.
Empowering your consumers to create and share while interacting with your brand is going to be incredibly
important moving into 2018 and beyond. As a marketer, the best way to start is to determine what new
capabilities will integrate well into your brand’s message and what data sets will be able to enhance them. AR
frames, filters, interactive apps, and physical triggers are all options to be investigated.
+ +

9.
AGENCY
Price, accessibility, and isolation are a few of the driving
factors that have hindered Virtual Reality’s (VR) takeoff into
the mainstream. While there have been incremental gains in
all of those categories, 2018 is going to be a year in which
the community makes great strides to ensure VR is much
less of an isolating experience.
Facebook addressed this issue by launching Spaces, a
personalized virtual world allowing you to meet, interact and
share with other virtual avatars. Soon, you’ll be able to watch
VR GETS
SOCIAL
concerts, sports, movies and TV with other avatars in a space
called Venues.
While it’s certainly cool to interact with others in VR,
interacting back into the real world will help to contribute
to mass adoption. Virtual avatars can initiate video calls to
users on their desktops, upon which their image will pop
up, and physical users will get a view of their virtual world.
Additionally, VR avatars can take selfies and share content
back on the Facebook news feed.
Implications
As VR continues to break down barriers to adoption, it will be key for brands to integrate themselves into the platform in
ways that feel natural for the user. This will become more important as it gets easier to bridge the inherent isolation gap
that comes with a traditional VR experience.
An easy foray into this space is by creating branded 360-videos, which users can experience in VR as well as in traditional
platforms. Moving forward, brands should look to enable consumers to discover and engage with their products and
services in a virtual environment, while allowing them to share their experiences with others.
Bridge the inherent
isolation gap that comes
with a traditional
VR experience.
Facebook Spaces allows
virtual avatars to video
conference with users on
the traditional Facebook
platform, bridging the
isolation gap associated
with VR.
15
GenZ
GenX
Mill
Boom
+

10.
AGENCY 17
It used to be that software providers would introduce
a great product, gather a user base, and expand to
include messaging capabilities. Today, that model has
been flipped on its head. Messaging services expand
to include all forms of software.
Social messaging apps began as a way to connect
and converse with friends and family. In recent years,
we’ve seen the interaction model with these apps
change to take a more prominent role in our lives.
Businesses and third parties are now able to integrate
themselves into the user experience; creating an
entirely new consumer portal. As we move into 2018,
EVOLUTION OF
SOCIAL MESSAGING
Facebook Messenger allows groups to bring third party services into their conversations,
making it easy to choose a location, order food, and pay, right in the conversation. The M virtual
assistant will contextually understand a conversation, and recommend personalized options.
expect this trend to continue as the likes of iMessage,
Facebook Messenger, Slack, WeChat, and more
attempt to consolidate services through APIs and
downloadable ‘mini-apps.’
By integrating all of these services into one place,
these apps are focusing on empowering consumers
to discover, engage and convert with their local
businesses as well as national brands. These
interactions can also occur in group messaging,
leading to easier planning and facilitating of offline
social events.
GenZ GenXMill Boom
Implications
Using machine learning algorithms, these conversations are inherently personalized, and contextually relevant
to the end user. Integrated services will be able to tap into the mass amounts of data these companies collect
and use models to offer the ideal product.
For consumers, these messaging apps are natural, and they feel safe. Brands that can successfully integrate
themselves and offer a form of utility will be able to reach their consumers at a place they’re already at,
leading them further down the purchase funnel.
+ + O O

