A fresh, no gadget take on the 2015 International CES, this report covers the top trends marketers and brands need to know as they enter 2015. Based on the evolution of the CES show over the last several years, the report also documents the rising in notoriety and popularity of CES within the marketing and advertising industry, now rivaling events like the Cannes Lions International Festival of Creativity and SXSW Interactive.
After 48 years in existence, the event shows no signs of slowing down. 2015 marked the largest CES in history, with over 170,000 industry professionals in attendance and more than 2.2 million net square feet of exhibit space occupied by exhibitors. Today, the show sits comfortably at, as the Consumer Electronics Association (CEA) has dubbed it, “the center of convergence among content, services and products.”
Consumer Electronics Show (CES) 2015 marketing trends for brands and marketers
1. No Gadgets: A CES 2015 Report for Brands and Marketers 1
No gadgets:
A CES 2015 Report
–
For brands and marketers
2. No Gadgets: A CES 2015 Report for Brands and Marketers 2
Table of
contents
Overiew:
2015 International CES.................................3
Really? No gadgets?.....................................4
Key trends for
brands and marketers..................................6
#1 The future of people based marketing.......................8
#2 Modern Marketing:
Emerging technologies and capabilities..................12
#3 New business models................................................17
#4 Regulation tightens, intelectual property loosens...21
#5 The consumerization of content creation.................25
Let’s do something
extraordinary..................................................28
3. No Gadgets: A CES 2015 Report for Brands and Marketers 3
Overview
–
With a multi-year recalibration from a
consumer electronics focus to a broader
digital technology story behind it, the
2015 International CES made it clear
that the event has hit a new stride and
level of maturity.
After making bets on new audiences
and exhibitors for the show (including
marketers, start- ups and content
producers), a record- breaking
year makes it clear those bets
have paid off in a way that is all
too uncommon in Las Vegas.
4. No Gadgets: A CES 2015 Report for Brands and Marketers 4
We know, we
know. But there’s
a good reason.
It’s the opposite of what you’d expect to hear about the 2015
International CES: a report with no run-down of the hottest
gadgetry being promised to revolutionize your life this year.
But with the show’s increasing focus on a broader array
of content – including digital’s effect on consumers, policy
and technology services – there are some major
developments marketers should be thinking about
beyond the gadgets. Further, we (and likely you, the
reader), are well aware that the hottest products have been well
documented across the web. In case you’d still like a recap, you
can catch these linked posts from Mashable, engadget and us.
Instead, we’ve focused this year’s report on a number of
actionable takeaways that we are leaving CES with and taking
directly back to our clients to factor into forward planning. If
you’re still itching for some mention of gadgets, don’t worry.
We have mentioned gadgets, generally in an effort to illustrate
a broader ecosystem and movement that exists in consumer
behavior and the industry at large.
Enjoy the report and do let us know what you think! Now, let’s
get to work. Before we know it, CES will be back again – it’s
scheduled for January 6-9, 2016.
Really?
No gadgets?
Ben Grossman
VP, Strategy Director
ben_grossman@jackmorton.com
Office: +1.617.585.7017
Mobile: +1.617.752.1171
5. No Gadgets: A CES 2015 Report for Brands and Marketers 5
Highlights from the
2015 international CES
–
2015 marked the largest CES in history,
with over 170,000 industry professionals in
attendance and more than 2.2 million net
square feet of exhibit space occupied by
exhibitors. Today, the show sits at, as the
Consumer Electronics Association (CEA) has
dubbed it, “the center of convergence among
content, services and products.”
The event’s new positioning is reflected by the
fact that exhibitors and conference tracks have
shifted in new directions. This year boasted
a 70% increase in the number of start-up
companies exhibiting at the show. CES also
launched a new sector of the show campus
called C Space, which is dedicated to exploring
how content, creativity, technology, brand
marketing, influencers and the consumer come
together.
The result for brands is an opportunity unlike
any other to showcase how they fit into the
digital ecosystem that increasingly dominates
consumers’ lives. The result for brands’ marketers
is a conference that, according to AdAge, is
rising in notoriety and popularity within the
industry to rival events like the Cannes Lions
International Festival of Creativity and South By
Southwest Interactive.
