The Deep Focus 2015 Marketing Outlook Report

THE
2015 MARKETING OUTLOOK REPORT

FOREWORD..............................................................................................................................................................................04
OUTLOOK
1. The Rise and Risks of Brand Behavior .............................................................................................................................05
2. Connecting with the Human Brand ..................................................................................................................................07
3. Brands as Spirit Guides ..................................................................................................................................................08
4. Leveraging the Emotional Shorthand of the Emoji ............................................................................................................09
5. The Return of the Need for Anonymity and Young Consumer Behavior...............................................................................11
6. Lost In Translation: Better Serving Hispanics with Relevant Digital Content.........................................................................13
7. Mobile and the Digital Transformation of Retail..................................................................................................................15
8. Mobile Kills the Video Star ..............................................................................................................................................17
9. Media Doing and Media Planning ....................................................................................................................................18
10. The Internet of Things Is Finally Going Mainstream .........................................................................................................19
11. When It Comes to Wearables: It’s Not “If,” but “When”....................................................................................................21
12. Marketing and the Service as a Product Boom ...............................................................................................................22
13. Virtual Reality Beyond the Gimmick ..............................................................................................................................23
14. Investment in Digital and the Maturity and Standardization of Attribution..........................................................................25
CONTRIBUTORS................................................................................................................................................................ 27-28
ABOUT DEEP FOCUS...............................................................................................................................................................29
Contents
Copyright ©2015 by Deep Focus, Inc. All rights reserved. The third-party content, trademarks and service marks contained herein are the property and responsibility of their respective owners.

“ But we don’t worry.
We don’t fear.
We separate fad
from what endures.”

FOREWORD
Welcome to 2015,
Where Everything
Is New and Nothing Is.
Ken Kraemer, CCO
Here we go again. A new year filled with new memes, new
buzzwords, new of-the-moment apps and social platforms and
thousands of new 30-second spots. We will look to our trades –
new and old – and hope we’re the first among our peers to see the
article heralding (or quashing) the gimmick that we know will be the
topic of countless upcoming meetings and tweets.
But we don’t worry. We don’t fear. We separate fad from what
endures. Because we know marketing success has and always will
depend on two things: a brand’s strength in making an emotional
connection with a human being and its ability to reach the right
human being with whom to connect.
That’s it. Everything else is just a permutation, extension,
derivation, augmentation or even a distraction from those
two things.
So yes, social media is becoming digital marketing. Digital marketing
is becoming just marketing. And marketing is becoming just mobile.
Millennials have families and dominate the traditionally sought after
18 – 34 demographic. These trends alone can confound not only
campaigns and media plans, but the very structure of marketing
organizations and their relationships. But again, fundamentals
endure. Judicious investment and deployment of brand equity
– mostly through truly integrated brand behavior and content –
combined with a modern approach to reaching consumers on their
own terms will continue to offer brands the compelling results they
need.
This, Deep Focus’s third annual marketing outlook report, is
designed to explore the nature of those two critical elements in the
context of a seemingly never-ending deluge of marketing noise.
Can augmented reality truly deepen the meaning of my brand? Will
programmatic ad-buying replace media planning and will targeting
suffer? Do I still need to be always on?
This report doesn’t have all the answers, but it does offer perspec-
tive on what to look out for and the pitfalls to avoid. We invite you to
enjoy it. Critique it. Share it. Discuss it. Push back on it and on us. Try
it and respond to it. We work in an exciting business in exciting times
where change continues to be the norm.
Welcome to 2015, where everything is new and nothing is.
We’re glad you’re here.
4

