Sophie Harding Trends & Insights Director

Welcome to Mindshare’s trends for 2020. The backbone to our Futures Programme, these trends aim to get to the heart of those areas in technology, communications and culture we should be watching for the year ahead and beyond. Key areas of exploration include 5G, more human data sources (such as facial recognition and wearables), streaming wars, disruption in the brand landscape and the transformation of advertising.

We pride ourselves on approaching trends a little differently, with consumer opinion central to all of our findings, delivering on our audience-first proposition for clients and unlocking growth for them in the year ahead. These trends are the culmination of four months of intensive consumer-facing research, including multiple quantitative surveys spanning 5000 UK consumers aged 16+ and multiple bursts of qualitative research both online and face to face with over 110 people of all ages, from all walks of life and from all over the country. We aim to dig into human thoughts and behaviours, identifying not only what is happening but why – something that’s not always easy when talking technology, futures and innovation! As society becomes more polarised (a trend in itself), speaking to such a wide range of people is even more essential. We see massive differences for example between those that live in cities compared to rural areas, or those that are more confident with technology versus those that are not.

If you have read Mindshare’s trends in the past, you will notice that our trends are a little different in flavour this year. We are still tracking lots of the trends and tech featured in previous years, everything from voice to visual search, but the trends we have chosen to highlight this year are more all-encompassing in terms of subject matter compared to previous years. With all that is going on in the world, there are much broader cultural points of influence to factor in. People are taking stock and thinking bigger picture. Technology, brands and marketing are being questioned and re-evaluated along with a whole host of other areas of life. This year’s findings go right back to fundamentals – how people feel about connectivity and data, their relationship with brands and what they really want from ‘advertising’ and entertainment. It’s anything but basic, and much of this will drive the future of our industry, not just in 2020 but for the next decade ahead.

We hope you enjoy the trends and they give you some food for thought. Our Futures programme will continue to research some of these and other areas in more detail as the year goes on. Do get in touch if you would like any more information. Happy reading!

1 CONTENTS

2 TRENDS 2020 AN INFLUENTIAL SETTING PAGE 04

OM5G?

5G is a huge part of our future and is set to change everything, from the devices we use PAGE 08 to the experiences we have, but at present people aren’t engaging and it may take longer to have an impact. Great progress in the tech space is in the air but are people on board? BODY TALKS

Data points are getting even more personal. We have moved from providing PAGE 26 basic contact details to revealing search, purchase and location behaviours, and now into the realms of information about our personal and bodily responses. LIVING THE STREAM

A need for instant, on demand, quality

content is driving the streaming world. PAGE 44 Companies are looking to be the provider of all things entertainment, shrewdly consolidating and adding new devices and subscription offerings into the mix. BRAND NEW WORLD

It’s now a harsh world for

brands, where cynicism PAGE 62 is rife, savvier shopping is encouraged and we are faced with more choice across every buying decision we make. AD BREAKS?

Less overt forms of advertising will continue to grow, where brand PAGE 80 messages are more embedded into the content itself – everything from product placement through to branded partnerships. Context will be absolutely key, more so than ever.

3 AN.INFLUENTIAL. SETTING WE ARE A FRAGMENTED NATION

4 TRENDS 2020 Mindshare Futures’ fivetrends for 2020. we explore inmore depththroughout the brands theybuyinto–issuesthat the advertisingtheyare exposedto,and the mediapeoplespendtheirtimewith, are creating raised expectationsaround some. Andallofthesehumanresponses that matterisbecomingapriorityfor how totakeactionaround thethings control. Working outwhototrust and that thefuture isalittleoutoftheir challenges andchange.Manynowfeel and values are goingthrough similar it’s unsurprisingthatourbehaviours people are having tocontendwith, Given thelevelsofturbulence that the newnormal. opinions, values andbehaviours are now regions andwithinfamilies, differences of divisions. Across thegenerations, by the country, hasresulted inwidespread uncertainty around thefuture direction of upheaval, coupledwith general period for theUK.Political andeconomic remembered inhistory asagolden The lastfew years are unlikelytobe concerning usthemost. to putrightthevery thingsthatare days isthatmanyofusfeel powerless anything toaddress it.Thereality these an issueactuallyfeel empowered todo of peoplewhoare very concernedabout and thecostofliving,lessthanaquarter the notableexceptionsofenvironment feel theyare leastabletoresolve. With these bigissuesare theonesthatpeople concerning manyofus.Buttoooften, facing theenvironment are what’s leadership ofourcountry, thechallenges such asBrexit, theNHS,political pretty lowdownontheagenda.Topics advertising, brands andtechnologyare of weightyissuesatpresent, andthat that peopleare worrying aboutaraft It willcomeaslittlesurprisetoread themselves, let’sstepbackfor amoment. But before wegetintotheTrends 5

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? ANAN INFLUENTIALINFLUENTIAL SETTING ‘We are a fragmented nation’ on lives; this has dropped by a of declining trust levels on the one People feel decisions about the massive 13% in 2020 to just 64% hand, with increased access to more future are happening above them, of the population. These growing information and knowledge on the to them, but not necessarily with concerns around technology have other, is creating new challenges for them. This lack of control over the implications for many of the themes brands, advertising and media alike. future is something that is spilling we are exploring for 2020 – from Less is being taken at face value, across many dimensions of our whether people will really feel the with a more cynical viewpoint being lives. Technology, for example, need to upgrade to 5G, a key theme adopted instead across many areas, previously seen by many as having a in the trend OM5G, through to the often causing new challenges for positive impact on life, is now being financial implications of yet another advertising, a theme explored in our increasingly questioned by people, content-related subscription explored trend Ad Breaks. A ‘prove it’ culture is for the way in which it dominates in Living the Stream, and then the emerging where everything will need our time, and for our over reliance on potentially intrusive nature of new to not only talk the talk, it will also it. In 2018, 77% of people claimed personal data sources in Body Talks. need to walk the walk. technology had a positive impact Meanwhile, the heady combination

The many issues facing people today are having a noticed many more brands and companies being called profound impact on our national psyche. People’s beliefs out for behaving badly, and a third now acting on this that the UK is a nation of tolerance, warmth and openness information, saying they have recently stopped buying have been brought into sharp doubt. Two-thirds of people from some brands and companies because they don’t now feel that the UK as a whole is not currently living up agree with their values. to the values that they believe are central to its national identity, with these concerns rising to even higher levels But it’s not all doom and gloom. The British are a resilient amongst over 55s and those living in rural locations. lot, and a positive counterbalance is emerging in response to these feelings of paralysis and powerlessness. People One major concern is the way in which honesty and are consciously and deliberately seeking out those areas helpfulness are now felt to be in short supply. The lack where they can make changes and where they can make of common ground, of unreliable truth and challenged a difference instead. We see people trying out new brands openness, is unchartered territory for many. People now and new ways of buying – a topic we explore more in the have almost a sixth sense about what subjects are safe trend Brand New World. And environmental concerns, to share with different audiences and have become quick in particular, are benefitting from this reaction, with the to change the subject if they sense the conversation will growing adoption of small everyday changes around lead to disagreement. This fear of being called out for both habits and shopping, now well-established as new words and actions is becoming an issue for brands too, behaviours. with more than half of people saying they’ve recently

6 TRENDS 2020 a difference here too,particularly if opportunities for brands tohelpmake so manyotherareas. Andthere are the disharmonythatexistsaround back together, offering atonicto better, are startingtobringpeople change, andlookingaftertheplanet feel likeithasdividedtheUK,climate together again.WhilstBrexit may with thepossibilityofthingscoming their potentialtoreunite opinion, an additionalsidebenefittoo,with over theirfutures. Andtheyoffer like theycanhave somecontrol actions are helpingpeopletofeel These small,everyday positive IF YOU LEADBY EXAMPLE’ PEOPLE RESPECTYOU MORE, THAT INEEDTO MAKE.ITHINK ME ISTHAT IMAKETHECHANGES ‘WHAT ISMOST IMPORTANT TO private, willbeanessential. behaviours, bothinpublicand a consistentsetofvalues and for thebrave, butintegrity,and Opportunities are stillavailable times for bothpeopleandbrands. concern for thefuture. Challenging trust, offrustration, ofscepticism and So, atimeofdivision,declining change. issues oftheday,suchasclimate much more totackletheimportant companies shouldbejoiningforces – two-thirds ofpeoplebelieve they canfind ways to bandtogether companies shouldbejoining forces muchmoretotackle of peoplebelieve important issues 67% oftheday 7

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING OH.MY.FIVE.G?

8 TRENDS 2020 and betterfor techdevelopments for doingthethingswealready doquicker set tobringaboutendlesspossibilities, ever more central toourlives.5Gisnow content was bornandourmobilesbecame ecommerce, socialmediaandvideo ten years ago,awholenewera for apps, is afoot. When4Gcameaboutalmost of theseexperiences.However, change amount ofconnectionrequired for some we simplyhaven’t hadthequalityand expensive, thecontentisstilllackingand presented themselves;thetechhasbeen why? Well, alongtheway hurdles have off asmuchsomehadpredicted. But, progressing, but theyhaven’t quite taken just alittlebit.Thesetechnologiesare still billion…OK, soperhaps thiswas over-egged the globaldrone market wouldnear$127 outstripping consoles,andtheyearthat headsets wouldhit64.8millionyearly, the road, theyearthatshipmentsofVR predicted 10millionself-drivingcars on It’s 2020;theyearsomeforecasters IT COMEFROM?_ WHERE HAS

AND DOPEOPLE 5G ISONITS WAY, REALLY CARE? REALLY OMG Houston, dowehave aproblem? feeling….well alittleunderwhelmed. en mass,buttheywillbe)andpeople are the devicesare here….(OK wait, somaybenot networks are here, itisrolling outincities, and devicesbecomenearendless. The place, thepossibilitieswithnewtechnologies all ofourbuffering prayers and once5Gisin it’s notjustaboutspeed.It’stheanswerto likely todownloadinunder5seconds!But takes about7minutes.On5Gthefilmis example, downloadinga2-hourfilmon4G internet speedsandresponse times.For 5G is100xfaster, dramatically improving the cloud.Byoperating through thecloud, defined network’, whichmeansitoperates on So, whatexactlyisit?5Ga‘software such assmartcitiesandconnectedhomes. experiences wehave andourenvironments the devicesweuse,immersive of ourfuture andissettochangeeverything; haven’t evenimaginedyet.5Gisahugepart that needakickstart,butalsofor thingswe BUT ISIT

? 9

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Scream if you want to go faster...or not Well, according to our research, it This lack of knowledge means are a nice to have, but not essential appears that not many are screaming that people are not really seeing it and not worth paying more for as a to go faster just yet. 5G was 2019’s particularly differently at all. It’s just standalone proposition. Other more biggest buzzword in marketing ‘another G’. Over half (54%) of our important benefits that 5G brings and technology. We saw a huge respondents felt that 5G is just the are not getting across. Latency, for splash about it at CES 2019 and next 4G; they just don’t know what example, or no ‘lag time’ in simpler the networks have now launched in the big deal is. terms if you prefer, is not on the major cities. Yet it feels like everyone radar. 5G will bring about instant has forgotten to explain to what the ‘I think 5G seems a bit pointless. I connections – up to 10 times faster technology is, why it is different to mean, 4G is fine for me, you reach a than human eye to brain speed 4G and why it will change our world certain speed where it really doesn’t to be exact, enabling real-time to those that matter the most. Most make a difference based on the connections, which will be important people have heard of 5G (95%) but things that you’re doing the majority for experiences and devices that are beyond that, their knowledge is of the time’. yet to come our way. 5G will be a minimal and the only message that fundamental part of running smart seems to be getting across is that it And this is it in a nutshell. Most are cities, autonomous cars, immersive will be faster. (See Fig. 01) only thinking about 5G in relation to experiences and tech enabled homes, the things they are familiar with and but this is hard for people to imagine ‘I feel like there was such a big jump doing at this point in time, not for it’s right now. Health scares and fake between 3G and 4G, and 2G and 3G, future possibilities. In their opinion, news around 5G were something but I don’t know, it just feels like it download times being a bit faster people had heard about but concern will be a bit faster, but nothing to for things they are currently doing was not quite as high up people’s write home about.’ 5G WILL BE 10 TIMES FASTER THAN HUMAN EYE TO BRAIN SPEED

10 TRENDS 2020 and then5Gwillbeonitsway. More timeandeducationare needed know 5Gwas suchaparadigm shift.’ things suchas‘Wowzers! Ididn’t entirely withrespondents saying discussion, perceptions changed In fact, aftermore explanationand the technologiesitwillkick-start. and generally more opentoitand of theirlives,theyfelt more positive impact itwilllikelyhave onallareas about 5Gandhaddiscussedthehuge more information andknowledge found thatoncepeoplewere given it isthis–there ishope!Ourresearch time andifthere isonlyonetakeout, However, thisisonlyasnapshotin things were true ornot. technology tojudgewhetherthese they didn’tknowenoughaboutthe agenda asweexpected.Mostfelt ALREADY’ ENOUGH FORME THINGS WORK QUICK INTERNET SPEEDS. PLAGUED BY SLOW LIFE ISCURRENTLY THINK MYDAILY ‘GENERALLY IDON’T Female, 25-34,Non-London How muchdoyouknowabout5G? (16+) Fig. 01 5% 5% ‘Istruggle tosee anytangiblebenefitbeyond“it’s faster”’ Male, 25–34,Non-London Heard ofitandknowalot I haven’t heardofit 16% Heard ofitandknowamoderateamount 34% 40% Heard ofitandknowalittle Heard ofit,butdon’t knowanything 11

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

The ‘Multi device’ enabler It is not just about speed of We also asked people to think beyond have started to explore the data or latency, 5G is capable of the things we already do with our possibilities of 5G in their cities and accommodating a lot more (there are smartphones. Think other devices. A are seeing huge benefits. claims of up to a million) devices all multitude of them. Add this idea of in one spot – it has more bandwidth more bandwidth to latency and we Amsterdam have tested an IoT-based if you like. No more problems at have a network of devices that can infrastructure to manage traffic flow, events when everyone is trying to all connect together, reliably, in real energy usage and public safety. And connect all at once. So, in theory, time, with no delay. The IoT suddenly Barcelona now has a network of fibre combined with its other benefits, no feels more real – voice assistants, optics that run throughout the city, more connectivity issues. However, cars, packaging, smart appliances, providing free high-speed Wi-Fi that reliability and better coverage were wearables that all seamlessly supports the IoT. So far it has saved not attributes people naturally connect to each other for our benefit. the city €75 million of funds and has associated 5G with, but were created 47,000 new jobs in the smart something they were willing to pay By connecting all these devices, technology sector so far. 5G will more for. (See Fig. 02) we open up not only our lives but eventually be pushed out globally to also our cities to a whole range of big cities, having a huge impact on advancements. Several countries our environment and changing how

12 TRENDS 2020 Fig. 02 what Ithink5Goffers a bitmoreforversus Attributes Iwouldpay ‘When it’sreliable I’llbeexcited is awful intermsofbroadband because thiscountry, theUK, Would payabit Would payabit Would payabit Would payabit Would payabit COVERAGE EVERYWHERE IGO something really isworking, and Wi-Fi. It’sridiculous.’ about it.You know, when A 100%RELIABLESERVICE 30% 30% 42% 33% more for more for more for more for more for 17% BETTER VIDEOQUALITY CONSIDERABLY FASTER INSTANT CONNECTION Who’s thisquotefrom?? DATA SPEED What Ithink What Ithink What Ithink What Ithink What Ithink 5G offers 5G offers 5G offers 5G offers 5G offers 48% 28% 25% 33% 27%

SMART CITIES NEAR ACHIEVING WERE NOWHERE THOUGHT WE 42% OFPEOPLE of connection.Thepossibilitiesfor data andrequires instantspeeds for anythingthatinvolves lotsof will becomecloudbased.Goodnews devices, asmuchmore ofourcontent to store orrun everything onour about content.There willbelessneed So, let’sthinkclosertohomeandtalk from achievingthem. process butwere stillawhileaway another 40%thoughtwewere inthe near achievingsmartcities,whilst of peoplethoughtwewere nowhere that felt far away for people.42% But ‘smartcities’were aconcept we fundamentally thinkaboutcities. power, bandwidthandlag,onmobile. console duetoissueswithprocessing were previously onlyplayableon allow gamers toplaygamesthat platforms combinedwith5Gwill apps, butthesenewcloud-based play gamesonourmobilesthrough on-the-go. Ofcourse, wecanalready to playgamesontheirsmartphones platforms whichwillallowgamers announced cloud-basedgaming PlayStation, Xbox,andothers have for example,inthelastyearGoogle, shifted upagear. Andingaming, augmented andvirtualreality just immersive technologiessuchas 13

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Time sweet time Across Europe and the US, 5G out to upgrade their phones as soon the benefits they bring and whilst the networks only started rolling out in as they are available. Only 16% say providers get the tech in place, but densely populated areas in 2019, that ‘when 5G becomes available, then uptake will increase relatively whereas in some countries like South I’d buy a new device even if I wasn’t quickly. 45% of people feel like 5G Korea, 5G networks are already more eligible for an upgrade’, although this will take years to go mainstream and established. We still have a way to does differ by audience. It is going to this is true to a point. In real terms, go with 5G devices themselves too. take time for these devices to filter it will take another 4 to5 years for Devices people currently own are not through. us to really feel the effects of the 5G enabled – most people are not technology. Forecasts from Cisco aware of this at the moment. Smaller The networks are still small in scale predict that 5G will triple mobile numbers of 5G enabled phones do and it may take some time for the speeds by 2022 and command exist from the likes of Samsung, speeds and promises to be delivered a 42% share of all global mobile Motorola and the Chinese tech giants, outside of built-up areas. But, big connections by 2024. Ericsson but it is not until this year we will see investments are going in and 5G suggest 2025 for 5G to overtake 4G 5G phones from Apple and Google deployments will continue with in all aspects, by which point they – watch out for the Pixel 5 and the vigour across Europe. We expect the predict 2.6 billion subscriptions iPhone 12 Pro. The Samsung Galaxy uptake of 5G enabled smartphones worldwide. 4G is not going anywhere S11 is also coming. But the majority and technology to be slow at first soon and we will be living in a world of people say they won’t be rushing whilst consumers get to grips with with a mix of 4G and 5G for a good few years to come.

