T R E N D S & T A K E A W A Y S

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BY: MICHAEL E. KASSAN, CHAIRMAN AND CEO, MEDIALINK

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This year at CES, I was struck by how much of the media and advertising world finds itself at a crossroads. From the future of TV to data and privacy to brands with purpose at their core, here are a few of the macrotrends I observed in full force this year…

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One of the dominant themes in the C Space was the future of video and the rise of ad-supported streaming. You simply can’t talk about our industries in 2020 without touching on the “Streaming Wars,” as the likes of WarnerMedia, Apple, Disney and NBCUniversal unveiled innovation after innovation to win the content game—and ultimately, advertisers. MediaLink released a viewpoint piece, authored by MediaLink’s Managing Director, Chris Vollmer, that examines this by providing a roadmap for discovery-driven advertising in the space.

As competition escalates, it’s clear that the amount of sheer time available to reach people through video is smaller and in higher demand. Yet, somehow the floor at the Las Vegas Convention Center held dazzling possibilities for new media channels. Between Sony’s self-driving car, which featured a media-centric dashboard, to Panasonic’s in-home health screens, the abundance of opportunity for storytellers to deliver their messages was inspiring.

That’s not to mention Quibi, the new mobile video platform set to launch this year by Jeffrey Katzenberg and Meg Whitman. Quibipromises short-form premium video series, creating even more inventory for media time. Whitman herself waxed optimistic, suggesting that we’re “not shrinking TV onto phones...we are creating something new and powerful.”

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In a bigger way than ever before, tech and media companies big and small put a huge emphasis on user privacy at CES following years of mounting scrutiny from both regulators and consumers (hello, GDPR and the recently enacted California Consumer Privacy Act).

Yet the question remains, how much will consumers welcome brands into these new, sometimes very personal spaces? How valuable is the data these machines will collect—and how can brands use it in a respectful manner?

Indeed, it's hard not to think about media and advertising today and not weigh the privacy crossroad at hand. Consumers are newly engaged on this subject, as are lawmakers—CCPA kicked in just as CES was kicking off.

Already, we are seeing some tech companies demonstrate an intention to pull back in this realm. At CES, Google announced that people can now verbally ask the company’s voice assistant how much personal audio data the company is storing.

Meanwhile, Apple focused its presence specifically on talking about its “privacy by design” features. Protecting consumer data isn’t just becoming imperative for tech companies —it’s quickly becoming a marketing differentiator.

One of many conversations on the topic came together on the WPP stage, where industry leaders from the holding company, Unilever, Twitter, White Ops and The New York Times shared a robust discussion on the privacy debate and how technology can be used to make society better.

Source: @WPPSource: WPP

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During my keynote discussion with Salesforce Chairman and co-CEO Marc Benioff and Unilever CEO Alan Jope on the positive impact that companies can drive, I was fortunate to talk to them about privacy and the modern consumer’s new attitudes regarding brands.

“Trust is our highest value,” Benioff said, predicting that trust will become so crucial in marketing that consumers will increasingly look to know everything they can about a company’s products and data practices before making decisions. He forecasted that it won’t be enough to preach values, as brands will have to provide full details on their sourcing, supply chains, and more.

Jope concurred, stating that “if there is one reason for the success of Unilever, it is the enduring trust with stakeholders.”

In 2020 and beyond, marketers will need to make sure they can communicate such values—and do so using a series of new consumer touchpoints. A crossroads indeed.

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BY HEATHER DUMFORD, SENIOR VICE PRESIDENT, MEDIALINK

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For years, when discussing technology, inevitably the conversation included a strong undertone of fear that technology would kill creativity—just do a Google search on this topic, and it delivers thousands of legitimate articles. However, at CES this year the tone was quite the opposite. Instead, there was an energy and focus around how creativity can be enhanced by technology. Sony even inserted the word creative into their company descriptor during a flurry of other announcements during the week, stating that “Sony will continue to evolve as a creative entertainment company with a solid foundation of technology.” Agreement that creativity and entertainment go hand-in-hand seems like a small revelation—but what does it really mean?

