CES 2016: A Glimpse Into The FutureAt face value, CES 2016 produced few “new” ideas and concepts vs. yearspast. There were the expected product announcements involving advanceddrones, smart appliances, and impressive TV specs, etc., but no singleannouncement was big enough to dominate show floor conversation.

It was evident, however, that the major players in Tech such as Google,Amazon, Apple, and Samsung were placing long term strategic bets by formingalliances and staking claim on where they think the future of their respectivebusinesses will go.

It’s now clear that the next decade will see the rise of new multi-billion dollarindustries that will fundamentally change communication and commerce, in aneven more profound way than how the smartphone has disrupted business andempowered consumers in the recent past. 2016 will see The Internet of Things,Smart Homes, Virtual Reality, Self-Driving and Autonomous vehicles, andmeaningful Wearables become very real consumer offerings.

Perhaps the most interesting takeaway from this year’s conference is thegenuine attempt by the industry at large to humanize our advancedtechnological future. Examples include devices that actively listen, warminterfaces with “invisible” UI, and wearables and appliances that can anticipateour next move or need, based on the personal data we are willing to share withthem. This very necessary trend of translating “AI to HI” suggests that ourfuture will more resemble the movie “Her” and not “Minority Report,” whichshould sit okay with all of us.

The Future of Transportation: GM Invests $500M in Lyft

General Motors surprised many by announcing an investment of $500 Million USDin Lyft. In addition to the financial investment, the two companies are working on along term plan to develop an on-demand network of self-driving cars. The twocompanies are also working to set up short-term car rental hubs in the US, which willenable GM vehicles for short term rentals for non-car owners and Lyft drivers.

The announcement illustrates the diverse schools of thought in the still nascent self-driving car market. Many established auto manufacturers are incorporatingadvanced Artificial Intelligence and self-driving sensor technology in their mainlinefleets (and in the case of Tesla, software updates), assuming that consumers in thelong term will still value vehicle ownership. GM’s investment in Lyft, however, isbetting on a future that provides on-demand transportation from point A to point Bwithout necessarily depending on vehicle ownership whatsoever; in this respect, GMis the infrastructure provider to a startup that is disrupting one of the world’s biggestindustries. Time will tell if this bet will pay off, as Uber and other competitors alsoreveal their strategies to redefine transportation.

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The New Internet of Things (IoT) Battleground

Last year at CES, Samsung co-CEO B.K Yoon announced that by 2020, 100%

of their products would be connected via IoT (short for the Internet of Things,

meaning that objects will be connected to the Internet to collect and send data).

At the time, the statement sounded ambitious, but the past 12 months have

proven that IoT may be the most competitive battleground since the early days

of smartphone wars.

Google’s Nest and its Weave platform is now in direct competition with Amazon

and its Alexa platform, which is integrated into its popular Echo and Fire TV

(OTT) products, as well as Samsung’s SmarThings and ARTIK platform, among

others. In a surprise announcement in early January, Mark Zuckerberg

announced his intention to build a real life “Jarvis” (referencing Iron Man), a

combination of IoT and Artificial Intelligence for the home.

The acceleration of development in the Internet of Things space means that the

Home has been identified as a new battleground, and the data collected by our

household purchases and our conversations with our devices will be just as, if

not more, valuable than data collected from the Internet.

Drones Descend on CES 2016Drones were everywhere at CES this year. They became more of a

mainstay at the show, with around 100 new models expected to be

announced at CES 2016. There was even a drones rodeo, with 25

manufacturers showing off their wares out in the desert. Some are bigger

and more elaborate, others are more streamlined and affordable.

Some of the models to watch out for include the Parrot DISCO, which is the

first wing-shaped Drone that you can apparently pilot with no learning

process, and the Lily Camera, which is being marketed as a camera, rather

than a drone. Think remote controlled GoPro cameraman.

Of particular interest for the marketing community is research unveiled by

the Consumer Technology Association. Drone buyers in the US are serious

purchasers of tech: drone buyers each spent an average of $2,890 in online

tech in the past 12 months. That’s four times more than that of non-drone

buyers!

