OUT FRONT IN A MOBILE CULTURE

DIGITAL TRENDS

2015

H2 Central – April 2015

TABLE OF CONTENTS Executive Summary 1

Recognizing a Massive Cultural Shift 1

Contending with Monumental Transition 1

How We Approached the Assignment 2

How Our Findings Were Chosen & Organized 2

What is Our Real Insight? 3

The Trends: Observations & Supporting Sources 4

The Trends: Implications & Considerations 15

Other Trends Worth Monitoring 17

Thriving in the Midst of Unprecedented Change 19

Consulted Sources 20

Closing Notes & Contact Information 20

DIGITAL TRENDS

2015

EXECUTIVE SUMMARYThis white paper identifies 10 compelling trends in digital communications and argues that cumulatively they reflect an extraordinary transition to a mobile information culture that is more than the sum of its parts. Our conclusion is drawn from a detailed bottom-up examination of a broad array of individual developments and subsequent analysis, using credible secondary sources in late 2014 and early 2015. H2 Central believes this white paper offers materially useful observations about media consumption habits and behaviours that should inform decision-making and action. It was specifically written to share strategic insights that support effective relationships with key target audiences in a rapidly changing future that is already influencing current reality.

RECOGNIZING A MASSIVE CULTURAL SHIFTIt may envelop us but its full immensity and meaning may still be invisible: virtually the entire planet is increasingly immersed in and is embracing a portable digital communications culture.

So pervasive is the trend to a mobile electronic information environment that its actual and projected reach can only be tracked in many multiple billions – whether measured in discrete technology units or sales dollars.

The adoption curve (real and forecast) to an all-encompassing global digital environment is so steep and dominant, it must be a key strategic consideration for every organization that plans to thrive in the future – let alone remain viable.

The cumulative impact from the uptake of individual mobile technologies is far more than the sum of their separate successes and overall maturation: it is the defining reflection of a shared worldwide shift.

CONTENDING WITH MONUMENTAL TRANSITIONIn late 2014, working from a broad array of credible secondary sources available freely online, H2 Central began to explore the implications of this dominant pattern. Our professional challenge – as a marketing and communications agency focused on servicing knowledge-based businesses and organizations – was to understand how it affects our clients, their operations and audiences. We needed to comprehend the significance of this pivotal transition to properly advise and guide them through it.

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DIGITAL TRENDS

2015

HOW WE APPROACHED THE ASSIGNMENTA proper PEST analysis (Political, Economic/Environment, Social, Technological) must begin with an honest, unbiased and non-judgmental review of the available evidence. That evidence must be chosen with a keen eye and a wariness about stated claims that may be merely self-serving (e.g., announcements intended to create momentum for projected, or purported, sales forecasts).

We therefore started this inquiry with no preconceived notions or particular agenda other than to provide our clients (and ourselves) with an accurate and meaningful update of rapidly changing digital media. That is, we took a bottom-up approach to gathering the facts. And we allowed the various accounts from business and technology media, consulting organizations, trend watchers, think tanks, news releases and authoritative digital marketing leaders to inform our observations and guide our conclusions. A list of the many sources we drew on to develop our thinking and the outcome of that thinking is at the end of this white paper; they consist of third-party observers rather than companies with a vested interest in promoting their products.

We also decided the best way to initially share our findings was through a user-friendly, graphically engaging “Top 10” list. This format was the most efficient way to quickly hone in on and convey the specific digital developments we regard as worthy of attention. An infographic version has since followed (and is available from our website, H2central.ca); it has allowed us to share our ideas with a broader audience. This white paper adds substance to the top-level observations and enables us to impart what we learned through the research process and what substantiates our conclusions.

HOW OUR FINDINGS WERE CHOSEN & ORGANIZEDIn the “stripped-down” but graphically powerful premium and infographic versions of Digital Trends 2015, it was impossible to share the research and factual basis that supports our observations. In this white paper it is not only possible, but necessary. What follows further on are elaborations on each trend and the specific sources we referred to in articulating our conclusions.

