The Voice RevolutionThe Next Wave of Opportunity Tuesday, November 27. 1. Thanks so much everyone...
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The Voice Revolution The Next Wave of Opportunity Tuesday, November 27 1
Transcript of The Voice RevolutionThe Next Wave of Opportunity Tuesday, November 27. 1. Thanks so much everyone...
The Voice Revolution
The Next Wave of OpportunityTuesday, November 27
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Presenter
Presentation Notes
Thanks so much everyone for coming out today as we discuss the next wave of opportunity created by audio marketing, empowered by AI technology, and embraced by consumers more and more each day. The voice revolution is happening today, but it has been growing for almost two decades now. We are going to spend our time today focused on two key parts of audio marketing, smart speakers and podcasting. We’ll jump in with podcasting, which is the more passive of the two forms, but still more engaging than a medium like radio due to the consumer actively seeking out specific content. But before we get to today and future state, I thought it would be good to remember how we got here. Audio blogging has been around since the 80’s, but 2001 changed audio overall.
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While smartphones are an ingrained part of our lives today, there was a time, way back in 2001, when Apple revolutionized the music industry by putting 1000 songs in your pocket. What you’ll note here is that podcasts weren’t part of the original launch of the iPod. Podcasting as a term and a medium wasn’t developed until 2004 and it took until *CLICK* 2005 for Apple to integrate Podcasts into iPod capabilities. Since the launch though, podcast usage for consumers has been steadily growing. 2001 iPod launched 2004 Podcasting developed (https://computer.howstuffworks.com/internet/basics/podcasting1.htm) 2005 Podcasts added into iTunes (https://www.apple.com/newsroom/2005/06/28Apple-Takes-Podcasting-Mainstream/)
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There are as many Americans 12 and older now listening to podcasts weekly as those that had ever listened to podcasts in 2006, about 17%, according to Edison Research and Triton Digital. (http://www.pewresearch.org/fact-tank/2018/08/21/5-facts-about-the-state-of-the-news-media-in-2017/)
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When we look at who is listening to podcasts, unsurprising it is Millennials and those with higher household incomes Since podcast listeners are basically the definition of target audiences for just about every marketer, it isn’t surprising financial services is the industry that spends the most on podcast advertising, accounting for 18% of podcast revenues in the US last year according to the Podcast Advertising Revenue Study. Also unsurprising, with podcast listenership increasing, ad revenue is also increasing. Full Year 2017 Podcast Ad Revenue Study:An Analysis of the US Podcast Advertising Industry An industry survey sponsored by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC)
Presenter
Presentation Notes
According to the Podcast Ad Revenue Study, ad revenue is expected to increase by 111% by 2020 When it comes to marketing around podcasts there are two main options. The first is the most obvious and the most widely used format, ad insertion into existing podcasts. Full Year 2017 Podcast Ad Revenue Study:An Analysis of the US Podcast Advertising Industry An industry survey sponsored by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) https://techcrunch.com/2018/10/25/whats-next-for-podcasting-subscriptions-and-exclusives/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&ito=792&itq=3c5748a0-5403-44ef-8439-016861f5c121&itx%5Bidio%5D=86897067
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Presentation Notes
When thinking about ad insertion, most ads are integrated into the podcast, meaning someone that listens to a podcast today from 2 years ago could be getting a very dated message from your brand. The other option for ad insertion is dynamic or automatically inserted ads. These are ads that are slotted into a podcast space when the consumer listens, making sure it is the most recent ad. Our friends over at The Washington Post launched a tool earlier this year called Rhapsochord, a software system that uses automation to monitor and dynamically insert ads into podcasts, both past and present. Whether integrated or automated, ad insertion can be of concern for brands given the lack of control on the overall content of the podcasts. The second option for podcasting alleviates these concerns – branded podcasts. https://techcrunch.com/2018/10/25/whats-next-for-podcasting-subscriptions-and-exclusives/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&ito=792&itq=3c5748a0-5403-44ef-8439-016861f5c121&itx%5Bidio%5D=86897067
