In The News: SXSW Hope vs Reality

I was recently asked by the Drum to write an op-ed about my hope vs reality heading into SXSW Interactive 2017.

As a digitally progressive marketer, focusing both on current solutions, while keeping a close watch on the future, I am at a crossroads when it comes to identifying the value I receive from SXSW.

Each year, I have high hopes for the event. I look forward to real discussions about key topics driving digital. I want to be inspired by compelling brand experiences that showcase the latest technology, which may be a precursor to new ways to connect, empower, entertain, or all of the above.

My hopes remain high, but I am afraid of the reality, given my experience as a SXSW attendee the past few years. Instead of deep meaningful discussions, the content, especially outside of keynotes, is either too simplified or so generic it lacks any lasting impact. The other issue is that panels are selected for their title, versus their substance, and more often than not, the content is more opinion-based, rather than truth or research based.

The reality has been painful at times. I used to think about SXSW as the ideal event to gauge and project consumer behavior-centric tech trends. We saw consumer empowerment and amplification with the launch of Twitter in 2007.

We saw the rise of location based engagement with Foursquare in 2009. We saw the rise of live streaming service Meerkat in 2015, and a slew of other disruptive tech over the years.

But marketing is quickly shifting from disruptive tech to acceleration through intelligent systems. It’s less about the latest app fad, and more about how quickly the combination of data, intelligent systems and smart environments are going to fundamentally shift how we interact.

You can read the rest of the article on the Drum here.

Follow Tom Edwards @BlackFin360

In The News: Ad Age Data Design & Alexa

I was recently interviewed by Ad Age discussing the efforts of my data design team and our work with Amazon and the Alexa Skills Kit.

screenshot-2017-02-11-10-46-11

When I first joined the Epsilon agency team I wanted to bridge traditional brand planning, strategy and data science to uniquely assess all of our data sources and build recommendations that leverage the right data to assist planning, strategy development and data-driven insights to support strategy and creative.

Now the agency data design group is comprised of 3 core components: 1) Mapping the data landscape 2) Storytelling through data 3) Consulting & training. My goal with this team is align intelligence from the data, regardless of source, that will inform how we communicate and message with consumers as technology and behaviors evolve and most importantly drive performance.

There are three primary areas of focus for the team:

1) Proprietary data sources & methodologies e.g. Leveraging Epsilon’s structured data

2) Unstructured data sources & methodologies e.g. Finding previously invisible insights by applying machine learning & artificial intelligence to unstructured category data

3) New data sources & methodologies e.g. Uncover new types of data sets that we call affective datasets and how it will impact and reshape how we connect across the consumer journey

screenshot-2016-12-02-14-47-49

Unstructured and New Data sources combined with Epsilon’s proprietary data began to accelerate our processing and analysis capabilities to uncover consumer truths with unstructured data to further fuel our agency’s strategic storytelling and data driven creative leading to an evolution of brand planning.

For the past 12 months my data design team has focused on aligning emerging artificial intelligence systems and algorithms with our structured data assets to combine all of the following elements.

screenshot-2016-12-02-14-52-09

Data Design is the bridge between planning and bleeding edge tools like cognitive computing, artificial intelligence and natural language processing. Ad Age highlighted our approach with Amazon and how we leverage machine learning on amazon.com down to the product SKU level to further inform communication and engagement strategy as well as our team being one of the early adopters of the Alexa Skills Kit (ASK).

screenshot-2017-02-11-10-46-27

Here is an example of data design concepts in action.

screenshot-2017-02-11-10-46-47

Follow Tom Edwards @BlackFin360

7 Ways AI will Enhance Marketing

For the past 12 months, my Epsilon team and I have focused on multiple facets of artificial intelligence (AI) with data as the primary fuel that powers key insights. We have leveraged machine learning, natural language processing, predictive APIs, and neural networks to uncover consumer truths that previously would have taken weeks or months to uncover.Having the opportunity to work with comprehensive, boundless proprietary data assets is incredibly exciting. In addition to fueling strategy work, it also drives emotional connections with consumers, bonding them to brands in meaningful ways. It is the future of marketing.Now past the experimentation phase, I can say confidently that AI will be a key driver of technology growth over the next decade and will significantly impact consumer marketing. Initial predictions show the market for AI-driven products and services will jump from $36 billion in 2020 to $127 billion by 2025*. (*Source: BofA Merrill Lynch Global Research Estimates — 2017 the year ahead: artificial Intelligence; The rise of the machines.)Most AI we work with today is categorized as Artificial Narrow Intelligence (ANI). This means that the AI is extremely adept at executing specific tasks.

Right now, there are seven subsets of artificial intelligence, outlined below. Brand marketers can better uncover insights, connect with consumers, and redefine customer experiences using this innovative technology.

Machine learning (ML)

ML uses human coded computer algorithms based on mathematical models. Probability models then make assumptions and/or predictions about similar data sets.

Currently, machine learning can be leveraged as a service to accelerate sentiment analysis and domain-specific insights. It also serves as a foundational element for identifying consumer behavior based on occasions, perceptions, and attributes to construct themes and trends from unstructured data which represents the thoughts, behaviors, and preferences of consumers taken directly from their online activities.

In 2017 and beyond, I expect more third-party providers will offer ML as a cloud service brands and agencies can leverage to transform products and services into smart objects, able to predict needs and preferences.

Machine learning solutions have allowed my team to align our proprietary structured data assets with unstructured data to combine the best of both worlds. This began to accelerate our processing and analysis capabilities to uncover consumer truths within unstructured data to further fuel our agency’s strategic storytelling.

Cognitive computing

Cognitive computing builds on machine learning using large data sets.

The goal is to create automated IT systems that can solve problems without human intervention. Marketing centric cognitive computing solutions can consist of a single, all-encompassing solution, or be comprised of multiple services that build and scale applications over time.

From a marketing application perspective, cognitive computing-based solutions range from customer experience enhancing chatbots to closed loop systems for tracking media performance.

Bank of America recently launched the Erica bot using AI, cognitive messaging, and predictive analytics to further influence consumers’ ability to create better money habits.

Cognitive computing will be key to unlocking the potential of conversational experiences. As ecosystems continue to rise, many of the 30,000 chatbots on Facebook Messenger are powered by AI services.

Facebook’s own M virtual assistant housed within Messenger will soon come out of beta testing and will incorporate cognitive suggestions based on content of a conversation users are having. The goal is to make Messenger-based interactions more convenient, enabling users to access services without leaving the conversational thread within Messenger.

Speech recognition and natural language processing (NLP)

NLP refers to intelligent systems able to understand written and spoken language just like humans, along with reasoning and context, eventually producing speech and writing. NLP plays an essential role in the creation of conversational experiences.

Voice-based experiences, such as Alexa’s voice services (AVS), will become pervasive over the next few years. It is projected that by 2020, 30 percent of web browsing sessions will happen without a screen.* (*Source: Gartner analysts at Symposium/ITxpo 2016.)

The core of the AVS experience is a combination of automated speech recognition, natural language processing, and a cloud-based AI that comprise a voice-based user experience.