11.
AGENCY 19
Intertwined with these trends is the idea that brands should focus less on
creating and pushing content, and more on enabling consumers to create and
share themselves. This doesn’t just hold true in the digital world. We’ve seen a
few great examples of experiences that are created in the physical world, with
the goal of enabling user created content in the digital world and we expect
this trend to pick up throughout 2018.
Most notable is the popularity of Instagram-themed museums. These are art
exhibits that are interactive and offer picturesque backdrops not found in the
real world. People flock to these museums, with names like the Color Factory,
the Museum of Ice Cream, Rain Room, and 29Rooms, to capture the perfect
Instagram shot.
Additionally, physical retail stores will increasingly set themselves up to
enhance a consumer’s digital presence. This will be done through interactive
displays, augmented reality triggers, shareable content and more. Our physical
experiences will increasingly be intertwined with our digital lives.
PHYSICAL EXPERIENCES
THAT ENHANCE DIGITAL
Implications
By now, brand marketers should understand the value that social media can
bring them. Enhancing the ability for consumers to interact and share with your
brand is of the utmost importance. Sponsoring or creating one of these exhibits
will lead to an increased brand presence on social media.
At the 29Rooms museum in New York, seven of the 29 rooms are sponsored by
brands. This includes a runway by Aldo, where visitors can practice their model
strut underneath an arch decorated with shoes. This effectively integrates the
brand into a physical experience that can be easily shared.
The Rain Room,
pictured here, uses
a field of sensors to
ensure that participants
can walk through the
exhibit without getting
wet. The lighting is
perfectly set up to
create the ultimate
Instagram opportunity.

12.
AGENCY 21
The gaming industry has continually contributed to
industry-wide shifts in consumer behavior and has
paved the way for immersive entertainment. This
has led to a monumental rise in the popularity of
eSports. eSports brings together consumers who
want to connect, share, and compete in new ways
that traditional sports can’t provide while offering easy
ways to watch and follow your favorite teams
and players.
The numbers don’t lie. By 2019, viewership of eSports,
among those who watch one or more times a month,
IMMERSIVE
ESPORTS
is expected to grow from 90M to 180M viewers, with
revenue expected to surpass the billion mark. In
comparison, on average, only 20M viewers tuned in
for the 2016 NBA Finals.
The next evolution of eSports will be immersive. VR
eSports leagues exist and will only get more popular as
the hardware paves the way for new entrants. Haptic
feedback suits and positional sensors will set the stage
for an entirely new era of immersive gaming
and competition.
Implications
To tap into this massively engaged audience segment, brand marketers need to look beyond just sponsoring
events, teams, and players to developing the right data-driven ecosystem that taps into the strengths of
eSports being an omni-channel platform.
Additionally, brands can get ahead of this trend by partnering with or developing immersive eSports
experiences, from AR mobile apps to expansive VR platforms. As more and more of gen Z and millennials
adopt these games, we’re likely to see a great first mover advantage for those that can successfully integrate
themselves into the ecosystem.
GenZ
GenX
Mill
Boom
+
O
O
O
The first national VR
eSports championships
took place in May.
Participants and critics
alike believe that the
more physical nature of
VR eSports could be the
key to its success.
VR eSports leagues exist
and will only get more
popular as the hardware
paves the way...

13.
AGENCY
Contextual commerce is an idea that’s core to consumer
empowerment and goes hand in hand with nonlinear
media. Instead of publishers selecting content that is
consumed passively, the consumer can interact and choose
their path. We’ve seen this through on-demand services,
video games, websites, social media and more.
As we move into 2018, nonlinear media is going to continue
to work itself into every facet of consumer entertainment
and engagement, while offering contextual commerce
capabilities. Any platform that serves media will inherently
offer some personalized option or third-party integration to
allow for relevant purchasing decisions.
The friction between discovery and purchase will decrease
as consumers are empowered to make purchasing decisions
based on contextually relevant products or services seen in
their daily media intake.
EXPANSION OF
CONTEXTUAL COMMERCE
Implications
UX and brand marketing professionals need to take
this trend into account when thinking about the overall
engagement model of their product or service. By crafting
an experience that is personalized and allows for the user to
feel in control, you are enabling them to actively consume
and make purchasing decisions on their own.
Brands that understand this will have an easier time staying
connected to their customers, while also allowing for
pervasive data collection and profiling as users make it
known what their interests and intents are. It’s much easier
for you to listen to what someone else wants than tell them
what they should want.
Amazon Spark, the
brands social network,
uses computer vision
to analyze images and
determines products that
you can then buy through
the platform.
23
GenZ
GenX
Mill
Boom
+