Based on the various technological unveilings and conversations with key industry leaders, the role of technology in creativity this year is clear—it will enable more immersive storytelling. Claudine Cazian, Director of Instagram Partnerships, illustrated this during a panel at C Space, where she said, “Technology should facilitate deeper storytelling.” So did Marc Prichard, Chief Brand Officer at P&G, when he mentioned technology will help the company replace ads with experiences and entertaining content.

As for some of the actual technology that launched at CES to enhance creative storytelling, a few of the most interesting examples were…

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• For filmmakers, Sony’s imaging department has enabled volumetric video capture for total coverage of 3D space, along with eye-sensing light field displays, so that artists can pick the exact angles they want the viewers to see.

• According to President & CEO Kenichiro Yoshida, Sony’s purpose is to “fill the world with emotion, through the power of creativity and technology.”

• This technology provides a more immersive storytelling experience for both the story creator, by enabling more precise decisions to be made during production, and for those experiencing the content as it can be also used in its raw form to allow the viewer to truly see content from every angle—making one feel as though they are in the story itself. This all provides an opportunity for content to transcend being a disruptive advertisement and become a more interesting experience with which consumers will want to engage.

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• With heavy hitters Jeffry Katzenberg and Meg Whitman, Quibiwill feature high quality content in a new kind of format called “Turnstyle,” which will enable users to shift between portrait and landscape modes to get a different perspective.

• According to Whitman, Quibi offers “creators a new way to tell stories."

• If this platform really takes off, it has potential to increase consumer expectations for how they can interact with stories from both an unbranded and branded content perspective. Therefore, marketers need to think critically about how to add narratives and experiences to the content they are creating for consumers, whether that be via breaking through the third wall or adding shots and characters, depending on the screen position.

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• As smart home speakers have become the consumer’s voice of convenience, voice is finding its way into the car. At CES, Lamborghini announced its partnership with Amazon to integrate Alexa voice technology into their vehicles. The integration of this connected device goes beyond content optimization; it enables brands to personalize messaging and deepen relationships with consumers.

• Unlikely entrants Sony and LG unveiled self-driving concept cars as well. These vehicles did an impressive job illustrating how the technologies each offers can integrate into the car experience, such as automatic face recognition and screens featuring personalized content and speakers that can create 3D audio to complement the entertainment system. All of these provide a unique opportunity for brands to build custom content and connect with the driver.

8Source: The Verge

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While these are all one-company launches, the other next level technology that is sure to enable deeper and immersive storytelling is 5G. Everyone has been excited about it for years, but this year there was finally consensus that it will underpin every other technology in the near future. Unanimously during a conversation on storytelling in the C Space, panelists across brands including Samsung, Lyft, Coca-Cola and Hilton shared the sentiment that this is the year that 5G will change everything, not only for marketers but for all consumers. With the ability to connect and process data faster powered by 5G, consumers will be able to download three seasons of Stranger Things in mere seconds and stream content in 4K and 8K with no problems, while marketers can realize the goal of real-time analytics through AI, customize content on the fly and create richer, more engaging digital experiences previously deemed impossible due to load times.

As we look to 2020, let’s all aim for technology to help companies connect with consumers via more motivational creative rather than disrupt the lives of consumers with novel technologies.

9Source: The Verge

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BY: MICHAEL MIRAFLOR, SENIOR VICE PRESIDENT, MEDIALINK

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CES 2020 did not disappoint in its ability to dazzle, impress and overwhelm conference-goers with the latest and greatest in new screen technologies, robotics, AI, and visions of an ever-connected future. Here are my picks for the most thought provoking on the convention center floor…

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The Delta Innovation Center in collaboration with Misapplied Sciences debuted its new Parallel Reality screen technology, which allows for different people to simultaneously see personal travel information from the same screen. The science fiction-like technology leverages pixels that project millions of light rays of different colors and brightness that are software-directed to individual travelers. Leveraging Delta’s first-party data, information will include not only travel updates, but also airport shopping and dining suggestions in the traveler’s native language. Technology like this has the potential to completely reimagine leveraging personalization at scale for OOH.

