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2018 Digital and Tech Trends by Online Circle Digital

Lucio Ribeiro
Lucio Ribeiro
Lucio RibeiroPartner Founder at Lucio Ribeiro

2018 Forecast and predictions of some of the probable executions, technologies and changes we might be seeing in 2018 and 2019.

2018 Digital and Tech Trends by Online Circle Digital

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10 Digital and Tech Trends
That will shape 2018
Introduction
As we begin another year, it’s important for marketers to be aware of emerging and continuing
trends, challenges and tactics within our ever-evolving industry.
We have analysed social and digital data to produce what we believe will be 10 significant trends to
shape the way brands advertise within the digital and tech space in 2018.
Let’s go.
Lucio Ribeiro
MD, Online Circle Digital
lucio@theonlinecircle.com
Contents
1. Voice Technology
2. Augmented and Virtual Reality
3. Artificial Intelligence
4. Ad Blocking
5. Digital in the Physical Space
6. Blockchain
7. Regulation, then Disruption
8. Influencer Marketing
9. Mobile Video Consumption
10. Brand Purpose
Voice Technology
Voice command technology is easily navigated by all age groups, making it
universally popular. Forbes reported that in 2017, Google Home’s speech
recognition reached 97% accuracy.
Over the 2017 holiday season, Echo Dot (or Alexa, as it’s commonly known) was
Amazon’s top selling product and Google Home was among the top 5 most
downloaded apps on Android.
The stats don’t lie; as of 2017, 41% of adults conduct at least one voice search per
day, and that number will keep rising. By 2020, voice searches are expected to
account for 50% of all online queries, which is up from 20% in 2016.
Begin optimising your website for voice search this year, as voice searches are
usually complete sentences rather than keywords. Technology like Alexa and Google
provide only the most relevant search result as an answer, so you need to be number
one to be heard.
Siri Alexa Google Voice
Voice Technology
Consumers are demanding a more personalised experience when shopping online.
So, what’s the answer? The integration of augmented and virtual reality based on
customer data. The use of AR/VR apps drives deeper personal interactions and
consumer value. Think of the integration as a digital “try before you buy”.
Ikea Place was launched in September 2017 - an augmented reality app built on
Apple’s new ARKit technology. Users can scan their home and browse over 2000 3D,
true-to-size IKEA products and digitally add them to their home, with 98%
dimensional accuracy. The technology is so advanced that it even depicts shadows
and fabric textures.
According to VirtualSky, VR ads offer 8x the recall of traditional advertising and can
drive more than 10x the interaction rate of traditional video. The AR market is
expected to hit $61.3 billion in 6 years.
2018 will see major brands adopting advanced AR technology to create more ad
opportunities and personalised experiences utilising native (Snapchat, Facebook)
and third party apps. After all, why would a consumer travel to a showroom to view a
new car when they could see it in their own garage on their phone??
Project by
Augmented and
Virtual Reality

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2018 Digital and Tech Trends by Online Circle Digital

