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GfK TechTalk: The TV Edition

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The latest edition of GfK's TechTalk magazinf: this time looking at the future of TV.

The latest edition of GfK's TechTalk magazinf: this time looking at the future of TV.

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GfK TechTalk: The TV Edition GfK TechTalk: The TV Edition Presentation Transcript

  • TechTalk editorial2Technology trends, opinion and insight | Edition two - 2012 the tv edition It’s difficult to think of a technology that has been more important and influential than TV. For a large part of the twentieth century, TV played a key part in many of our lives, entertaining and informing, serving as a virtual fireplace. The latest technology evolutions, such as Connected TV, have the potential to completely change this TV-viewing culture and experience. Today, we can choose from an almost limitless selection of content, challenging a past era of restrictive, scheduled viewing. Additionally, the rise of the ‘second screen’, mainly in the form of smartphones or tablets, has added a new dimension to TV viewing, enabling us to engage with content in new ways. This edition of TechTalk explores how these emerging technologies have been adopted globally and have changed TV-viewing behavior, sharing highlights from our global survey. We also look at upcoming developments, such as the exciting opportunities presented by natural user interfaces and the emergence of new creative ‘indie content’. The role of advertising in this multiscreen landscape deserves particular attention as it offers effective ways for industries to build brand relationships with consumers through more active engagement. Finally, as smartphones enter the TV space as first and as second screens, it’s worth looking at the developments of smartphone apps and the trends we are seeing across the consumer journey for these devices. Happy reading! Anette Bendzkothe tvedition Global Lead Technology, GfK Consumer Experiences anette.bendzko@gfk.com Copyright GfK | TechTalk Edition Two 2012
  • the TV edition 4 contents p.05 Driving Engagement through the second screen p.09 relax, lean back and discover! p.13 advertising cut through in a multiscreen environment p.19 the rise of online video advertising p.23 The Emergence of a New global TV Landscape p.29 APP DESIGN AND THE SHIFT TOWARDS FUN AND CREATIVITY p.35 Why a successful indie media industry is good for the consumer p.41 natural user interfaces are here to stay p.45 Shortcuts: consumer decision making in the real world p.49 Smartphone experiences in emerging markets p.53 contactCopyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 5 the retail edition the TV edition 6 Driving Engagement through the second screen By Rose Tomlins The TV-viewing experience has always struggled for our undivided attention; from screaming children to writing the shopping list, we’ve unknowingly multitasked while watching TV. Yet a new challenge now seems to be threatening the TV-viewing experience - the rise of the ‘second screen’. Our shiny new laptops, tablets and has struggled to really gain traction in smartphones tempt us away from the TV consumer TV-viewing ecosystems. experience we initially set out to enjoy. Nevertheless, over recent months, Whether it’s quickly checking Facebook greater recognition has been given to during a quiet moment in the soccer the potential of the second screen in re- match, or texting a friend to arrange lunch, engaging consumers with their TV-viewing the distractions are numerous and easily experiences. It is increasingly viewed as an managed while watching TV. However, enhancer, rather than a detractor, to the when it comes to multitasking, we generally overall TV experience. And, as such, with sacrifice the quality with which we’re able a revival of the second-screen use case, to execute each task. And at first glance, in this time it seems to be accompanied by the context of the proliferation of second genuine consumer excitement. screens, it appears to be the TV experience that suffers. How many goals have been The organic rise of the Twitter hashtag missed during that quiet moment when we has much to do with this revival. By were quickly emailing a friend? spontaneously tweeting about TV content with an accompanying and relevant Since the advent of the first app store hashtag, users ensure that like-minded in July 2008, many concepts have been viewers can discover and read their tweets. tested that focus on similar second- Through enabling consumers to bond screen multitasking (otherwise known as over topical TV conversations, Twitter has second-screening) use cases - for example, provided a compelling use case for the watching TV on your phone while having second screen and one that TV producers an IM chat with your friend. While being have been quick to capitalize on. received favorably, these types of use cases typically fail to ignite genuine excitement. Reality TV shows in particular have Despite fulfilling a functional consumer benefited from being able to influence and need for greater efficiency through share opinions on the shows’ live events. multitasking, these use cases ultimately fail A simple Twitter hashtag trend flashed to address the more emotional consumer up at the end of each act is enough to need for an engaging and immersive drive consumers to tweet their thoughts TV experience. Perhaps this goes a long on the show they’ve just watched. The way to explaining why the second screen accompanying ‘buzz’ around that TV showCopyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012 View slide
  • 7 the TV edition the TV edition 8 “What tv-sidekick screen and compete against their friends. Monterosa3 , the solution developer behind with your Connected TV. So, although TV viewing may arguably remain a bases itself around the concept of ‘fan SideShows’ that enable consumers to solutions have this second-screen solution, states on its predominantly first-screen experience, engage with like-minded fans of their website that the second screen actively interacting with TV content is starting favorite TV show, sharing clips and lyrics in common is encourages viewers to engage in the shows to make more sense when conducted or even sourcing the retailers that stock a recognized they watch. Far from distracting viewers, it via the second screen. The ability their character’s favorite outfit. The idea gets them talking more about those shows of second screening to facilitate a is fun and ideal for cult TV shows such potential for with their friends, generating positive word more pleasurable experience when as US comedy-drama series Glee, where using the second of mouth. Monterosa’s position is clear; the second screen exists to make TV viewing it comes to data input (keyword searches, tweeting etc.) is one of the fan engagement with the characters and plotlines is incredibly high. screen as a more an experience by involving viewers, making key benefits these solutions seek to intuitive and them feel like they are part of something special. Another example of this is the capitalize on. Later in this TechTalk edition, we explore this in relation The emergence of these TV-sidekick solutions indicates a new role for the engaging means smartphone application developed by Fox to advertisers who increasingly seek second screen in re-engaging consumers TV for the US cult forensic drama ‘Bones’4 . to capitalize on second screening with their favorite TV shows. Far from with which to The app allows viewers to participate in the by advertising on all screen being a threat and challenge to the ‘first’ interact with your show, solve cases, and even purchase songs simultaneously. screen, the second screen may actually that feature in the show. turn out to be its savior. Connected TV” A final variation on the second-screen The second type of TV solution focuses solution is a more niche-use case, as Want more information on this article? around the Connected TV proposition, demonstrated the Miso app6. Miso -> Rose Tomlins utilizing the second screen to facilitate rose.tomlins@gfk.com greater interaction. While Connected TVs 6 http://gomiso.com/ are great for opening a range of content is what keeps producers happy, driving onto screens, when it comes to navigating consumers to phone in and vote for their through complex on-screen program favorite act. Beyond the reality TV show, guides, the experience can suddenly Twitter is being used to creatively engage become a lot less intuitive. Solutions with consumers, as demonstrated by the such as Microsoft SmartGlass have been UK teen drama ‘Misfits’1 . Producers utilized quick to exploit the potential benefits of Yet the connected TV is beginning to technologies to people. From the a sophisticated online and viral campaign a second-screen solution to aid discovery change this fragmented experience to outset, as shared viewing experiences which saw the actors and actresses create and navigation, in this case by using a something that can again be shared, become ever more socialized, content ‘character Twitter streams’ that they Windows tablet to act as a smart remote and this time shared globally and in providers will need to offer audiences updated during and after the show. These control, game controller and navigational real time. This obviously presents a ways to filter or control who they are initiatives added an extra dimension to the tool in one. An example of a similar solution slightly paradoxical situation where sharing the viewing with. action unfolding on viewers’ ‘first’ screens. (but in the smartphone application space) people in the same house (or even in is Zeebox5 , an app that enables you to the same room) are not sharing TV in a The viewing experience is also under Following the success of Twitter in reviving interact with TV content via your second physical sense, but are instead sharing the threat of dilution as people second screening, a noticeable number of screen in a variety of ways. This includes content with other groups of people grapple with the intrusive aspects more sophisticated TV ‘sidekick’ solutions seeing what your friends are watching, that they’re connected with ‘virtually’ of connected content and devices, have emerged. Each is specifically designed chatting to others about shows, getting through social media. particularly as advertisers start to take to drive greater TV engagement through, live stats for sports matches and remotely advantage of opportunities that such and raise the