WHERE
NEXT?A n e x p l o r a t i o n o f t h e
f u t u re o f f a n s a n d
c o n s u m e r s a n d w h y i t
m a t t e r s f o r b r a n d s .
It’s no secret that today’s consumer landscape
is changing fast. As the popularity of traditional
print, broadcast and outdated social mediums
become less efficient in reaching consumers,
this audience is heading to new areas to
engage with their passions through content
and experiences. Octagon helps answer where
fans are going next and how brands can reach
them there.
Where Next? 2
01 Adult Play
From board games to immersive playgrounds,
adults are diving back into their childhoods.
According to a study conducted by
Technavio, the global board game market will
continue to grow into the early 2020s, largely
due to the target audience changing from
children to adults. Instead of Chutes and
Ladders, they’re playing Settlers of Catan at
their monthly game night. Adults are
reimagining childhood playgrounds and the
popularity helped the Museum of Ice Cream
launch “The Pint Shop” and an exclusive deal
with Target, as well as inspired the creation of
The Pizza Museum, due to open this October
in Manhattan.
Instagram and Snapchat are reinventing
commerce, turning influencers into POS and
keeping consumers in-app with native
payment features. With the ability to purchase
a product within clicks of an Instagram scroll,
this seamless customer experience is
changing the way products are discovered
and purchased.
For thousands of years, we’ve been gathering
socially around music. With the addition of
social features, it’s no surprise that apps like
Spotify and Apple Music could become their
own social networks. According to Nielsen,
Americans spend, on average, 32 hours per
week listening to music. That’s twice as long
as they’re spending on social media (Social
Media Today).
02 Social Ecommerce
03 The New Social
04 Closed
Conversations
Social is no longer just about sharing what
you’re up to with the world. Closed
conversation apps like Slack, Discord, Twitch
and even Instagram DMs are giving users the
opportunity to engage in private, meaningful
conversations, selecting exactly who they
want to connect with. Twitch recently
launched a feature that allows users to create
“Rooms” for closed discussions and VIP
streams. With this behavioral shift, brands
need to find new ways to be invited into those
closed conversations.
Where Next? 3
05 Blockchain
Security and transparency—two qualities consumers expect from big brands and two features
Blockchain guarantees as it continually positions itself as more than just a technology. Blockchain, a
tamper-free digital ledger used for recording financial transactions and virtually anything of value, has
the power to further enable consumers to be creators, acting as a platform for creators of
intellectual property to receive value for their work.
06 Megabrands
From Amazon to Disney, a new age of
megabrands has dawned. Consumers have
limited the number of places they have to go
to get everything they need. While Amazon
was responsible for 44% of all U.S. e-
commerce sales in 2017 (One Click Retail),
the company has seamlessly entered into
sports streaming and grocery delivery.
Additionally, consolidation, distribution
controls and content arms races are keeping
the TMT mergers and acquisitions industry
busy, with billions in play with recent
megamergers involving FOX, Disney, AT&T
and Time Warner. As the battle intensifies for
consumers’ dollars and attention, expect
more business if you are a banker and higher
costs if you are a consumer.
A deluge of compelling content like
audiobooks, podcasts and music are freeing
consumers’ hands while they cook, commute
and work. According to a Nielsen Q1 2018
research study, 69% of podcast listeners
agreed that podcast ads made them aware of
new products or services, giving brands
ample opportunity to reach their target even
as their eyes are elsewhere while multitasking.
While the technology does not allow for
traditional advertising, Amazon’s voice
assistant, Alexa, has been integrated with
Sonos speakers, Garmin navigation and BMW
vehicles, and brands have the opportunity to
use content to continue the conversation with
their consumers through custom Alexa Skills.
07 Screenless
Multitasking
Where Next? 4
With the rise of streaming, niche sports (think:
speed climbing) and diaspora sports (think:
rugby or cricket) no longer need a broadcast
deal to gain fans; they’re gaining them online.
Access to these sports and athletes are
becoming a cost-effective way for brands to
engage with specific target communities.
09 New Sports
& Games
08 America’s
New Game
The NBA is making a social impact,
generating its own buzz by tapping into
consumers’ cultural interests across fashion,
gaming, music and technology. The league’s
strategic involvement in social media
platforms has empowered players to become
their own brands, creating distinct
personalities that fans love engaging with. As
the NBA dives into the mental health
conversation, the opportunities for future
topics in the space are seemingly unlimited.
10 Sports Streaming
2018 marks the year Media Rights overtook
all other revenue drivers across the sports
ecosystem. The shift in revenue drivers is
accompanied by another sizeable shift: the
streaming sports fan becoming
commonplace. As traditional sports head to
streaming sites, leagues, teams and athletes
are embracing the evolving reality of the
multiscreen, digital-first sports fan. While
traditional linear broadcasters try to balance
the lionshare of audience reach with the next
generation of OTT consumers, new platform
distributors are bidding on sports rights,
resulting in evergrowing rights fees for
premium properties.