THE OUTLOOK:
The Rise and Risks of
Brand Behavior
Ken Kraemer, CCO01.
THE BRIEF
Increased velocity of communications – driven largely by tech-
nology, networked communications like social media and, of
course, mobile devices – has created countless new trends, habits
and, indeed, marketing opportunities.
However, one such marketing opportunity could actually be
an evolution in marketing. And that’s the emergence of brand
behavior. Not brand anthropomorphization (necessarily), but
brand behavior: the things a brand does in the physical and digital
worlds that add further meaning and color to what the brand is
all about. In a way, consumers can get to know a brand better
than ever.
Like many evolutionary moments, this opportunity comes as a
result of the confluence of several developments. One factor is
the rapidly increasing velocity of communications. But alongside
a) the lower cost of entry to distributed communications platforms
(such as social media) and b) a critical mass of smartphone
penetration (over 56% in the United States, according to Google),
such velocity has created an expectation among consumers that
brands respond to both people and popular culture in ways that
transcend traditional marketing messaging.
These brand responses to their environment – simply put – collec-
tively make up a brand’s behavior.
The idea of brand behavior isn’t necessarily new. Experiential and
promotional marketing, product design and retail experiences all
drive a perceived behavior of a brand. But only in the last few years
has it been so easy for a brand to take action in response to their
environment in ways that can build key equities so efficiently.
So what does great brand behavior look like? Here are just a few of
the great examples out there:
• KLM is legendary for helping out passengers that have travel
troubles via Twitter – even if they aren’t flying KLM. They
even reportedly changed a flight based on one consumer’s
social media request.
• Purina celebrates life with pets and helps all people with
their pet care questions via Twitter – not just Purina fans,
followers or advocates.
• Arby’s bought a certain hat off of Pharrell for charity after
the social media world thought his Grammy wardrobe
resembled the brand’s iconic logo.
• Kit Kat worked with Android to name its next OS version.
• Lay’s gave people summer swag via Twitter just for making
sure they take the time to enjoy summer.
These interactions alone might look like stunts or nice marketing
programs – and in some cases they are exactly that. But they
go beyond one-way communications and each shows a case of
a brand acting or reacting to its world and the people in it, and
actually walking the walk of their brand equities rather than just
messaging them.
As people and the brands they love continue to interact, a behavior
– and eventually a personality – for these brands emerges. Whether
it is planned or not. Leading marketers will recognize this, define
their brand’s personality honestly, authentically and methodically,
and will use that definition to guide their brand’s behavior and
communications in everything they do. This definition also helps
translate brand and advertising “big ideas” into channels where
brands coexist with actual humans – like through social media.
True high-equity, high-affinity brands will master their brand’s
behavior and begin driving equity with it locally and globally.
THE PITFALL
Marketers must resist the urge to just start doing stuff in their
brand’s name. Don’t test and learn. Don’t just jump. Develop a
detailed personality definition to establish reasonable and action-
able spaces for the brand to act within. Then test and learn within
that framework.
6

THE OUTLOOK
Connecting with the
Human Brand
Christina Cooksey, Director of the Moment Studio
1. eMarketer, April 2014
02.
THE BRIEF
As the social space evolves, and branded presences and spends
increase, brands will need to adopt and exhibit human behaviors
to stay relevant. One such expression of this behavioral adaptation
is an evolution of the brand’s content strategy and visual aesthetic
to reflect a more humanistic approach.
As mobile continues to rise – the only medium to show a steady
increase in consumer consumption over the last five years
(2009-2014)1 – people are adapting to an innately more personal
platform for content consumption and conversation. Fueled by
paid distribution, the influx of branded content is an accepted,
and even expected, presence in the social space. But the volume
also poses a risk of perceived nuisance when the content does not
connect on a human level.
Consumers are increasingly seeking more unique ways to
connect, including customized experiences and helpful, utili-
ty-driven, one-on-one conversations with brands. Brands, then,
have the imminent challenge of evolving a presence in this intimate
social space that goes beyond product-focused content and
opportunistic moments and develops a meaningful, value-added,
sustained dialogue.
As social circles expand to global scale, social connectivity is
increasingly visual, driven by emotionally evocative imagery that
tells a story. And consumers are savvy and expectant in this
space – they demand that brands understand their social usage
patterns and formats if branded content is going to show up in the
ever-personal feed. Brands must evolve their visual expressions
with content that reflects the very personal spaces in which it is
viewed.
Consciously and subconsciously, consumers respond to content
and experiences that are high quality, hand-crafted or personalized.
In this way, traditional creative tools of storytelling, brand narrative
and ownable production techniques emerge as paramount to
brand communication. By evaluating the story the brand has to
tell, embracing the humanistic consumer creator movement and
focusing on resourceful and inventive creative formats, brands
have an opportunity to create and share something beautiful and
novel that will connect with the consumer on a human level.
THE PITFALL
Impersonal, repurposed or wholly brand-centric advertising will no
longer fly in the social space. Marketers must figure out how their
social content can extend beyond the product, and quickly. Each
brand deserves a solid social strategy and a thoughtful, ownable
creative framework.
A huge effort towards humanizing the brand is embracing the
target and finding meaningful ways to connect with them. Under-
standing the audience members’ personal social aesthetic and
finding intersections between brand standards and the consumer
creator’s own visual self-expression is an opportunity to create and
connect through a more humanistic approach. Once internalized,
these insights can be used to inspire unique and inventive creative
expressions for the brand.
In acting as “people talking to people” rather than “marketers
talking to consumers,” brands can engage in a two-way dialogue
that is innately real and emotional – one that evaluates efficacy
based on true consumer interest and reaction, including listening
and creative evolution based on real-time feedback. By focusing
on emotional stories and high-quality, inventive production, a
brand has a real opportunity to establish a unique and memorable
social presence.
7

