Master PowerPoint Template MASTER TEMPLATE & USER GUIDE

Each year at CES we see the latest and greatest innovations in categories like wearables or connected cars.

The next few slides outline ways these new products, interfaces

and technologies are impacting consumer behavior and the expectations they have from all brands.

We also summarize our findings with key

recommendations for marketers.

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AUTOMOTIVE

The quality of the in-car entertainment system interface and power of the integrated connectivity technology are now major drivers of new vehicle sales. Here are some of the CES 2015 automotive trends that will impact how consumers interact with brands:

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01 Smartphones Integrate with Vehicles

02 Auto Manufacturers Unveil New Products and Services

03 Driving Introduces a New Context of Use

SMARTPHONES INTEGRATE WITH VEHICLES

Apple CarPlay and Android Auto enable drivers to plug their smartphone into a car’s USB port, then mirror navigation, music (or other audio), and apps on their in-car display. Drivers can use voice controls or their car’s display to access content, text or call. This could give brands beyond the usual suspects like Yelp or Starbucks the opportunity to add value to customers on the road.

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TREND SNAPSHOT EXAMPLE – HYUNDAI DISPLAY AUDIO INTERFACE

IMPACT ON CONSUMER EXPECTATIONS Consumers may begin to expect smartphone apps to be easily accessible via voice activation while in their car, something many brands should consider when developing their mobile content strategy.

AUTO MANUFACTURERS UNVEIL NEW PRODUCTS & SERVICES

In addition to wireless smartphone integration, many new vehicles have integrated connectivity that is enabling auto manufacturers to offer value-added products or services. This year BMW is showcasing a smart watch called the Remote Valet Parking Assistant, which self-parks their i3 smart vehicle. In the last several years, they have also introduced several digital services like ParkNow, an app for finding and reserving parking spaces. It is likely these services will evolve to be fully integrated with BMW vehicles and products.

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TREND SNAPSHOT EXAMPLE – BMW SMARTWATCH

IMPACT ON CONSUMER EXPECTATIONS The emergence of the Internet of Things will drive the creation of an ecosystem of digital content, services and products for all kinds of new industries. As these ecosystems develop, consumers may expect the category leaders to offer value added services they had previously not considered.

DRIVING INTRODUCES A NEW CONTEXT OF USE

In-car experiences are evolving quickly. Built-in dashboards are more immersive, new products like heads-up displays provide information that drivers can view on their windshield, and voice controls combined with phone integration are enabling drivers to access app content from their smartphones. People are also interacting with their vehicle remotely by doing things like unlocking the vehicle, setting climate control or monitoring maintenance data from their computer.

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TREND SNAPSHOT EXAMPLE – SENSEHUD HEADS UP DISPLAY

IMPACT ON CONSUMER EXPECTATIONS This trend is another example of consumers becoming accustomed to having the option to integrate devices, access data and uncover creative ways to improve their experience (like a fingerprint button that unlocks their vehicle). These expectations carry over to any brand or industry.

WEARABLES

The wearables category evolved rapidly in 2014, but 2015 will be a critical year for mainstream adoption as Apple enters the market and the landscape matures. Here are some major trends observed at CES 2015:

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01 Wearable Categories Merge

02 Virtual/Augmented Reality Gets More Mainstream

WEARABLE CATEGORIES MERGE

As brands fight to show consumers value, many products like fitness trackers that started with one functionality (i.e., tracking heart rate) are integrating new features. This is in response to advanced functionality and integrated fitness tracking from a slew of smart watches released in 2014. One new example from CES 2015 is the Alcatel OneTouch Watch, which leverages fitness functionality like a heart monitor and an accelerometer, alongside other features like a gyroscope, altimeter, NFC and compass.

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TREND SNAPSHOT EXAMPLE – ALCATEL ONETOUCH WATCH

IMPACT ON CONSUMER EXPECTATIONS Smart watches, fitness trackers and other devices will not only integrate functionality, but will bring together personal health and fitness data with traditional smartphone content and functionality. As these two things merge, some consumers may be willing to share new types of data, while others may have privacy concerns.

VIRTUAL/AUGMENTED REALITY GETS MORE MAINSTREAM

Big players like Facebook’s Oculus Rift, Samsung and Sony have announced or launched virtual reality products. In 2015 these will start to become more mainstream as available content increases, use cases move beyond just video games, and entry-level price points drop. One example is Sony’s SmartEyeglass, which can be clipped onto any pair of glasses or sunglasses and used like Google Glass.

