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I N S I G H T S • I D E A S • R E S U L T S

Digital trends and predictions 12th Nov 2013

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A note on the following content:

The following document was put together for internal training and has been amended for publication. It is perhaps less future facing than some trends documents that will appear but the intent is to show some key shifts

in behaviour that may tangibly effect people in the coming year – principally in the digital marketing space. Many of the trends are actually emerging now but, to Mr Gates’s point on the following slide, we often get

carried away overestimating what will happen in the next 12-24 months and I wanted to try and be a bit more realistic about things that may actually touch and affect us in the next 12 months.

As it was written for the Australian market there is a bit of a local bias, based on technological availability and market dynamics, which has a bearing.

There are notes on the page content and reference links in the appendix

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“We always overestimate the change that

will occur in the next two years and

underestimate the change that will occur

in the next ten.”

- Bill Gates

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The increasing integration of mobile devices in our lives will be a key driving factor in most developments

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Don’t forget, it’s people - & their behaviour - that create and drive trends

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Image powered communications # 1

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We share over 500m photos a day through Facebook, Tumblr, Instagram, Snapchat, Twitter And upload over 100 hours of video a minute to Youtube Vine and Instagram video will grow Smartphones will keep allowing us to share our stories and passions through pictures with ever better cameras, enhancement tools, and the ability to instantly share

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Monetization

The effects are being seen now and will continue to be seen

A new breed of digital powerhouse

Sites become more visually led

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Brands are reflecting the trend

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Delivery of data will become more visually engaging

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Native advertising # 2

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What is Native?

Blurring lines between what is content and what is advertising… Advertising {content} delivered in the context of the user experience defined by the site/device. Instead of display banners it is: photos on Instagram, promoted posts on Facebook, tweets, videos on Vine, playlists on Spotify, etc

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Brands and publishers are reflecting the

growing cross device nature of our media consumption and the increasing prominence of mobile, where the stream/newsfeed is the

experience

Mobile and Social spends are both set to grow in 2014 and native will account for a

huge chunk of that spend

Native taps into the growing dominance of mobile devices

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As a corollary, content will increase in importance

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Nimble marketing {real time planning, adaptive marketing, etc}

# 3

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Be Nimble, but be careful when jumping on the bandwagon

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Oreo’s Superbowl Specsavers UK London Olympics Kleenex UK – adaptive marketing J&J UK royal baby

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The swan of marketing: graceful on the surface, feverish engine room underneath

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TV (sets) become the centrepiece of the living room again

# 4

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Connected/Smart TVs will become more prevalent

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4k, Ultra HD, 3D, 65” screens… Bigger and better is the future

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TV breaks free from ‘TV’

# 5

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‘Just as our phone calls became untethered from landlines years ago, our TV experience is no longer tied to a central location in the home… Today, people are more in control of their viewing habits than ever before. In the future, TV will no longer be a single device in the living room.’

Data source: Ooyala Global video index Q2 2013

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TV is king! It’s just now on different screens and in the ways we want it: we watch programmes, not the box

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OTT TV will be a growing battle ground

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The symbiotic relationship between TV and social evolves

# 6

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Nielsen Twitter TV ratings

Twitter amplify

Twitter TV ad targeting

Twitter leads the charge in social TV

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The relationship with programmers becomes more involved

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Digital continues to changes how we shop

# 7

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How we discover products will become more sophisticated and varied: more integration between retailers and sites we naturally use

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Gucci & Google Streetview Rich Pins Google Glasses

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Currency and action will be redefined

30 Special K -Tweet to buy Nordstrom - most pinned products

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Understanding device interplay will becomes vital

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Data source: Google ‘The new multi-screen world’ Australia March 2013

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Mobile devices a vital screen for retail and commerce

32 Data source: Google ‘Our mobile planet’ Australia May 2013, Google – Mobile in-store research: how in-store shoppers are using mobile devices, April 2013

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Mobile’s influence goes beyond just “showrooming” price-comparisons

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Data source: Google – Mobile in-store research: how in-store shoppers are using mobile devices, April 2013

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Think proximity

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Data source: Google ‘Our mobile planet’ Australia May 2013

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Mobile redefines in-store experience

35 Burberry RFID, Spaaza my price, Lowes in store experience app, Hointer

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# 8 What does your brand mean?