THE OUTLOOK
Brands as Spirit Guides
Michelle Rowley, Assoc. Director of Brand Planning
*Cassandra Report Fall/Winter 2014
03.
THE BRIEF
No generation is more brand conscious than Millennials. They have
come of age developing and managing their own personal brands,
acting as their own PR agents and brand managers and vetting
their brand under the scrutiny of large social networks.
And no generation is a more voracious consumer of digital content
than Millennials. This digital consumption has made them open to
and welcoming of branded content – if it offers them something
of value.
Millennials have a different relationship with brands compared to
any generation before them. 72% of Millennials globally say that
it’s important brands help them become happier or better.* Brands
are expected to take a stand. Millennials want to support brands
that “get them,” and that they can use to express their personality
to others.
Brands have the opportunity to act as spirit guides in the Millen-
nial journey of self-expression. Brands can help them make
a statement about the person they are and help them craft the
person they want to be.
The pitfall is when brands make content for the sake of content.
When brands produce at the expense of understanding how to be
relevant in Millennials’ lives. In this new world Millennials are friends
with brands in exchange for something more than what the brand
sells, such as inspiration for an outfit. Association with a lifestyle.
How-tos. VIP access. A laugh. Brands must uphold their end of
the deal and give Millennials content and experiences that enrich
and reflect something unique about their lives.
THE PITFALL
To be true spirit guides brands need to push themselves not
just to create content, but to fuel culture. They expect brands to
provide full, immersive storytelling experiences. Stories that don’t
necessarily have beginnings, middles and ends – but stories that
you can jump into, evolve with and are ongoing. Stories that you
can pick up on by scrolling through Facebook, thumbing through
Instagram or having an adaptive web experience. Stories that take
you somewhere, while reflecting something about yourself.
8

THE OUTLOOK
Leveraging the Emotional
Shorthand of the Emoji
Todd Kreiger, Editorial Director
THE BRIEF
The continuing rise of the emoji is inescapable. Anecdotally
everyone you know from pre-teen to grandmother is using them.
The new Apple Watch? It’s got an animated emoji. You can use
emoji to search Bing.
New York magazine points out that there are more posts on Twitter
using Tears of Joy (age: 3 years old) than the tilde ~ (age:
3,000 years old).
Moreover, as emojis get more racially diverse with the global
emoji update coming in the summer of 2015, the temptation for
marketers will only increase.
The emoji’s dead-simple way to convey what you’re doing ,
how you’re feeling and what you’re thinking has taken
hold in our post-literate, go-go-go world. It’s ascendancy driven by
people’s desire to communicate coupled with the ready accessi-
bility of emoji on smartphones.
Why? The iconography allows both parties to use their imagina-
tions to express and interpret feelings, capturing emotion in ways
text or images can’t.
The Cassandra Report noted that 40% of Gen Y’s would rather
use images than text. “Social communication less tied to native
language and cultural cues, helps to forge international connec-
tions. Ys have spurred this trend to meet their global outlook.”
And in an upcoming report on digital usage, the Cassandra
Report found that 86% of trendsetters ages 14–34 say emoji/
digital stickers make communicating more fun – 73% of them
would like to see brands come up with new and creative
emoji/digital stickers.
That makes emoji a tempting way for marketers to connect with
today’s international youth. Emoji can be used to communicate
globally without necessarily knowing a single word of one another’s
spoken or written language.
So there’s the opportunity. Communicate with a young global
audience regardless of language in a fashion they find compelling,
on the device that is with them at all times.
THE PITFALL
The rise of the emoji has a few immediate outputs and guide-rails
for the marketer. One is that youth like to communicate feeling
both visually and instantaneously. This can be factored into all
communications whether using emoji or not.
Secondarily, by definition part of the charm of emoji is how
open they are to interpretation. The ongoing debate of whether
this is a high five or praying hands is one example
among many. Or put differently, sometimes an is just an .
This openness suggests you have to be the right kind of youth
brand. When the White House used emoji in their report on Millen-
nials many thought they were trying too hard.
The bottom line is, you have to be clear about not just who you
are as a brand but know what you are trying to say. As you are
trafficking in emotions you want to be sure not to over-reach. After
all you want to be sure the end result is more than .
04.
10