As with most artificial intelligence entities, learning new skills is how personalized and contextual experiences will be created. With Alexa, it is possible to “teach” new conversational elements and interactions through developing skills.

Here is an example from Domino’s pizza that allows consumers to order pizza directly through Alexa voice services.

Alexa skill development is one of the quickest ways for brands to connect with the rapidly growing audience that calls upon Alexa to empower their daily lives.

Fitbit is another brand leveraging Alexa-based skills to extend brand engagement. Traditionally Fitbit users depend on an app to visualize their data. With the Fitbit Alexa skill users can get a quick update on the stats that matter the most without the need of a screen.

Deep learning

Deep learning builds on machine learning using neural networks. Neural networks are statistical models directly inspired by, and partially modeled on, biological neural networks such as the human brain. The use of neural networks is what differentiates deep learning from cognitive computing.

Deep learning is currently redefining Google’s approach to search, and search engine optimization (SEO) will never be the same. Previously, Google search results were based on algorithms defined by a strict set of rules and SEO was based on regression models that looked at past behavior to adjust a given strategy.

With the introduction of RankBrain, Google’s machine learning technology, in 2016, search algorithms are now enhanced with artificial intelligence. Google is now processing roughly 15 percent of daily queries by mixing the core algorithms based on each search type.

The system is adept at analyzing words and phrases that make up a search query. It also decides what additional words and phrases carry similar meaning.

Expect the percentage of search queries handled by AI to significantly increase. Marketers will need to rethink site architecture, content, and the signals being sent via backlinks as the systems continue to learn on a query-by-query basis.

Predictive application programming interfaces (APIs)

A predictive API uses AI to provide access to predictive models, or expose access to an ability to learn and create new models.

Fortune 500 company USAA is analyzing thousands of factors to match broad patterns of customer behavior through its intelligent virtual assistant Nina.

As we shift from consumers using technology to technology enhancing consumers, predictive APIs will play a key role in providing recommendations, enhancing customer service, and providing real-time analytics without in-house data scientists. This is key to unlocking new forms of value exchanges with consumers in a hyperconnected world.

Image and object recognition

Image recognition finds patterns in visually represented data, pictures, and objects. Facebook and Google are two organizations focused on AI research and solutions in this area.

As image recognition is extended into video and live broadcasts, it will redefine contextual relevance, categorization, and automation of content distribution.

Combined with the advancement of cameras, image recognition and machine learning are transforming the way we process data, including much more than just attitudes and behaviors.

Brand marketers can now leverage images, facial expressions, body gestures, and data collected from IOT-enabled devices to understand the triggers behind behavior and build experiences that anticipate their customer’s needs. This requires brand marketers to transform their data strategy to expand beyond first- and third-party data to also incorporate unstructured datasets that capture affect and unconscious data inputs.

Snap’s pending patent on object recognition is potentially game changing. A recent patent application shows its desire to built object recognition into snaps that can enhance recommended and sponsored filters most likely powered by an AI-based system. This showcases how any object can be aligned with creating immediate context with a consumer and brand.

Olay launched an AI-powered Skin Advisor that ingested user generated photos and provided recommendations for suitable products.

Dynamic experience generation

AI-based systems not only have the ability to parse through large data sets and offer predictive solutions, but also can drive the creation of dynamic experiences. AI will become a powerful tool for creating vs. analysis.

Many startups are leveraing AI APIs to create intelligent solutions. The Grid (https://thegrid.io) is leveraging AI to automate web design with Molly. Molly analyzes design decisions and creates new web experiences.

Eventually, AI will be a key driver of creating augmented reality experiences. Dynamic experience generation through AI will recreate physics, recognizing gestures and movements that can generate new consumer experiences.

Below, Mark Zuckerberg discusses the future of AR/VR at Facebook’s F8 conference.

The various subsets of artificial intelligence will continue to be interconnected, redefining how we approach connecting with consumers. AI makes it possible to know the consumer better than ever before. If approached correctly, with the right mix of AI subsets leveraged, companies will see their business grow.

This is a repost of my recent iMedia cover story.

Follow Tom Edwards @BlackFin360

In The News: iMedia 7 Ways AI Enhances Marketing Cover Story

This morning my new article 7 ways artificial intelligence will enhance marketing was the cover story for iMedia Connection.

The article reviews seven subsets of artificial intelligence from machine learning, cognitive computing, natural language processing, deep learning, predictive API’s, object recognition and dynamic content generation and how brand marketers can better uncover insights, connect with consumers, and redefine customer experiences using this innovative technology.

screenshot-2017-01-17-16-00-30

Follow Tom Edwards @BlackFin360

In The News: Entrepreneur.com & AI

I recently sat down with Jeffrey Hayzlett of C-suite TV for the first episode of season 7 for Executive Perspectives live.

He recently wrote a piece for Entrepreneur.com outlining 5 business trends that will take off in 2017. Jeffrey referenced our conversation regarding automation of conversational experiences through artificial intelligence.

screenshot-2017-01-11-19-29-54

The infusion of voice-based technology into consumer products, and the ways in which brands are shifting from social media to social messaging strategies were the subject I addressed with Epsilon Chief Digital Officer Tom Edwards, during a recent interview. Edwards told me how “disruption is the new normal” and how chatbots are the next thing chief marketing officers will have to deal with as technologies keep evolving.

For more insight from the discussion here is a link to the full interview.

c-suite-blackfin360

Follow Tom Edwards @BlackFin360

In The News: Marketing Dive & 2017 Trends

I was recently asked by Marketing Dive about how digital marketing will evolve in 2017.

screenshot-2017-01-11-19-25-37

One of the key territories I discussed for this piece was the role artificial intelligence, machine learning and cognitive experiences will play in the near future.

From leveraging machine learning to accelerate sentiment analysis and domain-specific insights to cognitive computing solutions that automate experiences without human intervention to the rise of voice-based user experiences that will continue to expand in 2017 to deep learning that will fundamentally change how brands approach SEO to predictive API’s that will expose access to predictive models to further create seamless experiences for consumers, cognitive and intelligent systems will play a key role in how we approach marketing in 2017,” said Tom Edwards, Chief Digital Officer at the agency within Epsilon.

When asked about social media marketing in 2017:

Marketers will need to shift their strategy from one of personification of the brand to a seamless experience that is about simplifying and predicting needs while also empowering consumers to create their own stories,” said Epsilon’s Edwards.

Follow Tom Edwards @BlackFin360

 

C-Suite TV Discussion – Disruption, UX, The Future

This week I had the pleasure of joining the C-Suite TV team at their San Francisco event and was interviewed by Jeffrey Hayzlett. It was a fun discussion as he asked me about the shift from social media to social messaging, strategies to make the shift, voice based experiences, disruption, galactic cannibalism, trends and the future of connecting with consumers.

photo-nov-08-3-07-23-pm

Below is a recap of my key talking points for each question.

(C-Suite TV – JH) As we’re on the verge of a transformational moment in marketing with the shift from social media to social messaging, how are marketers making this shift?

(Tom Edwards – TE) Over the past 5-10 years we as marketers have focused primarily on the open web + social media. Earlier this year social messaging passed social media in terms of monthly active users. Consumers are ready for conversational experiences. Part of the reason for the appeal is that it is seen as safe, comfortable and intimate.