For consistency, we present the trends in the same order they appear in these other two vehicles. However, they are not intentionally listed on an absolutely ordinal (first, second, third, etc.) basis with the exception of the first (Info on the Run – Mobility Rules), which emerged from our discovery and examination of the others.

To a significant degree, many of the trends intersect and there are synergistic relationships between two or more – buttressing our conclusions about an enveloping mobile culture. For example, hand-held devices are the “hub” for receiving mobile advertising, a growing means of accessing social media, for interacting with the Internet of Things and for mobile payments. Observations about the burgeoning use of mobile communications and

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DIGITAL TRENDS

2015

purchases of smartphones and tablets therefore logically appear earlier in the list than the rise of wearable technology, a specialized application of mobile technology that is still growing towards a mainstream footing.

Any list that strives to depict evolving macro change is prone to certain vulnerabilities. For example, the data may be suspect and/or change so dramatically while conclusions are being framed that they no longer have validity. As previously stated, we have been vigilant to select from what we believe are reliable sources without an overt conflict of interest and have identified trends that we are confident will have a longer shelf life. In fact, these were factors for inclusion; coverage collected since this project began reaffirms that our choice of trends is sound.

At the end of this exercise, we aim to provide our clients and ourselves with a genuine contribution to a joint search for creative solutions to their marketing and communications needs. That pragmatic outlook provided useful discipline in the selection of the trends and in our interpretation of their implications.

WHAT IS OUR REAL INSIGHT?Those who closely monitor digital advances with a discerning eye might ask what novel insight we are seeking to offer – after all, scarcely a day goes by without an announcement of some new media/technology innovations or a “Top X” list of them. What should we pay attention to beyond that stream of news?

From our perspective as an organization navigating the constant flow, there is genuine value in stepping back from the overwhelming mass of detail and examining it with a higher level of understanding. An unrelated self-generated project by H2 Central examining Canada’s financial landscape proves the case.

In 2014, we produced a well-respected depiction of the complex financial sector that empowered even securities regulatory officials and seasoned financial professionals to view it with fresh understanding. That execution (since updated) did not explicitly determine the approach taken to reviewing digital trends. It does, however, demonstrate the very real value of zooming out to get a view of the full horizon, to contemplate what is beyond that vantage point and to ponder its deeper importance.

This “see-it-from-a-mountaintop” outlook ultimately led to the realization that individual changes discovered via bottom-up investigation add up to something much larger. They are, we argue, a self-reinforcing catalyst resulting in a definitive change in human communication and behaviour, in information consumption, and therefore in culture. That this is occurring not merely on a national or international scale but on a global scale – regardless of disparities in local jurisdictions – means that it has effectively attained a level of universality which can only impel further acceptance, reliance and growth. That is, it has become a virtuous cycle.

THE TRENDS OBSERVATIONS & SUPPORTING SOURCES

The following is a detailed examination of the chosen trends and the data and online documents that informed our account of them. They do not represent the entire sum of evidence for any particular trend but do capture the best statements about them and served as the key source material for the premium.

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INFORMATION ON THE RUN: MOBILITY RULES & DEFINES A GLOBAL CULTURE

DIGITAL TRENDS

2015

OUR OBSERVATIONAll lines are converging towards a mobile information and communications future. Mobile Internet access has reached a critical mass of billions of users and is growing. This is a meta-trend that drives all others, effectively establishing a portable digital communications culture.

SUPPORTING FACTS & STATS• 3.649 billion mobile users and 1.685 billion active mobile social accounts as of January 2015

(landing page). Mobile’s share of web traffic: 33.4% (slide 20 of embedded presentation). Digital, Social & Mobile in 2015. We are Social, Simon Kemp. January 21, 2015

• “77% of participants in our survey considered mobility among their top five priorities for the coming year, and 43% said the technology was in the top two.” Based on a survey of almost 1,500 C-level executives at companies in 14 countries around the world (p.6). Mobility: Fueling the Digital Surge, Accenture Mobility Insights Report, February 2014