CES launched a
new sector of the
show campus called
C Space, which is
dedicated to exploring
how content,
creativity, technology,
brand marketing,
influencers and the
consumer come
together.
6. No Gadgets: A CES 2015 Report for Brands and Marketers 6
Key trends for brands
and marketers
7. No Gadgets: A CES 2015 Report for Brands and Marketers 7
Several key
trends emerged
for brands and
marketers to
consider in 2015,
each of which is
covered in more
detail in this
report:
In 2015, many brands turned their
attention away from hunting for
emerging gadgets, to instead examine
emerging technologies that can drive
their businesses forward.
The American Association of National
Advertisers (ANA) partnered with CES
to host a Digital Disruption conference
at the show’s newly minted C Space
(the official CES destination for creative
communicators, brand professionals and
digital advertisers).
Marketing executives from brands
including Subway Restaurants,
MillerCoors, MasterCard and Mondelez
International presented their approaches
to innovation.
The Interpublic Group of Companies
(IPG), Jack Morton’s parent company,
sponsored a private suite where media
companies gave private briefings to
lead agency-side marketers. Innovators
like Google, Facebook, Amazon and
Yahoo presented their research, points
of view and agendas for the future of
how brands will use digital to reach
consumers.
Key
trends
–
For brands and marketers
The future of People-Based Marketing
Modern Marketing:
Emerging Technology & Capabilities
New Business Models
& Value Propositions
Regulation Tightens,
Intellectual Property Loosens
The Consumerization of Content Creation
8. No Gadgets: A CES 2015 Report for Brands and Marketers 8
1The future of
people-based
marketing. Privacy
vs. personalization,
a cookie-free future
and beyond.
9. No Gadgets: A CES 2015 Report for Brands and Marketers 9
After six
weeks, just
53% of people
corresponded to
a single cookie.
In a private briefing of top marketing
executives at CES, Carolyn Everson,
the VP of Global Marketing Solutions
at Facebook, heralded which she has
called her team’s biggest achievement
over the last 12 months: “People-Based
Marketing.”
Broadly, this term refers to a movement
towards a “cookie-free” world, driven
by the realization that, in a cross-device
landscape, cookies are a poorer
identifier of individuals than ever.
Facebook’s Atlas Insights team
conducted a study in late 2014 and
found that, for roughly half of the
population measured (500 million
cookies), the one-to- one relationship
between cookie and person was broken
after only a few weeks’ time, distorting
measures of reach and frequency
significantly.
But that cookie inconsistency also points
towards a major gap in advertisers’
understanding of which users they’re
targeting and their ability to target them
with personalized messaging.
The prospect of
a cookie-free
world
– Facebook Atlas Study
March 2014
10. No Gadgets: A CES 2015 Report for Brands and Marketers 10
If achieved, true personalization in digital
marketing stands to yield significant benefits to
brands in 2015. Yahoo’s recent research on the
impact of personalization was also revealed
at this year’s CES. While its research exposed
a general hesitancy to accept an increasingly
personalized web when consumers were asked
directly, it also found that consumers responded
extremely well to those very personalized
messages.
This tension between personalization attitudes
and actions points towards the importance
of use of explicit and implicit feedback from
users in order to personalize messages. Users
want to feel in control, but also to benefit
from information publishers have. Facebook’s
new Atlas Ad Server offering will provide a
significant amount of explicit information to
advertisers, allowing them to target unique
users based on their Facebook identity, rather
than cookies. Implicit feedback will continue to
be an ongoing focus of marketers. Legendary,
an American film production company, shared
during its CES presentation that it often leaves
25% of its marketing budgets unallocated in
order to respond directly to the feedback it
receives implicitly from consumers.
While ad technology companies and publishers
are sure to continue establishing a footing in
the new people-based marketing world, brands
that move decisively will begin to see significant
benefits in 2015. Both Facebook and Google
made direct promises to advertisers at CES
that their organizations wanted to be held
responsible for ultimate business value, not soft
media metrics like impressions and clicks.
