CES 2015A Recap For Marketers

Andy MaskinSpecial Consultant to StoryTech

January 13, 2015

Executive SummaryThis year at CES we saw an explosion of technologies aligned with what we call a meta-trend, "The Internet of Me." Within this idea are rapidly developing technology trends that will change the way we live our lives in the years to come.

There are trends directly related to content consumption and mindshare, which has an obvious and direct impact on the way marketers reach and influence consumers.

There are also trends that will ignite fascinating lifestyle changes for consumers, powered by new technologies. These trends challenge marketers to get creative about how to reach consumers, perhaps influencing them by becoming part of their lives and enabling real utility.

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Key Trends• Content Gets Down To Business• Touched By A Sensor• Virtually Yours• The Modern Millennial Factor• A Transactional Life

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The Internet of Me

Content Gets Down To BusinessThe ways in which consumers consume content are rapidly changing. Traditional models are decaying as a growing portion of audiences want their content unbundled and on-demand. A generation raised on YouTube expects the content they want when they want it for modest sums of money. Traditional models will never capture this cohort, and their purchasing power is only growing.

At CES this year we saw a number of important developments that signal the continued acceleration of this trend. The evidence is clear: cords are being cut and there's no turning back. What follows are examples of some breakthroughs we saw this year.

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Sling TelevisionDish Networks announced a new streaming service called Sling Television. For $20/month users can access the live feeds of over a dozen of the most popular cable channels, including ESPN and CNN. Add-on channel packages will each be available for $5 more. The service will be available on several mainstream OTT platforms including Roku and Xbox.

This offering is a major breakthrough in the evolution of television away from expensive bundled subscriptions. Dish is already ramping up ad inventory sales for the service and is looking at the ability to deliver personalized ads programmatically.

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Content Gets Down To Business

Smart TV OS ConsolidationThe wild west of Smart TV operating systems got less wild this year. Samsung standardized around Tizen, Sharp & Sony embraced Android TV, while Haier and Insignia (aka Best Buy) adopted Roku. Panasonic embraced FirefoxOS. On many of these platforms, traditional TV lives alongside OTT apps with equal prominence in the user interface.

Fewer ecosystems means less consumer confusion, increased adoption, and increased opportunities for publishers and brands to launch apps for the Smart TV space at scale. Also, media buys for these platforms will become more manageable.

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Content Gets Down To Business

Evolution of TV Ads

There’s also news for advertisers. The platform will support an exciting variety of interactive inventory types, including: • Banners in the UI with click-to-video capabilities• Interactive overlays over programming that can launch

full-screen video• Pre-rolls and post-rolls for various apps in the ecosystem

LG announced and upgraded 2.0 version of its Smart TV platform WebOS. The new OS is faster and allows easier switching between inputs & apps. In addition, GoPro announced a branded action sports app for the platform.

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Content Gets Down To Business

TiVo One PassSince its inception, one of the most beloved features of TiVo DVRs has been the “Season Pass” which allows users to easily auto-record all their favorite shows. As the TiVo Roamio product has evolved to include more OTT services, the company is replacing this feature with “One Pass”.

One Pass will still allow users to auto-record episodes of their favorite shows, but it will do so across a variety of streaming platforms as needed. In a world where “TV” is just one of many content sources, TiVo is as big a threat to the 30-second spot as ever.

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Content Gets Down To Business

Touched By A SensorTwo of the hottest areas this year at CES were "wearables" and "smart devices". The former could be generally thought of as encompassing devices worn by users, such as smart watches and fitness trackers. The latter encompasses objects ranging from simple to complex that are being connected to Internet-based platforms.

The commonality of these categories is the sensing of previously ungatheredinformation, the transmission of this information, and the practical use of it to improve the quality of our lives. What follows are some examples of how this year's products demonstrated that the only limits to where sensor technology can take us are our imaginations.

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Smart HomeThis year saw an abundance of Smart Home platforms from companies as diverse as Whirlpool and D-Link. The common threads were devices (from dryers to door locks) sensing information from the environment, communicating this information to the user and other devices, and then acting on information received.

What does this mean for brands? Imagine a CPG brand launching an app for a smart-fridge with recipe recommendations, or a travel brand sponsoring a thermostat app. Marketers can engage with consumers with utility attached to these devices, and in exchange provide cross-sell and up-sell opportunities.

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Touched By A Sensor

Activité PopThis year’s CES saw a dramatic increase in the variety of Smartwatches with digital screens, all trying to head off the 2015 launch of the Apple Watch. The Activité Pop from Withings takes an interesting counter-approach. It has an analog interface – all the computing and digital UI happens on a paired smartphone. This makes the watch both less expensive ($149) and allows it to last 8 months on a standard watch battery. These two factors could combine to launch the category beyond early adopters.

