Dentsu Aegis
Quarterly
On Disruptive Marketing Trends
Dentsu Aegis
Quarterly
On Disruptive Marketing Trends
Emergent Creativity
It is connected to what people care about, what they are
doing and what they are sharing – not what a mere focus
group says is important, real or true. It may not always
take the form of storytelling, but that’s just another sign
that the creativity in our industry is expanding in a variety
of interesting directions. The Cannes Lions awards earlier
this year are a showcase for emerging creativity. It’s in data
that new forms of creativity will emerge.
Data is the new currency. All of the services we use – from
Uber to Netflix to Nike+ – collect personal data about us.
This data was previously unavailable prior to the connected
age. Then there is behavioural data, which streams from
every click, every search and every like or share – again,
unavailable in the pre-connected age. Finally, there is
cultural data, which is easily harnessed by listening to the
conversations playing out around us every minute and
every day in the social channels used by billions of people
(you guessed it, this data was also unavailable even just a
few years ago). Each of these three types of data can potentially yield creative ideas that can explode into industries.
We are all living through one of the most profound technological transformations in human history. As an industry,
we’re still figuring what to do amid all of the disruption
and opportunity. One thing is for sure, the connected age
will yield a new generation of men and women (thankfully)
just as mad – and just as creative as Mad Men, but quite
possibly more effective.
Lars Bo Jeppesen
CEO Nordics, Central & Eastern Europe
Dentsu Aegis Network
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Contents
Publisher: Lars Bo Jeppesen, CEO Nordics,
Text: Nils Ola Bark, Managing Director, Isobar Norway
Central & Eastern Europe Dentsu Aegis Network
Christian Lindemann, Digital Director, Vizeum Norway
Nils Andersson Wimby, Agency Director, Isobar Sweden
Co - Publisher: Paal Fure, CEO, Dentsu Aegis Network Norway & Nordic
Strategist & Editor: Simen Hanssen, Strategic Director, Vizeum Norway
Design/layout: Taran Steen, Designer, Isobar Norway
Project Manager: Siv Natalia Lima, Isobar Norway
Cover image: http://gratisography.com/
Emergent creativity ..........................................................................
3
The Trends ......................................................................................
6
The current digital megatrends ................................................
8
Real time marketing - empowered by context ...........................
10
Understanding the world of multi-screen ..................................
12
Multi-tasking and numbers ......................................................
14
The digital neighbor - consumer collaboration and
social mechanics ....................................................................
16
Wearables - co-creation of value 2.0 .......................................
18
How big is “big data”, and how do we deal with it?....................
22
Mobilization of payment ...........................................................
24
The Industries .................................................................................
26
The retail industry ....................................................................
28
The travel industry ...................................................................
30
The car industry ......................................................................
32
The finance industry ................................................................
34
The health and wellness industry .............................................
Researching online prior to purchase .......................................
36
The Internal Changes .......................................................................
40
The disruptive marketeer and organization ................................
42
38
© 2015
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Watch all cases from this magazine
www.danq.io
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The Trends
The rate of change in our business is growing faster and faster.
The changes may seem chaotic and intangible, but there are
clear digital marketing trends that can be identified and you,
as a marketeer, need to understand them.
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9
The Current Digital
Megatrends
Mobile
Payment
Context
From micro to mega
Although there is the constant development of micro trends
and new ways of working within marketing, we still see
that the bigger picture is dominated by some megatrends.
These are the aggregated trends that encompass the
different phenomena that are presented to you by your
suppliers, or you read about in various newsletters every
week. Some of these trends are still in their early stages,
but will transform the way we relate to marketing. Other
trends have already gained solid ground over the last
years, but are still crucial and undergoing rapid development.
It affects us all
These are trends that you, as a modern marketeer, need
to get a grip on and mold into your way of work.
Depending on your industry, the competitive state and
your target groups, you may not need to act upon all of
these trends. But to gain a competitive advantage, you
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probably need to combine elements from several of them.
It will affect the way the marketing department works,
both internally, towards other parts of the value chain
and with external partners. To operate within these
trends, new alliances need to be created. As the walls
between market communications, product and service
development, IT infrastructure and the legal department
crumble, working in traditional silos is no longer an
option. Holding on to the past will prevent you from
creating valuable and sustainable growth.
MultiScreening
Big Data
Wearables
Social
Mechanics
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Real Time Marketing
– Empowered By Context
Taking data to an actionable level
Marketeers have always dreamed of providing the right
message at the right time to the right people. Not only does
this increase the impact of the message, it also reduces waste
in advertisement expense and reduces irrelevant clutter
for the consumer. The rise of data driven advertising has
taken us a step towards this scenario, but with the mass
adoption of smart phones and the rise of sensors and widespread Wi-Fi, the scene is set for taking this to the next
level. It will impact advertising by being more relevant,
enhance in-store experiences and provide new ways of
purchasing products. The components that fuel real time
marketing are data on elements like time of day, personal
data and contextual 3rd party data, including geographical location data. The mobile phone and wearables are
the hubs that connect all the pieces, for a better and more
relevant consumer experience. With the introduction of
programmatic buying in offline channels, there is also the
rise of real time marketing opportunities in channels such
as TV and outdoor advertisement, but with clear limit-
“Not only can we deliver the right
message to the right person at the right
time, but also in the right place.”
ations compared to personally tailored possibilities within
smart mobile units. Sensors such as beacons are taking
contextual marketing to a new level, but the barrier in
most markets is scaling. The technology still has a limited
distribution, and is dependent on consumer driven permission or interaction through Bluetooth to make it work.