THE OUTLOOK
The Return of the Need for Anonymity
and Young Consumer Behavior
Jamie Gutfreund, CMO
*Cassandra Report Fall/Winer 2014
05.
THE BRIEF
In a post-Snowden era where massive privacy breaches dominate
the media and every day another new “temporary messaging or
ephemeral app” seems to launch, young consumers are becoming
equally concerned with achieving anonymity as a way to experi-
ence true freedom of expression. In a recent Cassandra Report
study, 55% of 14–34 year olds reported they would rather be
anonymous than vocal online. Having grown up in a culture that
equated personal status with likes, followers and the careful
curation of “brand me,” the tide is shifting toward platforms that
release younger consumers from the responsibility of managing
a permanent identity and allow them to do or say things they
normally would not consider. While some controversial behaviors
are naturally attached to anonymity, it also offers a new sense of
freedom and a new channel for creative sharing, even if it only
applies to just one small aspect of consumers’ digital lives.
In 2015, consumers will seek opportunities to fully express
themselves in places where their “voice” no longer equals their
actual identity. Consumers will value and admire tools, apps
and platforms that enable them to show truly authentic feelings,
behaviors and ideas. They will strive for the type of intimacy that
results from honest interactions, not carefully curated public
personas. The strength of Snapchat and other ephemeral apps
will continue to grow with 26% of 14–34 year olds saying they have
“tried and liked” this category and 32% noting they are interested
in trying this category in the near future. Even Facebook recently
adapted their long-standing identity policy by creating “Rooms”
where users are allowed to create different identities for different
topics. “It doesn’t matter where you live, what you look like or how
old you are – all of us are the same size and shape online.”*
Moving away from “permanent responsibility” 42% of this younger
audience wants the “freedom to be myself” and 34% want the
freedom to share things that “I wouldn’t want most people to
see.” As a result, these moments of digital freedom will enable
consumers to move from observation to participation without fear
of reprisals or long-term ramifications.
For brands seeking to engage this audience, it’s imperative
to evaluate new platforms and apps within a proper context.
This move toward anonymity is as much about exploring one’s
creativity, opinions and identity, as it is the negative behaviors
sometimes associated with these platforms.
THE PITFALL
When exploring new channels, recognize that while they may be
popular, not all platforms work for all brands. Having a presence
without understanding the individual ethos of each site or app
can make a brand seem out of synch with the community. The
increased awareness of privacy will also provide greater challenges
for brands seeking to obtain personal information and data from
consumers. Brands will need to provide more value in exchange
for the valuable personal information they desire.
Brands can provide safe havens for their brand fans to engage
with one another, share their passions and express their opinions.
This shift has implications for the physical world as well. Young
consumers welcome the opportunity to explore new products and
philosophies and support the brands that connect them to new
ideas within a safe environment.
12