14 TRENDS 2020 and beadoptedbythemasses.5G waiting for somethingtoreally stick are available on,yetweare still and thedevicesthesetechnologies reality (VR)andmixedreality (MR) about augmentedreality (AR),virtual for years nowwehave beenexcited Thinking beyondthesmartphone, headset –withafocus ongaming, back thelaunchoftheirVRandAR around ARandVR,have pushed have been drivingtheconversation been waiting for, butevenApple,who could bethecatalystthatwehave get ready for aparadigm shift! devices are comingandweneedto glasses to2023.However, these – to2022,andthatoftheirsmart watching videoandvirtualmeetings 15

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IN THIS SPACE

01 01 09 VIRGIN TRAINS Trial on-board 5G.

02 QUALCOMM AND LENOVO Launch the world’s first 5G windows 10 PC.

03 KT AND SAMSUNG SMART HOSPITAL Fuelled by 5G, designed to power rapid connectivity between departments and the monitoring of surgery remotely.

04 VODAFONE’S 5G HAPTIC TACKLE Haptic ‘Teslasuit’ and 5G connectivity to enable two Wasps rugby players to feel the 04 03 force of a tackle despite being 100 miles apart.

05 CONNECTED AMBULANCES O2 and Samsung are working on 5G connected ambulances for the NHS.

06 O2 5G POWERED LIVE AD O2 captured live footage of the crowd at the 2019 Rugby World Cup, which was then broadcast instantly during a commercial break.

07 MEETIN VR Enables businesses to have meetings, presentations and workshops virtually and remotely.

08

PIRELLI CYBER TYRE 02 05 Tyre with inbuilt sensors can track and share road conditions and other driving data with your vehicle and other vehicles nearby.

09 M-BYTE By Byton. 5G supported car, including autonomous driving options, other 5G features and Alexa built-in.

10 5G MUSIC LESSON Musicians in different locations were brought together for the worlds first live streamed music lesson.

16 TRENDS 2020 10 06 08 07 17

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

Fig. 03 Uptake of devices dependant When 5G becomes available, I’d buy a new device on audiences and cost even if I wasn’t eligible for an upgrade The purchase of 5G enabled devices will be driven by particular All adults audiences, namely younger people 16% (and their parents!), those with high 16 – 34 tech confidence and those living 23% in urban areas that will see more 35 – 54 immediate benefits (See Fig. 03). If 19% devices and tariffs are made more 55+ affordable, this will do much to 8% accelerate the growth of 5G. Ericson’s Londoners latest report suggests that most 24% services providers are pricing their Kids in household 5G packages around 20% higher 25% than the closest 4G offering. There High tech confidence is concern from people that Apple’s 30% new 5G enabled phone will be, in their words, ‘basically, their most expensive phone yet’.

5G fuels the fire for a whole new world 5G, with its ability to support a multitude of connected devices in the same space, will provide the fuel for devices that have remained on the periphery or maybe that we haven’t even thought of yet. Self-driving cars, smart cities, connected homes, connected everything, will start to feel more real for people. Sensors will be embedded in almost anything, with the cost of this connectivity built into the products themselves. Perhaps it will be the carriers who will now have the data advantage. And think beyond just devices, 5G could bring about ways of interacting that aren’t even on our radar just yet, as 4G did before it. Haptics is an area 5G could invigorate, using tech to simulate touch, feel and movement. Whatever emerges, we will inevitably see a shift away from viewing information on a screen.

18 TRENDS 2020 for ourcars, andactasourpersonal Smartphones willhousethekeys controlled bysomethinginitially. Our smartworld willneedtobe worry for thenext5years atleast! in thefuture. Buttheyneednot idea thatmobilephoneswon’texist At present, 65%ofpeoplehatethe A new role for mobile time. Imaginesmarthomesthat switching betweenpartners inreal whilst keepingcostsdownby environmentally friendlyoption energy gridthatusesthemost roads inLondon, imagineasmart every morning,imagine quieter traffic jamonyour way towork Imagine notbeingstuckinthat are setfor bigchanges Our citiesandinfrastructure business modelaround phoneswill technology suchasAR.Andthe to more immersive experiencesusing phone willalsobecomethegateway artificial intelligenceinthecloud,our homes themselves.Fuelled by5Gand devices inourhomesandeven voice assistant,theremote for hospitals andambulancesthat vastly improve road conditions; jams andbreakdowns, whichwill informing themofaccidents,traffic talking tothecity’ssystemsand to seecars running ona5Gnetwork, challenges thatday.We canexpect and canrespond totheupcoming know theroutine ofitsoccupants and invisible devices. away from themtomore wearable on them,before eventuallymoving are settobecomeevenmore reliant massively overthecomingyears. We The role ofourphoneswillchange people simplypayingfor dataaccess. likely changetoo,takingitbeyond out. a reality once5Ghasbeenfully rolled the economy,butitcanonlybecome infrastructure, ultimatelybenefiting technology toimprove thiscountry’s to usehugedatasetsandsmart efficiencies, buttheUKhasplans not thinkingaboutthesekindsof are 5Gconnected.Mostpeopleare 19

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

VR/AR/MR... the next frontier Prepare for a resurgence of virtual, augmented and mixed reality technologies, bringing amazing new virtual experiences that move beyond gimmicks to add real value. Think big and further ahead to what this could be the start of…virtual work spaces, shopping in virtual reality, the ability to experience products virtually before you buy them. ObEN is a virtual avatar company that makes your avatar look like you in real life. We could even see holograms acting as store assistants, in place of people that can’t be there in person. Perhaps our virtual avatars become as important as our real selves as we spend more and more time in these 5G enabled virtual worlds surrounded by virtual entities (See Fig. 04).

Fig. 04 Virtual entities and holograms will be all around us

Definitely Not a chance 36% 64%

Content gets supercharged 5G is set to bring new levels of engagement with content. Storytelling will be enhanced via more immersive experiences. Live events, for example could include real-time commentary on sports players or instant goal replays. Content will also become more reactive and personalised, with different storylines or focuses evolving based on people’s moods, wants and needs. Thanks to streaming in the cloud, content production, e.g. news, could be broadcast instantly from any location, even remote ones, without the need for huge production budgets and infrastructure.

20 TRENDS 2020 under 35s. 5G, risingtoathird for parents and have heard abouthealthriskswith you wouldthink.Only26%say they of 5Gisnotimpactingasmuch Publicity around thehealthrisks 8 than peoplethinkitis… clearly meeting alotmore demands There isaclearmismatch,and5G individual servicesthat5Gdelivers. are prepared topayfor lotsofthe willing topaymore for 5G,however, Two-thirds ofpeoplewouldnotbe 3 for example. it butdon’tknowanythingaboutit, 4 in10saythattheyhave heard of of knowledgeisactingasabarrier. Almost allhave heard of5G,butlack 1 THE PEOPLE’SPOV think beyondthis. devices andare findingithard to things theyalready dowiththeir about theimpactof5Gon for thefuture. Mostare thinking the possibilitiesthat5Gcouldbring People are notnaturally imagining 9 considered either. multiple deviceshadnotreally been go. Latency and abilitytosupport and coverage everywhere they such asa100%reliable service of thethingsthatpeoplewant – how 5Gessentiallyprovides alot There isalackofawareness around 4 recognised. this. Otherbenefitsare notbeing are doubtingwhethertheyneed it willbefaster andmanypeople about 5Gispredominantly that The messagegettingacross 2 just thenext4G. tech, believingthat5Gis the ‘bigdeal’around the not really understanding particular are unimpressed, Female audiencesin 6 5 needed. start. More education andtimeis to itandthetechnologieswill kick All audienceswere muchmore open fully, theiropinionsturnedaround. information tounderstand 5Gmore Once peoplewere givenmore 10 to think5Gwillimpacttheirlives. Under 35sare over50%more likely of theimpact5Gisgoingtohave. Younger audiencesare more aware 7 older audiences. decreasing significantlyamongst access toa5Gnetwork, with this of peoplestatetheywouldlike At thispointintime,only38% 21

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G?OM5G AN INFLUENTIAL SETTING IMPLICATIONS FOR BRANDS

01 02 03 WIDER 5G OPPORTU- BRAND PLANNING NITY TO EVOLUTION ESSENTIAL CAPTURE How will your brands themselves Marketing will need to be a key evolve to fit into this new 5G enabled part of your business’s wider RICH world? implementation plan for 5G. AUDIENCE DATA A multitude of new devices, capturing new data points, will offer opportunities to capture rich audience data. 04 05 06 LOCATION EDUCATING DATA INSIGHTS THE ORGANISA-

MOVE UP NATIONEducation about 5G will be TION A GEAR imperative across both your ESSENTIAL A whole host of newly connected business and your customers. Data will continue to grow at an devices used in more places will drive accelerated pace. Evaluate how your a new wave and depth of location- data is organised and linked as this based audience insights. will be the foundation for all insights.

22 TRENDS 2020 10 07 PLORATION AND EX DISCOVERY PRODUCT FOR ROUTES NEW ESSENTIAL TATION EXPERIMEN- CONTINUED new technologies. audience’s interactions withthese providing valuable insightsintoyour and augmentedreality willbekey, areas ofinnovation suchasvoice Continued experimentationin buy yourproducts. for peopletodiscover, explore and 5G willoffer newandimmersive ways - 08 CONTENT MORE AND CONTENT CONTENT, message across. opportunities togetyourbrand consumption ofcontentwithmore 5G willencourage greater we are infor anexcitingrollercoaster ofaride. Possibly atotaltransformation ofmarketing itself. Holdontoyourhats, possible andwhoknowswhat5Gwillbringwithitinthelonger term. realise thepotentialof5G,othertechconcepts willbecomemore possibilities for boththeircompanyandmarketing. Aspeople Innovative brands andcompaniesare already startingtoexplore the these years oftransition wisely.Get5Gready now. Makeaplan.Invest. can already seefrom thepublic’sreaction. Itwillbeimperative touse and marketing perspective, buttheeffects won’tbeimmediate,aswe 5G isonitsway andthere ismuchtogetexcitedaboutfrom atech FINAL MINDSHARE THOUGHTS 09 make yourcontentmore engaging? up agear. Howcanyouuse5Gto Content engagementisduetoshift MENT ENGAGE- CONTENT CHARGED SUPER- 23

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING THE EXPERT’S POV

Anna Watkins UK Managing Director, Verizon Media

What impact do you think 5G will have on our world? We are calling it the fourth industrial revolution. When can change; from the speed of technology and connected you look at all the parts of life that 5G connectivity and devices, to how technology like AI revolutionises business mobile edge computing (i.e. having instant, low-latency, from supply chains to communications and everything huge throughput, cloud-based computer processing that in between; healthcare, gaming and entertainment, even will be available at the ‘edge’ of the cellular network – driverless cars, smart cities and transport networks. There hence the name – enabled by that 5G connection) will will be very few parts of life in a 5G connected society that impact, you start to see why. Everything we do as humans won’t be impacted in a big way.

How do you predict people’s behaviour will change as an impact of these new technologies? When you look at media and advertising, content time on glasses that will look like your typical pair of providers and brands need to be thinking and planning Ray-Bans, rather than clunky, chunky forms of previous now for how consumption will change. Device form incarnations. In everyday lives, people will expect ever factors are likely to change drastically, as processing more instant actions and reactions to their demands with power will not be as important in the device itself, given brands. They will always want a combination of written, all the big computing power will happen at the ‘edge’ audio visual and interactive experiences but the ways in of the cloud. So think smart glasses: highly engaging, which those will be produced, delivered and consumed beautifully produced AR experiences can happen in real will be hugely disrupted from the current status quo.

Do you think people know what 5G is set to bring about? Our own research showed that consumers were most view 5G changing the entertainment and media industry, excited about data speeds, higher definition content, also suggests people are really excited about what it consistent and quality video, improved connectivity, means for live events, like concerts and sports, as well faster and smarter wearables, and fewer or no dropped as eSports. 5G has the power to increase the speed and calls. But in a similar vein to the findings from your efficiency in the production of content, and of course the research, this really tells us that people are only really ability to create amazing interactive content experiences, thinking about the stuff they know about. They know and like those being tested at football stadiums and eSports understand that their phone is likely going to get faster events. But 5G will also enable the mass distribution and and the biggest short-term winner will be video, with interaction of those experiences, personalised and in real Ultra High Definition (UHD) 4K and 8K video becoming time. There is so much more that will happen that people mainstream and mobile. AR/VR entertainment will also will see and feel in their everyday lives, and much that benefit and research by IBM, looking at how consumers they won’t (or don’t) understand yet.

24 TRENDS 2020 involving mixedreality, ARand/orVRthatare considered Volumetric Videoasjustsomeexamples.Campaigns such asGeoLocationAR, shared VR/ARactivations and are core technologiesthatwillbesupercharged by5G, brands shouldn’tbegintheir‘road to5G’strategy. There Just because5Gisn’tmainstream yet,doesn’tmean important for brands totakeaway? What istheonethingabout5Gthatmost cameras willbeabletostream contenttotheedge/cloud and bebroadcast from remote locations,as8Kand360º High qualitycontentproduction willbeabletohappen through AIandreal-time rendering, andmuchmore. with voicecontrol activation onthosesmartglasses AR andVRinteractions streamed livetomassaudiences, deliver tailored contentexperiencesbasedonlocation,or technology canallowyoutoadaptcreative outputs, look attheOreo Superbowl socialactivity.Nowimagine experiences canprovoke highlevelsofengagement.Just We already knowhowtimelyadvertisingandbrand and how shouldwe bepreparing for it? How willallthesechangesimpactadvertising lasting relationships withconsumers ina5Gworld. these spaces,andthatwillbeinvaluable tobuilding the gameandunderstand howtogetinvolved willown commonplace, andvery soon.Brands thatare aheadof ‘niche’ rightnowwillbecomemainstream and rendering. 5G canimprove production efficienciesusing real-time and 100millionstreams, andisagreat exampleofhow single andvideohasnowhadover200millionviews for rapper, Lil Dicky,inlessthan4months.Thecharity lab asanopportunitytodeliveranimatedmusicvideo NFL intheUS.OurRYOT LAteamalsousedits5Gcontent 5G networks likeVerizon’s innovation partnership withthe for instance.Someofthisishappeningnowusingprivate trucks andmilesof cablingtogetthebestqualityoutput, through 5Gconnectivity–nomore needfor satellite 25

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING Sources

BODY.TALKS NOT ALL DATA NOT SOURCES ARE EQUAL

DATA SOURCES ARE GETTING EVER MORE INTIMATE, MOVING INTO THE REALMS OF BODY AND MIND

26 TRENDS 2020 and microphones, butalsoin 2020, cameras, GPS, gyroscopes, accelerometers smartphones already comeequippedwith by decreasing smartwatch prices. Our be up27%to$51.5billion,driven inpart 2020, globalspendingonwearables will devices weuse.Gartnerpredicts thatin are integrated more seamlesslyintothe as theyhave comedownincostand have alsobecomemore widelyavailable sophistication inthelast5years, butthey only improved intheiraccuracy and Thesetechnologieshave not and DNA. technology thatanalysesourfingerprints that candetermineourmoodand health data,facial recognition technology tone ofvoice,wearables thatrecord our voice assistantsthatcanrecognise our and itsresponses. We are nowusing providing information aboutourbodies behaviours andnowinto therealms of revealing search, purchase andlocation the form ofbasiccontactdetails,to moved from providing ourdatain As technologyhasevolved,wehave WHERE HAS ITCOMEFROM? Wa Calories Burnt lking +Runnin

g 21 5. 45 k cal factor intotheequation. area set for hugegrowth andsomethingto forecasts are allinagreement thatitisan growth estimatesinthisspacevary widely, careful consideration. However, although cases are equalanditisanarea thatneeds data source. Notalldatasources anduse early daysandvery muchdependsonthe do theyfeel aboutcompaniesusingit?Itis about providing thiskindofdataandhow with thesedatasets.Buthowdopeoplefeel the possibilitiesfor whatcompaniescando tenfold, butmore isyettocome,alongwith have already improved these technologies machine learninganddeepneural networks even more completepicture ofourlives.AI, too, companieswillbeprovided withan devices wehave aboutourperson grows have before. Asthenumberofconnected intimate datasources thantheyever features more frequently, revealing more People are nowusingthesedevicesand will shipwithfacial recognition technology. estimate that64%ofsmartphonesworldwide Counterpoint Technology Market Research 27

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

‘Data that my body generates’ Fig. 01 Some data sources are viewed more providing people with things they as ‘data that my body generates’ and not only find useful but also enjoy are more behavioural in nature. They using. Take Nike+, for example, and reveal changeable information such more developments are on the way 71% as how we are feeling, where we are with Adapt BB, Nike’s new smart agree ‘it would be a big scandal if a brand misused looking, how we are interacting with shoe that offers customers real- a customer’s information, our keyboards or our tone of voice. As time and personalised advice that so it’s in their interest to make sure they protect a broad comparison, people currently adapts as performance improves. our data’ think about these types of data in Google’s recent acquisition of Fitbit the same way they do location and is worthy of note, providing Google social data – they define me at a with a whole new type of user data moment in time but don’t define me to add to their existing data sets. Fig. 02 as a person. Most wearable owners had not really considered the implications of this Wearable/health data falls into acquisition or it did not bother this category and is the most them. Google are viewed as a ‘useful’ accepted form of ‘body talks’ data. company and there is a general 71% say that ‘I don’t think Whether it’s a smart watch, smart feeling that they (or any company) technology can accurately scale or a phone integrated fitness would be held to account if they did measure how I am feeling’ (up from 68% in 2016) tracker, people actively chose to anything bad with this type of data. use them and are clear about the (See Fig. 01) data exchange. There is an obvious and tangible benefit – improved And Google are not the only big tech health. And this benefit usually company vying for our hear trate, outweighs any concerns they might steps and sleep data. Add Amazon, have of brands (e.g. Nike, Apple and IBM, Microsoft, Facebook and Apple even now Google) having access to into the mix alongside others (mainly their data. Often these brands are Chinese companies). Amongst other