• Share of web traffic by device (January 2015). Share of web page views: laptops & desktops: 62% (year-on-year: -13%). Share of web page views: mobile phones: 31% (year-on-year: +39%). Share of web page views: tablets: 7% (year-on-year: +17%). Share of web page views: other devices, e.g., game consoles: 0.1% (year-on-year: +18%). Digital, Social & Mobile in 2015, TNW, January 21, 2015

• “…Americans now spend more [time] looking at their smartphones than…watching television: 177 minutes per day for the phone compared to 168 minutes for the TV. Worldwide, 3 billion people access the Internet from mobile devices, and growth in mobile access will come largely from countries without a wired infrastructure. …they’ll be getting online for the first time via a smartphone or tablet. In three short years, half the world’s population will have regular access to the Web, the vast majority…using inexpensive mobile phones and mobile broadband. …in the U.S., 40% of cell phone owners use their device to access a social networking site; 28%...every day. The number who use only a mobile device for social networking is also rising, and there are parts of the world – China notable among them – where the numbers are considerably higher.” Tech Talk: 15 Predictions for 2015, Communication World (CW) Magazine, IABC, Shel Holtz, Dec. 1, 2014

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SMARTPHONES & TABLETS: GROWTH & DOMINANCE HERE, NOW, TOMORROW

DIGITAL TRENDS

2015

OUR OBSERVATIONSmartphones are continuing along a trajectory of stratospheric growth and together with tablets will be the dominant forms of digital connection: they’re reshaping how we stay informed and reinforcing our mobile communication and information culture.

SUPPORTING FACTS & STATS• “…the global market of smartphones is expected to grow at a compounded annual growth

rate (CAGR) of 18.4% in the next few years and will be close to 1.7 billion units by 2017, the total shipment of smart connected devices will be over 2.2 [sic] units and the total income will reach an astonishing number, 814.3 billion dollars.” IDG Announced 2014-2015 “Global Smartphone Top 10” and “Global Smart Connected Devices Top 10,” PR Newswire, Jan. 9, 2015

• “According to Forbes, ‘87% of connected devices sales by 2017 will be tablets and smartphones.’ Due to the widespread use of smartphones and tablets, it’s necessary for companies to create an alternate mobile version of their website or utilize responsive web design.” 15 Marketing and Technology Trends For 2015, Canada Business Review, December, 24, 2014

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ADVERTISING: THE OUTLOOK IS DIGITAL & MOBILE

DIGITAL TRENDS

2015

OUR OBSERVATIONInternet advertising is on course to dominate as the key conduit for reaching audiences with a paid commercial message, and mobile has steep upward momentum. Traditional media continue to pursue innovative alternatives, creating a complex and highly competitive marketing landscape.

SUPPORTING FACTS & STATS• “Expenditures for digital advertising will grow in 2015, as brands, ad agencies and publishers

invest in ways to deliver more-relevant advertising to people.” Gartner Survey Reveals Digital Marketing Budgets Will Increase by 8 Percent in 2015, News Release, Gartner, Inc., November 3, 2014

• “Internet advertising revenues are expected to hit it big in Canada by 2018, while mobile advertising is growing at a particularly rapid rate, with an expected compound annual growth rate (CAGR) of 21.8 percent. Print continues its deathly spiral, as it will fall from $1.6 billion in 2014 to $1.2 billion in 2018, representing a CAGR of -7.9 percent. The new data comes from PwC’s Global Entertainment and Media Outlook, which projects that spending from 2014-2018 in the entertainment and media market, advertising in Canada is at a ‘tipping point.’ By 2018, internet advertising spending will be well ahead of spending in other channels and will reflect an overall shift to digital amongst Canadian consumers.” The Future Looks Bright: Internet Advertising Revenues to Hit $7.2 Billion by 2018, Betakit (Canadian Startup News & Innovation), Joseph Czikk, June 4, 2014

• “New data from BI Intelligence finds that US mobile ad spend will top nearly $42 billion in 2018, rising by a five-year compound annual growth rate (CAGR) of 43% from 2013.” Mobile Advertising Is Exploding And Will Grow Much Faster Than All Other Digital Ad Categories, Business Insider, Mark Hoelzel, Dec. 21, 2014