Brands could potentially partner with Withings and create apps that also read data from the watch, or even push vibration notifications to it.

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Touched By A Sensor

BeWell ConnectFitness tracking devices abounded this year, but BeWellConnect from the French company Visiomed takes things a step further. Their line of connected products monitor vitals such as glucose levels and blood pressure. This allows these critical metrics to be monitored over time by patients, their doctor or concerned family members.

They promise an API for 3rd parties to build on their dataset, which could be a great opportunity for health brands. A drug company, for example, could sponsor an app that analyzes this data and provides wellness tips.

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Touched By A Sensor

GNC WearablesVitamin and supplement retailer GNC is a good example of how brands can play in the wearable technology space. By licensing their name for fitness devices at various price-points, they are able to reinforce their brand perception of fostering a healthy lifestyle.

Within the app that pairs with a smart device, brands could also promote their other products, or even open up ad space within the app and in effect become publishers themselves.

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Touched By A Sensor

Lots of Smart StuffOn display this year were many products that wouldn’t be obvious candidates to be “smart devices”

SmartMat yoga mat, built with pressure sensors and iPad dock.

Roost 9V battery connects to Wi-Fi

and alerts youwhen it is running

low or your smoke alarm is going off.

Neo Smart Jar contains sensors thatmeasure how much of a given item is in the jar. Connect remotely to determine how much of a given item you have left.

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Touched By A Sensor

Virtually YoursFor years, the idea of creating immersive user-driven interfaces, virtual worlds, and the real objects from digital models was the stuff of science fiction.

At CES this year we saw the possibilities in these areas explode more year-over-year than most other categories. We also saw exciting creative ideas on how brands can apply some of these technologies to drive purchase and loyalty.

What follows are our favorite examples from this year's CES of virtual reality, new user interfaces, and turning virtual objects into real ones.

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3D PrintingThe presence of 3D printing technology at this years’ CES was exponentially larger than just a few years ago. Dozens of companies big and small occupied a large dedicated section of the floor.

Aside from the increased variety, faster print speeds, higher quality and lower prices, a particular advancement stood out: the ability to print using new materials. Mixtures of plastic with limestone or wood yielded objects that felt like stone or wood respectively.

3D Systems showed off the CocoaJet, a 3D printer developed in partnership with Hershey’s that printed objects in chocolate.

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Virtually Yours

Virtual RealityWhile several companies showed off their takes on virtual reality headsets, the biggest bang came from Oculus Rift which let the public try its Crescent Bay prototype. The experience included high visual fidelity and 3D positional audio that changed the L-R balance in your headphones as you moved your head.

Meanwhile, Samsung announced “Milk VR,” a content service meant to distribute virtual reality experiences. As the hardware becomes consumer-ready, and the content funnel begins to fill, brands should take note. The travel, automotive, entertainment and real estate industries are just some examples of those that could all make rich use of this technology.

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Virtually Yours

Lego FusionQualcomm showed off Lego Fusion, a toy line based on its Vuforia augmented reality platform.

When you buy a Lego Fusion set, you assemble the desired structure and then download a free app. When you point your mobile device at the Lego structure, it comes to life in the app and you can interact with it.

This serves as a good example of how a brand can use augmented reality to bring their products to life, either after purchase or even in a retail setting.

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Virtually Yours

Tobii-powered SentryTobii has made waves in recent years at CES with its eye-tracking demos, though the products themselves have been geared toward controlled environments such as focus group testing.

This year they launched Sentry in partnership with SteelSeries. Sentry is a PC peripheral meant for consumers. It allows people to experience eye-controlled content on their own computers. The demos at the show were simple games, but one could imagine the possibilities of more advanced and perhaps branded games in the future.

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Virtually Yours

The Modern Millennial FactorThe Millennial generation is entering adulthood and their purchasing power is growing substantially. As marketers try to reach these consumers and form lasting relationships, they need to understand how their perspective differs from other generations. Two key differentiators are their having grown up in the midst of the digital age, and their interest in social good.

They take ubiquitous technology for granted, having missed what came before. And it seems natural to them that using technology to better the world makes perfect sense. What follows are the technologies we saw at CES that best embody the spirit of this critical demographic.

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SustainabilityA major growing category seen at this year’s show was sustainable products, particular those that are solar powered. Mainstays such as Eton showed off their latest models of rugged, powerful and clean-energy electronics.

GoalZero proved their point about the water-resistance of their solar battery packs by making it rain on them throughout the week.

