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    2014:10 Things That WillMatter for Brands

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    3/ MAKE 2014 MATTER

    10 THINGS THAT WILL MATTER FOR BRANDS

    4/ #1 TWITTER TAKEOVER

    5/ #2 RELEVANT RETAIL

    6/ #3 RISE OF THE CXO

    7/ #4 COLLABORATIVE ECONOMY

    8/ #5 USER EXPERIENCE WRIT LARGE

    9/ #6 THE NEXT IPHONE THATS NOT AN IPHONE

    10/ #7 OWNED MEDIA STRATEGIES FOR CONTENT MARKETING

    11/ #8 REAL TIME CONVERSATION

    12/ #9 BIG DATA GETS SMALL

    13/ #10 STORYTELLING

    14/ TALK TO JACK

    WHATS INSIDE

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    Its an exciting time to work in the world of brands.Thats not just because there are new technologiesand tools emerging all the time to help marketersbetter understand, communicate and build relationshipswith their customersits also because theres such astrong (stronger than ever?) recognition of the impactthat creativity, brand and experience have in fuelingbusiness growth.

    To that point, a great line from this years Cannes

    Festival of Creativity was this simple assertion byCokes CMO, Joe Tripodi: We believe theres a directline of sight between creativity and performance inthe marketplace.

    Innovation abounds, and there are lots of trends thatwill matter for brands in the year to come. We cant

    talk about all of them, but in the pages that followweve called out the ten we think should matter mostto brands in 2014.

    What will all this mean for brands? That depends, ofcourse, on the brand, and on how brave its in-houseteam and agency partners are willing to be.

    Liz Bigham/32014: 10 Things That Will Matter for Brands

    Make 2014 Matter

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    With Twitters IPO a recent memory and many of us royallysick of the 24/7 news coverage, it might not feel like weneed to call out Twitter as a trend. Yet two important thingswill happen in 2014.

    First, in the year to come, Twitter will likely go mainstreamin a big way. It currently has about 232 million active users(and some 600 million inactive); look for active users togrow significantly as it evolves from the quirky nerd of thesocial media world to top of the pack. Twitter is already the

    preferred social media network among teens; according tomultiple studies, its more popular than Facebook amongthis age group. As go teens, so go the rest of us (although,having said that, one of my favorite Wall Street Journalstories this year was about a hugely influential grandmotheron Twitter, @grannyny, so look for Twitter to perform as wellwith hipster grandmas).

    Second, Twitter will continue to reap the benefits of some

    very advertising-friendly decisions. It bought Vine. It continuesto be open to outside developers working to find newapplications for Twitter. It added photos and Vine videos toits Twitter feed, and advertisers are already experimenting(for better and worse) with the new possibilities. And eventhough its already far more mobile-advertising ready thanthe competition, its reported to be rolling out still morenew mobile ad products. This March, Twitter predicted adrevenue in 2014 will top $1 billioncould it be even more?

    1TwitterTakeover

    #1

    /42014: 10 Things That Will Matter for Brands

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    Retail has been changed forever by e-commerce and alwaysconnected consumers. But the intriguing retail trend in 2014 isntdoom-and-gloom (think showrooming, or cost-conscious consumers

    looking in-store and then buying online)its the very positiveevidence of brands figuring out how to make retail more relevantto consumers.

    Relevant retail comprises experiences that are built around givingshoppers what they wantand can only get in the physical storesetting or a direct brand-to-customer interaction. Think expert staff,inspiring interactive technology and the chance to touch and feelproducts before making the purchase. Big box retailers still strugglewith achieving this mix but can find inspiration from brands asdiverse as Burberry, IKEA and Warby Parker.

    Still other brands are achieving relevant retail through whatContagious calls experiential vending machines like the one LOralParis installed in a New York City subway station. As a womanapproaches the machine, cameras and sensors in its mirrors detecther coloring and outfit and recommend eye, lip and nail products she

    can buy on the spot with a credit card.

    According to Contagious, The appetite for new, intelligent vendingmachines, which feature sensors, Wi-Fi-connectivity and LCD screens,is growing [and will reach] 2.33 million [units] by 2016, predictsglobal market research firm TechNavio.

    RelevantRetail

    #22

    /52014: 10 Things That Will Matter for Brands

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    In their excellent book on customer experience, HarleyManning and Kerry Bodine assert that in the near future,

    literally every company will compete on the basis ofcustomer experience. In fact, they already domost justdont realize what that really means, whats at stake, orhow to do it well.

