FACEBOOK F8 2016 TREND RECAP

FACEBOOK F8 2016 OVERVIEW

The Future on DisplayI recently attended Facebook’s F8 developer conference in San Francisco and the event did not disappoint. Mark and the Facebook team outlined their approach to a ten year roadmap, launched the highly anticipated Messenger chat bot beta and showcased their first concepts of a social virtual reality experience. In addition to this POV our team has also written a comprehensive eBook about the shift from social media to messaging and the role data, chat bots and conversational commerce will play for brands.

This document covers:•  The 10 year roadmap analysis•  The Rise of Chat bots•  Immersive Experiences & Social VR Tom EdwardsChief Digital Officer, Agency

 

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APPROACH TO PRODUCT LIFECYCLE 01Facebook’s ApproachFacebook has evolved significantly over the last ten years. Now Facebook approaches monetization of platforms through a single continuum based approach.

Step 1: Build or acquire technology to meet a perceived need. Step 2: Focus on creating viable products to see what creates scale. Step 3: Build a 3rd party ecosystem to support sustainable growth and solidify a path to monetization.

Key Takeaway Understanding where a Facebook technology exists along this continuum is key to understanding how to create value today as well as into the future.

STAYING POWER 01The Next DecadeThis was the 10 year roadmap presented at F8. It follows the lifecycle continuum approach outlined in the previous slide. Facebook proper is the most mature and has a thriving 3rd party ecosystem as well as a sustainable monetization model.

Messenger has been identified as the next ecosystem with powerful tools that were released at F8 2016 to drive conversational commerce and a new approach to replacing apps..

VR, Connectivity and AI represent the near future for Facebook and Social VR will be a key area to watch.

Key Takeaway Developing strategies that capitalize on creating value today while experimenting for the future is key

FACEBOOK PROPER 01Big BlueWhile most of the announcements were tied to Messenger, VR & AI, Facebook proper still made an appearance.

Account kit was launched which provides more flexibility to social login by eliminating user passwords and simply relying on tokens tied to the users mobile number Facebook also launched instant articles to all publishers as well as extending the Save to Facebook button to 3rd parties.

Key Takeaway Many of the announcements for Facebook proper were tied to extending the reach of the platform, streamlining the login experience and reducing load time for content. With over a billon users and a highly sophisticated advertising platform Facebook proper is not going anywhere in the near future.

VIDEO 01Massive ShiftFacebook’s mantra of reach, reaction & resonance extends to their video offerings for both Facebook & Instagram. Over 75% of Facebook video views come from mobile.

Facebook is focused on connecting behavior with content and their approach to video is focused on being contextually relevant through affinity & behavioral targeting vs. being a destination for video content.

During F8 it was announced that Facebook Live API’s would now be open to be integrated by 3rd parties as well as tools to protect makers from Freebooting of their content which has been a key issue keeping some creators from leveraging the platform on behalf of brands. Points to ConsiderFacebook is heavily focused on video as a staple of the next few years. This includes 360 degree video support, dynamic streaming of VR content and more API’s to support further integration.

MESSENGER

Connect Through ConversationWith 900M users and over 1 billion messages sent per month, Facebook felt that Messenger has progressed through their approach of technology, product and now has hit the inflection point of scale to build out an ecosystem to solidify and sustain Messenger as the go to application.

The key is that Messenger will support one bot to many pages. This makes it easy to seamlessly connect brands or services in a portfolio to create compelling and unique experiences that are 1:1.  Key Takeaways Since Facebook does not own the mobile hardware or the operating system, they are positioning Messenger threads as a replacement for native apps.

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CONNECTIVITY 01Connectivity for All Facebook’s mission is connect everyone on the planet in the next 5-10 years.

Facebook is very focused on creating new forms of connectivity. Whether it is beaming internet access down from solar powered aircraft and satellites or developing new antenna to increase speed in urban areas to decrease data costs.

Facebook is investing in hardware and programs like the Open Compute Project and focused on how to bring 5G connectivity forward.

Key Takeaway Connectivity is currency in the attention economy and Facebook understands that they have the opportunity to solidify their position globally as well as have access to new sets of data and behaviors to further refine and enhance their existing offerings.

ARTIFICIAL INTELLIGENCE 01AI EverywhereFacebook states that artificial intelligence is better than people at perception.

Facebook is focused on advancing artificial intelligence for the purpose aligning relevant content, assisting our daily lives, filtering spam, supporting new forms of accessibility for disabled individuals and powering new service offerings such as indexing key moments with friends in videos.

Key Takeaway AI tools will be key to advancing products and technologies into ecosystems. We are seeing it in action with Messenger and chat bots. The engine that supports M is now the basis to support the build out of conversational bots.

VIRTUAL & AUGMENTED REALITY 01Next Evolution of ComputingFacebook states that virtual reality is the next evolution of computing and is heavily invested in the hardware and experiences that will comprise aligning technology with presence.

