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Performics ces recap_deck

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At this year’s CES, we saw a multitude of new tech, but a common thread was apparent: the sophisticated use of data to provide utility or entertainment for consumers. For brands, this is the foundation of a new super-connected consumer journey, offering new opportunities to create powerful, seamless experiences. Check out our top CES Trends:

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Performics ces recap_deck

  1. 1. CES 2016: A Glimpse Into The Future At face value, CES 2016 produced few “new” ideas and concepts vs. years past. There were the expected product announcements involving advanced drones, smart appliances, and impressive TV specs, etc., but no single announcement was big enough to dominate show floor conversation. It was evident, however, that the major players in Tech such as Google, Amazon, Apple, and Samsung were placing long term strategic bets by forming alliances and staking claim on where they think the future of their respective businesses will go. It’s now clear that the next decade will see the rise of new multi-billion dollar industries that will fundamentally change communication and commerce, in an even more profound way than how the smartphone has disrupted business and empowered consumers in the recent past. 2016 will see The Internet of Things, Smart Homes, Virtual Reality, Self-Driving and Autonomous vehicles, and meaningful Wearables become very real consumer offerings. Perhaps the most interesting takeaway from this year’s conference is the genuine attempt by the industry at large to humanize our advanced technological future. Examples include devices that actively listen, warm interfaces with “invisible” UI, and wearables and appliances that can anticipate our next move or need, based on the personal data we are willing to share with them. This very necessary trend of translating “AI to HI” suggests that our future will more resemble the movie “Her” and not “Minority Report,” which should sit okay with all of us.
  2. 2. The Future of Transportation: GM Invests $500M in Lyft General Motors surprised many by announcing an investment of $500 Million USD in Lyft. In addition to the financial investment, the two companies are working on a long term plan to develop an on-demand network of self-driving cars. The two companies are also working to set up short-term car rental hubs in the US, which will enable GM vehicles for short term rentals for non-car owners and Lyft drivers. The announcement illustrates the diverse schools of thought in the still nascent self- driving car market. Many established auto manufacturers are incorporating advanced Artificial Intelligence and self-driving sensor technology in their mainline fleets (and in the case of Tesla, software updates), assuming that consumers in the long term will still value vehicle ownership. GM’s investment in Lyft, however, is betting on a future that provides on-demand transportation from point A to point B without necessarily depending on vehicle ownership whatsoever; in this respect, GM is the infrastructure provider to a startup that is disrupting one of the world’s biggest industries. Time will tell if this bet will pay off, as Uber and other competitors also reveal their strategies to redefine transportation. +
  3. 3. The New Internet of Things (IoT) Battleground Last year at CES, Samsung co-CEO B.K Yoon announced that by 2020, 100% of their products would be connected via IoT (short for the Internet of Things, meaning that objects will be connected to the Internet to collect and send data). At the time, the statement sounded ambitious, but the past 12 months have proven that IoT may be the most competitive battleground since the early days of smartphone wars. Google’s Nest and its Weave platform is now in direct competition with Amazon and its Alexa platform, which is integrated into its popular Echo and Fire TV (OTT) products, as well as Samsung’s SmarThings and ARTIK platform, among others. In a surprise announcement in early January, Mark Zuckerberg announced his intention to build a real life “Jarvis” (referencing Iron Man), a combination of IoT and Artificial Intelligence for the home. The acceleration of development in the Internet of Things space means that the Home has been identified as a new battleground, and the data collected by our household purchases and our conversations with our devices will be just as, if not more, valuable than data collected from the Internet.
  4. 4. Drones Descend on CES 2016 Drones were everywhere at CES this year. They became more of a mainstay at the show, with around 100 new models expected to be announced at CES 2016. There was even a drones rodeo, with 25 manufacturers showing off their wares out in the desert. Some are bigger and more elaborate, others are more streamlined and affordable. Some of the models to watch out for include the Parrot DISCO, which is the first wing-shaped Drone that you can apparently pilot with no learning process, and the Lily Camera, which is being marketed as a camera, rather than a drone. Think remote controlled GoPro cameraman. Of particular interest for the marketing community is research unveiled by the Consumer Technology Association. Drone buyers in the US are serious purchasers of tech: drone buyers each spent an average of $2,890 in online tech in the past 12 months. That’s four times more than that of non-drone buyers!