    Companies are increasingly aware that experience is criticalto business success. Nine out of ten consumers say thatthey choose brands on the basis of the overall experience;

    six in ten say theyll pay more for a brand that offers aunique experience. Better experience has been correlatedto higher purchase intent, decreased customer churn andgreater word of mouth awareness. And over a five-yearperiod, companies with superior experiences beat so-calledexperience laggardsand the S&P 500 Indexon stockperformance.

    Inevitably, as companies begin to invest in experience,they will look to experts inside their companies (as well aspartners outside) to lead experience. The Chief ExperienceOfficer, or CXO, will be on the rise in 2014 for a simplereason: by leading customer experience, CXOs helpcompanies make more money (ka-ching!) and have abig role to play moving forward.

    Rise ofthe CXO

    #3 3

    /62014: 10 Things That Will Matter for Brands

    4

    5

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    Odds are, if you asked ten people to define collaborative economy,

    youd get ten different answers. But thats less an indication of

    confusion than it is of rich possibilities. Building from the basicpremise of shared access rather than exclusive ownership, often

    enabled by technology and peer communities, what unites the many

    visions of collaborative economy is this: new pathways to growth for

    virtually any kind of brand.

    The most familiar forms of collaborative economy comprise the shared

    use/shared investment approach familiar from car-sharing brands like

    Zipcar (and now Hertzs 24/7 and GMs Relayrides), peer-to-peer

    accommodation companies like Airbnb, or (a current favorite amongmy over-scheduled friends), the chore outsourcing network TaskRabbit.

    Collaborative economies can also include the kinds of open

    marketplaces that are helping niche as well as mainstream brands

    achieve growth by collaborating with like-minded brands: think

    the new marketplace from TOMS shoes and Staples opening its

    e-commerce site to outside companies. Jeremiah Owyang estimates a

    76% increase in collaborative marketplaces in 2013.

    Finally, 3D printing: its the most immediately relevant innovation in

    the collaborative economy world. It got a lot of press in 2013 but

    will certainly begin to have more mainstream impact in the year to

    come. For example, HP says it will enter the 3D marketplace in 2014,

    opening up the possibility that 3D will begin to shift normative models

    of fabrication and distribution in a big way.

    /72014: 10 Things That Will Matter for Brands

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    CollaborativeEconomy

    #4

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    As a term, user experience has its roots in the internetas do mostthings nowadaysand speaks to the profound leap in quality thatoccurred in the mid-1990s as web strategists began to define successaround actual user interaction and behaviors versus static web features

    and design. Think of it as an outside-in approach (experience definedaround users) versus inside out (experience defined by brand).

    Increasingly, brands are applying a user experience approach on agrander scale, applying its lessons outside the web. Thats evident inthe rising interest in customer experience as a category of investmentand in enlisting experience leaders like CXOs (see trend #3 above).

    One area thats especially intriguing moving into 2014 is theapplication of user experience thinking around product design and

    brand extensions. Why? Because this is where its clearest that brandsare seeking first to understand their customers lives and then to developproduct offerings that actually meet their needs.

    An example now being tested in the Big Apple: American Expresspartnered with Verifone to enable its customers to use their rewardspoints to pay for cab rides in New York City. In the short term, thisis a convenient way for customers to use rewards points, which oftenlanguish unused; longer term, its opening up much broader possibilitiesfor the brand to encourage frequent, small uses in

    mobile settings.

    Another example: Heineken is testing a home draft beer machineconcept in Italy and France, designed by renowned Marc Newson andcalled The Sub. Think of it as Nespresso for designer beerthatis, re-imagining how a common consumer product is delivered, madeand consumed in the home, as Nespresso did when it introducedsingle-serving capsules some five years ago. For Heineken, since thevast majority of beer consumption occurs in home, re-thinking thisexperience around native consumer behaviors makes

    incredibly good sense.

    /82014: 10 Things That Will Matter for Brands

    UserExperienceWrit Large

    #58

    9

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    By the 2013 holiday shopping season, Sony and Microsoft will

    be waging an epic battle for market share as each releases a

    game-changing new console: respectively, the PlayStation 4 andXbox One. This will play out in a big way for brands in 2014 and

    beyond. Its hugely important for a variety of reasons.

    First, neither has released a major update of its console in almost

    a decadeand each is expanding computing power ten-fold (yes,

    you read that correctly).

    But secondand what truly makes this so important for brands

    the possibilities of the new platforms go far beyond gaming. Xbox

    One in particular has been pitched to the advertising community

    as potentially revolutionizing media consumption by bringing

    together everythingTV, gaming, the web, Skype, you name it

    in one connected, always-on, gesture-controlled device.

    Inevitably, a change this significant in hardware will have a big

    ripple effect on the media experience itself. Think of how much

    change was wrought on content when smart phones like theiPhone went mainstream. The impact of PlayStation 4 and Xbox

    One may be similar.

