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Internet of Things

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What: Connecting any device to the Internet.
Why It matters: Because although exact figures are not yet available (since it is a new trend), the fact is that advertising will become a critical point to understanding the user. It will be like doing re-targeting, except it will be directed at things.

The concept behind IOT is basically that of connecting any device to the Internet. This can include anything: washing machines, cars, cell phones, microwave ovens, motors, lamps, or anything else that can be turned on or off. It is the largest network that will be connected to humans in every way. IOT connects things with things, and things with people.
IOT connections worldwide will grow from 6 billion in 2015 to 27 billion in 2025, at a compounded annual rate of 16 percent, according to projections by Machina Research.

The market value of IOT in LatAm is over $250 billion.

The market value of IOT in LatAm is over $250 billion, according to IDC. Most of the investment in IOT comes from Brazil, Mexico, Argentina, and Colombia. Brazil has more than 18 million connected devices, followed by Mexico with 10 million, Argentina with 4 million, and Colombia bringing up the rear and growing with 3 million connected devices.

Technological advancement brings new solutions and replaces obsolete technologies with new innovative products, such as the smart buttons used by Amazon today in the U.S., that allow placing an order with a single click on the product. LTE technology (5G) is also advancing, leaving behind 2G and 3G as standard connection speeds.

Fiber optic penetration in homes is also being used for faster browsing or accessing an endless stream of online products.

Mexico

According to IDC, Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail. Mexico has more than 10 million connected devices, which represents only 6% of the connected population. This shows that Mexico is behind in this important market. It should be noted that ATT, the world leader in telephony, has a Mexican presence and is betting more than $1 billion in this area during the next 3 years. The deployment of 4G-LTE is of utmost importance for the development of IOT.

Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail.

Telcel, one of the companies most committed to this technology, launched its IOT expo a couple of weeks ago, where it presented the first smart trash can. When full, the trash can emits a signal alerting that it needs to be emptied. During this event, Telcel also displayed some smart lamps that light up according to the time of day, and also emit a signal when the bulbs need replacement.

CISCO has presented an implementation plan for several Mexican companies, to teach the banking, commerce, and agriculture sectors how to make their current products more efficient and have better control over them.

Brazil

Brazil’s IOT market was valued at $15 billion in 2015 and is expected to exceed $35 billion by 2019, at a compounded annual rate of 20.7%.

Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%)

Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%). The Brazilian government’s efforts to accelerate the adoption of IOT are based on the launch of a platform. This initiative will be part of the Brasil Inteligente (Smart Brazil) program, which will replace the National Broadband Plan (PNBL). The three-year plan has a budget of $9.8 million.

The Future of Marketing

The development of marketing campaigns in this ecosystem will change the way we currently do advertising, as the devices or things we use will know our tastes and activities, and companies will be able to aim their advertising in a more objective and direct way to the real target market, without having to spend more money than they do now. Just imagine your refrigerator being able to help you with your food shopping, your diet, or with the perfect recipe for that dish you have in mind, directly requesting the ingredients needed from the supermarket.

Advertising will then become critical to understanding the user. It’s like doing a re-targeting, but in this case it will be directed at things. Because all of this is new, there is no data at the moment, but we will see dramatic changes ahead in advertising. In LatAm, telecommunications companies are the most active in this area, working hand in hand with various sectors to interconnect things. Telcel and Claro have deployed smart advertising campaigns that identify their company’s customers when they enter a mall, and can send them a promotion or coupon tailored to their product searches, giving the customer the opportunity to buy it at a more affordable price.

 

Join us at PORTADA Mexico!

Join us at PORTADA Mexico!

This year’s GSMA Mobile World Conference is over, but what awaits to be seen is how this year’s trends are implemented in the industry. Attendee Pedro Forwe, director of Argentina-based programmatic advertising firm KickAds, reported back to Portada about the highlights from this year’s event, and the mobile ad industry’s biggest challenges in 2016.

Record Attendance

One of the most impressive aspects of this year’s MWC was its size, as attendance surpassed 100,000 (from 204 countries) for the first time ever. Over 2,200 companies from industries like finance, healthcare and automobiles convened in the Fira Gran Via and Fira Montjuic event venues in what GSMA Ltd CEO was John Hoffman said “incorporated a diverse range of events, spanning multiple sectors and interests, reflecting the expanding role of mobile around the world.”

Pedro Forwe, director, KickAds
Pedro Forwe, director, KickAds

Exhibitors were mobile operators, software companies, equipment providers and internet companies, and the event featured keynote events delivered by big players like AT&T, BuzzFeed, Cisco, Ericsson, ESL, Facebook, Ford Motor Company, GE Digital and Getty Images.

