SXSW 2015 - VCCP Trend Report

SXSW 2015
Trend Report
Client Logo Here
By Will Harvey - Innovation Lead

Our team & Intro
Every March, Austin, Texas is overrun by some of the
greatest minds and practitioners from the world of music,
arts, technology, advertising and politics. They bash out and
debate some of the greatest discussion and subject matter
aﬀecting the world of communication.
!
With every year SXSW (South by South West) gets bigger and
more elaborate. Its origins as a music festival have been left
behind in the wake of what has now become the greatest
conference for creative free thinkers in the world. SXSW
takes new tools, deposits them in rooms full of tech and
creative people, who then dismantle and debate them to
work out just how they might work and have an eﬀect within
contemporary cultures and lifestyles.
It has now become one of the biggest events in the modern
marketer’s calendar as it is key to keeping updated and
ahead of the curve and to know what to expect from the next
12 months.
!
Some numbers on the festival
- 22nd Interactive Festival
- Runs for 5 days
- 800 Sessions
- 40K+ attendee
- 75+ countries attended
!
We have hand picked a number of the big trends from this
year's show and broken down what that could mean for us.
Will Harvey
Innovation Lead
James Storey
Interactive Creative Director
Rob Bartlett
Head of O2 Account
Ruth Barton
MD - VCCP Kin

Trends
one two three four
Re-deﬁning
retail  
Wearables
working
together 
Rise of the
machine 
Make it an
experience
five
Live in the
moment
six
Make it
meaningful

The world of retail is a space in which we have
witnessed huge changes since the introduction of
online shopping giants such as Amazon. To stay
ahead of the pace of change, physical retail stores
are having to adapt and embrace this growing
demand for greater, more nuanced experiences
from consumers.  

!
In one of the panels, 'Defining the next generation
retail experience', the founders of Rent the
Runway and Stitch Fix spoke about the origins of
their online-based companies, which offer unique
retail solutions in this time of change.

 
One of the key points raised was the growing trend
of fast fashion, challenging the very traditional
models of retail and supply and demand. Through
the enablement of the web we are seeing
companies disrupt other models. Airbnb, for
example, now successfully monetise in the hotel
space, an idea that would have been unfeasible in
the pre-Internet era.

If Airbnb has managed to disturb the rental market
so successfully imagine what could be achieved in
the retail market.
The next retail revolution

Your personal shopper
For me, it signals a real fork in the road for
physical store-based retailers who need to adapt
and embrace this changing culture - and take a
look at what the future of the high street might
look like.

Those who are willing to embrace this change
are looking at the new positioning of retail stores
to create more meaningful experiences. Let’s
take as an example Apple, who in many ways
have been seen as leading this new age of retail
by creating unique and personal experiences, as
well as in-store servicing of products, ensuring
the consumer has a completely unified
experience of the brand from introduction to
advocate and after sales support.  

!
We will see the emerging growth of physical and
digital store experiences, as retailers move
beyond a room to sell their products, to more
diverse environments which will embody the
brand, and service all the needs of a consumer.
This will be complemented by the growth of
social engagement in physical stores, allowing
brands to feed live data and have a social
presence in a physical environment.
Data in the Driving seat
Another re-surfacing talking point at this year’s SXSW was defining data
in the physical environment. With the explosion of data capture devices
we surround ourselves with, an astronomical amount of information and
raw data is being captured. Such data sets as browsing behaviours,
social activities, movements within spaces and our health, generate large
amounts of info, but we have only scratched the surface of leveraging this
to drive greater engagements in environments.

!
Instant access to a wide range of available data means that on entering a
space, whether retail or service, recommendations can be made to a
consumer instantly, taking into account health, recent physical activity or
movement behaviour. Then the curation of that data, to inform personal,
targeted recommendations on data plans for mobile, insurance or even
automated personal style shopping, will be combined with image
recognition.

