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2016 MARKETING THAT MOVES © 2016 MOXIE MARKETING SERVICES, LLC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL. Marketing will likely change more in the next 36 months than it has in the last 36 years. So what is going on? We are witnessing historical amounts of change and disruption. Technologies once relegated to the realm of science fiction are now part of our everyday lives. Hundreds of millions of people have shifted their behaviors in an astonishingly short period of time, and industries that for decades appeared unassailable have been upended in what feels like the blink of an eye. And the marketing industry is not impervious to this phenomenon. Emerging innovations are eroding traditional approaches to marketing while simultaneously opening up unprecedented opportunities for progressive marketers. Massive shifts are underway, and, like everyone else, we must evolve or become obsolete. But what exactly is driving all this change and — more importantly — how can we use this momentum to our advantage? In this report, we will explore these questions and identify the key areas of focus for 2016 and the actions that marketers can take to future-enable themselves today and tomorrow. FUTURE EXPERIENCES THE SHIFT TO MODERN MARKETING 2016 MARKETING THAT MOVES

Transcript of THE SHIFT TO MODERN MARKETING - Moxie | … for ad-free, subscription-based OTT (over-the-top)...

2016 MARKETING THAT MOVES© 2016 MOXIE MARKETING SERVICES, LLC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL.

Marketing will likely change more in the next 36 months

than it has in the last 36 years. So what is going on? We are

witnessing historical amounts of change and disruption.

Technologies once relegated to the realm of science fiction

are now part of our everyday lives. Hundreds of millions of

people have shifted their behaviors in an astonishingly short

period of time, and industries that for decades appeared

unassailable have been upended in what feels like the blink

of an eye. And the marketing industry is not impervious

to this phenomenon. Emerging innovations are eroding

traditional approaches to marketing while simultaneously

opening up unprecedented opportunities for progressive

marketers. Massive shifts are underway, and, like everyone

else, we must evolve or become obsolete. But what exactly

is driving all this change and — more importantly — how

can we use this momentum to our advantage? In this report,

we will explore these questions and identify the key areas

of focus for 2016 and the actions that marketers can take to

future-enable themselves today and tomorrow.

FUTUREEXPERIENCES

THE SHIFT TO

MODERN MARKETING2016 MARKE TING THAT MOVES

2016 MARKETING THAT MOVES© 2016 MOXIE MARKETING SERVICES, LLC. ALL RIGHTS RESERVED. PROPRIETARY AND CONFIDENTIAL.

LINEAR THINKING EXPONENTIAL

REALITYMost of us are hardwired to think linearly. For example,

we reflect on the past 15 years and then project an

equivalent amount of change onto the next 15. But

as a review of history shows — and Ray Kurzweil’s

“Law of Accelerating Returns” eloquently describes —

technological advances are exponential. This is why

so many people and businesses have been caught off

guard by the rate of disruption around them. This has

dramatically come to pass with the Fortune 500.

Since 2000, 52 percent of the most profitable U.S.

industrial corporations on this annual list have either

gone bankrupt, been acquired or simply ceased to exist.

This exponential reality is also why the next three years

will be even more astounding.

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Before we move onto the specific areas that modern

marketers should focus on in 2016, let’s explore a

few of the macro trends being fueled by exponential

technological advancement. Although by no means a

complete list, these three macro trends help illustrate the

extraordinary amount of change that lies just a few years

ahead of us.

1. UNLIMITED ENERGY

By directly applying the law of accelerating returns,

it is forecasted that solar energy alone could supply

the entire world’s energy needs in less than 13 years.

Imagine the implications if energy becomes virtually

unlimited and free. The cost of almost everything will

dramatically decrease and the already-growing global

middle-class will expand at an even more rapid rate. This

rising population in combination with ubiquitous global

connectivity will undoubtedly transform and accelerate

the digital marketplace in breathtaking ways.

THREE KEY MACRO TRENDS

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2. LONGEVITY

From the ability to 3D print human organs to the

transformative impact of DNA editing, medical sciences

are rapidly expanding human longevity. In fact, the

first human being to live to be 150 years old has likely

already been born. Expanded human lifespans will have

a profound impact on our political, economic and social

systems. They will also dramatically reframe how we think

about demographics and life stages and will reshape the

products and services that people need and desire.