  5. 5. How Can “Things” Data Become Actionable for Advertisers? At CES 2016, the acceleration of the Internet of Things (IoT) cannot be ignored. The consumer data collected by these “things” and how the data can be used to buy ads is of particular interest—however, upon walking the floor it became apparent that “things” data is deeply fragmented and disorganized. Many are attempting to manage this mess; from Google Nest in the home to Samsung’s ecosystem of everyday things that talk to each other, to BMW’s Mobility Cloud that integrates data from home and commute. We can certainly imagine a future where IoT data is used to buy ads. For instance, a refrigerator that knows when yogurt has spoiled could be very valuable to a yogurt brand. They could then deliver ads directly to the fridge or anything else connected to it; but, how will we access that isolated data in real-time to make the ad buy? We think the proliferation of “things” data and connectivity paves the way for a future marketplace for ad buying that leverages this data, much like the DoubleClick for IoT. While this still has a ways to go, it could make “things” (and also wearables) data actionable. As horizontal applications outperform discreet ones, this could eventually create a sustainable ad business for the IoT. Samsung Smart Fridge
  6. 6. Still in Search of the Perfect Band (Or Watch) The wearables watch/band market (growing 35% Y/Y) is still deeply fragmented with every manufacturer chasing the Apple Watch. At CES 2016, every watch company is getting smart. For instance, Fossil announced that it’s rolling out 100 connected devices this year. The thinking is that adding tech to watches just makes sense. Furthermore, bands and watches are merging. Fitbit (the leader in bands) unveiled the Blaze, a fitness tracker that includes Apple Watch-like features like fashionable bands and a color touch screen (yet not based on iOS or Android). Fitbit’s stock promptly dropped, perhaps because investors think it’s stepping out of its sweet spot and can’t compete with the Apple Watch. But no matter how many bands and watches we see at CES (and even the Apple Watch, which isn’t at CES), we’re still wondering when the tipping point will occur for critical mass. What needs to happen for people to buy and keep a watch/band? While a wearable that is fully integrated with your body (e.g. one that acts like a personal trainer, giving real-time feedback) doesn’t yet exist, the industry is getting closer. One such wearable is the Garmin VivoActive, which takes in data from your body and encourages you to do things like “play harder” during activities like running or swimming. But all-in-all, these are only baby steps from last year. While these wearables should be on every brand’s radar, we’re still reluctant to call 2016 the year of the band/watch.
  7. 7. Automotive Takes Its Place in The Internet of Things Automotive has made the headlines at CES for the past few years, and this year was no exception. GM announced its partnership with ride- hailing app Lyft to develop a fleet of driverless taxis. The move signals auto manufacturers working more closely with Silicon Valley which can only be a good thing. Notable car launches include VW’s two connected and all-electric concept cars: the e-Golf Touch and the Budd-e microbus. There was also a lot of talk about the electric hypercar Faraday Future FFZERO1 which CNET described as “an extreme tablet on wheels.” But arguably of most interest to the marketing community was the exciting technology demonstrated by BMW. Its Open Mobility Cloud technology shows how the car can be seamlessly integrated into the connected home, enabling the driver to manage their life from within the car. This makes automotive a key part of the Internet of Things.
  8. 8. Mobile Wallet Helps Create Better Consumer Journeys Samsung Pay ads are all over Las Vegas and the Korean technology giant used CES to announce the next stage of the rollout of its mobile payment facility. Adding to South Korea and the US, Samsung Pay will be available in Australia, Singapore and Brazil, and launches are imminent in China, UK and Spain. While developments in mobile wallet technology are not as sexy as robots and virtual reality, they are important for marketers as brands look to create seamless experiences along the consumer journey that end in a payment process that meets the needs of the mobile consumer. Over at Sony’s stand, most delegates were crowding to see the latest TVs, but nestled in the middle was an interesting example of how payment technology is meeting the needs of consumers. For international travelers, the Sony Bank Wallet links debit payments or ATM withdrawals to the customer’s bank account in the form of an automatic currency exchange. The card is supported by a mobile app to enable biometric authentication.