  • 1. 10 Digital and Tech Trends That will shape 2018
  • 2. Introduction As we begin another year, it’s important for marketers to be aware of emerging and continuing trends, challenges and tactics within our ever-evolving industry. We have analysed social and digital data to produce what we believe will be 10 significant trends to shape the way brands advertise within the digital and tech space in 2018. Let’s go. Lucio Ribeiro MD, Online Circle Digital lucio@theonlinecircle.com
  • 3. Contents 1. Voice Technology 2. Augmented and Virtual Reality 3. Artificial Intelligence 4. Ad Blocking 5. Digital in the Physical Space 6. Blockchain 7. Regulation, then Disruption 8. Influencer Marketing 9. Mobile Video Consumption 10. Brand Purpose
  • 4. Voice Technology Voice command technology is easily navigated by all age groups, making it universally popular. Forbes reported that in 2017, Google Home’s speech recognition reached 97% accuracy. Over the 2017 holiday season, Echo Dot (or Alexa, as it’s commonly known) was Amazon’s top selling product and Google Home was among the top 5 most downloaded apps on Android. The stats don’t lie; as of 2017, 41% of adults conduct at least one voice search per day, and that number will keep rising. By 2020, voice searches are expected to account for 50% of all online queries, which is up from 20% in 2016. Begin optimising your website for voice search this year, as voice searches are usually complete sentences rather than keywords. Technology like Alexa and Google provide only the most relevant search result as an answer, so you need to be number one to be heard.
  • 5. Siri Alexa Google Voice Voice Technology
  • 6. Consumers are demanding a more personalised experience when shopping online. So, what’s the answer? The integration of augmented and virtual reality based on customer data. The use of AR/VR apps drives deeper personal interactions and consumer value. Think of the integration as a digital “try before you buy”. Ikea Place was launched in September 2017 - an augmented reality app built on Apple’s new ARKit technology. Users can scan their home and browse over 2000 3D, true-to-size IKEA products and digitally add them to their home, with 98% dimensional accuracy. The technology is so advanced that it even depicts shadows and fabric textures. According to VirtualSky, VR ads offer 8x the recall of traditional advertising and can drive more than 10x the interaction rate of traditional video. The AR market is expected to hit $61.3 billion in 6 years. 2018 will see major brands adopting advanced AR technology to create more ad opportunities and personalised experiences utilising native (Snapchat, Facebook) and third party apps. After all, why would a consumer travel to a showroom to view a new car when they could see it in their own garage on their phone?? Project by Augmented and Virtual Reality
  • 7. The increased capabilities of Artificial Intelligence technologies means that marketers can use AI data to create personal ad experiences that the industry and consumers are craving. 2017 saw Toyota create more than 80 personalised ads for Twitter based off emoji uses when tweeting. The brand raised awareness of their latest vehicle in the Twittersphere by serving ads that matched users latest emoji engagement. There is also huge potential to integrate AI technologies into content creation this year. Although machines are not yet at the capability of creating high-quality content on their own, tools like generation and predictive analytics allow AI to influence and streamline a large portion of content creation. In 2018, consider how AI technology can be integrated across all areas of your business, from research and data collection to creative. Artificial Intelligence
  • 8. Currently, there are 615 million devices worldwide with ad blocking software installed. Now, one of the biggest players in the digital environment is potentially going to shape where you place your ads. Google has announced plans to integrate an ad blocker into Google Chrome, the most widely-used browser. The ad blocker will only block the following ads that Google deems intrusive: • pop-up ads • large sticky ads • autoplay ads with sound • autoplay video ads with sound • flashing animated ads • full-screen scroll over ads Brands need to reassess 2018 ad placement for the potential launch of Google Chrome’s ad blocker to ensure no budget is wasted on ads that won’t be seen. Ad Blocking
  • 9. The concept of “Experiential Retail” or “Retailtainment” is all about providing consumers with an experience, rather than simply a service. Samsung has launched Samsung 837, an “experiential hub” in New York. Samsung 837 features rooftop film screenings, interactive art installations, concerts, VR experiences, cafes and podcast recordings all featuring Samsung products, but none can be purchased in store. The blending of digital retail into the physical retail space has been successfully adopted by Australian brand, Sneakerboy. Consumers can try on the product in store, but only purchase online via their personal devices or the in-store iPads. American luxury chain Nordstrom has also recently opened an experiential retail space in California, and we expect more major brands to follow suit over the year. In this type of environment, consumers are engaging with products and brands without the pressure to purchase. Consider how your brand messaging and products will be digested in a relaxed, enhanced setting that creates a better consumer experience. Digital in the Physical Space Project by