14.
25
ENHANCE

15.
AGENCY 27
At Google I/O earlier this year, the company
announced a cloud computing service that would
provide access to a very powerful AI chip, designed
in-house. This new processor, called TPU 2.0, will
provide the ability for any developer or company
to create products that can run, as well as train,
advanced neural networks (a computer system
modeled on the human brain and nervous system).
This type of computing power was once very
expensive, needing hundreds of GPU’s to effectively
train a neural net. What Google did is essentially
DEMOCRATIZATION
OF AI
democratized AI, and will result in a major disruption
in almost every industry. Micro AI services and APIs
will create and enhance products that will be able
to parse through mass amounts of data and offer
personalized solutions.
Every industry from insurance to vacation planning
can benefit from this technology, and it will be
interesting to see the solutions that these companies
bring to the world. In the early part of this decade,
the brightest minds in Silicon Valley were creating
apps. Today, they’re creating algorithms.
Implications
Brands need to determine how best to take advantage of AI’s capabilities. This can either be through the
parsing of massive amounts of structured and unstructured data to uncover insights that were previously
unknown or by enhancing the engagement layer of their product or service.
Advanced AI capabilities at the fingertips of every developer and company will result in many innovations
across every industry. It’s important for your brand to utilize these services to their potential, enhancing the
experience for your customers.
Advanced AI capabilities
...will result in many
innovations across
every industry
Google’s new Cloud
TPU will make it possible
for third parties to run
and train neural nets,
drastically reducing
the barrier to entry for
artificially intelligent
product and services.
GenZ
GenX
Mill
Boom
+
+
–
–

16.
AGENCY 29
In early days, Machine Learning (ML) processes were
traditionally executed on high-performance machines
and servers. For many cases, that will continue to occur.
However, there is a strong trend in the shift to on-device
machine learning for mobile devices and various
other products.
Faster data processing and increased security are
contributing factors to this trend, and technological
advancements in hardware are making it possible. Take, for
example Apple’s A11 Bionic Chip, implemented in the new
DEVICE-BASED ML
iPhone X. It allows a neural net to run and train on the device
itself, allowing the facial recognition technology to work
almost instantly, while keeping all of the data on the phone.
Google’s new Home Max is another great example of this
technology. The speaker is outfitted with machine learning
technology, designed to automatically adjust itself to create
the optimum sound for the room that it’s in. Because this
occurs on the device, these adjustments can take place in
real time, leading to an improved UX.
Implications
For marketers, this is an important trend to keep tabs on. Device-based ML is an integral step towards ubiquitous and
contextual computing. Our devices will be able to access the knowledge stored in the cloud while having a contextual
understanding of what’s going on.
Marketers will be able to tap into that technology to create highly personalized experiences that adapt to consumers’
needs in real time. As we move towards the goal of ambient computing, these experiences will be critical for brands to
work themselves into our daily schedules.
Device-based ML is an
integral step towards
ubiquitous and
contextual computing.
Apple’s A11 Bionic Chip allows neural nets to run and train on the device itself, drastically
increasing processing speeds and opening the door for widespread on-device machine learning.

17.
AGENCY
2017 was the year that the Blockchain made its way into
the mainstream. Cryptocurrencies, the fuel that powers
the transactions made on this technology, have shot up in
value since the beginning of the year. Bitcoin, starting the
year valued at below a thousand dollars is currently trading
above $10K. New Initial Coin Offerings (ICO’s) are bringing
in tens of millions of dollars to various cryptocurrency
startups daily.
The underlying idea of this movement is the ability
to transfer almost anything of value, without using a
BLOCKCHAIN IS PUT TO USE
Implications
For marketers, Blockchain technology will be increasingly important in the ad serving space.
Every time data changes hands during this process, be it through a DMP to a DSP to an SSP;
there is a loss of value. The Blockchain will ensure that there is a decentralized and secure
record of these transactions, and you will know with the utmost of transparency where your
ad was placed and who saw it.
While it is still in the very early days for this technology, Blockchain will soon boast
significant advantages for marketers when it comes to security and transparency. For those
reasons, brands that are early adopters could benefit from improved business processes
and consumer trust.
31
middleman. Doing so results in a more transparent, secure,
and profitable interaction. Banking, healthcare, retail,
communication, advertising, and many more industries are
all ripe for disruption.
2018 will be the year in which more regulation and
standards are put around these technologies, and
stakeholders will be able to operate with
increased confidence.
The Basic Attention Token (BAT) improves the
efficiency of digital advertising by using a token to
exchange value between publishers, advertisers, and
users. It all happens on the Ethereum blockchain.
Source: Basic Attention Token
Blockchain will soon boast
significant advantages for
marketers when it comes to
security and transparency

