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Carat's top 10 trends for 2016
This article highlights 10 trends in technology that are expected to become more important and relevant to marketers in 2016.
These trends involve two big themes: the rise of closed, competing ecosystems and the development of artificial
intelligence (AI) and actionable measurement.
The ecosystems trends include walled gardens, new challenges in advertising, the evolution of search, messaging and
notifications, and algorithms versus human curation.
The AItrends involve maps and location, recognition, sentiment, dynamic pricing and telepathy.
The trends predicted for 2015 are also revisited.
Overview
Trends in context
We have been producing trend reports for over 5 years, looking at new technologies that will become more important and relevant
to clients.
We've covered issues such as:
Wearable technology
Location and local
Payments
Beacons
Like these, the trends for 2016 are all growing in importance, and will all have implications for clients.
Big themes
This year's trends involve two big themes:
1. The rise of closed, competing ecosystems
2. The development of artificial intelligence, and actionable measurement
Trends for 2016
Ecosystems
1. Walled gardens
2. New challenges in advertising
3. The evolution of search
4. Messaging & notifications
5. Algorithms vs. curation
A.I.
6. Maps & location
7. Recognition
8. Sentiment
9. Dynamic Pricing
10. 'Telepathy'
View the presentation on Slideshare
Carat's 10 Trends for 2016
1. Walled gardens
Digital media is becoming less open, and more like the 'walled gardens' and portals of the early 2000s.
A 'walled garden' is a safe, controlled publisher ecosystem – often within apps – instead of links to the wide web.
This has happened because it's a faster experience than moving between apps and sites on mobile, and large publishers want to
keep their audience for longer.
Examples include Snapchat's Discover, Facebook's Instant Articles, Twitter's Moments, and the YouTube for Kids app.
Walled gardens often have content & adverts native to the platform, rather than adverts like banners which can run across multiple
publishers.
The impact of walled gardens has already been seen in lots of ways.
For example Snapchat has insisted that advertisers in its Discovery section use vertical video, as that format works best within
its content.
Buy Buttons, where people can click on a button to buy immediately rather than go to a third party page, are safer within apps
like Pinterest and Google Search, than the web at large – which is why these buttons generally only exist in apps.
The threat of ad blocking can be seen as an incentive to publishers to move to – walled gardens – on the web (& mobile web) it's
easier to identify and block ads; within walled gardens publishers have more control over how adverts appear, thus making them
more difficult to block with ad blocking technology.
Implications
Walled gardens are likely to continue to proliferate at the expense of the more open web.
Brands need to choose major partners, and work within these walled gardens, including making specific content and
adverts.
To do this brands need to set rigorous KPIs and be clear on the most appropriate ones.
In some ways this is beneficial to brands – it's easier to guarantee a brand-friendly advertising environment.
There are two major downsides:
1. Brands need to produce more formats to fit into different ecosystems.
2. Bespoke formats mean that programmatic advertising is harder, and the data tracking delivery and performance will
be more silo-ed.
References
Wikipedia: Closed platform
Snapchat: Introducing Discover
Facebook: Instant articles
Twitter: Moments, the best of Twitter in an instant
YouTube Kids
Snapchat persuades brands to go vertical with their video: Mobile phones change the way we watch
Pinterest: Buyable Pins start rolling out today!
Techcrunch: Google unveils "purchases on Google", which are basically buy buttons in mobile ads
2. New challenges in advertising
There are a lot of new challenges in how advertising works, how advertising pays for free content, and the perceived
value exchange between consuming ads and getting free content.
These challenges have emerged for two reasons:
1. Netflix, which now has over 69 million paying subscribers, has popularised the idea of paying for ad-free video content rather
than have it free, subsidised by advertising.
The average subscriber household now watches over 2 hours of ad-free content per day.
This model is now being adopted by other services, most notably Amazon Prime and Sky's Now TV and YouTube Red.
2. Ad blockers are free to access and install. Usage estimates vary, but millions are using them around the world, easily blocking
ads on the web.
People generally use ad blockers to improve their experience (no pre-roll videos), to speed up load times, to avoid being tracked,
and, on mobile, to reduce the amount of data they are paying to receive.
Why do you want to blockmobile ads?
Implications
It's important to state that adverts which aren't delivered aren't paid for, but brands need to develop strategies that ensure
that their messages are still seen by relevant consumers.
Adverts in apps, and native ads, or adverts that are more closely integrated with publisher content, are less likely to be
blockable.
Brands also need to be confident that people want to see their messages, and if they do, develop a content strategy and use
sponsorship & partnerships more.
Brands can also experiment with being publishers themselves.