For many conference attendees, Delta’s first impression was made well before arriving in Las Vegas. The airline also offered the brilliant and practical idea of providing CES badge printing at kiosks in select SkyLounges throughout the U.S., saving at least an hour of time upon arrival in Vegas.

Source: Delta

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The past few years of CES have introduced a host of incremental improvements in screen quality. This year, advancements in TV technology suggested a reimagination of basic form factor, the likes of which have historically (ex: the shift from CRT to plasma flat panel) driven consumer interest and sales.

Samsung’s Sero TV has the ability to rotate its orientation from landscape to portrait, no doubt influenced by Gen Z’s expectation of vertically-oriented entertainment on platforms like IG Stories, Snap and TikTok. LG’s latest Rollable TV concept rolls up or down and out of sight when not in use, suggesting a possible future in which living rooms are not designed around TV set placement. Royole’s Fully Flexible Sensor technology was a sight to behold, with paper-thin and feather-light screens literally fluttering in the wind, one of the truly show-stopping moments of CES 2020.

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Smell and taste have been scientifically proven to elicit the most vivid memories and trigger strong emotional response, so it is no surprise that startups are now looking to partner with brands for olfactory branding opportunities. Home IoT startups on the CES 2020 show floor such as Moodo went several steps beyond traditional electronic diffusers by allowing consumers to explore cocktails of smells, provided by scent canisters (that very much resemble Keurig pods) that can replicate a favorite hotel, vacation locale or a host of perfumer preset mixes.

Stratuscent’s Digital Nose, whose technology is said to be based on NASA patents, uses chemical receptors and AI to quickly and accurately determine a number of complex smells. The company is said to be creating the world’s first comprehensive database of everyday scents.The digital scent landscape is gaining traction—not only as food safety outbreaks grow but as brands turn to sustainability and waste concerns—and we expect to see this market continue to grow.

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BY MELANIE WASHINGTON, VICE PRESIDENT, MEDIALINK

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A January 6th headline published by CNN Business exhorted consumers to “Forget the headless cat robots, vertical TVs and automated trash cans. The hottest product at this year's CES technology conference may just be privacy.”

This outlook hits the bullseye for 2020.

Across the multitude of CPG, Retail, QSR, DTC companies and ad-tech/mar-tech providers in attendance, a common theme emerged—companies may be their own worst enemy while attempting to operate within the confines of CCPA. It’s not just the depth of the new regulations, which pose a challenge, but

regrettably, the fact that privacy education within organizations is siloed strictly to compliance teams. Yet, CCPA’s impact will reverberate company-wide.

The CES floor was filled with new innovations and panels dedicated to privacy in hopes of making some strides on swifter compliance and adoption (including the Facebook "Privacy Checkup" tool, Google Voice Assistant updates, a rare cameo by Apple Chief Privacy Officer Jane Horvath and more).

Let’s examine this through the lens of a few common misconceptions…

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Unfortunately, while the California law does mirror some of the GDPR’s provisions, GDPR compliance does not capture the broader definitions of the CCPA. And shared misconceptions by both providers and advertisers prevent corrections of inaccurate understandings.

What does this mean? Outward-facing teams (across media, marketing, digital, & data) must be armed with the facts about CCPA; a simple outline of the basic information, appropriate questions to pose, and the best-in-class responses to listen for should be socialized internally to ensure there is true clarity around CCPA and other global regulatory guidelines.

How CES addressed this: From Tech West to East, the CES Marketplace was overwhelmed with regulatory education related to how brands can rebalance themselves in the face of a fragmented data economy . . . without, of course, sacrificing innovation. Experts, like Deloitte’s Dana Chand, were featured across the “Smart Future” track arming CES audiences with a practiced point-of-view on risk governance, vulnerability management, identity & access management, risk strategy and data protection for diverse industries around the globe. CES served as a platform for industry leaders to advocate for the much-needed collaboration and awareness across the enterprise.