profile of, the second screen. controlling your Connected TV. The fact What is the potential It is the combination of social new developments present. Broadly speaking, there appear to be three that all this can be done on your tablet, impact of Smart TVs… from connectivity with interactive gaming, different types of sidekick applications and ‘hyper-real’ viewing experiences, Broadcasters will have to keep up with wirelessly, with a touch screen keyboard, a cultural and futurology currently available to TV viewers. makes interacting with your Connected TV which will ultimately impact how we the new features and options available perspective? use media in the long term. Imagine to audiences, perhaps pushing them to an altogether more exciting and immediate The first type of TV-sidekick solution is one experience. a scenario where you can ‘virtually’ offer more hyped and extreme content that is custom designed to work alongside In the latter half of the 20th century, enter a tabloid talk show and shout at where boundaries are broken and specific shows. For example, a popular the TV has created a focal point in the What these solutions have in common the husband who cheated on his wife opinion on whether this is right or not quiz show syndicated globally, ‘Million home, a kind of virtual fireplace where is a recognized potential for using the via your avatar! Or, enter the scene polarizes the viewing audience. Pound Drop’ ’2, offers a custom-built site people can gather and share a viewing second screen as a more intuitive and of a live crime drama and help the where viewers can actually play alongside experience with the whole household. engaging means with which to interact detective look for clues along with Ultimately, the ‘smartening’ of quiz show contestants using the second More recently, with the introduction your friend’s avatar. TV provides another platform to of mobile viewing screens, the viewing 3 http://www.monterosa.co.uk/ fundamentally impact on the cultural experience has not only fragmented 1 http://www.e4.com/misfits/ 4 http://www.fox.com/bones/mobileapps/ Inevitably, there are some challenges landscape, much as it did in the last 2 https://www.themillionpounddrop.com/ 5 http://zeebox.com/uk/ audiences, but has become more to ‘selling in’ these new features and century. personal and customized.Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012 View slide
  • the TV edition 10 relax, lean back and discover! by emma roberts It’s Friday night, you’ve finished work, you kick off your shoes, pour yourself a glass of wine, put your feet up on the sofa and turn on the TV in time to watch your favorite show. The program starts and you sit back and start to unwind… but will such evenings remain the same as we embrace Connected TV? Accessing and viewing ‘regular’ and ‘one- time-based electronic program guide grid. off’ shows is a familiar experience for us all, Both of these paths take us on a relatively typically governed by a familiar time-based passive approach to content discovery, with program grid or, more often than not, by little time investment or up-front planning simply entering the channel number into required. the remote control at the appropriate time. It’s something that has become so habitual However, as Connected TVs start to that we do it without even really thinking, pool content from the internet onto our simply discovering what’s on by flicking TV screens, the way in which we watch, through the channels or scanning the on- select and discover such content is set screen guide. to change. The manner in which we flip through our TV guide and the approach Typically, unearthing new TV programs we adopt when browsing the internet are has been a fairly ‘lean back’ affair too. very different. Indeed, our motivations for With traditional TV, we have taken two using the internet and watching television clear paths when it comes to content are at odds. Whereas TV discovery can be discovery. The first of these paths is described as a ‘lean back’ or more passive ‘informed discovery’ where we watch experience and one that we often set out something that’s been brought to our on with the purpose of entertaining or attention by friends, via social networks, relaxing with friends and family, internet or on adverts. The second of these is discovery is a more ‘lean forward’ or ‘stumbled discovery’, where we ‘accidentally proactive experience, often undertaken on purpose’ come across something new, alone and usually for the purpose of active often by flicking through channels or a information gathering.
  • 11 the TV edition the TV edition 12 “the main the primary aim of watching television. platforms for integrating the active and passive discovery experience. So what will be the EPG of the future? It’s clear that TV discovery will challenge So, if television viewers prefer to be given There are several immediate become smarter and more proactive information while internet browsers prefer advantages to engaging with the as Connected TVs enable powerful facing hardware to seek information, there are clear design second screen in this way. For internet-enabled discovery solutions. manufacturers implications for future EPGs. Successful example, the second screen allows Yet it is crucial that manufacturers EPGs need to build seamless links between viewers to ‘lean forward’ into their understand the ‘change of behavioral and service these two different modes of discovery, more active discovery mode without play’ to succeed in the home ecosystem. providers is how enabling consumers to switch between those modes with minimal interference. disrupting the ‘lean back’ experience for those watching TV with them (in With our TV-viewing experience rapidly evolving, ironically manufacturers must to ensure that However, a number of possible hurdles other words, on the first screen). In do anything but lean back and relax. TV discovery have been identified. A critical pain point that needs to be bridged when integrating addition, inputting text fields and searching for content is arguably continues to these two solutions is that in ‘lean back’ much easier when attempted with a Emma Roberts is currently on maternity leave but if you want more information mode we simply need to push a button touch screen interface on the second be a ‘lean back’ and the desired experience is delivered screen rather than a numeric keypad on this article, you can contact her colleague below: and relaxing to us, whereas in ‘lean forward’ mode we on a remote control on the first -> leanna.appleby@gfk.com have to actively input a text field, search screen. experience while for relevant content and actively prioritize also enabling and select the experience we want to achieve. The critical crossroad arises when consumers to ‘lean we attempt to use traditional TV discovery solutions to enable a more proactive forward’ at key discovery experience. Traditional EPG and household audience by offering a further enhance this experience. moments TV remote control offer poor support to converged digital-content experience (games consoles, media centers, No doubt there will be some casualties the ‘lean forward’ experience (as anyone who has gone through the frustration of set-top boxes etc.). However, these on the way for entrenched brands. A typing out a keyword search using the have always met with barriers that major threat to the games-console number pad on their remote control will have stopped them achieving full category exists because, as Smart TVs Consequently, the main challenge readily agree). ‘ownership’ of home entertainment. evolve, they may gradually remove facing hardware manufacturers and In particular, issues include appealing the need for an independent gaming service providers is how to ensure that A further setback to seamlessly blending only to a smaller, more tech-engaged device within the home (in the shorter TV discovery continues to be a ‘lean these dual-discovery modes is the need audience (e.g. hard-core gamers, tech term this is likely to impact set-top back’ and relaxing experience while also to consider the social context in which we savvies etc.), separating the digital and box providers too). enabling consumers to ‘lean forward’ at often watch TV. The ‘lean forward’ discovery broadcast experience (despite best key moments. There is a danger that experience of the internet which is efforts) and not fully integrating their Broadcasters and cable/satellite- What is the potential employing an internet-style interface will typically conducted alone is not necessarily content and services with other device service providers are also in danger impact of Smart TVs from ecosystems. of become d-coupled from the value distract from the familiar television viewing conducive when the room is full of friends experience. And there is no evidence to and family shouting at you to change the perspective of a home chain as content is easily piped directly suggest that consumer-viewing behavior is back the channel and ‘lean back’ into the entertainment provider? As the TV format is ubiquitous from the original source to home. going to change. Research1 has shown that viewing experience. and used by everyone, the However, Smart TVs also provide many electronic program guides (EPGs) should be The Smart TV, with its large screen Smart TV evolution presents opportunities for broadcasters to make designed to suit the ‘lean back’ experience The bridging solution for these two and touch-of-a-button access, has the best opportunity in helping their content more interactive and as much as possible and not distract from discovery modes is likely to come in the potential to widen the appeal of content providers and device engaging, particularly when combining the form of the ‘second screen’. Here, digital and interactive content, provide manufacturers to finally fully ‘own’ their content with the more interactive 1 Bonnici, S. (2003) ‘Which channel is that on? A de- opportunities to merge this content the home-entertainment experience. elements of gaming and social sign model for electronic programme guides’, Procee- companion devices such as smartphones dings of the 2nd European Conference on Interactive and tablets are viewed as the appropriate with broadcast TV, and enhance shared Nevertheless, to capitalize on this, it networking. Television, 49-57 real-time experiences. is critical for any home-entertainment Other devices have already competed provider to unlock the potential of for the attention of the wider Smart TVs by utilizing ecosystems to