I spent most of this year researching, writing and educating our brand partners about what this shift can mean for their business. We conducted proprietary research on what consumers want from conversational experiences that led to an ebook on the topic.

Social Shift Toward Messaging

As we dug into consumer expectations around conversational experiences, our research found that they want experiences that are convenient and support local experiences, there is openness to pay within social messaging and an expectation that it will connect physical and digital elements such as in store coupons and discounts, there is also a willingness to interact with intelligent systems.  Research also shows that 60% of millennials would prefer talking to a chatbot vs. talking to a human when it comes to resolving questions about online shopping.

From a marketing perspective there has been a significant amount of experimentation trying to create the ideal experience. With Apple, Facebook, LINE, Kik, Skype and more providing tools and services that will allow others through 3d party SDKs & API’s to create an ecosystem. Their hope is to become the central portal in order to empower consumers and drive commerce. Facebook doesn’t own the hardware or the operating system, so they are invested in keeping people in the messenger experience.

Some experiences are trying to further personify the brand, others are about creating utility or a sense of intimacy with the brand. The goal is to create a real-time experience that is centralized in one conversational thread.

The key will be creating experiences that are not disruptive but are actually attentive to the current and future needs of the consumer. The ideal experiences will be built around the premise of simplification + prediction. It’s not about a deeper personal connection like a friend, but to be able to anticipate, predict and enhance a consumers experience.

This is where we see the idea of CONNECTION + COGNITION coming together.

(JH) What processes and strategies do you need in place to make this shift effective?

(TE) I recommend an approach that is based on five core factors of Simplification, Data Design, Prediction, Ambient Design & Physical to Digital.

photo-nov-08-4-09-30-pm

1 – (SIMPLIFICATION) The key is to reduce complexity in consumers lives and create experiences that are ownable by the brand’s domain. Mine customer data for most commonly asked questions and expand from there with use cases focused on enhancing and simplifying experiences.

2 – (DATA DESIGN) Have a strategy not just to capture data but how to use it. Define the role of unstructured data in refining the experience. Consider what new data points are being integrated to inform future prediction. How are you making the data actionable? On my team we now have a data design team that sits between traditional brand planning + digital strategy. This is the intersection of Big Data + Design Thinking. They own the tools, assets and data sources and understand how to craft a data driven narrative.

3 – (PREDICTION) Anticipate consumer needs is key for the future of conversational experiences. Messenger experiences are not designed to be like Google search, at least not yet. Google is working towards the ideal intersection between search & retrieval vs. predictive. But again a combination of data, predictive analytics built on working data is the entry point towards truly predictive experiences. (cognitive will accelerate this)

4 – (AMBIENT DESIGN) The future of computing is tied to ambient experiences, or how your environment interacts with you. It is critical to approach designing conversational and voice based UX differently.

5 – (PHYSICAL TO DIGITAL) One of the other elements is the rise of conversational commerce. There is a concerted effort to closely align physical & digital shopping experiences as a means to enhance the customer experience. Our research shows there is an expectation from consumers to have local experiences connect to digital through conversational experiences.

(JH) Let’s talk about some newer technologies, how does voice based technology play into this shift to a conversational user experience?

(TE) I am a strong believer in the fact that voice based experiences and artificial intelligence systems will become pervasive in our everyday lives. The core of the experience is a combination of automated speech recognition, natural language processing and a cloud based AI that comprise a voice based user experience.

I am very intrigued by the possibility of the ability to create context through voice services such as Amazon Alexa Voice Services & the recently launched Google Home. Voice based experiences will play a key role during this time as our interactions with connected systems and the rise of micro services as a primary mechanism to navigate a hyper connected world will become the new normal.

Photo Jul 19, 9 07 41 AM (1)

I strongly believe that we will begin to see a convergence over the next few years where elements that enable connection such as social messaging and voice based conversational user experiences combined with cognitive computing (AI) and immersive experiences such as holographic computing will become interconnected and will redefine how we approach connecting with consumers.

We will begin to see services such as Alexa Voice Services quickly proliferate throughout 3rd party devices from in home IOT systems to connected vehicles and “skills” will become a key component for how we navigate beyond screens. Estimates already show over 28 billion connected devices by 2019.

(JH) We hear you say that “disruption is the new normal” what do you mean by that?

(TE) Digital disruption has been at the center of major consumer shifts over the past 10 years. Disruption is now the new normal. The Premise is change is constant and experimentation is critical and how you integrate trends into your existing business is key.

The acceleration of technology has led to the rapid empowerment of the consumer. What organizations have to consider is that with each iteration of technology and consumer empowerment new types of interactions will lead to the need to rethink the business models of today.

Japan Emotional Robot

This has a significant impact on the C-suite as the pressure on CMO’s to be creative thinkers, intelligent around data, domains and disciplines as well as mitigation of risk, pressure to innovate, find and retain talent and try to be as agile as possible. Combined with the pace of new interaction models there is a lack of strategy to deal with the shifts in a meaningful way as the focus is on short term stability.

This is why it’s important to build a plan with a foundational approach to data and understand what domains the brand can own and where in the new interaction types there are opportunities to redefine business models. This is why I have chosen Connection, Cognition and Immersion as the pillars of how brands can map to the new interaction types of the near future.

(JH) I heard you say we’re on the verge of galactic cannibalism can you explain what this means for marketers and how can marketers stay ahead of the game?

(TE) I have spoken a lot recently about how disruption is the new normal. I recently heard someone compare the last five years as a “supernova” of disruption in terms of the intensity and velocity of change.

With the rise of artificial intelligence, conversational & ambient experiences, connected systems and mixed reality on the horizon we are moving well beyond a supernova and are now on the verge of galactic cannibalism.

gc2

Galactic cannibalism is when one galaxy collides with another and there is a subsequent absorption of parts of one into the other. From a consumer marketing standpoint how we consume and interact via digital channels is about to be absorbed and redefined through new advancements in connection, cognition & immersion.

The key point to surviving and thriving is to have a comprehensive data strategy as data assets will serve as the fuel of this shift. Regardless of which galaxies collide a thorough understanding of data, content, experiences and outcomes is a marketing foundation for the future.

Also, it is important to understand how data will evolve. Currently the focus is on 1st part & 3rd party data. But in the emerging world think of the data created by connected systems as well as new forms of real time sentiment data, such as your eyes in a VR experience or facial recognition in a retail setting. These will require a comprehensive data design effort to craft content, experiences and drive outcomes as a marketing foundation for the future.

Ultimately we will have to acknowledge that the relationship between consumers and technology will fundamentally change from consumers operating technology to technology operating for consumers through data.

(JH) How do you apply the trends of today to the business models of the future?

(TE) The first step is to be aware of what is happening. Analysts such as Gartner and Forrester are evaluating and publishing their rankings of where technology is going. One of my favorites is the Gartner Hype Cycle.

One of my responsibilities with Epsilon is I lead the innovation practice for the agency business. We have designed an approach that is consumer centric, data driven, iterative and allows our brand partners to scale emerging technologies and integrate trends into tangible solutions that drive business outcomes. The practice is comprised of four distinct elements that span research, workshops, experimentation and transformation.

