What Happened Last week, Macy’s unveiled “One Below,” a space designed to court the digitally connected millennial shopper. Located in the basement level of its flagship store in New York’s Herald Square, the space boasts an array of brands that appeal to the generation and has technology as its focal point. It features an interactive touchscreen named “Instagram Wall,” showcasing photos tagged with #Macyslove, and a “Selfie Wall,” which allows shoppers to take a selfie with Macy’s branded images of NYC as backgrounds, in addition to a wearable-tech section, a 3-D printing area, and DIY stations with brands such as Fossil and Levi’s.
What Brands Need To Do With the rise of ecommerce, brick-and-mortar retailers are facing increasing challenges from the digital stores. And with sales growth slowing down and its average customer age pushing 50, it seems like a logical move for Macy’s to aggressively go after the millennial shoppers with social sharing tools like Instagram Wall and DIY personalization experiences. For brands that own brick-and-mortar retail stores, now is time to embrace the in-store digital installations so as to provide young customers with a fresh, exciting shopping experience that they would love to return to.
Today marks the official release of iOS 9, Apple’s newest operating system upgrade for its mobile devices. Along with it comes the much hyped mobile ad-blockers. TechCrunch tested three new content blockers for iOS 9 – 1Blocker, Blockr and Crystal. Popular desktop ad-blocker AdBlock Plus will also introduce an ad-blocking extension following iOS 9’s debut. So far, the ad industry appears to be somewhere between unconcerned and challenged, while most digital publishers seem to see this as a “frightening reckoning” and “potential nightmare.”
It is important to note that Apple is only adding support for content filtering extensions for Safari which must be downloaded and installed. Therefore they are not a system-wide feature that users can simply switch on to block all digital display ads with a simple swipe in settings. Instead, users seeking to block ads on their mobile browsers will have to install a third-party app, and jump through several steps in order to get it to work with Safari. While the process varies from app to app after downloading, generally users need to then enable content blocking extensions in Settings –> Safari –> Content Blockers, before returning to the app to customize the configurations. This process is akin to installing a third-party keyboard, and it can seem rather complicated for non-power users.
That being said, the well-documented, wide-rangingbenefits that those ad-blocking extensions can bring to mobile browsing experience will likely motivate a significant portion of users to jump through hoops to set up the extensions. With the popularization of pop-ups, interstitials, and autoplay videos, digital display ads on websites have only grown aggressive over the past few years. Usage of the new content filters will only accelerate the ongoing shift towards native advertising and publishing directly to social networks and platforms that can help monetize content without the use of third-party ad networks. Moreover, as the extensions only work with Safari, all the ads served in apps, where users spends over 85% of their time on mobile devices, won’t be affected at all.
For more actionable suggestions on how brands can deal with the rise of ad-blockers, click here to read our in-depth Fast Forward analysis on this buzzing subject matter.
Apple’s annual press event is set for 1 p.m. ET on Wednesday, September 9 in San Francisco, where the Cupertino-based company is expected to unveiled the next-gen iPhones, iPads, and even a new Apple TV. Here is a quick summary of what to expect from tomorrow’s big event and why brands should care:
iOS 9 To Arrive With Ad-Blockers It was announced back in June at Apple’s WWDC event that the new iOS 9 will allow developers to build content blocking extensions for Safari browser, which has led to a round of panic and debates over the impending popularization of ad-blockers among the ad industry and digital publishers. You can read our take on this issue and brand implications in our recent Fast Forward here.
New iPhones And iPad To Push Consumers Deeper Into Mobile As usual with Apple’s September events, the main star of the show would most likely be the new iPhones, which reportedly would be a minor upgrade with new features such as 3D Force Touch added in. More intriguingly, Apple is also reported to be launching a new line of tablets named iPad Pro, which will likely feature an impressive 12.9-inch display that can run 2 full-sized apps side by side. Together, we expect these new devices to usher today’s consumers deeper into the mobile-first age and away from desktops and TVs, and brands would be wise to follow where the audience is going.