28 TRENDS 2020 accordingly. gestures, and adjusttheiroffering of voice,posture, expressions and our behavioural cues,such astone or callcentres takemore noticeof improve customerservice,asstores see thistypeofbehavioural data drivers looksleepy.We mayalso facial expressions todetermineif biometrics, for example,using uses felt more acceptable–incar mental healthbenefitsorpractical applications ofthedatathathad less obviouslyintrusive, more useful uncomfortable (SeeFig.03)but, trying toinfluencetheirmood was be useful. Theconceptofsomeone of itandhowtheinformation would and theyquestionedboththepoint they hadconsidered toanydegree Overall itwas notreally something (See Fig.02) making therightassumptions. that techmightnotnecessarilybe their moodbutalsothethought with thesources thatwoulddefine the conceptofmooddata,notonly insights. More peoplestruggled with and more accurate predictions and of thesethings,enablingricher will bedeterminedbyacombination people are typing.Eventually,mood expressions, toneofvoiceorhow data sources, suchasheartrate, also bymore reactive ‘bodytalks’ content engagementanalysis,but of signals,includinglanguageor could bedeterminedbyavariety ‘mood’ dataasaconcept.This actively projecting it.Bringon minds too–eveniftheyare not things aboutpeople’sframes of doing. We canstarttounderstand now notjustaboutwhatpeopleare And thisform ofdatacollectionis data toleadvarious healthinitiatives. things, manyare usingthistypeof Comfort withbrandsknowingthefollowing... Fig. 03 Full name DNA Fingerprint What youlooklike Where youarelookingonascreen Voice Mood Physical measures(e.g. wearabledata) Social mediaaccounts Search history Current location Work address Device usage Phone number Home address Purchase habits Date ofbirth Email address 7% 14% 14% 14% 13% 13% 15% 15% 16% COMFORTABLE 17% 17% 9% 20% 22% 22% 24% 27% 14% 20% 35% 22% 37% 22% 23% 22% 23% 26% 27% 20% 20% 26% 28% NEUTRAL 23% 27% 23% 25% 29

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

‘Data that defines me’ Other data types were viewed more as ‘data that defines me’. These were more physiological types of data – something that could uniquely identify people, such as facial recognition, fingerprint analysis, accents, gait or DNA. These were AT THE END OF THE DAY, viewed as fixed and unchangeable WHO IS KEEPING HOLD and naturally most concerns around this data type were about misuse and OF MY DATA? security. The risks of using this data were seen as greater, so the trade- WHERE IS IT STORED? off for handing it over to companies FACIAL RECOGNITION needed to be something particularly appealing. FEELS FAR MORE IMPORTANT THAN Facial recognition for identification purposes was the area that most A PHONE NUMBER had actively thought about. It is THAT I’VE MADE UP. high on the news agenda currently and people are also seeing more Male, 25–34, Non-London use of the technology around them, increasing awareness and comfort levels (See Fig. 04). Using your face to unlock your phone, Fig. 04 improve airport experiences and Facial recognition uses (% comfortable) help categorise photos, felt the most obvious and useful applications. To unlock your phone Other use cases were also appealing, 50% such as beauty brands like Sephora For boarding passes on flights using facial recognition enabled 47% apps to let you virtually try on As a form of official I.D make-up. Use cases will be even 46% more varied across a whole range of As a login for a website or app sectors, from automotive to retail. 42% That said, there will still of course To access your car or home be objections to facial recognition. 33% Groups are loudly voicing their To pay for goods or services opinions and regulation is stacking 32% up. In the meantime, companies Having other people use facial recognition on you are trying to publicise and improve 17% the security of facial recognition Using facial recognition on other people and make it easier for people to opt 17%

30 TRENDS 2020 data source, withtheintroduction ofthe with itasfeels likeamore established but peoplefeel slightlymore comfortable similar category of‘datathatdefinesme’ stores. Fingerprint recognition falls intoa based paymentsfor theirWholeFoods that theyare planningtointroduce hand- proposition butrecent reports suggest Amazon’s frictionless‘AmazonGo’store Facial recognition isabigpartof profile sportingevent. – thefirst time it hasbeenusedatahigh- Tokyo Olympicstospeedupeventsecurity topic in2020.Intelare evenusingitatthe will continuetobeontheagendaasahot report altogether!Andfacial recognition the West. TheEast…wellthat’sadifferent the possibilitiesoftech,especiallyin we are barely touchingthesurface with and realistically, atthismomentintime Pew Research toreach $9billionby2022 recognition software aloneispredicted by this complication,themarket for facial off –Facebook, for example. Despiteall out orturnfacial recognition features Security Fingerprint Recognition Facial Use nowforIDpurposes Fig. 05 20% 20% 40% 40% 0% 0% 2017 27% 5% of aconsideration. meets people’sneeds,itwillbecomemore Waitrose. Perhaps iftheoffering genuinely services from thelikesofYoSushi and from DNA-baseddatingtofood advice moving intothisspacecreating everything circumstances. Yet, wedoseecompanies themselves tohave, exceptinexceptional discussed andunnecessary for anyonebut as themostintrusive ofthetypesdata most uncomfortable about.Itisviewed DNA was thedata source peoplefelt and thesituation. according tothetypeofdatabeing used Comfort withitsapplicationsadjusts other uniquecharacteristics are involved. more aboutidentitywhenaccentsorany behavioural data,whentoneofvoice,and in people’sminds.Itisbothaform of across bothtypesofdatacategorisation In termsofperception, voicedatasits (See Fig.05) and itsusebeingmore widespread. fingerprint sensorontheiPhonein2013 2018 33% 9% 2019 36% 14% 2020 38% 16% 31

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Opportunities for brands and advertising For marketers, this type of data other marketing perspectives, we past music choices (and Snickers provides valuable audience context see fewer but increasing uses of attaching ‘You are not you when and used well can result in more this type of data, which doesn’t you are hungry’ messaging to more relevant, personalised or emotionally personally identify anyone – a off-piste music choices!). In addition, engaging ads that appear at the right big no for compliance with GDPR. the New York Times have launched time and in the right context. But, More are starting to use ‘body talks’ ‘Project Feels’ where ads are shown there are limits, and expectations of signals as an integrated part of an based on mood, determined by what brands should and shouldn’t ad campaign’s creative idea. For content read previously. There are do with this type of data, which are example, Mindshare and Jaguar’s not many examples using actual even more apparent when it comes ‘Feel Wimbledon’ campaign that ‘body talks’ data yet but it is a nod to marketing. It is early days and for works where there are smaller to where this type of psychographic good reason. numbers of people actively agreeing targeting could go next, with more that their data be anonymously data sources at our disposal. Younger Probably the most established use aggregated and publicised. audiences were more open to this of this data is for market research type of personalised offering and ad and testing. The monitoring of But, mood and the prediction of targeting versus other age groups. brain responses, eye and facial emotion, is the space we will see reactions and other bodily responses brands experiment with the most in And the payoff for getting this right has allowed us to consider more the immediate term. We are already could be big. Yahoo’s Receptivity in-the-moment, instinctive and starting to see brands using other of Emotions study suggests the subconscious cues for audience less direct indicators, such as past impact of digital advertising could be insights. AI is also taking this data behaviours to determine people’s improved by up to 40% if consumers a step further in a bid to predict mood – Spotify creating playlists are in the right mood. possible outcomes for brands. From around your mood dependent on

Fig. 06

Top 3 reasons Top 3 reasons

For those that were For those that were uncomfortable with brands comfortable with brands using using mood data... mood data… 38% AGREE ‘I TRUST 01 Seems unnecessary 01 It’s not something that is BRANDS TO permanent 02 Too intrusive KEEP MY 02 I can’t see it affecting me INFO SECURE 03 It’s private information negatively AND NOT 03 Just not bothered about ABUSE IT’ companies knowing this

32 TRENDS 2020 from amarketing perspective. big plansfor thisdatayettocome happens, thetechcompanieshave ads directly here aswell.Whatever feels unlikelythatGooglewillpush Following itsacquisitionofFitbit, it own employeehealthcare clinics). have bothstartedbuildingtheir (Incidentally, AppleandAmazon or bookadoctor’sappointment. you togothenearest chemist of yourvoicebuttheymaywelldirect products directly basedonthetone that Amazonwilltry tosellyouflu obvious. Inthefuture, itisunlikely things are justtoointrusive andwell… 06). But,there willbealinewhere what theywoulddowithit.(SeeFig. because theyfindithard toimagine for brands tohave thisdata,inpart people feel likeitisnotnecessary rightly) closetotheirchest.Broadly their cards (andtheirdata,quite area buttread carefully andkeep fewer asbrands experimentinthis to market topeopledirectly are even types of‘bodytalks’databeingused Beyond mood,examplesofother BOOM. THAT’D BEGREAT.’ LISTEN TO SOMEOFTHIS.” YOU’RE INABADMOODTODAY, “HI RACHEL, FURTHER WHERESPOTIFY GOES, FOR ITTO GOONESTEP ‘I’D ACTUALLY LOVE Male, 25–34,Non-London data typesresponsibly. (SeeFig.07). also thattheycanhandlethisandall something for theuser’sbenefitbut only toshowthemtheyare doing work hard togainpeople’strust, not is anotherstory. Brands willhave to the timetodigestthisinformation type ofdata,whetherpeoplehave of how. Butnodoubt,aswithany was beingused andanexplanation They wanted clear reasons whyit ‘opt in’totheuseofthistypedata. was amustfor peopletobeable parties withouttheirknowledge.It companies were passingitontothird who hasaccesstoitandwhether brands mightstore thistypeofdata, were lotsofquestionsaround how marketing was concerned.There concern for people,especiallywhere data withoutpermission–amajor ‘processing’ andsharingofbiometric here intheUK,withpreventing the GDPR isalsoamassiveconsideration Fig. 07 say ‘I’dratherbrandsknow info aboutmeanduseitto versus offeringsomething giving awaywhenmaking tailor whattheyshowme irrelevant’ –risesto36% always clearwhatyou’re me isgoingtobeused exactly howinfoabout agree ‘I’dlike toknow agree ‘Idon’t thinkit’s and recordedbefore certain agreements 29% 76% 75% I shareitfurther’ with brands’ for 16-34s 33

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IN THIS SPACE

01 02 AFFECTIVA AUTOMOTIVE AI system, using cameras and microphones to help determine a driver’s emotional state.

02 SNAPTIVITY Robotic camera system that captures the emotions of fans in large venues, such as cheering, scarf waving or groans of disappointment.

03 SENTIANCE Company that specialises in turning IoT sensor data into behavioural insights.

04 VOO 04 01 Telecomms company creates voice activated online banners for gaming that respond to moments of rage.

05 NIKE ADAPT BB SMART SNEAKER Not only self-lacing but also creates data about your running experiences that can be used to get personalised running advice from Nike.

06 WAITROSE In-store DNA food advice service in conjunction with personal nutrition firm DNANudge.

07 FACING EMOTIONS APP 03 Huawei launched an AI-powered app called Facing Emotions that translates emotions into sounds for the blind.

08 THE MOODIE COMPANY In-store facial recognition technology that analyses customers in-store experiences.

09 TEPLO Smart teapot that brews tea according to people’s emotional state, which is determined by built-in sensors assessing heart rate, body and room temperature.

10 PETZ Online facial recognition tool with their ecommerce site that analyses dogs’ interest in toys, bones or balls!

34 TRENDS 2020 09 08 06 05 07 10 35

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

Regulation set to play a pivotal role Regulation of this type of data will take many forms and differ markedly across the world. It will make people feel more reassured but the fact that it is inconsistent could cause a problem if devices are made in China, for example, but shipped to other countries where rules are tighter. We have already mentioned GDPR in Europe but in the US, laws differ by state and even city (mainly when it comes to the use of facial recognition) and are subject to constant change. More regulation is expected and will only get more complicated as we use more devices and collect more data of different types. A highly regulated environment may restrict innovation in this space and the number of companies that get involved, as brands will need to have the means to navigate the legal complexity. Watch out for some high-profile lawsuits, no doubt involving the big tech companies. At present the use of this type of data is not something people really consider in any depth. It is only when prompted to think about it more carefully that their concerns come to the fore. Any big public data scandals in this area due to unacceptable or bad data use will heighten awareness of this topic and open it up for scrutiny, as happened with Cambridge Analytica.

Fig. 08 Comfort levels with the tech and Comfortable with brands having my... attitude to data need to be PHYSICAL MEASURES considered (E.G. WEARABLE DATA) MOOD Over time, as comfort with the technology sets in, the use of this data will become more acceptable. (See Fig. 15% 22% 14% 23% 08). We can already see this if we cut the data by those more confident with All adults Confident with All adults Confident with technology technology technology currently. As all types of data are used in more innovative and WHERE YOU ARE LOOKING rewarding ways (location and social VOICE ON A SCREEN data, for example), brands having access to ‘body talks’ data will not seem quite so daunting. With this abundance of 14% 21% 14% 22% data, we could also see a wave of data empowerment as consumers gain All adults Confident with All Adults Confident with technology technology confidence and are provided with access to tools that help them manage their own WHAT YOU LOOK LIKE FINGERPRINT data and who has access to it. People that remain uncomfortable with the tech will need to be provided with ‘opt out’ 13% 20% 13% 19% solutions and may go as far as using tech that blocks facial recognition sensors. All adults Confident with All adults Confident with technology technology

36 TRENDS 2020 through allthisdata,linkingitto will allhave upon ourperson. Sifting cameras andsmartglassesthatwe and clothing,body-wornsmart identification –thinksmartshoes our bodiesanduniqueforms of way, allproducing more dataabout connected devicesare ontheir cloud, amultitudeofadditional Fuelled by5GandAIinthe data iscomingourway An influxof‘bodytalks’ Comfortable with Fig. 09 20% 10% 15% 2017 13% 14% type ofdatawillbepartandparcel such asvoice,gesture andgaze,this and viamore natural userinterfaces, with technologyare ‘allaround us’ computing where ourinteractions as wemovetoanera ofambient any data.Further intothefuture, remain ahugechallenge,aswith most meaningful way touseit,will other datasources andchoosingthe 2018 15% 17% 2019 17% 17% time. (SeeFig.09). of implantablesandingestiblesover any more comfortable withtheidea mix! Although,peoplehave notgot chips andbrain interfaces intothe things suchasnanobots,embedded this isbefore wehave evenadded of oureveryday interactions. And 2020 Ingestibles Implantables 12% 11% 37

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

The big tech companies will be heavily involved For the big tech companies, data is they expand their propositions, not entertainment. A large number of their lifeblood and this kind of data only does it offer them inroads into patents have already been placed by is gold. They are already amassing different markets such as health some of these companies, revealing large databases of facial and voice and wellness, but it also offers the nature of their intentions. Apple, recognition data as people use their opportunities and influence in for example, is looking at additional products, which could be used for pretty much every other category biometrics for its devices, such as a multitude of things over time. As from retail through to travel and pulse or skin texture patterns.

Data security will be a focus and some categories and brands will instil more consumer confidence Many companies will be making huge efforts to clamp will also heavily depend on the proposition, the category down on the security of this data, aiming to make it less and the brand itself. Facial recognition, for example, has hackable, less susceptible to fraud and more secure to more obvious benefits for some categories, such as travel. store. Heightened security of the devices that collect People will have more confidence that particular sectors this data themselves will also be a focus. This may go will protect their data more thoroughly, such as the a long way to allay people’s concerns around this type finance sector. This extends to brands that may have more of data but will need to be adopted in a consistent way established and trusted relationships with people when it and on a mass scale. Reception to the use of this data comes to accessing their data.

38 TRENDS 2020 abuse it’. to keepmyinfo secure andnot saying thatthey‘trust brands audiences withonly38%currently any ‘bodytalks’dataiskeyfor all Reassurance aboutthesecurityof 8 DNA theleast. accepted form of‘bodytalks’data, Wearable/health dataisthemost 6 necessarily want orneed. extra things–thattheydon’t simply goingtobeusedsellthem Concerns are highthattheirdatais companies anytypeofdataaccess. are more hesitanttoprovide Those withlowconsumer confidence 1 THE PEOPLE’SPOV would actuallydowithit. people were lesssure whatbrands location andsocialdata,although data was viewedinasimilar veinto Use ofwearable dataand‘mood’ 7 facial recognition ID. fingerprint IDand16%activelyuse 38% saythattheyactivelyuse recognition isontherise.Currently Use offacial and fingerprint 4 statement. another 41%feel neutral aboutthis the way companiesusemydata, 41% thinkthatGDPRhasimproved Feelings aboutGDPRare mixed. 2 more useful andrelevant. are ano-go for anyaudience.Think talks’ datafor marketing purposes ‘Obvious andsalesy’usesof‘body 9 5 generates’. they doabout‘datathatmybody to ‘datathatdefinesme’than People feel more strongly opposed 3 involve ‘bodytalks’dataare amust. Clear and‘optin’experiencesthat 10 their liveseasier. and alsoliketheappealofitmaking the technologythatgenerates it data. Theyare more familiar with receptive totheuseof‘bodytalks’ who shopmainlyonlineare more Parents, youngerpeopleandthose

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AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IMPLICATIONS FOR BRANDS

01 02 03 INCOMING: BODY TALKS ESTABLISH A MORE FOR CULTURE DEVICES MARKET OF AND ‘BODY RESEARCH INNOVATIVE TALKS’ The use of ‘body talks’ data for DATA USE market research, insight and testing DATA will continue to be a growing area for Generating a culture of innovative More human context is on its way brands. Are you using it to the best of data use will be key before using this in abundance. This includes further its ability? Do you know how people type of data. insight not only into what people are responding or likely to respond to are doing, but also how they are your ads emotionally? feeling, with the opportunity to link the two and create more relevant and engaging communications. 04 05 06 THINK BODY TALKS UNDERUTILISED MEASURING ACROSS SIGNALS EMOTIONAL THE Language, semantics and social RESONANCE data are underutilised signals when DECISION it comes to determining mood and Emotional resonance will become mindset. even more important. Emotionally JOURNEY resonant platforms like AR and VR Map out the moods and mindsets are coming. How will you measure you want to engage people in and emotional reaction to this content? for different parts of the decision journey. Consider the data signals available to you and how these all correlate. Could you use them more creatively?