• “…forecasts [predict] marketers will spend $4.3 billion on native advertising in 2015, a 34% increase from this year, according to eMarketer. That number is expected to reach $8.8 billion by 2018.” Native Ad Spending To Jump Despite Marketer Reservations, Ad Age, Michael Sebastian, November 21, 2014

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SOCIAL MEDIA: THE “CHANNEL CAPTAIN” IS STRONG BUT SLOWING – OTHER CONTENDERS HAVE GROWN

DIGITAL TRENDS

2015

OUR OBSERVATIONFacebook remains the dominant social media channel captain. Meanwhile, other major contenders have attracted new participants and have grown. As a whole, the highly competitive social media marketplace is characterized by a small cadre of big players and many aspiring niche alternatives.

SUPPORTING FACTS & STATS• Facebook continues to dominate the global social media landscape, claiming 1.366 billion

active users in January 2015. Crucially, 1.133 billion of the platform’s global users – 83% of the total – now access the service through mobile devices. Digital, Social & Mobile in 2015, We are Social, Simon Kemp, January 21, 2015

• January 2015: Global Active (Monthly) Users by Social Platform: Facebook – 1.366 billion. QZone (China) – 629 million. Google+ – 343 million. Instagram – 300 million. Twitter – 284 million. Tumblr – 230 million. Baidu Tieba (China) – 200 million. Sina Weibo (China) – 157 million. VKontakte (Russia) – 100 million. (slide 28) Digital, Social & Mobile in 2015, We are Social, Simon Kemp. January 21, 2015

• “In a new survey conducted in September 2014, the Pew Research Center finds that Facebook remains by far the most popular social media site. While its growth has slowed, the level of user engagement with the platform has increased. Other platforms like Twitter, Instagram, Pinterest and LinkedIn saw significant increases over the past year in the proportion of online adults who now use their sites. The results in this report are based on American adults who use the internet.” Social Media Update 2014, Pew Research Center – Internet, Science & Technology, Maeve Duggan, Nicole B. Ellison, Cliff Lampe, Amanda Lenhart and Mary Madden, January 9, 2015

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THE INTERNET OF THINGS: PROSPECTS ARE RISING FOR MORE CONNECTIONS

DIGITAL TRENDS

2015

OUR OBSERVATIONThe Internet of Things is slowly becoming a reality, connecting a myriad of household devices (typically to mobile devices) and creating a huge consumer benefit and an economic opportunity for companies providing useful connectivity.

SUPPORTING FACTS & STATS• “With a projected [by Cisco] 20 billion devices connected by 2018…” 15 Marketing and

Technology Trends For 2015, Canada Business Review, December 24, 2014

• “By 2022, the Internet of Things has been projected to be worth $500B in Canada.” Canadian Digital Media Trends by the Numbers – March 2014, CDMN, March 31, 2014

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CONTENT OVERLOAD INTENSIFIES: SUPER SMART CREATIVITY IS THE SOLUTION

DIGITAL TRENDS

2015

OUR OBSERVATION“Cutting through the clutter” has never be more important or challenging than it is now. Audiences are overwhelmed with solicitations, information and communication. Smart, innovative, memorable creativity that reaches people wherever they are is imperative.

SUPPORTING FACTS & STATS• Cumulatively, 60% of respondents said the amount of advertised/branded content they are

exposed to is too much (survey by eMarketer, June 2014) eMarketer – Key Digital Trends – 15 Things to Know for 2015, Noah Elkin, December 11, 2014 (slide 23)

• “Research from CMI/Marketing Profs and others shows that business content ‘production’ is going into hyper drive in 2015 and beyond. In fact, between now and 2020, the amount of information on the Internet is expected to increase by 500% (and some experts believe that number is conservative.” Beyond Content Shock: The defining trend of 2015 is Content Ignition, Grow, @MarkSchaefer, January 4, 2015

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WEARABLE TECHNOLOGY: SIGNS OF SUCCESS BUT STILL STRIVING TO GO MAINSTREAM

DIGITAL TRENDS

2015

OUR OBSERVATIONProponents and skeptics continue to debate if 2015 is the breakthrough year when niche products will mature into “must-have” mainstream offerings. Some projections show genuine potential, but while growth is anticipated, the path forward is still being pursued.