References
Reuters: Netflix beats forecasts with 62 million streaming subscribers
Techcrunch: YouTube Red, a $9.99 site-wide ad-free subscription with Play Music, launches Oct 28
PageFair: The 2015 Ad Blocking Report
Digiday: Ad blocking app Crystal's creator: This isn't extortion
3. The evolution of search
Search is becoming more specific to platforms particularly mobile (and voice), more personalised and tailored to the
user, and it's now possible to search within apps, and not just content on the web.
Mobile searches now outnumber desktop searches globally. Mobile means more voice search, more visual search, and more
location-based search, creating more opportunity for the results to be personalised. Google now offers demographic targeting for
search ads.
'Personal Assistant' apps are starting to replace search by anticipating needs and providing prompts.
The Google Now app acts as a personal assistant, providing notifications tailored to the user and context (location, time of day) to
anticipate future needs and searches. Similar services are offered, or coming soon, from Bing, Facebook, Baiduand others.
Google is also testing searches within apps, even those not on the searcher's device, and will stream in search results from apps
without requiring a download.
Siri and Cortana are both driving more search through voice, providing more competition for Google.
Implications
Ensure that your brands are visible to as many search technologies as possible.
Organic search will become harder to get right as different providers look for different attributes in content.
It may be harder for new brands to cut through on search, which will be an issue if their strategies are driven by search.
References
Fortune: Facebook has taken over from Google as a traffic source for news
Search Engine Land: Worldwide, More Than Half Of Google’s Searches Happen On Mobile
Google Now
Meet RankBrain: The artificial intelligence that's now processing Google search results
MacWorld: How to search in iOS 9: Deep links, proactive and natural language searching on your iPhone and
iPad
Marketing Land: Google App Streaming: Abig move in building "The web of apps"
Microsoft: Cortana in more places
Engadget: Facebook 'M' makes Messenger your personal assistant
4. Messaging & notifications
Messaging apps now have very high levels of users – WhatsApp, Facebook Messenger and WeChat now all have
more than 600m active users.
In 2015 more messages will be sent than emails, according to Juniper Research. New battle lines being drawn between these
popular messaging platforms -as well as others like iMessage, Kik, Line and Jott-as separate ecosystems.
Messaging apps are also trying to replace the notification alerts and app stores of the major operating systems.
Messaging apps aren't just for sending text between friends, they're for sharing everything from pictures to videos to music, and
can integrate with other apps and services.
WeChat pioneered the integration of other apps – for example you can integrate the DidiKuaiditaxi-booking app to call a cab
quickly, and pay through AliPay, which is also integrated – and we expect this to become the model for the others.
WeChat is now powering communication in some towns in China, letting users book doctor's appointments, reporting incidents to
the police, booking flights and more.
Facebook started integrating apps and games into Messenger in March, including Giphy, Memes, and Doodle Draw.
Integrating into Messenger gives 3rd party apps a way of reaching millions of people easily.
Facebook has been testing its 'personal assistant' M within Messenger, allowing people to ask it to do specific tasks, for example
getting a refund from Amazon.
Messenger can also be used to contact companies securely.
Implications
Brands need to make their content fits into the new world of messaging, from 'share' buttons to full integration.
It's not just a case of producing content that works in different mobile operating systems, it has to work with the ecosystems
and protocols of different app platforms too.
There is also potential for brands to consider offering customer support on the new platforms in addition to existing channels.
References
Atlas: Monthly active users (MAUs) for messaging apps
V3: Instant messaging to overtake email as biggest digital communication platform
Andreesen Horowitz: When one app rules them all: The case of WeChat and mobile in China
Techcrunch: Why WeChat City Services is a game-changing move for smartphone adoption
Wired: Facebook Messenger: inside Zuckerberg's app for everything
5. Algorithms vs curation
Algorithms are becoming smarter, making newsfeeds more nuanced and giving search results more context, but
there is also now a trend towards human curation in key areas providing greater value to ecosystems.
There is now a belief that human curation can produce better results for the end user in certain areas, specifically music discovery,
commerce and news, where a sense of context or taste is important.
Twitter Moments has editors who create 'moments' of connected tweets, to make it easier to explore major events.
Apple Music's Beats One radio station has DJs to help people discover the best new music, rather than relying on algorithms as
Spotify does.
Pinterest has a curated store within its app, with taste-makers selecting the most interesting products, rather than the most liked or
pinned.
YouTube channels like Eton Messy are creating compilations of music.
Within podcasts, RadioTopiais a curated collection of shows.
Long Reads shares a collection of the best journalism every week.
Implications
The skill involved in curation costs money, so there will be opportunities to advertise in, or sponsor curated content.
Brands need to learn to work with curators – for example you can see this as a new alternative to SEO for gaining popularity
and traction. This is particularly important for new brands – curators are very important for bringing attention to new products.
Curation makes trust and authenticity even more important.