  • 13 the retail edition the TV edition 14 advertising cut through in a multiscreen environment by kathryn o’hare The task of TV advertising is twofold: firstly, to persuade customers to buy into a product or service through the delivery of effective and relevant messages and secondly, to strengthen the consumers’ relationship with the brand which will bring about a change in viewers’ perceptions or behaviors. To achieve this, advertising must engage the viewer and cut through clutter. Guaranteeing cut through has been at devices - known as second screening - is the top of advertisers’ priority lists for perceived to be the latest barrier to cut many years. Traditionally, the barrier to through (with Connected TV a related cut through was viewers leaving the room and rising threat). However, research during an ad break, removing themselves has shown that the adoption of multiple from the vicinity of the TV and therefore, screens continues to grow alongside even the ads. Digital video recorders and an increase in TV viewing figures1 , which Video on Demand then became the main poses the question; could the viewing of culprits, enabling viewers to fast forward two or more screens at the same time through the ad breaks. More recently, the actually be an opportunity for advertisers use of laptops, smartphones and tablet to exploit effectively? Some advertisers computers has exploded with viewers often using them while also watching TV (figure 1 “A Serious Examination of the Myth of TV Viewing”, one). This simultaneous viewing of different T.Jones & T.Baxter, Market Leader: Quarter 1, 2010 (Warc)Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 15 the TV edition the TV edition 16 APPEAL & FAVORABILITY INNOVATION 76% 69% 69% Figure one: 74% Figure two: 72% Multiscreening is popular Strength in market usually amongst TV viewers with leads to strong innovation 45% just under three quarters 59% perceptions BRAND A browsing the internet or 51% checking emails while also watching TV. 47% 20% KEY Key 1. Browse the internet/check, send emails Key (1) Top two KEY 13% 2. Use a laptop/computer 1. Top two box appeal 11% 12% (2) Top two 3. Use a mobile phone/smartphone 2. Top two box favorability BRAND B (1) Browse the internet/check, send emails (3) Has the 4. Use social networking sites 3. Has the newest features (4) Cutting (2) Use a laptop or computer 5. Use a tablet computer 4. Cutting edge technology (3) Use a mobile phone/smartphone (1) (2) (3) (4) (4) Use social networking sites (1) (2) (3) (4) (5) (5) Use a tablet computer think so, and while using one channel to direct consumers onto another is nothing broadband TV ad2 . At the end of the ad, Usain Bolt points to a website address “Second screening In the past, the type of media used in a campaign has placed time constraints on new, advertisers are recognizing the real- on screen which promises to tell viewers is an effective way advertising, limiting the depth of message time opportunity of second screening; when their broadband speeds will double. that could be communicated. However, using this to capitalize on advertising on all This direction resulted in over 1.7 million for all industries during a second-screen campaign, time screens at once, creating campaigns that viewers going online after the advert to advertise as it limits become less of an issue. Coca-Cola provide relevant, consistent and connected had aired3, demonstrating not only how found this in their second-screen campaign advertising. connected viewers are while watching TV, allows brands to during the 2012 Super Bowl. Viewers What is a ‘second screen’ campaign? but also their willingness to engage with brands online. The driver online from the build a relationship were directed to an online microsite on which there were two animated polar bears The idea behind a second screen campaign TV advert could be as simple as Virgin’s with consumers hosting their own Super Bowl party and is simple: you place advertising on TV which drives viewers to engage with the brand point to a website address; it could be the inclusion of a hashtag or Facebook emblem through more reacting in real time to the game, the TV ads, and the social media updates from on the laptop or smartphone they have in to encourage viewers to engage with the active engagement viewers. The average time that viewers front of them. It is well known that TV is a brand through social media, or it might be interacted with the polar bears was passive medium, but when used as part of something more complex such as a link to a which can help a second-screen campaign it becomes the downloadable app or online game. positioning and catalyst to actively engaging viewers by directing them online. A straightforward 2 http://www.youtube.com watch?v=gpNtntHVrkc differentiation” 3 “Virgin Media: Going Beyond the Data” Jeff Dodds, example of this is the UK Virgin Media Warc Exclusive MAP: Measuring Advertising Perfor- mance, March 2012Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 17 the TV edition the TV edition 18 expected to be quite low, at around two and screen advertising campaign presents for providers and other products, many engaged audience through a second-screen a half minutes. Instead, viewers stayed for two reasons. Firstly, second screening is technology categories are central to campaign could strengthen the brand an average of 28 minutes, Twitter followers innovative; one of the key characteristics second screening. Viewers are already relationship. Viewers can engage beyond grew by 38% and the brand ran connected of second screening is that it relies on engaged with the category at the point of the advertising, demonstrating what they product-led TV ads during the game4. using creative and cutting-edge platforms advertising consumption. As such, second are missing out on or letting them explore Coca-Cola found that through adopting this through which to communicate with screening could act as a platform for the capabilities of the products they are approach, screens can be used distinctly, viewers, keeping innovation at the core of showcasing the brand and products in a using and exploiting the all-important allowing the advertiser to get across a media activities. Data we have collected5 relevant manner without time constraints, innovative message through real-time use myriad of messages, each one enticing the gives an indication that technology brands and to an audience which is already highly of the product. viewer in a unique way and at a different that are cutting edge with the newest involved and hence is less likely to perceive level. The relevance of the content helped features and capabilities tend to have advertising as unobtrusive. More broadly, second screen advertising to encourage viewers to stay with the polar higher levels of appeal and favorability shows how advertisers should focus on a bears, engaging with the Coca-Cola brand (Figure two). As innovation is key to success holistic ‘experience points’ strategy. The throughout. in the technology category, keeping this Second screening is a constantly-evolving greater the ability is to create memorable, quality not only at the core of products concept and the traditional task of TV impressive and consistent experiences, What are the implications and the and messages but in the way the brand advertising remains important. In a second- the more they’ll be able to strengthen opportunities of second screening for communicates, is likely to lead to strength screen campaign, TV advertising still has consumers’ relationships to brand. technology brands? in the market and a positive change to have enough impact to cut through - Second screening is an effective way for all in brand perception as well. Secondly, but once it does, the potential to engage industries to advertise as it allows brands technology is intrinsically involved in consumers for a longer amount of time is Want more information on this article? to build a relationship with consumers the second-screening experience. With heightened through online interaction. The -> Kathyn O’Hare through more active engagement which the combination of TV, laptop/tablet/ manner through which technology brands kathryn.ohare@gfk.com can help positioning and differentiation. smartphone, broadband/Wi-Fi/mobile can successfully exploit their integral part Technology brands specifically should network carrier, social media, search of the second-screen process is a question embrace the opportunities that a second- which is yet to be addressed. Although 5 TechTalk Omnibus conducted by GfK in the UK in the advantages are clear, showcasing Feb 2012 and the base is 6075 technology products to an already- 4 “Coca-Cola Polar Bear Engaged 9 Million”, Natalie Zmuda, adage.com, May 9th, 2012Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 19 the retail edition the TV edition 20 the rise of online video advertising by robert wucher The adoption of laptops and tablet computers combined with the rise of online catch-up services (TV on demand) has meant that we can watch our favorite content wherever, whenever and as often as we please. These services allow consumers to fit programs around our lives, ensuring we never again miss our favorite drama series or that groundbreaking documentary. However, the move to watching So, what are the benefits of online video programs via these services has seen the ads? disappearance of some aspects of normal 1. Traditionally, online has been seen to be viewing, most notably the traditional ‘ad an active medium, whilst TV is perceived as break’ window between programs. To a more passive medium. It follows therefore combat this, content on catch-up services that advertising, designed to be viewed contains a mechanism to screen shorter passively, would not sit well in an online ad breaks, partly using online-specific environment. However, thanks to our creative executions before (pre-rolls) increasing consumption of media through and throughout (mid-rolls) the viewing catch-up TV services, Smart TVs, laptops of program content. This online video and the rise in popularity of YouTube, a advertising has enabled advertisers to grey area has emerged online in which TV place ads in and around specific content to advertising sits particularly well. Indeed, regain control and potentially advertise to with online viewers being generally more an already engaged audience. engaged, (they click on a link, or search for content) and yet still watching programsCopyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 21 the TV edition the TV edition 22 “thanks to impossible to skip