11 Active Streaming
Live streams are turning audience members
into active participants. Platforms like Twitch
allow consumers to interact with live content
and give brands an opportunity to enter
conversations as they’re happening to truly
connect with their consumers. Most recently,
ESPN’s Darren Rovell reported the Alliance of
American Football will release a new in-game
feature, enabling fans to watch a game in-app
while betting on the same screen. They’re also
working with MGM to put wearables on
players to better assess odds.
Where Next? 5
Subscription models are invigorating new life
(and audiences) into traditional business
models, further enabling the consumption of
experiential passions. In March, the Oakland
A’s unveiled The Treehouse, an area within
their stadium that carries its own subscription
model with access to games without a true
ticket. A younger customer base is heading to
the movies with MoviePass, while Cinemark
has seen early success with Movie Club, its
own subscription service and loyalty program.
With 55% of millennials spending more on
events than ever before (Eventbrite), the new
category of experiential subscriptions will
continue to build loyalty as consumers look for
a good deal.
With more and more streaming options,
consumers are becoming loyal to content, not
platforms. Whether they’re dropping HBO
during the Game of Thrones hiatus or picking
up Netflix to binge the second season of
Ozark, consumer loyalty is tied to content, as
not one distribution channel will be able to
cater to every consumer’s needs. While
seasonal partnerships can be risky, cultural
juggernaut shows have proven to extend the
conversation and reach beyond weekly
episodes or a singular release.
12 Seasonal
Subscriptions
13 Experiential
Subscriptions
14 Immersive Fiction
The popularity of experiences like Escape the
Room and Sleep No More prove that
consumers want to join the narratives, places
and experiences where they are a character,
not just a participant. The in-progress Star
Wars-inspired resort, coming to Walt Disney
World, will give guests an opportunity to
become active citizens of the galaxy as they
embark on an immersive voyage during
their stay.
The line between work, life and play continues
to blur and the rise of WeWork and other
multipurpose spaces (e.g. restaurants and
hotel lobbies) are opening the door for
experiential programming. Female-focused
spaces like the Bumble Hive and The Wing
not only function as co-working spaces to
inspire future women leaders, but brick and
mortar locations to strengthen their brands
(and associated brands) through their
offerings of thought-leadership, custom
products and unique partnerships.
15 Multipurpose
Spaces
Where Next? 6
18 On-Demand
Gone are the days of endless errands with the
rising popularity and accessibility of on-
demand delivery of products and experiences.
Consumers are receiving their food and
everyday items at the doorstep, in turn giving
services like Postmates and Amazon Prime
exclusive access to their home.
17 Purpose
Consumers seek content and experiences with a purpose or focus on inclusion and activism. And
today’s consumers expect companies to do their part. Taking a stand on key issues has become an
effective way for companies to get involved socially and earn audience approval (Elevent).
Consumers spot inauthenticity, so it’s not just about standing for something, but making it a part of
the brand DNA.
16 Intersectionality
With Wonder Woman, Get Out and Black Panther dominating the box office in the last year, diversity
is no longer the exception, it’s the expectation. Consumers expect to see themselves in the media
they consume and the brands they use.
Where Next? 7
19 The Outdoors
Younger consumers are driving a resurgence
in outdoor activities with the rise of national
park attendance and popularity of outdoor
festivals (music, food, thought-leadership,
etc.) Brands like Outdoor Voices are taking
advantage, developing their brand voice
around getting outside and #DoingThings,
and launching programs to shake up the
indoor shopping experience by creating
outdoor AR trail shops in parks around
the country.
20 Betting
The legalization of US sports betting is already
changing how how fans, players, teams and
leagues will approach their respective
businesses. Projected to generate billions in
new revenues, betting will usher in a new
generation of interactivity with sports. Fans will
demand even more access to data and stats
and there’s no doubt engagement
opportunities will be more carefully crafted, yet
more abundant than ever before.
They’re moving away from one-dimensional,
single-passion channels and moments,
instead looking to participate in and shape
experiences that allow them to check a few
boxes. They want to reinvent their childhoods,
engaging with activities and brands that offer
a sense of nostalgia with a new twist. They
seek more control, whether it’s creating their
own storyline or customizing the way they
consume content. These trends, which are
constantly evolving, offer brands ample
opportunities to create experiences and
engage consumers in new ways.
So what are consumers
and fans searching for?