How Can “Things” Data Become Actionable for Advertisers?

At CES 2016, the acceleration of the Internet of Things (IoT) cannot be ignored. The

consumer data collected by these “things” and how the data can be used to buy ads is of

particular interest—however, upon walking the floor it became apparent that “things” data is

deeply fragmented and disorganized.

Many are attempting to manage this mess; from Google Nest in the home to Samsung’s

ecosystem of everyday things that talk to each other, to BMW’s Mobility Cloud that integrates

data from home and commute. We can certainly imagine a future where IoT data is used to

buy ads. For instance, a refrigerator that knows when yogurt has spoiled could be very

valuable to a yogurt brand. They could then deliver ads directly to the fridge or anything else

connected to it; but, how will we access that isolated data in real-time to make the ad buy?

We think the proliferation of “things” data and connectivity paves the way for a future

marketplace for ad buying that leverages this data, much like the DoubleClick for IoT. While

this still has a ways to go, it could make “things” (and also wearables) data actionable. As

horizontal applications outperform discreet ones, this could eventually create a sustainable

ad business for the IoT.

Samsung Smart Fridge

Still in Search of the Perfect Band (Or Watch)

The wearables watch/band market (growing 35% Y/Y) is still deeplyfragmented with every manufacturer chasing the Apple Watch. At CES2016, every watch company is getting smart. For instance, Fossilannounced that it’s rolling out 100 connected devices this year. Thethinking is that adding tech to watches just makes sense. Furthermore,bands and watches are merging. Fitbit (the leader in bands) unveiled theBlaze, a fitness tracker that includes Apple Watch-like features likefashionable bands and a color touch screen (yet not based on iOS orAndroid). Fitbit’s stock promptly dropped, perhaps because investors thinkit’s stepping out of its sweet spot and can’t compete with the Apple Watch.

But no matter how many bands and watches we see at CES (and eventhe Apple Watch, which isn’t at CES), we’re still wondering when thetipping point will occur for critical mass. What needs to happen for peopleto buy and keep a watch/band? While a wearable that is fully integratedwith your body (e.g. one that acts like a personal trainer, giving real-timefeedback) doesn’t yet exist, the industry is getting closer. One suchwearable is the Garmin VivoActive, which takes in data from your bodyand encourages you to do things like “play harder” during activities likerunning or swimming. But all-in-all, these are only baby steps from lastyear. While these wearables should be on every brand’s radar, we’re stillreluctant to call 2016 the year of the band/watch.

Automotive Takes Its Place in The Internet of Things

Automotive has made the headlines at CES for the past few years, and

this year was no exception. GM announced its partnership with ride-

hailing app Lyft to develop a fleet of driverless taxis. The move signals

auto manufacturers working more closely with Silicon Valley which can

only be a good thing.

Notable car launches include VW’s two connected and all-electric

concept cars: the e-Golf Touch and the Budd-e microbus. There was

also a lot of talk about the electric hypercar Faraday Future FFZERO1

which CNET described as “an extreme tablet on wheels.”

But arguably of most interest to the marketing community was the

exciting technology demonstrated by BMW. Its Open Mobility Cloud

technology shows how the car can be seamlessly integrated into the

connected home, enabling the driver to manage their life from within the

car. This makes automotive a key part of the Internet of Things.

Mobile Wallet Helps Create Better Consumer Journeys

Samsung Pay ads are all over Las Vegas and the Korean technology giant used

CES to announce the next stage of the rollout of its mobile payment facility. Adding

to South Korea and the US, Samsung Pay will be available in Australia, Singapore

and Brazil, and launches are imminent in China, UK and Spain.

While developments in mobile wallet technology are not as sexy as robots and

virtual reality, they are important for marketers as brands look to create seamless

experiences along the consumer journey that end in a payment process that meets

the needs of the mobile consumer.

Over at Sony’s stand, most delegates were crowding to see the latest TVs, but

nestled in the middle was an interesting example of how payment technology is

meeting the needs of consumers. For international travelers, the Sony Bank Wallet

links debit payments or ATM withdrawals to the customer’s bank account in the form

of an automatic currency exchange. The card is supported by a mobile app to

enable biometric authentication.