But to Forwe, “the biggest highlights were clearly the new Samsung Galaxy model, the S7, and LG’s LG 5, which stole everyone’s attention at the event.” These two new smartphones are the most talked-about Android models of the year, with the former offering liquid cooling, wireless charging and water resistance and the latter offering a removable battery, an impressive modular accessories system and a Type-C USB port.

Ad Blocking on the Tip of Everyone’s Tongue

One of the hottest topics at the event was how to deliver content that gets past ad-blockers. “There were a few very interesting discussions about the topic, and about the most efficient way to put together advertising campaigns that are non-invasive and friendlier to the user,” says Forwe.
But it appears that there was no clear conclusion to this debate, as ad blockers and ad sellers continue to clash, and industry leaders are unable to agree on the best solution. It may not be as urgent as some thing, though, as mobile ad blocking penetration will still only reach 0.3% by this year, according to James Hilton, global CEO and founder at M&C Saatchi Mobile. The key will be changing advertising approaches so that users don’t feel the need to download ad blockers. Whether that’s possible is yet to be seen.

Virtual Reality Everywhere

When Mark Zuckerberg says something’s going to be big, you know people will start paying attention to it. And that’s exactly what happened with virtual reality, as a wave of companies dedicated to creating different kinds of mobile VR experiences has emerged in the past year or so.
But the path to profit in this industry has not been discovered yet. Fore claimed that he “observed a strong tendency with everything related to virtual reality…but the biggest problem will be monetizing it for developers.”

The Internet of Things Still Happening

Although sometimes it feels like we’ve been waiting for the IoT to really happen, Fowre confirmed that the the Internet of Things “is still growing very strongly,” and was a big standout at the MWC. The IoT section of the event proposed a world full of connected smart devices like smartphones, smartwatches and VR headsets developed by companies like Samsung, LG and Sony.
There is understandable pressure to innovate in this sector, as spending for IoT-inspired services like network deployment, operations management and data analytics is expected to hit $257 billion this year.
Fowre also noted that this year’s event featured many solutions for more efficient information management in the wake of the Big Data revolution. This was to be expected, as the Internet of Things generates such a high volume of Big Data that needs to be organized and analyzed if anyone is to make use of it.

Video Advertising: The Ideal Engagement Tool

To Fowre, the biggest highlight when it came to advertising was video. Mark Zuckerberg went so far as to claim that there is more engagement with videos on Facebook than it does on its YouTube channel. “Even the booth in Hall 8.1 directed all your attention and communication to Video. The most interesting thing, in this sense, was mobile video apps, which had strong growth in 2015,” Fowre said.
Fowre noted that other highlights included Latin America’s growth in “monetizing inventory in the region through innovative formats – mostly Video and Native Ads.”
There’s so much going on in mobile that it’s almost impossible to lump all of the area’s activity under one industry label. What’s certain is that mobile technology is now relevant to almost every aspect of our lives, and while some trends will come and go, the way we use our phones will dictate the direction of many industry sectors’ attempts at innovation.

 

sands-floor-sm As weary ad execs wandered home from CES 2015, we took a look at what this mother of all consumer electronics shows revealed about the future of advertising. We identified five trends that we think will matter for advertisers in the years to come, and checked in with three smart executives to get their thoughts.

1. Connected Watches

They show no sign of going away, with twice as many wearable exhibits as at CES 2014. But ads on them? Really? Probably, according to Jeremy Sigel, director of mobile, North America, for digital agency Essence. “Similar to mainstream mobile ad formats, it is easy to envision a full-screen interstitial ad or even a 15-second video on a smartwatch,” Sigel says. He points out that while a watch face may seem small, the dimensions would be similar to a Facebook mobile newsfeed ad. “While smartwatch ads may start there, the bigger opportunity will be highly contextual push notifications that strive to be additive, and branded applications that are inherently helpful to keep a brand top-of-mind.”

smart-watches-sm

If you think people won’t accept ads on their smartwatches or fitness devices, just remember that in the early days of mobile, people said the same thing about their phones. In fact, some of us, ahem, are old enough to remember when advertising on the World Wide Web was frowned upon.

2. OTT TV:

Dish’s SlingTV streaming service gave another push to over-the-top video, enabling subscribers to watch live TV, video-on-demand and 12 cable channels on a variety of devices. It also could open the way for better targeting and tracking of TV ads. Sling did not immediately respond to an email about its ad plans, but third-party ad networks may start salivating now.