  9. 9. AR and VR Offer More Engagement Opportunities Virtual and augmented reality have been the darlings of CES in recent years. For marketers, the opportunities for engagement through gaming, utility apps and creative adverting are becoming clearer. And what was clear from the stands at CES is that VR and AR technology is becoming cheaper and more accessible. Oculus – now owned by Facebook – announced that consumers will finally be able to get their hands on their own Rift, available for pre- order at $599. Garmin has created an augmented reality display that cyclists can mount on their sunglasses which provides performance information as well as directions and traffic alerts. Additionally, Hyundai has built an augmented reality app called the Virtual Guide which enables owners to use their phones to better perform basic maintenance. VR and AR will change both consumer experience and expectations. The tipping point will be when the technology is embedded rather than provided through separate devices.
  10. 10. Humanizing Data: From AI to HI Wednesday, ZenithOptimedia and Viacom Velocity hosted a panel discussing the evolution of data-led marketing. Shelly Palmer, Managing Director Digital Media Group, Landmark Ventures, touched on where user experience and user interface meet and how consumers are seeking a frictionless environment, based off of improved data. Rishad Tobaccowala, Chief Strategist of Publicis Groupe, followed up with the fact that “Advertising narrowly = amazing. Advertising broadly, no one wants.” This is how we create the frictionless environment based on data for consumers. Sharon Profis, Senior Editor at CNET, noted that in order to make experiences consumer friendly, brands and advertisers have to adapt to a truly native mobile experience. This is the only way to create an experience that consumers want to engage with. Overall, Kern Schireson, EVP, Data Strategy & Consumer Intelligence at Viacom, brought up that consumers are in demand of their content and that spills over into advertising. Consumers are making sure they see fewer but more relevant ads.
  11. 11. The Rise of IoP (Internet of Pets) In a world where everyone and everything is connected, it is only natural to get our furry companions connected as well. There were several pet tech companies that focused on the Internet of Pets - products designed to help pets and their owners stay connected. PetBot allows owners to observe and interact with their pets via their smartphones. Owners can call their pets, play music for them, automatically record videos, take pictures of them and even dispense treats. A self-described ‘connected accessory’, WonderWoof’s BowTie is an activity tracking device for our canine companions that is as innovative as it is fashion forward. It monitors your dog’s daily activity based on size, breed and age. In the future, WonderWoof will be launching beacons that can be placed around your house to help you determine your dog’s location and if he/she is eating and drinking normally. For many owners, pets are like kids. As we continue to get progressively more and more connected, smart technology companies are finding ways to help us bring our pets into the family’s digital fold.
  12. 12. Artificial Intelligence in 2016: Powered by Your Data The term “Artificial Intelligence” brings to mind HAL 9000 and Ray Kurzweil’s prediction of the singularity and possible robot uprising within our lifetimes. While the latter may be inevitable (just kidding), current advancements in A.I. are based on either machine learning (i.e., software that allows self-driving cars to learn from their experiences), or by the very same personal data that advertisers leverage to target relevant consumers. Our experiences with Artificial Intelligence in 2016 will resemble that of a personal assistant, or butler. Advancements in Apple’s Siri, Facebook’s M, Microsoft’s Cortana, and Google’s deep learning products will leverage personal data, purchase behavior, and mobile usage data to offer predictions, suggestions and timely notifications to help streamline our busy lives. Messaging platform apps, such as Facebook Messenger, will be competing directly with smartphone-native A.I. platforms like Siri, as those chat environments lend themselves to warmer and more personal communication. Chatting with your A.I. assistant will feel like having a conversation with a friend.