40 TRENDS 2020 10 07 09 SHIPS? PARTNER- IMPORTANT TRUST BASE OF ESTABLISHED would bebeneficialinthisarea? Are there anybrand partnerships that user benefit. guidelines andregulations andprovide clear clear andoptinexperiences,thatadhere to Any useof‘bodytalks’datawillrequire REGULATIONS WITHIN EXPERIENCES CLEAR, OPTIN the fact thedatawillnotbepassedon. along withreassurance aboutsecurityand An establishedbaseoftrust willbekey 08 nation. the actionsormood/emotionof interesting territory andcouldreflect aggregated behaviour oropinionis Using thisdatatopulloutacollective, COLLECTIVE THE ASSESSING the mostexperimentationfrom immediate term,wewillsee major considerations. Inthe and datasecuritywillremain me’, regulation, ethicalconcerns generates’ or‘datathatdefines Whether it’s‘datathatmybody an easyproposition tonavigate. but itisbynomeansgoingtobe right thingsatthetime, speak toaudiencesaboutthe opportunity andcontextto this dataprovide agreat From anadvertisingperspective, first-party dataadvantage. those thatdowillhave areal are superkeentoacquire and something manycompanies This typeofdatawillbe THOUGHTS FINAL MINDSHARE of thistrend isfelt more fully. data use,before thehugeimpact ingratiate aculture ofinnovative now toexperiment,prepare and brands candowithdataright But, there are lotsofthings to changesuddenlyovernight. people’s viewsare notgoing Plus, it’sacomplextopicand tech developmentstocome. with manymore devicesand when itcomestothistopic, beginning ofalongjourney are onthetable.We are atthe weather data.Richrewards from contentengagementto data signalsattheirdisposal, and emotion,utilisingallthe brands around thearea ofmood 41

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING THE EXPERT’S POV

Alison Davis UK Industry Lead – Telecommunications, Media & Entertainment – IBM

How is data such as this adding value to consumers lives? As up to 90% of people say they’ve closed a website personal data points, this line is going to be increasingly when it’s carried an ad for something they’ve already tricky to tread, but if an algorithm works out that I might bought, you could argue that we, the purveyors of the be out of coffee pods a month after I’ve bought a new digital advertising are getting something wrong. But isn’t machine, and also ‘understands’ that sustainability is a personalisation the holy grail of data monetisation? As core value of mine, I’m not going to complain if a timely AI enables us to understand an ever more complex view ad with a discount on a new environmentally friendly of every individual, the answer is yes... but... only if we capsule drops into my line of sight. I will complain if the maniacally focus on the most basic rules of advertising: same brand shows me the same ad 20 times over the will the way your campaign is run, enhance or detract next month. The first experience enhances my brand from consumer opinion of your brand? With ever more sentiment, the second detracts. Simple?

Do you think people are fully aware of how the data is being stored and used by brands? If you do, do you think they care? In a report by Amnesty International in Dec 2019, 74% of people surveyed across 9 countries said they were concerned about how Big Tech (Google, Facebook, et al) collected and used data, with the right to privacy being the biggest issue. So while it can be argued that consumers aren’t fully aware of how data is being stored and used by brands, as these giants account for 70% of the digital ad market, it’s the way these platforms collect, use and enable brands to access customer data that should have the focus of marketers’ attention.

Should brands be using ‘body talks’ data and if so how can they go about using it in an acceptable way? Brands should sense check their use of new first-party message where the data was collected – the context? No. data against the 3 Cs – Consent, Context and Customer Has this left you with a sense of trust in the brand offering Experience. Imagine you’d just learnt from your doctor the product? No. If, however, you go online to search for that you had an heart issue that needed urgent attention, home-tech that can help monitor your condition, and and as you digested this news, you’d shared it online in you’re offered a chance to be targeted in this way, and what you believe is a private message. Then you go online you accept... perhaps with an additional discount being and are served an ad for heart monitor. Have you given available if you share more info about your condition so consent for this personal medical info to be used? No. Has the products are suited to your need, the answer to each the brand taken into account the private nature of the of the 3 Cs is different.

42 TRENDS 2020 consent, contextandcustomerexperience. confidence inadtechaswelooktomachinesimprove surely beingthemostsimplefix–toencourage consumer up thedigitaladvertisingguidelines–frequency capping platforms touse.We mustalsowork togethertotighten at theforefront oftheirdecisionsaround whichdataand As ever, brands mustkeepcustomerexperienceandtrust most importantfor ustotakeaway? What istheonethingaboutthistrend thatis ad targeting. Thiswouldmean thedawn oftheera of data againstdynamicbusinessrules, inthiscase,for say whetherthemachinecanandshouldusethis by machine,andsmartcontracts settingrules that enabling personal datatobecollectedandencrypted over thelast18months,itdoesholdpromise of While blockchainhashadabadrap inthe‘pitofdespair’* the future? any specificareas we should we watching for When itcomesto‘bodyTtalks’data,are there (*Pit ofdespairasdescribedbyGartner, HypeCyclefor Emerging Technologies) advertising. correctly, candrivetrue value for consumers from digital could eversee,misuseorabusethedatathat,ifused smart adtech,underpinnedbythefact thatnohuman 43

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WITH A GROWING ARMS RACE BETWEEN STREAMING COMPANIES WISHING TO MONOPOLISE PEOPLE’S FREE TIME, WE WILL BE LEFT WITH MORE CHOICE OF CONTENT THAN EVER, BUT WILL THIS BE TOO MUCH FOR PEOPLE TO HANDLE?

44 TRENDS 2020 when welookat thetrajectory ofthemarketplace, which new servicestothemixnextyear. Aninteresting finding the demand;only8%ofalladults are planningtoadd seems likethesupplyofstreaming mediawillsoonexceed 5G willmeanthatstreaming ishere tostay.However, it With itsfaster speedsandmore instantconnectivity, reach justover7in10people. done on-demandhasincreased by9%sincelastyear, to proportion ofpeoplestatingmosttheir TVviewingis year. TVviewingisalsoshifting–among16–34s,the audio, and71%are planningtocontinuedo sonext for orusearound 3to4subscriptionsacross videoand Our research found that,onaverage, peopleintheUKpay most peoplementionavariety ofstreaming platforms. When askedwhere theygofor entertainmentthesedays, access contentwhenevertheywant, wherever theyare. And peoplehave grown very accustomedtobeingable services have emerged, wishingtoreplicate itssuccess. a decadeago,andsincethennumberofsimilar-style for 22years, launchingitsstreaming servicejustover with more choiceandflexibility.Netflixhasbeen around alternatives totraditional mediathatpresented people Gone are thedayswhenthere were onlyahandful of Exciting timesahead. the fate andprofits ofthebig players inthemarket. the peoplewilldecidewhatworks for them,determining entertainment? Onethingweknow for sure isthat only people in?Andwhatdoesthismean for thefuture of content theywant? Whatwillittakefor servicestolock prepared tostretch theirwallets togetaccessthe many servicescanpeopletakeon?Andhowfar are they But somebigquestionsare yettobeanswered: How technology andpeople’sdesire for on-demandcontent. We’re enteringanewphaseofcompetition,onefuelled by their contentiswhatsubscribers are willingtopay for. arms race tosecure thebestproduction talent,ensuring more choice;for thecompaniesgrowing budgetsandan media inthefuture. For people,thismeansincreasingly are bringingaboutbigchangesfor howweparticipatein wars alsoreach across music,podcastsandgaming, not onlylimitedtothevideolandscape–thesestreaming Disney+ issettolaunchintheUKspring.Andit’s the endof2019,andthere are more tocomein2020– New serviceslikeAppleTV+andBritBoxlaunchedat companies prepare tofight for every minuteofourtime. is becomingevenmore crowded, asnewandexisting WHERE HAS ITCOMEFROM? 45

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More content, better content, too much content? From an entertainment provider’s beginning to feel overwhelmed by ways of viewing – 4 in 10 people point of view, the problem with our choice, particularly when it comes to now admit ‘regular’ TV feels poor in free time is that it’s finite – any time video. Always having something new comparison. With media giants like gained by one activity is at another’s to watch is one of the main reasons Disney, Warner, NBCUniversal and expense. As Netflix founder Reed people buy into video streaming Netflix set to increase their budgets Hastings puts it ‘We’re competing services like Netflix, Sky or Virgin, yet even further over the next 5 years, with sleep. Sleep is my greatest over half of the people we surveyed any content providers hoping to enemy.’ agree that there is so much content engage viewers will need a thorough out there it’s getting hard for them understanding of audiences to Companies are doing as much as to decide. remain relevant – and that means they can to ensure they are the ones digging into the data. capturing our attention; subscription The high level of investment into services allow us access to vast shows from streaming companies Younger generations are slowly libraries of content, with new releases like Netflix has undoubtedly moving towards cutting the cord coming often enough to make them contributed to this feeling. The cost altogether and it is unlikely they look fresh. Big players like Netflix of programming has ballooned as will want to come back (see Fig. and Spotify are investing heavily, viewers have grown accustomed to 01), whereas older generations are making deals and acquiring smaller original content that’s movie-quality beginning to question whether the businesses to make sure they can and as services have competed for value they get from pay-TV providers produce exclusive content that keeps the rights to re-runs of hit series. The is worth the money. people hooked on their services. So, over-abundance of options is also it is hardly surprising that people are having an effect on more traditional

‘I FEEL LIKE NETFLIX KEEP RELEASING SOMETHING NEW ALL THE TIME. MY TO WATCH LIST IS GETTING BIGGER AND BIGGER, AND I CAN’T KEEP UP’ Female, 45–54, Manchester

46 TRENDS 2020 Fig. 01 for Virgin?” Isaid,“We onlyever ‘I saidtomyhusbandtheother Female, 45–54,Manchester day, “Whyare we stillpaying not watching regular TV of 16–34scanimagine of 16–34shave never consider payingfor a at allin5years’ time paid andwouldnot 56% watch Netflix.’ 13% TV licence favourite programs. subscriptions towatch alltheir to payfor afistful ofstreaming viewers willfindtheymighthave services. Asadirect consequence, advantage when launchingtheirown as StarWars andFriends totheir can usetheappealoftitlessuch companies likeDisneyandWarner Netflix around 5years ago–meaning back ondealsmadewiththelikesof owners are startingtogettheirrights have hitawindowwhere content For thefirst timeina few years, we of libraries across different platforms. beginning toseeisthefragmentation players enter themarket, whatweare started outasaggregators, asnew While moststreaming companies engagement overtime. to sustainhighlevelsofaudience come downtoaplatform beingable disappears –and itwillultimately likely dictatewhoremains andwho production anddistributionwill difference ininvestment intocontent this crowded marketplace, the viewing experiencefor people.In enables more choice,andasuperior this startingtoshift,especiallyifit the likesofAmazon,wemightsee broadcasting rightsbeingsoldto to theirpay-TVpackages.Butwith content areas thatkeeppeopletied Sport isoneofthefew remaining decision. services before theyreach afinal offer is,andwillseektotrialanynew happen, howgoodthecontenton people are waiting toseewhatwill return todigitalpiracy. Asofnow, easiest solutiontothismightbea among youngerpeoplethatthe emerging, andthere isasentiment expensive withsomanynewservices they want towatch willgettoo people agree accessingeverything is daunting.Justundertwo-thirds of to payfor more servicesinthefuture maths –buttheprospect ofhaving and peoplerarely sitdowntodothe a few poundshere goesunnoticed, not fully hithomeyet–spending juggling several subscriptionshas that thefinancialimplicationsof a lotfor media.But,wealsosaw put, peopleare notprepared topay company lostsubscribers. Simply seen itsshares drop by13%asthe monthly pricesfor Netflixhas media spend–a$2increase in incredibly resistant toincremental for itisadelicateone.People are to contentandwillingnesspay balance betweenwanting access attachment toentertainment,the While there isanenormouscultural 47

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Ecosystem wars In this scenario the efficient use The move into video gaming from of content is to use it to drive the big four is also likely to be monetisation elsewhere – the underpinned by a business strategy direction most new entrants to the of driving categories with bigger market seem to be heading in. For economics. It’s only a matter of time big players like Apple, Amazon and before all entertainment services Disney, what the media has dubbed from one provider are all bundled up the ‘streaming wars’ seem merely a and offered to people with a discount battle in the greater ‘ecosystem war’ – the future that tech companies – one won by synergy and alternative seem to be strategically planning for sources of revenue (see Fig. 02). (see Fig. 03). For people, the benefit Amazon, Apple and Google have of service aggregation in this case is each been operating structurally clear: more value for the money they unprofitable music services, yet are prepared to spend, and a more the money they lose per subscriber seamless user experience, which is is outweighed by the revenue becoming increasingly important. generated elsewhere – and we expect to see the same dynamics unfold in video streaming.

Fig. 02 Key player breakdown – Subscription VOD models

ROLE OF SVOD ROLE OF SVOD ROLE OF SVOD ROLE OF SVOD Entire business Enhance value Anchor to ecosystem Anchor to ecosystem proposition of Prime bundle Accumulating data on AMBITION IN VIDEO Drive adoption of broader audiences Maximise ownership platforms AMBITION IN VIDEO of video viewing time Deliver as much AMBITION IN VIDEO Replace non-live AMBITION IN VIDEO premium video viewing Be the core of the TV at large Deliver as much as possible Walt Disney Company premium video viewing – maximising ARPU as possible elsewhere SVOD PRICING SVOD PRICING STRATEGY STRATEGY Tiered approach, SVOD PRICING Free with new Apple SVOD PRICING cheapest £5.99 STRATEGY Device STRATEGY per month Free with Prime (£79 per Free for students on Available in the UK year / £7.99 per month) Apple Music plan from March 2020 PRIMARY PROFIT Free 30-day trial, Free 7-day trial, US subscription is $6.99 / DRIVER £5.99 per month after £4.99 per month after $12.99 with Hulu & ESPN+ Prices Subscribers PRIMARY PROFIT PRIMARY PROFIT PRIMARY PROFIT DRIVER DRIVER DRIVER Add-on video Add-on video Add-on video and subscriptions subscriptions content subscriptions Content transactions Content transactions Disney-related Device sales Device sales transactions Ecosystem Ecosystem Ecosystem bundle

48 TRENDS 2020 ‘When we winaGoldenGlobe, it helpsussellmore shoes’ Jeff Bezos,AmazonCEO

Multimedia entertainmentbundles Fig. 03 services underonebrand name The bigtechcompaniesare movingtowards consolidatingmultimedia to stay. the bigcompanies,streaming ishere investors. Butoneway oranother, for struck thatsatisfiesbothusers and marketing spend, untilabalanceis levels ofinvestment intocontentand made around pricing,catalogue, can expecttoseeadjustmentsbeing sell more. Overthecomingyears we Disney (toanextent)winwhenthey more subscribers, Apple,Amazonand things –Netflixwinswhenitgets game, ‘winning’willmeandifferent everyone isplaying adifferent won’t thriveinthisnewworld. Since there isnoreason allthekeyplayers more importantly,inobjectives–so in monetisationandpackaging,but, diversity thaneverbefore –notjust are seeingfar more businessmodel mean theothers are doomed.We the successofoneservicedoesnot Media isnotazero-sum market, so 49

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All for one, and one for all Today, the curation of people’s several subscriptions may still come entertainment experiences requires cheaper than a pay-TV package – but much more effort than ever before, the managing of it all is what makes and in this new multiplatform them feel uneasy. world, it is only going to get more challenging. Most of the services The viewer experience in a being launched are coming to solve fragmented landscape will also an internal business need, rather increasingly mean contending than any unmet audience wants – with multiple apps, with different people don’t need infinite services watchlists and interfaces, so it’s – and the prospect of having to natural the idea of having one manage numerous accounts and provider for everything is becoming payments is a source of growing more and more appealing to people frustration. Climbing costs are just (see Fig. 04). part of the issue for people – as a few of our respondents pointed out,

Fig. 04 ‘I would like one place where I can see everything I have access to across all of my entertainment subscriptions’

‘It’s just the thought of another direct debit, I have plenty already all coming out on different days, 58% 68% 69% 76% EARLY it’s hard to keep track of’ ALL ADULTS 16–34s PARENTS ADOPTERS Female, 25–34, Manchester

‘THEY TALK ABOUT ANTI-MONOPOLY, BUT I’M NOT BOTHERED. LIKE, HONESTLY, LET’S JUST HAVE ONE PLACE TO GO TO AND I’LL PAY THEM WHATEVER THEY WANT’ Male, Cardiff, Majority

50 TRENDS 2020 Female, Early Adopter, London WHY WOULD YOU NOT?’ DISNEY, WARNER BROTHERS, WHERE YOU COULDGETAPPLE, IF YOU COULDGETAPACKAGE TOGETHER. AND YOU’RE NOT TEAMINGUP IF YOU’RE THESEBRANDS ‘YOU’RE MISSINGATRICK apps intotheirinterface. Amazon able tointegrate various streaming huge devicepenetration andare or Amazon,astheyalready have manufacturers, likeSamsung,Apple a viewitmightbetheTVordevice best positionedtodothis–there is The questionremains astowhois only accessthemfor acustomfee. want from different providers and or tobeablepicktheshowsthey picked alltheirfavourite content, love tohave one servicethathand- service. OverhalfofUKadultswould choice anddeliveramore customised appetite for curators tohelpnavigate care towatch –andthere isdefinitely lots ofshowsandmoviesthey’llnever might onceagainenduppayingfor With multiplesubscriptions,people easier, more straightforward way. manage theirsubscriptionsinan experience for peopleandhelpthem to work hard tosimplify theuser entertainment spacewillhave is clear:companiesplayinginthe bundles emerge ornot,onething of curators orcross-provider Whether wewillseethesekinds simplify payments. one simplebilltostreamline and Netflix intheirpackageandnowoffer as SkyorVirgin, whohave included could alsobepay-TVproviders such having toswitchbetweenapps.It the content available to them without interface sothatusers canbrowse all in thisdirection, offering oneuser and Applehave already takenastep 51

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01 07 SPOTIFY, HULU & SHOWTIME BUNDLE For a short time, Spotify offered a ‘Premium Student’ plan in the US, allowing users to add-on Hulu and SHOWTIME for free.

02 SYNAMEDIA Identify and analyse unusual sharing activity across accounts, giving subscription service providers an opportunity to tackle password sharing.

03 TRACK MY SUBS A subscription management tool that sends payment reminders and helps people track their subscription expenses.

04 FREE TRIAL SURFING APP 03 Virtual credit card and invented name to sign up for a free trial, then automatically cancels subscriptions at the end of the offer.

05 RYFF Technology that can identify objects in a video scene and replace them with branded products that can be tailored based on customer data.

06 HULU REWARD BINGE-WATCHING WITH NEW AD FORMATS Binge-watching of a show is met with the reward of commercial-free or personalised ad experiences. 02 07 PLEX A new ad-supported movie streaming service available in over 200 countries.

08 TORQUE STREAM HATCHET One of the leading suppliers of streaming data to key players in the gaming and esports industries.

09 UNIVERSAL MUSIC ARTISTS APP Artists can access data and actionable insights on their music from major streaming platforms, as well as social media.

10 APPLE TV+ GOLDEN GLOBES The first streaming service to earn nominations in its launch year, including Best Television Series and Best Performance for The Morning Show.

52 TRENDS 2020 08 05 10 04 09 01 06 53

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‘The great un-bundling could give birth to the great re-bundling’ The ‘great re-bundling’ of Matthew Strauss, Comcast entertainment In the history of media, we have seen content move from bundled (albums, print subscriptions), to unbundled (single songs, free access), and transition back to centrally bundled (digital subscriptions). So, it’s only a matter of time before the fragmented market returns to bundling again, and there are a few ways that could unfold:

• The tech companies re-bundle content across entertainment categories: we’re in the early stages of video games evolving into Netflix-style subscription models as opposed to single-transaction businesses – we can expect these to be added to existing video and music propositions to make a cost- effective ‘ecosystem’ bundle.