SUPPORTING FACTS & STATS• “Research company IDC Canada is predicting a 70 per cent year-over-year increase in

shipments of wearables products to 1.2 million by the end of 2015.” Tech trends for 2015: virtual reality, wearables, streaming video, The Record.com, January 03, 2015

• “Microsoft stunned audiences of Wednesday’s Windows 10 event by unveiling HoloLens, the company’s augmented-reality headset and platform. Not only is the tech incredibly cool, the timing couldn’t be better. Coming just a week after Google announced that it was going to hit the pause button on Google Glass so that it could better refine its message, HoloLens and Windows Holographic are proof that virtual and augmented computing isn’t a space being solely explored by Google and Facebook’s Oculus VR.” Microsoft HoloLens won’t be the next Google Glass, and that’s a good thing, Mashable, Christina Warren, January 22, 2015

• “Google is making big changes to its beleaguered Google Glass project. According to a new report from The Wall Street Journal, Google will no longer sell its current version of Google Glass through its Glass Explorer program after Jan. 19. Furthermore, Glass is moving out of the Google X research lab and into a standalone unit. The unit be run by Ivy Ross and will report to Nest’s Tony Fadell.” First version of Google Glass discontinued as Nest’s Tony Fadell takes over, Mashable, Christina Warren, January 15, 2015

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THE TECHNOLOGY LIFECYCLE TURNS: SOME FADE, OTHERS EMERGE

DIGITAL TRENDS

2015

OUR OBSERVATIONOn the “Endangered Technologies List”? QR codes have faded from many markets, while projections for the potential of near field communication (NFC) provide strong support that it is on the rise.

SUPPORTING FACTS & STATS• “And while small business owners and marketers thought they’d hit the jackpot, the QR

code trend didn’t become as popular with consumers as some had predicted. A 2013 survey found only 21% of American smartphone owners say they’ve ever scanned a QR code, and just 2% say they scan a QR code at least once per day.” Are QR Codes Dead?, Lindsay Kolowich, Hubspot, August 14, 2014

• 5 Things You Don’t Need to Worry About – #2: QR Codes. eMarketer – Key Digital Trends – 15 Things to Know for 2015, Noah Elkin, December 11, 2014 (slides 31 and 32)

• “Even their inventor has doubts about their shelf life. ‘To tell you the truth, it may last for 10 more years,’ says QR code inventor Masahiro Hara. Like the original barcode, Hara believes QR codes will eventually be replaced by better image recognition software.” Trends on Tuesday: Are QR Codes Still Relevant?, Treci Johnson, October 6, 2014, Digitalgov.gov

• “Transparency Market Research, a U.S. based market intelligence firm, has recently published a research report based on the global near field communications market. The report, titled ‘Near Field Communication (NFC) Market (By Products – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019’, states that the global near field communication market, which valued US$1.068 billion in 2012, is expected to acquire net worth of US$20.01 billion by 2018, growing at a very health [sic] CAGR of 43.7% during the forecast period.” Global Near Field Communication Market to be Worth US$20.01 billion by 2018: Transparency Market, Albany, NY, (GLOBE NEWSWIRE), October 21, 2014

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CYBERSECURITY & PRIVACY: BREACHES DRIVE INVESTMENT & CALLS FOR MORE PROTECTION

DIGITAL TRENDS

2015

OUR OBSERVATIONWith a growing list of serious, high-profile and embarrassing information security breaches as a backdrop, investments in protecting information and technology assets will accelerate. However, official privacy guardians have also called on governments for more safeguards.