  13. 13. The Rise of the Robots A big theme for CES is the ‘automated life’. Much of this has centered on the connected home and the Internet of Things, but this year the big movement in automation is in robotics. There have been more robots on display at CES than ever before. There was much hype about Segway’s partnership with Intel to create a hoverboard butler. The device is a personal transporter with a built-in interactive robot, which among other things can stream video and respond to voice commands. Double Robotics has brought out a new version of its telepresence robot – an iPad on a stick which moves around and live streams. In effect, it becomes your eyes and ears on the world around you without you having to go anywhere. For brands, the movement in automated life technology is about helping consumers to have seamless experiences and to be efficient in their daily lives. Automation is also hugely beneficial to brands as the industry develops ever more effective programmatic marketing solutions.
  14. 14. Virtual Reality Gets More Movement Virtual reality (VR) is looking to take off in 2016 - and in a very real-world way. Samsung Gear VR headsets sold out over the holidays and Oculus finally opened pre-orders for its Rift headsets at the price of $599. And while we have been impressed by the capabilities of all of these headsets over the past year, we cannot help but wonder: What is next for VR? Every next generation VR headset on display incorporated spatial mapping and hand tracking. Startup uSens, Inc. built in infrared cameras so users could see their hands and control elements within the experience. South Korea’s brightest technology star, Samsung, integrated hand-motion controllers to add gesture controls. And Taiwan’s HTC is using external cameras to help with spatial tracking. As remarkable as these innovations are, the biggest player in VR is clearly Sony with its PlayStation VR. Sony has introduced a technology that it has donned ‘the Move motion controller’, a hybrid device that simulates hands in the VR world and allows users to interact with virtual objects or fire weapons in games. What’s really helping it lead the VR field is its numbers: It has sold nearly 36 million PS4 consoles for $349 globally — and every single one is capable of running PlayStation VR. Sony’s VR headset is predicted to sell 1.9 million units in 2016. Game on, Sony. Game on.
  15. 15. VR Shopping Experiences to Redefine Path-to-Purchase Retailers welcome any new capability that creates a more intuitive shopping experience, eliminates barriers to abandonment and reduces the length of the path-to-purchase. While VR shopping experiences have been on display for years at CES, one in particular caught our eye this year. Modiface enables users to see (on a tablet) different versions of makeup on their faces through virtual reality. Users can change their makeup with motions such as moving their eyebrows. For the beauty industry (makeup, hair, etc), these types of innovations can be game changing. Consumers can not only virtually test products, but they can also try things without makeup artist assistance. With more confidence, consumers will be empowered during the shopping experience, and obstacles to purchase can be eliminated while returns are maximized.
  16. 16. 360 Video Cameras: The Future of User Generated Content Nikon and Kodak announced that they are introducing the industry’s first all-in-one portable solutions for 360 video capture. This is a welcome development for early adopters to the format, as the very early days of 360 video capture required the use of multiple DSLRs or action cameras. For instance, Nikon’s Project Helix demo photo booth featured 96 Nikon D750 DSLR cameras to create killer 360 degree captures, drawing users into a helix. And now, the Nikon KeyMission360 can capture 360 pictures and video in 4K with its two lenses. It is also shockproof and waterproof. Kodak’s PIXPRO SP360 records in HD with its single spherical lens and can be controlled remotely through an iOS or Android device. Consumer interest and demand for 360 videos is surging as VR hardware, such as Oculus Rift, is introduced to the market, and familiar websites like YouTube and Facebook include the ability to upload native, 360 content. The action camera market is very healthy, with nearly 10 million action cameras shipped globally in 2015.