THE OUTLOOK
Lost In Translation:
Better Serving Hispanics
With Relevant Digital Content
David Santana, Art Director
1: Nielsen: Appetite for Convenience, How Millennials Are Changing the
Hispanic Shopping Basket
2: emarketers.com: US Hispanics’ Mobile Use Is Increasingly Smartphones
3: https://ahaa.org/default.asp?contentID=161
4: emarketers.com: US Tablet Users, by Race/Ethnicity, 2013–2018
5: emarketers.com: Ipsos Public Affairs Survey As Cited in Company Blog
6: emarketers.com: “Online Sharing Behaviors Of Hispanic Consumers”
7: Cassandra Report Spring/Summer 2014
06.
THE BRIEF
In 2015, one key factor for brands and services looking to grow
their presence in the U.S. will be their ability to capture the hearts
and minds of the Hispanic market. With 21%1
of U.S. Millennials
identifying as Hispanic, this new generation of Hispannials, as
they’ve been dubbed, is digitally ahead of the curve and has a
much higher comfort level on mobile than ever before. A great
opportunity to build a loyal and social-sharing-minded audience
awaits those brands that make the effort to understand this
demographic’s opinions and passions.
As cultural trends shift, so too do the devices and means of
getting a message broadcast in the most effective channels.
Although it was once assumed that the Hispanic consumer could
be found gathered around the family television set or checking
in with distant family members at the local Internet café, this has
not been the case for some time and will certainly not hold true in
2015. We will continue to see the Hispanic consumer’s abandon-
ment of desktops and their quick transition to smartphones and
tablets as their primary – and sometimes only – way to connect
socially, share content, experience entertainment and purchase
goods. All this will happen as other ethnicities are reaching
the mobile device saturation point. Hispanics’ use of mobile is
predicted to continue growing through 2018. Currently, 80%2
of
the 52 million3
Hispanics in the U.S. are smartphone-ready, and
of the 147 million people in the U.S. with tablets, nearly 19%4
of
them (over 28 million) are Hispanic. These two categories account
for 70.9% of Hispanics who are on the Internet in the U.S.
The need to step up the content game in 2015 will lead some
brands to simply translate preexisting creative and toss it on
Facebook. Such a mindset will not move the needle with this
fiercely independent group that is tired of being subjected to
stereotypes and hand-me-down content. To create anything
relatable and shareable, we’ll need to dig deeper and deliver
content that piques Hispanic’s true interest, in English or Spanish5
,
as they search for an assortment of themes through which to be
entertained and informed. This will include everything from arts
and entertainment to politics and government6
, from the explora-
tion of ethnic diversity and LGBT themes to the characterizations
of modern antiheroes.
If that balance can be met, we will see the unparalleled devouring
of video content by Hispanic consumers, who are currently 11%7
more likely to binge watch and 9%8
more likely to watch a web
series on platforms such as YouTube. This consumption includes
user-generated pieces like fan fiction, recipes and citizen jour-
nalism.9
Video has become the heavyweight contender and might
very possibly become the champion of the Hispanic content fight
in 2015.
Striking that balance between content, message and culture in a
way that truly resonates with the Hispanic consumer will not be
an easy task for all. With Hispanics estimated this year at sharing
content 5x10
more that non-Hispanics on social networks like
Facebook and Twitter and expected to outpace all ethnic demo-
graphics on those channels through 2018, those who miss this
opportunity are likely to lose out on more than just a strong fan
base. Hispanics are already 1.3x11
likelier than non-Hispanics to
follow the path to purchase from shared content and this trend
is only expected to continue growing. If content is truly great and
actually sharable for this group, it can lead to both intense brand
loyalty and great sales.
THE PITFALL
2015 will be the year brands must dig deeper to understand where
and what the Hispanic – and specifically the Hispanic Millennial
– consumer craves. Those who lean on stereotypes and trans-
lated material will be missing out on a huge opportunity to create
meaningful relationships that they can learn from, help broaden a
brand’s regional and global appeal, and create consumer growth.
Taco Tuesday and Cinco De Mayo need not apply.
14

07.
THE BRIEF
There used to be a clear divide between ecommerce and retail
channels, which created challenges for businesses due to fear of
cannibalization. The landscape has now evolved to a point that
it’s clearly recognized that online and offline retail actually comple-
ment each other, building revenue and deepening relationships
with consumers.
The next frontier to master in the effort to truly digitize retail will
be mobile, and it’s quickly becoming a top priority for brands and
retailers alike. It’s the lynchpin to truly connect online and offline
retail and we’re finally seeing strategies leveraging mobile in the
areas of payment, in-store experience and becoming a core
channel for CRM.
THE OUTLOOK
Mobile and the
Digital
Transformation of
Retail
Mark Fielding, Director of Strategy

“We’re at the
beginning of a
retail revolution.
In the future,
there won’t be any
difference between
physical stores and
e-commerce.”
- Adam Silverman, Forrester Research
The concept of mobile payment has been around for a while –
Google Wallet launched in 2011 though adoption was slow to
start for both consumers and merchants. We’re now seeing this
scale significantly. According to eMarketer, in 2015, it’s predicted
that mobile payment transactions (at retail point of purchase)
will amount to $8.95 billion (more than double from 2014). The
launch of Apply Pay is likely to be a significant factor in catapulting
widespread adoption even further. Over 1 million downloads of
the Apple Pay enabling software update happened in just the first
three days after launch. There is evidence consumers are using it
too: in a recent New York Times article, it was reported that during
the first three weeks after its release, Apple Pay accounted for
50% of all ‘tap to pay’ transactions at McDonalds, over 150,000
transactions at Whole Foods, and was responsible for doubling
mobile payments at Walgreens.
The digital transformation of retail via mobile payment will continue
to expand with new products such as Google Shopping Express,
connecting mobile to new service models like same-day delivery.
These not only increase the value exchange for consumers by
pushing ecommerce norms, but can incorporate ‘local’ retailers
and disrupt established ecommerce models like Amazon’s.
Mobile will continue to create better in-store experiences,
allowing retailers the opportunity to reach and engage shoppers
with relevant, contextual information and offers. Technology
such as iBeacons will continue to expand the mobile-payment
footprint, offering better solutions for shoppers such as helping
them navigate stores and search for products and offers.
But the real opportunity for mobile is about creating much richer,
more personal experiences to both connect with consumers and
leverage showrooming. One of the most interesting categories
succeeding at this is Luxury Goods. While late to the game to
digital in general, key players are more than making up for this by
focusing on how mobile can deliver retail experiences which are
more personal and more valuable. For a long time, Burberry has
been recognized as a pioneer in this space, and is making huge
strides in connecting online and offline shopping experiences
through the use of mobile, both in and out of store. For example,
Burberry is experimenting with microchips fitting into the clothing,
allowing interaction with digital displays in fitting rooms. This
creates value for consumers by displaying photos and product
information that can then be shared through social.
In 2015 we will see mobile driving digital transformation across
multiple categories. Grocery is likely to be the next major category
to scale its mobile efforts. We will see big-box retailers expand
investment and experimentation with mobile as increased compe-
tition from big players like Amazon and Fresh Direct intensifies.
Additional pressure will come from startups like Instacart and
services like Google Express where mobile is front and center of
their business model.
New business models and richer, more personalized in-store
experiences are transforming the retail industry and will be driven
largely by mobile for the foreseeable future.
THE PITFALL
Brands should not just focus on the obvious opportunities of
pushing offers and coupons. Think about other, deeper types of
value can you create for consumers in-store. For example, custom
or personalized content, connecting to in-store digital displays and
social media. Experiences like these will provide mobile a much
bigger role in the growing trend of proximity marketing.
Further, brands cannot underestimate the impact of showrooming
where consumers comparison shop among multiple brands and
retailers all from their phone while inside a brick-and-mortar store
to experience the merchandise in person. Smart retailers will use
this now commonplace behavior to their advantage by providing
superior mobile-facing customer services and sales support.
THE OUTLOOK
Mobile and the Digital Transformation of Retail (cont.)
16