Innovation v3 - white slide

Regarding research & trends, we leverage Epsilon’s proprietary data and analytics, first and third party research, emerging companies and established partner networks to research, curate and educate on the latest trends and how it can apply to our clients business.

Our approach is as follows:

Our team identifies a new tech/emerging tech…

1. Track Product/Technology Announcement

2. Measure Velocity of coverage & discussion

3. Conduct Initial analysis & POV outlining potential value/impact

4. Explore outcome impacts & role of tech in consumer journey

5. Map vertical specific use cases

6. Educate internal teams & external clients

7. Identify early vendor partners and alpha/beta opportunities

8. Conduct Project based experiments

9. Capture & package project based success

10. Build business value case for horizon consideration

Once you have identified your trends its helpful to begin to filter across key macro trend territories, in this case I am exploring trends that reach across

Connection, Cognition & Immersion

(JH) What’s really resonating with consumers right now? What should marketers be paying attention too?

(TE) Anonymous personalization through dynamic content, targeted video content, Personalized, connecting the consumer experience across digital to physical & 1:1 messaging that is authentic, provides value and is contextually relevant is key.

Human attention is now a scarce commodity. Attention is a resource – and we only have so much to give. The key to experience design is built around data, content & channels or experiences.

Screenshot 2016-08-29 09.48.19

I like to start with data, it can be 1st party or secondary data sources, but I look for attitudinal, behavioral in addition to standard demographic. Transactional data can also be a key element and consistency of message is key.

(JH) What is the future of connecting with consumers?

(TE) I strongly believe that we will begin to see a convergence over the next few years where elements that enable connection such as social messaging and voice based conversational user experiences combined with cognitive computing (AI) and immersive experiences such as holographic computing will become interconnected and will redefine how we approach connecting with consumers.

Screenshot 2016-08-29 09.48.40

The key will be to create data designed experiences that empower consumers.

Here is a link to the full video interview kicking off season 7.

c-suite-blackfin360

Follow Tom Edwards @BlackFin360

In The News: Luxury Daily & Seasonal Retail

I was recently asked by the team at Luxury Daily to elaborate on a proprietary Epsilon research initiative tied to how likely consumers are to shop in-stores vs. online for the 2016 holiday season.

Findings show that 87% of shoppers are “very likely” or “somewhat likely” to purchase at brick and mortar stores this year, with 55% of shoppers “very likely” or “somewhat likely” to look at a product online and then go to a store to buy.

Conversely, 76% of shoppers are “very likely” or “somewhat likely” to purchase online this holiday season, with 54% of shoppers “very likely” or “somewhat likely” to look in store for a product and go online to find the best deal. These findings further signify the importance of personalizing communications both online and offline and creating a seamless customer journey across marketing channels.

screenshot-2016-09-15-11-03-15

With this as a baseline, I was asked by Luxury Daily to outline the key findings and impact for luxury retailers.

screenshot-2016-09-15-11-06-43

Luxury Daily also asked how luxury retailers and retailers in general should respond.

screenshot-2016-09-15-11-07-08

Follow Tom Edwards @BlackFin360

Disruption is the New Normal

I recently had the pleasure to speak at Success North Dallas discussing the topic of DISRUPTION is The New Normal. This hour long discussion looked at the past, present and future of emerging technology and how to apply the trends of today to the business models of the future.

Screenshot 2016-08-29 09.38.48

The past looked at key milestones from the launch of the iPhone to the rise of visual storytelling.

Screenshot 2016-08-29 09.48.07

The present looks at how aligning events + context into moments matters, how co-creation is the new normal and the rise of conversational experiences.

Screenshot 2016-08-29 09.48.19

The future looks at the role cognitive computing, immersive experiences and cars as the next mobile platform will play as we look to connect the present to the future.

Screenshot 2016-08-29 09.48.40

It was a highly interactive and energetic crowd!

Success North Dallas

Follow Tom Edwards @BlackFin360

In The News: How Digital Is Shaping Shopping Decisions

I recently provided an article to The Financial Express based on proprietary research outlining how digital is shaping shopping decisions. Here is a repost of the article.

Digital shopping tools are gaining popularity amongst consumers and proving to be the key drivers in their path to purchase. The Q1 2016 consumer survey conducted by Epsilon in North America, Shoppers Voice, analyzed consumer shopping habits and sentiment. The findings uncovered how consumers are navigating digital and social media on their path to purchase.

Screenshot 2016-08-23 22.42.46

Among the interesting takeaways from this study is the influence that digital and social media have on a shopping trip as well as how marketers can use these tools to better the shopping process for customers through contextually relevant experiences.

The study revealed that 75% of consumers depend on Facebook for shopping information, whereas less than 30% of consumers depend on Instagram for information related to product purchases. Around 46% of consumers reported they do not use Pinterest for shopping information.

These findings show that the current dependency on social media — as part of the shopping process — is to gain information in the form of product recommendations and customer reviews from trustworthy sources. This is currently leveraged more through content-based platforms than visual-based platforms. These platforms inspire consumers and act as aspirational channels that engage users through ideas related to home decorations, style trends, travel destinations and more.

shutterstock_281363729

For marketers looking to understand where these visual-based platforms fit in their digital marketing strategy, it’s important to consider where they fall on a consumer’s path to purchase. These platforms are currently used by consumers earlier in the shopping process, before they are ready to make the purchase.

Consumers using social media for product reviews and customer feedback do so later in their decision-making process, turning to their trustworthy sources to make the actual purchase decision. These insights are mainly gathered from social networking websites.

Marketers should keep an eye on various social platforms and develop the ability to determine if a particular digital strategy makes sense for their business. In addition to social media, e-commerce websites are taking prominence in decision-making for consumers. This is particularly true when it comes to consumers seeking information based on product reviews and recommendations.

For instance, in the US, 77% of consumers rely on Amazon.com for information on purchase and purchase-related behavior even though they might not shop from the website. This information helps consumers understand the quality of products. Another report, 2015 Digital Shopping Tool Impact Study, found that while penetration for mobile payments lies at only 7%, the impact on purchase decisions for consumers using mobile as a tool rests at more than 31%.

Screenshot 2016-08-23 22.47.18

While there is low consumer adoption for mobile payments, the shopping tool has a strong influence on shopping behavior due to its ability to enable fast, convenient and secure options for customers to pay with their smartphones. A mobile strategy will help marketers increase loyalty amongst their best customers and influence impulse purchases.

As with any marketing plan or approach, once marketers understand how consumers are leveraging social, e-commerce and mobile in their path to purchase, a digital activation plan needs to be created.

It is essential to ensure that all marketing tools are working together. With so many ways to interact with shoppers, it’s easy for marketing messages to become fragmented and disconnected resulting in sub-par customer experiences. Making sure all marketing tools work together — online and offline — will create a seamless and enjoyable shopping experience that will lead to the highest likelihood of conversion and, ideally, long-term relationships.