Octagon is the Sports and Entertainment arm of
the Interpublic Group of Companies. We’re a
passionate team of 650 savvy veterans and bold
upstarts, relentlessly committed to helping move
fans, brands and talent forward.
CONTACT
Lou Kovacs
EVP, CMO North America
lou.kovacs@octagon.com

Where Next

  • 1.
    WHERE NEXT?A n ex p l o r a t i o n o f t h e f u t u re o f f a n s a n d c o n s u m e r s a n d w h y i t m a t t e r s f o r b r a n d s .
  • 2.
    It’s no secretthat today’s consumer landscape is changing fast. As the popularity of traditional print, broadcast and outdated social mediums become less efficient in reaching consumers, this audience is heading to new areas to engage with their passions through content and experiences. Octagon helps answer where fans are going next and how brands can reach them there. Where Next? 2 01 Adult Play From board games to immersive playgrounds, adults are diving back into their childhoods. According to a study conducted by Technavio, the global board game market will continue to grow into the early 2020s, largely due to the target audience changing from children to adults. Instead of Chutes and Ladders, they’re playing Settlers of Catan at their monthly game night. Adults are reimagining childhood playgrounds and the popularity helped the Museum of Ice Cream launch “The Pint Shop” and an exclusive deal with Target, as well as inspired the creation of The Pizza Museum, due to open this October in Manhattan. Instagram and Snapchat are reinventing commerce, turning influencers into POS and keeping consumers in-app with native payment features. With the ability to purchase a product within clicks of an Instagram scroll, this seamless customer experience is changing the way products are discovered and purchased. For thousands of years, we’ve been gathering socially around music. With the addition of social features, it’s no surprise that apps like Spotify and Apple Music could become their own social networks. According to Nielsen, Americans spend, on average, 32 hours per week listening to music. That’s twice as long as they’re spending on social media (Social Media Today). 02 Social Ecommerce 03 The New Social 04 Closed Conversations Social is no longer just about sharing what you’re up to with the world. Closed conversation apps like Slack, Discord, Twitch and even Instagram DMs are giving users the opportunity to engage in private, meaningful conversations, selecting exactly who they want to connect with. Twitch recently launched a feature that allows users to create “Rooms” for closed discussions and VIP streams. With this behavioral shift, brands need to find new ways to be invited into those closed conversations.
  • 3.
    Where Next? 3 05Blockchain Security and transparency—two qualities consumers expect from big brands and two features Blockchain guarantees as it continually positions itself as more than just a technology. Blockchain, a tamper-free digital ledger used for recording financial transactions and virtually anything of value, has the power to further enable consumers to be creators, acting as a platform for creators of intellectual property to receive value for their work. 06 Megabrands From Amazon to Disney, a new age of megabrands has dawned. Consumers have limited the number of places they have to go to get everything they need. While Amazon was responsible for 44% of all U.S. e- commerce sales in 2017 (One Click Retail), the company has seamlessly entered into sports streaming and grocery delivery. Additionally, consolidation, distribution controls and content arms races are keeping the TMT mergers and acquisitions industry busy, with billions in play with recent megamergers involving FOX, Disney, AT&T and Time Warner. As the battle intensifies for consumers’ dollars and attention, expect more business if you are a banker and higher costs if you are a consumer. A deluge of compelling content like audiobooks, podcasts and music are freeing consumers’ hands while they cook, commute and work. According to a Nielsen Q1 2018 research study, 69% of podcast listeners agreed that podcast ads made them aware of new products or services, giving brands ample opportunity to reach their target even as their eyes are elsewhere while multitasking. While the technology does not allow for traditional advertising, Amazon’s voice assistant, Alexa, has been integrated with Sonos speakers, Garmin navigation and BMW vehicles, and brands have the opportunity to use content to continue the conversation with their consumers through custom Alexa Skills. 07 Screenless Multitasking
  • 4.
    Where Next? 4 Withthe rise of streaming, niche sports (think: speed climbing) and diaspora sports (think: rugby or cricket) no longer need a broadcast deal to gain fans; they’re gaining them online. Access to these sports and athletes are becoming a cost-effective way for brands to engage with specific target communities. 09 New Sports & Games 08 America’s New Game The NBA is making a social impact, generating its own buzz by tapping into consumers’ cultural interests across fashion, gaming, music and technology. The league’s strategic involvement in social media platforms has empowered players to become their own brands, creating distinct personalities that fans love engaging with. As the NBA dives into the mental health conversation, the opportunities for future topics in the space are seemingly unlimited. 10 Sports Streaming 2018 marks the year Media Rights overtook all other revenue drivers across the sports ecosystem. The shift in revenue drivers is accompanied by another sizeable shift: the streaming sports fan becoming commonplace. As traditional sports head to streaming sites, leagues, teams and athletes are embracing the evolving reality of the multiscreen, digital-first sports fan. While traditional linear broadcasters try to balance the lionshare of audience reach with the next generation of OTT consumers, new platform distributors are bidding on sports rights, resulting in evergrowing rights fees for premium properties. 11 Active Streaming Live streams are turning audience members into active participants. Platforms like Twitch allow consumers to interact with live content and give brands an opportunity to enter conversations as they’re happening to truly connect with their consumers. Most recently, ESPN’s Darren Rovell reported the Alliance of American Football will release a new in-game feature, enabling fans to watch a game in-app while betting on the same screen. They’re also working with MGM to put wearables on players to better assess odds.
