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2015 INTERNATIONAL CESPOSITION YOUR BRAND FOR THE FUTURE

Straight from the 2015 International Consumer Electronics Show (CES) in Vegas, 360i is bringing you the essential takeaways from this year’s event. On the showroom floor marketers saw first-hand the dawn of the Connected Age, a new era of marketing powered by more accessible, affordable and applicable consumer technology innovations that are changing consumer behavior and transforming brand marketing. In the upcoming year, marketers can expect to see broad adoption of more affordable technologies that are inspiring consumers’ lives and lifestyles by offering seamless integration between the digital and physical worlds. The resulting evolution of consumer behavior will require brands across every category to be more digitally-centric in how they develop their marketing and brand experiences.

From connected homes to virtual reality, the following report provides an overview of the top trends and technologies from this year’s CES to help marketers position their brands for the future.

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This year we saw CES continue to rise in prominence for brand marketers. While the event has been happening for decades, in the show’s 48th year, brand marketers descended upon CES to discover that the future of technology is now within reach. CES 2015 was a pivotal year for marketers as advances in consumer technology demonstrated it’s no longer novel or optional to be a technology-agnostic brand. Consumers not only want to attain the convenience and value of a connected lifestyle, but it’s now within

their reach and realm of expectation. While many of the technologies seen this year were similar to what we’ve seen in the past, what’s most imperative is that these technologies are becoming more affordable and accessible for consumers. Wearables, smart cars, 3D printers and drone technologies have more attainable price points, and this has important implications for marketers.

2015 is the year low-cost, data-rich sensors will impact every brand marketing category. The introduction of smartphones first showed us consumers form meaningful and deeply personal connections with technology by changing the way we live, work and plan. Now, sensors give us an opportunity to capitalize on the “Internet of Things” and forge seamless connections to anything and everything in our lives. Companies like Uber and Seamless first sparked a revolution by giving

consumers instant gratification, which raised the bar for brands. With new and sophisticated sensor technologies, we can expect a fundamental shift in consumers’ expectations and behaviors, and this demands change for brands. Whether it’s 3D printing a replacement part, knowing what a store location has in stock before leaving the house or paying with a mobile device, consumer behavior is changing and brands must follow.

WHY CES?

SENSORS WILL DRIVE THE MOST RELEVANT SPACES FOR INNOVATIVE BRANDS

THE 2015 CES HOT LIST

The following pages outline the seven most relevant CES trends and spaces for innovative brands.

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Belkin WeMoWeMo is a family of dozens of simple, innovative and customizable home automation products that allow you to control home electronics and monitor cost and usage from anywhere, using a smartphone or tablet. Products include Wi-Fi enabled light switches, a slow cooker, a net cam and more.

Parrot PotThis second generation pot from Parrot’s plant sensors line provides up to one month of smart, autonomous irrigation that can be customized for 8,000 different plants. The ability to use sensors to monitor plants and receive alerts automatically has potential and implications beyond supporting green-thumbed consumers.

CONNECTED HOMECategories Impacted: Automotive, Consumer Packaged Goods, Media/Entertainment, Retail

The Connected Home represents a micro “Internet of Things” trend consisting of home appliances and accessories that are connected to achieve efficiencies and automation. According to NextMarket Insights, there are currently 1.48 million U.S. households with smart home systems, and this number is expected to grow to 15.03 million by 2020, while a Lowe’s study found that 70% of Americans want to control something via their mobile devices at home without leaving bed. The introduction of Google’s Nest and the growth of smart light bulbs and smart door locks is just the beginning. Wireless devices can now monitor and adjust a home’s temperature, lighting, beds, sprinklers and more. At CES, we saw major tech players innovating in this space. In addition, companies like Samsung, Intel and Belkin are working together to establish a standardized platform for in-home device communication that will allow for connectivity between different technologies and systems.

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Parrot RNB6To be released later this year, the Parrot RNB6 device is an “infotainment system” that can turn any car into a connected smart car though a simple dashboard installation that runs Apple’s CarPlay and Android Auto. The device can control radio and temperature, and offers onscreen driving profiles and diagnostics. It also boasts safety features like voice recognition, and can record front-facing HD video using an in-car camera.

NvidiaNvidia surprised CES 2015 attendees by demonstrating its commitment to auto innovation. Best known for desktop computing, the company’s offerings now include powerful motor technology that is changing the way cars “think” and drive. This includes displays built within mirrors, high-resolution dashboards, improved navigation systems and hazard detection.

