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Trends 2017: Korea

Shift to Post Smartphone World

A new era “after Smartphone” arrives. Powered by soaring mobile traffics, AI (Machine Learning), VR / AR / Fictionless computing are hot icons to catch up with. And autonomous vehicles, for sure!

All this techs are continuously connecting us from this to that, here to there. On December 14th 2016, Wynn hotel announced plans to equip all 4,748 hotel rooms at Wynn Las Vegas with Amazon Echo. And on the same day, Amazon succeeded their first drone delivery service with Prime Air in UK. And what else? Uber started its first autonomous vehicle operation in San Francisco whereas Silicon Valley start-up, Lucid Motors launched the luxury electric car, Lucid Air which goes 400 miles on a single charge. All these are happening day to day and we even do not have enough time to get surprised. Let’s not forget: For all that, Future is made for us, “human-beings”. Let’s enjoy this new techs and ride the comfort and convenience to the fullest.

Mobile All

In 2017, mobile is expected to stand even more at the centre of all communication in Korea,  which ultimately leads more to mobile commerce. With 91 % smart phone penetration rate (No. 1 globally as of March 2016) & the fastest internet speed, South Korean will likely consume more contents at mobile. (even TV contents are consumed at mobile)

In line with this trend, contents (including advertising) will be developed & formatted in mobile platform. And mobile advertising  will be further developed to reach right audience with more sophisticated performance measurement tools.

Tech-driven Contents

As the novelty factor of VR/AR technology cools down, creating more relevant contents will become essential. With Naver and Kakao – two of the biggest online industry giants in Korea – beginning to invest heavily in AR/VR content development, Korean consumers are sure to be presented with various, yet more relevant, contents to choose from.

Along with VR/AR, other technologies – such as AI and Livecast – are being implemented in various marketing platforms. This suggests that now more than ever, technological developments are pushing the evolution of marketing tools – something that the content creators must keep pace with.

O2O Almighty

The O2O (online-to-offline) business, which has emerged as an icon of Korean start-up since 2014, is steadily growing. In fact, the O2O service barriers are relatively low. Now, however, diffusion and differentiation are more emphasized in O2O biz in order to settle in the market.

Large platform companies such as Kakao are expanding the scale of service diffusion by acquiring related O2O services or providing various services within one type of app by combining the power of O2O service in the related area for win-win.

Personalized O2O services are on the trend such as ”Travel Accommodation” service reflecting the characteristic of single target who enjoys his / her life, “Personalized Beauty” service reflecting the consumer tent that pursues wellness and “Services aiming at 3049 target” that has emerged as the premiere of the health consumption market.

This O2O service, which makes consumers’ lives convenient and enriched, is expected to grow further thanks to mobile acceleration and easy mobile payment service.

Five marketing trends for the year 2017

Digitalisation has revolutionised the world of media and communication. Will there soon be a period of rest from it all? No, it’s going to continue racing on just like it has, since digitalisation – as a driving force – has brought about several exciting developments. These five trends will keep us on our toes in 2017:

1. Customer centricity and personalisation

The consumer will be at the forefront of all activity

In the past, a product and a campaign were developed for as many people as possible. Mass advertising via scattergun approach worked. Tempi passati – to be ahead of the game today, we need the opposite: to successfully address individual consumers. Advertising is therefore going to experience a powerful shift towards personalisation. “Small Data” as described by Martin Lindstrom and micro-segmentation will help contribute to this development.

This concentrated focus on individual customers, also known as “customer centricity”, will even have an impact on product design: Experience and service provider worlds will emerge, where the actual product – in other words, the merchandise – will simply be one aspect of many. A car manufacturer will then not only sell automobile models, but also complex mobility solutions. Those that are able to use their brand environment to inspire consumers will benefit from lifelong loyalty from individual customers who will possibly – for example with “Amazon Dash” – buy the product again and again at the click of a button. In the marketing of the future, there won’t be any room for “one night stands”.

2. Sincerity and authenticity

Brands need to fight for their credibility

As strange as it might sound: Brands need to be more honest and transparent than ever, especially those for which pretentious claims and marvellous make-believe worlds were devised. In today’s “post-fact” branded times, in which cynical and socially dangerous business flourishes due to fake news, they cannot allow themselves to be pulled into this ever increasing black hole of implausibility. The damages to customer trust and revenue would be huge. Instead, they need to fight this lack of trust steadfastly with honest, authentic communication. Clever content marketing will play a central role here.

