2015 Digital Trends Report by Beyond

12 Trends for 2015 What Marketers Should Be Thinking About in DigitalA Beyond Report

IntroductionWhat’s in this report?

In this report we will cover 12 trends we think will shape digital in 2015. In 2014 we saw marketing spend big on technology, a sharper focus on user experience design, and a resulting shortage in good UX designers. As predicted, 2014 was the year mobile finally became the primary way people consume digital in the US and UK. In 2015, successful marketing will become more dependent on the effective use of technology, but marketing technologists will need to better understand the human dimension of the experiences they digitise. They will also need to think more clearly about "little data" - and how brands can create more user value from the highly personal data they generate online. Lastly, all of this will be delivered through new user interfaces on devices we don't even have names for today. These broad themes are brought to life in the following 12 trends that will shape 2015.

How to use it?

We have divided these trends into timely priorities (Trends to Prepare for Now) and longer-term priorities (Trends to Start Thinking About).

Trend To

Prepare For

Now

Trend To

Start Thinking

About

Summary: The 12 Trends

Strong image strategies will drive better conversion

rates: smart brands will optimise for the growing image

economy that is driving the shift to a visual web.

1

2 Bare your data, innovate faster: APIs and open data

streams allow for faster and cheaper innovation, creating

more value for users and boosting brand love in return.

3 Buying on mobile will be better than on a PC: 2015 will see

m-commerce benefit from UI and payment integration

improvements that will make buying on mobiles mainstream.

4 User Interfaces will simplify as everything becomes

connected: in a world of mobiles and wearables, UIs will simplify

dramatically, and Android/iOS changes will force developers to

rethink how services are delivered to users.

Consumers will recognise their “data value”: the backlash

against the collection of consumer data is growing and brands

need to prove value and transparency or face being overlooked

in favour of more trusted brands.

9

10 Your phone will become smarter than you: mobile services

will use more contextual information to begin anticipating user

needs before users have them.

11 Your data will do your work for you: brands will

increasingly make behavioural data available to customers to aid

them in their decision-making.

12 Automated marketing won't be good enough: as marketing

becomes increasingly technology-driven, brands are

increasingly at risk of losing the human touch.

In-store digital experiences will revolutionise

commerce: 2015 will see in-store digital experiences

becoming more common, with online e-commerce leaders

moving into physical spaces, sparking new innovations.

5

6 Sensors will drive super-smart, proactive products:

Our mobiles are now packed with sensors giving developers

the opportunity to use new personal data streams to mesh

people’s physical and digital experiences.

7 Brands will still struggle to embrace digital: digital

transformation is a key priority for brands, but without

genuine investment from the C-suite, initiatives will struggle

to make an impact.

8 Companies will waste money assimilating big data:

deriving insights from big data has underappreciated

pitfalls that will disappoint many.

- Hal Varian, Google

Strong image strategies will drive better conversion rates1

Trend To Prepare For

Now


Creation, engagement, and sharing of images driving transition to a visual web

Photos taken in 1998:

8 Billion Photos taken in 2014 (est.):

880 Billion

Images shared per day in 2014:

1.8 Billion - 150% increase from 2013 and

515% increase from 2012

Creation Engagement with brands Sharing

Instagram

Facebook

Twitter

G+0 0.4 0.8 1.2 1.6

Engagement Rate


Now

Sources: Kodak, Yahoo, L2,Kleiner Perkins

1. Strong image strategies will drive better conversion rates

What’s the trend?

In 2015 brands need to think about visual optimisation of their content. Images communicate ideas at least 20 times faster than text (Potter et al, Kriegl et al) and consumers are far more inclined to click through to content which includes high quality images of their products and services.

Where are we seeing it ?

According to Bing, nearly 10% of all organic searches are for images, and 40% of all search results contain “some kind of visual component”. By September 2014, image search traffic had a conversion rate 11% higher than non-image organic search traffic.


Now


Bare your data, innovate faster2


Now


“Combine and recombine internet components in ways that create totally new innovations”Hal Varian, Google

Combinatorial Innovation:

0

3500

7000

10500

14000

2005 2007 2009 2011 2013APIs

Explosive use of web services which brings plug’n’play innovation based on combining data streams is key to driving fast new innovation


Now

2. Bare your data, innovate faster


We will see more companies following the example of Uber, which opened its API and allowed partners like Starbucks, Time Out and TripAdvisor to build on its functionality. Users can now see pickup times and fare estimates on these apps, rather than having to open the Uber app – evidently, shared data has improved functionality and user convenience.


Now

Open API Build on Functionality

What’s the trend?

We will see brands achieve competitive advantage over their rivals by opening their data and functionality APIs up to the developer community. This digital trend counters the traditional closed R&D approach taken by offline brands for the last 100 years.