Follow Tom Edwards @BlackFin360

 

In The News: Mashable & Ad Exchanger Yahoo Acquisition

I was recently asked by Mashable & Ad Exchanger about the recent Yahoo/Verizon acquisition. Mashable was interested in the role that Tumblr could play to enhance the content creation entities within AOL. Ad Exchanger was interested in which elements of Yahoo’s technology would be additive to Verizon & AOL.

Here is an excerpt from the Mashable article.

Screenshot 2016-08-29 09.24.15
Excerpts from the Ad Exchanger article:

Screenshot 2016-08-29 09.16.59

Screenshot 2016-08-29 09.16.38

Follow Tom Edwards @BlackFin360

The Medium Is the Message

This week Adweek published our quantitative research infographic about consumer behavioral shifts tied to social messaging and the types of experiences they are interested in engaging with in both the print and online edition.

Look for this week’s issue of Adweek. Our research is on page 13.

Screenshot 2016-07-12 09.49.17

Screenshot 2016-07-12 09.49.30

With apps like Facebook Messenger, WhatsApp and Snapchat vying with conventional SMS to be the preferred texting method, the line between social media and texting is more blurred than ever. And brands have a real chance to capitalize on this, according to a newly released study by Dallas-based marketing group Epsilon.

“We are on the verge of a transformational moment, as consumer behavior is dictating a shift towards intimacy of sharing content and experiences versus public sharing,” said Epsilon chief digital officer of agency business Tom Edwards. “Messaging apps now boast more active users than social networks, and this shift from social media to social messaging will redefine how we, as marketers, will approach connecting with consumers.”

Medium-is-the-Message

Follow Tom Edwards @BlackFin360

Tom Edwards BlackFin360

 

MMS Upfront @ Internet Week 2016

This week I had the opportunity to speak at the Modern Marketing Summit Upfront @ Internet Week 2016 discussing the topic of the transformation of storytelling. Below is a recap of my key talking points.

Screenshot 2016-05-17 10.03.52

The discussion covered 4 territories tied to how storytelling is being transformed.

1) How do you define storytelling from your company’s perspective? What is a story? 

I’d define Epsilon’s approach to storytelling as finding a compelling difference through data that leads to a consumer truth then completing a narrative around that truth. The truth/data will often reveal the correct medium by telling who, what, where and when of the audience. We then use traditional tools of persuasion formatted by channel to reach the audience.

For us a story can be any type of format that creates a connection with a consumer. This can come through brand created, co-created or user created content. We further delineate storytelling and storymaking by working with our brand partners to make them the catalyst for the stories consumers are making for themselves.

2) How does the context of where and when the story is being told affect the way you choose to tell it? 

Context is key as this informs whether we should use storytelling vs. storymaking moments. We then align moments with personalized elements of the story based on our data findings and use cross device identity to create personalized story delivery at scale.

We partner with a major sports speciality retailer to generate and optimize 1 million versions of the brand story that aligns with key contextual moments.

This is approach is based on transactional and online click stream data and that in turn continues to drive actionable insights across all of our initiatives to inform and optimize our creative process in near real time.

The key is consistency of message across various formats and having the ideal understanding of cross-device behaviors to deliver a message at the right time.

MMS Upfront

3) How do you coach your clients to think from the consumers perspective? What do you hope a good story will achieve for your client? 

We show them what consumers expect, how they perceive their brand and category and align strategy where there are opportunities to create new points of connection. This includes understanding when to leverage branded content vs. co-created vs. integrated vs. user created content to tell the story for the brand.

We focus a lot on consumer behaviors. This comes in the form of machine learning and artificial intelligence that looks at specific domains and mobile ethnography studies. We also leverage our proprietary assets that highlight key behavioral, transactional and affinity based data that allows us to demonstrate how we find unique ways to tell or make a story.

We not only show them what consumers expect, how they perceive their brand and category we focus on the potential outcomes tied to our storytelling and story making efforts.

Our goal is to start or change a conversation, create advocacy and ultimately drive purchase and business outcomes.

4) How important is data in informing your decisions about your storytelling methods? 

Data is the fuel of our creative process. It enhances the creative, it does not replace or stifle creativity.

We realigned our planning with data science to inform creative territories & strategic themes we then use this to map the story as well as deliver audiences all with an eye towards outcomes and building models that show the impact of our storytelling efforts

One of the other great assets is our ability to map to individuals across devices. This makes it easier to deliver highly personalized and dynamic creative. Mapping high level themes through to relevant micro-moments. This allows us to connect with consumers regardless of where they are in a heavily fragmented media landscape.

Data also informs consumer readiness when it comes to emerging storytelling mediums. Whether it’s the shift towards conversational user experiences to immersive experiences such as Virtual, Augmented and mixed reality. data is a foundational element to our approach to creativity and innovation.

2016 Header

Follow Tom Edwards @BlackFin360

iMedia Agency Summit 2016

I recently had the privilege to serve on the iMedia Agency Summit advisory board as well as speak during one of the master track sessions.

iMedia Advisory Board

I moderated the panel master track discussion focused on “the new world of content marketing“. The discussion focused on what constitutes content. This included perspective from a content purist stating that only deliberate, publisher centric content is truly content and not formats like TV spots. The other perspective was that everything is content. The audience was split 50/50 which was surprising.

Tom Edwards iMedia 2016 4

Next we discussed approaches to creating consumer centric content that connects. Approaches included the use of micro-segments to align contextual content and I discussed the use of data + creative as well as the content continuum of branded, co-created, integrated and user created content.

Finally we discussed current and future form factors to consider such as conversational and immersive user experiences.

Follow Tom Edwards @BlackFin360

2016 Header

The Social Shift Towards Messaging eBook

Today at F8,  Facebook made the formal announcement to beta launch 3rd Party Chat bot support for Facebook Messenger. I have written a few articles on this topic and have consolidated the thinking into an eBook.

Social media—and now social messaging—is a path to understanding and being in a relationship with your customers. Social messaging is poised to become the most direct, direct marketing channel, creating immediate 1:1 conversations with customers.

As consumer behavior shifts toward more intimate forms of communication and away from public sharing, we’re seeing social messaging apps become more popular than networking apps. Social messaging apps are the new lifestyle platforms, where consumers can do everything from booking a vacation or ordering food to checking traffic giving rise to a new form of commerce. 

 

This white paper provides a deep-dive into:

1) Shifting consumer behaviors towards social messaging,

2) The potential impact of these changes driven by chatbots and conversational commerce 

3) Proposed best practices and future considerations.

Download the eBook today!

Social Shift Toward Messaging

Follow Tom Edwards @Blackfin360

2016 Header

In The News: Chatbots & E-Commerce

I was recently asked by ClickZ for commentary about what role chatbots can play for e-commerce.

Screenshot 2016-04-11 16.45.32

Are Chatbots the future or fad?

 I am a believer that chatbots are a key element in the creation of conversational user experiences and will become core to the messaging experience. Chatbots will introduce new interaction models with new rules of engagement and capabilities that will flow seamlessly based on user interactions vs. installing and swapping between multiple apps.

A messenger chatbot ecosystem could rival and ultimately replace traditional app marketplaces and conversational chatbots, be it artificial intelligence or a bot augmented by humans will become the new standard for content delivery, experiences and transactions.