The tension between
personalization and
privacy
–
11. No Gadgets: A CES 2015 Report for Brands and Marketers 11
78
%
of consumers
expressed a
desire for some
kind of content
personalization,
with 62%
interested in
viewing a mix of
algorithmic and
currated content.
12. No Gadgets: A CES 2015 Report for Brands and Marketers 12
2
Modern
marketing
techniques.
Start-ups
collaboration
and a new
go-to-market
strategy for
brands.
13. No Gadgets: A CES 2015 Report for Brands and Marketers 13
Beyond the buzz about ad technology, CES
also acted as a showcase for new, disruptive
marketing techniques and methodologies that
are catapulting some brands forward.
MillerCoors, coming from an industry that
generally relies heavily on broadcast TV to
market its beverages, presented its recent
innovation in how it goes to market to a youth
audience with Miller Lite. The organization
sustains the MillerCoors Incubator, a technology
incubator that maintains relationships with start-
ups that can aid the brand it overcoming some
of its key business challenges.
Currently, MillerCoors is focusing on branded
content and lower- funnel marketing by testing
campaigns with 26 different technology
companies, ranging from iBeacon to content
marketing.
Side by side with its incubator, MillerCoors also
launched a Tap The Future program, dedicated
to taking young entrepreneurs’ businesses to
the next level. The competition includes $300K
in prize money, business seminars, live pitch
opportunities, and access to mentors and
business moguls like Daymond John from ABC’s
“Shark Tank.”
Rocking
the beer
marketing boat
–
MillerCoors is
focusing on
branded content
and lower-funnel
marketing by
testing campaigns
with 26 different
technology
companies.
14. No Gadgets: A CES 2015 Report for Brands and Marketers 14
The way we’re thinking
about technology is one
foot in today and one foot
in tomorrow. We’re taking
some risks.
Stevie Benjamin
Senior Director of Digital & Media
Miller Coors
15. No Gadgets: A CES 2015 Report for Brands and Marketers 15
Some of the top products
at CES had already been
seen long before the
January event.
But beer isn’t the
only industry with
a shifting go-to-
market strategy.
Ironically, consumer
electronics, once the
central product-launch
focus of CES, have also
experienced a changing
landscape in terms of
going-to-market.
Modern
methods used
to go-to-market Singtrix, a voice-defying karaoke system
launched at CES by VOXX International
Corporation, had been seen my millions of
TV watchers on the show “Shark Tank.”
AirDog, a GoPro camera wielding auto-
follow drone created by a team of 20
engineers, had already been backed (and
thusly pre-ordered) by over 1,300 investors
on Kickstarter and seen by many more
through the product’s publicity engine
during its crowdfunding campaign prior
to CES.
Ring, a smartphone-controlled video
doorbell, had already flopped on“Shark
Tank” in its pre-investment days (then known
as DoorBot), butturned around to sell over
10,000 units after its airdate and generate
$1 million in venture capital investment, all
before it showed on the stage of The Last
Gadget Standing at CES.
16. No Gadgets: A CES 2015 Report for Brands and Marketers 16
Brands in and outside the
technology sector are changing
the way they launch products
and get noticed. Despite the claim
that 20,000 products are launched
at CES (made by CEA, its hosting
body), it is clear that brands are taking
alternate routes to reach their audiences
– and that the definition of what a true
‘launch’ at CES means may need to
be re-examined.
The
lesson?
–
17. No Gadgets: A CES 2015 Report for Brands and Marketers 17
3
New
business
models.
Traditional
industries
disrupted
by Dr. Phil,
Sling TV and
Amazon.
18. No Gadgets: A CES 2015 Report for Brands and Marketers 18
Several industries
showed signs of active
reinvention, from the
medical industry to
traditional television.
Aside from marketing evolutions,
CES also showcased technologies
that are disrupting the way
businesses are structured. Several
industries showed signs of active
reinvention, from the medical industry
to traditional television. Meanwhile,
Amazon reinforced its end-of-2014
introduction of the Echo and growing
ecosystem based on Prime subscribers
(including Prime Photos, Prime Music,
Prime Instant Video and Kindle Owners’
Lending Library).
Doctor on demand
Dr. Phil and his son spoke on the CEA’s show floor stage about the company they
co-founded: Doctor On Demand. The company offers insurance-free appointments
with doctors, psychologists and other healthcare providers on-demand for a flat fee.