• While the big tech players fight it out with different ecosystems, there might be opportunities for independent market leaders in each category to collaborate and compete more effectively. Think Netflix partnering with Spotify and a news/gaming provider.

• The rise of aggregators, in the form ‘I WOULD LOVE of devices or operating systems that offer a simpler, integrated TO THINK THESE solution. This might come from existing cable providers like Sky COMPETING and Virgin who already have deals COMPANIES in place with content owners like Netflix and Disney, or device COULD COME producers like Apple, Samsung or TOGETHER AND Amazon – the latter has recently announced the arrival of its own STREAMLINE THE OLED TV. The battle in this case will be for ‘owning HDMI1’ – and OPTIONS FOR being the default and dominant TV CUSTOMERS’ experience in people’s homes. Male, Parent, Edinburgh

54 TRENDS 2020 Fig. 05 Stranger Things. Coca Colaappearinginanepisodeof of ad-free streaming services–like audiences hidingbehindthepaywall (2) away for brands togetin front of new seriesGreen EggsandHam; to offer asandwichnamedafterits seen NetflixpartneringwithSubway to maintainofflinepresence –we’ve chance for onlinestreaming brands likely tobeatwo-way street: (1)a for brands, butthisrelationship is will becomeincreasingly important partnerships with contentcreators Fully-integrated multidimensional as wellfunding showsdirectly. integrations andcross-promotions, as product placement,branded opportunities for advertisers, such there willlikelybenewstrategic increasingly beunderpressure, Given production budgetswill expect thistodevelopfurther. specifically for streaming, andwecan formats suchaspauseads,designed already introduced non-interruptive supported platforms likeHuluhave to covertheirmountingcosts.Ad- advertising orchangetheirmodels businesses willstarttoaccept there mightcomeatimewhen models (seeFig. 05,Fig. 06) , and off betweenadsandsubscription making peoplereconsider thetrade- access toeverything they want is The financialimplicationsofgetting New admodels happy withadvertising of UKadultswouldbe access tothecontent if itmeansgetting 55% they enjoy Tidal Audible Apple Music Spotify Premium BT Sport Britbox HBO Max Disney + YouTube Premium All 4 ITV Hub Virgin subscription Sky subscription Disney Life NowTV Apple TV+ Hayu Amazon Prime Netflix Ad acceptancebyplatform Fig. 06 FINE WITHADSIFITMEANSFREEACCESS 58% 60% 61% 66% 67% 67% 67% 67% 68% 68% 68% 69% 69% 69% OFF-LIMITS FORADVERTISING 71% 71% 71% 79% 80% 55

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Increase in piracy? The sporting world offers a good options alongside torrents, it will ‘If it stacks up and I’m going to one example of how fragmentation can be up to the companies to decide place for one programme, I’ll spend cause an upsurge in illegal activity, whether to turn a blind eye, make my set fee and then I’ll pirate and for streamers with titles that their content more accessible to everything else because it’s maybe generate a lot of buzz – like Disney’s people, or clamp down on streamers one or two things’ The Mandalorian (predicted to be by embedding hidden, individual Male, Early Adopter, Manchester amongst the top pirated shows of codes in each stream so they can the year) – this might be a cause quickly shut down those who might for concern. With popular sites like be redistributing content illegally. The Pirate Bay testing out streaming

The churn scenario Cancelling and re-subscribing in incentivise people to pay – like ‘Sky, Netflix, iPlayer, Amazon time for new releases is already 12-month packages at a cheaper Prime & YouTube…I have a a common behaviour, and in a price. Trials might also become less subscription to all of the above but highly fragmented market with generous or disappear altogether – tend to swap out depending on low consumer confidence, we can Netflix has recently cancelled its free what new series are available for expect people to bounce between trial in the UK. And Disney+ only drop watching’ subscriptions to avoid rising costs. 1 episode a week for their new shows, Male, 16–24, Non-London so people hoping to binge everything To combat this, streaming companies during the free trial week might be might introduce new models to left with no other choice than to subscribe.

Monetisation of individual users The challenge for streaming companies in a highly the younger age groups (see Fig. 07), but we expect fragmented market is going to be making it a profitable companies to put better measures place to crack down on business in the long run – and that means monetising this behaviour, as well as introduce ISPs and Wi-fi signal individual users. Password sharing currently takes some data tracking to identify unusual patterns and activity. of the financial pressure off for people, especially in

Fig. 07 Password sharing is a common behaviour among 16–24s

68% 48% 32%

Agree ‘Sharing Use accounts of people Share their accounts subscription passwords they don’t live with with people they don’t is a great way to save live with money’

56 TRENDS 2020 on ‘regular’ TV. really notice andaren’t fans ofads ad-free platforms, theynowboth proportion oftheirviewingdonevia people agree thatwithalarge towards TVads: themajorityof Streaming hasshiftedattitudes 9 pay once. simpler solution,where theyonly are 30%more likelytowant a higher contentcustomisationand audiences inparticulardemand to navigate. Money-pooryounger becoming increasingly difficult The subscriptionmarket is 6 particular reason. a similarpurpose–oftenfor no don’t really use,orafew thatserve themselves payingfor servicesthey groups are lessorganised, finding subscription expenditure. Older concerned, sotightlymanagetheir Younger peopleare more financially 3 THE PEOPLE’SPOV would prefer theBBC(55+34%). (16–34 37%),whileoldergroups in age:youngerpeoplewant Netflix (21%). There isadistinctdifference (22%), closelyfollowed byBBC people want toprovide everything Netflix winsastheoneservice 7 new releases. subscriptions justintimetoaccess orientated, oftenaddingon fact, peopleare highlycontent- for aservicelikeNetflixorSky.In among thetopreasons for paying Quality oforiginalcontentis 4 add onnewones! their numberofsubscriptionsthan people are more likelytoreduce the servicestheyalready have, most willcontinuepayingjustfor likely tohave atoughride:while New entrants inthemarket are 1 ways offunding it. to questionifthere are alternative supporting, butpeopleare starting the BBC’sindependenceisworth There is ageneral agreement doubting theneedfor aTVlicence. People across allagegroups are 10 5 with highconsumerconfidence. 10% for parents, and14%for people jumps upto18%for 16–34men, specific audiences–thisnumber opportunities for newentrants with subscriptions tothemix,there are While only8%plantoaddnew 2 ads inexchangefor free access. people wouldprefer tosee/listen they want. Theconsensusisthat it tooexpensivetowatch everything in subscriptionofferings willmake currently worriedthattheincrease Over two-thirds ofadultsare service. main reason theysubscribetothe multitude offeatures offered are the with peoplestatingthatthe Prime are satisfying thisdemand, are themostappealing.Amazon with more thanonetypeofcontent Half ofUKadultsagree subscriptions

8 57

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01 02 03 NEW OPPORTUNITIES CULTIVATE MULTI- FOR RELATIONSHIPS DIMENSIONAL Think about the relationships you PARTNERSHIPS BRANDS have with entertainment providers. An abundance of content will mean Where are the opportunities for Think beyond content itself, can you new strategic opportunities to get collaboration? How can you get in leverage the data from partners to your brand message across, such early on content conversations? your advantage? Is there a place for as product placement, branded co-promotions? integrations, as well as funding shows directly. Content can be more closely aligned to your audience and opportunities will exist to own a conversation around a passion point or tap into a cultural moment. 04 05 06 UNDERSTAND DEPTH MEASUREMENT MOMENTS AND GETS AND BREADTH COMPLICATED MINDSETS OF AUDIENCE Prepare for a world of more FOR KNOWLEDGE complicated measurement. Think IS KEY about how you are going to measure TARGETING reach across multiple platforms and set specific goals for each one. How does your advertising differ by Understand what they care about and the mindsets of the people watching? what is important to them beyond Think about where, when and what your category – this will help you to you place in front of people, and both identify new partners and find what you are trying to achieve with new content opportunities. your communications.

58 TRENDS 2020 07 IS CRUCIAL BRANDING CREATOR, CONTENT ARE A IF YOU and create adistinctidentity? How canyouelevate your branding they streamed ordownloadeditfrom. to yourbrand, nottotheplatform people tocorrectly attributecontent In thestreaming era, youneed them for attention.Streaming themselves competingwith and data–sobrands willfind people’s free time,spend, but they’re outtomonopolise just goingaftershare ofvideo, losers. Thebigplayers are not is thatthere willinevitablybe clear winner, whatmatters more there isnotgoingtobeone out isyettobedecided:while here tostay.Buthowthatplays 5G gainingsteam,streaming is people findappealing,andwith entertainment isafuture most It isclearthaton-demand THOUGHTS FINAL MINDSHARE will keepuswatching. the viewer’sterms.That’swhat all needtomerge todeliveron content anduserexperiencewill placement. Ultimately,brand, partnerships andproduct engage peoplethrough strategic new opportunitiesfor brands to media, andthere willbegreat changes totheway weconsume years promise tobringexciting to stayrelevant. Thenextfew short willmisstheopportunity and anycompanythatfalls expectations for entertainment, companies have setnew 08 that youcanreach them? what are theotherchannelsandways they sittingbehindapaywall? Ifso, Consider where youraudienceis–are PAYWALL THE BEYOND THINKING 09 them. make sure youare rightthere with are gettingtheircontentfrom –and people are feeling, andwhere they opinions. Closelymonitorhow changing quickly,alongwithpeople’s Disruption ishere tostay,normsare MARKET DISRUPTIVE MONITOR A 59

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING THE EXPERT’S POV

Amit Katwala Senior Editor – WIRED UK

What’s fuelling this bout of content wars? Firstly – a seismic shift in the way we consume content, tapping into their massive user base. For Amazon, it’s a driven by smartphones and faster internet speeds. way of getting people into the Prime ecosystem, in the Secondly – the shift towards more subscription-based hope that they’ll use Amazon for other things. And for business models, which different companies are pursuing Disney+ and other entertainment companies, it’s more of for different reasons. For Apple, it’s because people have a defensive move – but they’re all spending massively to stopped buying a new phone every two years, so it’s a try and compete with each other. way of ensuring they still have a revenue stream and

What does this mean for people and what happens next? Each new service that launches faces more of a struggle. people are to turn to piracy. We’ll see a rising subscrip- Even if services are only a few pounds a month, that tion fatigue among viewers – they’ll probably start quickly starts to add up, and it’s hard to see many people sharing their passwords with friends and family members forking out for Netflix and Amazon and Apple and Disney. (and companies will have to decide whether to police that History tells us that the harder or more expensive you or turn a blind eye), and we may see a return to rampant make consuming content legally, the more inclined file-sharing for the biggest shows.

60 TRENDS 2020 on Primelargely aren’t asgoodwhat’savailable on I thinkobjectivelymostpeople would saythattheshows don’t have thathistory ofmakingqualityentertainment. deepest pockets(AmazonandApple) are theonesthat movies. What’sinteresting isthatthetwoplayers withthe whole hostofspin-offsbasedon StarWars andtheMarvel a massivebackcatalogueoffilmsandTVshows,plus alluring proposition for alotofpeople–they’vegotsuch any oneofthem.IthinkDisney+isgoingtobeareally It’s really difficulttosay–youcouldmakethe case for Who willcomeoutontop? How willthisallpanout? ad-supported modelliketheoneusedbySpotify might roll advertising.Withtheriseofsubscriptionfatigue, an that launchedasubscriptionservicewithpre- ormid- to life withoutadverts,anditwouldbeabrave platform brands –withNetflix,viewers have becomeaccustomed Subscription serviceshaven’t really gotanatural placefor places tocreate andplacecontent? How canbrands navigate thevast range of turn viewers offquitequickly. is packedwithAppleproducts. Butcrossing thelinecan a bitonAppleTV+–whoseflagshipTheMorningShow on product placementnativeadvertising.We’ve seenthis probably have towork more closelywithcontentcreators come backintofashion, though.Otherwise,brands will – astheyenduppayingmore. the peoplewhoenduplosingout couldbetheconsumers only run aslossleaders for alimited amountoftime,so be afactor too.Ultimatelythough,theseservices can rights withthePremier League this season,whichcould they canmake.Amazonhasbeen dabblinginsports customer base,whichperhaps limitsthekindsofshows they make–can’treally afford toriskupsettingtheir reputation for beingquiteconservative withtheproducts Netflix. Part ofthatmightbecultural. Applehave this 61

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING BRAND.NEW.WORLD

WHERE HAS IT COME FROM?

It’s a tough old world out there for brands as the digital 43% of people believe they are less loyal to brands than world, mobile connectivity and a changing retail they used to be (rising to half of online shoppers). But, landscape are causing people to re-think who and less than half of people believe that brand names will what they buy into. Cynicism is rife, savvier shopping matter less in 5 years than they do today – clearly still a is encouraged and we are faced with more choice role for brands across every buying decision we make. There are more competitors to consider and rival brands challenging Consumers continue to believe brands still have a lot to the status quo, and products are made available via an offer, but disruption is in the air, change is accelerating, increasing number of channels. With over 72% of people and people are starting to embrace or reject brands agreeing that discovering and buying new brands is much far quicker than they used to. In the coming years we easier than ever before, technology has clearly changed will see brands arm themselves in new ways in order to the way people engage with companies. deliver what really matters to the people buying their products. They will reassess their routes to market, turn Today, brands can’t just assume or demand loyalty. It is to new sales channels, re-evaluate their products, initiate hard-fought and hard-won, with no single clear solution new partnerships, acquire new companies and build new to keeping customers engaged. It is not just customers’ propositions. But it won’t end there – this reinvention will interactions with brands that impact loyalty, gatekeepers be a continuous process and is here to stay. This is the such as Amazon, Aldi and ASOS are heavily influencing brand new world. the choices people make, as consumers look for assistance navigating through the proliferation of brands, channels and marketing tools.

62 TRENDS 2020 OUT THERE… IT’S ABRANDNEWWORLD NEW ANDDIFFERENTWAYS. TO ARMTHEMSELVES IN ARE CHANGING,FORCINGBRANDS AND PEOPLE’SEXPECTATIONS DISRUPTION ISRIFE 63

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Gatekeeper brands redefine expectations. Digital is revolutionising both how access to so many potential retail Firstly, gatekeepers are raising people learn about and engage with channels, brands are now reassessing expectations of brand interactions. brands, and how companies learn their routes to market, working out Over half of people agree that about and engage with people. their priorities and deciding which Amazon is setting expectations for The internet has become a global gatekeepers to work with (if at all). what they’re looking for from other shopping mall with people moving This year we have seen a plethora of brands and retailers (71% of Prime away from ‘going shopping’ to a near big brands such as & Other Stories, subscribers) for example. Savvy constant state of ‘graze shopping’ Tommy Hilfiger and Topshop join the online shoppers are increasingly across a bevy of retailer, social media, ASOS brand portfolio despite having being primed to expect seamless service and entertainment platforms. their own eCcommerce platforms. experiences, quicker delivery times The ecommerce landscape is vast On the decision to partner with and hassle-free returns without any and complex – there are ever more ASOS, Topshop Topman CEO Paul risk, and in some cases, when coupled channels for brands and vendors Price said: ‘ASOS is the pioneer of with ‘buy now pay later’ services such to promote and sell their products. online shopping so we are thrilled to as Klarna, they don’t even need to We are seeing the rise of dominant be partnering with a digital leader’. part with their money upfront. gatekeeper brands both online Shoppers were equally pleased with and offline. Gatekeepers have the the news, posting tweets such as ‘life Secondly, trusted platforms are ability to control people’s access to just got a little easier’ and ‘I never increasing the confidence of people new brands and can be anything need to leave the house again now’. to experiment with whatever from a marketplace (e.g. Amazon), The appeal of one stop shopping products are available, regardless as aggregator (e.g. GoCompare), retailer is hard to resist. But the rise of the to whether they are familiar brand (e.g. ASOS or Lidl) or increasingly gatekeeper is creating a two-tiered names or not. This is clearly evident media brands (e.g. Instagram). With challenge for brands. amongst online shoppers, with over

Fig. 01 ‘With Klarna as well, you can buy and return and your bank account hasn’t 69% 66% even got involved.’

Female, 16–24, Early adopter

of online shoppers think free of online shoppers feel that sites return policies have made them like Amazon and ASOS offer such ‘Well, if you have a problem more likely to try new brands good aftercare service that they are safe if anything goes wrong with something you bought through these companies, then normally there’s redress, isn’t there? Especially through people like ASOS and eBay.’

Male, Majority, London

‘Nine times out of ten, the brands I buy online I’ve never heard of before.’

Male, 25–34, Parent

64 TRENDS 2020 and, ofcourse, brands stillplayan pronounced for particularcategories quality. Although,thisismore don’t necessarilyequalpremium of peopleagree thatpremium brands what constitutesquality.Two-thirds particular brands andare reassessing people are becominglessattachedto their questfor value andquality, products andservicesbetter. In and establishedbrands ismaking believe thecompetitionbetweennew services are changingtoo.Sixinten Expectations around goodsand Fig. 01). are safe ifanythinggoeswrong (See likely totry newbrands becausethey and goodaftercare makethemmore believing thatfree return policies heard ofbefore andovertwo-thirds buying more brands they’venever half findingthemselvesincreasingly Financial services Cars Electronics Holidays &travel Health &pharma Appliances Beauty &toiletries Groceries &food Clothing &shoes Household products experiment withnewbrands Categories wherepeoplewouldbehappyto Fig. 02 36% 37% 48% 49% 49% 58% these days.Brands andretailers are a product offers thanthebrand name more onthefunctional benefitsthat shoppers claim that theyare focusing established brands andtwo-thirds of just asgood,ifnotbetterthanmany that alotofunknownbrands are 03). Infact, 60%ofpeople believe no longerjustfor thethrifty(SeeFig. brands are changing–ownlabelis attitudes towards thesetypesof offering value. Asaresult, people’s sometimes betterquality,whilestill prove thattheycanprovide good, ‘brandless’ brands are nowoutto of alesserquality,butthese synonymous withcheaperproducts In thepast,‘private label’hasbeen resurgence inprivate labelbrands. This iscreating opportunitiesfor a substantial items(SeeFig.02). important role whenselectingmore

(All Adults) 66% 75% 77% 78% are inclothing. 135 private labelbrands, 80ofwhich Amazon, for example,nowoffers over audiences andtosuitcertaingroups. their portfolio toreach underserved quality in-housebrands, buildingout area andinvesting inthecreation of seeing thegrowth potentialinthis Fig. 03 reviews andit’sonasiteyou price andit’sanunfamiliar ‘If something’satadecent brand butit’sgotbrilliant know, thenwhynot?’ these days,focusingmore on thefunctionalbenefits agree thatwhenspending Female, Parent, London claim theycarefarless premium branddoesn’t about thebrandname equal premiumquality. of peopleagreethata that aproductoffers unknown brandsare a bigsumofmoney, established brands just asgood,ifnot brand nameisstill a well-established better thanmany 60% 66% 66% 6 believe alotof very important 5% 65

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Shoppable Media – Another sales channel to consider As it becomes increasingly shoppable, media is also products. Social platforms, in particular, have always been evolving into a form of gatekeeper, adding to the an ideal environment for the discovery of new brands, but complexity of the retail landscape and now needing to be are now evolving into places for more than just inspiration considered as another channel to market for brands and (See fig. 04 & 05).

