Lab Weekly — 03/15/2019
Facebook’s Privacy Pivot, SXSW News Roundup, New Floor 9 episode, plus weekly news and stats roundup
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Lab Originals
Analyzing Facebook’s Pivot To Private Messaging
Facing increasing scrutiny and censure, Mark Zuckerberg announced Facebook will focus on building a platform for private, ephemeral messaging. The varying reactions to the pivot reveal a growing sense of uncertainty about the future of social media and, for brand marketers, a series of changes that would be unleashed upon the digital advertising ecosystem. Let’s take a close look at how likely this is to happen, and what it would mean for Facebook’s ad business.
In case you missed it…
How digital forces are transforming the way we play, both online and offline, and what brands need to do in response
By Sharon Soh (Head of Strategy, APAC, UM Worldwide)
How the trends from our Outlook report are playing out across the diverse markets in the Asia-Pacific region
2019 Mobile World Congress Recap
The smartphone market is getting interesting again after years of relative stagnation. Foldable and 5G phones wooed the crowd, but the future of mobile remains in flux.
Floor 9 Podcast
Episode 36: Partner Highlight — WeTransfer
This week, we are delighted to chat with Damian Bradfield, President and CMO of WeTransfer, about how WeTransfer aligns their services with the creative community, how their unique ad products differ from other display ads, and what today’s companies must do to navigate the online and offline world simultaneously. Plus, we also talk about how the tech industry is reacting to the increasing backlash and regulatory scrutiny, and how convenience will always win at the end of the day. Listen and subscribe on your favorite podcast player!
SXSW News Roundup
SXSW Hits Peak Brand Activations [ARS Technica]
For brands and tech companies looking to make a splash, SXSW has long been a good opportunity to create an experiential activation that, if well executed, will create some social buzz and draw attention beyond the event-goers. This year is no exception, as many of the usual suspects came back to Austin this week with elaborate on-site activations to offer festival-goers with engaging, immersive, and highly Instagram-worthy experiences.
Among them, HBO teamed up with the American Red Cross this year for “Bleed For The Throne,” a blood drive held within yet another LARPing-inspired “immersive activation.” Amazon assembled an Eden-like oasis in a 19,000-square-foot lot in downtown Austin to promote its upcoming new fantasy series Good Omens. Compared to years past, however, none of this year’s brand activations (with the arguable exception of the HBO one) had that wow factor that made it particularly stand out from a sea of brand activations.
Related: Rent the Runway launches first-ever pop-up at SXSW with West Elm [Digiday]; Viceland built a roller skating rink for its SXSW activation [AdWeek]
HBO Taps Snapchat For Its ‘Game of Thrones’ AR Promo At SXSW [Next Reality]
AR and VR are still very in vogue at this year’s SXSW. HBO, for example, smartly leveraged Snapchat’s various AR products to engage with attendees and create location-specific delights as part of its larger experiential activation for Game of Thrones. And although VR may not be breaking into the mass market any time soon, at least it is still a good tool for brands to show off their immersive content at a big cultural event like this.
Related: Sony debuts VR projection mapping technology at SXSW [VRScout]; Accenture Interactive showcases how AR and VR can connect marketers with consumers [AdWeek]; Oculus celebrates socially conscious VR films at SXSW [AdWeek]
The Rise of Wellness At South By Southwest [Skift]
As we wrote in our analysis of the growing wellness economy, wellness and self-care have emerged as a powerful new value driver for brands across categories. So it is no surprise that brands at SXSW have also embraced wellness as a major trend this year, designing experiences and offering services designed to help attendees relax and better navigate the hectic event. Starting as an affiliate to the fitness industry with yoga classes and meditation apps, the wellness economy soon spread like wildfire to categories like healthcare, fashion, beauty, food, and travel and hospitality, providing brands with ample opportunities to capitalize on this growing consumer trend.
