This year's CES broke all records: more attendees, more innovations that reach into new areas of consumers' daily lives, and yes, more hype... just ask the estimated 2.3 billion people worldwide who were touched by the stories of CES. But what really changed as a result of CES? What will still matter for brands in the months and years ahead? Read our latest white paper for the key trends that made CES 2014 stand apart and the roadmap you'll need to get ahead of CES 2015: • More innovation, fewer launches • "New giants" get smaller • The rise of new sectors • Connecting influential consumers
Text of CES 2014 Changed Nothing (& Everything)
HOW CES 2014 CHANGED NOTHING (& EVERYTHING)
2 TABLE OF CONTENTS OVERVIEW OF CES 2014 ........................................3 HOW NOTHING CHANGED ....................................4 HOW EVERYTHING CHANGED ................................5 #1: More Innovation, Fewer Launches #2: The New Giants Are Little #3: Rise of New Sectors #4: Connect with Inuential Consumers TRENDS FOR BRANDS & MARKETERS ..................15 #1: Personal Data Revolution #2: Innovation Through Partnership #3: Technology & Analog Tension #4: Modernizing Brand Presences At CES JACK MORTON WORLDWIDE ...............................22
3 Welcome to 2014 and a signicantly refreshed CES. The show felt different this year than from years past it was a more focused gathering of technology (not just consumer electronics) leaders from around the world with renewed purpose and vision. The shows continued growth and relevance is no accident. Last year, the events organizers the Consumer Electronics Association (CEA) made a strong pivot, eliminating the title of Consumer Electronics Show. Instead, the CEA now talks about CES as the worlds gathering place for all who thrive on the business of consumer technologies and the proving ground for innovators and breakthrough technologies. That pivot has changed a lot about the show, including the people that attend, the way its covered by the media and even the way brands show up there. Its also contributed to the shows success. The 2014 CES was the largest in shows history, with a record two million square feet of exhibit space housing more than 3,200 exhibitors. More than 150,000 industry professionals were attendance, including more than 35,000 from outside the United States. Most impressively, the CEAs President, Gary Shapiro, claims that this year CES touched one-third of the worlds population. The 2015 International CES will be held January 6-9, 2015. Is your brand ready to make the most of it?
4 HOW NOTHING CHANGED Over the past several years, weve predicted a major evolution in what the International CES stands for and who would attend it. This year, we saw that evolution play out. So how did CES 2014 change nothing and everything all at once? Well, it depends on your perspective. Ben Grossman Senior Strategist email@example.com +1.617.752.1171 A decade ago, CES was the platform from which the biggest consumer electronics were launched. But its been years since a truly mainstream product actually premiered at CES. Today, manufacturers are opting for proprietary press events away from the noise and clutter of CES to launch products. So from the next big thing announcement perspective, CES changed nothing. But for marketers and brands, CES 2014 made it clear that everything has changed. Heres our take on what has changed both in terms of the event itself and also in the way consumers will move through the world well beyond the annual gathering in Las Vegas.
5 HOW EVERYTHING CHANGED From its renewed purpose, to a signicant shift in which brands (not necessarily technology) led the storytelling, CES clearly evolved in 2014. Here are some of the shows biggest changes.