3. MR. ROBOTO

The combined advances in robotics and artificial

intelligence (AI) have set the stage for the emergence of a

new cultural disruption. The “Future of Work” report from

the World Economic Forum estimates that over 5 million

jobs will be lost in less than 5 years as a result of these

technological advancements. Even more surprisingly,

75 percent of these jobs will be white-collar positions,

like medical diagnostics and financial planning. In

addition to dramatically affecting the future of work,

domestic robots and AI agents may alter the way we

shop. Imagine AI-enhanced robots that automatically buy

the things we need before we need them and at the best

possible price. By freeing up time and saving money, the

offloading of our day-to-day purchase decisions to our

new robot friends seems both attractive and likely.

THREE KEY MACRO TRENDS(Continued)

COURTESY OF MAKERBOT

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THE FOUR CATALYSTS OF

MODERN MARKETINGSo how do these innovations and trends translate into

actionable insights for brands? As we look toward

the future, we see four key catalysts that will drive

modern marketing in 2016. By keeping these in mind

when developing your strategy and practices, you can

future-enable yourself for today and tomorrow.

1. BIG DATA IS BIGGER THAN EVER

The collection of data continues to grow exponentially

as the number of connected devices explodes. Soon our

daily lives will be intertwined with “smart things” — from

appliances and locks to cars and even our clothes. Almost

everything will be more capable and convenient, which

will simultaneously fuel the next phase of big data.

Intel reports that the number of Internet-connected

devices will reach approximately 200 billion by 2020. But

the problem with gathering all of this data is that the

more you have, the more difficult it becomes to manage.

It can easily spiral out of control. The challenge for

modern marketing is to turn all of this disparate data into

actionable data. How? By leveraging decisioning systems

that are powered by both human intelligence and AI.

This system of proverbial checks and balances — humans

applying intuitive thinking while AI identifies macro- and

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micro-patterns we would otherwise miss — produces

truly actionable data. And truly actionable data leads to

precise marketing, which leads to results.

As the number of connected devices rises and the

amount of data collected multiplies, the incidences of

data being misused or stolen also surges. Privacy has

become a central concern for consumers, and as they

become increasingly aware of how their data is being

used (or misused), they are taking more control. The

result is the rapid adoption of data- and ad-blocking

services. By June 2015, ad blocking had grown by 48

percent compared to 12 months prior to reach 45 million

active users in the U.S. As more and more of the most

actionable consumer data becomes blocked, the only way

modern marketers can access it is by providing a value

exchange for the consumer. People, especially millennials,

are willing to share their data as long as marketers

communicate how the data is being used and as long as

they receive tangible benefits in return. In other words,

give and ye shall receive.

2. CONTENT CONSUMPTION IS (LITERALLY) OVER-THE-TOP

The way people are viewing content has been

transformed. Consumers are forgoing traditional cable

TV for ad-free, subscription-based OTT (over-the-top)

content providers such as Netflix, Amazon, HBO Now

and Hulu at an ever-accelerating rate. Netflix members

streamed 42.5 billion hours of ad-free programming

in 2015 (up from 29 billion hours in 2014), saving the

average viewer from watching 130 hours of commercials

a year.

OTT has also redefined the very nature of the content

experience. It’s no longer limited to simply sitting back

and being passively entertained. It has evolved into

something more participatory and interactive, and it

has taken on myriad shapes and forms in the process.

Consumers can choose to view micro-content created by

everyday people through channels like Vine, Instagram

and YouTube, or they can watch channels targeting a

niche audience, like Twitch, the leading eSports platform

where millions of gamers gather to watch gamers game

THE FOUR CATALYSTS OFMODERN MARKETING(Continued)

COURTESY OF AMAZON

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THE FOUR CATALYSTS OFMODERN MARKETING(Continued)

— all while communicating via a new, ultra-compact

language made up of memes and emojis. And of course

they can binge on a rich mix of original and curated

content served up by the OTT world’s billion-dollar

players, like Netflix, HBO Now, Hulu and Amazon.