The predictable and the unpredictable
There are two forms of contextual data – predictable and
unpredictable. Predictable, such as location, holidays,
birthdays, flights and high dwell-time placements, can be
utilized in media in quite an obvious way for creating relevant messaging. Unpredictable data are weather, cancellations, delays, product stock and social sentiment. While we
cannot predict when they will happen, we can plan with
them in mind so that we understand what the impact of
that change will be on our media and messaging.
Through technology, we can now use that insight directly
in developing communications solutions.
The components of real time marketing
“By 2017, 7 of the 10 largest
retailers will use indoor positioning
systems, combined with mobile apps,
to aid shoppers in quickly locating
departments and products.”
Personal Data
Age, sex, CRM
data, interests
Behavioural Data
Buying habits, pages
visited, search data
Location Data
Sensors, GPS, WiFi
Time
Part of day,
exact time
Contextual
3rd party data
Weather, traffic, etc.
– Gartner “Top 10 strategic predictions”
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13
Understanding The
World Of Multi-Screen
Mobile is now the 1st screen
On a global level, 6 out of 10 consumers have a smart phone
and in many markets, the number is even higher. The activities and time we spend using our phones have increased
– we access more information, watch more entertainment,
transfer money and purchase products.
Actually, 87% of smartphone users state that they have
their smartphone at their side day and night, and 30%
admit getting anxious when they don’t have their phone
with them. It is a personal device, and in an increasing
number of situations, the preferred device.
More connected devices
enables more multi-tasking
Consuming digital content in a nonlinear manner, using
whatever screen is most convenient at any given time, is
now commonplace. No single device is enough for today’s
digital consumer. Audiences are accustomed to switching
throughout the day from PC to mobile to tablet to TV
– not to mention multitasking. The simultaneous use of
devices has become essential to content consumption.
The content viewed on one device can trigger specific
behaviour on another. Hence, it is important to not limit
conversion goals and call-to-actions, especially to only one
device where they were initially displayed.
“90% of all media interactions
today are on some kind of a screen”
– Think with Google, 2014
Multi-screen consumer behaviour
Interactions with screens are becoming even more widespread and fragmented with the emergence of wearables,
including smart watches, Augmented Reality, connected
cars, connected TV and connected home devices.
Microsoft HoloLens, a see-through holographic computer
expected to be released in 2016, potentially transforms
every surface into a screen by combining physical real-life elements with virtual elements. In considering the
ongoing digital transformation of traditional out of home
as well as in-store screens adding the mix, it evidently becomes critical for marketeers to understand this cross-plat
form consumer behaviour. This requires a shift in thinking and focus – away from channels to audiences, and
reaching them on whatever device or screen they’re using.
It’s not just about being where your audience is, it’s also
about being useful and quick. You have to be relevant to the
consumers’ needs at the moment and connect people to the
answers they are looking for. Being quick refers to the fact
that consumers want to know, go and buy swiftly. Hence,
your mobile experience has to be fast and frictionless.
These touch points are critical in today’s consumer journey. If you can help your audience in their decision-making,
you can also influence how that journey ends.
Watch Microsoft HoloLens
danq.io/hololens
Source: The connected consumer survey, Google 2015. Micro-Moments: Your Guide to Winning the Shift to Mobile, Google 2015.
The New Multi-screen world study, Google 2014
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Multi-tasking & number
of connected devices
Connected devices
pr. person
57%
Use devices to go online
while watching tv
38% 36% 54%
computer
tablet
smart phone
Devices people go online with while watching TV
3.3
Connected devices
pr. person
64%
Use devices to go online
while watching tv
36% 36% 63%
computer
tablet
smart phone
Devices people go online with while watching TV
3.4
Connected devices
pr. person
58%
Use devices to go online
while watching tv
27% 26% 62%
computer
tablet
smart phone
Devices people go online with while watching TV
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7 out
of 10
3.1
Connected devices
pr. person
67%
Use devices to go online
while watching tv
38% 35% 46%
computer
Watching video
on mobile
7 out
of 10
Watching video
on mobile
tablet
smart phone
Devices people go online with while watching TV
2.6
Connected devices
pr. person
53%
Use devices to go online
while watching tv
38% 32% 53%
computer
tablet
smart phone
Devices people go online with while watching TV
5 out
of 10
Watching video
on mobile
5 out
of 10
Watching video
on mobile
6 out
of 10
Watching video
on mobile
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Bla bla bla, and
then bla bla bla...
The Digital Neighbor –
Consumer Collaboration
And Social Mechanics
Seeking more advice online
Humans are social beings by nature. We have always used
our relationships to get information, increase bargaining
power, and strengthen status. In the digital era, many of
these activities have moved to the web.