18.
AGENCY
Moving forward, computer vision technologies will play
a much greater role in how we access and consume
information. This is an underlying aspect of the camera
as a platform, which will be a catalyst to consumer
empowerment. When you think about it regarding
mapping virtual assistants to computer vision, it becomes
a technology that will greatly enhance our information
processing ability.
Google’s release of Lens is going to play a large role in
driving this trend. It will instantly give millions of people
the power to pull out their phones and receive contextual
VISUAL
DISCOVERY
information based on anything they’re pointing it at. View
a restaurant and up pops their Yelp reviews, pricing, and
reservation options. Don’t know what food you’re about to
eat? Just point your camera at it.
While browsing physical retail stores, this technology
is going to reduce the friction involved in comparison
shopping. No longer will you have to manually input search
keywords and navigate through slow loading pages. Simply
pull out your camera, point it at your product, and the
advanced AI algorithms will do the rest.
Implications
For marketers, the widespread use of this technology is going to further necessitate the need to control your brand’s
online presence. Your copy and related keywords will have to match to your physical product or service, and it needs to
be integrated into the various assistants that are mapped to the input data.
This is a major building block towards a day when proxies, such as Googles Assistant, do most of our bidding for us. It’s
very important to understand that it will no longer be about only marketing to people, but proxies as well.
The Vivino app allows
users to take a photo of
any wine label to access
pricing, ratings, reviews,
food pairing suggestions
and more.
33
GenZ
GenX
Mill
Boom
+
+
+

19.
AGENCY
Voice-based interactions have grown heavily in popularity
over the last year. It’s estimated that 35 million people will
interact with a voice-based assistant at least once a month.
However, voice alone doesn’t cut it. Users are increasingly
finding that for these interactions to reach their full potential,
a visual component is needed.
Amazon released their version of this earlier this
year in the form of the Echo Show, and more
recently a smaller version called the Spot.
It’s rumored that Facebook and Google
VOICE
+ VISUAL
Implications
As these devices make their way into consumers’ living rooms and begin to play a central role in how we access
information, brand marketers will have to think about the best way to integrate themselves.
It’s important to understand that experiences should be built with voice in mind first, while then adding complementary
visual effects to your consumers, with e-commerce ability becoming a secondary function.
The Echo Show allows
visual content to be
paired with voice-based
interactions. Look for
Facebook and Google
to release their own
form of a Voice + Visual
device in 2018.
35
will be releasing their version of a voice + visual device
at some point in 2018. Google currently allows for Home
devices to interact with Chromecast-enabled screens, which
is another way to access this functionality.
While each of these companies will understandably market
these devices with various use cases in mind, the general
concept of a visual complement to a voice-activated
assistant will stay the same. Shopping, communicating, and
consuming content will all be made easier.
GenZ
GenX
Mill
Boom
+
+
–
...experiences
should be built
with voice
in mind first

20.
AGENCY
Google’s introduction of Voice Match in their Home devices,
and Amazon’s similar functionality shortly after, will be a
major enabling factor towards a pervasive digital assistant.
The technology allows the Google Assistant and Amazon
Alexa to recognize individual voices, leading to multi-
user support functionality. What this means is that based
on contextual commands, they will be able to provide
personalized answers based on who is asking the question.
It does so by analyzing vocal constructs, pitch, and
tone to match an individual voice back to a Google or
Amazon account. By doing so, these devices can include a
PERSONALIZED
AUDIO
Implications
The ability to have multiple users on one device will proliferate the idea of personalized
daily schedules which are facilitated by this pervasive assistant. The smart speaker will
grow to be the center of a family’s smart home, with the ability to personalize settings to
individual users.
As a brand marketer, you must be asking yourself the question of how you can integrate
yourself into those schedules. Providing services and experiences that can be accessed
from these assistants will become increasingly important. Building relevant actions and skills
are going to become more and more important as the Assistant integrates itself deeper into
our daily lives.
Amazon Alexa and
Google’s Assistant can
discern individual voices
based on tone and
pitch, allowing them to
personalize individual
schedules and intents.
37
GenZ
GenX
Mill
Boom
+
+
+
+
personalized mobile phone dialer allowing users to make
calls from their number, utilizing their contact list.
What this really allows is the ability to have multiple users
tapping into a truly personalized digital assistant. If dad asks
‘how long is it going to take me to get to work this morning?’
the Assistant will analyze the traffic routes to Dad’s work,
and not his wife or kids. All of that information will be pulled
and tracked through individual Google accounts, allowing
the Assistant to move from one device to another – keeping
track of daily schedules, preferences, and more.
The smart speaker will
grow to be the center
of a family’s smart home