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Modern Millennial Factor

eSportsIn the wake of the sale of Twitch to Amazon for almost $1 billion, older folks are finally starting to realize that people watching other people play video games really is a thing –and a big one at that.

The gaming area of CES featured accessories tailored to Twitch broadcasters such as microphones and webcams. The Tobii booth featured a well-known gamer streaming his gameplay with an overlay of where he was looking on the screen to a live audience of thousands.

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Modern Millennial Factor

EdwinOne of the demographics most rapidly gaining marketers’ attention is “Millennial Moms”. These tech-savvy parents are quick to embrace connected toys that educate while entertaining.

Edwin the duck is a smart rubber ducky. He is waterproof and can measure the temperature of the water. He syncs to a tablet app that is populated with educational games. Since the platform can routinely be populated with new content, the potential could exist for brand partnerships and sponsored games.

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Modern Millennial Factor

TribyTriby, from the French company Invoxia, is a communication device designed for digitally-savvy kids and their parents.

The speaker-box can magnetically stick to the fridge, and has simple buttons for children to make voice calls to their parents.

Via the companion mobile app, parents can speak to their children remotely, send black and white drawings to the e-ink screen, and control the music being streamed to the speaker. The device supports FM and Internet radio.

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Modern Millennial Factor

A Transactional LifeBrand perception, consumer lifestyle and media consumption habits notwithstanding, for many marketers retail and shopping experiences are where the rubber meets the road. The end of the purchase funnel is (and has always been) critical in driving desired sales results. Meanwhile, purchasing mechanisms and store experiences are being transformed by technology.

New digitally-enabled platforms are driving sales by providing useful information easily and reducing the friction of purchase. These mechanisms are utilitarian at their core and meant to drive the transformation of a prospect into a customer. What follows are examples we saw at this year's CES of the potential for technology to change retail as we know it.

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Lowe’s Holoroom & OshLowe’s Innovation Labs showed off two exciting prototype experiences that could change the way consumers experience retail. The Holoroom allows users to equip a virtual simulation of a room in their house with Lowe’s product and explore it using augmented or virtual reality.

OSHbot is a robot on wheels that you can ask for help. Say the name of a product, or show the robot a similar product, and the robot will guide you to the right aisle. As a bonus (for retailers), the back of the robot features a large screen with context-aware ads.

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A Transactional Life

PlastcPlastc is a device meant to replace all the plastic cards in your wallet. It is the same shape and thinness of a regular credit card or loyalty card and has a magnetic stripe on the back.

What sets it apart is the e-ink touchscreen on the front. It allows the user to swipe between different credit, debit, gift and loyalty cards, changing the magnetic strip on the back of the card as it goes. The technology represents an interesting interim step for retail customers on their way to a mobile payments future.

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A Transactional Life

CarsThe automotive industry has steadily increased its role in CES in recent years. In-car infotainment systems have increasingly begun to resemble mobile platforms. This in turn has caught the attention of marketers.

This year Chevy, Pioneer and others had demos of Android Auto, an in-car OS tied into the Google ecosystem. It has the capacity to run approved apps, personalized and controlled by your voice and touch.

Ford showed off its upgraded Sync 3 platform, now with an expanded array of compatible apps. There is even a Domino’s app that lets you order a pizza with your voice while driving.

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A Transactional Life

Honorable MentionIf you've made it this far, you deserve the most unexpected idea we saw at this year's CES. Behold, the Raticator. Early generations of this pest trap were designed to detect the presence of a rodent using infrared sensors, and then humanely dispose of the critter with a strong electric shock.

At CES this year, the company unveiled an upgraded model equipped with Wi-Fi. When a rodent has been captured, the trap alerts you on your smartphone, no matter where you are in the world.

Also, there was this other booth: http://youtu.be/nQyx-V0d_nw

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Five Things to Look For in 2015• Continued decline in cable/satellite subscriptions in favor of OTT services• Accelerating consumer adoption of wearables and home automation• Mainstream awareness and enthusiasm for eSports• Bold experiments with the digital enhancement of physical retail locations• Brands taking initial steps in figuring out how to approach in-car platforms

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StoryTech is a strategic consulting and packaging firm dedicated to informed collaboration between storytellers, including brands, and technology companies resulting in profitable business and content ventures.

http://www.story-tech.com info@story-tech.com @StoryTech storytech1 storytech

Andy Maskin spends the better part of his waking life investigating startups, new technologies and media trends to help agencies and brands launch bold & innovative projects. He is also a notary public, if you need him for that too.

maskin.tech@gmail.com @aspersions

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