CONNECTED CARSCategories Impacted: Travel, Automotive, QSRs, Media/Entertainment, Retail

The second largest trend at CES this year was the growth of connected cars — another key segment of the “Internet of Things.” According to a study by Harvard Health Watch, the average American spends over 100 minutes per day driving, or more than 600 hours per year. While automotive digital technology has traditionally focused on optimizing a vehicle’s internal functions and connectivity, attention is now turning to developing a car’s ability to connect with the outside world and further enhance the in-car experience.

Connected Cars can optimize their own operation and maintenance, as well as the convenience and comfort of passengers, using onboard sensors and Internet connectivity. They also give users the ability to extend their vehicles’ connection beyond personal devices to a variety of other resources, including the connected home. A consumer’s smart locks will lock down the house when there are no cars in the driveway, and their thermostat will adjust to the perfect temperature when they walk in the door from work, because their car indicated they were leaving the office. In addition, kids’ media and entertainment will seamlessly shift from an in-home TV to in-car infotainment systems.

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WEARABLESCategories Impacted: Automotive, Consumer Packaged Goods, Media/Entertainment, Retail

While we first saw wearables hit the mainstream in 2014, this year at CES there was a dramatic increase in their features and power, along with thoughtful design that is being led by product and fashion designers alike. Because wearables are getting more powerful and less costly, they are poised to grow considerably in the coming year. In fact, research firm Canalys forecasts that annual smartwatch shipments worldwide will soar from 8 million in 2014 to 45 million by 2017. At CES, wearables ranged from smart garments that track health and workout data, to wireless headphones that are voice controlled. Brands like Under Armour and Nike – traditionally known for physical, analog products – are entering the connected space at a staggering rate; It’s a growing pie of which everyone wants a piece.

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Garmin VivoactiveThis multi-use fitness tracker can track running, cycling, swimming and golf performance, in addition to everyday activity. For under $300, the health-focused watch features a beautiful color display that is sunlight readable and has touch capabilities. The Vivoactive also includes a Bluetooth 4.0 LE radio that can receive notifications from Android and iPhone. The company says the device will run third-party apps made for its custom software and found in the company’s Connect IQ store.

Withings Activité PopWithings Activité Pop subtly integrates gorgeous watch designs with fitness, sleep tracking and the ability to pair data with the Withings HealthMate app. Considered to be one of the best-designed activity trackers and smart watches to hit the market, the latest version is available for just $150.

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MOBILE PAYMENT TECHNOLOGYCategories Impacted: Travel, Automotive, Consumer Packaged Goods, Media/Entertainment, Retail, QSRs

With Apple’s September Apple Pay announcement, excitement continues to grow around new forms of mobile payments, which Deloitte predicted in its annual TMT predictions report will take off in 2015. At CES this year, we saw innovations in the space that bridge the gap between current credit card models and mobile payment systems that could signal major advances in consumer adoption. Retailers, banks and other companies are increasingly accepting new payment technologies, as mobile payment leaders work to develop new modes of standardization and security that will provide consumers more confidence and peace of mind.

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LoopPayLoopPay is a mobile payment solution that works with existing magnetic stripe readers (vs. NFC powered competitors like ApplePay that aren’t directly compatible), making it adaptable to commonly used credit card readers. It works by loading credit card information into an accessory such as a key fob, card or phone case that can be swiped for payment. In addition, they are working on enhancing the technology so that it can be embedded directly into a phone.

Hypr-3This biometric phone wallet app is powered by a 3.2 mm Bluetooth sticker and API designed to secure credit cards and bitcoin with biometric access to a digital wallet. By sticking it on a phone or keychain, consumers can leave their wallets at home and help eliminate fraud at the same time. Currently available for pre-order, the $20 device integrates with phone software to offer significantly stronger authentication, making unauthorized transactions nearly impossible.

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VIRTUAL REALITYCategories Impacted: Travel, Automotive, Media/Entertainment, Retail

Following Facebook’s $2 billion purchase of category pioneer Oculus Rift, virtual reality has become a mainstream fascination for consumers and marketers alike. Virtual reality has the potential to take off in 2015 thanks to more accessible, low-cost versions of the technology that leverage existing mobile technology and accessories.

Virtual reality can create digital experiences that are richer and more immersive than ever before possible. Brands in categories like media and entertainment will flock to virtual reality, and less expected verticals like healthcare and education will also find new and exciting ways to deliver value to consumers through use of this technology.

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Virtuix OmniThis full-body virtual reality experience pairs headset technologies like Oculus Rift with a unique treadmill that fixes users within a support ring. Users’ feet glide across a low-friction surface that allows them to replicate walking and running for a 360-degree experience inside a virtual world. The new technology has massive potential to make gaming more active and to make virtual experiences more immersive, creating exciting new opportunities for brands.