References
Stratechery: Curation and Algorithms
Buzzfeed News
Computerworld: The surprising genius of Apple's Beats 1 radio
Wired: Pinterest now has a shop so more shoppers shop on Pinterest
Eton Messy
Radiotopia
Longreads
6. Maps & location
As the world becomes more mobile, location and maps have become increasingly important.
Maps can be seen as their own ecosystems – users can create their own maps with tools from Google, but they can't alter the data
that the maps are based on.
Creating your own mapping ecosystem can give companies a special advantage – it can have features tailored to precise needs,
and act as a differentiator.
A quarter of cars made now have in-built navigation systems and this will continue to grow. Mapping will also be vital for self-
driving cars, if and when they appear.
A consortium of German car manufacturers, Daimler, BMW and Audi, bought Nokia's mapping technology in August, seeing it as
a crucial way to compete with Google for mobile advertising, and also develop their own points of difference.
Other bidders included Facebook, Baiduand Uber.
Uber has signed a multi-year deal with TomTom for access to its maps and traffic data.
Apple is buying mapping companies and also creating its own maps, as Google did with streetview. On Apple devices, Apple's
own maps are used 3.5 times more than Google Maps.
Google is letting developers integrate with Google maps to add predictive travel times.
What3Words is trying to map the world with easy to remember names for precise places.
Implications
Maps are becoming even less open, so brands need to make sure that they are as visible as possible on as many platforms
as possible.
People look at maps when planning shopping trips. Brands should see journey planning as part of a communications
strategy – consider geo-targeted prompts for example.
References
Recode: Apple acquires Mapsense, a mapping visualization startup
German car makers in stand-off with Nokia over bid for maps business HERE
Venturebeat: Google Maps now lets third-party developers add predictive travel times to their own apps
7. Recognition
Technology is starting to allow people and things to be recognised in broad ways, like gender and (approximate) age,
but also in more precise ways.
Lots of future technologies like self-driving cars depend on visual recognition, and just as voice recognition has become a lot more
reliable and usable over the past few years, visual recognition is also improving.
Google can now recognise features in photos e.g. 'Find the picture of me sitting on a boat'.
Pinterest has introduced visual search to help users find 'visually similar results'.
Blipparcan recognise some brands (& breeds of dog, and fruit), not just logos.
Implications
As recognition improves, it's more important how things look, from distinctive logos to distinctive products – a potential
consideration for new product development.
References
TNW: Blippar app visual overhaul aims to identify everything around you
BBC News: Google makes image recognition advance
Facebook: How does Facebook suggest tags?
Cnet: Self-driving car tech lets computers see our world like never before
8. Sentiment
The social world is all about self-expression, so it's more important than ever to understand the sentiment of what
people are saying.
Like images, sentiment has always been a hard thing to interpret – automated tools have always struggled with context, slang,
double negatives and more.
New tools are starting to make sentiment easier to determine, and more valuable.
Affectiva, a company that grew out of MIT's Media Lab, uses facial recognition to try to assess emotional responses.
Microsoft has also launched an experimental site where you can upload pictures and challenge it to identify sentiment.
In media, emojis make it easy to read sentiment.
Emojis can now be searched for, for example on Instagram posts, and the text descriptions of YouTube videos.
Facebook is testing a new 'reactions' panel to supplement it's Like button. The 6 emoji reactions are Love, Haha, Yay, Wow, Sad,
and Angry, and should make it easier to determine sentiment than just the 'Like' button.
Implications
We've traditionally targeted by daypart as a proxy for mood – people feel different in the morning to the evening.
The opportunity for brands, is to identify what sort of emotions people associate with them and what they can learn from this
in order to serve their customers better, and create a deeper relationship.
Targeting based on emotion could supersede this; targeting people based on how they are actually feeling.
Reference
Affectiva
Quartz: Microsoft wants to guess how you're feeling
Instagram: Three new filters and emoji hashtags
Mashable: Everything we know so far about Facebook's new reactions
Marketing: Infographic: How does Monty compare with #ManOnTheMoon on Twitter, plus emoji count
9. Dynamic pricing
The pricing of goods and services is becoming increasingly flexible and dynamic, based on real time data use.
Companies like Uberare using real-time pricing based on demand & supply, and retailers are starting to use data to influence
pricing in innovative ways.
Dynamic pricing has become a big issue in retail and ecommerce, because it is now possible to factor in competitor prices and
other data to vary prices quickly and in real time across multiple stores and platforms.
Retailers are able to price match at tills, and also give customers control over their choice of special offers.
Online it is possible to see a lot of information about a shopper – purchase history, location, operating system and more – and this
data could be used to offer different prices, or promotions.
Uber can vary prices minute by minute based on supply and demand; higher prices attract more drivers to the streets, and
discourage passengers until a new equilibrium is met.