As usual, Apple will be live-streaming the event tomorrow and the Lab will be live-tweeting @ipglab during the event, followed by our original posts highlighting the brand implications of the new announcements. So remember to check back tomorrow afternoon to learn more.
Your guide to tech-driven changes in the media landscape by IPG Media Lab. A fast read for you and a forward for your clients and team.
• Facebook started testing its own improved, human-assisted version of Siri
• More than just making suggestions, it will also complete tasks on users’ behalf
• Brands need to explore the new functional layer that many messaging apps are adding to their platform for transactions, customer service, and reaching new customer
What Facebook Announced Over a month after initial reports suggesting Facebook started preparing a human-staffed personal assistant service, the social network announced on Wednesday that it has started testing a new service for its Messenger mobile chat app called M that handles user queries and requests in a text-based interface that looks similar to other conversations on the platform. The service is currently available for a few hundred users in the Bay Area, and will eventually be rolled out to all Messenger users.
Unlike rival virtual assistants Apple’s Siri, Microsoft’s Cortana, or Google’s Google Now, Facebook claims that M will take it one step further and actually complete tasks on users’ behalf, such as purchasing items, getting gifts delivered, booking restaurants, making travel arrangements and appointments, and more. In addition to AI-powered responses, Facebook also has a team of so-called “M trainers” to handle the requests that AI can’t, ensuring all requests are answered properly.
• Reach customers on apps they’re already using – in this case, Facebook Messenger
• Take advantage of emerging platforms with messaging-based customer service
• Prepare for a new version of SEO to conquer the prime space in AI-generated suggestions
At a time when the U.S. market is finally catching up with the Asian market in discovering messaging apps’ great potential as a commerce platforms, Facebook is looking to take initiative in a nascent ecosystem that brands of all types could benefit greatly from. It is time to start expanding your customer service from phone call-based to include text-based messaging, reaching consumers on the platforms they already use.
As of now, Facebook seems to be deliberately keeping M neutral and completely devoid of “opinions”, i.e. whether something is good or not. Instead, it merely presents all available options as generated by algorithms. While this approach may not seem too welcoming for brand integrations, we are optimistic that Facebook would open up M for sponsored content and branded recommendations in the near future, given Facebook’s trajectory in making Messenger’s platform more brand-friendly so far. And brands need to be ready for what could essentially be a updated version of SEO (Search Engine Optimization) that plays around AI algorithms to make sure their content shows up in advantageous positions in M’s recommendations.
Market Impact M will certainly face some tough competitions: Amazon unbundled its virtual assistant Alexa from its smart speaker Echo in June; Microsoft has launched Cortana on new platforms; and Apple is reportedly integrating Siri into its updated Apple TV for voice command. But unlike other virtual assistants, Facebook M holds the advantage of being a hybrid of AI and real-human touches. Boasting over 700 million monthly users and still growing, Facebook Messenger has been actively adding new brand-friendly features to integrate businesses into its platform, clearly aiming to become go-to place for mobile discovery and customer service. Moreover, it bucks the convention of being voice-activated, and instead is text-based. Given the flexibility of conversational UI, however, it seems reasonable to expect Facebook M to adopt speech command down the road as an option, just as its competitors could easily move to texts-based communications to best suit user’s’ needs.
In recent months, we have seen some messaging apps adding a “functional layer” on top of its chatting features to connect customers to businesses. For example, popular Chinese messaging app WeChat has been actively onboarding certified brand accounts to expand the functionality of its messaging platform, to some great success. Similarly, apps like Kik, Vurb, Path, and Tango all updated their platform to add features that seek to connect users to businesses and brands via chat or in-app shops. On the other end of the spectrum, there is Magic, a startup that promises to fulfill any legal request that users send via texts, and employs real humans to handle those requests. Other similar texting-based on-demand service includes Operator, helpa, and the travel-focused Pana. Everywhere we look, the major tech companies are expanding their platforms with business-friendly features that aims to connect consumers with brands in a natural, conversational context.
