Commentary
The Impact of Next Gen Technology
- by Jeff Minsky , September 25, 2012
Advancements in technology have always had a tremendous impact on consumer media consumption. However, due to the Global Economy and a bit of gadget fatigue, we
seem to be entering a period of incrementalism in hardware innovation. This is not bad, as it will give time for new technologies to work their way to mainstream and for consumers to evolve their
media consumption habits accordingly.
Four technologies, currently in their infancy, will
make an impact on consumer media consumption, and in turn, the ways that marketers reach and persuade consumers.
- Connected TVs: Of the $166B spent on U.S. Advertising in 2012 (Source: eMarketer), the largest share still goes to television and will for the foreseeable future. Anything that can disrupt or enhance the current viewer experience has to be of utmost importance. Clearly, the Consumer Electronics industry has its eyes set on revolutionizing the experience. This may go more slowly than planned, given the state of the economy and slowdown of TV sales, but it will happen. The majority of sets sold over 40”, as of 2012, have built in Wi-Fi included. Navigation and availability of applications within the “Smart Hub” environments portend a fundamental shift in the way content is discovered and consumed. For now, familiar video distribution alternatives, such as Netflix, YouTube, and Hulu provide initial consumption touch points, but new content start-ups will provide new, maybe not-so-niche contextual opportunities to reach audiences in meaningful ways. This also repositions television manufacturers into major media portals.
- Human/Technology Interface evolves: The remote control is top on the endangered technology list. Just as a camera on a phone changed the telephone experience, the addition of cameras and microphones will change television and advertising. What once was a passive viewing experience now becomes a way for marketers to optimize both brand potential (via sight, sound, and motion) and activation, driving consumers to interact by simply speaking or gesturing. CRM and Customer service will be transformed with the live 2 way video conversation that will allow for conversations.
- Mobility and Location Based Services: Yes, arguably this is already at scale with smartphone penetration above 50%, but we are infants when it comes to the true power and scale of mobile marketing. The next few years will be defined by the sub-$200 tablet and adoption of 4G LTE (and eminent discussions of 5G with an estimated arrival of 2020.) allowing for further pushing out of the Media Consumption curve and the addition of physical location as a major element in contextual targeting. Tablets, in particular, will provide a more robust branding canvas for marketers to create emotional connections with prospects and clients. The symbiotic connection between the TV and tablet will evolve in ways to extend conversations and facilitate transactions.
- Immersive and Augmented Environments: We’ve all heard the expression “If these walls could talk”. With augmented reality they really can. For marketers, the world becomes their canvas to tell stories and motivate transaction. Marketers can pinpoint exact relevant locations to enhance brand resonance with useful information visually demonstrated upon any surface. Apps like Fooducate which augments nutritional information on packaged goods is an example of how AR will create practical, not gimmicky, value and impact the marketing process. Faster processors in phones and wearable products like Google Glass will make AR a more practical and user-friendly experience
Jeff Minsky, Director of Emerging Platforms, Omnicom Media Group