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One distressing comment that could usher massive litigation: “CCPA and all this privacy stuff is just in California.”

The call for data privacy is a global phenomenon—resulting in legislative changes far and wide. To date, over 100 countries, spanning six continents, have enacted privacy laws that seek to protect the information of internet users. However, many of these antiquated privacy laws will inevitably be amended in coming years. Within the U.S. we easily anticipate other states to adopt a variation of what California has done with CCPA. (It is currently nine and counting).

What does this mean? In an effort to bring uniformity to this increasingly evolving area of policy, Congress may succumb to the pressures from pro-privacy advocates to endorse the consumer rights created in California. However, these privacy amendments will extend far beyond our domestic footprint and the E.U. Proactive education, privacy mapping, and global comparisons can help to mitigate the potential of litigation and unforeseen penalties. And as, data privacy laws are evolving (and fast), the onus cannot be on legal departments alone to bring companies up to speed. Ensure cross-functional collaboration.

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How CES addressed this: While Apple CEO Tim Cook addressed the technology giant’s cross-collaborative approach to proactive compliance (between product engineers, legal, and relevant lines of business), the CES fireside chat between the FCC and FTC emphasized the need for Congress to step in and harmonize the "dozens of existing privacy laws" that create "unnecessary complexities" in and outside of California. FTC Chairman Joe Simons used CES to call for Congress to pass comprehensive privacy legislation to proactively combat the lack of uniformity across the ecosystem. While he does not favor a Democrat-backed proposal to create a new, separate privacy enforcement agency, he remains confident in the FTC’s ability to continue to enforce privacy aggressively and creatively.

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“We have all these big plans but, no one knows where the money is coming from just yet.”

There is no question that advertisers have largely relied on agencies for the management of all things data. However, in the era of CCPA, brands want to take back control, forcing them to reevaluate practices and make greater investments across new technology staffing, training and record-keeping, and compliance with the 90-day lookback requirement (for firms selling personal information to third parties). This comes at a cost.

What does this mean: It is projected that companies of 100-500 employees will incur an average initial cost of $450,000, while those with greater than 500 employees will sustain an initial cost of $2 million. Whether in-house resources are used or dedicated firms, compliance is costly, and non-compliance even more so, and it can considerably impact the P&L if not accounted for.

How CES addressed this: Again, front and center at CES was the FTC, who stated that they will continue to investigate Big Tech and will be issuing guidance on how the FTC would be evaluating companies under antitrust law. The undertone of the message? Keep Facebook’s historic $5 billion privacy fine top-of-mind. The cost of compliance upfront will always pale in comparison to back-end penalties.

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Although the CCPA was adopted on January 1, 2020, several loose ends and loopholes persist that must be fleshed out. Even still, it is rumored that regulators may take as long as two or three years to actually evaluate the state of compliance of a company leading to the infamous, “I’ve got two years to fix this. I’ll deal with it later.”

What does this mean? If you have not started to prepare for CCPA, you are taking a very big gamble. “Later” is upon us! “Later” is now. Don’t procrastinate and wait for the regulators to force your compliance—that 30-day grace period to correct any CCPA violations may not be long enough to fix your issue and will result in a greater expense and headache on the backend.

How CES addressed this: Probably one of the most talked about sessions was the Chief Privacy Officer Roundtable: What Do Consumers Want? The panel, featuring Jane Horvath, Apple's senior director of global privacy; Erin Egan, Facebook’s chief privacy officer for policy; Susan Shook, global privacy officer of Procter & Gamble and Rebecca Slaughter, a Democratic commissioner at the FTC; shed real light on the time and focus necessary to align global privacy practices across an organization—putting pressure on those that have yet to address privacy within their own. As global companies continue to sort through the complexities of the less stringent GDPR (almost two years later), unmistakable is that CCPA will up the ante in the time it will take to ensure compliance.

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