The Near Future of Media

UNDERSTAND TODAY. SHAPE TOMORROW. 1 NEW MEDIA FRONTIERS. LHBS // THE NEAR FUTURE OF MEDIA NEW MEDIA FRONTIERS The Near Future of Media Q3 2015

ABOUT. At LHBS, we are curious about brand opportunities that are at the crossroads of emerging consumer needs, enabling technology and market dynamics. What we learn, we like to share. That is why we have created the Near Futures Series of inspiration and insights reports designed to highlight what is happening today and how it can shape tomorrow for brands and business. Our next issue is on The Near Future of Media. We hope you enjoy this deck and are able to be inspired by it in your innovation process. This report is powered by signs from the LHBS Inspiration-Hub that systematically tracks changes in culture, markets and technology, and shows how these signs collectively point to a bigger story. INTRODUCTION UNDERSTAND TODAY. SHAPE TOMORROW. 2 Discover Deﬁne Develop Deliver UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. While the landscape of content is rapidly changing, this fast pace opens opportunities for innovation in the way content expands, reaches and captivates audiences. Key content partnerships are forming to keep up with where audiences are going, while the familiar channels are being constantly invigorated with new means of storytelling. Publishers are constantly raising the bar on not only how content is delivered, but also how audiences experience content. Things are getting more immersive, and technology is helping to transport audiences beyond mere spectatorship to a more active, sense-heightening participation. Fabiola Lewandowska Consultant at LHBS lhbs.com | ﬂ@lhbs.com INTRODUCTION 3 INTRO DUCTION. LHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. CONTENT. amplify EXPERIENCE evolve CHANNELS multiply POSSIBILITIES 4 CONTENTLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 5 EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA evolve CHANNELS

UNDERSTAND TODAY. SHAPE TOMORROW. This also increases the competition of how to get consumer attention better and how to keep it longer. Media channels as well as brands are exploring innovative ways and opportunities for not only what kind of content is delivered, but also how. Therefore, there is an increasingly growing opportunity for companies to capitalize on the front-end of publishing by letting the audiences explore the content in an ever-changing way. 6 TREND OVERVIEW // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA evolve CHANNELS Today, virtually every social media channel is becoming a publishing platform. As soon as media companies master using each to its full potential, they start looking for new techniques to revamp their content and deliver it in a more captivating way.

UNDERSTAND TODAY. SHAPE TOMORROW. 7 Soccer Game Livestreamed via Social Media Explore Sign Univision Deportes and Snapchat have been recently working together to show highlights of the USA vs. Mexico game in a completely new way– through the social media platform Snapchat. The Live Story is the ﬁrst time Snapchat has partnered with a broadcast network to deliver live events footage to their audiences. SIGNS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 8 Instagram Promotes Music Explore Sign Instagram launched a completely new music- dedicated account @music where they showcase the music experience on Instagram on a weekly basis. It’s a completely new approach coming from this visually-oriented platform. By doing this, Instagram re-thinks content in the form it is now, to actually what it might become. The account proﬁles artists who use Instagram and also highlight music photographers, album cover illustrators, instrument makers, and also fans, featuring the music and the story behind it. Instagram uses @music to bolster a new music- themed monthly hashtag project. Viewers are also able to listen to 15-second previews of the songs. SIGNS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 9 Instagram Magazine Explore Sign Ballantine's is appealing to the platform's whisky drinkers with a new Instagram-only “magazine,” which is another spin of how to make use of this platform in a different way. The Ballantine's magazine– called "W"– leverages the Instagram grid collage so users can scroll down to read the proﬁle page like it is a print publication or website. Users who wish to learn more about a speciﬁc feature can tap on the image which will allow them to delve deeper into the content. The magazine deploys the grid collage in both portrait and landscape view, so that readers can enjoy various infographics, design features, and photos in both layouts. SIGNS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. Livestreaming Enters Twitter Burberry used Twitter’s possibilities in a new way and broadcasted its "London in Los Angeles" show via Periscope. Audiences who followed the Burberry Periscope account were given an all-access pass to the show, from the red-carpet arrivals at the venue to a front row seat during the show. Twitter Triggered YouTube Livestream NARS re-deﬁned Twitter for their product launch. With every Tweet from the audience, parts of the NARS orb were being chipped away, real-time, by pneumatic hammers. Users could watch the show on YouTube or livestream it from NARS homepage. One lucky tweeter from each region would receive the collection for free. Customization of YouTube Content Volkswagen is using YouTube’s potential and all its functionalities in an innovative way by allowing viewers to customize the story they are watching in their ad. There is a button at the bottom that allows– for example– to interrupt and change the course of the story. 10 SIGNS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA Explore Sign Explore Sign Explore Sign