21.
39
ENVIRONMENT

22.
AGENCY 41
The field of robotics has made immense strides in the
past few years. Robots are increasingly making their
way into our daily lives, whether we like it or not.
From healthcare assistants to autonomous vehicles,
we will all soon be interacting with them in one way
or another.
Drones will soon be used to deliver aid and packages.
Businesses will invest more and more into automated
processes, resulting in the reallocation of jobs to
PERVASIVE
ROBOTICS
creative and research-based roles. Robots that are
trained to recognize emotions and vitals will be used in
healthcare to provide greater, more scalable care.
It will be important to ensure that these robots can
interact in ways that are natural to us. For example,
an autonomous vehicle slows down as it approaches
a stop sign. It could stop on a dime, but we’ve
programmed it to slow down so that pedestrians will
feel comfortable crossing the road.
Implications
Marketers need to determine how they are going to use robotics to enhance their side of the business. Today,
automation is a major investment area for robotics but moving into 2018, customer experience will become a key
consideration and revenue driver for the investment in this technology.
Brands that can successfully deploy strategies that offer utility through robotics will stand to see a first mover
advantage, as well as further integrate themselves into consumers’ lives and daily schedules.
Jibo is a personalized
robot designed to be an
organizer, educator, and
healthcare assistant for
family members. Ideally,
it will play a central role
in family and personal
functions.
Robots are increasingly
making their way into
our daily lives, whether
we like it or not.

23.
AGENCY 43
Biometric security has led the way with regards
to pushing a new paradigm of human-computer
interaction. Smartphones, tablets, PCs, trackpads,
smart speakers, automobiles, door locks, home
security systems and more have all benefited and will
continue to benefit from increased biometrics.
Facial recognition on the new iPhone X will take us
past the age of Touch ID and into a more secure
interaction. Just as Apple did previously, expect third-
party apps to eventually be able to utilize Face ID and
BIOMETRIC
SECURITY
its enhanced security. As previously touched upon,
Voice Match feature is bringing biometrics to voice
assistants, allowing personal accounts to be accessed
simply by speaking to a device.
Moving forward, almost all of our connected devices
will employ some form of biometric security. This will
lead to a more secure, frictionless and personalized
user experience for all, as we make technology work
for us, and not the other way around.
Implications
Brands with consumer-facing products and services should look to determine what form of biometric security
they can tap into or implement. Technological advances in sensors have made them affordably cheap and will
be able to enhance a multitude of products.
In a world of increasing data hacks and schemes, consumers will increasingly come to expect high performing
forms of security. Consumer-facing products should view encryption and immutable blockchain data transfers
as complementary features to various forms of biometric security.
... consumers will
increasingly come to
expect high performing
forms of security.
Apple’s new Face ID will bring enhanced biometric security to the iPhone X.
Eventually, our biometrics will play a role in all forms of connected security.

