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Mobile Tech Trends for 2017

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As 2017 rolls around we take a look at some of the the key trends we expect to see in the coming year.

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Mobile Tech Trends for 2017

  1. 1. Somo’s top mobile tech trends for 2017 December 16 1Confidential and copyright of Somo Custom Ltd.
  2. 2. It’s difficult to predict the future in tech December 16 2
  3. 3. "This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us." – Western Union internal memo, 1876
  4. 4. "The horse is here to stay but the automobile is only a novelty, a fad." – The president of the Michigan Savings Bank advising Henry Ford's lawyer not to invest in the Ford Motor Co., 1903
  5. 5. "I think there is a world market for maybe five computers." – Thomas Watson, chairman of IBM, 1943
  6. 6. December 16 6Confidential and copyright of Somo Custom Ltd. "Microsoft’s ability to provide a standardized operating system that appeals to enterprise buyers will almost inevitably make Windows Mobile the dominant smartphone platform " – Nick Jones, Gartner VP Distinguished Analyst speaking at the Gartner Symposium, 2003
  7. 7. December 16 7Confidential and copyright of Somo Custom Ltd. “Is Netflix a threat? Is the Albanian army going to take over the world?" – Jeffery Bewkes, CEO Time Warner, 2010
  8. 8. Top trends in mobile tech for 2017 But we are fearless, so here it is.. December 16Confidential and copyright of Somo Custom Ltd. 8
  9. 9. • Last November, Baidu presented the results of its first tests with a new speech recognition engine called Deep Speech 2. According to Baidu the new tool can sometimes transcribe snippets of Mandarin speech more accurately than a person. • Advances in speech recognition have been possible thanks to the advent of deep neural networks, a new model of machine learning inspired by the biological processes of the human brain 2016 has seen an explosion of applications of voice recognition in different contexts, from cars to home assistants. Consumer use of speech recognition has increased, therefore understanding the implications of consumers’ adoption of these new technologies within the consumer journey is going to be one of the biggest challenges for brands in 2017. With an increasing volume of searches moving from web to voice, the first objective for brands is to understand how to activate their presence and influence consumers engaged with personal assistants. Influence will be ultimately achieved anticipating consumer needs with integrated services and voice- ready contents and experiences. Secondly, the ubiquitous presence of the digital assistance – for instance Siri is now integrated in iOS for phone, laptop, tablet, watch, TV and car – will open up opportunities for contextual and proximity marketing. The motivations and intents behind a similar search within home and in a car while driving may differ quite significantly. Information about nearest stores, relevant services, or product availability will become vital to convert sales. 1. Conversational UI and voice search will redefine engagement December 16Confidential and copyright of Somo Custom Ltd. 9
  10. 10. 1. Conversational UI and voice search will redefine engagement Zeina Farha, Head of User Experience “There is great scope for Audio UI in designing for wearables, connected cars and connected home. Not only does it remove barriers and improve the experience, but also it can bring a brand’s personality to life” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 10
  11. 11. December 16 11Confidential and copyright of Somo Custom Ltd. 2. Everyday accessible proactive assistants 2016 has been jam packed with launches and news about digital assistants like Google Home and Amazon Echo. In 2017 companies are expected to focus on re-designing and integrating contents and services within this channel. One of the factors driving this AI boom is the emergence of platforms like Microsoft’s Cognitive Service, Amazon’s Echo, and Google’s Speech API, which allow product developers to focus on user experience rather than low-level speech processing. The personal assistant proved to be a successful way to package AI and machine learning functionalities, while opening up a new communication channel with consumers. With only 2 companies in the home space at the moment (i.e. Amazon and Google) other players such as retailers (Tesco? Argos?) and Telco (O2? BT?) may be considering to enter the arena with partnerships or launching their own device to drive adoption of their services. • Googleunveiled its home-based artificial intelligence personal assistant on November 4, 2016 for US$129 • On September 2016 Apple launched their AirPods, which are expected to deliver ubiquitous sound experiences • Meanwhile Alexa reached 3M sales over the summer of 2016
  12. 12. 2. Everyday accessible proactive assistants Ben Magnus, Senior Product Manager “Consumers are rapidly changing their behaviours as they adopt these evolving technologies. In the process, they are demanding different products and services” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 12
  13. 13. With billions of users worldwide, today the majority of content shared via mobile takes place on messaging apps such as WeChat, WhatsApp, and Facebook Messenger. It is no surprise that brands want to get access and be part of the conversation, experimenting new ways to connect and engage with these audiences in more appropriate and sophisticated manners. Firstly, the large user base reached by messaging apps makes them an ideal channel to deliver services. This led in 2016 to the explosion of sales and customer service chatbots accessible via messaging apps. This trend will continue in 2017, with new AI and Machine Learning platforms allowing to deploy more advanced and accurate bots. Secondly, social occasions that drive purchases are brought to life in messaging applications through private or group chats. Users exchange questions, plans, opinions and feedback about products and services they want to buy. In 2017 advertising platforms and brands will increasingly try to engage and influence these conversation through messaging apps. For example, Google launched Allo, a new chat app that natively integrates an AI-based chat assistant. • Messaging apps downloads surpassed social media platforms in 2014 and are used by billions of people worldwide every day • According to TechCrunch, 30,000 bots are today available on the Facebook Messanger platform, following the launch in April this year • O2 has integrated sharing widgets and URL shorteners across its owned and earned media assets to track and understand how content is shared on messaging apps December 16 13Confidential and copyright of Somo Custom Ltd. 3. Messaging apps are the new social marketing frontier Source: RadiumOne Post social data, Feb 2016 UK Percent of online shares by channel, globally 7% 9% 84% Other social media Facebook Messaging apps