The ultimate ‘Big Brother’ advancements in connecting and the use of
multiple data sources provide a raft of opportunities, but in turn, the
enormous issue of consumer protection.
With the evolution of social, there is more real, honest user
feedback. As they feel protected behind the anonymity of
the internet, this will affect positioning in store to combat
that
Julie Bornstein - CMO Sephora

Mobile is at the heart
Wearables are something everyone is speaking about. Not
a week goes by without the announcement of yet another
new product entering the market.

!
At SXSW, the theme dominated the schedule across the
week too, and even made its way into a number of
unrelated talks. Fuelled by the recent Apple keynote on
the Apple watch, the industry now waits for one of the
biggest innovators and players to finally bring their
product to market later in April.

!
One session that made me think more deeply about this
growing trend of wearables was hosted
by Mashable editor, Lance Ulanoff : 'Wearable tech and
design - cracking the mainstream code’.

We heard from a range of panellists - David Austin (PCH),
Jason Johnson (August) and Christina Mercando (Ringly).
They covered a range of topics from connected homes
now embracing wearables, to advancements in micro
batteries.

!
One of the most interesting aspects of the subject
covered was the current trend of the mobile phone acting
as a hub for various wearables, and what the future has in
store for this.
Currently, most wearables operate by sending and
receiving information from a smart phone (usually via
Bluetooth or wifi). If you have a number of devices, they
communicate directly with the mobile, which acts as a
central hub for your personal, wearable eco-system.

!
The next big evolution we’ll see in the wearable world
will be a move towards more integrated connectivity, as
connected devices finally start talking to each other,
rather than just to the mobile phone.

Most crucially, this is allegedly being developed to
function fully regardless of the manufacturer and locked
down ecosystem.

!
The Wearable market represents the
marriage of fashion, function &
technology, with the wrist an extremely
valuable piece of real estate
Lance Ulanoff - Chief correspondent & editor at
large - Mashable

Smart devices
If my Pebble smart watch could
communicate directly with my August
smart lock at home, the Pebble could
unlock my front door without having to
use my mobile as a 'middle man’.

!
I’m really curious to see if this will
actually transpire, as it would mean
competing companies making
connected devices would have to
collaborate on an industry standard.
Right now, it's presenting huge
opportunities for new companies such
as “If This Then That" to come in as a
third party and facilitate this.

!
On another Pebble note, they had a big
presence at the show after the recent
announcement of their latest product to
market, Pebble Time (Raised $14m on
Kickstarter in less than a week) . They
also made the surprising announcement
of Smart bands, - they are oﬀering $1M
funding to prospective developers to
devise third party bands that can pair
with and enhance the Pebble user's
experience.

Let's talk artificial intelligence (AI). We
continue to see extraordinary
developments in the digital health space.
Advancements in technology such as 3D-
printed limbs, and micro-computer pills are
leading this. We are moving closer and
closer towards a blend of our physical and
digital bodies. One of the keynotes was
both inspirational and a little scary, as it
discussed the advances that we might
soon make in this field.

Martine Rothblatt is the CEO of United
Therapeutics, author of Virtually Human,
and one of the highest paid female CEOs in
the US. She is also transgender.

!
In this session, she spoke about her life,
and of her radically innovative work. One of
the key subjects in the talk that really
inspired me was the debate surrounding
cyber consciousness, or AI. Specifically, the
ability of a machine to think and feel like a
human being. This may sound like science
fiction - a scene from 2001: A Space
Odyssey or Her - but it is very real, and it is
very near.
Artificial intelligence

Upload yourself
As we move towards the reality of AI, a number of
serious debates will of course need to take place
regarding the social impact and legal rights of these
digital entities. We live in a time in which we
increasingly capture our daily lives on social
networks - from photos to interests and opinions -
so is it really that far removed from a mind file?

If you can, I would advise watching the talk once it is
uploaded on the SXSW site – it really was a session
that made me think and even question how I felt
about AI, privacy and the ‘replication’ of the human
brain.
!
I have written a piece before about quantum
computing, looking at the use of super computers to
solve massive problems - but this takes it to the next
level.