During F8 Facebook outlined a path forward for active VR experiences, demonstrated social VR concepts for the first time publically and identified augmented reality as a viable disruptor for the first time as to date all the conversation has been about VR experiences.

Key Takeaway Virtual Reality experiences are coming and the key will be empowering consumers to create their own immersive experiences.

Facebook’s long term goal is to create completely virtual experiences that recreate the physical world. For now wave 1 will be avatar based.

HARDWARE & OPEN PLATFORMS 01

Open ApproachOpen API’s and ecosystems are how Facebook plan to remain relevant but there is a third key pillar to the strategy and that is the development of hardware.

From the Oculus Rift, Solar powered planes, 360 degree camera rigs and rethinking urban connectivity through new forms of antennas.

The launch of Surround 360 and the subsequent open aspect of sharing the design, Facebook is looking to ease the process to create immersive experiences.

Key Takeaway Facebook understands that in order for new immersive technology to be adopted it needs to be easy to create for the medium.

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WHY MESSENGER?

Connect Through ConversationOne of the core benefits of Messenger bots vs. native apps is one build applies to all platforms.

Messenger will also support one bot to many pages. This makes it easy to seamlessly connect brands or services in a portfolio to create compelling and unique experiences that are 1:1.

Finally by focusing on a conversational interface vs. a command line approach, Facebook is enabling a cleaner user experience that is focused on bringing the content directly to the user vs. the user having to search for it. Key Takeaways Since Facebook does not own the mobile hardware or the operating system, they are positioning Messenger threads as a replacement for native apps.

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CONVERSATIONAL COMMERCE

Connect Through ConversationOne of the biggest announcements at F8 was the launch of the Messenger Platform Beta that introduced new API’s that allow 3rd parties to create conversational bots as well as additional points to integrate commerce into conversation.

Facebook is also experimenting with integrating Messenger with Apple & Samsung Pay to offer physical checkout in retail settings bypassing credit card terminals.  Key Takeaways This approach is instant, interactive, proactive and personal and will create a new form of commerce that is contextually relevant and easy to facilitate within the Messenger application and integrates with a brands existing e-commerce presence.

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SEND & RECEIVE API

How It Works Facebook’s chat bots are built on the Send/Receive API that allows automated messages from systems and bots or a hybrid of system & humans.

Bots can engage via text, images or through a set of structured templates such as a carousel that can house multiple cards such as products, elements of conversation or as a delivery card for an existing API such as weather or location.

Key Takeaways It is key to begin thinking about an approach to what a conversational user experience could look like for your brand. The tools exist to facilitate new ways to connect, provide utility or entertain through Messenger.

 

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WIT.AI

Building in ConversationWit.AI is the bot engine that has been the foundation of Facebook’s M artificial intelligence experience.

Wit.AI is built on top of the Send/Receive API.At the launch of the beta at F8 it’s possible to leverage both (Send/Receive API + Wit.AI) to create fully conversational bots. An example in action is the Poncho bot. Scan the code (bottom left) in Messenger to launch Poncho. (SettingsàProfileàScan Code) Key Takeaways Wit.AI is the interface to “teach your bot” how to have a conversation. With a wealth of API’s that are pre-existing, it makes it easier to add additional services such as location into the conversation to create additional relevance with a user.

It’s purpose is to support conversational context and predict the next action to satisfy the user.

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DISCOVERY

Discovering New Ways to ConnectOptimizing discovery of messenger experiences is a critical component to adoption by both consumers and businesses. Messenger experiences can be discovered directly through Messenger search as well as Message Buttons that link directly into the Messenger experience.

These can connect from a web site and pass context from what the user was interacting with seamlessly into Messenger.

Messenger can also connect to existing identity systems through checkout plugins.  Key Takeaways It is important to not only consider your content and decision tree approach to a conversational user experience but ensuring that you are leveraging all of the tools available to create new points of discovery with consumers.

 

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PROMOTION

Scan AwayMessenger now boasts scannable codes, usernames, links, enhanced search and social sharing plugins that seamlessly connect physical and digital entry points into the Messenger experiences.

Facebook is also offering customer matching from SMS lists or customer phone numbers to match customers to their messenger user via phone numbers for a one time $99 fee.  Key Takeaways With 50M businesses on Facebook and the ability to match consumers based on SMS Facebook is providing a quick and easy connection customers to experiences and bots. Codes & links will be a key driver to shift behavior from Page posts only to leveraging Messenger as a central element of customer interaction.  

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ADVERTISING

No Ads TodaySince this is a Beta launch advertising is actually in the alpha phase of testing. Currently Facebook is testing what sponsored messages can potentially look like in the platform.