Patients can have Video Visits with these providers on their smartphone or computers
for services ranging from acute sniffles to lactation consulting. While the service
currently is not meant to replace primary care physicians, it can greatly shorten the
path to service.
The doctor is in
(the mix at CES)
19. No Gadgets: A CES 2015 Report for Brands and Marketers 19
Amazon has
morphed into a much
broader ecosystem
of content libraries
and content delivery,
device invention and
device proliferation,
and point of sale and
publisher.
Amazon Echo
While Amazon didn’t launch any new products
at CES, it was still one of the most exciting
presences at the show. In a private briefing
to top marketers, Amazon’s executives gave
demonstrations with the brand’s new Echo
product (launched at the end of 2014) and
talked about the direction of its business.
Though initially a bookseller turned eCommerce
company, today Amazon has morphed into a
much broader ecosystem of content libraries and
content delivery, device invention and device
proliferation, and point of sale and publisher.
With the introduction of Prime subscriptions,
proprietary devices and original content,
Amazon has also developed a dedicated
media team that is nascent, but ready to bloom.
Marketing opportunities across eCommerce,
video and its proprietary devices will continue
to proliferate.
The most threatening dynamic for marketers
looking to establish brand preference is that,
to some degree, the ecosystem Amazon is
developing is self-funding, so it will not be
beholden to advertiser dollars. It can make
bold choices, like providing commercial-free
audio and video streaming services, because it
can monetize them through Prime subscriptions
and incremental eCommerce sales gained from
keeping users in Amazon’s walled garden.
Did you
hear an Echo?
20. No Gadgets: A CES 2015 Report for Brands and Marketers 20
Positioned as a
way to “take back
TV,” the service will
cost $20 a month
with no contract or
commitment.
Sling TV
In the midst of a time of television turbulence,
filled with Netflix, Hulu, Amazon Prime and
iTunes, Slingbox broke through at CES with the
promise of a simple, affordable solution: Sling
TV. Positioned as a way to “take back TV,” the
service will cost $20 a month with no contract or
commitment.
While the service offering received plenty of
buzz at CES, skeptics argue that the 11-channel
streaming package doesn’t provide nearly
enough channels or coverage of programming
that is of interest to its young millennial target
audience.
While these companies showed up as especially
prominent and innovative at CES, they are
emblematic of a business landscape ripe for
revolution. Radical moves by progressively-
minded companies like Uber, Warby Parker and
Bonobos, all founded on new technology and
consumer behavior, will continue to force new
business models upon traditional industries.
Simplifying
live television
streaming
21. No Gadgets: A CES 2015 Report for Brands and Marketers 21
4
Regulation
tightens, IP
loosens. The
FTC and FCC
shut down
threats, while
corporations
open up.
22. No Gadgets: A CES 2015 Report for Brands and Marketers 22
Over the past few years, CES has
become an opportunity for government
officials to collaborate with and take
the stage next to technology leaders.
This year, the FCC Chairman and
Federal Trade Commission (FTC)
Chairwoman both made splashy
appearances at the show, giving a
preview of tightened regulations and
policies that are coming down the pike.
Meanwhile, corporate giants showed a
willingness to loosen the reigns on some
of their intellectual property for the
betterment of the industry.
Regulation tightens,
IP loosens
–
23. No Gadgets: A CES 2015 Report for Brands and Marketers 23
In 2015, the
number of smart
home devices will
reach nearly 25
million.
2015 will also
be the year we
start hearing
about smart-home
hacking.
Edith Ramirez, chair of the FTC,
warned about the perils of, and
presumable pending commission
action regarding, the Internet of Things
(IoT) devices that are proliferating
rapidly. She warned of the devices’
ability to capture a “deeply personal
and startlingly complete picture” of
consumers that they may not want
public or vulnerable. Compounding
the threat of the deluge of captured
personal data, Ramirez also cited start-
ups’ general lack of sophistication in
and attention to privacy practices that
consumers take for granted from more
established companies.