  • 10. Blockchain technology has the potential to create greater transparency in advertising, ensuring all involved parties know whether or not an ad has been seen, who has seen it and what actions were taken. Business Insider reports that over the next ten years, ad fraud will amount to a global cost of $50 billion. Blockchain and its ability to decentralise is predicted to revolutionise the battle against ad fraud. Social Media Week reports that Blockchain will have a tremendous impact on digital marketing in particular. The expectant rise in decentralisation will shift the way digital campaigns are managed in 2018. Some actions have already been taken. The Interactive Advertising Bureau has created a Blockchain Working Group, and Nasdaq has announced they will be launching the New York Interactive Exchange, a program that will allow inventory to be sold using Blockchain Technology. We expect the prominence of Blockchain to continue growing in 2018. Blockchain
  • 11. The General Data Protection Regulation, or GDPR, identifies bad practices by advertisers. GDPR is set to be enforced by the EU in May, 2018 and will force brands to reassess the data that they collect and why they collect it. Once the GDPR is enforced, companies that don’t comply will face fines of up to 4% of their total revenue - so it’s best to follow the rules! Bar chain J.D. Wetherspoon suffered a breach in their data in 2015 and last year chose to delete their entire customer email database. Some brands are taking a different, more embracing approach. Unruly reports that Huawei is currently researching the idea of AI replacing cloud processing, meaning that customer data could be stored locally. Ultimately, consumers are the real winners here. GDPR allows more control and privacy around their information and how/what is collected. Regulation, then Disruption
  • 12. Although Influencer Marketing is not an entirely new concept, the interest in influencers as a strategy continues to grow. Social Media Week reported at the end of December 2017 that of the hundreds of speaking pitches they received for their upcoming SMWNYC conference, influencer marketing was by far the most popular subject. Inc.com also reported that in 2017, 84% of marketers planned on implementing at least one influencer marketing campaign. Inc.com’s data also showed that for every $1 spent on influencer marketing, brands made $6.50. As a result of the rise in influencer interest, the market is now crowded. 2018 will see brands focusing less on middle-tier influencers and prioritising influencers who drive substantial return. We can also expect to see brands demanding more from their influencers, particularly around standards, transparency and measurement of investment. The Rise and Fall of the Influencer Project by
  • 13. In our industry, time is a scarce resource. According to Facebook’s IQ team, mobile devices actually affect how consumers perceive time. A recent study showed that when participants viewed two videos of the same length, one on desktop and one on mobile, participants estimated the mobile video to be 30% shorter than the desktop video. The same notion translates into the purchase journey. Research shows that the journey from interacting with an ad to purchase is 13% faster on mobile. Mobile video consumption is expected to grow by 25% in 2018. Video consumption on desktops and laptops is expected to decline for the first time ever. In early 2018 Google accounced their rankings are mobile first. Think, build, optimise for mobile. Projects by Mobile Video Consumption
  • 14. As we know, consumers are becoming increasingly aware of what goes into the products they buy. Factors like sustainability, brand values and ethical sourcing are heavily influencing purchase decisions. In 2016, Unilever reported that its “Sustainable Living” brands (Ben & Jerry and Dove) grew 50% faster than the rest of their brands. Nielsen data from 2015 also shows that 72% of Gen Y and 73% of Gen Z said they would pay more for brands that had sustainable practices in place. 2018 is the year to recognise the heightened awareness of consumers. This is the year to go deeper and align brand strategy with authentic purpose, and to make a real contribution to the lives and lifestyles of customers. This strategy was adopted in 2017 by Heineken and Mercedes-Benz. Both brands tackled highly sensitive and topical content in a bold way. Mercedes-Benz took a stand for equality in status, rights and opportunities with their “Love is Love” campaign, with their iconic star as the focal point of the creative. Heineken presented topics like climate change, feminism and transgender issues to people of opposing opinions, placing their product in the centre of the discussion. Both campaigns were extremely successful, gaining international media attention and awards. Expect to see other major brands establishing a deeper sense of brand purpose in 2018. Brand Purpose Project by
  • 16. ONLINE CIRCLE DIGITAL Lucio Ribeiro, MD 03 9696 7473 Be curious. Get Done. Get results. The agency has been founded 10 years ago and today we are growing stronger and stronger. Our main thing is Digital Marketing. We are really good at getting Digital Marketing fast and efficient. We have five expertises : • Strategy • Accounts • Creative • Media Buying (Digital) • Tech Production Our secret weapon is our own piece of AI technology, Social Pulse, our speed and fast results for our clients. Our Agency has strong partnerships with IBM and Google. We are award winners with proven cases studies and results.
  • 17. Thank you Lucio Ribeiro, MD 03 9696 7473