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Trends & Insights

CES 2018

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Trends & Insights

  1. 1. TRENDS & INSIGHTS CES 2018
  2. 2. INSIDE THE REPORT This report highlights key trends and innovations coming out of CES and their implications for marketers in 2018 and beyond. Read on for the full report or click on the links to go directly to a topic. 1 AI’s Essential Role in Digital Transformation & Growth MICHAEL MIRAFLOR, BLUE 449 What Innovation in Auto Means for Brands TOM GOODWIN, ZENITH Behind the Voice Hype KATE SIRKIN, PUBLICIS PEOPLECLOUD 2018 CES Trend Roundup ANDREW KLEIN, SPARK FOUNDRY
  3. 3. 2 AI’s Essential Role in Digital Transformation & Growth MICHAEL MIRAFLOR, SVP, GLOBAL FUTURES & INNOVATION, BLUE 449 Artificial Intelligence (AI) is a broad and expansive idea that it is often overwhelming in its terminology alone. This year we’ll see the evolution of the conversation from hype to practicality, as smart marketers and brands explore ways to leverage AI to fuel business results. GENERAL PURPOSE MINDSET Investing in AI can be an intimidating prospect, especially if current business tools and processes result in profitable outcomes. Think about the AI space as the next general-purpose technology that will change the way the world and businesses operate, like the steam engine, electricity and the internet did. Each of these innovations spurred business and society to start economic revolutions, and AI should be treated in the same manner. IT STARTS AND ENDS WITH DATA AI has a layer of capabilities that can maximize its effectiveness when combined with a solid data foundation. This will increase in importance as technologies such as 5G, voice UX/UI, and self-driving vehicle infrastructure continues to mature. This revolution in 1-to-1 marketing will give brands who have mastered data an unprecedented competitive advantage in the future. THINK PRAGMATIC, NOT PANACEA While machine learning and neural networks are increasing in sophistication and are solving large and complex business problems, more pragmatic effects of an investment in AI are felt in the automation of time-consuming, administrative tasks in the day-to-day workplace. This mirrors the consumer experience, where quick customer service inquiries are increasingly addressed by AI-powered chatbots, freeing time to do more productive tasks. USING VOICE AS A PROXY TO FRAME STRATEGY Today, we look to the consumer technology landscape to see how consumers are already using AI in their daily lives. The uptick in adoption and subsequent voice-led consumer behavior was largely a surprise, and is a great example of how AI can experience dramatic growth. It’s easy to marvel at this growth, as the beginning of a new technological revolution, but it is also an opportunity for marketers to reflect and ask: do I want to be just a witness, or a participant in this AI revolution?
  4. 4. What Innovation in Auto Means for Brands TOM GOODWIN EVP, HEAD OF INNOVATION, ZENITH USA It’s highly likely the automotive sector is about to undergo its most significant shift in history as we see changes coming from all directions in a remarkably short period. 3 E-MOBILITY The plunging cost of batteries and rapid improvements in energy density means that the way cars are propelled is changing rapidly. Electric cars usher in a new way of thinking about vehicles. The lesson here for brands is clear: As a category leader it’s easy to gain comfort, but when a fundamental shift happens, former strengths can fast become weaknesses. SELF-DRIVING Cars have offered augmented driving for years through lane departure warnings, adaptive cruise control, and even self-parking. Self-driving cars change the very fundamentals of cars and life. Brands need to look to this in many ways. What does advertising become in these new environments? Many opportunities emerge. BRAND IMPACT More than anything else we can see a shift from ownership to access. If cars are self-driving, they soon become more like an annual contract to a mobile phone plan than to a vehicle to own. Self- driving cars create opportunities to focus more on the consumer’s needs at different moments in their life and in time. When we pay to get from A to B, it becomes more about the quality of that service, and the overall value brands deliver to the consumer.
