IPG Trend Report 2014

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    ISSUE 02

    Ten Tips for 2014

    Data Doing Good

    Generation Z

    INSIDE:

    2014, Whats the Big Story ?

    2013, A Year in Review

    Notification Nation

    The New Anticipatory andThe Internet, Objectified

    The Year of Serendipity

    Outlook 2014

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    Hello.

    We are really looking forward to a new year and the marketplace innovationsthat we hope will have a profound effect on media audiences in 2014.

    While we didnt get everything right regarding our thoughts we had for 2013, thats OK!To us, whats important is not what didnt happen, its about why things d idnt happen.By understanding the why, we are better able to fine-tune our perceptions forwhats next.

    For 2014 we would love nothing more than to point to 10 guaranteed disruptions, butwe all know that its never safe to make assumptions in this business. To be effective,we need to be fast and we need to be curious. Our curiosity will lead us to discover,test, learn and refine. And through this process we will fuel the next generationof communication strategies, tactics and creative.

    These pages will give you a sense of what excites us for next year. Take a look andlet us know what you think @ipglab or www.ipglab.com; wed love to hear from you.

    See you in the new year!

    David Rosenberg & Chad Stoller, Managing Partners, IPG Media Lab

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    Looking back on 2013, we underestimated the speed and unpredictability of innovationin a world where change can spring from anywhere, at any time. Though we said 2013was the year of refined anticipation, The Kickstarter Effect showed all of us howdisruptive and unpredictable progress could be. And with little tech companies sharingshelf space with the big guys, anticipation was not quite as refined as we thought, andthere were a few other things we talked about last year that are worth noting checkout this handy sample of where we were last year, and where we are now.

    Sometimes serendipity is just intention unmasked- Elizabeth Berg,The Year of Pleasures

    THE KICKSTARTER EFFECT

    WHERE WE WERE:The success of Kickstarter is flipping thepurchase funnel, with consumers now payingfor products before they are in market or onthe shelves. Brands who take advantage ofthis new model can build a ready market of

    customers, and save on market researchand guesswork.

    WHERE WE ARE:The Kickstarter Effect showed all of us howdisruptive and unpredictable progress couldbe. The crowdsourced-funding platform hasintroduced us to products like PowerUpssmartphone-controlled paper airplane

    and BIA, a safety-oriented sport watch.With that said, a history of manufacturingblunders has taught us that funding do esnot guarantee success.

    CONTENT GOES SHOPPING

    WHERE WE WERE:In 2013 we will continue to see thepurchase funnel being squeezed at bothends as companies strive to satisfyconsumers need for instant gratification.Content and commerce used to be di fferent,but now we are starting to see the two cometogether more and more.

    WHERE WE ARE:Media owners have embraced commerce,integrating purchase into TV, online vi deo,editorial and more. See Shazamable adsfor movie tickets and Cosmos shoppablecontent. Beyond this, we are also seeingmedia properties embracing new revenuestreams through affiliate programs like TheWirecutter, stickers and even more unlikelyventures like Conde Nasts fashion college.

    BEHAVIOR MODIFICATION

    WHERE WE WERE:Apps like Lift help establish good habits, andDaily Feats offers tangible rewards such asgift cards for good deeds. But be warned, thereis a danger in creating compelling motivationsoutside of the behavior itself,

    and encouraging the wrong habits.

    WHERE WE ARE:Intrinsic rewards are still paramount, but nowdata is the catalyst for behavior modification.Smart devices li ke Nests thermostat andDASH Labs automotive tracker providefeedback loops based on your behavior and

    make it easy to be co gnizant of your actionsand adjust them.

    THE NEW NOSTALGIA

    WHERE WE ARE:Nostalgia still plays a large role as ourmemories become even more photographicand are documented as a visual remembrance.But people are now aware of this hyper-documenting and have responded by curatingtheir pasts. People are embracing a moreselective memory over a comprehensive oneand Snapchat Stories is the perfect casein point.

    WHERE WE WERE:Now that most of us are armed withsmartphones with sophisticated cameras,the cost of immortalizing our lives has entirelydisappeared, leading us down the path ofhyper-documenting. This hyper-documentingis resulting in a new breed of acceleratednostalgia where what happened onlya year ago seems like a bygone era.

    2013,A Year in

    Review.

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    2014,Whats the

    Big Story?