Fig. 04 Fig. 05 All Adults 16–34 35–54 55+ Platforms that help Platforms that help discovery of new brands purchase of new brands

Amazon Amazon 53% 53% 52% 47% 55% 56% 51% 52% Google Google 35% 22% 41% 25% 37% 26% 29% 17% eBay eBay 29% 25% 25% 21% 32% 29% 29% 27% YouTube YouTube 21% 10% 34% 17% 23% 10% 9% 5% Facebook Facebook 20% 10% 28% 13% 21% 12% 13% 7% Aldi Aldi 16% 13% 11% 16% 15% 12% 20% 11% Instagram Instagram 15% 9% 32% 17% 13% 9% 3% 2% ASOS ASOS 10% 9% 21% 18% 9% 7% 3% 3%

66 TRENDS 2020 feature intoacampaignontheir site. Monki recently integrated this own platforms –H&Mownedbrand livestream shoppingoptionontheir And brands are alsotriallingthe which are linkedtopurchase options. of theirproducts ontheplatform allowing sellers tolivestream videos Amazon launchedLive, or shoppablevideo.Earlier in2019, shoppable optionseitherviaimages and Amazonhave integrated shopping, for example.BothGoogle shoppable videoandlivestream in Chinastarttoresonate here – the shoppablemediaformats popular are onlyjuststartingtoseesomeof little longertolandintheWest. We China, shoppablemediaistakinga a mainstayinmobiledominated devices andusageevolves.Already more voiceintegrated activations as – whichwilllikelymovetowards trialled QRcodeswithinTVcontent directly. NBCUniversal have even ads andothermedia,aslinkstobuy frequently beingaddedtooutdoor on anewleaseoflife andare more and theirfeeds. QRcodeshave taken way beyondjust thesocialplatforms shoppable mediaissettoextend sites, sodemandisready made.But redirected topurchase from retailer sites, wheninfact they are being they are buyingdirectly from social quarter ofunder34salready think universally available yet,justunder hassle. Althoughitisnotquite there andthenwithminimum for mobileusers whowant tobuy some markets –particularly useful integrated purchasing optionsin Instagram andnowTikTok allhave itself. Pinterest, Snap,Facebook, transactions withintheplatform completing thelooptoinclude into themainsocialplatforms, Buy capabilitiesare beingintegrated and simplicitywillbekey. product from (SeeFig.07) . Clarity not asclearwhotheyare buyingthe that shoppablemediameansit’s are concernsfrom all agegroups shoppable (SeeFig.06).Butthere products inTVshowswere directly 16–34s’ saytheywouldlikeitifthe appealing –for example34%of in particularfindshoppablemedia market for brands. Younger people thought ofasanotherchannelto more retail cloutandshouldbe shoppable mediawillcertainlyhave with anyotherplatforms including on itsway, socialplatforms, along West, butwithtrue socialcommerce the sameshoppingbehaviours inthe way. Itwillbedifficult toestablish ecosystems isalready wellonits suggests thatthisshifttowards including Instagram andWhatsApp, Facebook’ hasbeenaddedtoapps, subsidiary companiesinwhich‘From recent launchofnewbranding for its platforms themselves.Facebook’s same ecosystem–themessaging playing games,allwithinthe and bookingflightsthrough to making payments,doingbusiness Weibo, users candoanythingfrom Chinese platforms likeWeChat and they already are intheEast.With could beheavily intertwined,as future where socialandretail cryptocurrency, Libra, nodtoa and Facebook’s creation ofits Facebook/Paypal partnership to dominatetheretail space.The and thepossibilityfor newplayers landscape onitsway for brands a hugelydifferent ecommerce All ofthesedevelopmentsmean product from’ who we’re buyingthe means itisnotasclear ‘Shoppable media Fig. 07 Fig. 06 16–34 59% ‘Social media,andInstagram in particularhasdefinitely opened myeyestonew of people16–34swould TV showsweredirectly Female, 16–24,London like itiftheproductsin 34% brands’ shoppable 35–54 55% 61% 55+ 67

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

D2C brands spur on a whole new mentality Gatekeeper brands offer people them well equipped to deliver the A significant change in mindset is simplicity. Equally there is another tailored, seamless and integrated required to thrive in this environment. type of brand gaining traction experiences that people want (See We are seeing more established for that reason – D2C (direct to Fig. 08). These brands are disrupting brands making big changes to how consumer) brands. The number industries, removing costs and they operate. They are going back of D2C brands, that is those that complications and allowing shoppers to basics – the fundamentals of take products more directly to the to have greater control over their what their product offerings are customer cutting out the middleman interactions with brands. So, similar and how they can genuinely best or middlemen, have grown to gatekeeper brands, they are also serve their customers. Some are considerably in the last 5 years. raising people’s expectations of what investing in their own D2C brands These new brands own the end-to- brands should deliver. Although either by starting from scratch or by end relationship with the shopper, D2C brands are certainly not a new making acquisitions in the current from manufacturing right through to concept, in combination with the rise space – Unilever with Dollar Shave marketing and delivery. As a result, of gatekeepers, the effects are being Club, P&G with This is L, Target with they have access to a whole host of strongly felt. Casper, and Walmart with Bonobos. joined-up consumer data and power Interestingly, Walmart also has also over the bigger picture, which makes been buying up gatekeeper brands

Fig. 08

51% agree that ‘when it comes to shopping, I am always up for anything that saves time and minimises the effort I have to make’

68 TRENDS 2020 transformation oftheirbusiness. and willbeamassivestepinthe capabilities for onlinefood shopping now providing M&Sthefulfilment with onlinedelivery brand, Ocado, as theM&S£750millionjointventure more end-to-endtransactions –such are givingbrands thecapabilitiesfor brands. Othertypesofpartnerships programme for newanddistinctive Future Brand Initiative,anincubator range intheirstores, aspartoftheir with Harry’s, stockingthe men’scare Sainsbury’s have recently partnered to accesssomeofthesethings– Partnerships are another route in customer. in somecasesawholenewtypeof data sources, customerinsightsand ideas andapproaches, newresources, acquisitions comenewlearnings, such asJet.com.Alongwiththese brand. re-imagining whatitmeanstobea they canbestdelivertocustomers, their businessmodelsandhow will increasingly seebrands reassess continues torise(SeeFig.09),we of gatekeepers and D2Cbrands own onlinestore. Asthedominance strategy, sellingexclusivelyonits in 2019tofocus onitsownD2C of sellingitsproducts onAmazon isn’t theonlyoption.Nikepulledout forces withexistinggatekeepers proposition too,proving thatjoining are focusing inontheirownD2C proposition. Andbrands likeNike to helpimprove theirecommerce in retail technologycompanies Nordstrom, for example,isinvesting companies tohelpthemdoso. experience andare acquiring on deliveringabetterend-to-end Other brands are alsofocusing Fig. 09 better useofmydata compared toother Amazon makes 41% retail brands 69

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IN THIS SPACE

01 02 PERSONAL SHOPPER BY AMAZON’S PRIME WARDROBE This service solves the very problem the platform itself created, sorting through its mass offerings and providing a curated selection.

02 INSTAGRAM CHECKOUT When people discover new brands on Instagram they can now buy from them without leaving the app.

03 04 PINTEREST SHOP The platform emphasises mission-driven creators with unique products, and businesses must submit their brand story to Pinterest for consideration.

04 M&S X OCADO M&S agrees £750m food delivery deal with Ocado to leverage their technology and delivery network.

05 FOOTLOCKER X GOAT Footlocker invests $100m USD in the sneaker marketplace and retailer of rare and exclusive trainers and lifestyle shoes. 05

06 BRANDLESS Manufactures and sells a selection of grocery, wellness and home products under its own brandless label for ‘shoppers that prefer more natural products and have a different view of brands’ .

07 FRIENDS OF JOULES Online marketplace for a ‘contemporary country lifestyle’, selling products from both individuals and other partner brands. 03 08 INSTA X SELFRIDGES Instagram has partnered with Selfridges to let people shop a selection of brands from the social platform in real life.

09 DOTE LIVESTREAM SHOPPING PARTIES Live shopping platform allowing influencers to host ‘Shopping Parties’ and chat to groups of potential buyers in real time. Urban Outfitters have partnered.

70 TRENDS 2020 01 06 07 08 09 71

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

The next chapter for gatekeeper brands Fig. 10 People will increasingly skip search own, such as Joules with ‘Friends of engines, turning instead to online Joules’. With its revamp of Google sites such as aggregators and Shopping, even Google is veering 47% marketplaces, to get the job done towards more of marketplace model. of 16–34s don’t even look at the brand with more efficiency (See Fig. 10). Some brands, like Nike will stop name anymore when This type of shopper behaviour selling directly through the online shopping on sites like Amazon and ASOS offers greater opportunity to lock retail giants like Amazon, opting for in customers, and capture a greater their own D2C strategy, while others portion of their attention, time and will forge partnerships elsewhere. value, so we can expect many new But, with brands like Amazon already marketplaces to emerge. Expect to taking over a third of all online sales see an influx of niche marketplace in the UK and rapidly expanding into platforms from authenticated other areas, including physical retail, ‘Honestly, I think Amazon luxury consignment (TheRealReal) it could point to a future where the could get into anything to second-hand luxury watches majority of our shopping is done via they want to’ (Chrono24). Established brands will only a few huge gatekeeper brands. also create marketplaces of their Female, 45–54, Manchester

Brand stretch Historically, successful brand fill any gaps they’ve identified in a consistently positive across 16 to 24- extensions have stayed close to a market. Regardless of whether people year olds and those over 55 (See Fig. company’s core product or brand. But are Amazon customers or not, 4 in 11). While not nearly as dominant we will see brands experiment more, 10 would be comfortable purchasing as Amazon, Instagram has a clear moving out of their comfort zones. In things like toiletries, clothing, strength with younger audiences a bid to keep shoppers safe within the electronics, appliances and furniture in categories such as beauty and confines of their digital ecosystems, from the brand. clothing (See Fig. 12). Though not gatekeeper brands in particular all categories will be as easy for will leverage their reputation and Interestingly, and testament to gatekeeper brands to enter (e.g. popularity in product and service the power of the brand across so cars or utilities), these brands will categories where they haven’t many different groups of people, continue to push the boundaries and traditionally had associations. the categories of products and appear where you least expect them. Amazon is a leading example of services that people are comfortable this approach, with their strategy to to purchase from Amazon are

Fig. 11 Fig. 12

Groceries / food Groceries / food

Furniture / home decor 60% Beauty / toiletries Furniture / home decor 25% Beauty / toiletries 50% 20% 40% Household products Pharmaceutical / health Household products Pharmaceutical / health 30% 15% 20% 10% 10% Household appliances 0% Clothing and shoes Household appliances 0% Clothing and shoes

Holidays and travel Financial services Holidays and travel Financial services

Cars Electronics Cars Electronics Utilities Utilities

16–24 55+

72 TRENDS 2020 believe theywouldtrust theirvirtual people wesurveyed,44%of more for shoppingshortcuts.Ofthe people willcometorely onthem more ofarole inourdaytolives, Assistant, CortanaandSiriplay assistants suchasAlexa,Google impact onbrand discovery. Asdigital their ecosystemswillhave amassive technology already integrated into gatekeepers, brands thathave voice With theincreased dominanceof Voice commerce shortcuts world ofpayment andfulfilment. Some willevenextendoutintothe start totakeontherole ofretailers. who willtakeacutofthespoilsand of revenue for mediacompanies, addition, itwillbringanextra source but for thefinalpurchase also.In not onlyfor discovery ofproduct as weknowit,withmore channels transform theecommerce landscape and advertisingformats whichwill experimenting withshoppablemedia We willseemore brands companies andretailers Blurred linesbetween media Fig. 13 assistants tosuggestnewbrands I wouldbehappyforvirtual 79% to me rising to53%ofparentsand60% I wouldtrustmyvirtualassistant to make brandchoicesforme, of earlyadopters 44% purchases andfavoured brands. way weshop,particularly for repeat is settohave abigimpactonthe make suggestions,thetechnology use theseassistantstohelpfilterand completely passoncontrol orsimply to them(SeeFig.13).Whetherwe assistants tosuggestnewbrands say theywouldbehappyfor virtual 60% ofearly adopters) and79% them (risingto53%ofparents and assistant tomakebrand choicesfor to watch. data advantage, thiscouldbeanarea and withtheirfirst partycustomer already dippedatoeintothisspace Uber Eats,Walmart andTarget have gearing upfor thischange.Ebay, and Facebook. Agencies are already ad revenue makesadentinGoogle It won’tbelongbefore Amazon’s publishing, sellingadsoftheirown. retail brands movingintomediaand As thelinesblur, wewillalsosee assistant toorderthebrandsI I wouldonlywantmyvirtual have purchasedbefore 53% choices fortheirvirtualassistant their favouritebrandsasdefault would make apointofsetting 75% 73

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

Stores expand the playing field Experimentation in this new and agree that even with the growth digital first operators and physical disruptive world is essential and of online shopping there is still an spaces. While in effect digital first online won’t be the only space to important role for stores. As stores brands may appear to become play in. Many brands are already that fail to keep up with shopper more like traditional brands as they using pop-up stores to test their expectations, continue to decline, mature, their more sophisticated propositions and we are now seeing more established D2C brands will management of the lifetime value more D2C brands moving into stores take advantage of this. They will of individual customer relationships as well to create ‘physical’ presence. build on their expertise in supply means there will still be plenty that According to Retail Economics, online chain effectiveness and start to established big brands can learn from shopping is expected to account for introduce targeted retail formats their digital approaches. 53% of all retail sales by 2028. But through key relationships with large despite this trend, 80% of people retailers, bridging the gap between

A focus on mental availability Digital-first brands present the cost of acquisition soars and new ‘I find a lot of brands that I significant opportunities but do competition is continually appearing. like from scrolling through have their drawbacks – in particular Instagram, even though half the physical product and packaging As a result, many brands are starting the time I just tap and buy, I aren’t there to influence choice. And to re-assess this balance between don’t even notice the brand.’ for these types of brands, it is easy short-term performance and long- Female, 23–34, Early adopter to become obsessed with generating term brand building. While social a direct response using advertising media platforms may help them to Fig. 14 to drive short-term sales, especially launch, we are increasingly seeing when recruiting new customers. mature D2C brands turning to more In reality, what is needed is more traditional media channels as part 58% mental availability making brand of offline strategies that aim to build of people agree that brands don’t reward communications more necessary closer connections and acquire long- their loyalty so why should they be loyal than ever (See Fig. 14). Once digital term customers. to them marketing channels are maxed out,

74 TRENDS 2020 years thantheydotoday. names willmatteralotlessin5 As aresult, theyfeel thatbrand good experiences,withnewbrands. most likelytohave tried,andhad quality –perhaps asthey are the brand namewithpremium brand least likelytoequateapremium Younger peopleandparents are the 6 with brands theyknow. are significantlymore likelytostick types ofcategories,meanpeople cognitive involvement inthese items, thehighpriceand when itcomestobiggerticket testing ground for newbrands, household goodsare theperfect While clothing,groceries and 3 offer noware beingchallenged. expectations ofwhatabrand should coming alongevery day, their claim thatwithsomanynewbrands are gettingbetterandoverhalf established brands meansproducts competition betweennewand changing. 6in10believe Expectations ofbrands are 1 THE PEOPLE’SPOV buying theproduct from. and cleartopeople where theyare make itanuncomplicatedprocess using thisapproach willneedto media channels.However, anybrand are buying directly from social many already believingthatthey Shoppable mediaisappealingwith 9 user reviews. algorithmic recommendations and online theyare muchmore opento choice from asetoffamiliar brands, feel theyare more likelytomakea we shop.Whilein-store, people has hadahugeimpactontheway The riseofthetrusted gatekeeper 7 won’t bestoppinganytimesoon. established brands, thisbehaviour are justasgood,ifnotbetter, than Two-thirds believeunknownbrands worsened overthelast12months. position oftheirhouseholdhas value –athird feel thatthefinancial new brands astheysearch for Parents are themostopentotrying 4 new brands. purchasing –aidinginthetrial of reduce therisksinvolved in like AmazonandASOSsignificantly people. Theserviceprovided bysites particularly amongstyounger experimentation withnewbrands, returns policieshave stimulated Strong aftercare offerings andfree 2 5 a brand choicefor them. would becomfortable withitmaking a newbrand tothem, lessthanhalf for avirtualassistanttorecommend they buy.While7in10are happy it comestodecidingwhichbrands People want tobeincharge when 10 inspiration. 60% more likelytouseYouTube for Instagram for thispurpose,and brands, beingtwiceaslikelytouse wider range ofplatforms todiscover new brands. Younger peopleusea using Amazontodiscoverandbuy Amazon, withoverhalfofpeople Audiences are mosttrusting of 8 the lattertocompensatefor it. it toenhancetheway theyfeel, and different withthefirst group doing same. Drivers behindare clearly very versus those whofeel itwillstaythe year are more likelytoexperiment to improve orworsen overthenext position oftheirhouseholdisgoing Those whofeel thatthefinancial 75

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IMPLICATIONS FOR BRANDS

01 02 03 MULTIPLE CLARITY CHAMPION CHANNELS AROUND THE = MORE COMPLICATED THE CONSUMER ENVIRONMENTS PURCHASE New brands are authentically and purposefully addressing unmet needs As potential routes to market PROCESS while maintaining a strong consistent continue to emerge and evolve, When it comes to shoppable media connection to their customers. the retail environment will become people want clarity around who they There’s never been a more important increasingly complex. Media and are buying the product from. This time to champion the consumer, ads will now need to be considered is not required when it is shoppable refocusing on insight and ‘demand- as part of the sales ecosystem, for media integrated into a brand’s own led’ growth in order to respond example. Data will need to be fully site, but when buying via another quickly to people’s emerging needs. connected across all potential online media platform, people want and offline channels for a consistent reassurance that their transaction will brand experience across any be safe and uncomplicated. touchpoint people choose to interact with. 04 06 SEEKING 05 LEARNING A BRAND THE FROM NOT A ADVAN- BIG TECH SECTOR TAGE GATEKEEPERS The rise of automated commerce OF SCALE The likes of Amazon, eBay and and the continued rise of gatekeeper ASOS have changed people’s buying private label brands mean that New DTC brands may be more agile, behaviours with the most convenient, brands will need to compete beyond but big established brands can consistent and trustworthy platforms just the functional, so that people effectively leverage their advantage gaining the biggest market share. seek out a specific brand rather than to create unique and distinctive How can your brands become trusted a category. Mental availability is ecosystems that connect products gatekeepers? Is there scope to launch key and building brand equity will and experiences both offline and your own marketplaces? need to be prioritised for long-term online. success.