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 11 5000+ Source: SJ Insights brand message exposures a day per person WHY IT MATTERS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA Daily Ad Exposure

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 12 hours/day Source: We Are Social average time actively spent on social media 2.4 WHY IT MATTERS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA Digital, Social, Mobile Study

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 13 Percentage of people that use social media to stay current with what's going on in the world. Source: Cassandra Report 31% 69% 69% WHY IT MATTERS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA Digital Intimacy

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 14Source: Yahoo Business The average consumer mentions brands 90 times per week with family, friends and co-workers. WHY IT MATTERS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA 15 Social Media Statistics That Every Business Needs to Know

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 15 No. 1 reason for unfollowing brands on social media is too much self-promotional or uninteresting content. Source: Hubspot Blog WHY IT MATTERS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA Why people unfollow brands on social media

UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATION Existing channels and their purpose should be re-thought. Brands should evaluate if they're using their existing channels to a full potential, be creative about how to expand the digital playground and how to present the content in a new way. 16 IMPLICATIONS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 17 IMPLICATIONS // EVOLVE CHANNELSLHBS // THE NEAR FUTURE OF MEDIA IMPLICATION Constantly evolving the delivery solutions will keep the audience interested. By making the unsuspecting audiences being continually surprised, consumers will be eager to interact with a new spin on formats. Brands should make it playful and let the audience dive deeper through new layers or interactive elements.

AMPLIFY EXPERIENCE UNDERSTAND TODAY. SHAPE TOMORROW. 18 LHBS // THE NEAR FUTURE OF MEDIA amplify EXPERIENCE

UNDERSTAND TODAY. SHAPE TOMORROW. Technology is being used to amplify the effect of what people see and what they feel. It seems like we are taking the first steps into this sci-fi reality— wagering on a marketing future where content will create visceral consumer experiences that raise the sensory bar higher and higher. It seems that we are moving away from spectatorship towards physical and emotional participation. The viewing experiences keep getting richer with using emerging technologies such as virtual reality, and high-definition cameras. Through new uses of technology, they are adding extra dimensions of personalization and consumable perspectives, while transforming mere viewership into wow moments. 19 TREND OVERVIEW // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA amplify EXPERIENCE Media companies are using new techniques to awe their audiences and amplify their experience through technology and provocation. This is broadening the horizons of how media is consumed, while supercharging the senses of viewers.

UNDERSTAND TODAY. SHAPE TOMORROW. 20 3D Projection in Sports Arenas Explore Sign Sports brands are wowing their audiences through Augmented Reality 3D projections in their arenas. These visually-stunning pre-game presentations combine live and digital elements, and even engage fans in attendance for interactive games. This projection technology opens up a fertile ground for virtual advertisement and brand-sponsored entertainment during live events. SIGNS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 21 VR-enhanced Sporting Events Explore Sign Virtual reality is changing the way we will view broadcasted sporting events. The technology is amplifying and de-limiting the ways in which spectators can consume these sporting events. The broadcasting in both 180- and 360- degree viewing options provides a feeling of being at the course like no other broadcast can. After exploring virtual reality at NASCAR events, NextVR and FOX Sports are now bringing VR livestreaming to the 2015 U.S. Open golf tournament. SIGNS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 22 Patrón's Storytelling Through VR Explore Sign Patrón has used a drone equipped with 360-degree cameras to bring audiences inside its Hacienda, where their tequila has been handmade since its origins. With this storytelling capability unlocked by cutting-edge technology, fans of the brand can see the world from the perspective of a bee, Patrón's icon, as it gives a virtual tour of the Hacienda’s agave ﬁelds, distillery and bottling room. Audiences get to see all the steps that go into the traditional, time- honored and ancient process of making a bottle of Patrón. SIGNS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. Linking Runners with Health Food The Nike Food Truck, a pop-up raw food cafe sprung up alongside the Berlin Women’s Marathon, inviting Nike Fuel Band users to pay for food with kilometers. The campaign shows not only that consumers are no longer passive spectators, but also that experiential is no longer limited to footfall, but easily connected to digital. U2 Livestreams with Meerkat U2 has recently embraced livestreaming by letting its fans broadcast their concert experiences via Meerkat. The livestreams were then projected onto a massive on- stage screen, turning the fan’s personal perspective into a huge second screen for the whole audience, as well as broadcasted to U2 fans elsewhere. Exploration through Soundscapes The train company Thalys has deployed three interactive billboards that contain sonic installations with thousands of soundscapes recorded throughout Europe. The campaign encourages travel by letting passersby experience the sounds of another city. 23 SIGNS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA Explore Sign Explore Sign Explore Sign

