marketing in the age of machines · lifebuoy infection alerts system using an algorithm that looked...

Marketing in the Age of MachinesRonnie Thomas and Chris Stephenson

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POTENTIALREALITYBETTER

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The Human-Technology Merge5 Stages

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STAGE I:Surfacing. 1950-1995.

The introduction and early spread of screens and the world-wide-web surfaces up

information for us

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STAGE II:Organising. 1990-2015.The organisation of the information through search engines, browsers, operating systems and apps makes it possible to get to what we want

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A study by the International Data Corporation (IDC) found that, of the 2.8 trillion gigabytes of data that had been created by 2012, only 0.5 percent was actually being used

0.5% of Data is Used

STAGE III:Extracting. 2010-2025.

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STAGE III:Extracting. 2010-2025. Introduction of machine learning leads to dramatic improvements in the extraction of information – from advanced O.S. and semantic web through to virtual assistants.

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1. CHATBOTSCustomer service. Ubiquitous cognitive layer across websites, apps and out-of-home experiences. Tailored and Sequential interaction. Linked to Payment. NLU integration.

2. VIRTUAL PA’SPersonal assistants available 24/7; 98%+ accuracy level with true natural language. Access to extensive open API network. Organic personality development that evolves to you.

5. HEARABLESSound-only interactions via in-ear device or narrow sound projection. A carrier for VPAs and allows for location messaging and event experience augmentation.

7. VIRTUAL REALITYImmersive virtual reality, experienced through a physical headset. Currently via individual experiences, but will evolve into shared worlds populated by both real and virtual people.

8. MIXED REALITY Virtual layer on the world that understands and reacts to the physical environment. Adopted commercially at first, but as price drops and portability increases, will become a consumer device.

4. WEARABLES Smartphone independent devices with deep-view technology, so they can read blood, assess hydration, etc. Smart rings with embedded microphones enable VPA engagement

6. AUGMENTED REALITYVirtual information passively layered on the physical world. Surface data layers to filter and project information. Experienced and enabled through screen-based interactions.

STAGE III:Extracting. 2010-2025.

3. AMBIENT AIVirtual assistance built into devices and locations. Significant increase in penetration of in-home, in-car AI and other public places. Enables spontaneousretail (SDK enabled).

91. Wifmore Consulting believes that this is such a rich area for innovation that, by 2018, the ‘Hearables’ market could be worth $5bn.

HEARABLES1

Doppler Labs’ “Here One” | Ambient AI carrier | Translation | Location messaging | Experience Augmentation

STAGE III:Extracting 2010-2025

BONE-INPUT: ALLOWS SOUND-IN WITHOUT BLOCKING SOUND. EARLY EXAMPLE: ORII RING

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Daryl Arnold,ConnectedLifeSingapore


CONNECTEDLIFE COMBINES SMART HOME TECHNOLOGY AND 24/7 PERSONAL ASSISTANCE WITH UNIQUE INSURANCE COVER … NO MATTER HOW YOU LIVE YOUR DAY, YOU AND YOUR HOME ARE ALWAYS CONNECTED TO YOUR NOMINATED LOVED ONE

CONNECTEDLIFE,IO


111. The technology layer is being created now – one example: the SpatialOS Games Innovation Program (by Improbable / Google Cloud Platform). 2. Websites will give way to ‘Worlds’

THE VR WEB Universal Environment1 | Construction of parallel worlds2


AN EXAMPLE: IMPROBABLE’S SPATIAL OS”WE ARE WORKING ON VERSION ONE OF THE MATRIX”

Herman Narula. CEO at Improbable

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AN EXAMPLE: GOOGLE ASSISTANT AT I/O 2018EMOTIONS AND PERSONALITY

1. Apple announced at its Worldwide Developer Conference in 2016 that it was finally allowing other companies to integrate its assistant into its products. So you can now ask Siri to send a message on WhatsApp, make a payment on Square, call someone on Skype and map your exercise on Runtastic. In December 2016, Google and Microsoft also announced that they’d do the same with their VPAs.

SENTIENT VPA 98%+ accuracy level with true-natural language | Extensive open API network1 | Organic personality development


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STAGE III:Extracting. 2010-2025. Introduction of machine learning leads to dramatic improvements in the extraction of information – from advanced O.S. and semantic web through to virtual assistants.

STAGE IV:Anticipating. 2020-2035.Deep learning AI leads to technologies that anticipate our needs andinterests, and start to make decisions for us.

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STAGE V:Elevating. 2030-2050.

Artificial General Intelligence, Nano-tech, Bio-Tech and Quantum Computing lead to humanity and technology

becoming indistinguishable from one another, both virtually and biologically. The Merge is complete. Humanity evolves.