In earlier times, when you needed a new car you would
walk over to the picket fence and ask the neighbor if he was
happy with his. Nowadays you can find even more relevant
advice from your “digital neighbor” – someone in a forum
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or rating site with similar interests. If you need a 7-seater
with room for a pram and a decent in-car entertainment
system, chances are you can find someone online with the
same set of needs that has already posted their ideas or
questions on the topic.
Building a digital reputation
The ancient function of gossiping also has its digital marketing application: the desire to know something interesting
before others. The ability to obtain unique information
finds various uses; Groupon and other discount services
are driven by the desire to find a better deal. Being the first
with the latest is also the driver behind sharing and viral
campaigning – finding the nicest images and products is
what drives all of Pinterest.
Another interesting example related to this is TripAdvisor,
a service where the value comes from user reviews and
images. So how are customers rewarded for generating
all this content? By social mechanics. The satisfaction of
sharing that you have visited a place and that you have
some unique info is more or less enough. There is a system where frequent review writers get a star next to their
profile names. A star that in the digital community equals
status, but holds no practical value. Another value in a
community is the opportunity to barter or sell stuff one-toone instead of having to set up a store. Uber Pop, AirBnB,
and Etsy are examples of services that enable those inter-
“As more parts of our lives
are becoming digital, we are
still driven by the same social
mechanics as always”
actions. Plus, there is a social mechanics function involved
here as well; that of building and maintaining your
reputation. What is interesting with services like Ebay and
AirBnB is that for the first time, both parties are being
reviewed, the seller and buyer.
As more parts of our lives are becoming digital, we are still
driven by the same social mechanics as always. We still
like to gossip, attain status, collaborate and find the best
deal. Exploiting these triggers in digital marketing can
provide great rewards for brands.
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Wearables –
Co-Creation Of Value 2.0
More than just a buzzword
On-body computing devices, more commonly known as
wearables, are devices worn on the body in items such as
watches, wristbands, jewellery and accessories equipped
with bluetooth and/or wifi technology that interacts with
your smartphone or computer. Or it can be in the body
– ingested or surgically implemented. Wearable computing technology is nothing new. In fact, it dates back to the
1960’s helicopter pilot head-mounted displays, and even
the familiar office badge is a type of wearable. But it was
not until perhaps Nike, together with Apple, launched
Nike+iPod in 2006, that wearables became more than just
a buzzword. Over the recent years, new products have generated interest and sales like Nike+Fuelband (2012), FitBit
and Apple Watch. These and similar products represent a
new way to not only stay connected and communicate, but
to gather and track data which provides consumers with
new and powerful insights about their personal behaviour,
fitness performance and health status – to mention a few.
“The Internet of Things (IoT)
- referring to the explosion of
devices with connectivity and potential
intelligence - is rapidly adding to the
context map that will amplify
wearables’ impact”
- Deloitte University Press 2014
“The worldwide revenue from
wearable electronic devices, apps,
and services for fitness and
personal health is anticipated to
be $5 billion by 2016”
- Gartner
Another example is the Hexoskin Smart shirt used by
Olympians and professional sports teams that has revolutionized how athletes train and improve their performance. Professional sport leagues, like the National
Hockey League (NHL), are considering applying this
technology to game equipment in order to provide more
in-depth tracking and data. This data can be presented
in real-time to the audience, which will again enrich the
entire experience for the viewers.
Creating stronger ties with
the consumer – literally
Think of wearables as an ecosystem consisting of one, two
or three components: sensors, display and computing
architecture – expanding capabilities that are individually
interesting, but more compelling when combined. We
believe we are only in the early beginnings of wearables,
as this component modularity allows new manufactures to
enter the market, driving demand from both consumers and
enterprise users. What started out as a health and fitness
trend is now expanding into new product and service categories that might influence both consumer behaviour and
perceived brand value. In other words, change in how
marketeers and brands connect with – and interact with
key audiences. Wearables can potentially enhance or even
redefine the concept of co-creation of value. Wearables will
most certainly be the next revolution in personal computing – in line with the progressive downsizing of computing
devices – and many forecasters are betting that watches will
be the category standout.
Source: Angela McIntyre and Jessica Ekholm, Market trends: Enter the wearable electronics market with products for the quantified self, Gartner, Inc., July 1, 2013.
“Wearables Tech trends” - Deloitte University Press 2014 - http://dupress.com/articles/2014-tech-trends-wearables/.
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Shirt
Contact Lens
A computer is literally built
into the fabric of the shirt,
providing the processing
power for all the other
wearable gadgets. It also
includes a movement,
respiration and heart
activity tracker.
A tiny wireless chip and
glucose sensor that measures
the levels of glucose in your
tears using small LED lights
for notifications. This offers
diabetics an easier way to
monitor their condition.
Design principles of wearables
Content
Ascribes to the “less is more” concept for content and its
delivery – the design allows exceptionally low duration,
high frequency use.
Communication
Focus on communicating rather than simply displaying
data – not necessarily visually, and not necessarily via
the device generating the notification.
Wristwatch
A small computer that’s
easy to wear makes it more
convenient for training and
exercise than a smart phone.
It vibrates when a message
arrives, displays it on the
watch face and tells the time
too.