More OTT players leads to more content and more

channels across more devices — making the already-

challenging issue of fragmentation that much more

complex. Marketers need to find ways to effectively

resonate with consumers in an already over-saturated

OTT market with limited opportunities for traditional ad

placements. To do this, we must use our power of creation

to build relevant and timely connections. For modern

marketers, that means (1) natively integrating messaging

into relevant content, (2) creating original, compelling

branded content and (3) leveraging actionable data to

deliver it to exactly the right audience.

The rise of OTT has also set the stage for what is

undoubtedly the most powerful medium ever created:

Virtual Reality (VR). Samsung Gear VR headsets sold out

over the holidays, and Google Cardboard has shipped

5 million units since its launch a year and a half ago.

This year, VR device sales are expected to hit 14 million

units worldwide with the launch of highly anticipated

consumer headsets from companies like Oculus, HTC

and Sony. As VR evolves and proliferates, it will not only

change the way people consume content, but it will also

COURTESY OF NETFLIX

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THE FOUR CATALYSTS OFMODERN MARKETING(Continued)

Social is an ever-evolving medium — new platforms,

behaviors and languages are continually emerging. As

pop culture dictates the next cool thing, social takes

those cultural references and makes new meaning out of

them. “Netflix and Chill” is the perfect example of social

media-driven semantic drift. What started out to literally

mean watch Netflix and relax has evolved into a sexual

innuendo. And “Bye Felicia,” a quote from the 1995 film

“Friday,” has made a comeback nearly 20 years later as a

popular catchphrase. In general, people love expressing

concepts and ideas through language fragments

and visuals, which is why memes and emojis are the

communication building blocks of choice on social media.

Something else for modern marketers to consider:

Social is tribal in nature — and each tribe has its own

unique dialect, values and culture. To effectively connect

and communicate with your audience, you need to

understand these nuances and craft your messaging and

approach accordingly. And if you’re thinking of opting

out of social, think again. Social is no longer just an

element within the marketing mix. Many brands have

reshape the way content creators and marketers craft

experiences to reach their audiences. This is especially

true when you consider VR’s singular ability to induce

deep empathy. If brands can tap into this power to

create extremely immersive, emotionally compelling

experiences, they’ll be able to forge formidable bonds

with consumers. In fact, brands may be able to make

people, quite literally, fall in love with them.

3. SOCIAL RULES THE MODERN MARKETING LANDSCAPE

Social media has become a ubiquitous part of life. It’s

no longer just a medium for connecting with friends;

social channels are the new campaign canvas. It’s where

consumers go to get their daily news, financial advice,

political information and more. People use social to raise

awareness for causes, share personal milestones and even

mourn the loss of beloved celebrities. It wields a high

level of influence on today’s culture, so much so that —

instead of looking to industry leaders or resident experts

for insights on key topics — we turn to our friends and

groups on social.

COPYRIGHT MARTIN RINGLEIN

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THE FOUR CATALYSTS OFMODERN MARKETING(Continued)

made it the core of their marketing strategies. The

rise of ad-blockers and ad-free OTT content is forcing

brands to shift their attention to social and influencer

campaigns. As a marketing tool, social will continue to

grow. Facebook, for example, is striving to become the

new Internet. It’s creating a robust, holistic ecosystem

that offers everything from the ability to call friends

and make peer-to-peer payments to shopping for

clothes (or anything else) and even creating and

distributing petitions.

As the year progresses, other social channels such as

WeChat, Instagram, Snapchat, Pinterest and WhatsApp

will create more encompassing ecosystems. It is these

expanding social ecosystems in particular that make the

case for implementing a brand architecture that delivers

more personalized, sustainable and data-driven content

— an architecture that supports a nimble, inventive

approach to content creation backed by a deliberate,

informed social strategy.

4. MOBILE IS EVERYTHING

Arguably, smartphones have changed society like no

other technology. Two billion people have smartphones

and, more importantly, access to the Internet. When

the remaining five billion folks on our planet acquire

smartphones and global connectivity, every aspect of our

lives will be forever transformed.

COURTESY OF SENSORIA FITNESS

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THE FOUR CATALYSTS OFMODERN MARKETING(Continued)

Mobile is the center of the digital universe. It is the center

for content, for social and for the Internet. And as its reach

continues to expand well beyond the smartphone, mobile’s

role and presence will become even more ubiquitous.