SUPPORTING FACTS & STATS• “In 2015, companies will spend 46% more on their security technologies according to a

report by Computerworld. High profile security breaches, in addition to the increase in mobile technologies, have promoted security spending to the top of the IT priority list for 2015.” 15 Marketing and Technology Trends For 2015, Canada Business Review, December 24, 2014

• “Information and Privacy Ombudspersons and Commissioners from across the country are urging federal, provincial and territorial governments to review and modernize their information management practices. In a joint resolution, [they] said the digital era has brought both tremendous opportunities and new challenges for access and privacy rights. Governments…must show bold leadership now more than ever to ensure the continued relevance of access to information, while still vigilantly protecting the personal information of Canadians.” Canada’s access to information and privacy guardians urge governments to better protect and promote rights of Canadians in digital era, News Release, Office of the Privacy Commissioner of Canada, November 14, 2014

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MOBILE PAYMENT: YOUR CELL PHONE IS BECOMING YOUR WALLET

DIGITAL TRENDS

2015

OUR OBSERVATIONEven if it’s not yet fully mainstream, payment by mobile phone is expected to reach a tipping point in 2015 in Canada as more consumers get sufficiently comfortable with using their smartphones to more frequently make purchases in enabled stores.

SUPPORTING FACTS & STATS• “[Deloitte] estimates that, this year, about five per cent of the world’s 600 million equipped

smartphones will be used to make an in-store purchase at least once a month, a 1,000 per cent increase over 2014. By the end of the year, it expects one in 20 smartphone owners to have made a mobile payment with their phone.” Paying with a smartphone will be the biggest tech trend in 2015, Deloitte, The Record, January 13, 2015

• “1 in 20 smartphone users will have tapped their phone to pay by end of year.” Mobile payments ‘tipping point’ comes in 2015, Deloitte predicts, CBC News, January 13, 2015

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THE TRENDS IMPLICATIONS & CONSIDERATIONS

TREND IMPLICATIONS & CONSIDERATIONS H2 COMMENTS

1) Information on the Run: Mobility Rules & Defines a Global Culture

Cultural conventions have broad influence that become self-reinforcing and create social acceptance: communication must increasingly be mobile-friendly to reach desired target audiences or risk not reaching/losing them

Wherever an organization is on the mobile maturation curve (from early adopter or early majority to laggard), it must recognize that this is a meta-trend that will continue; H2 Central can support organizations at any stage evolve to satisfy their unique communications needs within this environment

2) Smartphones & Tablets: Growth & Dominance Here, Now, Tomorrow

The technology platforms through which communication is received have a major impact on how the information must be presented, where a target audience will experience it and how it will be absorbed – or ignored

Savvy organizations must ensure that all communication goes through a “scrub” for its suitability to different technology platforms and to optimize that content so that it can take advantage of those platforms

3) Advertising: The Outlook is Digital & Mobile

Rising demand for online advertising may result in scarcity of preferred placement options for certain media vehicles; mobile advertising, similar to out-of-home advertising, must be able to compete effectively with multiple moving distractions to reach its audiences

Even as mobile advertising grows, some organizations may be better served by running campaigns in traditional vehicles (e.g., well-established trade publications); regardless of trend lines, H2 Central will always advise clients to be strategic in choosing ad media

4) Social Media: The “Channel Captain” is Strong but Slowing – Other Contenders Have Grown

As the social medium most closely aligned with news sharing, Twitter should have a brevity advantage when it comes to mobile devices; however, the successful adaption of Facebook and LinkedIn to mobile demonstrates resilience

H2 believes strategy must drive which social media channels are used and not their friendliness to mobile technologies: for certain organizations, LinkedIn alone may be the best conduit for reaching a target audience

5) The Internet of Things: Prospects are Rising for More Connections

The mobile device is being rapidly transformed from a single-focus communications vehicle to become a practical all-in-one implement with multiple uses and benefits, increasing its usage

The Internet of Things reinforces the mobile device as a central tool for managing one’s affairs: it supports a cultural attachment to mobile and digital vehicles by providing additional utility

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THE TRENDS IMPLICATIONS & CONSIDERATIONSTREND IMPLICATIONS & CONSIDERATIONS H2 COMMENTS