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Fast Company says, “Branded podcasts are the ads people actually want to listen to.” Refreshing thought as marketers work around ad blockers, cord cutters, and ad free streaming content to reach consumers. One example of branded podcasts, Mastercard launched their series “Fortune Favors the Bold” late last year. Mastercard partnered with Gimlet Creative, which has also worked on branded podcasts with eBay, Microsoft, and Virgin Atlantic. While podcasts aren’t new, they are a key part of the voice revolution when it comes to marketing. Interestingly, podcasts are being changed by the second focus of the voice revolution; the smart speaker. Nearly half of monthly podcast consumers 12 and older listen to podcasts at home and those same podcast listeners are more likely to have a smart speaker than general consumers 12 and older. Marketers are able to reach similar audiences through both aspects of the voice revolution. As we transition into thinking about smart speakers I thought it would be good to again take a step back. https://www.fastcompany.com/40533210/branded-podcasts-are-the-ads-people-actually-want-to-listen-to http://e.businessinsider.com/click/13975255.2248/aHR0cHM6Ly9pbmZvLnRyaXRvbmRpZ2l0YWwuY29tL2h1YmZzL1RoZV9Qb2RjYXN0X0NvbnN1bWVyXyUyMDIwMTgucGRmP3Q9MTUyNDE2NjE3MzEwOQ/59711102b84a995e578b4debBe5e36343
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Welcome back to 2010
CNN, 2010; Pew, 2018
17%35%45%58%
2011
2012
2013
2010
SONIC BOOM
MUSIC SPORTS NEWS TECH
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Presenter
Presentation Notes
Imagine, if you will, that it’s 2010 again. [CLICK] Ke$ha’s first album “Animals” debuts at number 1, [CLICK] Tiger Woods makes headlines and exits the golfing world, [CLICK] and the world watches the daring rescue of 33 Chilean miners. [CLICK] The first iPhone was released roughly 3 years ago, and today in 2010, we sit at the brink of the smartphone explosion, as only 17% of Americans currently own a smartphone. 17% should sound like a familiar number, you’ll recall as of today about 17% of Americans 12 and older are listening to podcasts weekly. Getting back to the smartphone, (CNN) In just three short years, [CLICK] that number will jump to nearly 60% as smartphones become a part of everyday life for Americans [CLICK]. (Pew) http://edition.cnn.com/2010/TECH/mobile/10/18/smartphone.everywhere/index.html http://www.pewinternet.org/fact-sheet/mobile/
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Fast forward to today
NPR/Edison, 2018
18%
SONIC BOOM
MUSIC SPORTS NEWS TECH
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Presenter
Presentation Notes
Now, fast forward to today. [CLICK] Ke$ha’s *third* album, “Rainbow” debuts at number 1, [CLICK] Tiger Woods makes his triumphant *return* to golf, [CLICK] and the world watches the daring rescue of a youth soccer team and their coach from a cave in Thailand. [CLICK] The first smart *speaker* was publicly released roughly 3 years ago, and today, around 18% of Americans live in a household with one. While our friends at KANTAR Consulting aren’t suggesting Ke$ha, Tiger Woods or daring rescues are precursors to technological innovation, they *are* suggesting that today we sit at the brink of our *next* major technological platform innovation as artificial intelligence and voice technology disrupt the screen-dominant world we’ve lived in for the last decade. They’re suggesting that, today, we are on the brink of what they like to call The Sonic Boom. [CLICK]
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Driven by artificial intelligence
Driven by processing power
SMARTPHONE INNOVATION
SONIC BOOM INNOVATION
The Sonic Boom
SONIC BOOM
Hands-on
Screens
Vision
Sight
Hands-free
Sensors
Voices
Sound
Presenter
Presentation Notes
Eight years ago, the smartphone revolution was hands-on, taking place on screens and relying on vision and sight. [CLICK] Today, change is hands-free, driven by sensors, and reliant on voices and sound. [CLICK] The smartphone revolution was driven by the need for increased processing power and speed. Which makes sense, given what smartphones allowed us to do for the first time—access the internet, watch videos, send photos—all things that required faster phones and networks. [CLICK] The critical technology powering the Sonic Boom today is artificial intelligence. Which makes sense given where we expect technology to go in the future. We don’t need a *faster machine* as much as we need a *smarter brain* in our devices as we expect them to do a better job of interfacing with us and talking to us at a human scale. This is the job of artificial intelligence, and it’s why technology that relies on artificial intelligence—like smart speakers and the digital assistants on your smartphone—are critical platforms for marketers to understand. [CLICK]
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Getting grounded in artificial intelligence
Mary Meeker, 2017
ARTIFICIAL INTELLIGENCE
Understanding the words you say
“Alexa, order the usual.”