through online video ads. While audiences may not necessarily take “Technology was innovation. Generally, technology brands need to be perceived as innovative, our increasing note of ads, they are likely to be engaged Brands need to and it would seem that harnessing new to an extent as they actively consume the innovations in advertising can also help consumption of medium. One exception is on YouTube be perceived as drive this perception. media through which has a mechanism which lets you skip innovative, and it through adverts after the first five seconds. It is evident that the paybacks from catch-up TV As such, the online video ad is guaranteed would seem that online video advertising make it a critical services, Smart TVs, exposure, albeit for a shorter time. harnessing new component to consider using as part of an advertising campaign. However, it is worth laptops and the 3. Online video adverts can be specifically innovations in noting that success was only seen when the rise in popularity targeted at a particular demographic or type of consumer based on the category advertising can online ads were used in conjunction with TV advertising. While they offer a good of YouTube, a grey of content in which they are placed. The help them to drive opportunity to target a specific audience, programing can be cherry-picked especially using online video advertising in isolation area has emerged to sit within a certain type of content, this perception” from other media is not enough. But when online in which TV making it easier to target the demographic used in tandem with other media, they for which the advertising has been created, provide a complementary, non-traditional advertising sits or those who may be interested in the and those exposed to the latter but approach through which to deliver particularly well” product being advertised. unexposed to online advertising, despite browsing the same website. The results advertising to the right people at a time when they are most likely to be engaged. In So, in a nutshell, online video ads save time showed that not only did those consuming addition, they also have particular benefits and expense, sharing creative executions both the TV and online video advertising for tech brands chasing that all-important passively, TV-creative executions can easily across media. But what are the effects on have stronger recall, but brand-perception innovative perception. slip into this unique advertising space. This brands? measures were also more positive in this is obviously a great benefit to advertisers group, post-exposure. The strongest ad as executions can be easily slotted online, Want more information on this article? Beyond generating awareness, another recall happened with viewers who had removing time and money otherwise -> Robert Wucher important purpose of advertising is to seen the ad five to seven times through a spent on creating a whole new execution. robert.wucher@gfk.com shift perceptions. Working with Google, combination of TV and online. However, it is important to note that it we carried out a series of studies across is not yet clear if using the exact same a number of industries to explore the One such study focused on a mobile phone creative execution for both online and TV is value and effectiveness of online video manufacturers’ launch campaign for a the best approach from an ad-effectiveness ads in relation to TV. Both the online new handset. Interestingly, the brand- standpoint. and TV campaigns used were identical perception measure which benefited in their creative executions. The studies most from exposure to both elements 2. Both YouTube and online TV catch-up divided participants into two groups: those services have measures in place making it exposed to both online and TV advertising,Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 23 the TV edition the TV edition 24 The Emergence of a New global TV Landscape by phil mccann TV is in the middle of a technology revolution which has the potential to completely change the TV-viewing culture and experience. A range of technologies is contributing to this revolution including Connected TV, HDTV, 3DTV, time-shifted viewing and the ability to watch TV programs on a number of devices. So how are consumers globally adopting these new technologies? Our global study1 into content and device- Germany largely continue to see their viewing habits shows that developing TV set as the center of their content countries have exploited the opportunities viewing, favoring watching TV content in to consume and engage with media the context of the traditional living room across a variety of platforms to a greater set-up. extent than their developed-country counterparts. Not only do countries such As David Tice, of GfK North America2 , as India, Brazil and especially China view an suggests, “TV is still king within the US, increasing amount of content via ‘second and consumers in this market want the screens’, but they also use TV in more biggest screen possible so they can enjoy advanced ways, in particular utilizing the the ultimate TV-viewing experience.” smart functionality. Their rising levels Nevertheless, how content is consumed is of advanced TV interaction, paired with changing, albeit within the same living- their higher motivation to interact with room environment. An appetite for second programs, means that consumers in China, screening is growing in developed markets. India and Brazil are essentially the early Tablets, laptops and smartphones are used adopters of the moment. to actively to engage and seek information In contrast, consumers in traditional related to the TV content that is being TV markets such as the US, the UK and viewed. 1 Survey was conducted by GfK, covering 6,027 consumers in 13 markets. All participants were inter- viewed between June and July 2012 using an online 2 Tele-depth interview conducted with GfK analyst in methodology North America in May 2012
  • 25 the TV edition the TV edition 26
  • 27 the TV edition the TV edition 28 “Not only do ‘Shortcuts: Consumer Decision-Making in the Real World’), the highest drivers of “our study suggests be used both as an alternative to and in tandem with TV viewing in the form of a countries such as purchase are screen format and level of that intuitive ‘second screen’. HD capability, with these factors proving India, Brazil and far more important to consumers than control will be the But what does this mean for the future? especially China whether or not their TV is internet next big growth It would be unwise to suggest that TV is enabled. Findings also show that globally, on the brink of losing its position as the view an increasing consumers feel uninspired by the social area in TV, with top content-viewing device. However, the amount of content content of programs to interact regularly. high interest in growth of online catch-up and streaming services means devices such as laptops, Broadcasters must work creatively to via second screens, integrate social elements, such as voting, touch and gesture tablets, smartphones and games consoles but they also betting and buying, into the fabric of programs to engage more consumers TV control as a are far more appealing to viewers looking for content rather than a mechanism for use TV in more (as Rose Tomlins explores in ‘Driving replacement to the consuming it. As a result of this technology, Engagement through the Second Screen’). manufacturers and OS developers could advanced ways, traditional remote hold the key to future content delivery in particular So, while advanced functionality is more control” with viewers looking towards the most likely to be adopted as penetration convenient and intuitive method of utilizing the smart increases, it is clear that this is not yet consuming this content across their device breeding ground for such gesture-based functionality” a base on which to build a marketing strategy. interfaces, moving away from social gaming ecosystems. and towards visual content, such as catch- *Infographic below: Smart TV usage Indeed, there is global commonality in up TV and streaming movies. Meanwhile, In fact, our study suggests that intuitive amongst owners of a Smart TV terms of key purchase drivers when with smartphones developing beyond the control will be the next big growth area consumers consider their next TV set. traditional boundaries of a mobile phone it in TV, with high interest in touch and Want more information on this article? Alongside the obvious barrier of price is likely that this technology, having already gesture TV control as a replacement to -> Phil McCann (a critical point of consideration for TV defined its usability credentials in terms the traditional remote control. Microsoft’s phil.mccann@gfk.com purchases as Oliver Robinson explores in of these advanced control methods, could Kinect technology is proving to be a *
  • the TV edition 30 APP DESIGN AND THE SHIFT TOWARDS FUN AND CREATIVITY Interview with Airsource’s Nick Clarey. Words by Nicholas Peppiatt. The mobile app market is booming and is now a key part of the mobile ecosystem. We talked to mobile apps developer, Nick Clarey to get an industry perspective on where this fast paced market is heading. Nick discussed his view on the market and how there is growing demand for simple, focused apps that encourage fun, creativity and sharing. Evolution of the app store However, the launch of Apple’s App Store It’s easy to take the incredible quantity in 2008 changed the situation drastically. “I and variety of apps available to consumers think Apple really set a standard for what’s today for granted, but rewind back a few possible,” he continues, “smartphones years and the picture was very different. existed before the iPhone came out, “Airsource was set up before any of the app but there wasn’t a good app-store stores were really available,” Clarey explains, environment. Apple brought together a “there were a lot of challenges trying to lot of different factors in an ecosystem figure out how you would get your apps that gave developers a way to put apps in in front of consumers. You would have to front of the consumer in a very short space build an app, then convince an operator of time, and not just in one country or to list that app on their portal and they through one operator, but globally - I think would basically be in control of whether a that’s been critical, and obviously others user would see it or not. And only at the have followed similar paths.” end of that lengthy process would a user actually decide whether an app was worth downloading.”Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 31 the TV edition the TV edition 32 Power shift trying to achieve very clear in your mind are available for developers. Apps that do The success of these app stores has also as the developer, that way it comes across “Instagram has been a good job at performing a utility function placed a lot of power in the hands of clearly to the consumer.” very successful in are also very important.” consumers. As Clarey points out, “we can now put an app in front of a consumer More than anything, Clarey is keen to getting users to Spreading the word and they can decide right then and there see app developers embrace the many produce content Undoubtedly, social networking has an whether it’s worth spending money on, and advantages that smartphones offer. “People extremely important role to play in app the operator has absolutely no say in that. tend to buy apps which make good use of that other functionality, allowing users to share the That’s much better for me and it’s much better for the consumer.” the hardware they have. They spend a lot of money on these devices and they want people can then fun. “It’s been a big game changer the last couple of years”, Clarey says, “our users to see that those facilities are being used. consume, so for complain if there’s no way that they can Nonetheless, this shift has its challenges. So, it’s got to make good use of the screen put stuff on Twitter and Facebook, and Demand for free content and updates is space, location services and the networking the developer the platform vendors all have integrated high, and app developers have to think facilities.” it’s a great model services so when you develop an app carefully about their business model. there are now easy ways built into the OS “Obviously, free is very attractive because Getting creative because your users to integrate with social networking sites; you get plenty of users,” he admits, “the problem is those users might just want At the heart of many recent app-store successes are the themes of fun and are basically doing Apple recently announced that Facebook is going be one of their APIs [in iOS 6].” something for nothing, and over the long- creativity. “[Photo filtering app] Instagram all the work” Social networking sites can also benefit term this degrades the market somewhat. is a simple app and simple concept well from a focused and innovative approach, You’ve got to find some way of turning a delivered”, he explains, “a great example of and Clarey sees fragmentation as profit from people downloading your app, something which does one thing and does It’s also clear that a global market offers something to be embraced rather than whether that’s paying for it upfront, in-app it exceptionally well - I think those are the a huge number of possibilities meaning avoided. In effect, the success of sites such purchases or some other model such as future.” that, alongside focused functionality, as Pinterest suggests that there is huge advertising. For us, it’s setting a premium apps can also be designed for very possibility for coexisting networks that price and building a quality app; that’s the Clarey also believes that user creativity specific audiences. “They may not be as cater for specific interests, creating niche model we’ve chosen and so far it seems to plays a crucial role in the success of such outrageously successful as Twitter and communities that are much more intimate be working reasonably well.” apps, and this sheds some light on the Instagram have been,” he continues, and gratifying to the end user. Clarey says, motivations behind Facebook’s buyout of “however, there are still significant size “I think we may see two extremes here, one The drawing board Instagram. “I think creative apps are very niches available and I think there are a a focus on general sharing such as Twitter So what are the priorities when developing important, particularly when you require lot of quality gaps on the app stores for that’s totally public, and then something an app? For Clarey, focus is key. “Design users to generate content. Instagram has developers to address. We see problems that’s very private and intimate like Path, quality is so important to an app,” he says, been very successful in getting users to in all kinds of areas, whether it’s in the more one-to-one social networking.” “if you choose one function or one area of produce content that other people can then exercise market, lifestyle apps or cooking functionality, it’s easier to get the design consume, so for the developer it’s a great apps, there are still plenty of gaps which right than if you try and do too much. You model because your users are basically need to keep your concept and what you’re doing all the work.”Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 33 the TV edition the TV edition 34 TV and linked/supporting content on provide a cohesive and seamless a secondary device (be it a tablet or experience to the consumer whatever Final thoughts About smartphone). disruptive effect Smart TVs may have So what is excellence in app development? Nick Clarey is CEO and Director of in the short-term. In Clarey’s view, “the thing that defines a Airsource, an app development company Applications can help link that content great app is that it’s got to be very well based in Cambridge, UK. Before joining so that anything being watched on On the whole, the evolution to Smart designed. A lot of thought has got to go Airsource, he worked for Qualcomm and TV (the first screen) can either be TVs should present new opportunities into it, from what appears on the store to Motorola Australia. Airsource apps include researched or have an interactive to monetize applications as it has the user experience. How the user interacts Cellar, Optiscan and Barista, available for element through a supporting always been a struggle for developers with the application, how the application iPhone. application, thereby enriching the to make money incrementally from looks, how it works, the reliability of it; all experience. an app. The expectation amongst these things are factors in determining Want more information on this article? consumers being that, once they have whether or not an app is great.” -> Nicholas Peppiatt However, as tech markets increasingly bought the app, upgrades come ’free nicholas.peppiatt@gfk.com converge, we are likely to see the living for life’. Of course, this means that at “And it’s not just one of those things has to be right - you’ve got to get them all right, What is the potential room and bedroom become crowded some point it becomes unviable for which is a very high standard and I think impact of Smart TVs… from battle grounds for brands as they the developer to service the app and the perspective of an app compete to ‘own’ the TV experience. it eventually falls into disrepair. As apps which concentrate on those things This threatens to somewhat fragment such, app developers will be looking will end up winning. The great thing about developer? the experience for consumers and to partner with the more ’open’ social networking and the communication app developers will therefore need ecosystem offerings that allow the we have now is that quality apps will shine The key opportunity for the app to ensure compatibility with multiple flexibility needed to mitigate these through in the end and I think that’s an developer lies in capitalizing on device and software ecosystems. Of current shortcomings, and ultimately empowering thing for the developer and the increased interaction between course, the most successful developers make the TV/app experience more great for the consumer.” broadcast or stored content on the will be ones that look for ways to rewarding and fairer for the consumer.Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • the TV edition 36 Why a successful indie media industry is good for the consumer by ryan garner The digitization of media content distributed across the internet has opened up new opportunities for independent (indie) media producers. There are fine examples of indie producers pushing the creative boundaries of music and games production. The advent of Smart TVs could be the catalyst that opens the door for more indie film and TV makers to have a similar impact. The internet has had two major effect on the take-up of digital books. The transformative effects on the media and introduction of Smart TVs will bring the entertainment industry. Firstly, it has internet’s voluminous video content to leveled the playing field in respect of the living room ready to be consumed on the distribution and access of content. demand. In the digital age, the consumer Secondly, it has severely disrupted the retains control over what, when and how established business model that media they consume media content which is companies have relied on to generate having positive effects on the diversity revenue. While the internet as a medium and creativity of the production of indie is the disruptive factor, the development content. of new platforms designed for digital consumption has accelerated the digital All the way back in 2000, Levine et al. shift in consumer behavior. The iPod has described the internet as a way to, “enable enabled widespread consumption of digital new micromarkets to coalesce around music and the Kindle has had a similar shared areas of interest, thus overturning