3. Storytelling and motion media

Moving images tell riveting stories

People are fed up with content – there is simply too much of everything. They react irritably in response to a lot of what they see. They decide within seconds whether they find an offer good or dreary. Then, they click it away or block it. There is no more ‘neither here nor there’, no more ‘in-between’. The winners of 2017 will therefore be those who understand how to captivate their audience with exciting or interesting stories. If there is one typical characteristic in people, then it’s this: We love stories. Pictures and films are especially well-suited to storytelling, because they can be consumed more quickly and intuitively than text. For this reason, a worldwide advertising trend using films and motion media will set in. First-class work will be rewarded by a strong viral response.

4. Virtual Reality and Artificial Intelligence

New technologies will become standard

New technologies will leave their niche positioning as hip inventions and will become practical marketing instruments.

  • Exciting new brand experiences arise from Virtual Reality. The best examples of this are Etihad’s A380 guided tour or the Ikea application “VR experience” in which the kitchen can be examined before purchase. Advertising will become more playful, gaming experience is advantageous.
  • Artificial Intelligence advances with giant steps and will enrich and support communication. Thanks to AI, chatbots will develop into essential contact points to alleviate the strain on and improve customer service, for example.

5. Creativity and marketing technologies

Creation takes over leadership

The power of creativity will experience increased appreciation. Because let’s be honest: The enthusiasm for the technically doable, measurable and automatable, which we have digitalisation to thank for, often forced creativity into the background. Online marketing shows us all too well how a dominant belief in technology can squash out any creation and quality. For us marketers, our first and ultimate goal must always be: To ignite enthusiasm for a brand. In the end, it is a top-class, surprising idea that makes the difference. The competition can also operate technology. They are simply great tools – no more and no less.

Trends 2017 from the Middle East

TECHUCATION THANKS TO AR & VR

Technology and education is on the rise, with companies like IBM and Apple working hand in hand to release Watson Element in a bid to help teachers gain insights into individual learning behaviors. In Dubai, the vision of Sheikh Mohammad Bin Rashid Al Maktoum to provide “NEW GENERATIONS with the skills needed for the future” is prompting VR giant, Samsung, to seek content cooperation partners like Serviceplan to create VR experiences in both the classroom and the workplace. Brands can take advantage of AR and VR by creating content, instead of merely looking at devices to push content through. This will be a tall order for VR and AR content creators, as International Data Corporation (IDC) reports that the augmented and virtual reality market for the Middle East and Africa will grow robustly over the next five years, projecting annual growth rates of more than 100 per cent by 2020.

REALTIME INFLUENCER MARKETING

Realtime Influencer Markting will now, more than ever, require brands to slowly give up creative control. With new social tools like Facebook Live and Instagram Stories now available to supplement Snapchat, transparency between brands and influencers, as well as authenticity in influencer content, will become more apparent in 2017. Brands will want to see immediacy in content, regardless of its ephemeral nature, but will, in turn, require statistics behind it. This means shorter lead-times to conceptualize and create content, giving influencers more control of the pieces they publish. Consequently, influencers will start choosing to collaborate only with brands that allow them to stay true to their personalities, and to maintain the core of their online following. With real-time now invading our social spaces, influencer authenticity will replace influencer popularity. Brands will come to realize that fame does not necessarily equate to quality, and that quality, served to a smaller, more targeted audience will hold more value and influence. Other, more established brands will revert to celebrities over mere influencers, if only to defy the already dizzying predominance of so-called “social voices”. Dubai’s clever use of Sharuk Khan in its latest promotional film is one such example.

ATTENTION ECONOMY AND THE 5 SECONDS OF OPPORTUNITY

Today, attention is a rising commodity in itself, as smartphones have left humans with such short attention spans that there is only a 3-5 second window of opportunity to grab the consumer’s attention. This change in consumer behavior places increased value on content marketing with short video at its core. In this new landscape, social platforms are assuming the role traditionally occupied by broadcast media. Brands and marketers should start looking into innovative content that would make their platforms more and more relevant to the already hooked Arab audience. Live video, for one, is now being experimented with by brands (primarily from owned events to amplify reach) and this will be utilized even more in 2017.

Trends 2017: Belgium

To achieve the best results possible for the brands that we serve, and as part of our quest to embrace emerging marketing and communication movements, we need to take a closer look at some social trends.

Looking forward, the thing that strikes us in particular is a general sense of “harmonious contradiction”. There are two intriguing, big and bold contradictions going on which brands should try to understand and appropriate.

Tactile vs virtual & artificial

At the beginning of December, for the first time in history, the amount of money spent on vinyl records in the UK overtook the amount spent on digital downloads.

“We have a new generation buying vinyl, lots of teenagers and lots of people under 25, who now want to buy their favourite artists on vinyl and have something a bit more tangible, a bit more collectible. People have become keen to support their favourite artists by buying into that ownership concept. It’s very difficult to demonstrate your love of an artist if you don’t have something to hold on to,” said Kim Bayley, chief executive of the Entertainment Retailers Association recently.