  5. 5. 4 A new study by Publicis Media takes a more human approach to understanding the opportunities that voice presents for brands and marketers. While still an emerging sector for marketers, the study identified some key opportunities for brand engagement that are unique to voice. NEW ENTRANT PACKS A MEMORY PUNCH Two years in, smart speakers and voice interaction already boost unaided brand recall by 2X when compared to TV, putting them on par with native mobile. Marketers should dial-up context to stimulate in-the-moment category connections, set utility and enjoyment goals for content creation and build discovery strategies to raise awareness. ROBOTS AREN’T GOOD STORYTELLERS, YET Despite being one of the hotly-anticipated functionalities, storytelling in voice is very hard to achieve – primarily due to the lack of authentic emotional range, which results in a drop in attention and interest as users get caught up in the voice mechanics. There is growth opportunity for marketers who invest in emotional range to increase human-like interaction. ALL PART OF THE FAMILY There is a shared sense of ownership when smart speakers are used in the home. However, the presence of AI/robots in the home is also presenting new challenges for parents to navigate from manners to appropriate content. Parents should be a priority audience for voice with content spanning the range of parenting experiences. Brands should also capitalize on the reduced reliance on screens and facilitate shared moments via the smart speaker. DRIVE-TIME UNLOCKED Voice is unlocking a new freedom to multitask in the car, turning what has previously been downtime into productive uptime. Poor voice recognition while driving carries a high irritation factor as there is less room for glitches in an environment where accurate information delivery is crucial. Reducing complication should be the first priority when developing voice for in-car usage. REINVENTING THE ROAD TRIP We challenged users to hack their Alexa Dots into their cars, prompting drivers to reinvent their entertainment experiences on the road – particularly for longer trips and commutes – and ultimately make it a more sociable experience. It was a welcome change from the individual use of mobile phones/tablets in the car. This provides opportunity for brands to partner with car-makers, tech innovations and entertainment brands. Behind the Voice Hype KATE SIRKIN, EVP, DATA & PARTNERSHIP LEAD, PUBLICIS PEOPLECLOUD
  6. 6. 5 2018 CES Trend Roundup ANDREW KLEIN, DIRECTOR, CONTENT INNOVATION, SPARK FOUNDRY VR AIMS FOR MASS ADOPTION EMERGENCE OF AR CONSUMERS CONTROL HEALTH INSIGHTS VOICE CONTROL RULES ALL CONNECTED & SMARTER COMMUNITIES BLOCKCHAIN & BRANDED CRYPTO Wireless and all-in-one VR headsets will push the next wave of VR adoption. With easier access, simpler designs and greater mobility, VR use will increase and consumers will crave content experiences. Implications for brands: With the emergence of stand-alone headsets, brands will soon have more scale to reach consumers through VR. With the launch of Apple’s ARKit and Google’s ARCore, most new smartphones have full AR capabilities offering branded digital content far beyond today’s filters, lenses and gimmicky masks. Implications for brands: Leverage digital assets, and more importantly look to digitize their physical products to implement within the pending boom of AR platforms and experiences. Wearables provide unique opportunities for brands to understand health insights and provide additional care, products or even lifestyle improvement tips. Implications for brands: Utilize unique data points to more precisely target consumers with the right products, care and/or support. CES showcased thousands of smart devices integrated with smart assistant functionality, allowing consumers to seamlessly control and operate with a few voice commands. Implications for brands: Strategize and develop smart integrations with these devices to meaningfully connect products, offerings and utilities to these systems. New smart security systems offer aggregated data to share with communities, law enforcement and insurance companies for real-time insights and proactive alerts. Implications for brands: Use this data to better understand audiences and collective behaviors in specific communities, as well as inform dynamic content, messaging and add a unique data set on top of programmatic opportunities. Kodak announced KodakCoin, to help photographers utilize blockchain to control and track the usage of intellectual property. More importantly, it provides payment and royalties in the form of KodakCoin, if their images or content are used. Implications for brands: Media-focused blockchain services offer secure and transparent methods to distribute content and manage user data while eliminating fraud.