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Do rather than say becomes increasingly important for brands

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Connect through branded utility

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# … Anything else

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• In media - programmatic trading will increase and include more premium inventory

• In media - display has a resurgence • 1st party data control and usage will be a huge area- for CRM and for

advertising dollars

• 3D printing has potential for great engagement- See Yahoo Japan example in appendix, and the relationship with brand and products may change

• Social media engagement will become increasingly diverse

• Wearable devices increase penetration and usage

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# Thanks

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Basic commentary & reference links

Appendix

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Basic commentary notes on slides ‘Mobile devices in our lives’: We all live this and recognise this ourselves. Smartphone penetration is 60-70% and growing, tablets at 30-40% and growing. Prices are coming down and the market becoming more competitive: Argos launch a cheap tablet in the UK, Motorola launch a budget smartphone. We become more comfortable using these devices in all facets of our lives. Mobile is predicted to account for 25% of all internet traffic (globally) by the end of 2014. Certain sites here see 40% of their traffic from mobile devices. And this will only increase as 4G roll-out happens: improving speed and obviously usability.

‘The effects are being seen’: Instagram, Vine, Tumblr, Snapchat all now looking at ad options. // Snapchat being valued at $3.8bn, Pinterest becoming a vital driver of site traffic for many retail sites // Twitter and Google + re-work feeds to be more visually led and compete with Facebook

‘As a corollary’: Lowes in the US offer 6 second video DIY tips on Vine, GE use Buzzfeed lists for B-2-B marketing (business people are normal people too…), Jaimie Oliver launches cook-a-long Youtube channel, and Red Bull do amazing stuff all over the place but how about an hour long documentary (essentially ad-funded programming) that ran on the BBC, a channel that carries no advertising

‘Nimble’: There are various terms for this trend and type of marketing: real-time marketing, adaptive marketing, real time planning. It’s not that new but is increasing in importance and occurrence. It is brought about, and brought to life, by a number of inherently digital things: increasingly available data from various source (public health, transport, weather, your own 1st party data etc), search trends, social trends, etc. And these trends/this information can be tapped into, utilised and reacted to with incredible speed, and to a mass audience – if you so desire- through social (mobile channels).

Oreo seem to have claimed the glory for their Superbowl ad, but they weren’t alone- Audi and VW also tweeted about the lights failure. // Specsavers when the wrong flag was used for the North Korean women’s football team at the London Olympics. // Kleenex using NHS medical data and search trends to only spend budget when and where needed instead of a standard October fully committed media campaign.

But be wary of just jumping onto a trend because it’s there. The royal baby earlier this year saw plenty of advertisers jumping in head first but many were just shoe-horned plugs with no relevance at all. Many had quite a strong backlash, including Oreos. J&J had a relevant product and a very cute simple way of promoting it.

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4

8

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15 & 16

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‘The swan of marketing’: Social- as we know - has changed everything: you can listen and monitor, react, test, have a conversation, start a conversation, etc. But it takes effort, resource and planning .

Many brands now have social media “war rooms” and “social command centres” to react to the growing discourse that goes on in the social arena. Good advertising of this type usually involves having templated or adaptive ads ready to go, and collaboration of numerous stakeholders- call centres, legal, advertising agencies.