In a digital world, consumer preference can indeed be influenced by sensory marketing tactics: think about the combined potential of sight, touch, sound, taste, and smell.

Even while anxieties are expressed about the impact of robots on the way we work, and the kinds of jobs that exist, millions of people have already adopted home robots. Take the Echo: it has already captured imaginations and hooked its owners on how easy it makes ordering a takeaway, or never running low on washing powder.

Brands needs to ensure that their technology/services can be linked in some way to this new kind of central domestic technology.

Local vs. e-tailing on the doorstep

It’s becoming increasingly clear that living a healthy life and thriving means putting as much care and thought into our relationship with food, as we do into our personal relationships. The best place to start working on a closer relationship with the food we eat is at local farmers’ markets and by buying from local food producers – and of course this is also true in fashion, furniture etc. Brands can tap into the trend towards these lifestyle choices by playing a facilitating role starting to allocate areas for community gardens, urban farms and local entrepreneurship.

Every day, a new “kit on your doorstep” initiative is launched, whether it be a meal in a kit, an outfit in a kit, or the myriad other options available. Thousands of cardboard boxes land on urban and rural doorsteps every month, containing all the elements needed to create a home-cooked dinner. Like frozen food or the microwave oven, meal kits may be a kitchen innovation that fundamentally changes how people cook at home. The cookbook author Mark Bittman told the New York Times: “It’s cooking. It’s not shopping and it’s not planning and in a way it’s not thinking, but it is cooking.”

While many question the ecological footprint of these services, brands can play a vital role in logistics and packaging innovation, offering smart recycling. Brands can help kitchens and their appliances to become smarter, and make cooking more intuitive and complex meals more accessible.

Generation Z

The first members of Generation Z will turn 21 in 2017, marking their transition from society’s teenagers to fully fledged consumers, and as such their influence will mark a tipping point for retailers. The way most retailers do business nowadays will be turned on its head, as this generation is made up of free thinkers, and sceptical when it comes to brands. They interact primarily on social media channels, simultaneously across several of them, and spend little to no time on brand platforms.

As more and more social channels integrate social shopping, brands should design even more specific content to entice this emerging group of consumers, who will be drawn to social selling storytelling. Instagram’s shoppable photo strategy is only a faint indicator of what is to come, and what will be easily adopted by these mobile natives.

Whereas platformless retail may still be considered a trend, conversational commerce will fully blossom in 2017. Chatbots and apps are now a retail tool that can boost business and increase customer service in a way that is satisfying for Generation Z.

The daily use of technology comprising chat, messaging or other natural language interfaces, short circuits the brand-to-consumer loop, facilitating “conversations” between people, brands or services, and making it possible to use a device – notably a smartphone – to ask questions, place orders and get advice.

Brands that are early adopters of this kind of commerce will certainly appeal to Generation Z, and are likely to see these consumers spending their first salaries with them rather than with traditional e-tailers. Tangible benefits of WhatsApp social commerce:

  • Instant notification of messages being read.
  • No queuing – 30-minute response time.
  • No precious time wasted on explaining a fault or your specific need; a simple picture will do.

By linking to a CRM system, not only can brands facilitate direct sales, but track customer lifecycle too. We all remember SuitSupply in the Netherlands – the cool initiative and pilot case that resulted in an additional channel for commerce.

H&M’s bot suggests various outfits to users and provides the opportunity to purchase through the bot’s messaging platform. Sephora is using a bot to provide beauty tips and enable direct shopping.

Looking behind, looking ahead.

The rules of VR are still unwritten. A rare opportunity for brand communication.

Innovations in the communication sector are routinely advertised and seldom redeemed. With virtual reality, it is different. This ‘Next Big Thing’ justifies every hype. VR used to be under rather than overestimated because it really is a completely new medium.

When a new, successful medium develops, it must be compared for a time with what is already known, in order to learn about the concepts. This influences the creative form for a while. Film began as, ‘living photography, perfect in every detail and life-sized’, television as visual radio, the World Wide Web as hypertext. With VR it is exactly as the name implies, which in this case refers to: VR is ‘something like reality’. Naturally, VR explains as little about reality as any other medium. But we leave out research and convention, in order to classify VR as a medium. That is why every article about VR is a personal account, and that is why experience really makes a difference here: you cannot grasp what you have not experienced.