24.
AGENCY
At F8 this year, Facebook unveiled the idea of augmented
reality art installations. Artists would be able to create works
of art that would then be overlaid onto the physical world,
and only viewable through Facebook’s camera platform.
While that functionality hasn’t yet been released, Snapchat
seemed to be taking notes and soon beat them to the
punch with their own Art platform.
Placed in major tourist spots around the world, Snap used
iconic works of art from Jeff Koons, that were only visible
AUGMENTED ART
Implications
The Pokemon GO phenomena last year showed us that AR could have a profound effect
on how we as consumers act in the physical world. When a rare Pokemon popped up,
hundreds if not thousands of people flocked to catch it. Once released, physical traffic to
these digital art installations almost instantly increased, as people were curious about what
existed behind the veil of reality.
As an event marketer or brand builder for physical retail, getting people to go somewhere
is half the battle. As these platforms become more mature, these art installations will be able
to be placed in areas that are designed to drive traffic for marketers.
45
through the lens of Snapchat. Moving into 2018, more and
more artists will be featured through this platform, and
augmented art will become prevalent around the world.
While augmented art may not seem like a huge deal, the
idea that all users on this platform can see the same digital
installations, is one of the core building blocks of a shared
synthetic reality. What starts with art will make its way into
many other facets of our lives, and we’ll take a deeper dive
into that in the next trend.
Snapchat’s augmented art platform initially features
artwork from Jeff Koons placed at various popular
tourist locations around the world. The art reflects its
surroundings based on the physical location of
the user.
GenZ GenXMill Boom
+ + – –

25.
AGENCY
What if a TV was just a dollar app that you purchased and
viewed through some form of AR glasses?” exclaimed Mark
Zuckerberg earlier this year. While that seems like a fun idea,
it brings to light a trend that has no plans of slowing down.
The company that can build out the best AR tools and most
robust platform will reap the benefits of a large user base
that essentially lives and purchases in their synthetic reality.
Augmented art installations are just the start. As the
friction between accessing augmented effects is reduced,
we’ll begin to see more and more use cases arise that
enhance the physical world while not taking us away from
MIXING
REALITY
it. We’ll begin to rely on these digital products, coming
back day after day to access them, offering monetization
opportunities that aren’t even fathomable in today’s world.
Socially acceptable AR glasses or contacts are the way we’ll
access this reality. In 2018, we should see these devices start
to come to life. Microsoft’s HoloLens will continue to offer
new and exciting use cases while Snapchat is rumored to
be releasing Spectacles 2.0 that should feature some access
to these effects. Additionally, there’s always the possibility
we get access to Magic Leap, the largely speculated first
consumer product.
Implications
As a marketer, how can your brand benefit from bridging the physical and digital world? It’s important to start thinking
about the experiences that you can create, that correspond to your brand’s values while utilizing the technology
available. It could mean hidden digital coupons to geo-located personalized offers.
When the day comes that these devices replace our mobile phones, we’ll see a massive shift in how we consume content
and information. Planning for that day now will ensure that your brand is not left behind when that day arrives.
Magic Leap hopes to bring Mixed Reality
to the mainstream, allowing users to
interact with digital content through an
easy to use input. 2018 may see the first
product from the multi-billion dollar
valued company.
GenZ
GenX
Mill
Boom
+
+
–

26.
AGENCY 49
First was the shift from ‘Everything is Connected’ to
‘Everything is Intelligent.’ Next, we’ll see a concurrent
movement to ‘Connected Intelligence.’ This follows the
idea of multi-modal computing, in which it’s not just
about interactions with desktop and mobile devices,
but voice, touch, vision and other modes of
natural interaction.
The rise in edge computing will result in many devices
being able to process data on the device themselves,
instead of passing that back and forth from the
cloud. In turn, these devices will all have some sort
CONNECTED
INTELLIGENCE
of intelligence. As we move forward, this connected
intelligence is what’s going to lead us into a world of
ambient computing.
In 2018, we’ll see the beginning of this trend through
automated routines. Intelligent systems from Amazon
to Google and more will begin working together to
achieve a user’s end goal. Walk into your house, and
your thermostat will adjust the temperature to your
desire while your TV turns on the game and the lights
dim to your liking.
Implications
As our world becomes more intelligently connected, the attractiveness of having a single device will
become mute. Eventually, our smartphones will make way for an interoperable system of touch-points that
contextually understand who we are and what we need.
While there are many industrial implications for this trend in the near future, marketers need to understand
that we are moving towards a day in which marketing to connected systems will prove more beneficial than
marketing towards individuals and segments.
...connected intelligence
is what’s going to
lead us into a world of
ambient computing.
GenZ
GenX
Mill
Boom
+
+
+
+
Edge computing was a strong focus at this
year’s Microsoft Build, bringing computing
closer to where data is generated. This
allows central cloud services to be focused
on deployment, management, and storage.
AGENCY