Airlines have always varied prices based on multiple factors, but recently Iberia has experimented with auctioning airline tickets.
Implications
Brands need to know that this is happening and work out if any of the strategies could be applicable to them.
This needs both ecommerce and retail systems capable of responding.
Brands need to make sure that they can measure and act on the most relevant customer and external data.
It also needs a mobile strategy to integrate with live prices and drive footfall.
References
Uber: What is surge pricing?
Geekwire: It's official: Amazon is opening its first-ever bookstore in Seattle
Waitrose: Pick your own offers
Wall Street Journal: Websites vary prices, deals based on users' information
El Pais: Iberia to launch flight auction website
10. 'Telepathy'
Mark Zuckerberg has joked that the future of communication is telepathy, but there are already services that you can
communicate with without giving written or spoken commands.
For some services the future will be interaction via brain signals, or their reading of signs like a pulse or heartbeat.
Wearable devices like smart watches are already collecting this data, and it's likely that 3rd party services will find ways to
interpret these cues.
Uniqlohad an installation in a Sydney store that analysed customers' brain signals to suggest a perfect shirt.
An agency created a 'hands-free' Tinder for the Apple Watch that swiped left or right depending on the user's heartbeat.
Researchers at Telefonica were able to show when people were bored or stressed on their phones, based on frequency of
opening apps, and intensity of use.
Implications
'Telepathy' examples like this show the nascent power of sensors, and of different services and devices working together.
This could be used in the future to make services more intuitive and personalised to customers.
Together with image and sentiment recognition, plus dynamic pricing, it shows how AIis starting to be used to remove
conscious human instructions and provide an understanding between technology and people.
References
The Telegraph: The future of Facebook is telepathy, reveals Mark Zuckerberg
Mashable: Uniqlo is using neuroscience to help you find the perfect shirt
BBC Internet Blog: Mind control your TV
Huffington Post: 'Hands-Free Tinder' app will let you swipe right with your heartbeat
MIT Technology Review: Your smartphone can tell if you're bored
2015 Trends revisited
View the 2015 Trends on Warc
1. App simplification and integration
2015 saw lots of app integration & deep linking, especially into messaging apps, such as Giphyintegrating into Facebook
Messenger – and it's possible to order a Lyfttaxi in Slack. Single shot apps continued to be launched, for example Instagram's
Boomerang video app.
2. Video ads
Online video continued to grow, with Facebook reporting 8bn ad views a day, and Snapchat 6bn. Snapchat persuaded
advertisers to make 'vertical' adverts, and Twitter now offers pre-rolls.
3. Connected TV
The rise of connected TV has been seen through Netflix's continued growth and popularity. Plus Amazon's reported payment of
$7m an episode for Top Gear, shows how seriously they are taking it. Amazon also introduced the Fire Stick and may be
launching a built in shopping channel.
4. Paying to go ad-free
This has continued, with all services gaining users, and YouTube launching Red. But there's also been a big rise in ad-blocking
use, so we've adapted this to become the second trend for this year, showing these two combining to make reaching some
audiences with advertising harder.
5. New news sites
BuzzFeed, continues to grow, and new services like Snapchat's Discover, Facebook's Instant Articles and Google News
effectively put new sites on a par with long established newspapers on mobile.
6. Start-ups going full stack
The diversification continues with Uber getting more involved with delivery (food and more), Snapchat becoming a media channel,
and Pinterest becoming a store.
7. Voice
Voice search has continued to grow, with Google reporting that voice recognition is now 93% accurate – in English at least. New
voice services launched, for example Microsoft's Cortana, and Facebook's M assistant will also be able to respond to voice. As
we saw with this year's trends, we're now moving beyond voice into brain pattern communication.
8. Symbols & emojis
Emojis were everywhere, from paid campaigns on Twitter (#ShareACoke), emojis for Star Wars, to Facebook's emoji reaction
buttons. Universal pictures bought the rights to make an emoji movie.
9. Virtual reality
Oculus Rift did not launch, but Google's 'Oculus Thrift' Cardboard was used by lots of brands, for example the NYT who are
sending over 1m to subscribers, and making special films for them to watch. Meanwhile both Facebook and YouTube introduced
360 degree videos that don't need special viewing apparatus.
10. Robots
Amazon proposed drone channels in the sky, Google showed how self-driving cars would be far safer, and lots of other
companies like Apple, Uberand Mercedes are working on self-driving cars.
About the author
Dan Calladine is global head of media futures, Carat
www.carat.com
@caratglobal
www.linkedin.com/company/carat
©Copyright Warc2015
Warc Ltd.