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STAGE III MARKED THE POTENTIAL FOR A GOLDEN AGE

17| ARTIFICIAL INTELLIGENCE |

DRIVERS of AI and MACHINE LEARNING

426 420 427 437 449 459 472 480 487 492

571 598 600 597 611 609 625 637 651 650

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

GLOBAL NORTH AMERICA

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STAGE V:Elevating.2030-2050

STAGE IV:Anticipating. 2020-2035

STAGE III:Extracting.2010-2025

STAGE II:Organising.1990-2015

STAGE I:Surfacing.1950-1995

28TH JAN 2019, SINGAPOREDay 25,229 of The MERGE

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POTENTIALREALITY

WHAT WE THINK MACHINES DO

Utility Efficiency Innovation

DisruptionCommodit

isationDisinter-

mediation

WHAT WE THINK MACHINES DO

Business is Mostly Intangible

17%

32%

68%

80% 84%

83%

68%

32%

20% 16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1975 1985 1995 2005 2015*

Tangible Assets

Intangible Assets

[1] Ocean Tomo LLCComponents of S&P 500 Market Value

By 2015, 84% of the value of all businesses was intangible value, of which brand value is a key component, according to Ocean Tomo LLC [1].

This is most true in Consumer Services

[2] Jonathan Knowles, Type 2 Consulting, analysis of data from the annual brand value league tables published by Brand Finance, Eurobrand, Interbrand and Millward Brown for the 6 years 2010 to 2015.

On average brand value accounts for about 44% of the total market capitalization of Consumer Services

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Brand Value as a % of Market Capitalisation

Stronger Brands, Stronger Businesses

[3] Kantar Millward Brown, BrandZ, 2017

Strong brands far out-perform the average business in terms of shareholder returns; BrandZ portfolio of strong brands grew by 124.9% from 2006-2017 vs 34.9% for the MSCI World Index [3]

BrandZTM Strong brands portfolio vs.S&P 500 vs. MSCI World Index

The value of the BrandZTM Strong Brands Portfolio increased 124.9% between April 2006 and April 2007, outperforming both the S&P 500 and the MSCI World Index

Brand effects work in the long term

[4] ‘Effectiveness in the digital era’, 2016, Binet & Field, The IPA[5] ‘The Long and the Short of It’, 2013, Binet & Field, The IPA.

Brand-building activity drives much stronger sales growth over periods of 6+ months than the temporary uplifts driven from by short-term sales activation [4]

The optimum split in investment between brand-building and sales activation is on average 60% brand-building, 40% activation [5]. Invest less than 60% in brand activity and the brand equity required to generate future sales will not accumulate

Sales activationShort-term sales uplifts

Brand buildingLong-term sales growth

Sales uplift over base

Short-term effects dominate 6 months

Time

Sales activation/Short-term sales uplifts Brand-building/Long-term sales growth

Rising short termism; falling effectiveness

Source: IPA Databank 1998-2006 case studies

Advertising Effectiveness is declining; IPA research suggests that this is being caused by a focus on shorter-term, rational/product messaging, over branding

This is more likely to be true of the people and brands in the room today

Source: IPA Databank 1998-2006 case studies

There is a civil war at the heart of marketing and audience targeting

vs

Marketing in the Age of Machines

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Finding a Better Way to market in the Machine Age

Win the CATEGORY

and the PERSON

Win the MOMENT and the

LONG GAME

FulfilNEEDS

and create WANTS

Win the CATEGORY and the PERSON

AirBnB ExperiencesHaving already disrupted the travel category, AirBnB continues to winand grow the category by creating new categories of travel –Experiences; inherently customizable for multiple types of travelers, Experiences give AirBnB them scale across the travel sector

1. Reach all category buyers Campaigns at Scale, Traditional Media still relevant

2. Customization vs Personalization Customize for behavioural custom segments, leverage the power of digital

Win the CATEGORY and the PERSON

Tennessee Tourism Vacation MatchmakerTennessee Vacation MatchMaker used pre-roll ads edited in real time to match all the viewer's online behaviors, likes and interests. The geo-targeting filter even ensured the attractions shown were within driving distance of the viewer's home.

1. Reach all category buyers Campaigns at Scale, Traditional Media still relevant

2. Customization and / vs Personalization Customize for behavioural custom segments, leverage the power of digital

Win the MOMENT and the LONG GAME

Lifebuoy Infection Alerts SystemUsing an algorithm that looked at Search and Social data, Lifebuoy was able to deploy brand and educational messaging to a mass audience in moments where consumers were most receptive – helping it win the battle against disease outbreaks, but also build long term associations and memory structures at scale

3. Create or target receptive moments based on emotion and rational contexts

4. Leverage predictive modelling to anticipate and create real-time communications

5. Deliver long-term brand experiences and utility

Fulfil NEEDS and create WANTS

Tourism AustraliaFulfilling the need to travel with discounted fares, but importantly, creating desire for a holiday away from the stress of wherever they lived, and travel to a place where there’s Good News everyday – Australia.

6. Brand storytelling define and leverage your ‘why’

7. Experiences People choose travel locations based on the experiences that they can have there

8. Leverage intent data to fulfil needs protect your data, use it wisely

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For more information please contact Chris Stephenson ([email protected]) & Ronnie Thomas ([email protected])

Thank you

mailto:[email protected]

marketing in the age of machines · lifebuoy infection alerts system using an algorithm that looked...

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