27.
AGENCY
If you really think about it, writing and speaking, in their
simplest form, are ways to compress and communicate our
thoughts. What if we surpassed those forms of compression,
and went straight to the source?
Facebook, Elon Musk’s Neuralink, and many others are
attempting to accomplish this. While the technology is still
5-10 years away from being commercially accessible, it’s
an important trend to keep an eye on. The ability to think
BRAIN-COMPUTER INTERFACE
Implications
While there are not necessarily any direct marketing implications for 2018, this is an
important trend to keep an eye on. The impact this technology will have on the general
public will be of greater significance than anything we’ve seen.
Brain augmentation will allow us to access information, control our devices, communicate
thoughts, and grow with artificial intelligence. To some, this may seem like a completely sci-fi
idea, in reality, it’s a very real trend that’s coming sooner than you may believe.
51
and simultaneously communicate at the same time, either
through thoughts or text.
Ideally, this augmentation would be in the form of a non-
implanted device, as the idea of implants won’t necessarily
sit well with the general public. Scanning your brain
hundreds of times a second and only relaying the thoughts
you want to share, so as to still be able to think freely.
At F8, Facebook revealed work on a brain
computer interface that allowed a paralyzed
patient to type eight words per minute
using only her thoughts. The ultimate
goal is to get to upwards of 100
per minute.
GenZ GenXMill Boom
+ + + +
Brain augmentation
will allow us to
access information,
control our devices,
communicate thoughts,
and grow with artificial
intelligence.

28.
53
BEYOND 2018

29.
AGENCY 55
Gen Z is the first mobile-native generation; they are
not only adept at consuming content, but they are also
avid creators. Our research shows that 69% view the
camera as a platform and 66% have their own YouTube
Channel, with 83% using effect-based filters.
The next big battleground for consumer attention,
especially Gen Z (1996-2010), will be around enabling
GEN Z =
ENHANCE VS. CREATE
camera experiences through new forms of data-infused
augmented reality filters. Experiences built to connect
with Gen Z will need to focus on enabling the creation
of effect-based experiences vs. pushing digitally-
centric content.
Implications
Snap, Facebook, and Apple understand that in order to truly create scale the key is to empower consumers,
developers and other 3rd parties to create experiences on their behalf. Consumer empowerment is powerful and
will accelerate adoption and ultimately influence consumer behavior.
The democratization of augmented reality powered by advancing artificial intelligence has the potential to
redefine content marketing, making it less about content and more about enabling experiences through
compelling and contextually relevant effects.
Apple’s
launch of iOS 11
combined with hardware
advances tied to the
iPhone X bring advanced
augmented reality
capabilities. Apple’s
release makes it the
largest AR platform in
the world. Enabling
experiences vs. creating
will be key to connect
with Generation Z.
Consumer empowerment
is powerful and will
accelerate adoption
and ultimately influence
consumer behavior.

30.
AGENCY 57
One of our central hypotheses 2018 will be the rise of
the proxy web. In the very near future, consumers will
have intelligent systems serving the role of their proxy
for interactions with other intelligent systems
and brands.
Our research shows that Gen X & Boomers are
the most open to systems as proxy’s to assist with
reducing the complexity of emerging technology and
to manage aspects of their lives. Marketers will have
SYSTEM-BASED
MARKETING
to consider the consumer decision journey as well as
system based journey’s to connect, create experiences
and ultimately be discovered.
Over time our interactions may shift from person-to-
person to bot-to-bot. This will shift the focus from
pure consumer-centric marketing to marketing to
algorithms and systems as proxies or agents
for consumers.
Implications
Building experiences for the proxy web will require a new approach to mapping journeys. It will be important to
understand that system-based marketing will require a different strategy to ensure that brand experiences are
optimized for the intelligent ecosystems they will reside within.
An example of this is how a brand experience can vary within Google Assistant via actions. Experiences can be
voice, voice + visual and the discoverability or connection of an experience resides within an intelligent system.
Instead of the phone being
a singular access point to
data and information, it
becomes another node in a
larger ambient ecosystem.Marketers need to
consider both consumer
decision journeys as well
as system based journeys
as consumers become
more dependent on
proxy’s to manage
various aspects of
their lives.