Samsung Gear VRThe technology and smartphone giant has introduced a virtual reality headset that uses the brand’s Galaxy Note 4 phablet as the goggle screen, to create an affordable, wire-free virtual reality experience that has been reported to be “impressive and immersive.” For less than $200, Samsung is offering a sophisticated headset powered by its phone technology that includes a proximity sensor, accelerometer, gyrometer and compass to create a life-like experience. Consumer uses might include watching movies or playing games in flight, or keeping kids occupied during a long trip. And already, it is attracting brands like AMC’s Walking Dead for promotional use.

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3D PRINTINGCategories Impacted: Travel, Automotive, Consumer Packaged Goods, Media/Entertainment, Retail, QSRs

The 3D printing market has expanded significantly, with a focus on the quality and variety of materials that can be printed, which now includes metal, wood, limestone and even food. In addition, desktop manufacturing is finally getting into the hands of everyday consumers – beyond the homes and offices of evangelical technophiles. It won’t be long until we see progressive brands opening their treasure trove of models and parts for consumers to print replacement parts and develop new and innovative add-ons for products. At first it may sound like a hit to companies’ bottom lines, but such an advancement adds to a less tangible metric: consumer love. It behooves any brand to tap into the passion fans have around a product, and brings them closer to the products and services sold to them.

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MakerBotIn a big step forward for 3D printing capabilities, MakerBot has introduced new PLA-based filament that includes composites of metal, stone and wood. The composites retain characteristics of the materials they are derived from. For example, one material can be sanded, stained or finished like regular wood, and another forms metal composites that can be magnetized. Now consumers can print tools that not only look realistic, but that also perform certain functions to imitate or replace manufactured items. At CES, MakerBot showcased a 3D-printed hammer and disclosed it is testing a mobile remote monitoring feature that will make the printing process easier and more efficient.

3D SystemsThe category veteran has a mission to get 3D printers into more American homes, and this year it showcased “the home of now” by highlighting the ways food, fashion and fun can all be 3D-printed. At CES, 3D Systems debuted the Ekocycle, a printer created in partnership with Coca-Cola and will.i.am that uses post-consumer recycled plastic filament, and the CocoJet, a chocolate printer created in partnership with Hershey’s. In addition, the company spotlighted the new Touch Haptic 3D Stylus and OpenHaptics SDK system, which works with Oculus Rift to create a virtual sculpting software tool for 3D modeling.

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DRONES AND ROBOTSCategories Impacted: Travel, Automotive, Consumer Packaged Goods, Media/Entertainment, Retail, QSRs

After first making a splash at SXSW in 2014, smaller, more automated and use-case specific drones and robots were popular areas of interest at CES this year. From drones that specialize in taking selfies, to practical robots that help shoppers navigate big box retailers, there was no shortage of technology showcasing how drones and robots can serve brands in the future.

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DJI Phantom InspireDJI introduced the Inspire, its most high-tech drone to date. The Inspire features amazing flight control, 4k video recording and super smooth camera stabilization. Now, nearly any event can be covered by extremely high-quality and compelling video footage. We’re seeing music festivals, sports and branded events already adopt the technology, and we’ll see even more do so in 2015.

Lowe’s Innovation Labs OSHbotsLowe’s Innovation Labs is creating innovative technology solutions that deliver new experiences for consumers. The home improvement retailer’s OSHbots are designed to identify and locate merchandise for consumers, speak to them in multiple languages and deliver location-specific promotions. The company is already working on new innovations for the droid, including using its depth-sensing camera to recognize objects (e.g., a damaged lug nut) and point a consumer in the direction of a match or replacement.

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In 2015, CES revealed there are more opportunities than ever before to connect with consumers in innovative, compelling and disruptive ways. Now more than ever, it is important for marketers to embrace new technology by working in partnership with strategists, innovators and technologists to experiment with the latest technologies. By embracing how advances in consumer technology will change consumer expectations and behaviors, any brand can succeed in the Connected Age.

WELCOME TO THE CONNECTED AGE

360i is an award-winning agency that drives results for Fortune 500 marketers by making brands culturally relevant amid the rapid pace of consumer behavior change. 360i is a highly strategic creative and media partner for clients that brings together digital specialization – in insights, strategy, social, influencer marketing, search, analytics and media – with a deep understanding of how people discover brands and share stories across all channels. This past year 360i was consecutively named the top digital agency according to Advertising Age, Adweek and MediaPost, in addition to being recognized among the industry’s most innovative companies by Fast Company and Creativity. The agency’s clients include Coca-Cola, Mondelez, Toyota and HBO. For more information, visit blog.360i.com or follow us on Twitter @360i.

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