But people recognise that brands operate on all social networks- constantly monitoring for customer service issues and tactical opportunities and trends, not just Superbowl lights out but signal outages for mobile companies, flight delays, heatwaves, etc. They will entertain good tactical activations, but – more importantly- if they post about you or interact with you they will expect close to immediate response

‘Connected TVs’: People don’t relish fragmentation- this is why smartphones are great: I have my camera, phone, music, internet access all in one device instead of 4. We still like being in the lounge and congregating around the TV. Now we can switch between linear TV, social apps, games, internet, whatever else, on one device; and generally on an amazing quality screen. We hanker after good quality – look at what IPhone sell themselves on (among other things): retina display. Why did DVD wipe out video? We want a great viewing experience for our favourite content- games, movies, TV shows, sport, etc. At most tech shows this year it was the size and sophistication of the TVs that dominated many companies’ stands

‘TV is king’: We love good TV content and we want it on our terms- look at the amount of illegal downloads for GOT and Breaking Bad. Network 10 here streamed ‘Homeland’ 15 mins after it aired in the US to try and quench the thirst for instantaneous viewing. Devices like Apple TV, Google Chromecast, Roku plug into your TV and give you content- no traditional “TV channel” required, and we all know the growing trend for watching on mobile devices: Ooyala shows 15% of all video streams globally on mobile devices as of Q2 2013 and rapidly rising, YouTube in Australia reports 40% of its views from mobile devices.

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Basic commentary notes on slides

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19 & 20

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‘OTT’: This really varies by market. But we see the likes of Intel and BT buying content for their subscribers. Netflix and Amazon – both with very different business models – creating their own content or doing deals to secure exclusive content. All of these require no traditional “TV channel”. In the US one ISP states that YouTube and Netflix account for 50% of fixed broadband traffic. TV is now the content not the device.

‘Twitter leads’: Twitter recognise that TV is vital to their success, and TV companies know social is vital to them. Twitter has stolen a march on Facebook with 3 products. Facebook has now started sharing ‘social chatter’ data with certain networks but is a long way behind Twitter. {Facebook is trying to catch up by introducing hashtags but the way we use the site is very different to Twitter where it’s all about what is trending}

‘The relationship with programmers’: It’s pretty commonplace having hashtag prompts in TV shows, and there are some nice examples of advertisers already blending Twitter and TV together- see Channel 4 ‘Prometheus’ and Mercedes’ #youdrive- but this is Katy Perry, Twitter, Pepsi and MTV all getting together and giving Twitter users power to choose her next single release and the song that she would play at the awards.

‘How we discover’: This is what digital has always been about- go where your audience is instead of pushing/pulling them to you. This is Gucci store in streetview in Italy, ASOS using rich pins to sell in Pinterest, and who knows what Google Glass will bring to the shopping experience

‘Currency and action’: A nice tactical activation from Special K where social rather than cash is the currency. Nordstrom in the States have started to mark which products are getting most pins to showcase popularity

‘Device interplay’ through to ‘think proximity’: A big challenge will be how we tap into the movement across devices. Mobile is key for direct sales as well as research and the effect it has on the in-store purchase. But, although “showrooming” is a major use of phones, smartphones are used for more than that, and location finding is one key element we should make more of.

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Basic commentary notes on slides

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31 -34

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Basic commentary notes on slides

‘mobile redefines’: Mobile does pose a challenge but brands that embrace the technological interplay can reap major rewards. These are 5 examples where brands have positively embraced change. Some are a little old but highlight the point: Burberry fitted out their flagship London store with RFID triggered screens. The RFID tags were in the clothes and would show details on how the product was made, etc. adding some really nice extra depth and creating a story for the item. Net a Porter is one of many doing pop up virtual stores: just a very cool and easy thing to do that creates nice PR, interest and sales- for me Airwalk’s AR/virtual store is still the gold class. Spaaza is an interesting concept where items have a different price depending on a number of variables including a customer’s loyalty. Lowes created an app to try and take the hassle out of going to a ginormous DIY warehouse: the app would tell you if a product was in stock and exactly where in the store it was. Hointer is a small jeans firm who have no staff in store. You use an app to find out product details, to get new sizes delivered to the changing room and to purchase.