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Tel: +44(0)2074678100, Fax: +(0)2074678101
www.warc.com
All rights reservedincludingdatabaserights. This electronic fileis for thepersonal useof authorisedusers basedat thesubscribingcompany's officelocation. It may not bereproduced,
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Carats top 10 trends 2016

  • 1. Source: Warc Exclusive, January 2016 Downloaded fromwarc.com Carat's top 10 trends for 2016 This article highlights 10 trends in technology that are expected to become more important and relevant to marketers in 2016. These trends involve two big themes: the rise of closed, competing ecosystems and the development of artificial intelligence (AI) and actionable measurement. The ecosystems trends include walled gardens, new challenges in advertising, the evolution of search, messaging and notifications, and algorithms versus human curation. The AItrends involve maps and location, recognition, sentiment, dynamic pricing and telepathy. The trends predicted for 2015 are also revisited. Overview Trends in context We have been producing trend reports for over 5 years, looking at new technologies that will become more important and relevant to clients. We've covered issues such as: Wearable technology Location and local Payments Beacons Like these, the trends for 2016 are all growing in importance, and will all have implications for clients. Big themes This year's trends involve two big themes: 1. The rise of closed, competing ecosystems 2. The development of artificial intelligence, and actionable measurement Trends for 2016 Ecosystems 1. Walled gardens 2. New challenges in advertising 3. The evolution of search 4. Messaging & notifications 5. Algorithms vs. curation A.I. 6. Maps & location 7. Recognition 8. Sentiment 9. Dynamic Pricing 10. 'Telepathy' View the presentation on Slideshare Carat's 10 Trends for 2016
  • 2. 1. Walled gardens Digital media is becoming less open, and more like the 'walled gardens' and portals of the early 2000s. A 'walled garden' is a safe, controlled publisher ecosystem – often within apps – instead of links to the wide web. This has happened because it's a faster experience than moving between apps and sites on mobile, and large publishers want to keep their audience for longer. Examples include Snapchat's Discover, Facebook's Instant Articles, Twitter's Moments, and the YouTube for Kids app. Walled gardens often have content & adverts native to the platform, rather than adverts like banners which can run across multiple publishers. The impact of walled gardens has already been seen in lots of ways. For example Snapchat has insisted that advertisers in its Discovery section use vertical video, as that format works best within its content. Buy Buttons, where people can click on a button to buy immediately rather than go to a third party page, are safer within apps like Pinterest and Google Search, than the web at large – which is why these buttons generally only exist in apps. The threat of ad blocking can be seen as an incentive to publishers to move to – walled gardens – on the web (& mobile web) it's easier to identify and block ads; within walled gardens publishers have more control over how adverts appear, thus making them more difficult to block with ad blocking technology. Implications Walled gardens are likely to continue to proliferate at the expense of the more open web. Brands need to choose major partners, and work within these walled gardens, including making specific content and adverts. To do this brands need to set rigorous KPIs and be clear on the most appropriate ones. In some ways this is beneficial to brands – it's easier to guarantee a brand-friendly advertising environment. There are two major downsides: 1. Brands need to produce more formats to fit into different ecosystems. 2. Bespoke formats mean that programmatic advertising is harder, and the data tracking delivery and performance will be more silo-ed. References
  • 3. Wikipedia: Closed platform Snapchat: Introducing Discover Facebook: Instant articles Twitter: Moments, the best of Twitter in an instant YouTube Kids Snapchat persuades brands to go vertical with their video: Mobile phones change the way we watch Pinterest: Buyable Pins start rolling out today! Techcrunch: Google unveils "purchases on Google", which are basically buy buttons in mobile ads
  • 4. 2. New challenges in advertising There are a lot of new challenges in how advertising works, how advertising pays for free content, and the perceived value exchange between consuming ads and getting free content. These challenges have emerged for two reasons: 1. Netflix, which now has over 69 million paying subscribers, has popularised the idea of paying for ad-free video content rather than have it free, subsidised by advertising. The average subscriber household now watches over 2 hours of ad-free content per day. This model is now being adopted by other services, most notably Amazon Prime and Sky's Now TV and YouTube Red. 2. Ad blockers are free to access and install. Usage estimates vary, but millions are using them around the world, easily blocking ads on the web. People generally use ad blockers to improve their experience (no pre-roll videos), to speed up load times, to avoid being tracked, and, on mobile, to reduce the amount of data they are paying to receive. Why do you want to blockmobile ads?