AR and VR Offer More Engagement OpportunitiesVirtual and augmented reality have been the darlings of CES in recent

years. For marketers, the opportunities for engagement through

gaming, utility apps and creative adverting are becoming clearer. And

what was clear from the stands at CES is that VR and AR technology is

becoming cheaper and more accessible.

Oculus – now owned by Facebook – announced that consumers will

finally be able to get their hands on their own Rift, available for pre-

order at $599. Garmin has created an augmented reality display that

cyclists can mount on their sunglasses which provides performance

information as well as directions and traffic alerts. Additionally, Hyundai

has built an augmented reality app called the Virtual Guide which

enables owners to use their phones to better perform basic

maintenance.

VR and AR will change both consumer experience and expectations.

The tipping point will be when the technology is embedded rather than

provided through separate devices.

Humanizing Data: From AI to HI

Wednesday, ZenithOptimedia and Viacom Velocity hosted a paneldiscussing the evolution of data-led marketing. Shelly Palmer, ManagingDirector Digital Media Group, Landmark Ventures, touched on where userexperience and user interface meet and how consumers are seeking africtionless environment, based off of improved data.

Rishad Tobaccowala, Chief Strategist of Publicis Groupe, followed up withthe fact that “Advertising narrowly = amazing. Advertising broadly, no onewants.” This is how we create the frictionless environment based on data forconsumers.

Sharon Profis, Senior Editor at CNET, noted that in order to makeexperiences consumer friendly, brands and advertisers have to adapt to atruly native mobile experience. This is the only way to create an experiencethat consumers want to engage with.

Overall, Kern Schireson, EVP, Data Strategy & Consumer Intelligence atViacom, brought up that consumers are in demand of their content and thatspills over into advertising. Consumers are making sure they see fewer butmore relevant ads.

The Rise of IoP (Internet of Pets)

In a world where everyone and everything is connected, it is only naturalto get our furry companions connected as well. There were several pettech companies that focused on the Internet of Pets - products designedto help pets and their owners stay connected.

PetBot allows owners to observe and interact with their pets via theirsmartphones. Owners can call their pets, play music for them,automatically record videos, take pictures of them and even dispensetreats.

A self-described ‘connected accessory’, WonderWoof’s BowTie is anactivity tracking device for our canine companions that is as innovativeas it is fashion forward. It monitors your dog’s daily activity based onsize, breed and age. In the future, WonderWoof will be launchingbeacons that can be placed around your house to help you determineyour dog’s location and if he/she is eating and drinking normally.

For many owners, pets are like kids. As we continue to get progressivelymore and more connected, smart technology companies are findingways to help us bring our pets into the family’s digital fold.

Artificial Intelligence in 2016: Powered by Your Data

The term “Artificial Intelligence” brings to mind HAL 9000 and RayKurzweil’s prediction of the singularity and possible robot uprisingwithin our lifetimes. While the latter may be inevitable (justkidding), current advancements in A.I. are based on eithermachine learning (i.e., software that allows self-driving cars tolearn from their experiences), or by the very same personal datathat advertisers leverage to target relevant consumers.

Our experiences with Artificial Intelligence in 2016 will resemblethat of a personal assistant, or butler. Advancements in Apple’sSiri, Facebook’s M, Microsoft’s Cortana, and Google’s deeplearning products will leverage personal data, purchase behavior,and mobile usage data to offer predictions, suggestions andtimely notifications to help streamline our busy lives.

Messaging platform apps, such as Facebook Messenger, will becompeting directly with smartphone-native A.I. platforms like Siri,as those chat environments lend themselves to warmer and morepersonal communication. Chatting with your A.I. assistant will feellike having a conversation with a friend.

The Rise of the RobotsA big theme for CES is the ‘automated life’. Much of this has

centered on the connected home and the Internet of Things, but

this year the big movement in automation is in robotics. There

have been more robots on display at CES than ever before.