    /92014: 10 Things That Will Matter for Brands

    The NextiPhone

    That s NotAn iPhone

    #6

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    Content marketing may sound as thrilling as a root canal, but its

    considered by many CMOs (78% according to one study) to be

    the future of marketing. Yet only half of those surveyed had strongcontent marketing strategies in placesuggesting both a need and an

    opportunity for brands in 2014.

    First, the what of content marketing: its custom media thats

    developed to initiate a conversation with customers, new or existing.

    Next, the why: in a market thats both competitive and endlessly

    noisy, its critical to have a reason to talk with customers, especially if

    the conversation is around educating and adding value to their lives.

    Inbound marketing initiatives built around content are important for all

    brands, but theyre considered especially effective in the B2B space.

    The big question for brands is the how. Too often brands focus

    simply on the distribution channelsand thats tempting when there

    are so many exciting things happening in the social media space. But

    arguably, the big opportunity for content marketing lies in the owned

    media spacethat is, in developing unique brand experiences that

    engage customers more deeply, and that in turn generate a lot of wordof mouth and ancillary user-generated content.

    In 2014, the content marketing trend should be a more strategic use

    of owned media like event marketingsince 67% of B2B marketers

    surveyed said events are the most effective tactic for content marketing

    enhanced by a rigorous review of process and readiness for sharing

    content (see trend #8 below) as well as a commitment to great

    storytelling (see trend #10 below).

    10

    /102014: 10 Things That Will Matter for Brands

    Owned MediaStrategiesfor ContentMarketing

    #7

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    One of the biggest surprise marketing coups of 2013Oreos

    timely tweet during the Super Bowl blackout in February

    will evolve and grow up as a big trend for 2014: real time

    marketingor better yet, real time conversation.

    In the most basic sense, real time marketing is about responding

    quickly to events as they happen, hijacking a big moment in time

    that millions of people are already watching or talking about

    (thus Oreos genius You can still dunk in the dark Tweet

    during the Super Bowl).

    What does it take to turn a creative response around so quicklyto an unforeseeable event? (As opposed to, say, the endless,

    long-planned and mostly unsuccessful attempts by brands to ride

    the coattails of the much-anticipated royal birth in July?) A lot

    of discipline and what many brands describe as a newsroom

    approach with staff and agencies deployed accordinglyand in

    fact thats exactly what Tides brand team calls its rapid response

    team: a newsdesk.

    The bigger opportunity in real time marketing is less aboutcute or too obvious tie- ins to events in culture and more about

    initiating conversations where brands have something relevant

    to contributeconnected, of course, to things consumers care

    about. Interestingly, among the brands doing well in this category:

    General Electric, which creates surprisingly relatable content

    celebrating little-known holidays like National Inventors Day and

    International Day of Radiology (nerds of the world, unite!) as an

    opening for talking about how innovative technology makes

    life better.

    /112014: 10 Things That Will Matter for Brands

    11

    12

    Real TimeConversation

    #8

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    With all the stories in 2013 about wearable deviceswhich mostly

    means Google Glass, but also Oakley Smart Glass, the Samsung

    Galaxy Gear Smart Watch, GoPro cameras and other productsitsinevitable that in 2014 well see opportunities for brands to use big data

    in a very targeted way to enhance individual customer experiences.

    How? Big data helps brands use unthinkable quantities of consumer

    information to see the big picture, to unearth trends and identify

    opportunities that will grow their businesses. Thats great for brands,

    of course, but its not always evident how this will help consumers.

    Doesnt it seem like objections about privacy issues escalate in direction

    proportion to the perception that big data and data mining are justabout being sold more stuff or advertised to in more intrusive ways?

    Heres the thing: brands can also use data to enhance consumer

    experienceprecisely by going very small. By marrying big data

    insights to better understand customer experience with the pin-prick

    localization that comes from consumers equipped with wearable

    devices, brands can be truly brilliant at improving experience for

    individual customers. Retailers and service-driven brands like hotels,

    airlines and banks can use Google Glass and its ilk to offer enhanced

    guidance: imagine assembling a lamp with help from the retailer at

    home on your wearable device, or a concierge that anticipates your

    needs, or airline and banking service that doesnt feel impersonal.

    Big data tends to occupy most of the conversation in marketing circles,

    particularly when holding company leaders make big pronouncements

    about advertising agencies becoming data companies, but the real story

    in 2014 should be brands using data to get up close and personal with

    consumers in ways that actually make experience better.13

    /122014: 10 Things That Will Matter for Brands

    Big DataGets Small

    #9

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    Storytelling is so old, its new. Its what weve always done to build

    brands. Its truly transmedia. How we tell stories will (and must) always

    change, but being good at storytelling is tablestakes for our industry. Ifyoure not good at storytelling, its time to find a new job.

