SXSW BitesThe best of SXSW 2014 made easy to digest

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Well, another year has passed and the crazy (and often overwhelming) world of SXSW has continued to exponentially fill our brains with the latest and greatest in technology and human behavior. However, unlike past years that focused on the latest, coolest app launch, this year’s big theme centered on our response to all the recent technological innovations that have come into our lives. The big keynote speakers this year were Julian Assange and whistleblower Edward Snowden, rather than the CEOs of tech companies as in years past.

Some might even say the pendulum swung to give people respite in the face of technological overload, as this was the first year we’ve seen ample yoga and meditation classes, offering festival-goers a break from it all!

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TAKE A LOOK INSIDE AT SOME OF OUR BIGGEST TAKEAWAYS AND WHAT THEY MEAN FOR BRANDS.

Of course, everyone leaves SXSW thinking, so where is this all going to take us? What does the (not so far) future hold? For starters, we can all expect technology to become more intuitive and multifaceted, with more reasoning capabilities to enhance our lives and our experiences. Think intuitive suggestions, predictions, auto learning, and human-like senses. With embeddable technology evolving by the minute, we’re already seeing sensors being embedded in the body and our sense tracks, reducing the distance between our skin and the external world. With transcending devices, people can bring their cloud with them from their phone to car and other smart devices, meaning their expectations for seamless (and often non-linear) brand experiences will continue to grow.

ON THE HORIZON: THE NEXT EVOLUTION OF TECHNOLOGYThis year we saw robots, live space talks with astronauts, and connected cars with predictive analytics that can warn drivers about potholes, the speed to take corners, and even begin personalized driving recommendations. And with prototypes of cars that will drive themselves, maybe, just maybe, we’re not so far off from the future of the Jetsons and Marty McFly after all…

the BIG themes

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We all have a human desire to make our lives easier, simpler and better, and technology and digital innovation continues to address many of these needs. To utilize these innovations and reap the benefits, we’ve become walking data generators, either knowingly or unknowingly handing over our data to companies and brands. In the best case scenarios, our data is used to help create more engaging experiences, motivate our action and create better, more personalized relationships to drive loyalty. However, rather than focus on these benefits, this year countless talks focused on the dark side of data and concerns over it’s security.

On one hand, we as users need to hand over data and information about ourselves to help create better experiences. Advertisers and platforms look to use this to create better targeting, relevant

THEME #1: LURKING IN THE SHADOWS: THE DARK SIDE OF TECHNOLOGY, FROM SNOWDEN TO SECURITY

What does this mean for brands?As people are becoming more wary of their data and how it’s being used, brands need to do everything they can to make people feel secure by being open and transparent. Let them know you have their data and do everything you can to make them feel comfortable, secure as well as valued and acknowledged.

After all, they’re humans, not numbers, and when you remember to treat them as such; you build the necessary foundation of any relationship – trust, which is the only thing that can save us in the face of doubt.

messaging and predictive solutions to make sure they’re top of mind at the most opportune moments However, as we’ve seen, in the wrong hands, misuse of data can be extremely problematic (just think about Target’s recent massive data security breach). Unfortunately, as Snowden and others discussed, the tools we’re using aren’t designed with security in mind first, creating conflicting models and leaving people to question how much is too much, and is handing over my data really worth it?

One company, DataCoup, is actually putting individuals directly in charge of their data, helping people sell it directly to companies for something in return with the goal of creating an open, transparent and mutually beneficial relationship.

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While data security was one major theme, privacy proved to be just as important. However, this theme was less about the misuse of data and more about people’s response to data permanence, understanding its implications regarding judgement and consequences if seen by unintended audiences. Given data permanence on social networks like Facebook, we saw a radical rise in platforms like Snapchat, Whisper, Secret, Confide and Wicker which let people engage with others without fears of content following them around forever. These

What does this mean for brands?Brands can’t (and shouldn’t!) force themselves into private conversations. However, if brands are able to find ways to be invited by being more creative and relevant without coming off as intrusive, there is potential to stand out and gain their attention. iris found a clever way for Dominos to engage with people on the dating app, Tinder, by encouraging them to “swipe right” on Tinder for tasty deals on Valentine’s Day. The key is, if you only have 6 seconds (or less!) to communicate, they better be worth it!

THEME #2: ANTI-SOCIAL MEDIA

apps clearly address people’s desire to limit their sharing, or better yet, provide complete anonymity. After all, not every selfie needs to live on forever. Cloak is the latest to come on the scene, actually helping people avoid friends in the real world based on their social media interactions, talk about anti-social media!

