2016 ces final recap

2016 CES FINAL RECAP
CES 2016: A Glimpse Into The Future
At face value, CES 2016 produced few “new” ideas and concepts vs. years
past. There were the expected product announcements involving advanced
drones, smart appliances, and impressive TV specs, etc., but no single
announcement was big enough to dominate show floor conversation.
It was evident, however, that the major players in Tech such as Google,
Amazon, Apple, and Samsung were placing long term strategic bets by forming
alliances and staking claim on where they think the future of their respective
businesses will go.
It’s now clear that the next decade will see the rise of new multi-billion dollar
industries that will fundamentally change communication and commerce, in an
even more profound way than how the smartphone has disrupted business and
empowered consumers in the recent past. 2016 will see The Internet of Things,
Smart Homes, Virtual Reality, Self-Driving and Autonomous vehicles, and
meaningful Wearables become very real consumer offerings.
Perhaps the most interesting takeaway from this year’s conference is the
genuine attempt by the industry at large to humanize our advanced
technological future. Examples include devices that actively listen, warm
interfaces with “invisible” UI, and wearables and appliances that can anticipate
our next move or need, based on the personal data we are willing to share with
them. This very necessary trend of translating “AI to HI” suggests that our
future will more resemble the movie “Her” and not “Minority Report,” which
should sit okay with all of us.
The Future of Transportation: GM Invests $500M in Lyft
General Motors surprised many by announcing an investment of $500 Million USD
in Lyft. In addition to the financial investment, the two companies are working on a
long term plan to develop an on-demand network of self-driving cars. The two
companies are also working to set up short-term car rental hubs in the US, which will
enable GM vehicles for short term rentals for non-car owners and Lyft drivers.
The announcement illustrates the diverse schools of thought in the still nascent selfdriving car market. Many established auto manufacturers are incorporating
advanced Artificial Intelligence and self-driving sensor technology in their mainline
fleets (and in the case of Tesla, software updates), assuming that consumers in the
long term will still value vehicle ownership. GM’s investment in Lyft, however, is
betting on a future that provides on-demand transportation from point A to point B
without necessarily depending on vehicle ownership whatsoever; in this respect, GM
is the infrastructure provider to a startup that is disrupting one of the world’s biggest
industries. Time will tell if this bet will pay off, as Uber and other competitors also
reveal their strategies to redefine transportation.
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The New Internet of Things (IoT) Battleground
Last year at CES, Samsung co-CEO B.K Yoon announced that by 2020, 100%
of their products would be connected via IoT (short for the Internet of Things,
meaning that objects will be connected to the Internet to collect and send data).
At the time, the statement sounded ambitious, but the past 12 months have
proven that IoT may be the most competitive battleground since the early days
of smartphone wars.
Google’s Nest and its Weave platform is now in direct competition with Amazon
and its Alexa platform, which is integrated into its popular Echo and Fire TV
(OTT) products, as well as Samsung’s SmarThings and ARTIK platform, among
others. In a surprise announcement in early January, Mark Zuckerberg
announced his intention to build a real life “Jarvis” (referencing Iron Man), a
combination of IoT and Artificial Intelligence for the home.
The acceleration of development in the Internet of Things space means that the
Home has been identified as a new battleground, and the data collected by our
household purchases and our conversations with our devices will be just as, if
not more, valuable than data collected from the Internet.
Drones Descend on CES 2016
Drones were everywhere at CES this year. They became more of a
mainstay at the show, with around 100 new models expected to be
announced at CES 2016. There was even a drones rodeo, with 25
manufacturers showing off their wares out in the desert. Some are bigger
and more elaborate, others are more streamlined and affordable.
Some of the models to watch out for include the Parrot DISCO, which is the
first wing-shaped Drone that you can apparently pilot with no learning
process, and the Lily Camera, which is being marketed as a camera, rather
than a drone. Think remote controlled GoPro cameraman.
Of particular interest for the marketing community is research unveiled by
the Consumer Technology Association. Drone buyers in the US are serious
purchasers of tech: drone buyers each spent an average of $2,890 in online
tech in the past 12 months. That’s four times more than that of non-drone
buyers!