  17. 17. Realistic 3D Avatars & Potential Future Applications One of the most buzzworthy innovations at this year’s CES is wildly realistic 3D avatars. Intel’s integration of UraniomVR software and its real sense technology enables show-goers to use an HP tablet with 3D Intel cameras to map out a full mesh of their head and shoulders. Uraniom’s software then creates a 3D image uploaded to the cloud, which can be integrated into the game Fallout 4. The impressive graphic quality means your avatar has an insanely uncanny resemblance to yourself, enabling you to be totally immersed in Fallout. These realistic avatars have potential applications far beyond gaming. We can imagine a future where consumers can integrate their close-to-perfect 3D avatars into online shopping experiences (or any online experience). For instance, shoppers could use their avatars on apparel sites to try on clothes and find the perfect products for their shapes. While this tech is just for fun right now, it could eventually revolutionize online shopping. Uraniom Avatar
  18. 18. This Year’s TV Buzzword: HDR Every CES, a new TV technology is announced to drum up excitement and encourage users to upgrade. Sometimes these announcements are truly groundbreaking and set new industry standards: HD, OLED and 4K are great examples. Other years, new features fail to gain consumer traction (3D TV), or have little practical utility (curved screens). The TV technology buzzword of 2016 is HDR, or high dynamic range (consumers may be already be familiar with the term from smartphone camera settings). Samsung and LG introduced new TVs with the standard and claim that HDR-enabled screens can show millions more colors and several more shades of brightness between black and white than normal displays. Moving forward, 4K TV sets will need to meet HDR standards to qualify as “Ultra HD Premium”. Sony, Panasonic, HiSense, TCL and Sharp have announced forthcoming TVs that will qualify for the badge. The improvement in image quality is undeniable, but HDR feels like an incremental, rather than revolutionary step, as the consumers wait for more widespread availability of 4K content.
  19. 19. LG Introduces Roll-Up Screen Technology LG introduced an absolutely stunning advancement in the field of display tech by introducing flexible screen technology. Foldable/Rollable screen technology has been talked about for years now, but this is the first time that a brand has showcased an actual prototype on the show floor of CES. The screen has full HD resolution and can be rolled-up, folded, or scrunched up like a piece of paper. The current prototype is relatively modest in size at just under 19”, but LG’s intention is to continue to develop the tech to current TV size dimensions. The tech is intended for digital signage (such as in a shop or for DOOH), but will also give interior design-minded consumers an alternative to having to sacrifice a wall or corner of a room for a large footprint screen. The technology is still in its infancy and is years away from being fully developed. It is such a radical departure from current technology that is has the potential to reshape the dynamics of our entertainment rooms, in a way that is more profound than the transition from Cathode Ray to flat panel.
  20. 20. Health Tech Shows What Data Humanization Can Achieve ZenithOptimedia’s theme for CES 2016 is Humanizing Data and this has been evident throughout the show, notably in the huge growth in health and medical technology. All of these new gadgets – including wearables and health monitors – are based on the smart use of data to enable consumers to keep track of their health and fitness. There were many new devices on display this year, but here a few interesting ones. Huawei’s Honor Band Z1 helps you track your fitness, performing tasks such as counting your steps and keeping a record of how you sleep. The DietSensor is an app-based product that allows you to assess the nutritional value of food. And the Levl tells you how much fat you are burning, just by analyzing your breath. A great example of how data and technology can combine to provide a fascinating vision of the future is Genworth R70i. This exoskeleton suit offers an emulated experience of the effects of aging, simulating physical effects such as hearing impairments, mobility challenges, vision disorders, muscle loss and arthritis. This is surely the embodiment of humanizing data.
  21. 21. Media Owner Mindmeld Thursday evening, ZenithOptimedia held a panel on Humanizing Data, hosted by Michael Kahn, CEO, Performics Worldwide. He was joined by Linda Yaccarino, Chairman, Advertising Sales and Client Partnerships at NBCUniversal, Mark Thompson, President and CEO of The New York Times, and Ben Lerer, Co-Founder and CEO of Thrillist. To start, Michael Kahn posed the question: how should advertisers and content publishers balance creativity and data science to create and optimize experiences? Mark stated that while advertising started out as being 100% art, it has now shifted to a balance between art and science. Data science can help you create great content. The key is to have the right premium content and then use the data to set it on fire, according to Linda. How you use data is something that came up throughout the panel. Ben called out that you have to be careful how much you let data influence you, as there can be false positives and it should not drive every decision you make.
  22. 22. Social: Trending Conversation Brands People Emotions
  23. 23. Social: Talks & Interviews
  24. 24. Social: New Technology
  25. 25. Social: Fun & Games
  26. 26. Social: Snapshots

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