Google voice has roughly 95% accuracy
Understanding what action to take
Orders third pumpkin-spice latte
Room for improvement
SONIC BOOM
VOICE RECOGNITION
NATURAL LANGUAGE PROCESSING
Presenter
Presentation Notes
And when we’re talking about Artificial Intelligence in these consumer-facing devices, we’re really talking about the interplay of two technologies: Voice Recognition and Natural Language Processing. [CLICK] Voice Recognition is the part of AI which understands the words you say, [CLICK] so when you say “Alexa, order the usual” it doesn’t think you said “Alexa, I think you’re delusional” or something like that. While many of us probably still have issues with this technology, voice recognition has actually come a long way in the last five years. [CLICK] Google Voice went from twenty percent accuracy in 2013 to roughly ninety-five percent accuracy today, which is practically at human levels of understanding. [CLICK] Natural Language Processing, on the other hand, is the technology that understands *what to do* once it comprehends the words you’re saying. [CLICK] So when Voice Recognition understands you saying “Alexa, order the usual.” Natural Language Processing technology knows to order your third pumpkin-spice latte of the day. [CLICK] Admittedly, Natural Language Processing still has lots of room for improvement, and is still far from functioning at human-level comprehension. [CLICK]
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New frontiers bring new questions
WARC, 2018
How do you advertise in a voice environment? What does Dove sound like? I don’t know. Dove doesn’t really have a voice.”
“KEITH WEED
CMCO, UNILEVER
What does your brand sound like?
SONIC BOOM
Presenter
Presentation Notes
One of the big questions that KANTAR Consulting asks of brands and marketers is “What does your brand sound like?” Keith Weed at Unilever recognizes the importance of voice technology on marketing, asking what Dove sounds like and, candidly, saying that he’s not quite sure. Even a business and a brand that have received so much attention and focus in the marketing world over the last decade are recognizing the need to rethink strategy and ask new questions in the sonic boom. [CLICK] https://www.warc.com/newsandopinion/news/unilevers_weed_expects_voicedriven_transformation/40766
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What’s your verb?
NPR/Edison, 2018
81%are open to skills and features
created by brands on smart speakers ???
What does your brand sound like?
SONIC BOOM
OF SMART SPEAKER OWNERS
Presenter
Presentation Notes
Another important question in the Sonic Boom is “What’s your verb?” We know that over 80% of consumers are open to brands creating their own skills and features on smart speakers, for example, which means fertile ground for brands to shape the language all consumers use when interacting with voice A-I. There’s perhaps no better branding accomplishment than when a brand name like Kleenex or Sharpie or Q-Tip becomes so culturally ingrained that the brand name becomes the accepted term for the generic tissues, markers or cotton swabs they represent. The Sonic Boom offers a new opportunity for this sort of cultural relevance. [CLICK] “Google that celebrity”, “Shazam that song”, and “Netflix and chill” have all achieved this on the digital web. Getting in early and becoming a part of the next digital lexicon will be critical in the Sonic Boom. [CLICK]
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What’s yourv-commercestrategy?