  • 5. Implications It's important to state that adverts which aren't delivered aren't paid for, but brands need to develop strategies that ensure that their messages are still seen by relevant consumers. Adverts in apps, and native ads, or adverts that are more closely integrated with publisher content, are less likely to be blockable. Brands also need to be confident that people want to see their messages, and if they do, develop a content strategy and use sponsorship & partnerships more. Brands can also experiment with being publishers themselves. References Reuters: Netflix beats forecasts with 62 million streaming subscribers Techcrunch: YouTube Red, a $9.99 site-wide ad-free subscription with Play Music, launches Oct 28 PageFair: The 2015 Ad Blocking Report Digiday: Ad blocking app Crystal's creator: This isn't extortion
  • 6. 3. The evolution of search Search is becoming more specific to platforms particularly mobile (and voice), more personalised and tailored to the user, and it's now possible to search within apps, and not just content on the web. Mobile searches now outnumber desktop searches globally. Mobile means more voice search, more visual search, and more location-based search, creating more opportunity for the results to be personalised. Google now offers demographic targeting for search ads. 'Personal Assistant' apps are starting to replace search by anticipating needs and providing prompts. The Google Now app acts as a personal assistant, providing notifications tailored to the user and context (location, time of day) to anticipate future needs and searches. Similar services are offered, or coming soon, from Bing, Facebook, Baiduand others. Google is also testing searches within apps, even those not on the searcher's device, and will stream in search results from apps without requiring a download. Siri and Cortana are both driving more search through voice, providing more competition for Google. Implications Ensure that your brands are visible to as many search technologies as possible. Organic search will become harder to get right as different providers look for different attributes in content. It may be harder for new brands to cut through on search, which will be an issue if their strategies are driven by search. References
  • 7. Fortune: Facebook has taken over from Google as a traffic source for news Search Engine Land: Worldwide, More Than Half Of Google’s Searches Happen On Mobile Google Now Meet RankBrain: The artificial intelligence that's now processing Google search results MacWorld: How to search in iOS 9: Deep links, proactive and natural language searching on your iPhone and iPad Marketing Land: Google App Streaming: Abig move in building "The web of apps" Microsoft: Cortana in more places Engadget: Facebook 'M' makes Messenger your personal assistant
  • 8. 4. Messaging & notifications Messaging apps now have very high levels of users – WhatsApp, Facebook Messenger and WeChat now all have more than 600m active users. In 2015 more messages will be sent than emails, according to Juniper Research. New battle lines being drawn between these popular messaging platforms -as well as others like iMessage, Kik, Line and Jott-as separate ecosystems. Messaging apps are also trying to replace the notification alerts and app stores of the major operating systems. Messaging apps aren't just for sending text between friends, they're for sharing everything from pictures to videos to music, and can integrate with other apps and services. WeChat pioneered the integration of other apps – for example you can integrate the DidiKuaiditaxi-booking app to call a cab quickly, and pay through AliPay, which is also integrated – and we expect this to become the model for the others. WeChat is now powering communication in some towns in China, letting users book doctor's appointments, reporting incidents to the police, booking flights and more. Facebook started integrating apps and games into Messenger in March, including Giphy, Memes, and Doodle Draw. Integrating into Messenger gives 3rd party apps a way of reaching millions of people easily. Facebook has been testing its 'personal assistant' M within Messenger, allowing people to ask it to do specific tasks, for example getting a refund from Amazon. Messenger can also be used to contact companies securely.
  • 9. Implications Brands need to make their content fits into the new world of messaging, from 'share' buttons to full integration. It's not just a case of producing content that works in different mobile operating systems, it has to work with the ecosystems and protocols of different app platforms too. There is also potential for brands to consider offering customer support on the new platforms in addition to existing channels. References Atlas: Monthly active users (MAUs) for messaging apps V3: Instant messaging to overtake email as biggest digital communication platform Andreesen Horowitz: When one app rules them all: The case of WeChat and mobile in China Techcrunch: Why WeChat City Services is a game-changing move for smartphone adoption Wired: Facebook Messenger: inside Zuckerberg's app for everything
  • 10. 5. Algorithms vs curation Algorithms are becoming smarter, making newsfeeds more nuanced and giving search results more context, but there is also now a trend towards human curation in key areas providing greater value to ecosystems. There is now a belief that human curation can produce better results for the end user in certain areas, specifically music discovery, commerce and news, where a sense of context or taste is important. Twitter Moments has editors who create 'moments' of connected tweets, to make it easier to explore major events. Apple Music's Beats One radio station has DJs to help people discover the best new music, rather than relying on algorithms as Spotify does. Pinterest has a curated store within its app, with taste-makers selecting the most interesting products, rather than the most liked or pinned. YouTube channels like Eton Messy are creating compilations of music. Within podcasts, RadioTopiais a curated collection of shows. Long Reads shares a collection of the best journalism every week. Implications The skill involved in curation costs money, so there will be opportunities to advertise in, or sponsor curated content. Brands need to learn to work with curators – for example you can see this as a new alternative to SEO for gaining popularity and traction. This is particularly important for new brands – curators are very important for bringing attention to new products. Curation makes trust and authenticity even more important. References
  • 11. Stratechery: Curation and Algorithms Buzzfeed News Computerworld: The surprising genius of Apple's Beats 1 radio Wired: Pinterest now has a shop so more shoppers shop on Pinterest Eton Messy Radiotopia Longreads
  • 12. 6. Maps & location As the world becomes more mobile, location and maps have become increasingly important. Maps can be seen as their own ecosystems – users can create their own maps with tools from Google, but they can't alter the data that the maps are based on. Creating your own mapping ecosystem can give companies a special advantage – it can have features tailored to precise needs, and act as a differentiator. A quarter of cars made now have in-built navigation systems and this will continue to grow. Mapping will also be vital for self- driving cars, if and when they appear. A consortium of German car manufacturers, Daimler, BMW and Audi, bought Nokia's mapping technology in August, seeing it as a crucial way to compete with Google for mobile advertising, and also develop their own points of difference. Other bidders included Facebook, Baiduand Uber. Uber has signed a multi-year deal with TomTom for access to its maps and traffic data. Apple is buying mapping companies and also creating its own maps, as Google did with streetview. On Apple devices, Apple's own maps are used 3.5 times more than Google Maps. Google is letting developers integrate with Google maps to add predictive travel times. What3Words is trying to map the world with easy to remember names for precise places.