Pat McKenna, CEO of Strike Social, says Sling and other OTT services will help marketers get a more accurate comparison of the performance of video ads on TV and digital. Strike Social is a third-party TrueView advertising, targeting and analytics platform that tracks video-ad performance across YouTube, Twitter and Facebook. The key to achieving this, according to McKenna, is for OTT services to provide APIs and consistent data to allow ad servers and analytics platforms to consume their data. “The opportunity for us is to marry performance data across all platforms, and then provide the report to [advertisers],” he says.

David Santana, art director at global, digital marketing agency Deep Focus, says that Sling TV’s $20 monthly subscription, no-contract deal will be attractive to Hispanic consumers, who are gravitating to other companies like T-Mobile that don’t demand customers lock themselves in. He says a bigger win will be if Sling TV develops content packages for Hispanics, the way that DirectTV does. (In December DirecTV introduced OTT Video Service Yaveo targeting the Hispanic population.) “The opportunity to tailor content packages to this market is important to see it grow,” Santana concludes.

The opportunity to tailor content packages to this market is important to see it grow.

3. Connected and autonomous cars

Internet-connected cars have been around at least since BMW introduced ConnectedDrive in 2011 – and CES 2014 seemed to be the CES of the Car. This year, more than a dozen cars were on display, many of them highlighting current or concept connected-car technology. With Google powering or at least participating in several of these offerings, you have to wonder: Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls. There’s also a strong –someday – play for ads on the so-called infotainment screens, the ever-larger digital dashboard screens that show everything from what’s playing on the sound system to your navigation route to use Facebook.

[youtube https://www.youtube.com/watch?v=SyCox6In5bg&w=560&h=315]

How about sending the driver a McDonald’s coupon when she’s approaching the restaurant? Actually, TeleNav has been doing that since 2010. The problem has always been, and continues to be for now, getting enough scale to make it worthwhile for national advertisers to bother. Maybe someday …

Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls?

 

Nick Cannon playing virtual volleyball
Nick Cannon playing virtual volleyball

4. Virtual Reality

Volvo, Dos Equis, Marriott, HBO, Tourism Australia and a handful of movie marketers have already released branded apps. VR is cool and fun, but hampered by the need to use a headset. Joining the fray among the expensive and still-in-beta Oculus Rift and the adorably crafty – and cheap – Google Cardboard headsets, Avegant and Samsung demonstrated virtual reality at the show. In the short term, VR marketing will live at trade shows and special events, where staffers can be on hand to manage the hardware and software.

Deep Focus’ Santana gives kudos to Volvo for it’s VR campaign that sent consumers who registered a Google Cardboard viewer kit. “That make it inclusive,” he says. “You don’t need a lot of money or to be in a major market to experience virtual reality. That’s important for the Hispanic community.”

Eventually, Digital Agency Essence’s Sigel thinks, that these virtual-reality “experiences” could contain ad units, in much the same way ads have been inserted into TV broadcasts, as well as into video and console games. He gives the example of a VR experience that lets you sit court-side at an NBA game. “In addition to traditional signage, the t-shirts of patrons, concessions, chants from the crowd, a comment from a court-side celebrity and shouts from players may all be sellable units,” he says.

By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?

5. Big data gets ginormous with connected-everything

The Internet of Things was one of CES 2015’s Top Tech Trends, along with wearables and autonomous cars. All these devices will generate data either all the time or a lot of the time. Location-based data combined with behavioral and contextual data could make ad targeting incredibly more complex – and possibly better. The quantified self, continuously tracked by wearables, could alone generate unprecedented amounts of usable personal data. The possibilities – futuristic as they are – are fascinating. By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?  Would his anonymous personal profile include the information that he’s more likely to respond to ads 20 minutes after he’s completed a run? How about a tweet from New Belgium Brewing after that run? Now, that’s the future of advertising.

sands-floor-sm As weary ad execs wandered home from CES 2015, we took a look at what this mother of all consumer electronics shows revealed about the future of advertising. We identified five trends that we think will matter for advertisers in the years to come, and checked in with three smart executives to get their thoughts.

1. Connected Watches

They show no sign of going away, with twice as many wearable exhibits as at CES 2014. But ads on them? Really? Probably, according to Jeremy Sigel, director of mobile, North America, for digital agency Essence. “Similar to mainstream mobile ad formats, it is easy to envision a full-screen interstitial ad or even a 15-second video on a smartwatch,” Sigel says. He points out that while a watch face may seem small, the dimensions would be similar to a Facebook mobile newsfeed ad. “While smartwatch ads may start there, the bigger opportunity will be highly contextual push notifications that strive to be additive, and branded applications that are inherently helpful to keep a brand top-of-mind.”

smart-watches-sm

If you think people won’t accept ads on their smartwatches or fitness devices, just remember that in the early days of mobile, people said the same thing about their phones. In fact, some of us, ahem, are old enough to remember when advertising on the World Wide Web was frowned upon.