How Can “Things” Data Become Actionable for Advertisers?
At CES 2016, the acceleration of the Internet of Things (IoT) cannot be ignored. The
consumer data collected by these “things” and how the data can be used to buy ads is of
particular interest—however, upon walking the floor it became apparent that “things” data is
deeply fragmented and disorganized.
Many are attempting to manage this mess; from Google Nest in the home to Samsung’s
ecosystem of everyday things that talk to each other, to BMW’s Mobility Cloud that integrates
data from home and commute. We can certainly imagine a future where IoT data is used to
buy ads. For instance, a refrigerator that knows when yogurt has spoiled could be very
valuable to a yogurt brand. They could then deliver ads directly to the fridge or anything else
connected to it; but, how will we access that isolated data in real-time to make the ad buy?
We think the proliferation of “things” data and connectivity paves the way for a future
marketplace for ad buying that leverages this data, much like the DoubleClick for IoT. While
this still has a ways to go, it could make “things” (and also wearables) data actionable. As
horizontal applications outperform discreet ones, this could eventually create a sustainable
ad business for the IoT.
Samsung Smart Fridge
Still in Search of the Perfect Band (Or Watch)
The wearables watch/band market (growing 35% Y/Y) is still deeply
fragmented with every manufacturer chasing the Apple Watch. At CES
2016, every watch company is getting smart. For instance, Fossil
announced that it’s rolling out 100 connected devices this year. The
thinking is that adding tech to watches just makes sense. Furthermore,
bands and watches are merging. Fitbit (the leader in bands) unveiled the
Blaze, a fitness tracker that includes Apple Watch-like features like
fashionable bands and a color touch screen (yet not based on iOS or
Android). Fitbit’s stock promptly dropped, perhaps because investors think
it’s stepping out of its sweet spot and can’t compete with the Apple Watch.
But no matter how many bands and watches we see at CES (and even
the Apple Watch, which isn’t at CES), we’re still wondering when the
tipping point will occur for critical mass. What needs to happen for people
to buy and keep a watch/band? While a wearable that is fully integrated
with your body (e.g. one that acts like a personal trainer, giving real-time
feedback) doesn’t yet exist, the industry is getting closer. One such
wearable is the Garmin VivoActive, which takes in data from your body
and encourages you to do things like “play harder” during activities like
running or swimming. But all-in-all, these are only baby steps from last
year. While these wearables should be on every brand’s radar, we’re still
reluctant to call 2016 the year of the band/watch.
Automotive Takes Its Place in The Internet of Things
Automotive has made the headlines at CES for the past few years, and
this year was no exception. GM announced its partnership with ridehailing app Lyft to develop a fleet of driverless taxis. The move signals
auto manufacturers working more closely with Silicon Valley which can
only be a good thing.
Notable car launches include VW’s two connected and all-electric
concept cars: the e-Golf Touch and the Budd-e microbus. There was
also a lot of talk about the electric hypercar Faraday Future FFZERO1
which CNET described as “an extreme tablet on wheels.”
But arguably of most interest to the marketing community was the
exciting technology demonstrated by BMW. Its Open Mobility Cloud
technology shows how the car can be seamlessly integrated into the
connected home, enabling the driver to manage their life from within the
car. This makes automotive a key part of the Internet of Things.
Mobile Wallet Helps Create Better Consumer Journeys
Samsung Pay ads are all over Las Vegas and the Korean technology giant used
CES to announce the next stage of the rollout of its mobile payment facility. Adding
to South Korea and the US, Samsung Pay will be available in Australia, Singapore
and Brazil, and launches are imminent in China, UK and Spain.
While developments in mobile wallet technology are not as sexy as robots and
virtual reality, they are important for marketers as brands look to create seamless
experiences along the consumer journey that end in a payment process that meets
the needs of the mobile consumer.
Over at Sony’s stand, most delegates were crowding to see the latest TVs, but
nestled in the middle was an interesting example of how payment technology is
meeting the needs of consumers. For international travelers, the Sony Bank Wallet
links debit payments or ATM withdrawals to the customer’s bank account in the form
of an automatic currency exchange. The card is supported by a mobile app to
enable biometric authentication.