  • 13. Implications Maps are becoming even less open, so brands need to make sure that they are as visible as possible on as many platforms as possible. People look at maps when planning shopping trips. Brands should see journey planning as part of a communications strategy – consider geo-targeted prompts for example. References Recode: Apple acquires Mapsense, a mapping visualization startup German car makers in stand-off with Nokia over bid for maps business HERE Venturebeat: Google Maps now lets third-party developers add predictive travel times to their own apps
  • 14. 7. Recognition Technology is starting to allow people and things to be recognised in broad ways, like gender and (approximate) age, but also in more precise ways. Lots of future technologies like self-driving cars depend on visual recognition, and just as voice recognition has become a lot more reliable and usable over the past few years, visual recognition is also improving. Google can now recognise features in photos e.g. 'Find the picture of me sitting on a boat'. Pinterest has introduced visual search to help users find 'visually similar results'. Blipparcan recognise some brands (& breeds of dog, and fruit), not just logos. Implications As recognition improves, it's more important how things look, from distinctive logos to distinctive products – a potential consideration for new product development. References TNW: Blippar app visual overhaul aims to identify everything around you BBC News: Google makes image recognition advance Facebook: How does Facebook suggest tags? Cnet: Self-driving car tech lets computers see our world like never before
  • 15. 8. Sentiment The social world is all about self-expression, so it's more important than ever to understand the sentiment of what people are saying. Like images, sentiment has always been a hard thing to interpret – automated tools have always struggled with context, slang, double negatives and more. New tools are starting to make sentiment easier to determine, and more valuable. Affectiva, a company that grew out of MIT's Media Lab, uses facial recognition to try to assess emotional responses. Microsoft has also launched an experimental site where you can upload pictures and challenge it to identify sentiment. In media, emojis make it easy to read sentiment. Emojis can now be searched for, for example on Instagram posts, and the text descriptions of YouTube videos. Facebook is testing a new 'reactions' panel to supplement it's Like button. The 6 emoji reactions are Love, Haha, Yay, Wow, Sad, and Angry, and should make it easier to determine sentiment than just the 'Like' button. Implications We've traditionally targeted by daypart as a proxy for mood – people feel different in the morning to the evening. The opportunity for brands, is to identify what sort of emotions people associate with them and what they can learn from this in order to serve their customers better, and create a deeper relationship. Targeting based on emotion could supersede this; targeting people based on how they are actually feeling. Reference Affectiva Quartz: Microsoft wants to guess how you're feeling Instagram: Three new filters and emoji hashtags Mashable: Everything we know so far about Facebook's new reactions Marketing: Infographic: How does Monty compare with #ManOnTheMoon on Twitter, plus emoji count
  • 16. 9. Dynamic pricing The pricing of goods and services is becoming increasingly flexible and dynamic, based on real time data use. Companies like Uberare using real-time pricing based on demand & supply, and retailers are starting to use data to influence pricing in innovative ways. Dynamic pricing has become a big issue in retail and ecommerce, because it is now possible to factor in competitor prices and other data to vary prices quickly and in real time across multiple stores and platforms. Retailers are able to price match at tills, and also give customers control over their choice of special offers. Online it is possible to see a lot of information about a shopper – purchase history, location, operating system and more – and this data could be used to offer different prices, or promotions. Uber can vary prices minute by minute based on supply and demand; higher prices attract more drivers to the streets, and discourage passengers until a new equilibrium is met. Airlines have always varied prices based on multiple factors, but recently Iberia has experimented with auctioning airline tickets. Implications
  • 17. Brands need to know that this is happening and work out if any of the strategies could be applicable to them. This needs both ecommerce and retail systems capable of responding. Brands need to make sure that they can measure and act on the most relevant customer and external data. It also needs a mobile strategy to integrate with live prices and drive footfall. References Uber: What is surge pricing? Geekwire: It's official: Amazon is opening its first-ever bookstore in Seattle Waitrose: Pick your own offers Wall Street Journal: Websites vary prices, deals based on users' information El Pais: Iberia to launch flight auction website