For More Information Please contact Engagement Director Samantha Holland ([email protected]) at the IPG Media Lab if you would like more detail or to schedule a visit to the Lab to discuss strategies and tactics around tapping into the marketing potential of virtual personal assistants and conversational UI..
For previous editions of Fast Forward, please visit ipglab.com. Please reply with any constructive criticism or feedback. We want these to be as useful as possible for you and your clients, and your feedback will help us immensely.
Netflix seems to be having a very good year so far. In an earnings call earlier today, the company reported that it has added more subscribers than expected around the world during its most recent quarter, generating more than $1.6 billion in revenue. The better-than-expected performance propelled the stock share of the streaming service giant to increase 10%.
Already bigger than all cable channels, analysts predicted that by next year Netflix U.S. viewing will surpass all big four broadcasting networks. In a letter to its shareholders, Netflix highlighted its slew of original shows launched this year as a major factor for its accelerated growth, citing that “90% of Netflix subscribers have engaged with original content.”
Meanwhile, in other good news, the 2015 Emmy Nominations were announced this morning, and Netflix’s original shows scored 34 nominations in total, up from 31 last year. OTT streaming services have been steadily encroaching on TV networks in attention and awards, a trend that this year’s nominations reflects.
Despite the double good news, however, Netflix does have a potential issue in the fact that it doesn’t actually own any of its originals. Its hit series Orange is the New Black, for example, is produced and owned by Lionsgate Television, while its Emmy-nominated freshman series Unbreakable Kimmy Schmidt comes from Universal Studios. In comparison, rival Amazon’s critical darling Transparent is produced by its in-house Amazon Studios.
Acquiring content from outside studios is a smart and cost-effective move for a new platform seeking content, but if web-based TV continues to grow in prominence, Netflix could very well lost their original shows to growing rival platforms. In order to avoid losing the brand value it has built upon its original content, Netflix will probably need to bring more production in-house in the future.
According to a leaked email from Uber CEO Travis Kalanick, Uber is seeing tremendous growth in the Chinese market, logging in 1 million daily rides, which is as many as Uber has in all of its global markets combined. Encouraged by the promising prospects, Kalanick revealed the company intends to raise $1 billion specifically for Uber’s expansion in China.
While the numbers may seem impressive as a standalone, they pale in comparison to Uber’s competitors in China. Kuaidi and Didi, two most popular cab-hailing apps in China backed respectively by domestic giants Alibaba and Tencent, both report that they each book up to 6 million rides a day. And a surprise merger of the two announced back in February created Kuaidi-Didi, a mammoth that now cover over 95% of the market share.
Update 06/15/2015: Right on the heels of UberChina’s $1 billion fundraising plan, Didi Kuaidi counteracts by seeking $1.5 billion in new funding round.
The TV Upfronts are coming up next week, and reports on the fate of your favorite broadcast TV shows are popping up. The first big surprise cancellation came yesterday when Fox announced that The Mindy Project will not be coming back for a fourth season on the network, making it the first show in seven years to be axed with over 66 episodes under its belt.
Typically, when a network show reaches such numbers, the prospect of lucrative syndication deals would prompt the networks to grant shows with low ratings another season to produce sufficient episodes so as to bulk up its leverage in syndication negotiations. And that’s the way it’s always been done.
But with the recent rise of OTT streaming services disrupting the TV landscape, that rule seems to no longer apply. In this new circumstance, Universal Studios, which produces the show, could easily ship the show off to a streaming service where it can attract a niche audience and cumulate more episode counts, rather than negotiating with Fox to find the show a burn-off time slot for cheap.
And that’s exactly what they are doing – the Mindy Kaling comedy seems to be heading to Hulu, as sources report that the streaming service, partially owned by Fox and NBC Universal, is already in talks to acquire the show for multiple new seasons. If true, Mindy wouldjoin high-profile series in development at Hulu as the streaming service bulks up on original content to compete for audience attention.
The Lab has always been fascinated by the shifting landscape of the TV business, and we have been closely following the ongoing trend towards OTT streaming viewing. Come talk to us if you are a media owner or simply want to understand the changing audience behaviors and how to reach the fragmented viewers.