‘what does your brand mean/do rather then say’: This has always been important ever since the internet brought about greater transparency of what brands stand for, and whether or not what they say is what they actually are, but increasingly we are seeing more overt action tied to this. Samsung bridge of Life. A new study shows Aussies support brands that support causes. Tom’s donates 1-for-1 (glasses and shoes) when you shop. Coke small world machines trying to deliver connection and happiness to two nations with a challenging relationship. Starbucks recognise that people love the brand and want to invest in it and have a say, so they allow people to do just that. AMEX have done this in the Sates but are doing it here (in Oz) trying to drive small business shopping

‘Branded utility’: This links directly from the preceding slide. Again, this has been around for quite a while but the iterations are becoming richer, and mobile and wearable devices will continue to drive this on. Some of these are nice tactical examples, but all the same are nice ways of delivering on this idea: Stiegl beer- free public transport ticket to tackle drink driving; IBM – useful outdoor advertising; Nike Fuel band - taking training further; Pedigree in Brussels- posters as guided dog walks; Ikea- visualise furniture in your house; Jaime Oliver Foodtube- live ‘cook-a-long’ .

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36-37

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Image powered communications: Internet trends D11 conference, May 2013, KPCB

http://mashable.com/2013/05/20/youtube-100-hours/

Native advertising: http://www.businessinsider.com.au/the-rise-of-native-advertising-2013-10

Some general pieces on Content marketing http://socialmediatoday.com/feldmancreative/1802651/10-b2b-content-marketing-findings-fixes-bigger-payday

http://raadafyouni.tumblr.com/post/19952759278/30-awesome-content-marketing-examples

http://mashable.com/2013/09/06/vine-brands/

http://b2b-marketing-mentor.softwareadvice.com/b2b-marketers-native-advertising-0813/

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Reference links

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Nimble: http://mashable.com/2013/07/15/real-time-marketing/

http://mashable.com/2013/07/23/royal-baby-real-time-marketing-brands/

TV sets as centre of living room. General info on connected/smart TV growth: http://www.theregister.co.uk/2013/10/17/tv_market_slow_connected_tvs_grow/

http://www.techradar.com/au/news/television/6-best-smart-tv-platforms-in-the-world-today-1120795

http://www.businessinsider.com.au/connected-tvs-transform-the-living-room-2013-10#-1

http://connectedtv.yahoo.com/

http://www.forbes.com/sites/michaelwolf/2013/02/25/3-reasons-87-million-smart-tvs-will-be-sold-in-2013/

Big TVs: http://www.techradar.com/au/news/home-cinema/high-definition/ultra-hd-everything-you-need-to-know-about-4k-tv-1048954

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Reference links

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TV break free from TV: http://www.ft.com/intl/cms/s/0/52cd74ce-0116-11e3-8918-00144feab7de.html#axzz2k0KhdUUA

http://www.smh.com.au/entertainment/tv-and-radio/tablet-internet-streaming-adds-to-normal-tv-hours-report-20131015-2vkan.html

http://www.wired.com/insights/2013/09/the-future-of-television-countless-options-multiple-screens/

OTT http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/10439564/BTs-Champions-League-push-to-boost-fibre-broadband.html

https://www.sandvine.com/pr/2013/11/11/sandvine-report-netflix-and-youtube-account-for-50-of-all-north-american-fixed-network-data.html

http://thenextweb.com/insider/2013/06/19/ooyala-q1-2013-report/

http://www.theguardian.com/media-network/media-network-blog/2013/aug/22/death-linear-tv-ott

http://variety.com/2013/digital/news/intel-has-2-billion-war-chest-for-tv-deals-but-none-secured-yet-1200494321/.

http://variety.com/2013/biz/news/amazon-turning-svod-space-into-a-two-company-race-1200571585/

http://online.wsj.com/news/articles/SB10001424127887324170004578636181260905830

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Reference links

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Relationship between Social and TV: Twitter amplify:

https://blog.twitter.com/2013/twitter-amplify-partnerships-great-content-great-brands-great-engagement

http://www.adnews.com.au/adnews/twitter-cuts-deals-with-tv-companies-ahead-of-australia-amplify-launch