Martine spoke about the concept of uploading our
consciousness as a “mind file” that embodies
everything we are - from our mannerisms and
personalities to our attitudes, beliefs and memories.
These mind files could then exist as a digital clone
that could, in theory, live forever – or at least far
longer your biological self!

It sounds like science fiction but Martine has already
created a prototype of this – she captured a mind file
of her wife a few years ago. The clone is capable of
having conversations, debates and was even
interviewed by New York magazine last year. It has
still a long way to go before being at the level of HAL,
with seamless response and complete cyber
consciousness, but they are making enormous leaps
and bounds in this field.
Curiosity has led me to challenge the status quo, to
rise to Cognitive Computing & AI thinking
Martine Rothblatt - United Therapeutics Corp

Best on show
Before approaching the stage, my picture was taken again, looking
off camera.

Only then could I collect my sword from the stage. No ordinary
wooden sword of course.

A giant dragon egg image appeared on the display, I then swiped
my sword through the air, “hitting” the dragon eggs. By doing so,
the display mapped my face with objects and items from the
series. The more I swiped and hit the target, the more creative and
elaborate my portrait became.

!
This is something more brands should be exploring by creating an
experience that engages and entertains a consumer in a physical
environment. It will lead to more earned media and brand
advocates who feel a stronger emotional attachment to the brand.
An example of this is the explosion of the use of VR as an
experiential tool as it allow you to immerse yourself in a controlled
environment, that wouldn't be possible at home (just now).
Brands can no longer just use one way messaging.

As consumers, we need and now expect the diﬀerentiator of
seeing and then having experiences that embody that brand
and re-enforce messaging.

!
SXSW is the perfect place to see that in action.

(Nerd alert)…. As an avid Game of Thrones fan, I was
undeniably excited to hear that they were planning on running
a GOT experience at SXSW.

I had stumbled upon the #SXSWesteros hashtag, and knew I
had to go and check it out!

!
Away from the main downtown area, I came across a big box
warehouse covered in GOT branding.. and an enormous line
around it. As a delegate, I managed to skip the line - what I
eventually found inside would have been worth the wait
anyway.

!
I left the Texas sun and entered an entirely blacked out and
air-conditioned space, except for two illuminated
“experiences”. The ﬁrst required you to have your picture
taken on the lron Throne itself – and although the geek in me
loved this, the second experience was the truly exciting part.

!
A raised stage with three huge projected portrait displays was
revealed. Each had a wooden sword upright, placed in front of
it.

!
I have a soft spot for physical/digital installations, so I was very
excited to see what the reveal might be.

It was an incredibly accurate experience, and hugely
responsive to the user’s movements. The fans that
took part then shared the original artwork created via
their social networks, all of which helped to promote
the new series as well as the latest sound track.

!
This was a great example of a simple, but very well
executed, use of technology and creativity combined
to engage with fans and consumers.

I advise checking out some of the GOT artwork,
and coverage of the experience, to see how eﬀective
it was – the pieces are beautiful!

!
<—ME

Make it engaging
The environments we inhabit need to evolve and
adapt with the people that occupy them, taking
into account elements such as sound, time of
day, social feed and even mood
Rick Lin - Creative Technologist - Urban Matter

We are seeing an increasing culture of
sharing moments on the go (some would
say over sharing!) paired with the growing
consumption of bite sized content. These
are permanently attached to our online
profiles, which could come back at a later
date to haunt us.

To grow with this movement, we see more
and more apps coming to the market that
enable the younger demographic to adopt
this and share time or location specific
content such as Snapchat, and Meerkat. It
also creates a feeling of urgency to be part
of something almost secret, as you know
once its gone it’s gone.