    Storytelling was one of the big buzzwords at Cannes this year, and

    some of the most awarded entries (think Doves Real Beauty Sketches, or

    P&Gs Proud Sponsor of Moms) were masterpieces of the art.

    Moving into 2014, there are exciting developments at our disposal in

    the craft of storytelling for brands. Digital and social are ever more

    nimble and native to consumers daily experienceand the web ismore rife with visual storytelling tools than ever. Think Vine, short-form

    Instagram videos, Snapchat and the addition of pictures and videos to

    Twitters feed (see trend #1). Skewing to the visual plays to the simple

    fact (the bane of copywriters everywhere) that people process visual

    information 60,000 times faster than they do written words.

    We waste a lot of time worrying about the categorization of what we

    create, but storytelling is a greater uniter than the media touchpoints that

    divide us. As Steven Althaus of BMW said at Cannes, I beg us as an

    industry to stop talking about traditional and nontraditional. Everything

    is just a way of telling a story. Were all storytellers here.

    The bottom line for brands in 2014: balance a back-to -basics approach

    to storytelling (i.e., be great at it) with a stronger understanding of how

    all the touchpoints in the broader brand story fit together.

    14

    /132014: 10 Things That Will Matter for Brands

    Storytelling

    #10

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    Contact: Liz BighamE: [email protected]: +1 212 401 7212

    Read our blog atblog.jackmorton.comFollow us ontwitter@jackmortonVisit us online atjackmorton.com

    About Jack MortonJack Morton Worldwide is a global brand experience agency with offices

    on five continents. Our agency culture promotes breakthrough ideas about

    how experiences connect brands and peoplein person, online, at retail

    and through the power of digital and word of mouth influence. We work

    with clients to create powerful and effective experiences that engage

    customers and consumers, launch products, align employees and build

    strong experience brands. Ranked at the top of our field, weve earned

    hundreds of awards for creativity, execution and effectiveness.

    Jack Morton Worldwide 2013

    Talk to Jack

    To read our earlier white papers, visit our Slidesharechannel at slideshare.net/jackmortonww

    WHITE PAPERSJACK

    http://www.emarketer.com/Article/Twitter-Better-Than-Facebook-Targeting-Teens/1010336http://www.pewinternet.org/Press-Releases/2013/Teens-Social-Media-and-Privacy.aspxhttp://www.businessinsider.com/twitter-testing-mobile-app-install-ads-2013-11http://www.emarketer.com/Article/Twitter-Forecast-Up-After-Strong-Mobile-Showing/1009763

    http://www.slideshare.net/jackmortonWW/jack-retail-experiencehttp://www.slideshare.net/jackmortonWW/helen-graney-jack-morton-worldwide-submitted-30th-august-2013-v7-slidesharehttps://www.contagious.io/articles/subway-stylehttp://www.slideshare.net/jackmortonWW/jack-retail-experiencehttp://www.slideshare.net/jackmortonWW/helen-graney-jack-morton-worldwide-submitted-30th-august-2013-v7-slidesharehttps://www.contagious.io/articles/subway-style

    Harley Manning and Kerry Bod ine, Outside In: The Power of Putting theCustomer at the Center of Your Business (2012).

    Best Experience Brands: A Global Study by Jack Morton (2013): http://www.slideshare.net/jackmortonWW/best-experience-brands

    Watermark Consulting Analysis of CXi and Stock Performance, cited inOutside In.

    http://www.toms.com/marketplace

    http://www.ecommercebytes.com/cab/cab/abn/y13/m11/i07/s02http://www.web-strategist.com/blog/2013/11/07/collaborative-economy-strategy-marketplaces-expand-brands-with-a-community/

    http://www.zdnet.com/hp-gearing-up-to-enter-3d-printing-market-by-2014-report-7000022397/

    http://about.americanexpress.com/news/pr/2013/grab-a-cab-ride-with-points.aspx

    http://adage.com/article/creativity-pick-of-the-day/heineken-introduces-designer-home-draft-system/244866/

    http://www.ragan.com/Main/Articles/Infographic_Content_marketing_trends_for_2014_47524.aspx#

    http://www.ana.net/blogs/show/id/25506

    https://twitter.com/generalelectric

    http://digiday.com/agencies/martin-sorrell-wpp-isnt-an-advertising-company/

    http://www.prnewsonline.com/water-cooler/2013/11/01/break-out-the-crystal-ball-20-marketing-trends-for-2014-infographic/

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    Footnotes