Nowhere is that more evident than with the Internet of

Things (IoT). By harnessing the power of mobile computing,

IoT is embedding utility into the world around and — when

it comes to wearables — on us. Whether it’s the computers

on our wrists or the cars in our driveways, a whole new

world is opening up for marketers as our connected world

gets more and more mobile.

Connected cars in particular have the potential to be a

marketer’s dream. According to Gartner, a projected quarter

of a billion connected cars will be in market by 2020 — a

statistic that should put a huge smile on every marketer’s

face. And as these vehicles become more autonomous,

ultimately turning drivers into passengers (read: consumers),

that smile will get even wider.

A few years ago, connected cars were rare, but now, almost

every manufacturer offers at least one connectivity solution.

Marketers will be able to take advantage of this switch from

purpose to experience, as vehicles transform into powerful

connected personal spaces that enable social interaction,

work and entertainment. Real-time, location-based, highly

targeted messaging that adds value to consumers on the go

will be a massive opportunity.

Mobile computing’s continued expansion into the world

around us will only reinforce its position at the center of

the marketing universe for the foreseeable future. It

possesses an unparalleled ability to spark the formation

of new behaviors by allowing us to blend all aspects of

our lives into micro-moments we can enjoy with anyone,

anywhere, anytime. For those who embrace a culture of

exploration and frontierism, the shift from a mobile-first

mindset to a mobile-centric — and even a mobile-only —

paradigm will accelerate brand innovation and allow them

to adapt and thrive.

COURTESY OF MERCEDES BENZ

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UP-AND-COMINGSPACE TOURISM, MINING AND COLONIZATION

The technology is in place for space tourism, mining and

colonization to take off (apologies for the pun). In the last

decade, SpaceX and BlueOrigin have arguably made more

progress in increasing capabilities and lowering costs

(mostly due to reusable rockets) than NASA achieved in

the last half a century. Jeff Bezos, the billionaire founder

of Amazon and BlueOrigins, claims that paying customers

will be blasting into space in two years on board reusable

rockets. In November 2015, President Obama signed

asteroid resource property rights into law, and companies

like Planetary Resources are already testing mining

spacecraft. On the space colonization front, Elon Musk’s

primary goal is to reduce the chance of human extinction

by making life multi-planetary. Although self-sustaining

colonies may be decades away, the path there is already

creating a new commercial industry that could dwarf

anything prior in terms of significance and scale.

SOLAR ENERGY

As we discussed previously, it’s forecasted that, in less

than 13 years, solar power alone could supply the entire

world’s energy needs. Solar energy will drive tremendous

growth in a number of industries. The solar panel industry

by itself is projected to reach $180 billion in the next five

years. Financing is another growth area for solar energy:

SolarCity, the number one provider of residential solar,

recently announced a new quarter-of-a-billion-dollar fund

to bankroll new projects. With the sun (literally) fueling

COURTESY OF SPACEX

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UP-AND-COMING(Continued)

COURTESY OF TESLA

all of this growth, a pivotal question arises: What do we

do when our solar system’s largest resident isn’t shining?

Tesla — and the multibillion-dollar storage battery

industry it’s driving — has the answer. In May 2015, Tesla

announced preorders for the PowerWall, a rechargeable

lithium-ion battery that stores electricity generated by

solar panels during the day. The product immediately

sold out until mid-2016 and raised over $800 million in

the process. Solar energy is the fulcrum for the remaking

of the entire global energy system, and it will have a

dramatic effect on virtually every aspect of society.

CONNECTED ELECTRIC VEHICLES

Are you noticing an Elon Musk theme here yet? The future

of transportation and energy is renewable electricity,

and as of today, Tesla dominates every aspect of the

game — from the largest and most advanced electric

battery factory in the world to the most advanced

semi-autonomous (and soon to be fully autonomous)

vehicle-driving systems in the market. Although Tesla is

the current innovation leader, a number of other global

companies are heavily invested in this rapidly growing

space. This January, Nvidia announced the world’s first

in-car artificial intelligence supercomputer capable of

24 trillion deep learning operations per second. On the

car front, virtually every major automobile manufacturer

now has electric vehicles for sale, and new companies

like Google and Apple are poised to enter the space. A

recent study from Juniper Research estimates that hybrid

and electric vehicle sales will exceed 17 million by 2020,

while Gartner forecasts a quarter of a billion connected

cars by 2020. Although not all connected cars will be

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UP-AND-COMING(Continued)

electric, it’s reasonable to assume that most new electric

vehicles will be, which greatly accelerates automated

driving capabilities and unleashes new opportunities for

in-vehicle services.