31.
AGENCY
Mobile user experience is ripe for disruption as we have
essentially used the same native app-centric interface
since 2008.
With the rapid adoption of AI and the proxy web, we will
soon begin to see a shift towards bundling of services vs.
stand along native applications. We are already beginning
to see the consolidation of services from Google, Apple,
MOBILE DISRUPTION
and Amazon with the roll out of scenes and scene design.
This is essentially the bundling of various services which
traditionally may have been a native app experience into
various services that are connected based on the context or
need of the moment. This will mean that most of the utility
services that we engage and interact with today will become
middle-tier services that are called by an intelligent entity.
Implications
As we think about the evolution of multi-modal interfaces, touch, vision, voice, etc., the role of the mobile device is going
to significantly evolve as our environment becomes more intelligent.
Instead of the phone being a singular access point to data and information, it becomes another node in a larger
ambient ecosystem.
Marketers dependent on native
applications to connect with consumers
will need to shift their strategy to
consider the role of their application
services within a bundle of services that
map to consumer need states that are
delivered through intelligent systems.

32.
AGENCY 61
The best technology fades into the
background, only to be summoned
when you need it. Every piece of
technology we’ve seen leading into 2018
points to a future where your surroundings
and senses become touch-points and personal
computing is omni-present in the background,
helping inform decisions and predicting behaviors.
AMBIENT
COMPUTING
5G Connectivity, pervasive
sensors, the rise of multi-modal
interfaces will all contribute
to technology that seamlessly
enhances our lives.
Consumers will delegate the remedial, less important
decisions and tasks to their personal assistants and
focus on more important decisions or activities like
creating content or experiencing new environments
or places via mixed reality.
Implications
The connection of internal and external systems via sensors and 5G connectivity will lead to a foundational
shift that will allow technology to seamlessly interact and enhance our lives.
Instead of us initiating experiences via a mobile device, our environment becomes more connected, combined
with intelligent systems bundling services, and seamless interfaces to tap into experiences via voice, vision
and touch will lay the groundwork for the seamless connection of physical and digital.
For brand marketers, this means we need to identify the opportunities where we can leverage data and
technology to influence personal assistants, and identify opportunities where we can directly empower
consumers to create, enhance their present day activities, or invoke emotions through immersive experiences.
...empower consumers
to create, enhance their
present day activities, or
invoke emotions through
immersive experiences.

33.
AGENCY
We are rapidly moving towards a frictionless connection
between physical and digital that will redefine our vision of
reality. The evolution towards multi-modal interfaces (voice,
vision, touch) is a key driver for the seamless connection
between physical and digital. Marketers and developers
alike have to adapt to new form factors and considerations
for how consumers will engage when their physical worlds
are augmented by personalized digital experiences.
SYNTHETIC REALITY
Implications
With an ever-growing location graph fueled by users, the rise of intelligent systems that can parse massive amounts of data
while taking on the processing burden of predictive APIs, the alignment of computer vision centralized with smart assistants
will synthesize our preferences into new and ever-evolving realities.
For marketers to remain relevant when physical reality mixes with synthetic reality is to understand the foundational
elements of connection between the worlds. Experiences will need to be grounded in location data, viable across multiple
modes of interface (voice, vision, touch) and crafted to enhance digital experiences as well as understanding that as our
world becomes more synthetic, tangible physical experiences will be key to ground experiences.
63
The convergence of location data, computer vision, artificial
intelligence-driven predictive systems and augmented
reality experiences will redefine how consumers will interact
with the physical world and give rise to new
virtual economies.
The convergence of location data,
virtual assistants, computer vision and
augmented reality will redefine how we
Interact with the world around us.
...as our world
becomes more
synthetic tangible
physical experiences
will be key to ground
experiences.

34.
epsilon.com ©2017 Epsilon Data Management, LLC. Private & Confidential 65
QUESTIONS
OR INQUIRIES
AGENCY
Steve Harries
VP, Innovation & User Experience
Ian Beacraft
VP, Digital Strategy
Tom Edwards
Chief Digital Officer, Agency
Jeremy Olken
Innovation Strategist
Please view our interactive video
18 trends for 2018, which identifies the
core behaviors and technologies driving
the evolution of experience and provides
a framework to help brands navigate this
dynamic fast-paced environment at:
http://embed.wirewax.com/8075706

35.
AGENCY