Achieving Relevance in a Digital Landscape

Solutions for the connected world

Talk by: Emma Crowe – Chief of Client Strategy

Somo accelerates mobile transformation through rapid innovation to create

products and experiences your customers and employees will love.

Transforming Live

Transforming Engagement

Transforming Content

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Everything is mobile Building Relevance in a Digital World


Everything is mobile

61%

39%

30%

35%

40%

45%

50%

55%

60%

65%

2012 2013 2014 2015 2016 2017 2018

Mobile

Desktop

Source: eMarketer, “Average time spent per day with major media by US adults 2012-2018, April 2016

More digital time is being spent with mobile

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% S

hare

of d

igita

l me

dia

tim

e s

pe

nt

Source: Excelacom, March 2016 Source: BGR, Feb 2016

Consumer uptake is huge

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527,760 Photos shared

51,000 Apps download

$203,596 In sales

2.4million Search queries

972,222 Swipes

2.78million Video views

20.8million messages

4.1million Users posts liked

1.7million Users photos liked

Every minute of the day… 150million

emails sent

1,389 Uber rides

This creates massive business disruption

9

“The auto industry will change more in the next 5 years than it has in the last 50.”

Mary Barra, CEO of General Motors


Mobile is a behaviour not a channel

Retail models are evolving

Barriers for Digitisation

Enjoy

Maintain Resolve Renew

Consider Explore Select Purchase

Take Ownership

1.Changing points of customer engagement


Mobile has created micro moments

Brand Engagement

Research

Proactive Engagement Payment

Service

Advocacy 37% of people claim to now be more influenced by expert reviews compared to the past

66% of smartphone users turn to their smartphones to learn more about something they saw in a TV commercial.

Of online consumers, 69% agree that the quality, timing, or relevance of a company's message influences their perception of a brand.

Of smartphone users, 91% look up information on their smartphones while in the middle of a task.

More than half (51%) of smartphone users have discovered a new company or product when conducting a search on their smartphones.

62 % of millennials respond to marketing offers sent to their mobile devices

Source Google, 2015

Alarm clockhas remote programs and customer tones turns on coffee maker

Electric toothbrush automatically records brush heads and shares brushing habits with your dentist

Ovenallows settings to be changed from phone

Mobile phonesecurely performs verification and identification for payments And acts as a a remote control to our lives

Building security cameras interact with facial

recognition

HVCcontrols temperature and lights

for maximum efficiency

Home

Exercise equipment recognises individual users and tracks workout schedules

Television Enables immediate order of products see on commercials

Microwave automatically sets cook cycle with RFID recognition

Mobile is becoming the remote control to our lives

Commute Commute Home Work

10


Changing points of purchase

X Factor – Shazam Takeover with live ingestion Using innovative technology to amplify ATL marketing activity

Using a brand new technology labelled “live ingestion” we were able to allow users to Shazam the live X-Factor

shows throughout November & December 2015.

Users would Shazam live songs during the X-Factor show and be redirected to a bespoke landing page from Very

as the official fashion partner that would give them access to additional content, special offers and allow

them to download the new apps.

Contextual Location/Weather/Product based Rich Media Adding contextual relevancy is key to improve performance and brand recall

Based on their location around the country, users will be served a bespoke ad tailored to one of five of our client’s biggest target cities

(Manchester, London, Birmingham, Liverpool and Newcastle)

Once the location has been defined and the right background loaded (Through the device’s long/lat coordinates), we look up the weather around the city through a weather API and

depending on four choices of weather, users will be served a relevant a selection of five different products through XML feeds.

Sunny Windy Rainy Foggy


2. Threat of Commoditisation

2. Threat of Commoditisation


June 16 20 Confidential and copyright of Somo Global Ltd. Reconfigure business models

Use digital to enhance traditional business models

Apple’s WWDC 2016 Apple’s WWDC 2016 Apple’s WWDC 2016 Apple’s WWDC 2016

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Global Ltd.

How to evolve your business model

Transform existing models digitally

Invent entirely new business models or different engagement models


Ownership has a new meaning

Build new models of ownership


Consumers move to access over ownership

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Evolving automotive ownership and usage models Disruptions in purchase and access models in Automotive

Multi-car sub Auto Vivendi

Shared ownership Orto

Taxi Uber

Rentals BMW Drive Now

Car sharing Audi Unite

Car pool Blabla Car

What happens next?