Wristband
Hand
A sensor that tracks
movement to determine
the number of steps taken
through the day - 10,000
is ideal - and how much
sleep the wearer gets at night.
Embedded under the skin
is a chip containing medical
records, passport data and
credit records. Information
is transferred by waving the
hand over a suitable scanner.
Intention
Use of persistent design elements alerts, just-in-time
information, and notifications with discretion.
Intelligence
Largely fueled by intelligence from analytics, big data
and sensors, which are often embedded in other devices.
Influence
Does not require new behaviour, but allows users to
adjust their future behaviour by providing new information or capabilities.
Enhancement
Leverages the digital world to enhance the user´s
behaviour, actions, and experiences in the real world.
Interaction
Is careful about requiring responses from user interaction
with the device; should be minimal and expedite the
user´s manual actions.
Trousers
Shoes
Made with conductive
thread, the trousers take
the energy generated from
movement to power the
other gadgets.
A GPS chip provides
directions and distance and
transmits that information
to other gadgets through
vibrations. It can also alert
you to ground movement
when you are out running
with headphones.
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Network
Communicates with an expanding community of
wearables, data, devices, systems, platforms, services
and software.
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How Big Is “Big Data”,
And How Do We Deal With It?
Data for a purpose
Big Data has been a monstrous buzzword for many years
in our and other businesses. Dealing with this issue might
seem complex, but it is necessary both for gaining important insight and in generating efficient communication.
So, exactly how big is the data used in the world of marketing communication? Compared to the data available
in other industries and other parts of the business value
chain, we would claim that the actionable amount of data
strings used for market communication are not that many.
It is big, but tangible. The tricky part is defining the purpose of big data from a communication point of view, and
you need to have a structured approach towards this.
We can utilize big data to:
Generate strategic and tactical insight
Identify and target different segments
Optimize messaging and timing
Fuel a creative solution
Create more complex marketing platforms for real time relevant communications
Data is fragile
Big data is the past, the now and the future. It transforms
our business, but it is still in its early days. It offers great
opportunities, but is still fragile and somewhat unstable.
It offers potential automatisation and real time dynamics,
but still needs to be carefully monitored and optimized.
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Do you have the right to play?
Although the media business already has a substantial
amount of structured data from media owners such as
Google and Facebook, it is when we merge this data with
an advertiser’s own data that it becomes more interesting.
At the current stage, many advertisers and agencies are
working on how to merge data streams to create efficient
ecosystems, to include CRM data combined with cookie
data, and social media data. This creates new opportunities, but also needs to be handled from a legal point of
view. Do you have the correct consumer acceptance for
terms and conditions to use the data for communicating
in owned and bought channels? The rise of big data
has also pushed forward a stricter policy on consumer
privacy rights, both in national and EU courtrooms. The
EU has reformed its policy on data protection for the
first time in 15 years, and has set the deadline to 2017 for
getting your data management platforms ready. You need
to create a plan for this, right now.
So, to operate efficiently within the boundaries of big
data, more parts of the value chain need to be connected.
Marketing people need to blend with both IT and legal
resources to create sustainable solutions that drive business
results.
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Mobilization Of Payment
Many different solutions
and technologies
Mobile payment generally refers to payment services
operated under financial regulation and performed from
or via a mobile device. We have heard talk about the death
of leather wallets and credit cards for quite some time now,
and the concept of using non-coin-based currency systems
has a long history dating back to pre-1900 when visionaries
discussed a potential cashless society in the future.
The first commonly known forms of mobile payments were
either done through SMS or Direct Mobile Billing, paying
for items and being charged on your mobile account. Since
a trusted physical delivery address is typically not given,
these goods are mostly digitally oriented, e.g. music and
ringtones. iTunes, Airbnb, Uber or Google Play purchases
are examples of a third payment method – Mobile Web
Payments – using the Wireless Application Protocol (WAP)
facility on your smart phone to connect to the Internet
and then using an online payment method such as PayPal,
Google Wallet or Yahoo Wallet, or by simply entering your
credit card details on the company’s website. Having to
give up credit card information is associated with hassle,
privacy and security issues, and might lower the conversion
rates on mobile devices. On the other hand, it can also
drive more sales and turn the process into a one-click shopping experience.
Who will lead the charge?
This year, both Apple and Google launched their mobile
payment solutions, Apple Pay and Android Pay respectively.
They employ the same technology, called “Near Field
Communication” (NFC), which allows you to wave your
phone against a reader or scanner and the transaction
is done – without opening any app, and it even works
if your battery is dead. You will need a NFC compatible
phone and merchants must have the required point-of-sale
acceptance capability supporting NFC, as NFC is mostly
used in paying for purchases made in physical stores or
transportation services. Complicated? Not really, but these
and many other methods that employ different technologies are the reason why many merchants are reluctant in
choosing a method, as no one wants to invest in a solution
that nobody uses. It’s fair to claim that different providers will succeed across the markets, as it all depends on
usability, the market penetration of different operating
systems and when the different services are launched in
respective countries – it’s not called a first-mover advantage for nothing, right?
provided by merchants, banks, telecom providers and
tech companies such as Samsung, Google or Apple, no
single entity has gained significant traction in the marketplace, getting a grip on all your transactions. To break
the competitive logjam and allow different players to build
mobile payment applications more easily, we foresee more
collaboration on open technology platforms. One example
of such collaboration is “Valyou”, launched in Norway in
2014 – a partnership between two of the largest banks,
the largest telecom provider, VISA and BankAxept (a card
terminal provider for stores) based on NFC technology. It
currently only runs on Android phones and will become
a direct competitor to Android Pay when the latter gets
launched outside the US.