#1: MORE INNOVATION, FEWER LAUNCHES The timing of CES (just after the all important holiday season) has been problematic for product launches for years. But today, CES as a stage for product launches has more than just seasonal timing working against it. Pace of Innovation: The pace of technological innovation within hardware and software not just products has increased signicantly. Cultural Relevance of Technology: Consumer interest in, and thus media coverage of, technology has grown leaps and bounds in recent years. As such, technology innovators can attract plenty of media attention with proprietary events (a la Apple, Facebook and Google) during less competitive news cycles. Democratization of Publishing: Some of the best innovations, often the products of small start-ups, bubble up through social media and online news sources well in advance of a once-annual show. (Kickstarter and Indiegogo only fuel this re.) The net-net? Some onlookers still end up disappointed that the next big thing did not seem to surface out of CES (giving the impression that nothing changed). But the fact is that more innovations than ever are being showcased at CES from a more diverse set of creators. Ironically, attendees still ock to xate on a wall of LG 3D TVs, despite similar technology being on display for several years. And while these technologies are not necessarily completely unknown prior to the rst full week in January, the show does help bring them into focus. 6
#2: THE NEW GIANTS ARE LITTLE It has been years since one of the major consumer electronics companies has unveiled a truly revolutionary innovation at CES. This year, there was nonetheless plenty to talk about, thanks to smaller, more nimble innovators that now have a voice at the show startups (including crowd-funded products and mobile applications). In an effort to provide a platform for these start-ups to speak from, CES introduced Eureka Park, a show oor for companies looking to gain footing in the consumer electronics industry. But that was just the beginning for start-ups at CES. Indiegogo Zone: The new Indiegogo Zone, named after the popular crowd-funding platform, featured hardware campaigners showcasing their products. Canary is a connected home security device featured at CES tracks motion, temperature, air quality, vibration, sound and activity. It is the most successful Indiegogo project to-date. Start-Up SuperSession: CEA honored some of the most successful start-ups by hosting a session called, CES 2015: How Today's Emerging Technologies will Affect Tomorrow's Devices. It featured executives from Leap Motion, Oculus VR, Pebble Technology and 3D Systems Inc. CEA MoDev Hackathon: In the second annual MoDev Hackathon, nearly 100 developers competed for up to $100,000 in cash and prizes. Apps were awarded for integrating with partners, including Microsoft, Amazon, Samsung, Sony and Modev. 7
8 #2: THE NEW GIANTS ARE LITTLE CONTINUED Prime Time for Transportation Apps: Over 150,000 technology enthusiasts and a massive shortage of transportation created the perfect opportunity for Bandwagon, a mobile app that facilitates taxi sharing. (Uber, the popular on-demand driver app, cannot operate in Las Vegas due to Nevada law, but didnt miss the chance to make its mark on CES attendees). Mobile App Showdown: Now in its fourth year, the 2014 Mobile Apps Showdown brought signicant attention to a eld of strong contenders. The winners included Password Box, a password management app, and Ballerz, a crowd-coordinating recreational sports app. ^ When opened in Las Vegas during CES, Uber featured an inapp appeal to its users to rally their support to help it change Nevada laws. The Wall of Apps allowed attendees to familiarize themselves with new mobile app releases, like Babii a social network for babies. Apps were featured at The Mobile App Showdown. > Bandwagon, a mobile app that helps coordinate ridesharing, popped-up next to cab lines to help articulate its value proposition. Attendees had plenty of time to read its literature.
#3: RISE OF NEW SECTORS While TVs, handheld devices and computers still dominated some conversations at CES, a new crop of brands and exhibitors captured the attention and imagination of attendees and analysts alike. Some of CESs most explosive growth this year was in the health, 3D printing and auto sectors. One highlight was Withings Aura, an under-the-mattress sleep monitor that records sleep cycles (quality of sleep, noise pollution, room temperature, and light level) and pairs with a responsive bedside alarm clock. Analysts were impressed my the move from app-based sleep monitoring to a more seamless solution. Health: Health and personal sensor-based devices have shown on the CES oor for years. But this year, the health sector hit critical mass, making the move from the North Hall to the South Hall and bringing much more commercial polish to exhibitors booths and product offerings. Meanwhile, iHealths booth featured an expansive range of products that show the potential in unifying disparate health experiences into a streamlined, cohesive user experience. Its devices are beginning to feel more like matching luggage and fulll a number of different consumer needs. 9
10 #3: RISE OF NEW SECTORS CONTINUED 3D Printing: 3D printing has certainly received its fair share (or more) of press in the past few years, and CEA led the parade this year by giving the industry its own TechZone. It was so popular with exhibitors that it sold out three times leading up to the show, leading to three consecutive expansions of the space. Breakthrough sub$1,000 printers were on display, prompting many consumers to begin considering their purchase. Even Martha Stewart toured the 3D printing section of the oor, presumably lured by 3D Systems premiere of the ChefJet food-safe printers for chocolate and colored sugar creations. Makerbot also introduced a generation of entry-level point-and-shoot style printers made to get users going right out of the box. 3D Systems showed off ChefJet the rst food-safe 3D printer that prints sugar and chocolate creations. 3D-printed geometric sugar cubes by 3D Systems ChefJet are a crowd pleaser for upscale events. The system can also print in full color with sugar.
11 #3: RISE OF NEW SECTORS CONTINUED Auto: Automakers presence has consistently grown at CES over the past three years. And though the auto industry has always been part of the show, prior to 2011, most of their involvement was in the aftermarket accessories business. This year, the major automakers focused on the innovations and technology housed inside their vehicles. (Convenient