Buying on mobile will be better than on a PC3


Now

3. Buying on mobile will be better than on a PC

What’s the trend?

NFC mobile payments are finally here on both Android and IOS. But the

biggest m-commerce breakthrough might come with Apple Pay’s

eventual incorporation into Safari on the iPhone. This would allow

people to purchase items seen on screen with a single fingerprint,

removing the hassle of entering credit card numbers and customer

details.


Mobile device conversion rates for e-commerce have long lagged those on

PCs with smartphone conversion rates often reported at a 1/3 of that of

desktops. Conversion rates for smartphone on mobile optimised sites are

160% higher than on non-optimised equivalent. We expect to see UI and

payment integration improvements coming in 2015 to further increase

this differential.


Now

User interfaces will simplify as everything becomes connected

4


Now

New devices, new UIsMicro-interactions Glanceable UI

Hyper personalised moments that are easy to action with

instant gratification

Providing the minimal required information to

elicit a meaningful action


Now

4. User Interfaces will simplify as everything becomes connected

What’s the trend?

As more things become connected to the Internet featuring a wide

range of non-standard displays and interfaces (from smart watches to

Oculus Rift glasses), brands will need to re-think how they present

information and deliver services to users across these devices.


Mobile design has already started moving in the direction of greater

simplicity. Glanceable user interfaces such as bite-size cards lend

themselves to smaller devices and take friction out of user

interactions. Both Apple and Android are redesigning their operating

systems around the concept of notifications – that will let users fully

engage with their surroundings without the need to open an app.


Now

In-store digital experiences will revolutionise commerce5


Now

5. In-store digital experiences will revolutionise commerce

What’s the trend?

With previously online-only brands such as Amazon, E-Bay and

FourSquare starting to expand their offering into brick and

mortar high street locations, the in-store retail experience will

become increasingly driven by technology in 2015.


Mirrors that double as massive touch screens can assimilate

personal data and suggest complementary "looks" and accessories

to the clothing you try on in front of them. Stores will recognise

users of the brand’s mobile app as they enter, allowing staff to

offer a more tailored service. As omni-channel retailing enters the

mainstream, it will set the standard for more traditional high

street brands who are playing catch-up on building their e-

commerce offerings.


Now

Sensors will drive super-smart, proactive products6

Trend To Start Thinking

About

The Wireless World Research

organisation predicts

7 trillion sensors

by 2017.

Types of sensors used in

smartphones:

at least 14


About

6. Sensors will drive super-smart, proactive products


Gartner predicts that by 2017, smartphone sensors will reduce the

costs of diabetic care by 10%, while by 2020, wireless health

monitoring technology is expected to increase life expectancy in

the developed world by six months. Beyond this, we are already

seeing non-health related brands innovate within this space.

Microsoft’s Septimu will use heart rate, temperature, and other

biorhythm sensors to work in conjunction with a pair of earbuds.

The associated mobile app called Musical Heart will select the

most appropriate music based on the user’s mood informed by

the Septimu sensors.

The Chinese search-engine Baidu is launching “smart

chopsticks” that can detect oils containing contamination - an

appealing prospect to a country beset with food safety scandals.

What’s the trend?

We can expect to find sensors in everything from smart watches

to patches on our skin, gathering data on heart rate, sweat

composition and body temperature in real time. In 2015, brands

will add huge value by tapping into sensor-gathered data. These

sensors will be used far beyond health and fitness brands to

provide experiences that are personalised through sensors.


About

Brands will still struggle to embrace digital 7


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7. Brands will still struggle to embrace digital

What’s the trend?

Without more direct and deep involvement from the C-suite and a willingness to adopt experimental approaches to digital development, many companies will fail to adapt.


In established companies, digital is too often a function, department or a specialty, and therefore removed from core business strategy. It’s rare that CFOs and CEOs are deeply involved in digital initiatives – in fact, Gartner has predicted that by 2016, 50% of digital transformation initiatives will be unmanageable due to internal skills gaps.


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Companies will waste money assimilating big data8


About


By 2020 there will be 50 Billion things exchanging 40,000,000,000 terabytes of data

Will this greatly increase our ability to glean insights or will the data overwhelm us?


About

8. Companies will waste money assimilating big data


As Nate Silver (author of The Signal and The Noise)

puts it, “with very large data sets you start seeing

more spurious correlations, more false positives, and

erroneous answers. If the quantity of information is

increasing by 2.5 quintillion bytes per day, the

amount of useful information almost certainly isn’t.”

Along the same lines, machine learning guru

Michael Joran has predicted an epidemic of false

positives coming out of big-data projects. In 2014

alone, big data accounted for nearly $30 billion of

investment – it’s likely to cost companies even more

in 2015 with many businesses struggling to achieve

real value from the investment.

