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No Gadgets: A CES 2015 Report for Brands and Marketers				 1	
No gadgets:
A CES 2015 Report
–
For brands and marketers
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
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.
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
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.
No Gadgets: A CES 2015 Report for Brands and Marketers				 6	
Key trends for brands
and marketers
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
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.
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
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
–
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.
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.
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.
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
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.
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?
–
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.
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)
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?
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
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.
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
–
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
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
No Gadgets: A CES 2015 Report for Brands and Marketers				 25	
5Consumer
-ized content
creation. A new
generation of
user-produced,
premium
content.
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.
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.
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
No Gadgets: A CES 2015 Report for Brands and Marketers				 29	
Talk to us
—
Contact Melinda Lindland
SVP, New Business and Group Account Director
melinda_lindland@jackmorton.com
Read our blog at
blog.jackmorton.com
Follow us on twitter
@jackmorton
Visit us online at
jackmorton.com
About Jack Morton
We’re a global brand experience
agency. We generate breakthrough
ideas, connecting brands and
people through experiences that
transform business. Our portfolio of
award-winning work spans 75 years
across event marketing, sponsorship
marketing, promotion and activation,
experience strategy, employee
engagement, digital, social, and
mobile. Ranked at the top of our field,
Jack Morton is part of the Interpublic
Group of Companies, Inc. (NYSE: IPG).
More information is available at:
www.jackmorton.com or @jackmorton
© Jack Morton Worldwide 2014

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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
  • 29. No Gadgets: A CES 2015 Report for Brands and Marketers 29 Talk to us — Contact Melinda Lindland SVP, New Business and Group Account Director melinda_lindland@jackmorton.com Read our blog at blog.jackmorton.com Follow us on twitter @jackmorton Visit us online at jackmorton.com About Jack Morton We’re a global brand experience agency. We generate breakthrough ideas, connecting brands and people through experiences that transform business. Our portfolio of award-winning work spans 75 years across event marketing, sponsorship marketing, promotion and activation, experience strategy, employee engagement, digital, social, and mobile. Ranked at the top of our field, Jack Morton is part of the Interpublic Group of Companies, Inc. (NYSE: IPG). More information is available at: www.jackmorton.com or @jackmorton © Jack Morton Worldwide 2014