OPERATOR-CENTRIC
BANK-CENTRIC
The mobile operator acts
independently to implement
mobile payment services. The
operator can provide an independent mobile wallet from
the user mobile account.
A bank implements mobile
payment applications or
devices for customers and ensures that merchants have the
required point-of-sale (POS)
acceptance capability.
Adoption calls for more collaboration
COLLABORATION
PEER-TO-PEER
Consumer adoption of mobile wallets depends on a
compelling commerce experience. Mobile payments need
to speed up the checkout process and make a consumer’s
life easier, or some type of reward needs to be offered.
And despite the existence of the numerous mobile wallets
This model involves collaboration
among banks, mobile operators
and a trusted third party covering more than one aspect of the
payment ecosystem.
The mobile payment service
provider acts independently from
financial institutions and mobile
network operators to provide
mobile payment, e.g. SnapCash.
Source: https://mpra.ub.uni-muenchen.de/40780/. http://www.mobiletransaction.org/different-types-of-mobile-payments/.
http://www.strategyand.pwc.com/perspectives/2015-payments-trends.
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Source: http://hp.gredeg.cnrs.fr/Dominique_Torre/workpap/chaix_torre_gdr2011_17mars.pdf
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The Industries
These technology-driven forces represent new possibilities for
your business - making it essential to learn, seek inspiration and
experiment in order to gain a competitive advantage. Let’s take
a closer look at how they are applied in selected industries today
and how they will potentially affect tomorrow’s marketing.
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29
The Retail Industry
Photo: estimote.com
Physical retail operations are under major pressure from
disruptive technologies. Even latecomers, such as supermarkets and FMCG-retailers, are now feeling the pressure
from technological development. Moreover, retailers within
the fashion, sports and electronics sectors, are really
experiencing the challenge. Given the pressure from ecommerce, physical retailers need to change their shoppers’
experience, and there are also close synergies between the
digital and physical shopping experiences.
Beacons are the hottest topic in retail this year, and we
have seen several examples where beacons are driving sales.
Through this Bluetooth driven technology, retailers can
send offers directly to customers whilst they are shopping.
Photo: estimote.com
Watch The Future
of Omni-Channel Retail
danq.io/Omnichannel
Watch Estimote Smart Beacon
danq.io/beacon
With touchscreens or motion control driven screens,
retailers can install interactive screens or installations in
stores. This can change the retail experience and bring
window shopping up to a whole new level. This opens an
opportunity for actual window shopping with ecommerse
solutions and can easily be even more efficient through
mobile payment.
Interactive dressing rooms may provide the perfect combination of retail and ecommerce operations. This allows an
opportunity for picking products on digital screens, mobile,
tablet or bigger screens as described above, and just enter
a dressing room when a room is available. Here, the items
will be ready for trying on. It will be possible to get new
items in the dressing room, and potentially, assistance from
the staff. Ideally, it will also be possible to scan products,
pay as you go through mobile payment and remove the
shoplifter security tag in one operation. It will be all too easy
for customers searching for an efficient shopping experience.
These trends will be fueled by the opportunity to activate
CRM data and one-to-one communication through the
possibilities provided by data collection and mining through
CRM programs and digital behaviour. This will allow
retailers to be able to provide relevant and personalized
offers while customers are in a store, most likely driving sales
and revenues.
Watch Adidas Window Shopping
danq.io/windowshopping
Source: http://www.forbes.com/sites/barbarathau/2015/01/08/experts-predict-7-big-retail-trends-that-will-shape-how-you-shop-this-year/
Source: http://www.businessinsider.com.au/beacons-are-the-most-important-new-retail-tech-2014-7
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http://digitalhverdag.media/2015/09/20/5-teknologier-som-vil-forandre-kundeopplevelsen-i-fysisk-butikk/
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The Travel Industry
The travel industry might be one of the most disrupted industries of the last 15 years. Low cost carriers have challenged the traditional flag carriers, and booking has become
far more transparent for travellers in regard to all aspects
of travel, for example trough booking engines. Moreover,
the internet and globalization have offered inspiration and
knowledge that has lowered the barriers for cross-border
travelling.
Crowd sourcing improves service
The crowd sourced Trip Advisor has been a major tool.
Restaurants and hotels can no longer influence journalists
and only expect an inspector or two during a year. Today,
anyone can give a bad review or kudos for great service
and a fantastic experience. This is forcing providers to be
more alert, and is improving their products through better
services and facilities.