We view messaging apps as the new brand portal, conversational user experiences are the new interface and chatbots are the new apps. What makes this approach unique is it’s permission based, contextually relevant, immediate and native to mobile.

How can brands use chatbots to enhance their ecommerce?

Conversational commerce will be a key value proposition from messaging platforms. Our Epsilon research shows that messaging significantly impacts purchasing behaviors. Notably, consumers take photos, screenshots, and conduct video chats in real time to seek out assistance during their shopping process.

Brands can build bots with topical response decision trees that align with creating seamless paths to products and services. An example is how Sephora recently partnered with Kik to create a bot driven experience that led a customer through a personalized journey that ends with conversion directly within the conversation.

Screenshot 2016-04-11 16.52.24

With Facebook’s upcoming launch of 3rd party chatbot support, they are empowering chatbot developers with tools to create structured messages that include images, descriptions, call-to-action and URL’s to connect conversation to commerce.

The key for brands to understand is that for now Chatbots are domain specific vs. general intelligence. This means that there is an opportunity to capture data upfront to establish a frictionless and personalized experience for consumers.

Follow Tom Edwards @BlackFin360

Thriving Through Digital Disruption

I had the pleasure of speaking during today’s Brand Activation Summit in NYC. I joined an esteemed panel that was comprised of a CEO, CMO and I (CDO) to discuss thriving in the age of digital disruption.

Screenshot 2016-04-07 10.18.59

My topics ranged from the role of the Chief Digital Officer to vertical specific discussions tied to the future of digital. Over the course of an hour I discussed many topics that I have recently written or spoken publicly on including:

It was a great discussion and a highly engaged audience.

BAS16 Tom Edwards

Follow Tom Edwards @BlackFin360

2016 Header

Who’s Influencing the 2016 Election

I was recently asked by Momentology to provide commentary about who digitally is influencing the 2016 election.

Screenshot 2016-03-21 14.52.11

Momentology: (Referring John Oliver’s recent Donald Trump Rant) Are SNL’s head writers and John Oliver arguably influencing the outcome of this election? Or are viewers consuming this content primarily as entertainment?

Tom: The content is designed to entertain and persuade opinion but what it really does is spark conversation socially. Here is where the real impact can be made. For those candidates that can poke fun at themselves, it is an opportunity to further connect with potential voters.

For the campaigns with savvy digital marketing strategies in place, leveraging the conversation created to integrate their messaging can be a sound strategy, if the content is contextual and resonates with the intended audience.

Screenshot 2016-03-21 12.56.57

Momentology: OR are they watching SNL and Last Week Tonight and then using second screens to make election-based queries inspired by the content they’ve seen?

Tom: The key for the campaigns would be to not only invest in traditional search and paid media strategies but to also be agile to topical and social conversation.  Something like the Trump SNL ad will generate a lot of attention that other RNC candidates could quickly execute an SEM and Twitter Search strategy to further drive their persuasive messaging. 

Momentology: What does this mean for voters? What does this mean for candidates?

Tom: For voters they have an opportunity to voice their opinions and show their support. The key for candidates is that every mention and interaction is another signal for the campaigns to target to reinforce their position and drive action from voters in key primaries and the general election. 

Screenshot 2016-03-21 12.57.17

Momentology:
And can you point to any examples of candidates tapping influencers in this campaign? If so, who/when?

Tom: Hilary clinton tapped Lena Dunham of HBO’s Girls to create content on Hilary’s Instagram account as well as sharing content on her own account.



Bernie Sanders partnered with rapper Michael Render to interview the candidate on key subjects of interest and it has garnered nearly 2 million views.

Donald Trump is an influencer in his own right with his large social followings. He has also racked up a number of key celebrity endorsements such as Hulk Hogan, Dennis Rodman, Tito Ortiz, Mike Tyson and Sarah Palin. One influencer who had a direct impact on a recent primary was Willie Robertson of Duck Dynasty Willie’s endorsement helped to fuel a hotly contested win in Louisiana.

Screenshot 2016-03-21 14.47.49

Follow Tom Edwards @BlackFin360

CNBC Commentary SXSW & Snapchat

I recently provided commentary to CNBC discussing the impact that Snapchat had on SXSW 2016 without the benefit of branded experiences on-site.

Snapchat has definitely hit mainstream in 2016 with audience demos expanding. This has been marked by traditional publications and political campaigns sharing content on the platform,” said Tom Edwards, marketing agency Epsilon’s chief digital officer of agency. “Snapchat inherently is also a great event platform. With SXSW music starting soon, you will see even more from Snapchat as they create Live Stories consisting of event-based user content and of course brand opportunities.

Screenshot 2016-05-11 12.25.18

Follow Tom Edwards @BlackFin360

VB: 5 Marketing Trends Surfacing at SXSW Interactive 2016

I was recently asked by Venture Beat to provide insight into 5 marketing trends that I saw surfacing while on the ground at SXSW Interactive this year.

Screenshot 2016-03-14 10.43.32

This is a repost of the article:

SXSW Interactive 2016 kicked off this week with thousands of marketers descending upon Austin, Texas for food, fun, and a glimpse at new and emerging technologies that will impact how brands connect with consumers. Even in its 23rd year, SXSW Interactive’s influence and role in innovation is not waning.

Several trends surfacing this year will greatly impact how brands and consumers interact. Here are 5 to keep an eye on:

1. Virtual reality is everywhere

Virtual reality (VR) has been a key part of the SXSW experience for the past few years, with the Game of Thrones VR experience and Samsung’s Gear VR both standing out in past years. This year, virtual reality is at the forefront.

Panels are on tap to discuss everything from Cinematic VR, virtual football, and VR storytelling to city planning using social VR. And the event features various branded installations such as the Samsung Gear VR Lounge and the McDonald’s Loft.

Tom Edwards McDonalds

The McDonald’s Loft is showcasing a V-Artist virtual reality experience that transports attendees into a Happy Meal Box and inspires creativity. This installation is a lot of fun and one to check out for a fully immersive virtual reality experience.

Samsung has also pushed to bring VR to conference goers wherever they are via its #VRonDemand campaign and provide portable VR experiences. Gear VR is a great example of making virtual reality accessible to the average consumer.

If you tweet at #VRonDemand and respond to their invite via DM, the Samsung Mobile US team will bring a Samsung Gear VR experience to your location.

Tom Edwards Samsung-tweet

Within an hour, I had the Gear VR headset on at the corner of Trinity and 3rd for a portable VR experience. Marketers must pay attention to Gear VR as it will quickly become one of the most accessible forms of VR for consumers.

2. Social media to social messaging

Twitter made its micro-messaging app debut at SXSW in 2007. In 2016, the focus of many panels is discussing the shift that’s happening with consumers moving from social media to social messaging. This includes the rise of the conversational user experience as well as the next multibillion-dollar opportunity: marketing in messaging.

marketing-in-messaging

Leading up to SXSW 2016, there has been a seismic shift in consumer behavior towards intimate sharing and the rise of narrowcast networks. Platforms such as Twitter are integrating features normally associated with the more private Snapchat platform. Facebook views Messenger as a primary commerce driver moving forward.