There was much hype about Segway’s partnership with Intel to

create a hoverboard butler. The device is a personal transporter

with a built-in interactive robot, which among other things can

stream video and respond to voice commands. Double Robotics

has brought out a new version of its telepresence robot – an

iPad on a stick which moves around and live streams. In effect,

it becomes your eyes and ears on the world around you without

you having to go anywhere.

For brands, the movement in automated life technology is about

helping consumers to have seamless experiences and to be

efficient in their daily lives. Automation is also hugely beneficial

to brands as the industry develops ever more effective

programmatic marketing solutions.

Virtual Reality Gets More Movement

Virtual reality (VR) is looking to take off in 2016 - and in a very real-worldway. Samsung Gear VR headsets sold out over the holidays and Oculusfinally opened pre-orders for its Rift headsets at the price of $599. Andwhile we have been impressed by the capabilities of all of these headsetsover the past year, we cannot help but wonder: What is next for VR?

Every next generation VR headset on display incorporated spatialmapping and hand tracking. Startup uSens, Inc. built in infrared camerasso users could see their hands and control elements within theexperience. South Korea’s brightest technology star, Samsung, integratedhand-motion controllers to add gesture controls. And Taiwan’s HTC isusing external cameras to help with spatial tracking. As remarkable asthese innovations are, the biggest player in VR is clearly Sony with itsPlayStation VR.

Sony has introduced a technology that it has donned ‘the Move motioncontroller’, a hybrid device that simulates hands in the VR world andallows users to interact with virtual objects or fire weapons in games.What’s really helping it lead the VR field is its numbers: It has sold nearly36 million PS4 consoles for $349 globally — and every single one iscapable of running PlayStation VR. Sony’s VR headset is predicted to sell1.9 million units in 2016. Game on, Sony. Game on.

VR Shopping Experiences to Redefine Path-to-Purchase

Retailers welcome any new capability that creates a moreintuitive shopping experience, eliminates barriers toabandonment and reduces the length of the path-to-purchase.

While VR shopping experiences have been on display for yearsat CES, one in particular caught our eye this year. Modifaceenables users to see (on a tablet) different versions of makeupon their faces through virtual reality. Users can change theirmakeup with motions such as moving their eyebrows.

For the beauty industry (makeup, hair, etc), these types ofinnovations can be game changing. Consumers can not onlyvirtually test products, but they can also try things withoutmakeup artist assistance. With more confidence, consumers willbe empowered during the shopping experience, and obstaclesto purchase can be eliminated while returns are maximized.

360 Video Cameras: The Future of User Generated Content

Nikon and Kodak announced that they are introducing theindustry’s first all-in-one portable solutions for 360 videocapture. This is a welcome development for early adoptersto the format, as the very early days of 360 video capturerequired the use of multiple DSLRs or action cameras. Forinstance, Nikon’s Project Helix demo photo booth featured96 Nikon D750 DSLR cameras to create killer 360 degreecaptures, drawing users into a helix.

And now, the Nikon KeyMission360 can capture 360pictures and video in 4K with its two lenses. It is alsoshockproof and waterproof. Kodak’s PIXPRO SP360records in HD with its single spherical lens and can becontrolled remotely through an iOS or Android device.

Consumer interest and demand for 360 videos is surgingas VR hardware, such as Oculus Rift, is introduced to themarket, and familiar websites like YouTube and Facebookinclude the ability to upload native, 360 content. The actioncamera market is very healthy, with nearly 10 million actioncameras shipped globally in 2015.

Realistic 3D Avatars & Potential Future ApplicationsOne of the most buzzworthy innovations at this year’s CES iswildly realistic 3D avatars. Intel’s integration of UraniomVRsoftware and its real sense technology enables show-goers touse an HP tablet with 3D Intel cameras to map out a full meshof their head and shoulders. Uraniom’s software then creates a3D image uploaded to the cloud, which can be integrated intothe game Fallout 4. The impressive graphic quality means youravatar has an insanely uncanny resemblance to yourself,enabling you to be totally immersed in Fallout.