  • 18. 10. 'Telepathy' Mark Zuckerberg has joked that the future of communication is telepathy, but there are already services that you can communicate with without giving written or spoken commands. For some services the future will be interaction via brain signals, or their reading of signs like a pulse or heartbeat. Wearable devices like smart watches are already collecting this data, and it's likely that 3rd party services will find ways to interpret these cues. Uniqlohad an installation in a Sydney store that analysed customers' brain signals to suggest a perfect shirt. An agency created a 'hands-free' Tinder for the Apple Watch that swiped left or right depending on the user's heartbeat. Researchers at Telefonica were able to show when people were bored or stressed on their phones, based on frequency of opening apps, and intensity of use. Implications 'Telepathy' examples like this show the nascent power of sensors, and of different services and devices working together. This could be used in the future to make services more intuitive and personalised to customers. Together with image and sentiment recognition, plus dynamic pricing, it shows how AIis starting to be used to remove conscious human instructions and provide an understanding between technology and people. References The Telegraph: The future of Facebook is telepathy, reveals Mark Zuckerberg Mashable: Uniqlo is using neuroscience to help you find the perfect shirt BBC Internet Blog: Mind control your TV Huffington Post: 'Hands-Free Tinder' app will let you swipe right with your heartbeat MIT Technology Review: Your smartphone can tell if you're bored
  • 19. 2015 Trends revisited View the 2015 Trends on Warc 1. App simplification and integration 2015 saw lots of app integration & deep linking, especially into messaging apps, such as Giphyintegrating into Facebook Messenger – and it's possible to order a Lyfttaxi in Slack. Single shot apps continued to be launched, for example Instagram's Boomerang video app. 2. Video ads Online video continued to grow, with Facebook reporting 8bn ad views a day, and Snapchat 6bn. Snapchat persuaded advertisers to make 'vertical' adverts, and Twitter now offers pre-rolls. 3. Connected TV The rise of connected TV has been seen through Netflix's continued growth and popularity. Plus Amazon's reported payment of $7m an episode for Top Gear, shows how seriously they are taking it. Amazon also introduced the Fire Stick and may be launching a built in shopping channel. 4. Paying to go ad-free This has continued, with all services gaining users, and YouTube launching Red. But there's also been a big rise in ad-blocking use, so we've adapted this to become the second trend for this year, showing these two combining to make reaching some audiences with advertising harder. 5. New news sites BuzzFeed, continues to grow, and new services like Snapchat's Discover, Facebook's Instant Articles and Google News effectively put new sites on a par with long established newspapers on mobile. 6. Start-ups going full stack The diversification continues with Uber getting more involved with delivery (food and more), Snapchat becoming a media channel, and Pinterest becoming a store. 7. Voice Voice search has continued to grow, with Google reporting that voice recognition is now 93% accurate – in English at least. New voice services launched, for example Microsoft's Cortana, and Facebook's M assistant will also be able to respond to voice. As we saw with this year's trends, we're now moving beyond voice into brain pattern communication. 8. Symbols & emojis Emojis were everywhere, from paid campaigns on Twitter (#ShareACoke), emojis for Star Wars, to Facebook's emoji reaction buttons. Universal pictures bought the rights to make an emoji movie. 9. Virtual reality Oculus Rift did not launch, but Google's 'Oculus Thrift' Cardboard was used by lots of brands, for example the NYT who are sending over 1m to subscribers, and making special films for them to watch. Meanwhile both Facebook and YouTube introduced 360 degree videos that don't need special viewing apparatus. 10. Robots
  • 20. Amazon proposed drone channels in the sky, Google showed how self-driving cars would be far safer, and lots of other companies like Apple, Uberand Mercedes are working on self-driving cars.
  • 21. About the author Dan Calladine is global head of media futures, Carat www.carat.com @caratglobal www.linkedin.com/company/carat ©Copyright Warc2015 Warc Ltd. 85NewmanStreet, London, UnitedKingdom, W1T3EU Tel: +44(0)2074678100, Fax: +(0)2074678101 www.warc.com All rights reservedincludingdatabaserights. This electronic fileis for thepersonal useof authorisedusers basedat thesubscribingcompany's officelocation. It may not bereproduced, postedonintranets, extranets or theinternet, e-mailed, archivedor sharedelectronically either withinthepurchaser's organisationor externally without express writtenpermissionfrom Warc.