Virtual reality hits the travel industry
New technology is also changing how we prepare, promote
and experience travel. Oculus was initially a 3D gaming
device, but has proven to be excellent in demonstrating features, products, destinations and experiences. It has been
suggested that VR devices be used to promote destinations
and inflight entertainment. Marriot has used the device to
promote their destinations for selected target groups, and
we must admit, it presents a rather lively picture.
Watch Future of Glasses,
Wearable Technology 2015
danq.io/wearable
The new out of home ads
Travel providers will also be able to present products
and destinations as a mix of traditional displays and new
technology. The Norwegian airline did exactly that when
they wanted to increase attention for their newly launched
Long Haul programme. Here they used a digital display
in an Oslo public location where a large number of people
passed by. Through this technology, they presented sites
and experiences in New York live to the public. This is a
very vivid and interactive way to present a destination.
Watch Marriott´s Virtual Honeymoon
danq.io/oculus
32
Likewise, Virgin Atlantic is using a similar device from
Samsung, its Gear VR, as a training tool for their pilots.
Travellers have updated information like travel guides
and navigation tools/mapset on the fly through their smart
phones. This might not seem very innovative for 2015, but
when you present the same information in direct sight
through Google Glass, it becomes a far more innovative
tool. Here, travellers will be able to get travel advice, opening hours, flight information and navigation tools literally
“right in your face”.
Watch Norwegian Red Cab
danq.io/digitalohh
Photo: oculus.com
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The Car Industry
The car industry is undergoing exponential development,
bringing safer, smarter and more environmentally-friendly
transportation to consumers. The industry is a race in
technological development, utilizing technology in brand
positioning and as a competitive edge.
Safer cars with sensors
Sensor technology is already in place throughout a range
of cars, for example, forcing a car to brake when it is too
close to the car in front of it. This will also be developed
to detect other obstacles that might not be noticed by an
inattentive driver. Even further development of this will
allow cars to communicate with each other through sen-
sors. A car will then be able to detect another car that is off
course, driving through a red light, etc. and avoid potential
accidents. The most advanced cars are able to drive by
themselves. Google is perhaps the most well-known developer of these kind of vehicles, but several other car brands
have followed. And, it seems that these cars tend to avoid
accidents better than human drivers, decreasing accident
rates by as much as 95%.
Watch BMW M235i The First Self-Drifting Car
danq.io/selfdriftingcar
Useful augmented reality
Car talk
Dashboards are also becoming more visual, hence safer,
through AR (Augmented Reality) technology. This technology has already been used in several models for displaying
speed and other basic information. It can also be used to
warn the driver about objects and hazards, and also communicate distance and other vital information to the driver
through numbers and visuals. An example might be a red
light or cube showing a hazard approaching. AR can also
be used to improve GPS visualisation by showing arrows
or other indicators projected directly onto the windscreen,
rather than on the dashboard.
Apple and Pioneer have also come rather far along in
developing voice based communication through the sound
system, called CarPlay. This technology is based on Apple’s
Siri technology. CarPlay connects your phone and car stereo, and allows you to use voice recognition for all navigation instead of using the display(s).
Watch Apple & Pioneer CarPlay
danq.io/carplay
So, why is this relevant to a marketing perspective? Well,
we find it fascinating that Google and Apple are leading
the way for the car industry. Plus, there is no doubt that
the innovations as described, in addition to improving the
driving experience and security, are also helping to secure a
premium marketing position and strengthening the price/
value perception.
Photo: apple.com/ios/carplay/
Source: http://auto.howstuffworks.com/under-the-hood/trends-innovations/5-future-car-technologies.htm#page=1
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The Finance Industry
The banking and insurance industries are going through
an age of transition. The digital renaissance has affected
how these industries carry out product and service development, and how they communicate with existing and
potential consumers.
Products and services
As many services are developed based on new types of
data, new players are entering the market, directly or
through partnerships. One example is Google’s recent
entrance into the insurance market through their smart
home solution, Nest. Nest has established partnerships with
American Family Insurance and Liberty Mutual Insurance
to offset the costs of a Nest Protect smoke detector, and
to establish a monthly discount for homes that link their
Nest smoke detectors to the insurance firms. Projects like
Google Glasses can also change the way insurance companies assess damage with more accurate and real time data.
use. Although they were not the first to implement this
type of service, they launched it at a time when the public
had become mature enough to quickly adopt it. 3 months
after its release, they now have over 800,000 downloads
and 600,000 active users, which is 12% of the total country population.
Data = prediction and
personalized communication
In market communication, a big opportunity lies within
the vast amount of consumer data that the players within
this industry have already accumulated. The race is on to
collect more data and gain acceptance for communication
Data collection will
create competitive
advantages in the bank
and insurance sectors
through digital channels. This will allow more personalized
and relevant communication through segmentation based
on age, life cycle stage, geography, lifestyle and interests.
CRM data will blend with 3rd party data to create both
new channels and new forms of communication, including
predicting what the consumer needs are within the banking
and insurance industries. At the same time, the authorities
are tightening their grip on the use of personal data, so
collect your data, but make sure you have the right to use it
before you implement new solutions.