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Wearable and embeddable technology (either ingested or as a tattoo with a chip smaller than a penny that can communicate with objects) both made big appearances this year, not only with those donning Google Glass. We saw brain sensors, sensors on clothing, embedded in skin and even pills that take photos throughout your body or better yet, release doses of medicine when your body senses that it’s needed.

While it’s just a matter of time before our entire bodies become an interactive canvas, despite the cool factor, it felt to us that this was more hype than immediate reality.

Cool in theory, however they still have a long way to go before becoming mass.

Case in point: Google Glass is heavy with a clumsy user interface, therefore we can expect it to take another 3-5 years before it’s really useful. Until we see a more seamless integration we have a bit of a way to go before it really starts to gain any true traction. One that we do have on our radar however is Ring, a much less intrusive device that

recognizes finger gestures, allowing the wearer to write text messages by simply drawing in the air. The same dynamic allows the wearer to access apps by drawing designated shapes in the air. For example, drawing a music note could access your music player, while drawing an envelope shape would allow you to access your email.

On the other hand, we have a feeling that (despite the potential creepy factor) embeddables may take off sooner, since they’re less visually intrusive. Flexible Sensor Tattoos are already being used by athletes to help prevent injury and provide recommendations on how to reach optimal performance levels. They’ll be available by 2015 with the ability to put valuable data directly onto a mobile phone and on the cloud.

What does this mean for brands?While not at the tipping point of the bell curve just yet, there are quite a few brands starting to enter this space right now. For example, Adidas’s company NuMetrex is already making bras that track your heart rate and can submit information directly to their MiCoach app.

Our take? Keep it simple; even the best intentions can fail if too many steps are in the way. With so much potential, the brands that are able to put the experience in the foreground and make the technology feel seamless to peoples’ lives are the ones that people will gravitate to.

THEME #3: WEARABLES, EMBEDDABLES & EVEN EDIBLES!

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Former Google Wallet product lead, Mark Freed-Finnegan predicted a future where there will be fewer stores, smaller stores, and probably less inventory. To illustrate his point we can look to Williams Sonoma whose e-commerce sales increased by 50% this year, and are beginning to close stores. Instead of using their existing stores for merchandise, they’re using the space to focus more on the brand experience with classes and demos. There are lots of ways to enhance shoppers’ experiences, some not as difficult as others.

For instance, what if payment cards could be used as personal shopper IDs instead of loyalty cards? Well, it turns out with his new startup, Index they can. Cako, a bakeshop in San Francisco is now taking credit card data to create accounts for shoppers, giving personalized recommendations based on past purchases. Of course the trend of data security may have some implications here; it will be up to the retailers to deliver this in a way that makes people feel comfortable.

Bitcoin was also a hot theme this year, with people talking about it’s potential evolution as retailers begin to accept it as payment. However without any regulation and mass understanding to address security concerns, it may take a bit longer for widespread cultural acceptance.

Inside brick and mortar stores, we saw lots of talk and rage about the possibilities of reaching consumers in more places with iBeacons (micro location based technology). However, while there is a lot of upside potential for brands and retailers to create contextually relevant messages, for savings, coupons, and reminder messages, we do have concerns over the number of necessary steps it will take for people to engage (download apps, accept permissions, etc.) as well as the potential for brands to over-spam. All it takes is one bad experience for people to be turned off and not want to engage.

What does this mean for brands?We believe the store of the future will be the one that continues to create the best experience through experience design, predictive technology and good old customer service.

As for brands within those stores, with potentially less space brands are going to need to get more creative to find relevant distribution channels. Thrillist’s talk on “Content and Commerce” may be the way of the future: with publishers looking for revenue streams by playing the intermediary between brands and content. Click here to see how they did this with JackThreads & TidePods.

THEME #4: REINVENTING RETAIL

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The most promising trend coming out of SXSW this year centered around the potential for brands to take an active role in people’s lives for the better with the help of technology, particularly through mobile. As Biz Stone, co-founder of Twitter and newly announced Jelly stated “the true promise of the connected society is people helping each other.”

MasterCard’s partnership with the World Food Program was one example of how a brand took on a social cause and is making a positive impact while reaching out to an entirely new audience base. The brand is raising funds for the WFP and providing money for food to refugees via digital pre-paid cards and mobile phones. The premise is by letting

them pay for food via cards and mobile is helping to rebuild their sense of dignity and become a part of the society they’re displayed to. Oxfam’s Pink Phone project in Cambodia was another example, whereby rural women were given old mobile phones providing them with access to farming information to help their livelihoods. We’re also seen phone hacking for good, as textbooks are delivered on phones in African nations.

What does this mean for brands?As the world becomes flatter and people become more connected and more involved with brands, brands need to rethink their views of CSR from Corporate Social Responsibility to Community Social Responsibility. In some cases brands may need to rethink their business model (think TOM’s), or be bold in their beliefs and what they stand for (Patagonia). Either way, the brands that are able to become integral to the fabric of their communities with openness, honesty and transparency are the ones that people will gravitate to.