These realistic avatars have potential applications far beyondgaming. We can imagine a future where consumers canintegrate their close-to-perfect 3D avatars into online shoppingexperiences (or any online experience). For instance,shoppers could use their avatars on apparel sites to try onclothes and find the perfect products for their shapes. Whilethis tech is just for fun right now, it could eventuallyrevolutionize online shopping.

Uraniom Avatar

This Year’s TV Buzzword: HDR

Every CES, a new TV technology is announced to drum upexcitement and encourage users to upgrade. Sometimes theseannouncements are truly groundbreaking and set new industrystandards: HD, OLED and 4K are great examples. Other years,new features fail to gain consumer traction (3D TV), or have littlepractical utility (curved screens).

The TV technology buzzword of 2016 is HDR, or high dynamicrange (consumers may be already be familiar with the term fromsmartphone camera settings). Samsung and LG introduced newTVs with the standard and claim that HDR-enabled screens canshow millions more colors and several more shades of brightnessbetween black and white than normal displays. Moving forward,4K TV sets will need to meet HDR standards to qualify as “UltraHD Premium”. Sony, Panasonic, HiSense, TCL and Sharp haveannounced forthcoming TVs that will qualify for the badge.

The improvement in image quality is undeniable, but HDR feelslike an incremental, rather than revolutionary step, as theconsumers wait for more widespread availability of 4K content.

LG Introduces Roll-Up Screen Technology

LG introduced an absolutely stunning advancement in the fieldof display tech by introducing flexible screen technology.Foldable/Rollable screen technology has been talked about foryears now, but this is the first time that a brand has showcasedan actual prototype on the show floor of CES.

The screen has full HD resolution and can be rolled-up, folded,or scrunched up like a piece of paper. The current prototype isrelatively modest in size at just under 19”, but LG’s intention isto continue to develop the tech to current TV size dimensions.The tech is intended for digital signage (such as in a shop orfor DOOH), but will also give interior design-mindedconsumers an alternative to having to sacrifice a wall or cornerof a room for a large footprint screen.

The technology is still in its infancy and is years away frombeing fully developed. It is such a radical departure fromcurrent technology that is has the potential to reshape thedynamics of our entertainment rooms, in a way that is moreprofound than the transition from Cathode Ray to flat panel.

Health Tech Shows What Data Humanization Can Achieve

ZenithOptimedia’s theme for CES 2016 is Humanizing Data and this

has been evident throughout the show, notably in the huge growth in

health and medical technology. All of these new gadgets – including

wearables and health monitors – are based on the smart use of data

to enable consumers to keep track of their health and fitness.

There were many new devices on display this year, but here a few

interesting ones. Huawei’s Honor Band Z1 helps you track your

fitness, performing tasks such as counting your steps and keeping a

record of how you sleep. The DietSensor is an app-based product

that allows you to assess the nutritional value of food. And the Levl

tells you how much fat you are burning, just by analyzing your

breath.

A great example of how data and technology can combine to provide

a fascinating vision of the future is Genworth R70i. This exoskeleton

suit offers an emulated experience of the effects of aging, simulating

physical effects such as hearing impairments, mobility challenges,

vision disorders, muscle loss and arthritis. This is surely the

embodiment of humanizing data.

Media Owner Mindmeld

Thursday evening, ZenithOptimedia held a panel on HumanizingData, hosted by Michael Kahn, CEO, Performics Worldwide. Hewas joined by Linda Yaccarino, Chairman, Advertising Sales andClient Partnerships at NBCUniversal, Mark Thompson, Presidentand CEO of The New York Times, and Ben Lerer, Co-Founderand CEO of Thrillist.

To start, Michael Kahn posed the question: how shouldadvertisers and content publishers balance creativity and datascience to create and optimize experiences?

Mark stated that while advertising started out as being 100% art,it has now shifted to a balance between art and science. Datascience can help you create great content. The key is to have theright premium content and then use the data to set it on fire,according to Linda.

How you use data is something that came up throughout thepanel. Ben called out that you have to be careful how much youlet data influence you, as there can be false positives and itshould not drive every decision you make.

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