THE OUTLOOK
Mobile Kills
the Video Star
Todd Krieger, Editorial Director08.
THE BRIEF
The pace of change in video is accelerating to the point of making
the landscape unrecognizable. Amazon just received their first
Emmy nominations for ‘Transparent,’ their breakthrough show
available exclusively via Amazon Prime.
HBO and CBS are cutting the cord and allowing people to stream
their content without the requirement of a cable subscription.
Bloomberg is pouring dollars into digital video. BuzzFeed and Vox
have both raised significant capital and have been clear that this
capital going into video. Facebook bought LiveRail and Yahoo!
purchased AdRoll. Let the video targeting begin.
Round one of YouTube consolidation may be coming to a close
with major players from Disney to Dreamworks to AT&T each
buying up Multi-Channel Networks (MCNs) but that, too, is just
the beginning.
Industry leaders like Jason Kilar with his company Vessel and
Danny Zappin (founder of Maker) are looking to establish digital
video companies off of YouTube. And Hulu’s former head of
product just went to ShowYou, a lead candidate among others
such as TubiTV and PlutoTV seeking to deliver quality video to the
masses via OTT and mobile apps.
Speaking of mobile, according to the latest report from streaming
giant Ooyala, mobile views are up 200% year over year from 2013,
and 400% from 2012. And while they had originally forecast that
mobile would be responsible for more than half of all views in 2016,
they have since revised that to 3rd quarter of 2015.
So while you may have been waiting to get together your mobile
video strategy, there’s no more time to wait. Mobile video is already
here.
THE PITFALL
Video isn’t easy and even lo-fi can be expensive. Key factors
to consider as you strategize and plan are that your video most
likely won’t be seen on a desktop, and it most likely will not play
with sound the first two to three times it’s viewed. Even so, the
biggest risk is not exploring.
Mobile video’s ubiquity is rapidly moving from around the corner to
the here and now. While the specter of overspending and BudTV
still casts a shadow, if you haven’t already, now’s the time to test
the waters and learn what works.
17