AR and VR Offer More Engagement Opportunities
Virtual and augmented reality have been the darlings of CES in recent
years. For marketers, the opportunities for engagement through
gaming, utility apps and creative adverting are becoming clearer. And
what was clear from the stands at CES is that VR and AR technology is
becoming cheaper and more accessible.
Oculus – now owned by Facebook – announced that consumers will
finally be able to get their hands on their own Rift, available for preorder at $599. Garmin has created an augmented reality display that
cyclists can mount on their sunglasses which provides performance
information as well as directions and traffic alerts. Additionally, Hyundai
has built an augmented reality app called the Virtual Guide which
enables owners to use their phones to better perform basic
maintenance.
VR and AR will change both consumer experience and expectations.
The tipping point will be when the technology is embedded rather than
provided through separate devices.
Humanizing Data: From AI to HI
Wednesday, ZenithOptimedia and Viacom Velocity hosted a panel
discussing the evolution of data-led marketing. Shelly Palmer, Managing
Director Digital Media Group, Landmark Ventures, touched on where user
experience and user interface meet and how consumers are seeking a
frictionless environment, based off of improved data.
Rishad Tobaccowala, Chief Strategist of Publicis Groupe, followed up with
the fact that “Advertising narrowly = amazing. Advertising broadly, no one
wants.” This is how we create the frictionless environment based on data for
consumers.
Sharon Profis, Senior Editor at CNET, noted that in order to make
experiences consumer friendly, brands and advertisers have to adapt to a
truly native mobile experience. This is the only way to create an experience
that consumers want to engage with.
Overall, Kern Schireson, EVP, Data Strategy & Consumer Intelligence at
Viacom, brought up that consumers are in demand of their content and that
spills over into advertising. Consumers are making sure they see fewer but
more relevant ads.
The Rise of IoP (Internet of Pets)
In a world where everyone and everything is connected, it is only natural
to get our furry companions connected as well. There were several pet
tech companies that focused on the Internet of Pets - products designed
to help pets and their owners stay connected.
PetBot allows owners to observe and interact with their pets via their
smartphones. Owners can call their pets, play music for them,
automatically record videos, take pictures of them and even dispense
treats.
A self-described ‘connected accessory’, WonderWoof’s BowTie is an
activity tracking device for our canine companions that is as innovative
as it is fashion forward. It monitors your dog’s daily activity based on
size, breed and age. In the future, WonderWoof will be launching
beacons that can be placed around your house to help you determine
your dog’s location and if he/she is eating and drinking normally.
For many owners, pets are like kids. As we continue to get progressively
more and more connected, smart technology companies are finding
ways to help us bring our pets into the family’s digital fold.
Artificial Intelligence in 2016: Powered by Your Data
The term “Artificial Intelligence” brings to mind HAL 9000 and Ray
Kurzweil’s prediction of the singularity and possible robot uprising
within our lifetimes. While the latter may be inevitable (just
kidding), current advancements in A.I. are based on either
machine learning (i.e., software that allows self-driving cars to
learn from their experiences), or by the very same personal data
that advertisers leverage to target relevant consumers.
Our experiences with Artificial Intelligence in 2016 will resemble
that of a personal assistant, or butler. Advancements in Apple’s
Siri, Facebook’s M, Microsoft’s Cortana, and Google’s deep
learning products will leverage personal data, purchase behavior,
and mobile usage data to offer predictions, suggestions and
timely notifications to help streamline our busy lives.
Messaging platform apps, such as Facebook Messenger, will be
competing directly with smartphone-native A.I. platforms like Siri,
as those chat environments lend themselves to warmer and more
personal communication. Chatting with your A.I. assistant will feel
like having a conversation with a friend.
The Rise of the Robots
A big theme for CES is the ‘automated life’. Much of this has
centered on the connected home and the Internet of Things, but
this year the big movement in automation is in robotics. There
have been more robots on display at CES than ever before.