This shift is redefining how brand marketers approach connecting with consumers. It’s becoming less about the hallmarks of social media marketing, which included personification of the brand in a witty way and more about enabling conversation. Marketers need to find the key moments to passively enable a conversation through visual language or by creating compelling customer experiences via messaging channels.

With this macro shift in consumer behavior combined with the signals given by the platforms in response to where they are placing their bets for the near future, there could be a new platform unveiled at SXSW that meets the needs of today’s consumers who want a more intimate way to share and connect.

3. Artificial intelligence and emotive robotics

Over the past year, robotics and artificial intelligence have seized media and consumer interest. Now we’re hearing many robotic and AI topics being discussed at SXSW 2016 – think living with robots, the role of autonomous cars, and how emotive robotics can enhance our lives.

Jibo

Above: Jibo

One of the best robotic panels from SXSW 2015 came from MIT social roboticist Cynthia Breazeal. Breazeal talked about emotive computing, which is based on systems and devices that can recognize, interpret, process, and simulate elements of human behavior. She also introduced an emotive AI called Jibo. Jibo is back this year, and the discussion is focused on how it has evolved and how it can enhance our lives.

Jibo is one of the most advanced robots on display at SXSW this year, offering a two-way interactive and expressive experience that is helpful and thought provoking to the user, making it feel like a human-to-human interaction.

For digital marketers, emotive robotics opens up new possibilities for delivering highly contextual content and could serve as an access point into IoT-based behavioral data. The key to the concept of emotive robotics is its ability to take a consumer’s emotional response into consideration, making consumer interactions with these devices more positive and personal.

4. Dark social

No, this is not the name of a new Indy spy drama; it’s a real trend surfacing during the interactive conference. Dark social is the sharing activity that is somewhat invisible to traditional analytics. It’s becoming more important as the shift towards social messaging takes place.

dark-social

It’s the culmination of referrals and sharing of content that originates from instant messages, emails containing links, and, most recently, the rise of ephemeral social communication platforms such as Snapchat, WeChat, and WhatsApp.

A recent study by Radium One found that 59% of all online sharing is via dark social and 91% of Americans regularly share information via these methods. 72% of sharing is simply users copying and pasting long URLs and either emailing or texting the information.

What makes cracking the code with dark social even more important is the sharp rise in adoption of ephemeral social communication apps. The convergence of social and mobile is here, and the percentage of content shared will continue to rise at an exponential rate in 2016.

Marketers need to start thinking about dark social and its role as part of their customer experience.

5. Connected everything

From panels discussing connected hardware to events showcasing the car as a new marketplace and the countless wearables and IOT-based devices to be showcased on the conference floor, connectivity and streamlining a consumer’s ability to interact with technology is on full display.

One key experience is Sony’s Future Lab Program, which showcases the latest innovations from Sony as it launches the N wearable at SXSW.

Sony-N

This device acts like a wearable Amazon Echo, shaped like a neck collar so as to not hinder movement. It responds to pre-programmed audio commands and takes hands-free pictures.

Sony is looking to solicit live feedback and refine the prototype based on conference-goers’ user testing. This transparent approach to testing gives attendees a sense of ownership and demonstrates a great approach to testing innovation at SXSW.

The brand experiences that are on full display at SXSW are a strong indicator of what brand-to-consumer interactions will look like in the very near future. Marketers must leverage technology and digital innovation to create more convenient, more engaging, and more enticing customer experiences.

Follow Tom Edwards @BlackFin360

Customer Experience 2020

I had the pleasure of moderating a Brand Innovators Future of Consumer Experience panel discussion this morning. The panel was comprised of key execs from Southwest Airlines, Brinker International (Chili’s) and JCPenney.

The topic was Customer Experience 2020: Omnichannel Retailing and Loyalty.

image1

Our discussion centered around each panelists approach to connecting with today’s consumer and how they are striving to create a return on relationships.

We discussed how they see their customers behaviors changing and how they plan to remain relevant through 2020.

Next we discussed what trends are on their radar and where they are spending time and dollars experimenting and working towards value creation for their brand.

IMG_3419

Some of the key trends for the Southwest Airlines team was creating seamless connections with consumers and reducing FOMO or Fear of Missing out through their approach to integrating live streamed entertainment such as live NFL games.

Wade Allen, VP of Customer Engagement and Digital Innovation at Brinker talked about the role that the Internet of Things and Wearables combined with their approach to mapping data can enhance the customer experience.

Tracy Chavez, Director of Advertising & Strategy/National Media Director, JCPenney outlined how they are testing Beacons as a means of creating location specific contextual connections with their consumers.

We ended the discussion with each panelist giving their advice to the other brand marketers in the room about how they can incorporate aspects of their planning process into theirs in preparation for 2020.

Follow Tom Edwards @BlackFin360

2016 Header

 

 

VB: 5 Technologies You Should Watch For at CES 2016

I was recently asked by Venture Beat to provide insight into 5 potential technologies that I would be excited to see at CES 2016.

Screenshot 2015-12-14 09.26.36

The 2016 Consumer Electronics Show kicks off in just a few weeks, and we marketers will get a glimpse of new technologies that will impact how we talk to our audiences.

Here are 5 trend territories to keep an eye on at this year’s expo:

1. Emotive robotics

Emotive robotics is based on systems and devices that can recognize, interpret, process, and simulate elements of human behavior. Last year, single function robots were hot items from the show, but with advancements in deep learning capabilities, we’re on the cusp of emotive robotics entering the home in 2016.

An example of an emotive robot is Jibo, praised as the first “family robot.” Jibo and other emotive robots could aggregate Internet of Things (IOT) sensors and serve as the central nervous system of the home.

jibo

For digital marketers, emotive robotics opens up new possibilities for delivering highly contextual content and could serve as an access point into IoT-based behavioral data. The key to the concept of emotive robotics is its ability to take a consumer’s emotional response into consideration, making consumer interactions with these devices more positive and personal.

2. Gesture-based interfaces

Wearables of all types were crowd pleasers at the 2015 CES, but to date most wearables have primarily served as passive data collection devices. This year, the progression of gesture-based interfaces is one to watch.

At CES 2015, Logbar’s Gesture control ring drew large crowds. The simplicity of Ring and its ability to interface with an IoT-powered smart home is one example of a gesture-based interface.

logbar-ring

Gesture-based interfaces could provide a fun and engaging way for marketers to connect physical and digital worlds. Interfaces like Logbar’s Ring, could allow consumer electronics companies to create customizable experiences for their customers leveraging non-touch gesture-based motions.  For example, a consumer could interact with their TV, stereo, or coffee machine without ever having to touch a device.

I’m looking forward to new gesture control prototypes at CES 2016 and uncovering the marketing potential for brands.

3. Flexible displays

Flexible displays have always held a certain sci-fi allure. Having a digital display that can be bent, rolled, and shaped into many different form factors has a lot of marketing appeal.

We’re beginning to see flexible displays integrated into the Samsung Galaxy Round and LG’s G Flex smartphones and we’ve seen various standalone prototypes over the years.