2. OTT TV:

Dish’s SlingTV streaming service gave another push to over-the-top video, enabling subscribers to watch live TV, video-on-demand and 12 cable channels on a variety of devices. It also could open the way for better targeting and tracking of TV ads. Sling did not immediately respond to an email about its ad plans, but third-party ad networks may start salivating now.

Pat McKenna, CEO of Strike Social, says Sling and other OTT services will help marketers get a more accurate comparison of the performance of video ads on TV and digital. Strike Social is a third-party TrueView advertising, targeting and analytics platform that tracks video-ad performance across YouTube, Twitter and Facebook. The key to achieving this, according to McKenna, is for OTT services to provide APIs and consistent data to allow ad servers and analytics platforms to consume their data. “The opportunity for us is to marry performance data across all platforms, and then provide the report to [advertisers],” he says.

David Santana, art director at global, digital marketing agency Deep Focus, says that Sling TV’s $20 monthly subscription, no-contract deal will be attractive to Hispanic consumers, who are gravitating to other companies like T-Mobile that don’t demand customers lock themselves in. He says a bigger win will be if Sling TV develops content packages for Hispanics, the way that DirectTV does. (In December DirecTV introduced OTT Video Service Yaveo targeting the Hispanic population.) “The opportunity to tailor content packages to this market is important to see it grow,” Santana concludes.

The opportunity to tailor content packages to this market is important to see it grow.

3. Connected and Autonomous Cars

Internet-connected cars have been around at least since BMW introduced ConnectedDrive in 2011 – and CES 2014 seemed to be the CES of the Car. This year, more than a dozen cars were on display, many of them highlighting current or concept connected-car technology. With Google powering or at least participating in several of these offerings, you have to wonder: Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls. There’s also a strong –someday – play for ads on the so-called infotainment screens, the ever-larger digital dashboard screens that show everything from what’s playing on the sound system to your navigation route to use Facebook.

[youtube https://www.youtube.com/watch?v=SyCox6In5bg&w=560&h=315]

How about sending the driver a McDonald’s coupon when she’s approaching the restaurant? Actually, TeleNav has been doing that since 2010. The problem has always been, and continues to be for now, getting enough scale to make it worthwhile for national advertisers to bother. Maybe someday …

Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls?
Nick Cannon playing virtual volleyball
Nick Cannon playing virtual volleyball

4. Virtual Reality

Volvo, Dos Equis, Marriott, HBO, Tourism Australia and a handful of movie marketers have already released branded apps. VR is cool and fun, but hampered by the need to use a headset. Joining the fray among the expensive and still-in-beta Oculus Rift and the adorably crafty – and cheap – Google Cardboard headsets, Avegant and Samsung demonstrated virtual reality at the show. In the short term, VR marketing will live at trade shows and special events, where staffers can be on hand to manage the hardware and software.

Deep Focus’ Santana gives kudos to Volvo for it’s VR campaign that sent consumers who registered a Google Cardboard viewer kit. “That make it inclusive,” he says. “You don’t need a lot of money or to be in a major market to experience virtual reality. That’s important for the Hispanic community.”

Eventually, Digital Agency Essence’s Sigel thinks, that these virtual-reality “experiences” could contain ad units, in much the same way ads have been inserted into TV broadcasts, as well as into video and console games. He gives the example of a VR experience that lets you sit court-side at an NBA game. “In addition to traditional signage, the t-shirts of patrons, concessions, chants from the crowd, a comment from a court-side celebrity and shouts from players may all be sellable units,” he says.

By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?

5. Big Data Gets Ginormous with Connected-Everything

The Internet of Things was one of CES 2015’s Top Tech Trends, along with wearables and autonomous cars. All these devices will generate data either all the time or a lot of the time. Location-based data combined with behavioral and contextual data could make ad targeting incredibly more complex – and possibly better. The quantified self, continuously tracked by wearables, could alone generate unprecedented amounts of usable personal data. The possibilities – futuristic as they are – are fascinating. By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?  Would his anonymous personal profile include the information that he’s more likely to respond to ads 20 minutes after he’s completed a run? How about a tweet from New Belgium Brewing after that run? Now, that’s the future of advertising.

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