  • 37 the TV edition the TV edition 38 “independent Twitter is the clearest example of this - an open network where conversations are “Indie developers Indie developers are also having a significant impact on the gaming industry. developers see organized by hashtags and free for anyone are also having a Earlier this year, ‘Journey’ - a game to join. In the music world, Last.fm has developed by a small independent called their role as broken down the formulaic boundaries of significant impact ‘thatgamecompany’ - was released on injecting fresh new categorizing music into genres; instead, on the gaming the PlayStation. While Sony funded the organizing the music world around user- development of the game, the creativity ideas into a market generated tags, a far more creative way to industry. Earlier and ideas were generated by a new that only caters aid music discovery. this year, ‘Journey’ generation of games developers looking to evolve the medium into a more challenging for a mainstream This new digital landscape has created - a game developed and emotional experience. In an interview audience.” opportunities for the production of independent content. Indie music has by a small with the Guardian, Stephanie Beth, creator of a documentary film about indie gaming, been commonplace since the punk era independent called said, “The interface between art and in the 1970s. This D.I.Y. approach to technology is becoming more sophisticated music production and distribution is now ‘thatgamecompany’ now and that means people are not as flourishing more than ever in the digital - was released on impressed with advanced technology for era. In 2011, ‘Arcade Fire’ won the ‘best technology’s sake” 3 many fundamental assumptions of album’ GRAMMY which meant that, for the PlayStation. conventional marketing”1. Fast forward 12 an unprecedented third straight year, The focus for indie games developers years and this assertion has been realized an independent artist had won that is the strength of concept and level of through the rise of the social internet - prestigious award. Outside of music, creativity at the heart of the game, rather the zeitgeist of the digital age. It has been independent authors such as Kerry than advanced technology. The cost of built by humans for humans to express Wilkinson have had phenomenal success production for the best-selling games titles themselves, to escape from the mundane using Amazon Kindle’s self-publishing tool. professional indie scene, there is a long tail is soaring, and can be as high as US$50 and to engage with like-minded people. In Q4 2011, Wilkinson claimed top spot in of self-published artists using free services million dollars. With investment costs so the Kindle bestsellers list2 . Even below this such as Myspace, SoundCloud and Amazon high, games publishers cannot afford to 1 The Cluetrain Manifesto (2000), Levine, Locke, Searls to promote and distribute their work. and Weinberger, US: Basic Books 3 The Guardian Website 2 The Bookseller website
  • 39 the TV edition the TV edition 40 The role of indie media content from bigger media companies like fail. To safeguard their investment, they companies to pitch ideas as big media is hugely important. As we have Sony and thatgamecompany. With are extending the life of popular titles by companies look to play it safe. However, witnessed in the music and gaming the investment in new creative indie creating sequels and building a brand that digital-first companies such as Hulu are industries, indie content is critically content, advanced technology and helps drive awareness and loyalty with taking the opportunity to invest in low- acclaimed and produces fresh and production values do not necessarily gamers. Independent developers see their budget independent productions, such creative ideas that challenge the have to be devoid of well-developed role as injecting fresh new ideas into a as Linklater’s ‘Up to Speed’. Hulu aims to established order of the mainstream. concepts and fresh original thinking. market that only caters for a mainstream become a place for original content as well This trend is increasingly evident as back catalogue, and indie productions in the TV industry and is likely to Want more information on this “The TV industry are the primary source for this refocus. further flourish in the coming years article? as viewers recognize the benefits is now sharing Hulu, Netflix and LOVEFiLM have a of on-demand content via Smart -> Ryan Garner strong digital presence across multiple ryan.garner@gfk.com the advertising devices, including TV. With good original TVs over the limitations of a rigid broadcast schedule. As a result, indie revenue with programming they could challenge content will gain greater exposure, the dominance of traditional media potentially attracting investment Internet-based broadcasters. The advent of Smart TVs media companies will provide a platform (similar to the iPod and Kindle) that could popularize their and has less money These developments present a offerings or backing the strongest to invest in its double-edged sword to broadcasters. offering with exclusive content. “Hulu, Netflix and programing” On the one hand, they have much less LOVEFiLM have a control and exclusivity over content as Secondly, Smart TVs will have more they’re pushed from the value chain advanced processing capabilities, not strong digital and battle to cater for an increasingly only to produce hyperreal 3D and HD audience. ‘Journey’ was a small-budget presence across fragmented audience. Yet on the experiences but, with extra processing investment by Sony and other publishers other hand, a wealth of opportunity power and new ways to make content are hurriedly scouting around to find the multiple devices, exists to repackage and sell content, more interactive. These present next big thing. including TV. With making it more interactive and forming partnerships to improve cross- further opportunities to provide a Freemium model of provision, with Unlike the well-established indie music good original platform provision. basic content charged at lower rates The impact of ‘Smart TV’ or for free, and increasing rates for industry and the burgeoning indie games programming they So, how do broadcasters ensure that premium, add-on and cross-platform scene, indie TV is practically non-existent. from the broadcaster’s The last 10 years have been turbulent could challenge perspective they are not left behind and how do services. times for the TV industry. As a medium, they monetize the new opportunities its influence has diminished with content the dominance of that Smart TVs present? Finally, the interactive and real time Content provision was traditionally a served up on the internet via laptops, traditional media linear process, with both scheduling Firstly, Smart TVs themselves will capabilities of Smart TVs (coupled with the second screen) allow broadcasters tablets and mobiles having captured an increasing share of consumers’ time. broadcasters” and creation in the hands of the provider. Today, audiences have greater be ‘connected’ not only to the Cloud, to improve their offering for ‘real- Consequently, it is now sharing the but to other devices too. Their TV’ content, making voting, betting, control over their viewing experiences, advertising revenue with internet-based introduction into these ecosystems shopping, and advertising a more and developments such as broadband media companies and has less money to means that forming partnerships with immersive and smooth experience for internet and smart mobile devices are invest in its programing. Much like the cross-platform software companies audiences. helping audiences to personalize and larger games publishers, content is created and device manufacturers is critical. share content. Smart TV is the latest by larger production companies with big content, both mainstream and indie. Yet the No doubt there will be competition These developments and the ongoing offering, providing a platform that, budgets such as HBO. According to Richard challenge will be in persuading people who as different ecosystem offerings ‘smartening’ of how content is used not only brings content together, but Linklater4, an indie filmmaker, it has become will enjoy such original content to actually battle to ‘own’ the consumer wallet. means that providers must move also challenges the way that people a lot harder for independent production watch it, without the marketing spend of Broadcasters will need to choose quickly, yet strategically, to ensure experience it. the big players. between providing multi-format they can adapt to this new TV era. 4 The Indiewire website
  • 41 the retail edition the TV edition 42 natural user interfaces are here to stay By colin strong You might have seen the latest TV sets that can be operated by the wave of a hand, or maybe you’ve tried a few voice requests on your smartphone. These are some of the newest incarnations of natural user interfaces (NUIs). That is, a way of talking to our technology that is more natural: using our own voice, gestures, movements, situational context, body-states and more. Why natural user interfaces? are the elderly and the disabled, (who One of the early intentions behind natural may struggle with buttons). Beyond this, user interfaces was to make technology natural user interfaces can also open up less intrusive. By harnessing natural areas previously available only to people ways of telling our technology what we with technical training. A new project that need, rather than pressing buttons and illustrates this is being run by a Stanford puzzling over menus, the hope is that using University group1 . They have developed technology will require less effort. And a program called Dryad to allow the user eventually, our technology will start to do to design an infinite variety of trees for a its job in the background, with little or no virtual world. The interface allows users input from the user. to zoom in and around a large selection of trees in the style of Google Earth, Natural user interfaces can also make changing the designed tree to be more experiences of technology far more like those which the user moves towards. compelling. If the input method is easy, The designer can do his or her work, with involving and natural, experiences like no need to learn complex scripting or gaming and education can become more advanced computer-aided design (CAD) immersive and enjoyable. Imagine being packages. This type of interface could able to conduct a virtual orchestra with potentially transform design work. your arms, bringing out the individual parts with a gesture and swelling the volume Limitations with a swoop of the arm. While the possibilities of natural user interfaces can be exciting, it’s not all The ability of natural user interfaces to good news. Many of these interfaces still bring technology to people who may require the user to learn how to input be excluded by the current limitations their commands. Gestures are particularly of graphical user interfaces is also a problematic as there is no common, noteworthy benefit. The obvious examples 1 http://dryad.stanford.edu/Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 43 the TV edition the TV edition 44 “Natural user Key developments in natural user interfaces “our technology parts are. Once it has located the basic skeleton, it can interpret commands based interfaces can The major tech players have been busy can increasingly on movement. This means that a user can trying to make the tantalizing dream of ski down a virtual mountain or hit a virtual make experiences sci-fi, Matrix-inspired interfaces a reality make decisions tennis ball