Tom Wheeler, chair of the FCC,
received significant press attention
for his interview with CEA chairman
Gary Shapiro, during which he tipped
attendees off to FCC action on net
neutrality. He disclosed a timeline and
general premise of the commission’s
forthcoming final rules to enforce net
neutrality under Title II. This action
would constitute a coupe for many
consumer electronics manufacturers and
innovators whose interests are often
at odds with traditional, established
telecommunications companies.
Threat of loT and
promise of net
neutrality
–
Edith Ramirez
Chairwoman
Federal Trade Commission
24. No Gadgets: A CES 2015 Report for Brands and Marketers 24
Two of the biggest non-gadgetry
announcements at CES came from two
of the largest brands there: Samsung
and Toyota. Each organization
demonstrated a willingness to play in
the sandbox amongst the start-ups that
have tended to steal the show in the last
few years.
Samsung opened the show with its
Keynote that, among other things,
focused on the company’s commitment
to making its IoT components completely
open source. This new approach to
building a more compatible series
of IoT products is fueled by open
source standards that came as part of
Samsung’s acquisition of SmartThings.
Toyota made a landmark
announcement that it would invite
royalty- free use of over 5,600 fuel
cell related patents, including critical
technologies developed for the Toyota
Mirai. This openness to sharing its
intellectual property stands as a noted
change in tone for auto giants like
Toyota, many of which will likely feel
increasing pressure from similar moves
from challengers like Tesla, which
released its patents in June 2014.
Widely celebrated by analysts, this
move is reflective of what is believed to
be the key to emerging energy sources:
broad-based collaboration, shared
technologies and established standards.
Large corporations
begin to open up
–
90%
of Samsung
products, from
smartphones to
refrigerators, will
be able to connect
to the Web by
2017.
Boo-Keun Yoon
Co-CEO
Samsung Electronics
25. No Gadgets: A CES 2015 Report for Brands and Marketers 25
5Consumer
-ized content
creation. A new
generation of
user-produced,
premium
content.
26. No Gadgets: A CES 2015 Report for Brands and Marketers 26
The final key trend we noted at CES didn’t
actually occur at the event itself. Instead, it’s a
prediction in the way we see the most popular
technologies moving. Several of the year’s most
notable product presences: AirDog (GoPro
filming drone), Selfie Sticks (not at all innovative,
but extremely popular) and 3D Printers (with
more viable outputs than ever before).
All three of these categories of products are
centered on the increasing consumerization of
quality content creation – a trend that will live on
far beyond the 2015 CES.
Consumer
creation like
never before
–
New Makerbot
filaments containing
limestone, iron, maple
wood and bronze.
27. No Gadgets: A CES 2015 Report for Brands and Marketers 27
3D Printed dinosaur
cookies rocked the
CES show floor.
The concept?
Amazing. The taste?
So-so.
Call to brands:
build on emerging
technology
The way content is published and distributed
has changed radically over the past decades,
starting with simple weblogs and standing
today in an environment where 18,000 days of
video are uploaded to YouTube every day.
What’s coming next is increased accessibility to
professionalized content creation capabilities.
Amateur music artists will be including stunning
sky shots in their music videos. Lone explorers
are photographing breathtaking landscapes...
with themselves in the picture. 3D printers’ new
lower cost and increased material options give
average people the ability to custom print their
own products.
That means that the pace of content will
continue to accelerate – and consumer
expectations from brands may continue to
rise. Brands that can leverage new
content production technologies
themselves and give consumers an
elevated platform to create may be
able to achieve an advantage over
competitors. Moreover, being first to
market with unique ways to leverage these
technologies offers a breakthrough potential
for brands.
28. No Gadgets: A CES 2015 Report for Brands and Marketers 28
Let’s do
something
extraordinary.
We’re living in a time when human imagination coupled with
technology makes anything possible. Where amazing has
become the new normal.
Brands must be sure that the experiences they deliver live up
to the messages they send. Those who achieve it, we call
Experience Brands.
If you’re interested in chatting more regarding our insights on
CES or are ready to do something extraordinary, let’s connect.
Ben Grossman
VP, Strategy Director
ben_grossman@jackmorton.com
Office: +1.617.585.7017
Mobile: +1.617.752.1171