  • 5.
    Where Next? 5 Subscriptionmodels are invigorating new life (and audiences) into traditional business models, further enabling the consumption of experiential passions. In March, the Oakland A’s unveiled The Treehouse, an area within their stadium that carries its own subscription model with access to games without a true ticket. A younger customer base is heading to the movies with MoviePass, while Cinemark has seen early success with Movie Club, its own subscription service and loyalty program. With 55% of millennials spending more on events than ever before (Eventbrite), the new category of experiential subscriptions will continue to build loyalty as consumers look for a good deal. With more and more streaming options, consumers are becoming loyal to content, not platforms. Whether they’re dropping HBO during the Game of Thrones hiatus or picking up Netflix to binge the second season of Ozark, consumer loyalty is tied to content, as not one distribution channel will be able to cater to every consumer’s needs. While seasonal partnerships can be risky, cultural juggernaut shows have proven to extend the conversation and reach beyond weekly episodes or a singular release. 12 Seasonal Subscriptions 13 Experiential Subscriptions 14 Immersive Fiction The popularity of experiences like Escape the Room and Sleep No More prove that consumers want to join the narratives, places and experiences where they are a character, not just a participant. The in-progress Star Wars-inspired resort, coming to Walt Disney World, will give guests an opportunity to become active citizens of the galaxy as they embark on an immersive voyage during their stay. The line between work, life and play continues to blur and the rise of WeWork and other multipurpose spaces (e.g. restaurants and hotel lobbies) are opening the door for experiential programming. Female-focused spaces like the Bumble Hive and The Wing not only function as co-working spaces to inspire future women leaders, but brick and mortar locations to strengthen their brands (and associated brands) through their offerings of thought-leadership, custom products and unique partnerships. 15 Multipurpose Spaces
  • 6.
    Where Next? 6 18On-Demand Gone are the days of endless errands with the rising popularity and accessibility of on- demand delivery of products and experiences. Consumers are receiving their food and everyday items at the doorstep, in turn giving services like Postmates and Amazon Prime exclusive access to their home. 17 Purpose Consumers seek content and experiences with a purpose or focus on inclusion and activism. And today’s consumers expect companies to do their part. Taking a stand on key issues has become an effective way for companies to get involved socially and earn audience approval (Elevent). Consumers spot inauthenticity, so it’s not just about standing for something, but making it a part of the brand DNA. 16 Intersectionality With Wonder Woman, Get Out and Black Panther dominating the box office in the last year, diversity is no longer the exception, it’s the expectation. Consumers expect to see themselves in the media they consume and the brands they use.
  • 7.
    Where Next? 7 19The Outdoors Younger consumers are driving a resurgence in outdoor activities with the rise of national park attendance and popularity of outdoor festivals (music, food, thought-leadership, etc.) Brands like Outdoor Voices are taking advantage, developing their brand voice around getting outside and #DoingThings, and launching programs to shake up the indoor shopping experience by creating outdoor AR trail shops in parks around the country. 20 Betting The legalization of US sports betting is already changing how how fans, players, teams and leagues will approach their respective businesses. Projected to generate billions in new revenues, betting will usher in a new generation of interactivity with sports. Fans will demand even more access to data and stats and there’s no doubt engagement opportunities will be more carefully crafted, yet more abundant than ever before. They’re moving away from one-dimensional, single-passion channels and moments, instead looking to participate in and shape experiences that allow them to check a few boxes. They want to reinvent their childhoods, engaging with activities and brands that offer a sense of nostalgia with a new twist. They seek more control, whether it’s creating their own storyline or customizing the way they consume content. These trends, which are constantly evolving, offer brands ample opportunities to create experiences and engage consumers in new ways. So what are consumers and fans searching for?
  • 8.
    Octagon is theSports and Entertainment arm of the Interpublic Group of Companies. We’re a passionate team of 650 savvy veterans and bold upstarts, relentlessly committed to helping move fans, brands and talent forward. CONTACT Lou Kovacs EVP, CMO North America lou.kovacs@octagon.com