3. Broadening Competitor Landscape

The Amazon Effect


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Changing Competitor landscape

AI Smart Connected

Products Speed of Disruption

Impact of the Fourth revolution

Water and steam power to mechanise production

Electric power to create mass production

Electronics and information technology to automate production (simple digitisation)


Fusion of technologies that is blurring the lines between the physical, digital, and biological spheres. Innovation based on combination technologies

Understand your changing environment, challenge the assumptions of your

operating teams, and relentlessly and continuously innovate


4. High Customer Expectation

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New generations = new attitudes to brand relationships

Ethics and values driven

Mobile first progressive tech users

Retail experience

hunters


Differentiate through experiences


Differentiated

Competitive position

Undifferentiated

Market Pricing Premium

In-store tech brings context and personalisation


Beacons provide product

location and wayfinding assistance

Welcome message

triggered on customer

approach to shop

Screen provides

personalised recommend

ations

NFC on product

gives enhanced

product information

Items paid for as

customer leaves using frictionless

tech

Inventory tracked

through RFID tags; shelves monitor stock

levels on shelves

Heating and lighting auto-

controlled through smart

thermostat and motion

sensors

AR scannable

mannequins to shop the

look Customer can call for context rich assistance

using phone

Smart price tags can be changed in real time or to specific

user

Cameras monitor

crowding points and

most browsed

items


Home from home: John Lewis smart home experience


Audi e-tron pop-up store – interactive and immersive auto experiences

•  Supporting the launch of the new hybrid car – the

A3 Sportback e-tron

•  Experiential retail experience at Westfield Stratford

•  Experience incorporated 5 digital products inc.

Virtual A3 e-tron, 3D object recognition and AR Explorer Application.


Coca-cola ‘Share your voice’

Video 2

June 16 39 Confidential and copyright of Somo Global Ltd. 5. Changing UI

In 2015, 65 percent of smartphone owners surveyed were using voice assistants.

One in five searches on

Android devices were voice-based in May 2016.

Voice Assistance

•  Search Query response

•  Presented in chat interface

•  Natural Language Processing

•  Often Voice control

•  Often AI powered

•  Multiple presentation layers

•  Particular Messaging Apps

Conversational UI?


Messaging is the new social


Conversational UI API today

Chatbots in retail


CUI wider than messaging – Quartz app

45 Zero UI is near future

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What happens next?

6. Distribution Models Changing

Voice Search Social Context


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Distribution Models have changed

48 Source: http://blog.naytev.com/what-networks-does-buzzfeed-use/

What happens next?

7. Velocity of innovation

June 16 50 Confidential and copyright of Somo Global Ltd. Virtual Reality becomes reality

Differing levels of virtual reality today


360 Video

YouTube, Facebook

360 Live streaming

Full VR systems

Require PC/console

Mobile operated VR headsets

Require PC/console

Virtual reality success


NYT VR 1.3M Google Cardboard distributed

Samsung Gear VR 1M MAU, 250+ Apps

Mixed reality tomorrow


Magic Leap Mixed reality Microsoft Hololens mixed reality

What happens next?

6. Velocity of new innovation 8. The Rise of Ecosystems


Smart Homes and Cities

Smart homes


Utilities

Heating Energy Lighting

Security

Locks Cameras

Alarms Presence sensors

Automation

Appliances

Entertainment

Music Video Radio

Output of connected devices = new data


Smart city


June 16 59 Confidential and copyright of Somo Global Ltd. Connected Car

What happens next?

iOS 10

Messages

-  Open APIs (Create full experiences within app)

-  Full screen animations

-  Sticker packs

Siri

-  SiriKit (Pull the power of Siri to different extensions)

-  Example: Booking an Uber via Siri

Notifications

-  New framework -  Build richer, more

meaningful notifications

-  More than just notifications

Widgets

-  Total overhaul -  Deeper insight into

apps

-  Perfect for information based apps.


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iOS 10

Search

-  Ads in App store -  Review time speed

up

-  Subscriptions models to all categories

5 key takeouts:

Technology has enabled the consumer to control the marketplace

Constant connectivity brings higher consumer expectations

People buy experiences not products


The only constant is change, and it’s accelerating

New payment models create a threat and an opportunity to revenue

@somoglobal

somoglobal.com