76 TRENDS 2020 07 EXPERIENCES EXPERIENCES BRAND AND POSITIVE LOYALTY 10 WEAPON THE BEST IS DATA the entire transaction aspossible. giving themascompleteapicture of focus ontheirownfirst-party data customer data.Brands willneedto digital-first brands istheircomplete One ofthegreatest advantages of experience. interactions, andcreating aseamless creating positiveandrelevant having aclearreason for existence, exceeding people’sexpectations, Loyalty willbebuiltbybrands experiences, rather thantransactions. is earnedthrough positivebrand or not)toremember thatloyalty important for allbrands (digital-first brands don’treward theirloyalty,it’s they shouldbeloyaltobrands when With 52%ofpeoplewonderingwhy

08 flexible, willthrive. and are abletolearnquicklyandbe entrepreneurial, willingtotakerisks, customers. Brands thatare more proactive two-way dialoguewiththeir and adaptive,activelyembracing a will needtobecomemore nimble places andretail ecosystems,brands To compete intheera ofmarket MINDSET AND FLUID FLEXIBLE see brands reassessing their over thecomingyears wewill including shoppablemedia, more saleschannelstoconsider, gets more complicatedwith as thecommerce landscape now settingthestandard. And delightful experiencesthatare to provide thesmoother, more with thecustomer, theyare able the end-to-endrelationship interactions. Withmanyowning consumer expectationsofbrand brands have significantly raised Both gatekeeperbrands andD2C THOUGHTS FINAL MINDSHARE 09 the transaction itself. for theend-to-endexperience,notjust overall value proposition toaccount online andoffline. Look atyourbrands experiences atevery touchpointboth connected, consistent,oneon generation ofcommerce willcreate Brands thatwillwinoutinthenext TION TRANSAC JUST THE ENCE, NOT EXPERI- END TO END ecosystem. ecosystem. consumer across theentire retail holistic understanding oftheir those brands whichcangaina looks brightinthisnewworld for with thecompetition,future themselves, orsimplykeepup carve outagatekeeperrole for with agatekeeperbrand, explore aD2Csolution,partner of whetherabrand’s goalisto to howtheyoperate. Regardless basics andmakingbigchanges routes tomarket, goingbackto - 77

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING THE EXPERT’S POV

Tom Johnson Managing Director – Trajectory Ltd.

What do consumers now demand from brands? Going forward how do you expect this to pan out How has this environment changed in the last 5 in the next 5 years? Will it be radical change? years? Are brands still valued? Consumers aren’t going to turn away from gatekeepers Expectations are rising as platforms and gatekeepers like Amazon – although those gatekeepers could find improve the consumer experience. A rising tide doesn’t themselves disrupted by political change in the next five lift all boats but it does raise expectations across years. Those platforms have become essential in enabling the board: when consumers get used to a seamless consumers to navigate increasing product complexity experience in one area, they will naturally expect it to be and simplify choices. For any given product or category, present in the next. a consumer can make a choice based one or all of the metrics that matter to them: features, reviews, price and There are pros and cons here. On one hand, good service more. delivery and frictionless user experience can be easily achieved. On the other hand, brands lose a little bit of New platforms, gatekeepers and channels also raise the control and distinctiveness. risk of damage by association. You might like a brand but be troubled by its choice of courier, or media partner. The potential pitfalls are evolving all the time: what might have been perfectly safe and ordinary commercial activity can quickly become controversial. Look at Paperchase, Pizza Hut and others apologising after promotional activity with certain newspapers. If online platforms like Facebook or Amazon become similarly polarising then brands could be forced to rethink their activity here.

Sometimes the brand lacks any agency in this at all – appearing alongside fake news on YouTube damages trust, but is largely out of your control. Brand health needs to be carefully monitored to ensure that even external factors aren’t undermining trust or perception.

78 TRENDS 2020 of priceasabottomline. pressures willhitbrand loyaltyandraise theimportance in arecessionary moodfor some time:further financial increasing mercuriality from consumers, whohave been Of course, brand willstillplayarole butIsuspect we’llsee alienate more peoplethantheyattract. meaning andvisibilitybutbetoostridentthey’ll causes theyspeakto–playittoosafe andtheywilllose to playinthisspacebutwillneedbeshrewd inthe also talktothemintheirlanguage.Brands willcontinue values andworldview; reach themwhere theyare but To engendertrust, brands mustspeaktoconsumers’ divergent. to daybehaviours –and it’sneverbeenmore volatileor turns out.Thisisbigpicture stuffbutitinfluencesday and howmuchautonomytheyfeel overhowtheirlife their identity,technologyasaforce for goodinsociety from whetherlife isbettertodaythaninthepastto groups have radically different viewson everything it underpinssomuch:ourdatashowsushowdifferent Value fragmentation isparticularly powerful because on finances,demographics, values andcultural outlooks. threat. Consumers donotsomuchsegmentasfragment: landscape, thenotionofa‘nationwide’ brand isunder few andfar betweentoday.Inastubbornlypolarised We usedtotalkaboutnationaltrends buttheyare next 5years? we seebrands dodifferently inthe How canbrands staysuccessful andwhatwill demands for value, qualityandavailability too. to stayonthehighground –whilemeetingalltheother to stayrelevant toandtrusted byconsumers theyneed would everholdourselves to.Thismeansthatfor brands standards ofprobity, purityandselflessnessthanwe acting inadifferent way: asconsumers we expect higher Consumers are increasingly tellingbrands onethingbut interest theywouldhave beencrucified. than £1m.Ifabusinesshaddisplayedthatlevelofself- had votedfor charity,thedonationwouldhave beenmore the 90pcompensation,rather thancharity–ifeveryone customer about90p.Themajorityofcustomers votedfor – donateitalltocharityorreimburse eachindividual customers whattheyshoulddowiththecompensation network coverage for adaylastyeartheyaskedtheir Do asconsumers say,notastheydo.WhenO2lost next 5years ahead? brands whenthinkingaboutthe What istheonepieceofadvice youwould give 79

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING AD.BREAKS?

WHERE HAS IT COME FROM?

Who and what we trust has been taking a beating. The or willing to cough up for ad-free services. Meanwhile challenges of austerity, multiple scandals and Brexit ‘advertising’ is finding ways to incorporate some of these have badly eroded people’s confidence in the traditional new sources of influence into its arsenal. And perhaps, pillars of society. Meanwhile, technology has been most importantly, just over half (56%) of people still feel actively redefining the boundaries too; allowing distrust that advertising has a role to play in telling them about to prosper. People have found themselves living in a time brands, increasing for younger age groups (See Fig. 01) when division, ongoing uncertainty and the rise of fake news, post-truth and disregard for experts and facts, are However, there is no getting away from the fact that challenging their beliefs every single day. some advertising approaches have become alienating for many people, and that change will be necessary The crisis of trust impacting wider society is also playing for the discipline to flourish again. People accept that out in how people respond to advertising and to brands. advertising isn’t going to disappear any time soon, The Advertising Association has found that consumer but they do want it to be different from how it is now. trust in advertising had hit an all-time low of 25%, just Just under half (48%) of people we spoke to said half what it was in the mid-90s. Increasingly sceptical that brands really need to be looking for new ways to consumers feel like they are being overwhelmed by too advertise themselves, rising to 58% amongst under 34s. many irrelevant, intrusive and overtly sales-driven ads. Thankfully, the industry is on a path of reinvention and And this feeling is even more marked in some areas of is working collaboratively to change its ways. Yes, there’s the country. The response people have to advertising has still a hill to climb on many things, including how we use hit rock bottom. Those that are not peeved, are simply people’s data, where ads appear, and what they say, but becoming a bit numb to the barrage of advertising evolving ad formats and brand messaging opportunities clambering for their attention. are beginning to address some of the roots of the problem. And technology is on hand to lend a hand. These feelings of distrust are not just confined to advertising; it’s the motivations the brands have behind the advertising as well. The integrity behind many Fig. 01 brands’ intentions is being increasingly questioned. Advertising still has a role to play in 57% of the people we spoke to were cynical about telling me about brands (% Agree) brands associating with meaningful causes, claiming 63% that brands which took this route were just doing so as 56% 56% publicity stunts – with levels of cynicism even higher 51% amongst older audiences and males.

Given these negative views, it’s little surprise that people are turning to ad blockers and paid for ad-free environments to escape the brand clamour. At the same time, ‘real’, people-led sources of influence, are instead gaining traction with consumers, often at the expense of more traditional forms of brand advertising. But it’s not all bad news. Not everyone is downloading ad blockers, Total 16–34 35–54 55+

80 TRENDS 2020 REINVENTION HAS BEGUN. BUT AJOURNEYOF VERGE OFABREAKDOWN. ADVERTISING WAS ONTHE FORGIVEN FORTHINKINGTHAT THAN EVER,WECOULDBE AND CRITICISMMORERIFE WITH TRUST INADSDECLINE

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AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Right message, right moment, right mindset The irrelevant, interruptive, shouty nature of advertising has become a growing area of complaint for many people. With so much content now being accessed in ad-free spaces such as Netflix, the disruptive, wide net push of Fig. 02 advertising, too often featured in other environments, is Characteristics of most annoying beginning to feel increasingly annoying in contrast. places for advertising

Over half (53%) of people we interviewed said the most Interrupts my enjoyment of content or programmes annoying thing about advertising was the way in which 53% it interrupts their enjoyment of other experiences (see Gets in the way of what I’m doing Fig. 02) – a complaint that was particularly relevant for 50% advertising found around video related environments, Too repetitive with the intrusion on content flow and experience. One 48% respondent explained: ‘You’re flicking through your feed I don’t get any choice about seeing the ad and there’s a video on there for a minute and a half and 47% you’ve got an advert slap in the middle, you’re like GO Trying to sell too hard AWAY it’s so infuriating,’ and ‘I think we’re getting more 40% and more used to not having ads now… whereas now, Stalks me around the internet like, for example, on YouTube, I really resent when you 38% have that ad at the beginning – I’m like, “Oh, this is so I haven’t given permission to be targeted in this way annoying’”. 38% Feels fake People are willing to accept that advertising has a role 35% to play, but for it to work successfully, the message, the moment that is being accessed, and the mindset being tapped into need to be much more pertinent to their lives. ‘They don’t feel like ads either… However, with over two-thirds (68%) of people currently maybe because my Instagram knows me and my saying that many ads seem irrelevant to them, rising to habits so well, it just looks like content. over three quarters amongst over 55s – there is clearly It doesn’t look like an ad.’ still much work to be done here. Female, Majority, London Using data better to anticipate, rather than just respond to, to people’s needs, will be the key to addressing this issue in the future. Facebook, for example, already talk about people no longer finding products but products finding them. And one of Facebook’s platforms people felt was getting it right was Instagram. 44% of 18–34s agreed that they found the advertising here much more relevant to them than in other channels, and in our qualitative research stage, the feedback was very positive, with comments around the content suitability, their look and feel, and their blend with the content around them.

82 TRENDS 2020 with thecontinuedclampdownonthird-party cookies. Privacy Act (CCPA) comingtothefore inJanuary, and spotlight for advertisers, withtheCalifornia Consumer promises tobeanotheryearwhere dataethicsisinthe more dataprivacy andregulation across theboard, 2020 must beconsidered carefully. Inresponse todemandsfor at apriceandthelinebetweenrelevance andintrusion However, anyform ofrelevant adscansometimescome firm AdYouLike. billion globalindustry by2025, according tonativead context oftheenvironment, ispredicted tobea$400 integrates intopeople’spassionpointsorblendsthe Context iskingandindeed,nativeadvertising,which for example. more withlessdata,utilisingAItobuildpredictive models We are already seeingcompanies,suchasGoogle,doing environment andsmartuseofotherinformation sources. important tobrands –withincreased useofcontext, other routes tobuildrelevancy are likelytobecomemore dangers ofcustomerdatamanagement.Onthisbasis, will abandontheirefforts, duetolackofROIandthe 80% ofmarketers whohave invested inpersonalisation with companieslikeGartnerpredicting thatby2025 Personalised offerings willbecomeharder todeliver, Female, 25–34,London TO ENGAGE INIT.’ I’M MORELIKELY AND IENJOY READINGIT, IF IT’SINFORMATIVE, HOURS ONTHAT. PAGE –ICOULD LOOK FOR INSTAGRAM ‘DISCOVERY’ DEFINITELY ONTHE ‘MOSTLY IT’SINTERESTING. 83

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Blurred lines – beyond ‘advertising’ It is not just the interruptive nature change is well underway. Nike Air only set to grow in this space (see our of advertising that people don’t like, Max trainers appearing on the feet of trend ‘Living The Stream’). it’s the overtly salesy messaging that characters in local graffiti artworks they feel can be just too much. And around cities for example, or product In reality, the way that many brand the two in combination are currently placement in Netflix shows. Stranger messages are now being integrated resulting in a very blunt, downbeat Things is reported to have referenced does actually fit the criteria of what assessment of the industry, with 75 brands in season 3, including people want from advertising – they 78% of people agreeing that ‘I feel brands such as Burger King and can choose whether to pay attention like a lot of advertising these days Coca-Cola. Whilst Netflix have made to the ad or not, and the enjoyment is just trying to flog me stuff’ and it clear they weren’t actually paid of the content is not interrupted (See 70% saying they would ‘prefer it if for this involvement, the brands Fig. 03). advertising were less shouty’. have been promoting the show through their channels in return. And And brands are increasingly But in reality, brand messaging is opportunities around Netflix brand looking for ways to be the content already moving to a much more partnerships are likely to grow in the themselves – a growing area of subtle and integrated future – it’s future, with Forrester reporting that development that people were just people haven’t noticed it yet or they are ‘actively beefing up their positive about (See Fig. 04). Airbnb, acknowledged these new formats as marketing team’. And with more for example, has announced that being ‘advertising’. Only a quarter subscription-based entertainment it has plans to develop original of people think ‘ads are becoming services all producing their own shows and content that will help to less obvious’, when in reality, this content, opportunities for brands are promote its hosts, guests and travel

Fig. 03 Characteristics of most acceptable places for advertising

I can choose whether to pay attention to the ad or not 41% Doesn’t get in the way of what I’m doing 41% It’s an environment where I expect to see ads 35% Do not see the ad too frequently 37% Doesn’t interrupt my enjoyment of content 38% Feels genuine 27%

84 TRENDS 2020 exception. becomes thenormrather thanthe communications andcontent as more integrated andcreative only evolveinthecomingyears what constitutes‘advertising’can becomes. But,theperception of annoy people,theharder thetask interruptive adsare stillthere to otherwise. Whileovertlysalesyand on itshandstoconvince people stuff’, buttheindustry hasajob the bluntnessof‘trying toflogme communications are afar cry from The majorityoftoday’sbrand the contentitself. brand opportunities,inadditionto solutions integrate otherextended to watch, especially asmanyofthese product. Atrickybutrewarding area that’s notjustaboutembeddinga versus delivering abrand message skill oftellingameaningful story managing toperfectly balancethe Geo. Afew smallerbrands are also six-part documentary serieswith Nat well. ThinkRed BullStratos andP&G’s and Red Bullare doingitand gig, butbrands suchasP&G,Nike amount ofchoiceoutthere. Atough able tocompetewiththeendless creating compellingenoughcontent form entertainment,withtheaimof ambitious brands investing inlonger destinations. We are alsoseeing Keep thesameorcreatemoreofit or moreoftheirowncontent? Should brandscreateless,thesame Fig. 04 16–34 83% 35–54 73% 54% 55+ 85

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

People like us The range of sources that people view Fig. 05). We are buying, selling, content, has quickly become one of as being credible in their day to day sharing or communicating with the top ways of getting advice and lives has contracted considerably. digital strangers and taking product information for just over a third of For many, there is now an almost recommendations and inspiration the UK population (See Fig. 06). In exclusive reliance on ordinary people from faceless people – a behaviour the US, Amazon are now tapping as their go-to source of trust across that is particularly the case into this consumer trust with the multiple areas and decisions – on amongst younger age groups and launch of physical stores – Amazon families, on people who are like us, females. Technology is driving the 4-star – that feature products curated on our friends. This narrowing trust accessibility and popularity of this from their highest customer ratings, window, when combined with the reliance on the views of real people, reviews and wish lists. low standing that advertising now with its widening influence having enjoys, has resulted in 6 in 10 people increased massively with consumers. Recent stories around the rise of claiming that the views of other fake reviews have, however, started people – either known to us or digital It’s little surprise then that product to raise concerns for some, and as strangers – are now much more reviews were one of the most widely a result there is growing interest in likely to influence their decision- trusted sources quoted in our study, tools that can help verify whether making than the actual advertising particularly amongst younger age content is genuine. Consumer for the product. It seems the more groups – two-thirds of under 34s now facing start-ups such as Fakespot, digitally connected we become, claim to trust a review significantly for example, use algorithms to the more we are engaging with and more than they do an ad. Amazon, analyse millions of product reviews, trusting people we don’t know (See a key gatekeeper for much of this looking for suspicious patterns

Fig. 05 61% 59% 55% Agree Agree Agree ‘Reviews give me an ‘Reviews and recommendations ‘I trust a review objective way of from other people are much significantly more than I understanding how good more likely to influence my trust an ad’ or bad a product is’ thinking than the ad for a product

86 TRENDS 2020 of people-ledrecommendations. considered asawhole,ismuchlowerthanfor otherforms as first thoughtandcredibility around this area, when that influencer recommendations maynotbeasgenuine these paidproduct endorsements. People are considering unease amongstconsumers around influencers making and trends. However, there isagrowing awareness and influencers that they really trust around newproducts with athird of18–34sagreeing there are specific sought after, andtheydohave sway insomesituations, hope thatpeoplewillhelptomaketheirproducts more have beenuppingtheirinvestment inthisarea inthe see influencers asbeingthesameadvertising’.Brands advertising with34%ofpeoplesayingthatthey‘don’t another touchpointthatisreshaping thedefinitionof slightly more mixedfortunes isthatoftheinfluencer– Meanwhile adimensionof‘People Like Us’thathashad example, generated 104millionvideostarts. approach withgreat success–the#ChipotleLidFlip, for to theactivity.Anumberofbrands have beenusingthis ecommerce feature alsoaddingashoppable component where peopleshare brand featured videocontent,withan people. Take TikTok hashtagchallenges,for example, media blurs thelinesofwhatclassesas‘advertising’for doing thehard graft ofthemarketing work. Thiskindof more earnedmedia,where otherpeopleare effectively And brands are shiftingtowards aculture ofgenerating to address thisneed. similar toyouandthestylesfollow, are alsostarting a platform thatpromises onlyreviews writtenbypeople only reviews writtenbygenuinecustomers, andCountr, Peer-to-peer platforms, suchasMasse,thatpromises and incentivisedreviews, excludingtheunreliable ones. information? where doyougotoforadviceand When itcomestoshoppingdecisions, Customer reviewwebsites In-store Google General websearch Amazon Friends /family YouTube People like myself Fig. 06 22% 22% 35% 35% 37% 37% 40% 47% 87

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING HOW IS IT DEVELOPING?