6) Content Overload Intensifies: Super Smart Creativity is the Solution

A long-recognized challenge for marketers, content overload has tipped over the top with the rise of mobile devices; however, as much as excessive volume may present a barrier, there is still an obvious appetite for good quality, well-targeted content

H2 holds that creativity must always be properly applied to media type and audience to achieve intended results: competing for the attention of mobile users requires understanding the realities presented in this white paper

7) Wearable Technology: Signs of Success but Still Striving to Go Mainstream

Reconfigures mobile devices into multipurpose vehicles that may provide another conduit for consuming information, contribute to personal well-being, etc.; though the jury is out on whether wearable technology changes behaviours, this usage reinforces a digital and mobile culture that looks to technology for measurable benefits

While most products in the wearables category remain “niche” offerings, those that provide information on the run (e.g., multifunction watches) uptake, and usage by early adopters and those that follow them should be monitored to understand the potential benefits of this conduit from a marketing/business perspective

8) The Technology Lifecycle Turns: Some Fade, Others Emerge

Well-managed organizations with an eye to the future need to stay attuned to changing patterns of technology use and to adopt a strategic mindset that emphasizes tangible benefit over any other consideration in the choice to use or not use a particular technology; these benefits should be tracked and measured before technology is embraced or abandoned

H2 Central has, on occasion, used QR codes to link promotional messages to supporting information; however, we actively “upgrade” to newer digital technologies (e.g., Layar) where it makes sense and where it adds value, with a strong preference for those that support AODA (Accessibility for Ontarians with Disabilities Act) requirements

9) Cybersecurity & Privacy: Breaches Drive Investment & Calls for More Protection

Information technology breaches and embarrassing disclosures of private information now receive frequent disclosure in media reports with costly impact for the affected organizations in dollar and reputation terms; these vulnerabilities can be addressed but not entirely eliminated

Even well-prepared organizations can be subject to breaches that severely affect their good name; while technology enhancements are the first line of defence, an effective issues management communications plan is an absolute necessity to address contingencies of this nature

10) Mobile Payment: Your Cell Phone is Becoming Your Wallet

Payment by cell phone is on a projected growth curve even as Canadians have adopted to polymer bills; while it may not be a dominant exchange medium for all purchases in all venues, it is a trend to continue monitoring

Payment by cell phone can be seen as one element of a larger set of trends related to digital financial exchange that has included the development of Bitcoin as an increasingly accepted alternative currency

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OTHER TRENDS WORTH MONITORING

TREND IMPLICATIONS & CONSIDERATIONS H2 COMMENTS

Gamification Using design and motivational elements of games, which involve play, reward, gaining status and a sense of accomplishment to motivate behaviour and encourage learning, etc.

H2 has applied gamification concepts in digital assignments for its clients and understands how to apply its elements to achieve specific strategic goals related to participant education

Big Data The capture and analysis of very large data sets to identify patterns and draw conclusions that could not necessarily be reached by other (quantitative) research methods

H2 clients may find it valuable to identify an appropriate “big data” vendor who can supply relevant data sets and findings against their specific organizational and/or business needs

3D Printing A robotic process used to make 3D solid objects from a digital file: it is being experimented with to produce everything from handguns to exact models of human organs with the possibility of producing the real thing in the future; commercial 3D printing service is available in Toronto

For any organization that wants or needs to produce a unique 3D object (e.g., a custom marketing premium or an educational model that does not work as well in two dimensions), 3D printing provides a unique new opportunity to professionally produce prototypes and/or small quantities cost-effectively

E-reader (ebook, e-device)

The demise of e-readers was predicted in light of the growth of more sophisticated digital tablets, but they appear to have secured a niche and continue to be sold, bought and used: for example, it is now possible to borrow ebooks from the Toronto Public Library

The acceptance of ebooks – whichever technology platform is used to access them (many now use mobile phones) – continues. Ebooks allow H2 clients to publish independent (“indie”) books that enable them to share their expertise and influence with target audiences; we have already produced a book on investing in hard-copy and digital formats for one of our clients

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In researching our selected trends and in formulating the argument that they indicate something much bigger – a cultural shift – H2 Central also identified other digitally oriented developments that merit attention by our clients. Though this is at most a very partial list, it does provide food for thought, and the entries should be considered in future marketing and communications thinking and decision-making.