    Anticipatory computing, a trend we touchedon last year, is going to take our relationswith machines an empathic and predictivestep further with the growth of Google Nowand services like Refresh.1We will becomeone notification nation, with smarter andmore personalized data for all, and oftenat-a-glance. Well also see data doi ng goodas information guides and powers more

    intuitive, hyper-targeted messaging to makeus healthier, smarter, and more in tune withour lives. And just as were figuring out how toplay in the sandbox with Generation Y, look outfor the rise of Generation Z. The most ficklegeneration ever identified has more choicesas consumers and tech adopters than everbefore. This leads us to the overarching themefor 2014 welco me to the year of serendipity.

    In April, a piece in The New York Times calledEngineering Serendipity explored theconnection between workplace serendipityand creativity and made us think of something

    more; with smarter and more robust d atausage, serendipitous encounters withconsumers will take center stage as weanticipate what they want, before theyeven know they want it.2

    Behold the era of the happy accident, whereeach and every unexpected aha moment isa mindful mix of just the right stuff (so dontget it wrong). Science is full of examples ofserendipity penicillin was discovered bya sample mistakenly left open and turningto mold, the humble Post-it started as anexperiment for adhesive, and ChristopherColumbus discovered America while

    looking for a new route to India.

    These all fall i nto the happy-accident category,but were going to show you how 2014 is goingto usher in a more engineered approach toserendipity, with a little (OK, a lot) of helpfrom machines that know us better than weknow ourselves, a constant influx of remindersabout everything from running to a meeting orrunning a marathon, and smart data in serviceof every one of our needs.3

    All of this serendipity wi ll inspire a new,diverse generation of consumers to challenge

    us with their tech know-how, smarts, andcynicism. So, heres to a healthy, happy,and well-engineered new year.

    1Malik, Om. The Coming Era of Magical Computing. Fast Company. 18 Nov. 20132Lindsay, Greg. Engineering Serendipity.New York Times. 5 Apr. 20133Malik, Om.

    If youre looking to reach users during momentsof achievement, You might consider Kiip, becausethey serendipitously reward smartphone users inapps and games in achievement moments.

    WHAT THE EXPERTS SAY:

    Kiip is about taking these moments and helping brands to be there t o rewardyou serendipitously its about looking at how my phone can be sensitive to the

    moments of achievements I have in other areas of my life. I could be hitting mymileage consumption goals in my car, or my fridge could be monitoring how fresh myvegetables are or my Nest thermostat could reward me for my energy consumption.

    All these things are connected with the phone as the hub. Its about taking the

    natural behavior patterns that exist in apps and services and helping brands bethere in the moments when youre actually feeling something and are happy.

    Brian Wong, Founder, Kiip

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    4West, Gillian. Google Takes to the Streets of London.The Drum,6 Nov. 2013.5Collins, Jon. The Internet of Things: A Market Landscape.Gigaom, 18 Jun. 2013.6Collins, Jon.7Wolf, Michael and Foster, Craig. Forecast: Smart Homes and the Internet of Things.Gigaom, 28 Aug. 2013.8Hocksenson, Lauren. In the Future, Your Home Will Be Your Family. Gigaom, 6 Nov. 2013.9Levy, Steven. Nest Gives the Lowly Smoke Detector a Brain And a Voice. Wired.com, 8 Oct.2013.

    If youre looking to access real-time dataabout all things product, you might considerEVRYTHNG, because they provide a range ofmanaged applications to make products(and consumers) smarter.

    WHAT THE EXPERTS SAY:

    With the Internet of Things, you are able to monitor all sorts of behaviors, not

    just explicit digital interactions with physical objects, or machines interactingautonomously on your behalf, but overall lifestyle data including public healthsources,for instance. You can pull all of that together to make analytics-based

    predictions and I think thats a rapidly emerging area. Separating signal fromnoise is going to become evermore important.

    Andy Hobsbawm, Founder & CMO, EVRYTHNG

    The NewAnticipatory

    and The Internet,Objectified

    Simply put, the internet of things describes agrowing phenomenon in which every physicalobject can have some form of connection tothe Internet.6The Internet of Things will becoming soon to an o bject near you, and itsgoing to make your home a whole lot smarter.Household devices figure very prominentlyin the Internet of Things Nests smartthermostat system allows users adjust the

    temperature in their homes, all over theInternet, and smoke detectors, refrigeratorsand Icon Mobile Groups pet doors that cansense rain and lock are going to keep Fidodry this year. Look for mobile to grow bypowering the Internet of things it will bethe convergence point for all of our always-onmedia and the place where alltechnology meets.7