!
This offers exciting new possibilities for
brands and we have started to see some
great examples that have embraced these
new platforms…
Snapchat culture

Meet Meerkat
As a ‘Snapchat' generation, looking to share our every moment
on social networks, something like Meerkat has the potential to
be huge. I’d be keen to see if it will make the leap from the
early adopters to a more mainstream audience.

!
The greatest challenge will be for them to try and keep up the
momentum post-SXSW. Let’s face it, we all have a folder on
our phones of apps we may have downloaded and used once
or twice, but now lie dormant. It’s my apps graveyard folder.

!
I’m keen to see Meerkat avoid this, and excited for the
opportunity it could hold for brands willing to try out new
platforms to tap into a younger demographic.

Every year at SXSW, a wave of new and exciting apps try to make a
splash, and command a spot in our mobile app. real estate.

!
This year the app. I heard the most fuss about across a number of
sessions was Meerkat - an easy-to-use, live streaming app that
allows users to share their unique moments and experiences.

I thought I would give it a go and capture a bit of my experience on
the last day of SXSW. I was pleasantly surprised by how easy it was
to get started.

I pounded the streets of Austin with the device, checking out bands
and various pop-up experiences. Within ten minutes I had eight
people watching - at peak time, I had around ﬁfty.

It oﬀers a real “in the moment experience” that you can share with
others who would want to be part of it but physically not attend.

!
Basic overview

• It links to your Twitter credentials.

• You can stream instantly, or you can schedule a stream for a
later time.

• It posts a link to Twitter the minute you start streaming so that
people can follow you.

• Numerous people can watch your stream from any device and
are held in a group forum.

• You can like, retweet or comment on the stream.
Meerkat is about the engagement between brand
and consumer via a live stream broadcast. As it is
in the moment, it’s not trying to be perfect and
planned shot for shot, and that could be a
challenge for some brands.
Pete Cashmore - CEO and Founder of Mashable

Make a difference
Some examples of how you can do this

!
• Be attentive and responsive on social media: pay
attention to how people are engaging with you
and take time to respond

!
• Offer something of value: position yourself as a
resource to consumers when you engage, make
them want to come back

!
• Make positive, emotional connections: create real,
original content that resonates with your
audience.
There has been a a lot of talk regarding millennials (or
generation Y) currently coming through school, college
and moving into the work place. This demographic
have different goals, passions and ways of working due
to the impact of growing up in an internet-enabled,
hyper connected world. They have a digital, liquid,
collective mindset.

!
These millennials are disrupting the traditional
processes in a good way. They challenge by breaking
the expectations of the brands and services they
engage with. The selection of options at their finger tips
(via a quick search on Google) impact on the way
organisations need to approach their relationships with
consumers. They now face a more level playing field
with their customers and need to be more open and
transparent with this more enabled market sector.

!
This should be considered a positive, as it creates great
opportunities to have more meaningful interactions.

To be seen now more as a friend or extension of who
they are, as opposed to the traditional product or
service provider model.

Every child is an artist, the trick is to be one
once you grow up.
Pabilo Piccaso

Al Gore gave a talk at SXSW : ‘Climate
Change: Challenge & Opportunity’

He focused on the ever-growing
demand for transparency of an
organisation’s operations and impact.
Society now rightly expects more
transparency, and access to
information has exposed a number of
individuals and companies that may not
be conducting themselves in the
correct moral or ethical way.

!
Whistle blowers and Freedom of
Information ambassadors like Ed
Snowden and Julian Assange have led
to new public revelations of sensitive
and contentious information.

!
This ought not to be seen as a negative
but as a welcome opportunity for
brands to position themselves in a more
positive light. Apple for example has
shared info. on its environmental impact
from product manufacture & energy
consumption, and has worked hard to
turn that into a positive.

Be transparent

In-audible mobile triggering
system using existing speakers
Social photo challenging app
designed for explorers
Rent bikes directly from your
phone. Match with nearby bike,
unlock it and ride it wherever
Insole for your shoe that generates,
stores and charges your devices
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