What’s the trend?

In 2015, it’s possible we’ll see disappointing results

from big data initiatives, as companies use the

technology in the search for new insights, but

without the right expectations or scientific approach.


About

Consumers will recognise their ‘data value’9


About

9. Consumers will recognise their ‘data value’


In a recent Beyond study for HP, we found that only 18% of people say

they feel comfortable sharing data with companies in return for a

personalised experience. However, when given insight into how they

can improve their own lives – such as with popular fitness trackers

like FitBit – people are more than happy to supply personal data.

There are now hundreds of self-tracking apps available, many with

millions of users - such as Check (10 million users; personal finance

tracking) and Azumio (7 million users; health tracking). This shows

there is huge appetite to share even sensitive personal data as long as

there is a clear value exchange - but with that comes an equally huge

responsibility to not breach trust.

What’s the trend?

Consumers have accepted the adage that “if you don’t pay for a

product, you are a product”, and continue to adopt free

services like Facebook in their droves. Nonetheless, new

networks like Whisper and Ello promise not to track users and

their success shows that consumers are increasingly wary of

their personal data being misused. Companies need to

promote greater transparency and give consumers more direct

control of their data, or face more backlash.


About

Your phone will become smarter than you10


About

10. Your phone will become smarter than you

What’s the trend?

Context is everything. And your mobile phone is becoming

increasingly aware of context, sensing and reacting to changes in

its environment - from weather, to traffic, to the time of day.

Companies are increasingly using contextual design to create

smarter products that understand the full story around the user in

order to bring them exactly what they need, when they need it,

possibly before they even know they need it.


Whether its an automatic notification that you’ll be late for a

meeting because of traffic or a notification that you have run out

of milk when you enter a supermarket, your digital devices will

anticipate your needs before the needs are needed. The

possibilities are endless.


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Your data will do your work for you11


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Key forces driving this trend: • Machine learning

• Collaborative filtering

• Predictive analytics

• Quantified self

• On-demand and cheap(ish) technology


About

11. Your data will do your work for you


Amazon recommends products you should look at next, OKCupid

pairs you with algorithmically compatible partners, and Google

anticipates what you’re about to search for – so why can’t

traditional, brick and mortar brands start doing the same with

their online experiences? By exposing analytics data

intelligently, digital experiences will only become better,

delivering increased value for both brand and customer. And

with new simple, low-cost predictive APIs like BigML and Google

Prediction API it’s easier than ever to start experimenting now.

What’s the trend?

Algorithms - such as predictive analytics - have helped brands guess what you might buy, based on the traits you share with people like you. Over the past few years we’ve seen brands using this to target people with promotional offers based on their shopping patterns and preferences. But a few companies have pioneered the use of these algorithms to solve customer needs online by exposing user analytics to help with decision-making. Users are being increasingly conditioned to expect websites to automatically learn and anticipate what they need, automatically suggesting personalised solutions.


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Automated marketing won't be good enough12


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12. Automated marketing won't be good enough

Targeting users repeatedly with the same ads – regardless of where the user is in the buying journey – shows how easy it will be for automation to go wrong. In 2015, more brands will see the value of ensuring automation is designed and quality-controlled by humans, who can use expert insight and informed planning to ensure promotional messages fit into the greater overall customer experience. Otherwise, the benefits of automation could easily be outweighed by the damage done through annoying, inappropriate and irrelevant marketing.


A recent study by RAPP and InSkin Media shows that over half of consumers are put off buying products or services if they see the same ad reappearing multiple times online.

What’s the trend?

In recent years, marketers have invested huge amounts in various forms of automated marketing – but as with all automation, there’s a danger of losing the human touch.


About

Beyond is an experience design agency that creates digital products and services for companies. We create the experiences that define your brand by removing friction from the customer journey.

Beyond believes in innovation through iteration and collaboration with our clients and users because products are the living expression of the brands we build.

The company was started in 2010 and now employs 85 people with three offices, San Francisco, New York and London. Our client list includes Apple, Google, Novartis, Virgin, UBS, Facebook, Instagram, Sainsbury’s, HP, Amadeus, Hershey’s and Viacom amongst others. In 2012 Beyond was recognized by Marketing Magazine’s Revolution Awards as the Best Start Up citing our "innovative approach to digital" and growth rate as key factors in winning the award. In 2014, Beyond was shortlisted in Data Storytelling and Online Marketing by Marketing Week’s Data Strategy Awards for our work with Virgin and shortlisted twice for the 18th Annual Webby Awards: Virgin.com and Google.

About Beyond

Thanks for reading. This trend report was brought to you by the research and strategy team at Beyond as

part of our ongoing work to help create a world without friction. www.bynd.com

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