Voice commerce is still in its early days
SONIC BOOM
I use my smart speaker…
To get more information 86%
For entertainment purposes 85%
To be more efficient 70%
To control other things in my home 53%
To order everyday things I need 39%
Presenter
Presentation Notes
As we think about the future of marketing, the Sonic Boom will also help usher in a new version of commerce: c-commerce, or conversational commerce. This has largely been dominated by chatbots and messenger applications in its early days, and while there are some great examples of businesses who are leveraging the technology to get consumers to make purchases, voice-enabled commerce—v-Commerce—could be the nudge needed to realize AI’s place in the market. Commerce on smart speakers is still underleveraged, as purchasing products sits near the bottom of the list of smart speaker activities for users, who are instead interacting with smart speakers largely for information, entertainment and convenience. That said, the voice commerce market is projected to grow from roughly $2 billion today to potentially $40 billion in the next 3 to 4 years. Which mean’s we can’t write off the potential of understanding how our brands can thrive in a voice-controlled marketplace. [CLICK] https://www.prnewswire.com/news-releases/voice-shopping-set-to-jump-to-40-billion-by-2022-rising-from-2-billion-today-300605596.html
15Content Analytics Inc, 2018; Digitas/Publicis, 2018
Voice vs. Choice, where big brands win
I think voice is going to lend itself very well to the narrowing of choice. There's a decent chance that voice kills choice. [With] voice properly deployed by big companies … you can start to see some of the advantages of being a massive brand coming back.
“
BRYAN GILDENBERGCHIEF KNOWLEDGE OFFICER, KANTAR RETAIL
85%of people who have made a purchase via digital voice assistant have at least once chosen the first brand offered by the device
SONIC BOOM
What’s yourv-commercestrategy?
Presenter
Presentation Notes
The need to rise to the top and be a consumer’s first choice is *imperative* in the world of voice technology; as Kantar Retail’s Chief Knowledge Officer points out, “voice kills choice.” [CLICK] 85% of people who have purchased something via a digital voice assistant have chosen the first option offered to them. Voice-driven technology like smart speakers lack the in-depth search and comparison capability that digital screens provide, so when a user says “Order more toothpaste” there is an extreme benefit—at least in the early days of this technology—to be the first option. A lot of power is held by the manufacturers of the hardware, e.g., Amazon automatically ordering its own Amazon Basics batteries instead of Duracell or Energizer when you say “Alexa, order batteries.” But as we wait for the Wild West of v-Commerce to settle down, there’s a benefit to covering all of your bases and having a cohesive experience across voice and AI platforms, refining and adjusting based on the developments of these different platforms. Giving dedicated thought to what your brand sounds like, to how your brand is expressed as a verb, and to how consumers naturally talk about your brand, is essential in winning in the future of marketing. [CLICK] https://www.prnewswire.com/news-releases/voice-shopping-set-to-jump-to-40-billion-by-2022-rising-from-2-billion-today-300605596.html http://blog.contentanalyticsinc.com/2017/05/09/bricks-to-clicks-podcast-the-state-of-ecommerce-with-bryan-gildenberg-kantar-retail http://www2.publicisgroupe.net/Virtual-Voice-Assist
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Presenter
Presentation Notes
As we wrap up, I thought it would be good to see where all of this is leading. A recent patent by Amazon gives us further insight into how they are expecting to fully integrate voice technology into our lives. One final thought on the voice revolution, while we are experiencing the changes now, kids today are growing up with voice being fully integrated into their lives. eMarketer expects families will soon make up the core of the smart speaker user base with Millennials, that core group leading the voice revolution, being the generation most likely to have children under 11 in their household according to KANTAR Consulting. Which means a generation of consumers spending their formative years asking devices to serve up information and entertainment vs. using screens to search for what they need, just like the toddler asking Alexa to play Baby Shark – which you must look up if you haven’t seen. https://www.youtube.com/watch?v=JzfBedGaIjU https://www.emarketer.com/content/the-smart-speaker-series-kids-teens-infographic?ecid=348ddb13fd2146fc9b340bde059b4970
The Voice Revolution
The Next Wave of OpportunityTuesday, November 27
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