Every SXSW Interactive features notable speakers on provocative topics, this year spanning everything from ride sharing to “mind clones.” We’ve identified three important themes for marketers:
Empathetic design takes center stage
Paola Antonelli, senior curator for MoMA, kicked off her keynote on the future of design with a shout-out to the rise of empathetic design. A user-centered design approach that focuses on the user’s feelings toward a product, empathy-driven design can provoke emotion, influence user behavior, and create strong connection. Paired with the right metrics, it can generate measurable intimacy that brands can benefit from.
Ride sharing on the rise
Logan Green, co-founder and CEO of Lyft, was reluctant to talk much about his major competitor Uber, but he did have a lot to share about his vision for the future of driving. He believes that the spreading practice of ride sharing has enabled more affordable, reliable and memorable transportation while boosting the local economy, and that on-demand car services like Lyft will make car ownership “unnecessary” in the future.
Mobile reigns supreme
Directly or indirectly, all five presenters this year touched on the impact of the ubiquitous connectivity aided by mobile devices. For instance, the first thing highlighted by Astro Teller, head of Google[x], was the recent success of its Loon project, in which Google has tested high-altitude balloons to provide Internet access to rural and remote areas. The paramount challenge for brands in this “mobile age” will be how to gracefully capitalize on the connection established by smartphones and wearable devices.
Yesterday’s Apple Event brought a few surprises, such as a skinny gold MacBook and a new SDK for medical researchers. One thing, however, was clear from the start—Apple is really going after the Chinese market.
From the prominently featured Chinese consumers in various promo videos shown throughout the event, down to the deliberate choice of Tencent’s WeChat in the on-stage Apple Watch demo, Apple is sending a clear message to the Chinese market. And the Cupertino-based company certainly has good reasons to do so. As the biggest global market with over 520 million active smartphone users, China has become the fastest-growing and third-biggest revenue source for Apple, partly thanks to its recent retail expansion in the country.
There’s no dispute that Apple is a market trendsetter, and today’s “Spring Forward” media event will undoubtedly keep people talking until the new products hit the shelves. Here are the five trends from today’s event that marketers need to know:
Wearables Peak With “Glanceable” Notifications With the Watch’s official launch set for April 24, the wearables market is poised to hit a historic boom as all wearable makers gear up to capitalize on the forthcoming public attention. And as notifications move from mobile devices to the user’s wrist, it will become more important to provide “glanceable” content that can be easily addressed or ignored. Brands will need to experiment to deliver the right notification at the right moment or risk overwhelming the consumer.
Tech and Fashion Continue To Converge The Apple Watch has three different collections, each with two finishes and six watch bands made of different materials. Among all these stylistic options, however, the one that stands out is undoubtedly its 18-karat gold edition—priced at $10,000—which marks Apple’s official entry into the luxury goods market. By limiting distribution, Apple is clearly taking a page out of high-fashion brands’ playbook, furthering the convergence of tech and fashion.
Further Integration Across Interfaces Besides continuity between the Apple Watch and new MacBook, Apple is also making a play for the connected car and smart home. Not only are all major car manufacturers committed to integrating Apple’s CarPlay into new models, Apple also mentioned it is working with leading brands in home automation to expand the reach of its HomeKit platform. During the Watch demo, for example, Apple showcased a remote garage door control powered by alarm.com.
The Quantified Self Connects With Healthcare Further integrating self-generated health data and healthcare, Apple highlighted a new ResearchKit that could potentially revolutionize the field of medical research. By partnering with several prestigious medical institutions, Apple’s new open-source platform will allow medical researchers to easily create apps that gather medical data. The company is also carefully balancing privacy concerns by making all studies opt-in and hiding results from Apple.
Displays Keep Getting Thinner And Sharper Apple also stunned the crowd with the thinnest and lightest MacBook to date (13.1mm at the thickest and weighs just 2 pounds), and improving image quality with a 12-inch Retina display. As more and more devices upgrade to retina screens, brands need to make sure they are developing high-resolution content.
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