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TREND SNAPSHOT EXAMPLE – SONY SMARTEYEGLASS ATTACHMENT

IMPACT ON CONSUMER EXPECTATIONS More than anything, virtual reality and augmented reality will fuel consumers’ desire for immersive experiences and for real-time, contextual information. Both of these have the potential to impact what consumers expect from a smartphone or web-based experience.

HOME AUTOMATION

In 2015, the home automation category has made a big jump from siloed experiences to a more fluid and integrated ecosystem with greater implications for marketers. Interesting trends to be aware of are:

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01 The Home Is Integrating with Everything Else

02 Brands Are Finding Creative Ways to Engage at Home

03 Consumers Simultaneously Gain and Lose Control

THE HOME IS INTEGRATING WITH EVERYTHING ELSE

As expected, there are a large number of companies showcasing product concepts that leverage Apple’s HomeKit or Google’s Nest to control the home via an app or voice control. For example, HomeKit partner iDevice unveiled their “Switch” connected plug, which allows users to say a command to turn any device on or off. Because HomeKit works with iOS, third-party solutions are now easily compatible with users’ smartphones or other devices. This has opened up an ecosystem that is relevant to many industries (i.e., grocers who want to connect to refrigerators).

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TREND SNAPSHOT EXAMPLE – IDEVICE SWITCH

IMPACT ON CONSUMER EXPECTATIONS As the number of third-party app integrations increases inside the home environment, consumers may start identifying more interesting use cases that either existing brands or new players will have to meet.

BRANDS ARE FINDING CREATIVE WAYS TO ENGAGE AT HOME

As the home automation market matures, consumers can do a lot more than just adjust the temperature with a smartphone. For example, in 2014 SyFy launched their Sync app, which connects to Hue lighting from Philips and translates audio cues into web-enabled lighting commands. The result is that the bulbs change colors with the on-screen action. Other brands in the home entertainment and home repair sectors are unveiling unique collaborations at CES 2015.

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TREND SNAPSHOT EXAMPLE – SYFY SYNC WITH HUE

IMPACT ON CONSUMER EXPECTATIONS High-profile collaborations that are less technical and more creative generate buzz and push the market towards maturity. The definition of home automation may morph from an early adopter, fringe category to a mainstream concept consumers are comfortable with.

CONSUMERS SIMULTANEOUSLY GAIN AND LOSE CONTROL

Automation should reduce steps, add convenience or simplify mundane tasks. As smart devices come to life and automate decision making for consumers, there is a risk of “outsmarting” the user and doing things they actually do not want to do. HomeChat from LG enables users to remotely get pictures of what is in their fridge as they are out shopping, which still keeps the user in control. Other manufacturers are working on devices that build the grocery list or buy for the customer. As the concept of automation in the home progresses, consumers may rely on the products themselves to make choices for them.

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TREND SNAPSHOT EXAMPLE – LG HOMECHAT APPLIANCE TEXTING

IMPACT ON CONSUMER EXPECTATIONS As products get smarter, consumers are becoming programmers of our lives by downloading an app, syncing it with our appliances (or alarm, heater, etc.) and managing tasks. Consumers may become accustomed to this level of engagement and automation elsewhere, influencing which tasks we choose to stay involved with and which ones we don’t.

RECOMMENDATIONS FOR MARKETERS

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Now that Google and Apple have platforms in place to bring content to cars, wearables and home environments, all brands should be at least asking themselves how these contexts might impact their content, mobile, design or user-experience strategies.

PLAN FOR NEW USER CONTEXT

As consumers get comfortable with emerging categories of smart devices, and as device adoption increases, consumers will expect to engage with brands in the ways that make the most sense to them. Brands that have no strategy will be like ones who waited to think about mobile until 30% of their website traffic was coming from smartphones. These brands risk either losing market share to existing competitors or opening up the ecosystem to a new service provider that identifies and meets new consumer needs that emerge in smart environments. Don’t be afraid to get creative and innovate early.

DON’T LET OTHER BRANDS PUT A WEDGE BETWEEN YOU AND YOUR CUSTOMERS

To get smart about understanding which of these new channels really represent an opportunity for your brand, and then to fully leverage the data, you have to be comfortable with things like cross-platform measurement, attribution, audience segmentation, customer data management and consumer privacy.

GIVE DATA AND PRIVACY A SERIOUS SEAT AT THE TABLE

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About Rosetta Rosetta is an agency focused on Customer Engagement. We connect rich data, engaging experiences and robust technologies to create meaningful

customer relationships that drive business impact.

If you have questions about these trends or want to discuss what they might mean for your own business, drop us a note at Rosetta.com/contact.

Follow us at @RosettaMktg or our blog, Currents.Rosetta.com

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