without ever touching a button. of technology far for us in our everyday lives. Touch and about when to voice interfaces are becoming increasingly Another natural interface possibility for more compelling. If sophisticated and are inching closer to interrupt us by games centers on brain control. A key the input method realizing Hollywood dreams. The intuitive touch interface showcased in Microsoft’s interpreting our player in this area is Emotiv Systems2 , a neuroengineering company that has is easy, involving ‘NUIverse’ program is close to the silver- location and developed a headset with electrodes. and natural, screen ideal. This program uses different touches to move around and drill down into context” The headset collects data about facial expressions and can read some basic experiences a wealth of information about the planetary emotions. It can also detect the mental system. ‘signature’ of simple actions like ‘raise’, like gaming and ‘lower’, ‘push’ and ‘rotate’. the user looks away or open a link when it education can Perhaps one of the most interesting is looked at. natural user interface developments in While the possibilities of such technologies become more smartphones is in the area of ambient are exciting, they still seem to be at an In addition, our technology can increasingly immersive and technology. Think of this as the smartphone logging or sensing what the make decisions about when to interrupt us early stage. The future is likely to hold much more sophisticated and immersive enjoyable. user is up to, and making decisions or by interpreting our location and context. experiences. suggestions as to what they might need. For example, if a user is reading a book on The interface becomes invisible because the sofa, the smartphone might decide to Conclusions there is no need to make requests; all turn the TV volume down, or if the user is It seems evident that no technology player intuitive way of communicating basic the inputs are gathered from the user’s in a library, the phone won’t ring. can be complacent about what natural commands with hands. Detractors would context. For example, in attempting to user interfaces might mean for their argue that anything that has to be learned predict a user’s next move when a call is As speech recognition becomes more own product and competitive position. isn’t natural or easy. Voice interfaces, missed, ‘calling back’ becomes an automatic reliable, applications that log and record As vendors create ever more intelligent, although already impressive, can easily action that occurs when raising the phone our conversations will be able to make intuitive and compelling experiences, those misinterpret a key word, rendering the task to one’s ear. At a more sophisticated level, increasingly-sophisticated decisions that really excel at creating natural user impossible to complete. The technology a smartphone can offer options based and suggestions about what we might interfaces are likely to rise to the top. to clarify and modify requests is still not on the user location and context. For want. This could involve suggesting reliable enough to completely replace other example, the user walks onto a train and music or reading material based on our interfaces. the phone offers a few relevant choices of conversations or even suggesting an action 2 http://www.emotiv.com/ entertainment (the music that the user list at work based on a meeting we’ve just There is also the issue of control for likes, or a book by a favorite author). The had. detailed tasks. Many of the interfaces user steps off the train and already the that use sensors can only detect large mapping/navigation software is to hand. Natural user interfaces in gaming The gaming world is keen to embrace the Want more information on this article? movements, making fine work - or even -> Colin Strong ordinary office computing - difficult without Some advances are also making the enhanced and more immersive experience offered by natural user interfaces. colin.strong@gfk.com the aid of some other input device, such as devices easier to read by tracking and a glove. understanding eye movements. Future Microsoft’s Kinect and Nintendo’s Wii are versions may be able to detect the need the key players in this area. The Kinect to scroll down and will do so automatically. technology uses a depth sensor to locate They could also turn on power save when the user and to work out where their bodyCopyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 45 the retail edition the TV edition 46 Shortcuts: consumer decision making in the real world by oliver robinson Buying a TV set was my first significant purchase decision as an adult. I went straight for the biggest one I could afford; an ex-rental set which took two people to lift and was branded with a mysterious and unpronounceable name. A few weeks later, the TV set broke down. The lesson was a simple one: you get what you pay for - and every purchase decision has been more complicated since. Weighing up every element of a TV set more likely, excess information and partial purchase would have been tricky enough comprehension) and limited time. Under back then, but in the intervening years the these circumstances, where a leisurely complexity of choice has spiraled. Beyond evaluation of all contributory factors isn’t traditional purchase considerations such an option, our brains require more simple as price, screen size and brand, consumers coping mechanisms. are now faced with an array of acronyms (HD, LCD, 3D) and indecipherable technical Fast and frugal heuristics describes one specifications (refresh rate, response such mechanism offering a more plausible time, pixel resolution). How do they cope reality, whereby we utilize simple rules with all this information, and how do they to make decisions in an effective way. In ultimately make their decision? essence, it suggests that when faced with complicated, multifaceted choices we (often Think fast, think frugally unconsciously) resort to much more limited Traditional views of human behavior (and occasionally singular) information to (and, consequently, market research make our decision. methodologies) have assumed that when presented with complex decisions like For example, one study1 in the area these, we’re capable of making rational analyzes bail decisions made by and thoughtful choices. However, recent magistrates (court officials in the UK) in thinking amongst behavioral economists the English justice system. Despite the suggests that there may be other forces inherent importance of these decisions, by at play. their nature they’re often time-pressured The reality of consumer-purchase decisions 1 Dhami, M.K., & Ayton, P (2001) Bailing and jailing the is often one of partial information (or fast and frugal way, Journal of Behavioural Decision Making, 14, 141-168Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • 47 the TV edition the TV edition 48 and based on incomplete or complex information. The study found that under larger than 80cm. 3D TV did not exist then, and connecting TV to the internet had also “The advent of This could certainly be contributing to price being the key determining factor in these circumstances, verdicts could often not yet been realized. Internet-enabled TV set purchase, with technical innovations be traced to a single factor. While this rarely packaged in a way that resonates determining factor varied from magistrate Since then, consumer demand in TV TV offers a great with the general public. Essentially, there is to magistrate, the correlation between it purchase has increased with 253 million opportunity to currently little on offer to drastically shift and their decisions was consistent across all units being sold per annum (an increase perceptions of value, leaving a struggle to of their cases. of 37%). Today, 95% of TV sets purchased shift messaging upsell the latest technology to consumers What does this mean for consumer are flat-screen TVs with screen sizes up to 150cm or even more. Close to 20% of back to the who have a strict budget. decision-making? To find out, we applied today’s worldwide sales of TV sets are 3D experiences The conclusion should be clear: in order the fast and frugal model to consumer TVs with approximately 30% able to get content from the internet3. It should also be and benefits to differentiate in an increasingly uniform and crowded television marketplace, “price tends to noted that, while the average spend today that television communications with potential customers is on the same level as in 2006 (€447), need to focus on something more palpable emerge as a key consumers are getting larger screen sizes, facilitates” than technical specifications. The advent more features and much better picture of internet-enabled TV offers a great driver of choice in quality for their money. opportunity to shift messaging back to the categories where experiences and benefits that television As with the magistrates’ study, different tell us about the importance of premium facilitates. there’s little consumers display different determining brands; it currently has little bearing on differentiation factors in their decision-making; in the area their decision to consider purchasing a TV set. More worryingly for those same manufacturers, the current focus on of TV set purchase, at the moment price is across the king. This emerges as a critical factor 524 sustaining innovations (and a sense Having said that, it seems that TV is likely competitive set” times among 978 respondents. This is a long way ahead of the screen-size factor to be the next category absorbed by the that these technical improvements are increasingly beyond the needs or interests which is in second place (mentioned 124 growth of branded product and service of the mass market) suggests that the times). ecosystems (rather than the essentially category may be ripe for disruption. This behavior in the area of TV set purchase 2. stand-alone TV sets in most of our living could mean a product that competes In short, by presenting respondents with This shouldn’t come as a huge surprise; rooms at the moment). It will therefore be asymmetrically with these sustaining a range of TV sets of varying price, brand few of us are fortunate enough to enter interesting to monitor any growth in the technical innovations, redefining the user and specification, we were able to mirror into significant purchase decisions without necessity of purchasing certain brands; experience along a different dimension. In the individual-level analysis used in the price as