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 24 By 2018, manufacturers of VR and augmented-reality hardware—including smart glasses and headsets—will generate $1.06 billion in global revenue. Source: Markets & Markets WHY IT MATTERS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA AR & VR Market Study

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 25 Of the 124,000 VR videos uploaded to YouTube, 11 percent were uploaded between November 2014 - January 2015. Source: Tubular Labs WHY IT MATTERS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA Virtual Reality on YouTube

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 26 71% Tablet owners that used their devices as second screens to enrich their TV experience at least once a day. Source: Nielsen 59% 41% 41% WHY IT MATTERS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA The Digital Consumer

UNDERSTAND TODAY. SHAPE TOMORROW. 27 IMPLICATION New storytelling techniques transport audiences into immersive environments. Brands should take an advantage of what VR offers for storytelling: a hybrid of mobile, gaming, and traditional cinematic spectacle and create multi-sensory experiences that go beyond sound and visuals by making immersive environments that target all the senses. IMPLICATIONS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATION The audiences’ senses are taken to the next level with enhanced broadcasts and experiences. Brands should use this emerging technology to grab attention, or to make a splash and show audiences an up-close perspective of the content they haven’t seen before. Attaching cameras to protagonist consumers creates real-time broadcast experiences as well as enhanced formats for channels like YouTube. 28 IMPLICATIONS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATION Best experiences are created at the convergence of content and consumer technology. Embracing livestreaming and other ways in which the perspective of audience members can be showcased and distributed during events and through content streams. Wearable technologies can be integrated into events, such as by making the data they collect into a digital currency to give something to the consumer in return for their loyalty & participation. 29 IMPLICATIONS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

MULTIPLY POSSIBILITIES UNDERSTAND TODAY. SHAPE TOMORROW. 30 LHBS // THE NEAR FUTURE OF MEDIA multiply POSSIBILITIES

UNDERSTAND TODAY. SHAPE TOMORROW. However, we are also seeing a trend of companies opening up their data pools to other media partners in order to create new stories with the help of their partners' expertise. As this expertise can come in the form of journalistic talent, multimedia production, content distribution, we are seeing these partnerships take shape in all popular channels. Brands are also relying on their consumers to tell them what's best, and many are crowdsourcing ideas to strengthen their brand stories, drawing in ideas that help them come up with content. In a similar vein, channels are creating spaces where their main content producers can hone their skills and produce even better material. MULTIPLY POSSIBILITIES 31 LHBS // THE NEAR FUTURE OF MEDIA multiply POSSIBILITIES We have long known that partnerships between media and brands can have tremendous beneﬁts. New stories can be created, reputations strengthened, and new audiences reached.