Can Smart Glasses Transform
The Insurance Industry?
danq.io/googleglasses
The sensors in cars have also changed the way car insurance is being sold. “Pay as you drive” and “pay how you
drive” are concepts that have quickly gained new ground
in the business. The Norwegian bank DNB launched
their VIPPS service in May 2015. It redefines peer to peer
payment through an app that is simple to download and
Watch CNET On Cars
- Smarter Driver
danq.io/smarterdriver
Photo: nest.com
Photo: nest.com
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“By 2020, developed world life
expectancy will increase by half a
year, due to the widespread adoption of
wireless health monitoring technology”
The Health And
Wellness Industry
– Gartner 2014
Digitally enabled, health conscious consumers are demanding more from the health and wellness industry.
As consumers around the globe search for better, healthier
and smarter solutions that fit their lifestyle and specific
needs, the motivation for manufacturers and retailers to
foster strategies for a healthier world is powerful. Is technology the new medicine?
Another similar product is the Sproutling – an ankle strap
bracelet that monitors all the activities of a baby. After extended use, the Sproutling also learns your baby’s schedule
and can write a list of notifications for parents regarding
meals, diaper changes and other activities.
danq.io/sproutling
Products and services
The industry is experimenting extensively, trying to apply
new technology in order to create new products and services
to better support and meet the needs of the consumer. In
our chapter covering wearables and smart devices, many
of the examples directly relate to health and wellness
issues, as with the Nike+iPod Running App or the FitBit
Force, a wireless activity and sleep wristband.
Watch How Fitbit Works
danq.io/fitbit
Here, we’ll move on to something that can potentially be
much more than just a “nice to have” product. Sensors in
clothing, like Mimo, the baby monitor, are something that
every parent would love. It is a kimono with a sensor that
tracks the baby’s movements, sleep cycle, body temperature
and breathing, and sends it to an app.
Learn More About Mimo
danq.io/mimo
38
Watch How Sproutling Works
Sensors have even been applied to ingested medicine.
Proteus Digital Health has developed a “digital medicine”
that can help patients that don’t respond to medicine or
have some kind of medical condition like diabetes. Based
on symptoms and real-time data, it can detect potential
diseases or illnesses, making it a proactive mechanism
beyond a doctor’s advice. It can also assist elderly living
alone, reminding them to take their medicine and to take
the correct prescribed dose, and alert close family or care
providers (health personnel) of any irregularities. Basically,
Proteus can take every single medicine that has ever been
approved and turn it into a digital object.
Watch Proteus Digital Health
danq.io/proteus
treatment and this bra provides a continuous screening of
breast tissue which is sent digitally to a doctor, who can
assess it to potentially detect the early stages of a tumor.
Watch BSE Bra Product Video
danq.io/smartbra
Engaging in one-to-one marketing through innovation
that delivers a seamless customer experience across devices is one of the key capabilities needed in order to win in
the consumer health industry. This capability needs to be
underpinned by better insights and span multiple digital
and tangible touch-points – enabling personalized communication when, where and how the consumer desires. This
will empower people to become more aware of their actual
body condition, putting them at the forefront of their own
wellbeing.
In talking about proactive devices, the Smart Bra, created
by First Warning Systems, is a sports bra that detects early
signs of breast cancer before any type of screening. Early
detection is still the cornerstone of successful breast cancer
Photo: mimobaby.com
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Have done research online
prior to recent purchase
40
Retail
Norway
70%
60%
63%
56%
33%
Sweden
62%
65%
67%
65%
55%
28%
Denmark
67%
64%
63%
72%
67%
45%
UK
81%
76%
70%
77%
62%
38%
Germany
69%
70%
75%
63%
61%
32%
Televisions
Laptops
Mobile Phones
Home Appliances
Home Furnishings Clothing & Footwear
41
The Internal
Changes
Traditional industries need to understand how innovations and new ways of work
are challenging their revenues and ways of doing business. Youŕe either a start-up
or a turn-around. If you do not relate and act on this, you will be in deep trouble,
sooner rather than later.
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43
Start-ups and turn-arounds
The Disruptive
Marketeer And Organization
Rapid innovation in the area of marketing has set the
ground for utilizing new tools and renewing the entire way
a company and brand can communicate. People and enterprises that are able to follow this development and act on
the trends will most likely develop a competitive advantage
compared to their competitors. At the same time, to do so
requires an agile organization with highly skilled people.
If you as retailer can utilize the abovementioned new possibilities, there is no doubt that your customers will perceive
your brand as sexier than the competitors, and most likely,
you will improve your turnover as well.
Sales
Marketing
In 2014, the New York Times realized they had been
outmanoeuvred in the media segment, where they had
been seen as leaders for ages. Brands like the Huffington
Post and Flipboard attracted a bigger crown, and sites like
Buzzfeed stole attention from them with a whole different
angle by using a younger staff, wider skills and a different
philosophy to journalism than the traditional NYT. This
lead to a critical review of their own business and organization, and forced massive change within the organization.
The core of this work was the better utilisation of new
technology, a more agile work force and a more dynamic
organization where all the specialists work better together,
and not in silos. In Norway, we were inspired by this work
and established a survey where we asked the managers
within marketing, business development and R&D how
they could gain a competitive edge. As we thought, a majority strongly believed in utilizing new technology better.