Demonstrating purpose The combination of declining their comms. Exposure to this type adoption of common standards, trust levels on the one hand, of activity is, however, still being kitemarks and partnerships to with increased access to news, met with some cynicism about why help provide reassurance for information and knowledge on the the brand has decided to promote consumers. Common standards such other, is creating new challenges for this type of message or association, as the BCorp certification, which brands, both in terms of what they although this is offset to a degree demonstrates a brand places people say, and the context they appear in. by the acknowledgement that some and planet on equal footing with People are now far less willing to take good can still come out of these profit, are now starting to appear on things at face value and are instead types of activity. product and service labels. Similarly, adopting a much more cynical new partnerships, such as the viewpoint. Any brand communication With brands increasingly trying to Circular Fashion Fast Forward project, will need to not only talk the talk, it stand for more meaningful things – that demonstrate a fashion retailer’s will also need to walk the walk. from environmental issues through commitment to more sustainable to gender politics to social injustice business models are also gaining Expectations around how brands – avoiding hypocrisy and promoting ground. We can also expect some should be acting are high, but it authenticity will be crucial. Over brands to go further than reports and doesn’t naturally follow that people two-thirds (68%) of people agreed certifications, with the application expect them to be met in the way that brands can’t get away with of blockchain technology to provide they would like them to be. Many saying one thing and doing another; customers with fully traceable people are aware of brand purpose values behind the scenes have to information from the origin of raw marketing, with 58% claiming they match what the public face is saying. materials all the way through to have noticed many more examples Expect to see increased transparency point of sale. of brands trying to promote more coupled with better verification of ethical or meaningful messaging in behaviours, through the growing

‘No brand is going to say anything bad about themselves’

Male, 35–44, Scotland

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AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IN THIS SPACE

01 07 07 NETFLIX GREEN EGGS AND HAM MASSE APP PARTNERSHIP WITH SUBWAY Masse is an app which harnesses the value of Netflix worked with Subway to start offering word-of-mouth in a digital, shoppable platform. a Green Eggs and Ham Sub tied to the new series. 08

02 FAKESPOT Uses algorithms to analyse millions of product NETFLIX STRANGER THINGS reviews, looking for suspicious patterns and PARTNERSHIP WITH BURGER KING incentivised reviews, then excludes the unreliable Burger King created an upside down ones. whopper to celebrate the season 3 partnership. 09

03 MAIIRO PACK OF LIES Creating transparency about the products and LOUIS VUITTON LEAGUE OF packaging in the beauty industry. LEGENDS PARTNERSHIP Included designing everything from the 10 Trophy travel case for the esports world championships, through to champions skins MINDSHARE #CHANGE THE BRIEF and even a capsule collection. A Mindshare initiative to drive industry change, 03 by the creation of media and marketing plans 04 encouraging small changes in behaviour that will help address the climate crisis on a larger scale. P&G AND NATIONAL GEOGRAPHIC PARTNERSHIP 11 Six-part documentary series, highlighting the work of grass roots activists across the TIKTOK #CHIPOTLELIDFLIP globe, featuring ambassadors such as Hugh Tiktok hashtag challenge where influencers and Jackman and Pharell Williams. fans alike shared their own lid flip videos.

05 12 WENDY’S ‘KEEPING NIKE AIR MAX WALL GRAFFITI FORTNITE FRESH’ CAMPAIGN 08 Nike placed shoes on graffiti street art characters Cannes Lions winning campaign, where the which then unlocked purchases at Nike.com brand was embedded into the gameplay using geolocation. in Fortnite to spread a message about the evils of frozen beef.

01 06 BERROCA AND C4’S EXTREME EVEREST WITH ANT MIDDLETON Branded TV documentary about climbing Everest, which also included product placement, a VR film and a spin-off content series. 12

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#ChangeTheBrief

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AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING WHERE NEXT?

Consumer confidence will lead New locations and moments The paywall opportunity the way for relevance As we move towards more paywall From a consumer perspective, Relevancy – of message, mindset and subscription-based services, people’s feelings about advertising and moment – is what’s needed to the opportunities for brand are not going to be turned around help advertising to become more communications are in fact opened quickly. The industry is going to have appealing again. The creation of up, rather than restricted. Content to work hard to change their mind. new advertising locations and makers are going to need help The chances of there being a quick moments will help this aim become funding much of this new and fix out there for such challenged trust more achievable. 5G will fuel not wide-ranging content somehow. levels is highly unlikely – consistency only more, but different types of This competitive environment and reliability are cornerstones connected devices used at different will create new opportunities for of whether we trust someone or moments in people’s lives, as we brand messaging, through brand something and these take time to can see from our other trends ‘Body placement, shared funding of build up again. However, one area Talks’ and ‘OM5G’. These new and content, or through enabling access that will help it to recover is returning wider-ranging data sources will to content in ad-based environments. consumer confidence – without fail, create a wealth of opportunities for And in reality, people aren’t going to consumers who are worried about more refined targeting in different be able to pay for everything – both the future for their homes or the locations and moments. This the content makers and consumers country in general are more likely will likely mean a move from the will be reconsidering ad-based to be distrustful of and adverse to creation of big ad campaigns to models. Advertising is going through advertising. the adaptation of a multitude of a tough period at the moment in messages in real time, as moments consumer psyche but realistically happen. the majority of people don’t hate it Reviews unbound enough to actively pay to exclude Reviews are increasingly likely it – only 24% say they ‘often pay so to be influencing many more of The importance of emotional they can access content in an ad-free the brand choices we make in the pull as the human dimension environment’. future, not just the big shopping narrows decisions. Nearly two-thirds (63%) For some sectors and functional of early adopters say they are now products, people are increasingly using them across a wider range open to the idea of moving towards of decisions than ever before, and more passive shopping, through according to 6 in 10 under 34s, they repeat subscriptions and automated are likely to influence the majority reordering – effectively making the of their purchasing decisions role of advertising largely redundant in the future. This could well around these decisions. Influence change what we buy, encouraging and inspiration to buy will need to experimentation for unknown brands filter through in other ways and in without the ad profile. some circumstances it may be that it is the machines themselves we need to market to rather than the person. 5G will facilitate the development of automated services, fuelling a proliferation of smart products able to cut out the human element. The emotional pull of brands will need to be stronger than ever to cement people’s choices in this new world.

92 TRENDS 2020 particularly amongstunder55s. more oftheirowncontent– There isinterest in brands creating 9 fresh, excitingbrands thattheysee. the relevancy ofthecontentand advertising. Inparticulartheylike ads asanacceptableform of more likelytoclassify Instagram Younger agegroups are also70% 6 general. they are aboutadvertisingin circumstances –themore negative country asawhole,orfor theirown about thefuture –whetherfor the The lessconfidentpeopleare 3 THE PEOPLE’SPOV field. view asbeingreal expertsintheir brands andservices,whothey influencers that theytrust onnew Around athird ofunder34sfollow 7 audiences. particularly anissuefor older too personalised isn’t–thiswas is particularly welcomed, being Whilst relevancy inadvertising 4 female andyoungerconsumers. them aboutbrands –particularly for as having arole toplayintelling Many peoplestillseeadvertising 1 advertising. rated astheleast credible form of In fact, celebrityendorsement is thirds believeitisunacceptable. generations, where overtwo- particularly amongstolder received byallaudiences, Celebrity endorsement isnegatively 10 5 trying toflogstuff. shouty anditstoneisallabout bombarded byads–it’soften too moment –thevast majorityfeel how advertisingisworking atthe But there are majorissueswith 2 about newbrands. best ways inwhich theycanfindout TV advertisingasstilloneofthe Parents are more likelytodescribe like them,orexpertopinions. and recommendations bypeople whether thatbeinfluencers, reviews recommendations ofothers, most likelytorely onthe Younger audiencesare the

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AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING IMPLICATIONS FOR BRANDS

01 02 03 IT WON’T USE ALL BALANCE THE BE ABOUT THE DATA FINE LINE OF SHOUTING SIGNALS RELEVANCE THE AVAILABLE AND PERSON- LOUDEST TO YOU ALISATION Stand out won’t be achieved by Brands will need to spend time Relevance is great, knowing too much spending more money or shouting understanding the mindset, the about what’s going on isn’t. Too much louder, it will be about relevance, mood, the needs that their audience personalisation, too much awareness making connections with people and has at a specific moment, and work of someone’s actions, too much being a useful brand with these signals, not against them. intrusion without permission, will Embracing the tone and spirit of the move a brand into stalker territory. surrounding context, and clever use Trust levels are low at the moment of data signals to adjust to audiences’ and people will not give you the requirements will be much more benefit of the doubt. 04 welcomed. HOW CAN BRAND PRESENCE 05 06 GENUINELY COMPETI- EARNED OFFER TION WILL MEDIA VALUE TO BE FIERCE SHIFTS THE CON- FOR UP THE SUMER? BRANDED PRIORITY Less overt brand formats are a great way to create a worthwhile value CONTENT LIST exchange with your consumers. Any brand creating branded content, With people relying more heavily on One route could be through easier, whether that be short- or long- the word of others, earned media will cheaper access to content they form will be competing against be increasingly important along with want. On a more ambitious scale, an ever increasing pool of choice. the paid media that supports and collaborating around that content Content needs to be meaningful and promotes it. Some brands are even creation itself can give your brand something people would actively contemplating what they would do in the opportunity to tap into relevant choose to watch and share. an ad free world, to help them focus values and prestige cues. on this more specifically.

94 TRENDS 2020 07 10 DO IT DON’T YOURSELF, CAN’T BE AND IFYOU YOURSELF, BE advertising. ever goingtoturn around people’snegative viewsof will rage on,but somethingneedstochangeifweare of howmuchtoinvest inbrand anddemand advertising too muchovertlysalesyadvertising. Theage-olddebate exacerbate people’sfeelings ofbeingbombarded with Too muchperformance orpushstylemarketing will only COMMUNICA DEMAND BRAND AND BALANCING TIONS and rejected fast. scenes. Hypocrisywillbecalledout – bothupfront andbehindthe consistent withhowthebrand is need tobegenuineand100% another. Thesenewbrand expressions or toborrow thehaloofvalues from share previously unseendimensions, be exposing.Itcanallowabrand to in collaboration withapartner, can whether asabrand standalone,or Innovation andcontent creation,

08 different adformats emerging. more immediateterm)butalsowith (or evenpartcookie-lessera inthe Not onlyinapotentialcookie-lessera COMPLEX MORE BECOME SET TO UREMENT MEAS- CAMPAIGN - valuable totheconsumer. helping thebrand tobeperceived asmore useful and scenes, thiswillresult inmore thoughtful connections, approach tobrand values bothupfront andbehind the again. Whencombinedwithagenuine andconsistent by newdatasignals,willhelpadvertising toappealonce Relevancy –ofmessage,mindsetandmomentfuelled help matters too. the consumerperspective, growing confidence levels will material suchasreviews andrecommendations. From and byfindingnew ways toengagewithpeopleowned the adoptionofmore subtleandintegrated solutions, by newformats builtaround contentopportunities,by of whatpeoplethinkasadvertisingbeingredefined However, reinvention isontheway, withtheboundaries approaches thatare seenasintrusive andalienating. wider society,andmore specificallybytheuseofad years now, fuelled bothbythecrisisoftrust impacting Trust inadvertisinghasbeendeclinefor several THOUGHTS FINAL MINDSHARE 09 using minimaldatapoints. your communicationsmore relevant available –thinkabout ways tomake Equally personal datamightnotbe it’s aboutchoosingtherightones. the datasources youcurrently have, might notneedaccesstosomeof create relevant communications?You What datadoyoureally needto NEEDED REALLY IS DATA PERSONAL MUCH OF HOW A REVIEW

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AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING THE EXPERT’S POV

Jane Ostler Global Head of Media Effectiveness, Insights Division – Kantar

How do you think consumers feel about How can a brand make sure their advertising advertising at the moment? Why? a) gets cut through and b) is authentic for There are some occasions, for example Christmas in the consumers? UK, when advertising is anticipated with excitement. There are three aspects to advertising being noticed: the But generally, indifference reigns supreme: Kantar’s creative, which needs to make a lasting impression; the research shows that more than half (55%) of connected media plan, which needs to do all the obvious things consumers – those with access to the internet – neither including delivering the right frequency – with 73% of like nor dislike advertising (DIMENSION 2019). And the UK consumers saying they see the same ads over and increase in ad-free subscription streaming services means over again (DIMENSION 2019), we know advertisers still that people can avoid advertising. So, when brands do aren’t getting it right; and choosing the right format and advertise, they need to be considerate and understand context. their audience. For example, we know that Gen Z prefers digital ad formats that they can control (AdReaction: Gen We often forget that humour is one way to get noticed. X, Y Z). I’m a big fan of humour in advertising and it can work for nearly all categories, even serious ones (e.g. Thailand’s Consumers display a healthy cynicism for perceived Chaindrite Termite-ator). I’m not alone: humour improves paid-media forms, with advertising scoring lowest in our ad receptivity more than any other ad characteristic trust index. This means brands need to think about the – 48% of people say that humour makes them more optimum investment across paid, owned and earned positive towards ads. media channels to make sure their target audience engages with their message. There are many other Authenticity is a complex topic and easily banded touchpoints which influence consumers’ views of a around. Brands need to understand what consumers think brand, in addition to paid-for media: for example, instore, on a whole range of topics before they can figure out what product/service experience, sales staff, customer service, authenticity means to them. Authenticity is a broad term: influencers, and press coverage. it can be about what the brand stands for, how credible the message is, where it’s being delivered, and how it’s Targeted advertising has its issues too: while 45% executed. Authenticity goes far beyond advertising. For of people agree that ads tailored to them are more a beauty product, it may mean the ingredients or the interesting than other ads, over half (54%) object to being packaging; or it may mean climate activism, or a helpful targeted based on their past online activity. app; for a supermarket it may be its stance on waste food So it’s a mixed story, and marketers need not only an or plastic; whatever it means, it has to be more than a intelligent strategy, but also excellent and well thought- surface veneer of looking like you’re doing the right thing. through execution.

96 TRENDS 2020 platform candeliver. align theirobjectiveswithwhateach importantly, advertisers needto is nowmuchindemand.Most Unsurprisingly, in-contexttesting will ensure strong campaignimpact. tailored toeachplatform’s strengths we knowanintegrated campaign specific contextandplatform, and Content shouldbetailored toeach in aparticularmediaenvironment. and themindsetofconsumer is engaging:where anadisplaced, is vitaltoensuringtheadvertising tailored toeachchannel.Context customised, wemeanexecutions part ofthesamecampaign,andby that executionsare recognisably metrics. Byintegrated wemean performs 57%betteronkeybrand both integrated, andcustomised We knowthatadvertisingis engaging? advertising fresh and How canbrands keeptheir particularly viacollaborations. towards brand impactandsales, marketing, moving beyond‘likes’ to themeasurement ofinfluencer will beamore grown-up approach relationship. Ithink(andhope)there the commercial nature ofthe will needtoclearly disclose with verified followers. Influencers meaning more nicheinfluencers platform theyspecialisein,perhaps they work withare credible onthe need toensure thatinfluencers mature, considered way. Brands to grow, buthopefully inamore Influencer advertisingwillcontinue years? think willgrow over thenext5 interesting adformats you Are there anynew and how theycorrelate. short- andlonger-termmetrics, their advertisingisworking to drive will alsoneedtounderstand how Media Right,2019),soadvertisers performance advertising(Getting between brand-building and are sure theyhave therightbalance Currently onlyhalfofadvertisers measurement partners (likeKantar). advertisers willneed forward-thinking measurement atscale,meanthat and multimediaeffectiveness cross-publisher measurement cookie, advertisers’ desire for true disappearance ofthethird-party effectiveness measurement. The Without doubt,it’sallaspectsof in thenext5years? advertisers willneedtotackle What isthebiggestthing 97

AD BREAKS? BRAND NEW WORLD LIVING THE STREAM BODY TALKS OM5G? AN INFLUENTIAL SETTING Mindshare Futures is Mindshare’s emerging media and technology research programme. It focuses on the underlying consumer behaviour behind future trends and advises marketers on the implications for communications. It produces annual trends publications, deep dive reports on specific tech trends and offers consultancy services.

Report Contributors Sophie Harding, Julia Ayling, Josie Ung, Ksenia Kharkina, Jack Sweet, Kay Taylor, Irene Rizzioli, Sophie Tonks, Rob McFaul, Charlotte Ince, David Walsh, Stefan Jansen, Dean Marks, Mark Baschnonga, Ric Santeugini, Amanda Harrison, Davina Rajoopillai, Emma Sexton, Jenna Revell and Amy Heathorn.

A special thank you to our experts: Alison Davies Telco, Media & Entertainment Lead, IBM

Amit Katwala Senior editor, Wired UK

Anna Watkins Manager Director, Verizon Media UK

Jane Ostler Global Head of Media, Insights Division, Kantar

Tom Johnson Managing Director, Trajectory Ltd.

This book was produced by Mindshare Futures, edited and designed by the Marketing Team @ Mindshare UK. First Edition: 2,000 copies. Printed by LovePrint in London, United Kingdom. 4 colour Litho printed on Naturalis Matt Absolute White. 120gsm and Outer cover on 270gsm uncoated.

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