CES 2015: 5 Future Implications for Marketers

• The Internet of Every “Thing”

• Evolution of Wearables

• Semi-Unbundled TV

• Auto Tech Innovation: Safety

• Practical Uses of Virtual Reality

CES: 5 Trends & Implications for Marketers

• At CES, the Internet continued to extend to just about every “thing” imaginable, including things outside the household:

– Samsung SmartThings enable users to easily build smart, connected homes

– Parrot Pot & H2O connected plant pots

– Intel SteadyServe iKeg

– Intel Internet-connected coffee machines

Trend: The Internet of Every “Thing”

• Connectivity creates a world where personal data is generated at every point of product interaction

• Data optimizes the product experience– e.g. a better cup of coffee or beer– e.g. insurance premiums may change as product usage

data is gathered for home devices

• Data powers advertising– e.g. connected washing machine data could help a

detergent brand:• Know when most people do laundry, helping

media flighting• Know who does laundry more, informing targeting

– Ad campaigns & content can run on the mobile application for controlling the connected thing (e.g. reminder to buy more detergent)

The Internet of Every “Thing”: Implications for Brands

• 33% of fitness bands are discarded after 6 months (CNET)

• Very crowded space

– Wearables with heart rate monitoring, GPS, calorie counts, mileage counts &activity tracking are just table stakes

• Design influence is becoming more relevant (Apple)

• Comfort is key

– Jabra & Sony headphones wirelessly monitor heart rate & play music based on heart rate

– Sony SmartBand Talk light & streamlined v.Microsoft Band

– Glasses still bulky & distracting

• Integration w/ equipment is promising

Trend: The Evolution of Wearables

• The quantified self creates a plethora of new data points (e.g. health, location)

• Wearables data may soon become accessible for advertising & content distribution– e.g. health insurer targets people on activity level

– e.g. apparel (shoes, outdoor) targets active people

– e.g. food brand targets people interested in health

• Insurance premiums may change as data (heart rate, calories burned, steps) is gathered for people– Oscar band (rewards)

• Brands will need to establish rigorous guidelines for use of personal data

• Apple Watch will change everything

Wearables: Implications for Brands

• Intro of Dish’s new Sling TV offering:– Curated # of content providers (including ESPN) over

users’ Internet connections for $20/month, without a contract

– First time that ESPN has unbundled, sending a signal to the industry that cord cutting is a marketplace opportunity

– The user experience is designed to feel like TV, easing the consumer transition from cable to online

• HBO & CBS have also announced stand-alone online streaming services

• Extension of the quantity & quality of TV that people can view w/out a pay-TVsubscription

Trend: Semi-Unbundled TV

• Sling TV will plant the seed for further unbundling activity in the marketplace

– It’s what consumers (especially young ones) want

• New unbundled services will increase the available supply of quality ad inventory

– This has been a key issue throughout 2014 as audiences have migrated to ad-free subscription services like Netflix or UGC platforms like YouTube

• Think about online video advertising opportunities

Semi-Unbundled TV: Implications for Brands

• Evolution from previous years:

– Super-connected cars

– Self-driving cars (controlled by smart watches)

– Electric vehicles (even a BMW that charges by parking in an inductive space)

Trend: Innovation in Auto Tech: Safety

• But what stood out as brand new? A few new prototypes centered on safety:

– Smart Headlights

• BMW’s M4 Concept Iconic Headlights

– Eye Tracking

– Button-less Cars

• These innovations may soon impact

– Street signs

– Road infrastructure

– On-road mobile communications

– Insurance rates

Auto Tech Safety: Implications for Brands

• Oculus generated a huge buzz with its Oculus Rift Crescent Bay demo

– This placed users in a series of virtual environments

• But the practical potential for using VR in brand communications was highlighted for the first time:

– Lowe’s HoloRoom enabled consumers to experience their yet unbuilt kitchen or bathroom

• Consumers design their new room using Lowe’s 3D model

• Then they use Occulus Rift glasses to see the room in a life-like way

Trend: Practical Use of Virtual Reality

• Immersion: create a compelling brand experience by immersing consumers in a whole new world

Practical VR: Implications for Brands