THEME #5: SOCIAL GOOD: WE’RE ALL IN THIS TOGETHER

we’re in a place in human history where this notion of public and private, profit and non-profit are starting to blur. - PepsiCo’s Manoj Fenelon

technology that amazed us

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Immersive, interactive experiences are ready for the masses with 4D Virtual reality software from Oculus Rift. HBO created a ‘Game of Thrones’ 4D Exhibit using Oculus Rift to showcase the new series, where people could enter the world of the Starks. This video of cast member Maisie Williams (Arya Stark) brings it to life better than any words on this paper: watch here!

Oreo’s Trending Vending Lounge used a technique similar to 3D printing to make a cookie with whatever colors and flavors you choose, printed with the top trending topics live on Twitter. Similar to Coke’s Freestyle vending machines that let people create their own flavors, the company plans to roll these out nationwide.

The “maker movement” and the resurgence of hardware was a hot topic at SXSW. This included physical tools and technological machines and how to make “making” more accessible. Earlier this year we saw GoldieBlox encouraging young girls to become engineers, however with littleBits we learned how to create our very own art installations and prototype projects in a matter of seconds. This is a fun bit of tech that brands can leverage to help make the complex more simple and easy to understand.

ENTER A NEW WORLD WITH 4D

REAL-TIME GETS REAL EDIBLE

HARDWARE GETS SIMPLE

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Companies like Senseg (specializing in Advance Haptic technology) are able to turn flat screen surfaces into tactile textures.

Well, it turns out when AT&T said, “reach out and touch someone,” we actually can now! Okay, maybe not a human person on the other end of the screen (just yet), but with this technology we can transform ordinary surfaces into tangible textures, creating a new layer of brand experiences.

MIT Labs took our imaginations further than we expected with edible fragrances. Imagine eating a snow cone that tastes and smells exactly like a “day at the beach,” “Grandma’s house” & “Summer rain.” When senses combine, the possibilities to tell your brand story on multilevel levels are endless.

SURFACES GET TACTILE FEELING

FRAGRANCE YOU CAN EAT

Did you know?1 in 4 Americans don’t know the earth orbits the sun

In 2020 152 million cars will be connected to the Internet

By 2025, 80% of the western workforce will be Gen Y

81% of moms say their favorite place to use their smartphone is in line at the grocery store, 2nd favorite place? The bathroom

35% of Amazon sales are driven by smart targeting associated products and CRM

2 million digital articles are written everyday!

Every two minutes, we take as many photos as all of humanity took during the 1800s

Over the next 5-10 years we’ll see everything move to the cloud

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Our Top 3 Key Lessons for Brands:Always bring a bottle of wine

Bob Thacker, former agency exec as well as SVP of Marketing for Target, Sears and OfficeMax summed up what we do (and what we need to do) so well: “All advertising is party crashing, so if you’re going to crash the party, bring a bottle of wine.”

Now with apps and plugins like Readability, it’s easier than ever for people to not only ignore, but also actively remove the cluttered ads and banners from their pages if they’re in their way. Let’s all make sure we’re never interrupting and always adding value, especially given the reality of content overload. If we’re not adding value to peoples’ lives, we risk becoming wallpaper and only talking to ourselves.

Look for ways to shift your perspectiveCulturally, we need more out-of-the-box thinking. Both David McCullough Jr. (famous for his “You Are Not Special” commencement speech), and Neil Degrasse Tyson, of Cosmos, both had fascinating talks on the premise that we should never just accept things at face value, but always question and look for alternative ways for solutions.

When we start to think like this, we can begin to imagine the possibilities of how our brands can separate themselves from their competition, push the boundaries of innovation, and more importantly build better relationships with people. Here’s an example to get your wheels spinning: What’s half of 8? 4, numerically. But, if you slice 8 in half vertically you get 3, or horizontally, you get 0. If you need help stimulating your team to think outside of the box, we’re more than happy to help facilitate.

Stay true to your passionate purposeAnd last but certainly not least, Kathy Savitz, CMO of Yahoo, said, “Great brands don’t focus on what they are, but WHY they exist.” If you know what you do but haven’t fully articulated your passionate purpose and how that can improve everything you touch, including the lives of your audience to drive participation, give us a call, we are more than happy to help.

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Thanks for taking the time to read our little bite out of SXSW. If you’d like to know more, or arrange a session to dive into the content and trends in more detail, then please email Sarah Aitken, Managing Director, iris NYC – sarah.aitken@iris-worldwide.com

www.iris-worldwide.com

@irisworldwide http://irisundertheinfluence.com