We have also closely followed the reach and impact of mini-games, emoji activations and other immersive experiences that can potentially created within Messenger.  Key Takeaways Other platforms such as WeChat, Kik, LINE and others have developed approaches to advertising and enabling brands and we fully expect Facebook to roll-out a comprehensive.

For now the role of Messenger is to have/create organic, personal experiences that either enhance a product or service or as a delivery mechanism for branded content. 

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Epsi lon eBook

Deeper InsightOur team was well aware that Facebook was launching 3rd party chat bot API’s prior to the event and we maximized the time to create a comprehensive eBook that dives into proprietary research about the consumer shift from social media to social messaging as well as how chat bots can become the new apps.

The eBook also looks into the role that data can play in the new messaging ecosystem as well as overviews and user feedback of some of the top messaging platforms and finally a number of use cases for how Messaging apps can support existing CRM strategies, discovery and what conversational advertising will look like in the near future.  Key Takeaways Please take a moment & download our eBook today.

http://bit.ly/1MsF14A Additional questions please reach out to Tom.Edwards@Epsilon.com or simply scan the code on this page and send a message.  

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VIRTUAL & AUGMENTED REALITY 03Next Evolution of ComputingFacebook states that virtual reality is the next evolution of computing and is heavily invested in the hardware and experiences that will comprise aligning technology with presence.

During F8 Facebook outlined a path forward for active VR experiences, demonstrated social VR concepts for the first time publically and identified augmented reality as a viable disruptor for the first time as to date all the conversation has been about VR experiences.

Key Takeaway Virtual Reality experiences are coming and the key will be empowering consumers to create their own immersive experiences.

Facebook’s long term goal is to create completely virtual experiences that recreate the physical world. For now wave 1 will be avatar based.

PASSIVE TO ACTIVE 03Controlled ImmersionAs virtual reality hits the consumer market in 2016, having the ability to refine the experience will be key.

Moving from passive to active viewing is one of the primary goals of VR experience creators.

The key to active VR engagement will be based on additional motion sensors that allow depth based interaction in the experience.

At F8 Facebook announced Touch which is their peripheral for the Rift that will allow interaction. The touch is very similar to the recently released HTC Vive.  Key Takeaways As more brand marketers begin to experiment with virtual reality, it is important to realize that the experience should go beyond simply consuming content and strive to provide interactivity.

GEAR VR 03Entry Level VRThe Gear VR has been all over industry trade shows this year. From CES, Mobile World Congress to Samsung’s street activations with the Gear VR.

Over 2 million hours of immersive video content has been viewed on the Gear VR and over 200 apps are now available.

Facebook views the Gear VR as the premier light VR experience, claiming superiority over Google cardboard and other phone based VR viewers.

Key Takeaway The key to creating compelling Virtual Reality experiences starts with understanding which type of experience will resonate with your audience.

Will it be a CGI Real-Time Game Engine Render or will it be a form of pre-rendered 360 degree video or static photography.

SOCIAL VR – EXPERIMENTS 03Virtual Reality is Social? One of the big surprises from the conference occurred during the Day 2 keynote when the first social VR concepts were unveiled at F8.

The initial experiences were rudimentary and integrated 360 degree static imagery to teleport the users to various locations as well as avatars that represented something you would expect to see on a Wii.

The initial demo focused on the ability to create and share virtual reality content on a users wall.

Key Takeaway Even though wave 1 will be heavily avatar driven Facebook made it very clear that VR has the potential to be the most social platform. It will be important to monitor how social VR experiments progress and the role that brands can play to further empower consumers.

SOCIAL VR – FUTURE 03Achieving Social PresenceFacebook’s goal with Virtual Reality is to ultimately achieve social presence in VR. This would include replicating real world social interactions and claim this would be a transformative achievement.

The key to the future of social VR will come down to having the ability to capture motion in subtle ways and have them manifest into lifelike avatars and incorporate an element of social prediction.

Social prediction is based on non-verbal gestures such as walking up and extending a hand to a stranger

Key Takeaway Facebook understands that this is a lofty goal and many barriers exist but they are committed to recreating social experiences in VR.

VIRTUAL & AUGMENTED REALITY 03Mixed RealityHolographic computing, sometimes called mixed reality, is a form of augmented reality (AR) where users can spatially interact with digital overlays. A recent forecast from Citi analysts highlighted the future of the VR/AR industry, and their view is that AR technologies will be most likely to disrupt major digital markets.  During F8 Facebook made their first public statements about mixed reality solutions during the initial keynote. Mark Zuckerberg outlined how normal glasses may be the form factor to unlock mixed reality solutions.

He also outlined how many physical objects of today like the TV for displaying images will actually be $1 apps in an AR app store.  Key Takeaways The potential application for brand marketers is incredibly exciting as AR represents a blank canvas against the physical world. Epsilon is part of the wave 1 group of developers working with Microsoft’s Hololens Mixed reality device and will be bringing mixed reality solutions to our clients as the platforms evolve.

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