THE MOONSHOT COMPANY

Never before has the combination of technological

advancement and shifting consumer behavior unfolded

at today’s massive scale and speed. Entire industries

worth billions of dollars are now created or upended not

in decades, but in a matter of years or even months. As we

mentioned earlier in this report, since 2000, 52 percent

of the most profitable Fortune 500 corporations in the

U.S. have either gone bankrupt, been acquired or simply

ceased to exist.

The traditional business playbook of incremental

improvement and meeting current customer needs is

now a step-by-step guide to disaster. Companies that are

built for the future are spending enormous resources on

moonshot projects that meet no current market need,

seem impossible to pull off and — even if successful

— may end up disrupting the very organization that

creates them.

Perhaps no company rejects the idea of “incrementalism”

to the same wonderful extreme as Alphabet (aka the

Web giant formerly known as Google). Alphabet has

embraced doing crazy and “impossible” things, some

of which — like YouTube, Google Maps and Chrome —

now boast over a billion users each. This “innovation

on steroids” approach combined with its diversified

acquisition strategy — covering everything from AI

to life extension — virtually guarantees that Alphabet

will thrive for the foreseeable future because, well, it is

literally making the future.

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UP-AND-COMING(Continued)

AI FINANCIAL SERVICES

Is your broker human? Are you sure? Most of the trades

executed today are done with AI. AI is replacing traders

and more frequently, analysts.

In 2015, robo-advisors already managed about $50

billion in funds. And Atlanta-based consulting firm A.T.

Kearney estimates that, by 2020, money managed by

AI-powered services will reach $2.2 trillion.

Financial companies are also getting in on the AI game.

For example, Charles Schwab, an innovator in online

brokerages in the ‘90s, now offers Schwab Intelligent

Portfolios, where algorithms determine how money is

invested. And Charles Schwab isn’t alone. AI is driving the

evolution of the entire financial ecosystem.

Suffice it to say that there’s big money — literally and

figuratively — in robo-advisors. And of the current

platforms, Betterment offers one of the most thorough

and elegant consumer experiences, positioning it for

dramatic growth in the years ahead.

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MOXIE IS MODERN MARKETING

Although the speed of change and increasing complexity

in marketing can sometimes seem overwhelming, the

path to success lies in simply taking the first steps. Like

shifting gears in a car, the most effort is applied when

moving from first to second. With momentum underway,

the same principles that drive exponential advancement

in technology can accelerate the modern marketing

capabilities of any organization that is willing to adapt

and innovate.

The key to success is agility. Brands must be aware of

the acceleration of technological and cultural changes

in the modern world and be nimble enough to rapidly

switch lanes to take advantage of these shifts. Simplicity

is equally essential. A streamlined structure and process

increases an organization’s speed and maneuverability,

enabling it to navigate today’s — and tomorrow’s —

evolving landscape with intelligence and ease. Leveraging

this new reality also necessitates a blending of the roles

of the CMO and CIO. Likewise, it requires the creation of

new positions, like Chief Marketing Technology Officers

and Creative Technologists. COURTESY OF OCCULUS RIFT

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MOXIE IS MODERN MARKETING(Continued)

Above all, brands must offer engaging experiences

— both physical and virtual — to connect with their

audiences, intelligently utilizing the plethora of data at

hand. The increase in addressable media formats requires

brands and agencies to rethink their production models

and to develop solutions with speed, variety and quality.

At Moxie, we have re-engineered the traditional

agency model through our four pillars of Frontierism,

Creation, Intelligence and Architecture to not only

keep pace with exponential change but to move

marketers to the leading edge of the trends that

will drive success. We bring awareness and action

to future trends in tech and society through our

Future Experiences group and create original, award-

winning, quick-turn content via our nimble Unit3C.

We help our partners harness the power of actionable

data through our Decision Intelligence team, while

our CRM group helps the brands we champion

build stronger, more meaningful bonds with their

customers. At every touch point that exists (and a

few that are still emerging), Moxie is there to deliver

solutions that move our clients forward.

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