Nielsen Twitter TV ratings:

http://mashable.com/2013/10/07/nielsen-twitter-tv/

http://www.adnews.com.au/adnews/nielsen-gets-the-us-all-a-twitter-with-social-ratings-sets-sights-down-under

TV ad targeting:

1. http://techcrunch.com/2013/07/23/twitter-tv-ad-targeting/

2. https://blog.twitter.com/2013/extend-tv-commercials-on-twitter-premiering-tv-ad-targeting?m=1

3. https://blog.twitter.com/2013/tv-ad-targeting-now-generally-available-lifts-brand-metrics-and-engagement

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Reference links

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http://www.theguardian.com/media/2013/oct/13/with-so-much-television-will-less-become-more

Twitter and NFL: http://nflcommunications.com/2013/09/26/national-football-league-and-twitter-announce-strategic-partnership-to-bring-nfl-content-to-fans-around-the-world/

Twitter and ESPN: http://www.adweek.com/news/technology/espn-re-ups-twitter-amplify-college-football-152117

https://blog.twitter.com/2013/twitter-amplify-partnerships-great-content-great-brands-great-engagement

In OZ: Ten and Southern Cross: http://www.adnews.com.au/adnews/twitter-cuts-deals-with-tv-companies-ahead-of-australia-amplify-launch

Nielsen Twitter TV ratings: http://www.linkedin.com/today/post/article/20131029182119-2967511-coming-soon-to-a-tv-near-you-twitter-ratings

General comment: http://techcrunch.com/2013/10/06/nielsen-preps-its-twitter-tv-report-while-facebook-extends-data-partnership-to-foreign-networks/

Facebook using hashtags + details of their APIs: http://www.theguardian.com/technology/2013/oct/14/facebook-hashtags-twitter-social-tv

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Reference links

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Digital changes how we shop: Google and Gucci streetview: http://www.luxurydaily.com/gucci-takes-consumers-inside-milan-flagship-via-google-maps/

Rich pins: http://business.pinterest.com/rich-pins/

Currency and action redefined:

http://www.brandchannel.com/home/post/2013/03/22/The-Future-of-Retail-Reinventinge28094and-Preserving-the-In-Store-Experience.aspx

http://econsultancy.com/au/blog/63721-how-tesco-de-beers-and-others-use-digital-to-enhance-the-in-store-experience

Mobile devices a vital screen

http://www.thedrum.com/news/2013/02/05/pocket-emporium-how-developments-mobile-commerce-are-revolutionising-retail

http://www.businessinsider.com.au/why-mobile-commerce-is-set-to-explode-2013-5

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Reference links

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Mobile redefines in store http://mashable.com/2012/09/13/burberry-regent-street-store/

Net a porter: http://www.youtube.com/watch?v=dTk_9pmqspE.

http://screenwerk.com/2013/01/18/spaaza-myprice-a-new-response-to-showrooming/

Hointer: http://www.brandchannel.com/home/post/2013/03/22/The-Future-of-Retail-Reinventinge28094and-Preserving-the-In-Store-Experience.aspx

Lowes: http://www.instant.ly/blog/2013/09/3-branded-applications-that-enhance-the-in-store-experience/

Reference links

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What does your brand mean? http://www.marketingmag.com.au/news/brands-with-a-cause-click-with-australians-45081/#.UnxVVXBmh8E

http://mashable.com/2013/11/05/toms-marketplace/

http://www.campaignlive.co.uk/article/1220389/american-express-supports-small-business-saturday-ad-boost

Branded utility http://digitalinnovationtoday.com/40-examples-of-digital-brand-utility/

Some other thoughts 3d printing: http://mashable.com/2013/09/30/yahoo-japan-blind-3d-printer/

Display: http://mashable.com/2013/10/29/display-advertising-cash-in/

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Reference links