CES 2016: 8 Trends

The Presentation inside:

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CES / 2016 EIGHT TRENDS / 2016

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CES 2016 The pace of change in advertising and consumer behavior continues to be frantic and to accelerate, so our annual trip to CES in Las Vegas continues to remind us how, in relative terms, hardware changes more slowly than both software and our expectations. In fact, CES in 2016 didn’t show a revolution in electronics and consumer products, but more of an evolution. The products were similar yet faster, thinner, cheaper and above all else, more connected. This moment feels like the early stages of a new era, a time when all products are becoming cloud connected, touch screens are everywhere, and all media is digital. Yet it’s not quite the Internet of things — it’s the interim of things. We don’t yet have a complete smart home, we have sophisticated homes that sometimes don’t quite work. We have 3D printers without totally compelling use cases, and robotic body parts that don’t quite make a full humanoid. The companies succeeding are those that are innovating and collaborating to solve real consumer needs, while staying true to a clear brand purpose. From artificial intelligence and cognitive computing, to drone technologies, virtual reality and biometric sensing, to 8k video and 360 surround sound, there are tremendous opportunities on the horizon. Please read on to view the eight themes that make up this moment in time.

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AUTONOMOUS MOBILITY Self-driving, remote controlled Automotive technology is undergoing faster, more profound changes than ever. In 2016, CES shone a light into that radically different future. Electrical propulsion is transforming what vehicles look like, from scooters to hoverboards, lighter, faster cars to motorized skates. But the big change comes from how devices are being controlled and accessed. It’s the autonomous layer being added to mobility devices, and the new business models evolving that are the really compelling changes. We have self-driving cars becoming a tantalizingly close reality, while Tesla already adds augmented driving and self-parking functions to older models, with a software update. We can also see how selfdriving cars will soon talk to each other and collaborate with cities, and how smart cars will work together to find the best navigational route. In this world will we buy a vehicle or access to one? Faraday thinks the future lies in cars as a subscription service rather like data plans. Perhaps the future of car ownership is access and that we will buy autonomous mobility, not vehicles. MARKETER IMPLICATIONS: The connected car could be the next media frontier. Passengers in self-driving vehicles will be engaging with content in new ways, from using location-based services, to shopping through GPS enabled commerce, or watching TV and playing video games - all of these being targeted opportunities for brand engagement. Denso Concept Dashboard /01

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AUTONOMOUS MOBILITY /01 Ehang Passenger Drone Toyota FCV Plus Faraday electric car

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COLLABORATIVE SYSTEMS /02 As software eats the world, it’s becoming clear that diverse groups of people and companies can create more consumer value through Partnerships and interoperability partnerships. Hardware makers need to work with software companies, new platforms need developer ecosystems, and semiconductor companies need to partner with manufactueres. When we combine the pressure of a tough trading environment and the threats of startups to legacy companies, we’re seeing large, old and proud companies adopt a more open approach to product design and innovation. Ford is now working with drone maker DJI, and also opening up their in-car OS to developers such as Amazon. GM has announced a partnership with Lyft to create a fleet of driverless cars. IBM Watson has partnered with Under Armour to create a next generation fitness app. Bosch and Philips are developing smart home lighting. LG is working with content providers like Netflix to expand viewership. We are seeing more companies working together across widely different marketplaces more than ever before. MARKETER IMPLICATIONS: Brands should think about the broader ecosystem in which their consumers live and engage, and formulate partnerships that are mutually beneficial for all. You need to partner to win. Amazon+Ford Partnership

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COLLABORATIVE SYSTEMS /02 Microsoft+Volvo Netflix+LG New Balance +Intel Under Armour + HTC + IBM Watson Under Armour Health Box (IMB Watson +HTC)

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COGNITIVE ROBOTICS Not just smarter, but more human /03 Robots have been multiplying for many years now, undertaking roles in car production, undersea welding, typically behind the scenes in unglamorous roles. They often looked less like robots and more like fabrication devices. But it’s starting to change; we’re allowing devices to get closer to us. What started with machines for outsourcing simple domestic chores and devices for kids to play with, is turning into an industry of more anthropomorphic machines. This humanity isn't only in form, it’s in how machines process data, how they interact through voice recognition, and above all else, how they self-learn to improve. We have IBM Watson powered ecosystem partners like Under Armour and SoftBank. We see full size size humanoid robots that can understand speech and respond. We’re seeing improved motors, improved sensors, and improved cognitive capabilities smash together to make robots come from the background to the foreground. MARKETER IMPLICATIONS:  Cognitive computing is ushering in a new era of communications in which brands will be able to better anticipate and respond to consumers’ needs. As robotics become more integral in our everyday lives, brands have the opportunity to rethink consumer and product engagement. Pepper from SoftBank + IBM Watson

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COGNITIVE ROBOTICS /03 Ninebot Segway Buddy, from Blue Frog JIBO, AI Robot

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INFINITE SCREENS Digital and projected interfaces everywhere /04 From screens on our wrists and the fridge doors in our kitchens, to dynamic screens in retail, to Smart TV’s on walls, everything is becoming a cloud connected screen for digital media display. We have connected photo frames, seat back screens on cars, and VR / AR head mounted displays a mere inches from our eyes. Our world will soon become a series of bendable screens, transparent surfaces, paper-thin displays, projected images and holograms.  These screens are increasingly thin, cheap, haptic, modular, efficient, and with better resolution. MARKETER MPLICATIONS: We are growing the media pie and in more places than we ever expected. Everything has become a media moment, and every space, whether tangible or intangible, has become a screen for digital projection. As all screens become digital, and media buying and placement become easier and automated, we expect countless opportunities in how ads can be created, distributed and personalized. LG flexible screen