    As technology becomes more and morehuman, (always available) personal cloudaccess will allow you to program your DVRremotely and fully automate your home. Mark

    Rolston, CCO at frog design, imagines that oneday your home will be sitting and waggingits tail and waiting for you to come home.8Marketers, take notice: Its all about a customelement of surprise thats never aggressive think happy dog vs. a teeth-baring mongrel.A recent Wired magazine piece about Nestnoted the implications of the smarter homesof the very near future, where many deviceswill be sensing the environment, talking to oneanother, and doi ng our bi dding unprompted;

    just like that happy dog wagging its tail whenyou turn the key in the door (automatically,of course).9

    We talked about anticipatory last year.But now, anticipatory computing is no longerscratching the surface. Its blowing down thedoors. Letting information come to you beforeyou have to look for it is going to become thenew normal think media that gives youideas to shift your plans based on everythingfrom weather to where to get brunch.

    Google made the lives of Londoners andtourists easier by installing Goo gle Outdoors,160 digital screens using bespoke searchtechnology incorporating a journey planner,city guide and weather reporter.4If thereare delays on the Underground the screensmay suggest alternative travel informationfor example, or on dry days promote outdooractivities. It uses Google Nows technologybut is not personalized, but rather contextual,and is a great example of how mass media(1: many) can be tailored and anticipatory.Also look out for 2014 to unite us by unifyingsystems and backing away from individual

    services the AllSeen Alliance, a consortiumspearheaded by Qualcomm, plans to createan open-source framework that will connectsmart devices across platforms to power aconnected world.

    IS THIS THING ON?Connected devices, paired with the rightoperating system, ladder up to the emergenceof the connected home: A family of four wil lmove from having 10 connected devicesin 2012 to 25 in 2022 to keep us always onwithout even realizing it.5For quite some timenow, industry watchers have been talking

    about how the Internet of Things is going tochange how we view connectivity.

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    10Warren, Tom. Nokia Adds Peek Feature to Lumia 925. The Verge, 10 Jul. 2013.11Harper, Elizabeth. Motorola Moto X Review: The Only American-Made Smartphone. DealNews, 12 Aug. 2013.12Bell, Lee. Curved Screen Smartphones Could Catch On, If Apple Embraces Them. The Inquirer,29 Nov. 2013.

    If youre looking for smart briefs on the peopleyoure about to meet, you might consider Refresh,because they deliver an instant dossier, andstraight to your mobile.

    NotificationNation

    In the new world order where every form ofcommunication counts, we will see the rise ofthe notification as an emerging media vehicle/delivery mechanism to ensure serendipitousencounters. For an Attention Economy, itscrucial to continually monitor the value ofwhat were saying as the bar rises higherand higher.

    CHANGE THE CHANNELLook for notifications to work very clo sely withlocation-based apps like Foursquares Pilgrim,a new feature that offers suggestions basedon where you are without having to start theapp itself.AT-A-GLANCEIts true that the term glanceable (bite-sizedvisual communication) has been around for afew years now, but with the rise of anticipatorymedia and notifications, smaller real estate isbecoming a big new reality. As serendipity setsin, its all about media, at-a-glance. Content is

    going to be measured based on the ability totake it all in, and at a glance. And its not justmedia companies thinking smaller; hardwareis giving this trend the once-over, too.Nokias Lumia 925 device has an improved(and self-described) glance screen.10

    And the new Moto X enables media-at-a-glance by illuminating the notificationssection only saving battery power.11Onthe design front, Samsungs Galaxy Roundfeatures a curved design that lets you tilt thehandset to view notifications and never missa thing, including battery levels.12LG is alsogetting curvier this year with the launch ofits G Flex phone.

    The takeaway? Developers and brands willneed to pack a ton of value and condensedinformation into glance-worthy bites inthe form of an easy-to-read UI, and atprecisely the right time. To custom-build thatexperience, brands will need to be presentmessaging with immediacy and withoutdelays, as well as di splay an understandingof contextual relevance and value.

    WHAT THE EXPERTS SAY:

    So many companies try and chase productivity, but I think they chase it in the wrong

    way. They try to ensure that you got the conference call number and the details, whichis all fine and great but thats not how things get done. Things get done because youremember what you two talked about, you remember their significant others name,

    you remember that they were training for a marathon and you do so at precisely theright time and place. Thats what we are enabling through Refresh.

    Bhavin Shah, CEO & Co-Founder, Refresh

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