  14. 14. 3. Messaging apps are the new social marketing frontier Giffard Hogge, Innovation Executive “Chatbots are not only useful, they are also smart and constantly learning from interactions with users. This means that the responses for consumers are always up to date and useful” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 14
  15. 15. The Apple and Play stores today features more than two million apps. Promoting a new app has therefore become an incredibly difficult challenge for brands and developers. According to comScore, 49% of US users have not downloaded a new app in the last 3 months while 2 out of 5 apps downloaded get forgotten or deleted within few days. The app-install frictions have opened new opportunities for progressive web apps. Instant Apps is the latest model presented by Google in 2016 to make that mobile experience more similar to the web without installing anything on your mobile, whilst keeping all the benefits of the native apps world. Instant Apps could be a game changer in 2017 especially for those apps that are more transactional or for occasional usage and don’t require a high share of user time – e.g. shopping, travel and hotels, delivery. The model is expected to improve the experience in many areas from discoverability and onboarding to usage and monetisation. Duringits I/O developers conference on May 2016 Google launchedAndroidInstantApps– a new set offeatures of the Android ecosystem thatallow to deployanduse apps without them beingdownloadedto a device. December 16 15Confidential and copyright of Somo Custom Ltd. 4. Instant apps to revamp progressive web ambitions
  16. 16. 4. Instant apps to revamp progressive web ambitions ChrisGeorge, VP of Product “Instant Apps can become a market reality in an relatively short time frame – and radically change the way we develop consumer apps” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 16
  17. 17. No matter in which sector you work, companies have started to think, design and maybe implement an Internet of Things strategy. But few firms have understood how to achieve a consistent competitive advantage through IoT. So what now? It turns out that IoT initiatives are complex especially for product companies, because they require to change mindset toward a service-oriented offering. In fact, the increase in communication touch points and in customer data inevitably opens up opportunities that in the long run transfer the competitive advantage from the products to the services offered. In many sectors such automotive, home and appliances product ownership is expected to be disrupted in favour of new ownership models based on “sharing” or “leasing”. Meanwhile, the value offered through services like personalization, insights, customer support and success will become the real competitive leverage. In 2017 we will see more and more companies re-thinking their product / service strategy, and re-design customer experience, operational structure and business model to take advantage of the opportunities offered by IoT. • At TechCrunch Disrupt London Volkswagen has recently presented its new mobility services business called Moia • In January General Motors launched Maven, a car sharing company offering customers a fleet of new vehicles on- demand • These initiatives follow earlier successful acquisitions in the space by other competitors: Zipcar acquired by Avis, DriveNow by BMW and Car2Go by Mercedes Benz. December 16 17Confidential and copyright of Somo Custom Ltd. 5. IoT-driven services strategy
  18. 18. 5. IoT-driven services strategy Max Moir, Head of Client Strategy “In the UK there are already 4 million households who own at least one connected smart home device. The question now is how companies can take advantage of the data and contact points generated to deliver new services and revenue streams” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 18
  19. 19. December 16 19Confidential and copyright of Somo Custom Ltd. 6. Live experiences become a viable opportunity for brands In presenting the new live 360 video streaming service, Facebook CEO Mark Zuckerberg mentioned that we are entering a "golden age for live video" , and that this format is the future of his company. This is why we believe that live experiences will be a big thing for brands in 2017. With the two major video platforms YouTube and Facebook supporting live 360, brands will be increasingly keen on experimenting with this new opportunity in a variety of different contexts, from live events, to marketing, from sales to education and customer service. The proliferation of accessible VR head-sets (like Google Daydream, Oculus Rift, Samsung Gear) users will be able to step even deeper inside branded experiences. • A few days ago Facebookannounced the future release of live 360 video streamingon the social network platform • This follows the launch oflive 360 made by YouTube earlier this year
  20. 20. 6. Live experiences become a viable opportunity for brands Sam Harvey, Marketing Manager “There are potentially no limits for using streaming videos as a business tool, if you are creative enough. Live events and concerts, behind- the-scene sets, infotainment, product showcases, sales demos, partner education programmes, customer support. And these are just few examples” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 20
  21. 21. At the end of 2016 Amazon unveiled Amazon Go, a new bricks and mortar grocery store concept where customers pick up their grocery and walk out without paying at a checkout. The announcement is expected to havea deep impact on the retail marketing agenda throughout 2017. December 16 21Confidential and copyright of Somo Custom Ltd. 7. Ubiquitous shopping, invisible payments The proliferation of mobile devices has radically changed the path to purchase, multiplying the points of contact and sales. The buying process potentially starts on smartphones, continues on desktop and tablets, and is completed through connected home assistants. The announcement of Amazon Go launching early next year has also generated a significant hype around invisible finance. We should not forget that frictionless payments have been around for sometimes now, perfected by some of the most successful tech companies in the market. With Uber you just have to thank the driver and jump out the cab. Similarly, you can just pre-order your coffee with the Starbucks app, pick them up in a café’, walk out and enjoy your drink, while the app will use your top-up credit to complete the transaction. This evolving scenario makes ubiquitous shopping and invisible payments one of the most important trends in marketing and finance today, making commerce and transaction seamless and most natural possible.