Samsung-youm-flex-screens-8828

Thinking ahead, this type of display could revolutionize shopper marketing, as consumer brands could integrate flexible displays directly into clothing and other products, reducing consumer dependencies on mobile devices.

4. Virtual reality

On a recent earnings call, Facebook founder Mark Zuckerberg called Virtual Reality (VR) the next evolution of computing. We’ve seen experiential exploration of VR at past CES expos, and now we’re on the verge of VR hardware being readily available for early adopters.

Recently, there’s been acceleration around enabling 360 video — a form of VR — for the masses.  For example, you can now see 360 mobile video in your mobile Facebook newsfeed, and Google’s cardboard camera app supports the capture of 360-degree video and sound.

Recent campaigns such as the New York Times Google Cardboard experiment and GoPro’s deep dive into 360 video are testing out new and compelling experiences for consumers. However, truly immersive VR experiences require higher-end headsets, which create a sense of total immersion.

Stormtrooper

For example, companies can co-create content to embed their products in immersive experiences that align with their brand. With the Olympics coming in 2016, we can expect brands to leverage virtual reality to let consumers immerse themselves in the event.

I’ll be looking for new flavors of Facebook’s Oculus experience from other VR suppliers. I’ll also be looking for systems such as Sixense’s STEM System, which provides motion controls, haptic feedback, and additional spatial awareness in VR to create a full-body controlled experience.

5. Holographic computing

Holographic computing, sometimes called mixed reality, is a form of augmented reality (AR) that lets users spatially interact with digital overlays (holograms) that appear in the world around them.

A recent forecast from Citi analysts highlighted the future of the VR/AR industry, and their view is that AR technologies will likely disrupt major digital markets. Many organizations are exploring mixed reality solutions. One that has garnered a lot of attention is Microsoft, with its Hololens. Hololens produces interactive holograms that augment the existing physical world.

a67d3d33-e1e5-4cf7-bf3d-dbe1befc8d8c.0

The potential application for brand marketers is incredibly exciting, as AR represents a blank canvas against the physical world, giving brands an opportunity to engage with consumers in their everyday environments like at work or in the home. For example, a company could leverage AR in the home by sponsoring a grocery list, which appears on a user’s fridge and offers product recommendations when they are running out of a grocery item.

What to take away from the show floor

The five areas I’ve highlighted here represent the progression I’m hoping to see at CES. Will they all be represented? I’m excited to find out. What marketers should be looking for on the show floor are connected devices that have the potential to drastically shift consumer behavior and the way consumers and brands interact. Shifts in entertainment greatly impact marketers, and as a result data, content, and channels will all have a new role to play. Gaining insight into the dynamic shifts in how consumers connect will be key in 2016. CES should shed light on what may be possible in the years ahead.

If you happen to spot any of these items on the expo floor, tweet a pic and tag it with #CESevolved.

Follow Tom Edwards @BlackFin360

Tom Edwards Venture Beat

Follow Tom Edwards @BlackFin360

Reuters & WSJ Snapchat Commentary

Recently I was interviewed by Reuters and discussed a range of Snapchat topics from their ad business to industry perspective on how brand marketers are approaching the platform.

Photo Nov 24, 9 29 36 AM

Some commentary was published and picked up by other publications like the WSJ. Below is my full commentary.

REUTERS: Any idea how Snapchat’s ad business is growing? Going gangbusters? Incremental growth?

TOM: Signs are pointing towards a SnapChat IPO in the near future. In order to do this they need to have a solid monetization strategy in place.

Snapchat has 100 million daily active users, 700 million disappearing snaps being sent and more than 500 million stories viewed on a daily basis and recently claimed over 6 billion video views.

Snapchat is laser focused on engagement. They have shifted from being primarily a creation platform towards consumption driven by opt-in engagement.

The audience is definitely there. When it comes to advertising, there has been a lot of testing to ensure the user experience stays pure as well as aligning alpha programs with brands that are willing to pay a premium.

How this is transitioning from alpha ad types to scaleable offerings that show value beyond an impression is yet to be determined.

REUTERS: How have advertisers/brands who have advertised on Snapchat responded to the platform? Are they excited? Moderately hopeful? Or fleeing because they are unhappy?

By using the 70/20/10 media approach,  most of my clients have classified Snapchat in the 20/10 test & learn experimentation. For brands that are looking to cut through with 13-34 year olds and drive some type of contextual experience on the platform they are excited by the impressions, but beyond that there is not much data as Snapchat is contextual Opt-in without profile information.

Brand marketers are excited about the impact the platform can have on sponsorships, live events and geo-specific targeting… Products like Geofilters and Sponsored Lenses are potentially interesting to further connect on the local level. This applies to events or retail. Shopping malls, movie theaters, etc.

REUTERS: Are there any common concerns out there among brands about the platform that you’ve heard?

Lack of robust analytics and attribution are the most common.  You have insights into views, but the biggest complaint that I hear beyond that is that CTA’s are not really a part of the experience, for example you cannot add a URL or hashtag in a sponsored geofilter. It is simply about brand awareness vs activation.

What is interesting is Snapchat’s recent partnership with Liveramp that will allow data matching to validate ad exposure and eventually offline conversion measurement.

REUTERS: Where has Snapchat excelled at video ads? And where has it fallen short?

Snapchat’s approach to video is through the lens of curated context. They want the video experience to be immersive without pre-roll with a focus on vertical vs. horizontal content.

They want 100% viewable, Full screen. They have research that shows the daily minutes spent on screens and how vertical screens dominate usage behavior.

CORE POINTS OF DIFFERENCE:

1)    Always Full Screen
2)    Always User Choice
3)    Always optimized for Mobile
4)    Always plays with Sound

Snapchat video is ideal for awareness, but do not expect to have CTA’s such as URL’s or hashtags supported. This is strictly an awareness and engagement platform with limited analytics but massive reach with the key 13-24 audience set.

REUTERS: Does it offer good intel on viewers or good targeting?

Not on targeting as it is primarily contextual opt-in, but the one positive is unlike Facebook’s Autoplay approach, Snapchat requires a user action.

Snapchat is focused on providing additional insight into ad exposure through data partnerships.

REUTERS: What are the expectations by advertisers from Snapchat?

For now it is about reach and partnering with an emerging platform that has a large and highly coveted user base.

REUTERS: What expectations have Snapchat set about its ad business growth?

Finding the right ad type and monetization strategy are key for Snapchat as they gear up for an IPO.

REUTERS: And why on earth are brand like Toyota and HP even advertising on Snapchat – a bunch of teens without buying power?

More than 60% of US 13 to 34 year-old smartphone users are snapchatters. That number extends beyond teens into the early life stage millennials. The largest group on the platform is actually 18-24 year olds that do have buying power, especially for entry level products from brands like Toyota & HP.

Brands like Snapchat’s audience, approach to curated context & intimacy vs. broadcast newsfeed, Snapchat is focused on vertical content delivery that coincides with the core experience.

The Reuters commentary was also picked up by the Wall Street Journal’s CMO Today.

Photo Nov 24, 9 30 50 AM

Follow Tom Edwards @BlackFin360