UNDERSTAND TODAY. SHAPE TOMORROW. 32 Platform, Media and Brand Explore Sign Pinterest, Vice and Bank of America collaborated on a marketing effort for the bank called The Business of Life. The digital video series is produced by Vice, sponsored by Bank of America and promoted on Pinterest. Pinterest, with its Pinsight Labs, provides insights on what ﬁnancial topics might interest Millennials. Vice then produces a personal ﬁnance series to attract them. SIGNS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. 33 Wired and Netflix Explore Sign Wired has combined its expertise about digital culture with the data of Netflix, in order to produce an interactive feature that details how TV has changed throughout history. Conde Nast– Wired's parent company– has confirmed that the engagement time on the interactive story was 96% above industry averages for advertising content, which prominently places Netflix in the dialogue about innovation in TV and also giving readers some very engaging and shareable content. SIGNS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. Crowdsourced e-Books Amazon developed a program for e-books– KindleScout– and became a content creator through crowdsourcing. The KindleScout audience votes on the crowdsourced ideas, and the most voted books get published by Amazon. Strengthening Storytelling GE collaborated with Nat Geo Channel to create a show dedicated to leading scientists and cutting-edge innovations– all featured in Hollywood style. GE aims to showcase the human face of all their breakthroughs and decided to achieve it through Nat Geo’s competence in storytelling rather than traditional advertising. Better Quality Content YouTube has opened a place where YouTube creators with more than 5,000 subscribers can work on content, learn new skills, and network with other creators. By sharing their knowledge, YouTube helps its clients to produce better quality content on its platforms and channels. 34 SIGNS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA Explore Sign Explore Sign Explore Sign

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 35 Brand Storytelling Report People that want brands to tell good stories. Source: Headstream 20% 80% 80% WHY IT MATTERS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 36 People that can’t remember a single good story told by a brand recently. Source: Headstream 15% 85% 85% WHY IT MATTERS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA Brand Storytelling Report

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 37 Consumers that prefer stories from regular people. 34% 66% 66% WHY IT MATTERS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA Source: Headstream Brand Storytelling Report

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 38 71% Individuals that want to learn about products through content rather than through traditional advertising. Source: MDG Advertising 30% 70% 70% WHY IT MATTERS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA Shift to Native Advertising

40% 60% UNDERSTAND TODAY. SHAPE TOMORROW.*Source: 39 Content & Buyer’s Journey People are constantly adjusting their expectations towards higher-quality content, more interactive content, and content that innately drives engagement. Source: Demand Metric WHY IT MATTERS // MULTIPLY POSSIBILITIESLHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATION Insights reaching the audience can be gained through teaming up with other platforms. A partner gives the brand an additional marketing expertise, understanding and insights on what topics the target group might be interested in. Teaming up with a platform or brand partner helps also to grow the reach of the audience and establish a better connection. 40 IMPLICATIONS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

UNDERSTAND TODAY. SHAPE TOMORROW. IMPLICATION Consumers enjoy being involved in the content creation. By involving the brand’s audience in content creation through crowdsourcing or user generated content the company will get a better understanding of the target audience and will be able to build a stronger community. Allowing the users to express themselves helps to gain credibility in the eyes of the viewers. 41 IMPLICATIONS // AMPLIFY EXPERIENCELHBS // THE NEAR FUTURE OF MEDIA

LHBS Put the Title of the Report here HUB. UNDERSTAND TODAY. SHAPE TOMORROW. 42 www.inspiration-hub.com INSPIRATION-HUB INSPIRATION -HUB Our Inspiration-Hub systematically tracks changes in culture, markets and technology and how these changes collectively point to a bigger story that carries implications and inspiration for brands and business. LHBS // THE NEAR FUTURE OF TRAVEL

UNDERSTAND TODAY. SHAPE TOMORROW. Discover LHBS. Define Develop Deliver We are an unconventional strategy firm that helps clients to better understand today and successfully shape tomorrow. LHBS has extensive experience & expertise in business development, brand building and customer experience. The firm works across all major industries for clients from the FT Global 500, Mittelstand and fast growing startups. www.lhbs.com ABOUT UNDERSTAND TODAY. SHAPE TOMORROW. 43 LHBS // THE NEAR FUTURE OF TRAVEL

Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der   LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unauthorisierte Nutzung,   die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet. LHBS Consulting Berlin GmbH Köpenicker Straße 154 10997 Berlin Germany UNDERSTAND TODAY. SHAPE TOMORROW. IMPRINT www.lhbs.com THANK YOU