OTHER TRENDS WORTH MONITORINGTREND IMPLICATIONS & CONSIDERATIONS H2 COMMENTS

Streaming Services, Internet/Digital TV & Cable Cutting

Internet-based TV and movie streaming services are continuing to grow and to sieze an increasing number of viewers away from traditional cable services, which are also seeking to shift to this new marketplace preference for digital access: the change is also abetted by TV programs moving from networks to the Internet (e.g., Community)

Economic factors (i.e., cost savings), device preference (especially among millennials) and content preference (YouTube, made-for-Internet TV) are driving many cable service subscribers to abandon their former approach to accessing television; for H2 clients, using YouTube as a strategic communications vehicle should be considered

Connected Car Vehicles connected to the Internet and able to access data that may be useful to the driver (warning: crash ahead), that provides additional information and entertainment options for all occupants, and that may also provide performance information to the manufacturer: the connected car is further evidence of a portable digital culture

Major automobile manufacturers are increasingly providing an option for enhanced connectivity in specific models with one observer predicting that these capabilities will reach mass market status within five years; H2 clients may find themselves progressively connecting with their audiences when they are on the road

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THRIVING IN THE MIDST OF UNPRECEDENTED CHANGEChange is simultaneously the lifeblood and challenge of all organizations.

Without the ability to contend successfully with change, no organization can achieve its goals, however they are defined. The unprecedented cultural change we have identified in this white paper will continue to unfold because we live in a technology-dependent world in which information and communication have economic utility beyond measure. Making it mobile aligns with the need for instant access and desire for convenience.

Just as there is unlikely to be a pronounced resurgence in buggy whip production, so too there is unlikely to be a major reversal of the digital tools we now rely on for much of our daily professional and personal activities.

H2 Central will draw on the findings and conclusions of this white paper as a source of intelligence in counselling our clients on how to navigate this change as effectively as possible.

Some of these organizations are early adopters for whom we can provide next steps in line with their sophisticated application of mobile communications. Others are at an earlier stage of experimentation, cautiously moving forward as they learn how to engage with their audiences in new ways: for them, we can provide insights, strategy and tactical executions that fit budgets and emerging needs. No organization we work with is resistant to innovation and that bodes well for their future.

A mobile culture is at the centre of the worldwide marketing and communications operating environment. It is here to stay. H2 Central is the hub that can empower organizations to effectively maximize the opportunity it represents: to thrive, not merely to survive.

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DIGITAL TRENDS

2015

CONSULTED SOURCESAccenture

Advertising Age

Betakit

Business Insider

Canadian Business Review

CBC.ca/News

CDMN

CIO.com

ClickZ

CNBC.com

Communication World (CW)

Constant Contact

CTVNews.ca

DailyInfographic.com

Deloitte

DigitalGov.gov

eMarketer

FinancialPost.com

Forbes.com

Gartner Group

Globe and Mail

{grow}

Hubspot.com

IDG

IDTechEX

INC.com

InvestmentExecutive.com

Marketingland.com

Mashable

Matomy Media Group

Office of the Privacy Commissioner of Canada

Pew Research Center – Internet, Science, Technology

Smart Insights

Statista.com

The Guardian.com

The Record.com

The Telegraph

The Wall Street Journal

TNW

Transparency Market Research

Vancouver Sun

We Are Social

WIRED.com

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CLOSING NOTES & CONTACT INFORMATIONOut Front in a Mobile Culture – Digital Trends 2015 was created through original research conducted by H2 Central using credible secondary sources believed accurate and without conflict of interest.

All content © April 2015 H2 Central Integrated Marketing Boutique

H2 Central Integrated Marketing Boutique 36 Toronto Street, Suite 1160 416.862.2800

info@H2central.ca

H2central.ca