There was much hype about Segway’s partnership with Intel to
create a hoverboard butler. The device is a personal transporter
with a built-in interactive robot, which among other things can
stream video and respond to voice commands. Double Robotics
has brought out a new version of its telepresence robot – an
iPad on a stick which moves around and live streams. In effect,
it becomes your eyes and ears on the world around you without
you having to go anywhere.
For brands, the movement in automated life technology is about
helping consumers to have seamless experiences and to be
efficient in their daily lives. Automation is also hugely beneficial
to brands as the industry develops ever more effective
programmatic marketing solutions.
Virtual Reality Gets More Movement
Virtual reality (VR) is looking to take off in 2016 - and in a very real-world
way. Samsung Gear VR headsets sold out over the holidays and Oculus
finally opened pre-orders for its Rift headsets at the price of $599. And
while we have been impressed by the capabilities of all of these headsets
over the past year, we cannot help but wonder: What is next for VR?
Every next generation VR headset on display incorporated spatial
mapping and hand tracking. Startup uSens, Inc. built in infrared cameras
so users could see their hands and control elements within the
experience. South Korea’s brightest technology star, Samsung, integrated
hand-motion controllers to add gesture controls. And Taiwan’s HTC is
using external cameras to help with spatial tracking. As remarkable as
these innovations are, the biggest player in VR is clearly Sony with its
PlayStation VR.
Sony has introduced a technology that it has donned ‘the Move motion
controller’, a hybrid device that simulates hands in the VR world and
allows users to interact with virtual objects or fire weapons in games.
What’s really helping it lead the VR field is its numbers: It has sold nearly
36 million PS4 consoles for $349 globally — and every single one is
capable of running PlayStation VR. Sony’s VR headset is predicted to sell
1.9 million units in 2016. Game on, Sony. Game on.
VR Shopping Experiences to Redefine Path-to-Purchase
Retailers welcome any new capability that creates a more
intuitive online shopping experience, eliminates barriers to
abandonment and reduces the length of the path-to-purchase.
While VR shopping experiences have been on display for years
at CES, one in particular caught our eye this year. Modiface
enables users to see (on a tablet) different versions of makeup
on their faces through virtual reality. Users can change their
makeup with motions such as moving their eyebrows.
For the beauty industry (makeup, hair, etc), these types of
innovations can be game changing. Consumers can not only
virtually test products, but they can also try things without
makeup artist assistance. With more confidence, consumers will
be empowered during the shopping experience, and obstacles
to purchase can be eliminated while returns are maximized.
360 Video Cameras: The Future of User Generated Content
Nikon and Kodak announced that they are introducing the
industry’s first all-in-one portable solutions for 360 video
capture. This is a welcome development for early adopters
to the format, as the very early days of 360 video capture
required the use of multiple DSLRs or action cameras. For
instance, Nikon’s Project Helix demo photo booth featured
96 Nikon D750 DSLR cameras to create killer 360 degree
captures, drawing users into a helix.
And now, the Nikon KeyMission360 can capture 360
pictures and video in 4K with its two lenses. It is also
shockproof and waterproof. Kodak’s PIXPRO SP360
records in HD with its single spherical lens and can be
controlled remotely through an iOS or Android device.
Consumer interest and demand for 360 videos is surging
as VR hardware, such as Oculus Rift, is introduced to the
market, and familiar websites like YouTube and Facebook
include the ability to upload native, 360 content. The action
camera market is very healthy, with nearly 10 million action
cameras shipped globally in 2015.
Realistic 3D Avatars & Potential Future Applications
One of the most buzzworthy innovations at this year’s CES is
wildly realistic 3D avatars. Intel’s integration of UraniomVR
software and its real sense technology enables show-goers to
use an HP tablet with 3D Intel cameras to map out a full mesh
of their head and shoulders. Uraniom’s software then creates a
3D image uploaded to the cloud, which can be integrated into
the game Fallout 4. The impressive graphic quality means your
avatar has an insanely uncanny resemblance to yourself,
enabling you to be totally immersed in Fallout.