Operations
As the second most important driver, they told us that
working together between the disciplines would drive
growth. This means that traditional businesses that are
able to tear down barriers between departments and
disciplines will gain a competitive edge in improving
their marketing efforts and product development. A major
obstacle though, was that the same people did not find
it necessary to re-allocate budgets to make this happen.
In other words, they were not willing to give up power
through funding to see its success. This is a major cultural
challenge for the companies involved, and a barrier that
must be overcome for traditional businesses to be able to
develop new skills and gain an agile and flexible culture to
grow their business through digital innovations. CEO of
Dentsu Aegis Network Americas and EMEA, Nigel Morris
claims, “Either you`re start-up or you`re a turn-around.”
This statement is descriptive of the state of mind a business
must adopt in 2015.
IT
R&D
Agile, Cross-Barrier
44
45
“If you’re not a start-up,
you’re a turn-around.”
Cultural change is challenging. You will have to move
people, possibly change location, improve your skills and
ensure that people have time to work together. Maybe you
will even have to get rid of people as well, either because
of out-dated skills or because they are not mentally ready
for the journey ahead. In addition, KPI’s are an extremely
important tool. To change the culture and motivate people
to work across departments and competences, they need
to be measured by these variables. In addition, they need
to have a common goal to work towards. The corporate
KPI’s must reflect these goals.
n
o
i
t
a
c
i
un
Innovat
ion
Co
m
Wanted: Cultural change
m
- Nigel Morris, CEO Dentsu Aegis Network Americas & EMEA
70/20/10 - Carry on, and go crazy
Moving in this direction is a demanding task, potentially
leading the company into an introverted state of mind only
focused on changing. It is also important to maintain what
is functioning well and at the same time work on building
an agile culture. Here, the 70/20/10 rule might be of great
use. Spend 70% of your resources on tactics and efforts
that are working well, allocate 20% to the tuning of experiments where you have a positive experience but no proven
success, and spend 10% of your resources on radical experiments. This will allow you to maintain what works and is
proven, and at the same time, develop your business. Over
time you will develop experience and a competitive edge,
pushing your business towards a competitive advantage.
Photo: “Paul”, highresolution.photography.com
Source: http://www.thinkgrowcreate.co.uk/innovation-and-the-702010-rule/
http://mashable.com/2014/05/16/full-new-york-times-innovation-report/#PfyQL3txMOqE
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International
Carat is the #1 Global Media Network, and the fastest
growing, according to RECMA. Our vision is to redefine
media and create better client business value through our
command of media convergence.
We are a market leader in digital and diversified media
solutions. Established in 1968 as the world’s first media
agency, we are part of the Dentsu Aegis Network. Carat
currently services clients in more than 140 countries and
employs more than 8,000 in staff worldwide.
Vizeum was created for the new era of media: A convergent world where consumers and content come together in
real time, on platforms and devices; a global world massively
impacted by digital technology which is totally reshaping
the environment that brands and people live in.
Vizeum embraces every dimension, linking social, mobile,
offline and online, generating emotions and trust, and
building powerful connections between brands and people
at speed and scale.
Across the globe, we make digital marketing human by
bringing everything together – creating the connections
brands need to stay ahead, and giving businesses a tangible
advantage in today’s world.
At iProspect, we’re not just specialists in different types of
digital marketing – we also know how to bring them all
together. By putting customers at the centre, we create
effective strategies that connect with people across every
channel, and grow businesses in ways they can measure.
Vizeum - Connections that Count
iProspect – Driving Digital Performance
Carat – Redefining Media
The Amnet trading desk was created in response to the
technology driven revolution in digital media buying and
provides best-in-class service and expertise in emerging
data-driven media strategies. We use a sophisticated technology stack to target your particular audiences and to
deliver better business results.
Isobar is a global, borderless digital marketing agency with
a team of 4,000 working in 70 locations across 44 markets.
IWe combine creative, strategic, technology and brand
commerce expertise to deliver positive business transformation for brands including adidas, Coca-Cola, Enterprise,
Google, Huawei, Kellogg’s and P&G.
Posterscope is the world’s leading Out-of-Home communications agency and location expert. It knows more about
what people think, feel and do out of home.
Posterscope translates this understanding into compelling,
creative and quantifiable Out-of-Home solutions through
its investment in data, technology and people, which make
a meaningful difference to clients’ businesses.
Isobar – Ideas without limits
Posterscope - Pioneering Out-of-Home
psLIVE, Dentsu Aegis Brand Experience Network, is a
leading international Brand Experience Network that
delivers engaging and memorable consumer experiences,
all driven through insight, data and innovation. We aim to
make the brand experience a meaningful and memorable
one, augmenting the traditional media proposition, and
extending through owned and earned media. We create
integrated, digitally driven and measurable multi-market
campaigns.
Employing 200 experienced professionals, psLIVE offers relevant creative solutions and consistently excellent implementation in all our 22 markets through observing our values
of ambition, collaboration and agility. The network has true
international reach and boasts an impressive portfolio of
clients, including leading global brands such as Twentieth
Century Fox, Canon, Sony, Adidas and Allianz.
psLive –Empowering Brands and Bringing them to Life