THE OUTLOOK
Media Doing and
Media Planning
Jamie Bryan, Executive Director, Client Services
*Forbes: http://www.forbes.com/sites/roberthof/2014/04/10/
online-ad-revenues-blow-past-broadcast-tv-thanks-to-mobile-and-video/
09.
THE BRIEF
There’s a phrase that has haunted marketers ever since it was
uttered over a century ago: “Half the money I spend on advertising
is wasted; the trouble is I don’t know which half.”
In 2015, the smartest marketers will aggressively challenge this
assertion. Indeed, they will actually want to waste some of their
money on marketing, quickly and at low cost, in order to avoid
wasting as much as half of it.
This willingness – desire, even – to fail was, until recently, impos-
sible to imagine. In the past, when there were only a handful of
media vehicles for marketers to consider and invest in (namely TV,
radio and print), the importance of media planning was unques-
tionable. Planning was necessary because the costs of getting
your marketing investments wrong were huge. Planning made
sense – and was easier – because marketers knew that tomorrow
would be the same as today. They also had to accept that they
wouldn’t know what worked and didn’t work until it was several
months too late (if at all).
Today, by contrast, the landscape has changed significantly, and
there are arguably many more benefits than costs for marketers
who are bold enough to flip the traditional approach by executing
first and planning second. Indeed, by using media that they already
own or earn, marketers can test and learn their way to the best
possible marketing plan without even spending a single cent to
buy media.
As marketers rethink this very existential question of how to
balance thinking and doing – or, put another way, how to balance
marketing planning and execution – he role of media planning
has to evolve. In the past twelve months, spending in the upfront
market in the U.S. fell 6% to $18B* while, in contrast, 2014 online
ad revenues passed those of broadcast TV for the first time. As new
media have overtaken old, channels and content have become
overabundant and it’s become increasingly difficult for marketers
to cut through the clutter and engage people at scale. At the same
time, innovations like programmatic buying have taken much of
the time and guesswork out of media planning and investment.
All of these factors mean that, as they shift the planning/execution
balance, marketers are also thinking more about the creative and
less about the media. They rightly expect that great creative and
content will be designed to work in all the right media. (While this
might seem obvious now, it bears remembering that, not so long
ago, it was the other way around.)
More than ever before, marketers will demand accountability and
results to prove that their investments – both in content and in
media – are driving business returns rather than going to waste. In
2015, then, marketers who are ultimately able to show that none of
the money they spend is wasted are the ones who will win.
THE PITFALL
Media planning still plays a crucial role, just not necessarily the role
it has played in the past. Instead, the best marketing planning will
work hand-in-hand with marketing doing by acknowledging what
can’t be anticipated. The best marketing plans will be dynamic,
built to adapt and flex as they are executed.
18

THE OUTLOOK
The Internet of Things Is Finally
Going Mainstream
Greg Ratner, Director of Technology10.
THE BRIEF
The Internet of Things (IoT), or what’s otherwise known as “the age
where just about everything around us becomes a smart device,”
is upon us. The space has been a hot topic for a number of years
among a niche market of enthusiasts, but general consumers
didn’t see much impact until Nest thermostat began to bring IoT
mainstream in 2011. What iPhone did for the smartphone industry,
Nest has done for the connected home, kicking off research and
investment into smart devices from startups and established
corporations alike. As a result, in the coming year this sector will
likely explode.
Traditional technology heavy-hitters already made significant
investments in the category, including a headliner from Google
buying Nest for $3.2B earlier this year. Intel, Cisco and Samsung
also made major acquisitions and investments of their own. And
the landscape is changing. Previously, IoT manufacturers created
products for the enterprise and the affluent markets. Now, with big,
global household brands like Philips, GE and Siemens entering
the space, IoT is coming to the masses. A connected light bulb
will run you $15–25, making it available and affordable to some.
37% of consumers say that they are interested in connected home
technologies, according to the latest Cassandra Report, which
has already resulted in smart-home devices expanding into a
wide number of categories including light switches, power outlets,
garage door openers, security systems and many others. These
indicators are a sign that IoT will soon become an integral part of
consumers’ daily lives.
IoT is not just a fad anymore. In certain verticals a refusal to
incorporate smart technologies into existing products will likely
result in major corporations giving up sizable portions of their
market share. At the same time, the brands that capitalize on IoT
will increase adoption and drive up brand loyalty. By creating a
digital ecosystem around their offline products and adding real
value, these brands will now have a chance at getting onto the
users’ coveted home screen real estate of their phones. In turn,
this will allow brands to reach users more often by providing hyper
-targeted, data-driven recommendations and keeping their brands
top of mind.
THE PITFALL
Not everything around us deserves to be controlled remotely
from our phone. With people’s lives getting progressively busier,
consumers look for convenience not for gimmicks. Marketers need
to keep this in mind as they evaluate IoT as an area for investment.
Those who choose IoT should not look to it as an opportunity for
traditional display ads. Making authentic connections with the
target audience will be more important than ever. Partnerships
through data sharing can play a major role in improving targeting
of offline efforts. Users will not be happy watching a commercial in
order to turn off their light bulb.
20