a barrier. Instead, it is likely that that is, those that will integrate best with one sense, the market is more competitive magistrates’ study to establish whether this initial analysis is illustrating a process consumers’ other mobile devices. than it’s ever been, but in another it might each respondent had similar determining of shortlisting - the elimination of all just be there for the taking. factors; single cues that drove their the unfeasible options from a crowded So what does the future hold? decisions. marketplace - in order to assess the In general, price tends to emerge as a remaining options in greater detail. key driver of choice in categories where Want more information on this article? Money makes the world go around there’s little differentiation across the -> Oliver Robonson In 2006, the global average consumer More interestingly and crucially for competitive set. Essentially, cost becomes oliver.robinson@gfk.com spend on a TV set was €448. At that time manufacturers in the space, brand (with 69 the most tangible element for comparison around 185 million TV sets were sold mentions) rates no higher than the plethora where product-level features are either around the world with only 30% of those of technical specifications. According to this commoditized (i.e. uniform across the TVs being the ‘flat screen’ variety with the UK-based study, whatever consumers may category) or unimportant (i.e. their benefits majority of the remaining 70% having big aren’t being effectively communicated). The and heavy tube boxes with screen sizes no 3 Global TV Demand Projector June 2012/ GfK Bou- latter tends to be a particular problem in tique. Based on Retail Panel Audit of GfK Retail and categories where consumers are confronted Technology in more than 90 countries.In cooperation 2 GfK study conducted with 1,500 adults in the UK with CEA in US and Canada with technical features or functionality between March- April 2012 rather than experiences or solutions to problems.Copyright GfK | TechTalk Edition Two 2012 Copyright GfK | TechTalk Edition Two 2012
  • the TV edition 50 Smartphone experiences in emerging markets By Leanna Appleby & Emma Roberts The smartphone is no longer a device seemingly reserved for the Western consumer. Its worldwide proliferation has happened simultaneously with an increased complexity in the purchase process of these devices. As such, a number of our colleagues in several key emerging markets have been working together to further understand the local smartphone experience and the challenges of shopping for smartphones, particularly in rural areas. Through a process of qualitative shopper channels where they can rest assured that diaries and expert interviews, we have the handsets on offer are the genuine compiled five key trends that emerged articles. from the results. The increased desire for online Shopping on the internet raises a variety The demand for authenticity of concerns including product authenticity, Smartphone purchasers set great store by reliability of the service, and delivery owning an authentic, branded smartphone. restrictions to rural areas. Despite this, Through our research we observed rising shopping online is increasing because of levels of frustration with the abundance the convenience, or the perception that of replica handsets that smartphone products are often cheaper using this purchasers in emerging countries channel. In the next few years, it is possible encountered. They want the real thing that online shopping in emerging markets from a trusted retailer. A key pain point is will follow a similar pattern to that of more the difficulty in differentiating between a developed markets; that is, trying before fake and a real device at the point of sale. you buy in store but making the final With no guaranteed way of determining purchase through official online sites to this, smartphone shoppers are keenly save money. This desire for online shopping anticipating the arrival of legitimate (or means that there is an opportunity for what can be described as ‘official’) purchase manufacturer websites to offer smartphone
  • 51 the TV edition the TV edition 52 days of fierce brand loyalty may well be emerging markets is increasingly savvy Ashish Shrestha, Mohamed Bakr, Hossam “There is a common numbered. Smartphone brands will have and demanding. They are impatiently Qader, Yildiz Turan, Elif Pars, Parviz, Dirk misconception to work harder to retain their customer waiting for the retail infrastructure Moersdorf, Jean Moolman, Leonardo base in emerging markets. Improving the to catch up with their growing desire Melo, Cynthia Vieira, Stephane Tchies, that consumers in retail experience will be critical to ensuring to explore and consider a wider range Molemo Moahloli, Namrata Priyadarshini, emerging markets satisfaction and loyalty across the entire of handset brands. With the potential Neetu Sehgal and Rusudan Nadiradze consumer journey. to leapfrog existing infrastructure are fiercely brand barriers, the smartphone is set to Markets explored: loyal. Instead, The rise of the discerning techy Owning a smartphone in emerging play an even more central role in consumers’ communication ecosystems Nepal, Turkey, South Africa, China, Brazil, Egypt, Ghana, India, Tajikistan and they are carefully markets is often aspirational and linked to than in Western countries, and existing Georgia status. However, as the market matures brand loyalties may be set aside as the watching as we are beginning to see the rise of the need for a richer set of experiences the competitive ‘smartphone replacer’. Before long, grows. Want more information on this article? -> Leanna Appleby smartphone consumers in emerging landscape evolves markets will no longer only consist of With thanks to: leanna.appleby@gfk.com and the choice of first-time owners, but will develop into second- and third-generation smartphone ulia Liu, Willis Huang, Frank Landeck, brands available owners. These smartphone replacers are recognizing the broader benefits that these to them grows devices can bring above and beyond being rapidly.” a status symbol. As such, brands will have The problem for some people is that Even without a proprietary system to prove to consumers that they are not Smart TVs aren’t particularly, well, in place for any device manufacturer, just offering them a product that will make smart. Compared to other smart striking up the right partnerships them look ‘cool’, but that can seamlessly devices, many connected TVs offer with content providers and developers integrate with their lives, fulfilling an a relatively clunky experience in should be able to create such links. shoppers products through their branded increasingly diverse set of needs. functionality, apps and usability. websites, while simultaneously reassuring However, there is another important purchasers that they will receive a reliable Leapfrogging poor infrastructure However, as they improve as products, consideration underlying all of this. As service, guaranteed delivery and an Currently, the infrastructure for home one of the keys that will make TVs TVs became Smart, they effectively authentic product. broadband and fixed landlines is poor truly ‘smart’ is their integration with became the missing link in the oft- for consumers in emerging markets, mobile devices. Indeed, in many ways discussed digital ecosystem; a concept The end of forced brand loyalty especially for those in rural areas. As the device manufacturers will continue likely to grow in importance to the There is a common misconception that cost of mobile data starts to decrease, What is the potential impact to hold the upper hand, with some of extent that new device purchase consumers are realizing that their needs the most exciting developments in decisions will be influenced by their consumers in emerging markets are fiercely of Smart TVs from the brand loyal. Instead, they are carefully for home broadband or a fixed landline TV (and associated media) based on ability to seamlessly integrate with can be addressed through a smartphone, perspective of a mobile the possibilities that ‘second screen’ existing devices, services and content watching as the competitive landscape evolves and the choice of brands available whether that is making a phone call, device manufacturer? technologies offer. in a virtuous circle. to them grows rapidly. What has limited sending an SMS, browsing the internet or checking emails. Over the next few years, as As mobile device screens have grown Multi-screening entertainment, with The TV is undoubtedly going to their brand consideration to date has smartphone ownership augments, brands in size, facilitating the provision of the smartphone and tablet as the become one, if not the, central been the challenge of actually getting will be able to tap into the consumer desire richer experiences to consumers, it companion device, will build a truly component of that ecosystem. The their hands on a wide range of brands and to be ‘connected’ without having to rely on was inevitable that the largest screens connected and complementary ‘social’ danger is that device manufacturers models to test and evaluate in store. - or pay for - broadband infrastructure or of all would join the party. And so, TV experience, sharing interactive who do not offer a TV proposition, a additional hardware. with the addition of the ubiquitous services in a manner that doesn’t strong media marketplace, or at least With global A-brand mobile phone ‘Smart‘ prefix, internet connectivity intrude upon a living room’s collective an OS platform directly compatible manufacturers penetrating emerging Final thoughts and various other innovations, the TV viewing experience and offering myriad with other ecosystem devices, may markets and opening the supply chain, With greater appreciation of the wider set has now morphed into an oversized possibilities to consumers, advertisers effectively find themselves sidelined more consumers will be able to actively benefits of smartphones beyond a mere Smartphone in the corner of the living and broadcasters. within a couple of years. choose the brand that suits them, not status symbol, the smartphone shopper in room. just the brand available to them. Thus, the
  • 53 thethe TV edition retail contact If you would like to speak to us about anything featured in TechTalk, simply get in touch by contacting our editorial team techtalkinfo@gfk.com. Alternatively, you can keep up to date with TechTalk by visiting our blog at www.gfktechtalk.comCopyright GfK | TechTalk Edition Two 2012