Related: Michelob Ultra want to soothe SXSW attendees with a sunset meditation [AdWeek]; CBD Brands flood SXSW to educate event goers [Digiday]; Headspace provides SXSW attendees with a quiet place to unwind and meditate [AdWeek]
Other notable SXSW news:
- Foursquare tested a new “Hypertrending” feature during SXSW that some think are a bit “creepy” [The Verge]
- Starbucks Founder Howard Schultz shares 4 key insights about brand purpose at SXSW [AdWeek]
- At SXSW, Senator Elizabeth Warren defends her plan to break up tech giants [Boston Globe]
- With tech on the defensive, SXSW takes an introspective turn [Wired]
News Analysis
Philadelphia Becomes First US City To Ban ‘Cashless’ Stores [CNet]
This municipal legislation is based on the argument that “cashless” stores marginalize low-income shoppers who are underbanked and dependent on cash. While it has certain merits to it, outright banning all cashless stores seems more like a short-term fix rather than a long-term solution. Some fintech startups are now looking to develop digital banking solutions with easy access and lower entry barrier in order to serve the underbanked population, which is something that regulators should but mostly have yet to get behind. Payment methods are naturally evolving as technology advances, and banning cashless stores won’t stop the behavioral trend of people using less and less cash when there are more convenient payment solutions available.
Last year, Chicago tried to ban cashless institutions last year but did not succeed. In February, similar legislation passed to make cashless businesses illegal in New Jersey (although New Jersey’s governor has yet to sign a bill), and New York City politicians are pushing laws against cashless stores as well. In some cases, such regulatory move against cashless stores gets conflated with the growing backlash against automation. While it is true that automated retail tech also eliminates cash as a payment solution, it is not the case here as this city-wide ban actually excludes stores with membership models like Costco and Amazon Go.
Related: Mexico is talking to Amazon about a QR-based payment system [Reuters]; British bank NatWest is trialing the use of a new NFC payment card with a built-in fingerprint scanner [The Verge]; Tencent partners with Line to offer payment services via WeChat Pay to small businesses in Japan [Nikkei]
Verizon Will Soon Offer 5G In Chicago & Minneapolis For $10 Extra [The Verge]
As carrier start to roll out 5G networks as planned, it will be interesting to see how early adopters will react to carriers’ new offers. Although an additional $10 per month for customers already on an unlimited plan doesn’t sound like that much of a markup, it is important to know that Verizon customers will only be able to access the service via the Motorola Z3, on which Verizon says it has successfully tested 5G network, with a 5G Moto Mod.
As those devices are quite new and not widely adopted, this strict hardware requirement further limits adoption at launch. At the end of the day, 5G adoption depends on both the availability of network coverage and compatible handsets. And most smartphones won’t be 5G-ready until next year, if not later, considering the prolonged smartphone upgrade cycle.
Nevertheless, Verizon expects to offer true 5G services in 30-plus cities by year’s end, and has launched a campaign to mobilize citizens to lobby for 5G infrastructure with local officials. However, It has paused its 5G Home rollout, citing it needs to wait until actual 5G equipment is ready, further demonstrating the restraint hardware puts on 5G roll-out.
Related: Sprint’s 5G network launches in May in four U.S. markets [The Verge]; T-Mobile’s prepaid service will offer 5G in 2019 [Engadget]; 5G may significantly impact location privacy [Fast Company]; A roundup of all the 5G phones from Mobile World Congress 2019 [Engadget]
Stats To Know:
- 26.2% of U.S. adults now own a smart speaker, up from less than 20% in 2017, according to a new report by Voicebot and Voicify. The report found ownership rose 39.8% in 2018 to reach 66.4 million people, while the total number of smart speakers in use has now reached 133 million.
- According to data from Sensor Tower obtained by Variety, mobile users have spent $2.5 billion on the various Pokémon titles led by Pokémon GO, which has amassed roughly 550 million downloads since its blockbuster debut.
- Amazon is now the most-shopped apparel retailer, surpassing Walmart, according to Coresight Research. 65% of consumers bought clothing or footwear from Amazon in the past year. Apparel has become the biggest-selling category on Amazon, passing books, beauty and electronics.