VR will be regarded as an immersive medium, with the promise of ‘as if’ — as if you were there, as if you are the person, being represented. The idea of visual immersion is, however, actually older. In 1787 Robert Barker built his walk-in, 360-Degree-Views and called it ‘Panorama‘. Even older are the ‘peep-boxes’, which were popular in 19th-century salons and funfairs; small, wooden apparatuses for viewing exhibitions on paper, wood or glass. Early VR-Gears as well.

These panoramas and peep-boxes were primarily optical illusions. With digitalisation in the 1980’s, came tactility in production, the viewer becoming an actor. Jaron Lanier developed the ‘Data Glove‘ and characterised the notion of Virtual Reality. The visual representation, which the Data Glove can operate, is still abstract and prone to blocks, but trendsetting. One’s own body awareness influences what we see. We can act within the picture.

In modern VR both come together — physicality and panorama. To that end, VR has a few tricks up its sleeves, which effectively outwit our brain. And currently, it seems to be, as if we still fall for this repeatedly. The transfer to the virtual abyss in the laboratory for the umpteenth repetition got the heart pounding and generated measurable, bodily fear. False experiences in the VR-Dummy, the simulated person, who ‘I’ am, can trigger quasi-traumatic effects. So noticeable , that the consciousness researcher Thomas Metzinger, formulated an Ethics of VR Production with his colleagues.

vr-gocht-header

In British Thorpe Park, the mentalist and illusionist Derren Brown, been sending visitors to his ‘Ghost Train‘ since July. Equipped with a VR gear kit, you are literally a participant in a gruesome scenario, attacked by demons and other such passengers. Brown strengthens the already convincing VR illusion with motion, change of location, and being touched by actors. Pure immersion.

And there is a lot to say about it, that this miracle of ‘presence’ passes, that it is a phenomenon of the pioneer phase. It does not lack the experience of recipients or the rules of form. Both producers and recipients are still experimenting. It is an exploration of the grammar of the medium, the conventions made possible.

This shows in a wide variety of forms, leading to an explosion of ideas. Currently, it seems VR can be anything: theatre, film, documentary, e-learning, horror-trip, and yes, even video conference. One of the founders of the US production firm Wevr, Anthony Batt, describes it perfectly [‘Studio 360’, New Yorker, 25. April 2016]:

‘Does that mean our stuff is always perfect? Fuck no! It means we start with no idea of how we´re gonna make a project work, and we make it work. Or we don´t, and the whole thing turns to jello, and we learn.’

It is a great opportunity for brand communication, to take part in the development of this grammar. Two features help in the process: first, today short formats are best suited for VR and second, are comparatively cost-effective, feasible productions.

Let’s face it: 90% of brand communication is more or less friendly circumvention. Re-targeting is no fun for the audience. With VR, an ad may finally be a spectacle. Well done, it allows your audience to have a (spectacular, enlightening, shocking) experience. To take part in this entirely new medium is an opportunity, that will not so quickly come again.

 

vr-roadshow2-2016-teaser

Join the VR experience live with our Roadshow “Reality by Virtuality” in Hamburg, Cologne, Munich and Berlin.

Six tips for storytelling with 360° filming

How do I come up with a film that is complete and takes place around me? Above, below, left, right and even behind my back something can take place. All of a sudden, the rules are different from a normal film in 16:9 format. The following points should make starting out with such an idea easier. Please think now deeply about your brand, and ask yourself the following six questions:

1. Where does my target group like to be?

By using virtual reality glasses, you get the feeling that you are, all of a sudden, in another place. Merely: Which place is the right one for my brand? What do I know already about the needs of my target group? Which are the places that stir up emotions? Which places does my target group know already from my TV spots?

2. In what kind of situation do they want to be?

When it is not a specific place, might it then be a specific moment? A moment with other people? Is it funny, moving or romantic? What is incredible when it happens once to me? Or where would I like to stand directly next to?

3. Where does my target group like to be sometime?

As a spectator, I can suddenly look at the world from someone else’s eyes. And, admittedly, clearly stronger than from a point-of-view-perspective with 16:9 filming.

4. Where can only my brand beam the people into?

Do I organise special events, at which the target group can virtually be present? Do I have a celebrity, whom they can get close to? Should everybody test sit in my new car? Or in a car that has not been build at all yet?

5. What does my brand world look like?

When people spoke about customers entering into a brand world, it mostly referred to a stand or a shop. Virtual reality and 360° films are the first media that can actually bring customers into a brand world. The opportunity for an emotional experience with the brand! Furthermore: How does it look there? What are the colours, how do I meet the people? What sounds or music do I hear?

6. Which place or what experience supports the campaign message?

VR is a new medium, and not just simply a single measure. In the media mix of a campaign it can, for example, take over the part of proving the advertising message. When I claim something on TV, I can make it possible for the customer to experience it via VR or a 360° film.