These realistic avatars have potential applications far beyond
gaming. We can imagine a future where consumers can
integrate their close-to-perfect 3D avatars into online shopping
experiences (or any online experience).
For instance,
shoppers could use their avatars on apparel sites to try on
clothes and find the perfect products for their shapes. While
this tech is just for fun right now, it could eventually
revolutionize online shopping.
Uraniom Avatar
This Year’s TV Buzzword: HDR
Every CES, a new TV technology is announced to drum up
excitement and encourage users to upgrade. Sometimes these
announcements are truly groundbreaking and set new industry
standards: HD, OLED and 4K are great examples. Other years,
new features fail to gain consumer traction (3D TV), or have little
practical utility (curved screens).
The TV technology buzzword of 2016 is HDR, or high dynamic
range (consumers may be already be familiar with the term from
smartphone camera settings). Samsung and LG introduced new
TVs with the standard and claim that HDR-enabled screens can
show millions more colors and several more shades of brightness
between black and white than normal displays. Moving forward,
4K TV sets will need to meet HDR standards to qualify as “Ultra
HD Premium”. Sony, Panasonic, HiSense, TCL and Sharp have
announced forthcoming TVs that will qualify for the badge.
The improvement in image quality is undeniable, but HDR feels
like an incremental, rather than revolutionary step, as the
consumers wait for more widespread availability of 4K content.
LG Introduces Roll-Up Screen Technology
LG introduced an absolutely stunning advancement in the field
of display tech by introducing flexible screen technology.
Foldable/Rollable screen technology has been talked about for
years now, but this is the first time that a brand has showcased
an actual prototype on the show floor of CES.
The screen has full HD resolution and can be rolled-up, folded,
or scrunched up like a piece of paper. The current prototype is
relatively modest in size at just under 19”, but LG’s intention is
to continue to develop the tech to current TV size dimensions.
The tech is intended for digital signage (such as in a shop or
for DOOH), but will also give interior design-minded
consumers an alternative to having to sacrifice a wall or corner
of a room for a large footprint screen.
The technology is still in its infancy and is years away from
being fully developed. It is such a radical departure from
current technology that is has the potential to reshape the
dynamics of our entertainment rooms, in a way that is more
profound than the transition from Cathode Ray to flat panel.
Health Tech Shows What Data Humanization Can Achieve
ZenithOptimedia’s theme for CES 2016 is Humanizing Data and this
has been evident throughout the show, notably in the huge growth in
health and medical technology. All of these new gadgets – including
wearables and health monitors – are based on the smart use of data
to enable consumers to keep track of their health and fitness.
There were many new devices on display this year, but here a few
interesting ones. Huawei’s Honor Band Z1 helps you track your
fitness, performing tasks such as counting your steps and keeping a
record of how you sleep. The DietSensor is an app-based product
that allows you to assess the nutritional value of food. And the Levl
tells you how much fat you are burning, just by analyzing your
breath.
A great example of how data and technology can combine to provide
a fascinating vision of the future is Genworth R70i. This exoskeleton
suit offers an emulated experience of the effects of aging, simulating
physical effects such as hearing impairments, mobility challenges,
vision disorders, muscle loss and arthritis. This is surely the
embodiment of humanizing data.
Media Owner Mindmeld
Thursday evening, ZenithOptimedia held a panel on Humanizing
Data, hosted by Michael Kahn, CEO, Performics Worldwide. He
was joined by Linda Yaccarino, Chairman, Advertising Sales and
Client Partnerships at NBCUniversal, Mark Thompson, President
and CEO of The New York Times, and Ben Lerer, Co-Founder
and CEO of Thrillist.
To start, Michael Kahn posed the question: how should
advertisers and content publishers balance creativity and data
science to create and optimize experiences?
Mark stated that while advertising started out as being 100% art,
it has now shifted to a balance between art and science. Data
science can help you create great content. The key is to have the
right premium content and then use the data to set it on fire,
according to Linda.
How you use data is something that came up throughout the
panel. Ben called out that you have to be careful how much you
let data influence you, as there can be false positives and it
should not drive every decision you make.
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