  22. 22. 7. Ubiquitous shopping, invisible payments Carl Uminski, Chief Operating Officer & Co - Founder “The innovations that have reshaped the online shopping experience will be increasingly transferred to the real world. Shopping doesn’t have to be complicated. Finance doesn’t have to be visible” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 22
  23. 23. December 16 23Confidential and copyright of Somo Custom Ltd. 2016 was a great year for consumer VR and AR, with all major players from Samsung and HTC to PlayStation and Google launching their new headsets. GPU and hardware costs still represent a significant barrier for wider adoption of premium products, therefore we expect VR technology will need a few more years to become mainstream. However, 2017 can become an important year for the development of contents and experiences for VR. We already see ambitious projects starting for exciting year ahead for VR. Facebook has been showing strong desire to explore social VR possibilities. Starting from small games and explorations, Facebook is likely to start creating engaging multi-people experience. We expect contents to be built around education, gaming, architecture, automotive, real-estate, sports, product presentations and shopping. For instance, Fox Sports in December 2016 was already incorporating VR into their event broadcasting to enhance customers’ experiences of the Soccer game. In New Year we look forward to developers launching VR equipment that has inbuilt depth sensors for room mapping, no external dependencies, no cables whatsoever, eye tracking and facial expression recognition (though for the facial recognition we might have to wait beyond 2017). This would create immense possibilities for VR consumers and stakeholders alike. 2016 was a pivotal year for consumer VR. While Vive and Oculus launchedproducts positionedin the upper endof the market, adoptionis expected to be drivenby mobile- based HDM such as SamsungGear and Google Daydream which mix simplicity with an attractive price tag. 8. Consumer VR moving from hardware to content
  24. 24. 8. Consumer VR moving from hardware to content Jocelyn Bull, SVP Client Solutions “Today commercial VR headsets are available in more and more high street shops with attractive price points. It is clear that manufacturers and brands need to move from focusing just on hardware and wow-moments to creating meaningful experiences and content” Mass adoptionEarly adoption December 16Confidential and copyright of Somo Custom Ltd. 24
  25. 25. 9. Hyper-Targeted Marketing driven by data The proliferation of data generated by a multitude of devices has fostered tremendous business opportunity, especially for advertisers looking to reach users at the right moment, in the right context at the right time. Driven largely by platforms such as Facebook and Google, with their contribution to overall growth being 76% market share in the US (59% and 18% respectively in 2015), now more than ever the data points marketers have available are driving value in ways that we would not have been possible previously. Whilst all of these data points available such as interest based behaviours, location, gender, age and demographic profiles enable marketers to build a user profile and segment them to allow for personalised and localised messaging; it’s essential to be aware of privacy laws and ensure that compliance is key. This is especially true as the new EU GDPR legislation comes into play in May 2017. Trending creative formats: App store search (Search Ads for Google Play and Apple Search Ads), Video – 360 video and vertical video, App streaming ads. • Mobile display adspend overtook desktop display in H1 for the first time (£802m Vs. £762m). • Facebook and Google dominating mobile adspend with 76% growth Source: IAB UK and Mary Meeker Internet Trends Report 2016 £762m £802m MobileDesktop UK Display Adspend in UK, H1 2016 The Digital Duopoly Facebook + Google = 76% of growth December 16Confidential and copyright of Somo Custom Ltd. 25
  26. 26. Naomi Hands, Director of Commercial Partnerships “2017 will be the year that we see a big turning point for data driven marketing that enables advertisers to achieve localisation and personalisation at scale” Mass adoptionEarly adoption 9. Hyper-Targeted Marketing driven by data December 16Confidential and copyright of Somo Custom Ltd. 26
  27. 27. Emma Crowe, Chief of Client Strategy Last words “A new stage of technological evolution is emerging driven by technologies such as machine learning, mixed reality, image and voice recognition. We expect these new technologies to become core elements within the connected mobile space in a few years” 1. Conversational UI and voice searchwill redefine engagement 2. Everyday accessible proactive assistants 3. Messaging apps are the new social marketing frontier 4. Instant apps to revamp progressive web ambitions 5. IoT-driven services strategy 6. Live experiences become a viable opportunity for brands 7. Ubiquitous shopping, invisible payments 8. Consumer VR moving from hardware to content 9. Hyper-Targeted Marketing driven by data The Top Tech Trends in 2017 If you need help navigating the trends in 2017, you can contact us at: marketing@somoglobal.com

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