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INFINITE SCREENS /04 LG flexible display Family Hub Holographics(Samsung + Mastercard) Kino mo: Refrigerator Intel: Projection Mapping Kino Mo: Holograms Intel: Imaging Projection, Source Getty

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MIXED REALITY Virtual & Augmented, Immersive Experiences A lot of pre-event hype that did not disappoint. From 3 exhibitors last year to 40 this year. Oculus Rift stole the show at CES in 2015, but in 2016 we saw many others step forward and shine. HTC Vive proved it’s a viable challenger to Oculus Rift in the gaming and CGI space. So did Sony PlayStation with Morpheus. Immersive gaming for hours on end proved it’s about to take a quantum leap forward in Q2 2016, when general release of head mounted devices starts. Game on. As long as you have deep pockets, a powerful computer and a lot of home time. And that is why the real VR winner at CES this year was, in fact, mobile VR, championed by Samsung Gear VR, which is already in the marketplace. Samsung entertained users with 360 video. With a VR platform already stocked with more than 300 pieces of brilliant content, mobile VR is affordable, portable and a lightweight heavy hitter. Augmented reality showed their potential. The future will see a blend of both AR and VR headsets. But compared to mobile and desktop VR, the quality and content of AR are still in beta. MARKETER IMPLICATIONS: Although some presume VR / AR is for the gaming industry, there is massive potential for industries such as travel, sports, entertainment, medicine, education, journalism and fashion. Whether it be through road show events, in-home use or in-store retail, we will begin to see new opportunities in product placement and/or new formats for advertising. Sony Playstation VR /05

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ALTERNATE REALITIES /05 Intel 3D Facial Recognition HTC Vive Samsung Gear VR Avegant Glyph Daqri

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DIAGNOSTIC WEARABLES Baby, health/fitness & beauty tech /06 Wearables as screens are missing the point; they are more about inputs than outputs, and we’re finally letting them get closer to us by giving them access to our core body metrics. From smart clothing to smart watches, to baby monitors and health kits, we’re surrounding ourselves with some of the most personal data we’ve ever known. Times are changing. People are seeing a value exchange, and the population seems more comfortable with sharing heart-rates, stress levels and even body scan statistics. The data collected is now forming a truly accurate and comprehensive real-time human dashboard. With developments in both data set handling, statistical analysis and personalized medicine, we’re on the edge of a move towards the most advanced healthcare we’ve ever known. How long before a doctor’s visit is merely handing over your phone? MARKETER IMPLICATIONS: We need to recognize that it’s not just about the vast amount of big data that can be collected, but the actionable insights brands can provide from gathering this more intimate, personal data. Targeting can now get granular, content more personalized and products more relevant for consumers. My UV patch by L’oreal

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DIAGNOSTIC WEARABLES /06 Kinsa Baby thermometer Owlet Care Baby Sock HairMax Laser Hair Growth Zhor Tech Smart Shoe OMBRA

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RESPONSIVE HOMES Secured networks and connected devices From touch screen refrigerators to self-folding laundry machines, multisensory alarm clocks and cloud-based home security systems, the smart /07 home is becoming a gateway to the everyday life and routines of consumers. This year, high-tech home security systems were in abundance, a reflection of the increasing importance of home networks, coupled with increased concern around cyber crime. Burglars today don’t need to be physically present to break-in; they can use Wi-Fi to open doors, steal money, access private information and create overall mayhem. For the smart home to break into the mainstream, people need to better understand the benefits of these new technologies. Common standards and protocols are needed to make more products and services compatible. Amazon has made big headway, especially with Alexa, the cloud-based voice service that powers Amazon Echo. They launched a fund that provides up to $100 million in investments to fuel voice technology innovation from developers, manufacturers and startups. In fact, many of the smart home products featured at CES integrated with Amazon’s Echo. Although the smart home may not yet be a reality for many consumers, we expect over the next few years much of this technology will begin inhabiting many homes as it becomes easier to understand and use. MARKETER IMPLICATIONS: With brands living alongside consumers, trust will be of paramount concern. Privacy, compatibility and seamless experiences will allow brands to communicate with consumers in newly available environments that exist in familiar places. Prizm: AI music player

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RESPONSIVE HOMES /07 Vivint + Amazon Echo ALLie Home Sensorwake Family Hub Refrigerator (Samsung + Mastercard)

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RETRO TECH The Old is New, Again For every action there is an equal and opposite reaction, and for a /08 generation of ultra connected, always on, always digital, always converged people, there is a real delight to be disconnected in a range of nostalgic devices that hark back to simpler times. Forget constant upgrades and obsolesce; we’re seeing physical book sales thrive, Adele’s album take off on CD, podcasts are back and vinyl record sales rocket. For all these new shared cultural moments, new products are emerging and hardware is being developed to support the new needs of those who want simplicity, authenticity and purity. From Sony’s new record player, to the Kodak Super 8 Camera, to Star Wars tech gadgetry, we’re seeing the leading edge become retrospective. Celebrities including Rihanna and Vogue editor Anna Wintour have been photographed using their flip phones in the past few months. That’s it, I’m putting my MiniDisc player on eBay right now. MARKETER IMPLICATIONS: Nostalgia is a real opportunity to tap into. How can we make products and services that are time tested, simple and emotional? How can we re-energize classics? How can we reinvigorate the old? Even traditional media could face a strong come back, or at least not die as fast as many predict. Kodak Super 8

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RETRO TECH /08 Sony Turntable PS-HX500 Sphero Force Band

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CES / 2016 MORE INFO: RORI DUBOFF / [email protected] RORI DUBOFF / [email protected] JEZ JOWETT / [email protected] JEZ JOWETT / [email protected] TOM GOODWIN / [email protected] TOM GOODWIN / [email protected]

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