THE OUTLOOK
When It Comes to Wearables:
It’s Not “If,” but “When”
Michelle Rowley, Assoc. Director of Brand Planning11.
THE BRIEF
There was a lot of hype around wearable technology going main-
stream in 2014. Samsung, Motorola and many others released
advanced smartwatches. Activity tracking got less geeky when
Tory Burch partnered with Fitbit for a fashion-first wristband.
Despite all this, wearable technology remains a niche market.
2015 will be the tipping point in adoption of wearable technology.
Apple Watch, scheduled for release early in the year, will likely
have the same effect on the wearable technology market that
the iPhone had on the smartphone market when it was released.
There were smartphones before the iPhone (Treo, anyone?), but
they were difficult to use and largely limited to early adopters. A
few years later, can anyone imagine not having a smartphone?
By presenting a polished set of core features, Apple Watch will
help define the wearables category and create a platform that
both Apple and their competitors will utilize to bring wearable
technology to the masses.
Apple Watch and the other wearables it will inspire will give us a
radically different UX and therefore a radically different emotional
experience with the technology. These wearables will launch new
forms of communication, creating a new sense of intimacy and
awareness about ourselves and the world around us. We will have
seamless connections to the people and information we care
most about.
THE PITFALL
Brands can take Know Thy Self to the next level – Share Thy Self –
by having direct access to the most personal moments in people’s
lives and making brand contributions relevant and compelling for
consumers to share. Wearables are the most intimate personal
devices most consumers will ever have encountered. Look for real
ways to add value without encroaching too heavily on this new
social opportunity.
21

THE OUTLOOK
Marketing and the Service as a
Product Boom
Greg Ratner, Director of Technology
1. http://www.drumhill.com/
the-uber-of-x-on-demand-mobile-services-hit-funding-high-in-2014/
2. http://www.businessinsider.com/the-on-demand-economy-2014-7
3. http://www.slideshare.net/schlaf/on-demand-everything
12.
THE BRIEF
On-demand mobile service (ODMS) companies, or colloquially
“Uber for X,” saw significant investment this year thanks to over
$1.37B in capital poured into them in 2014 (excluding Uber’s
own $1.2B round).1
As a result, more of these services will be
entering the mainstream market in 2015. Commerce giants like
Google, Amazon and eBay already jumped on this trend with their
on-demand grocery and shopping delivery products, adding heat
to the competition. Also, the on-demand space has now moved far
beyond transportation into categories such as food and beverage,
home services, health and beauty, automotive, hospitality and
many others.
The trend represents an important shift in consumer behavior
where a growing segment of users is happy to pay a premium in
exchange for the time and convenience of outsourcing their daily
chores with a few taps on their mobile phones. This is evident
from the staggering estimated $2B in monthly revenues that are
generated by Uber and $1.6B in annual revenues from GrubHub
fueling much of the excitement in the space.2
This trend is paired
with vast U.S. smartphone penetration, faster mobile Internet, and
ample availability of workforce seeking a freelance income, spelling
out an exciting future for ODMS in 2015.3
Some of these on-demand services will create new and exciting
distribution channels, particularly for many CPG brands that lack
the expertise or infrastructure required for building out in-house
delivery services.
THE PITFALL
Despite convenience for the user, on-demand services will present
a new set of challenges to brands. In addition to existing retailers,
there is now a whole new category of distributors with a new set of
rules and restrictions. Brands will require additional staff to manage
and support the new channels. Also, since purchase through these
services takes place on mobile devices, where screen real estate
is a scarce commodity, traditional digital marketing techniques
will not work anymore. Promotional areas will likely be very limited
and disguised as native content, such as single 3-slot carousels.
This will place additional emphasis on packaging and product
photography as well as ratings and reviews syndicated from other
brand properties. As a result, marketers will have to come up with
new ways to contact and engage potential buyers and build brand
loyalty outside of the shopping experience.
22

THE OUTLOOK
Virtual Reality
Beyond the Gimmick
Greg Ratner, Director of Technology13.
THE BRIEF
Despite the hype surrounding Virtual Reality (VR), the industry
has thus far promised a lot more than it has delivered. Headlines
touting massive acquisitions of companies like Oculus Rift, that
was bought by Facebook for $2B in July, resulted in little visible
change to the market, with VR remaining a niche segment within
the gamer community in 2014.
This is likely to change in the next year, with stereoscopic cameras
(ones able to record video simultaneously in all directions) hitting
the market at a price point and form factor similar to a GoPro. This
means that immersive video production technology, a luxury only
available to professional studios at a premium price point, will be
available to the masses for a one-time investment of $300–500
with a minimal learning curve. Any teenager doing sports will soon
have an ability to let their friends relive their experiences without
getting off the couch.
Experiencing VR content will soon be cheaper and easier as well.
Previously, this required expensive hardware with a bulky headset
strapped to your head. But already a number of companies have
plans to release phone cases that turn mobile phones into full-
fledged VR headsets. These lightweight plastic boxes with two
special lenses, and a slot for your phone paired with a companion
app, will allow users to experience VR on the go and will cost
under $50.
As a result of these two innovations, VR video content, both
amateur and professional, will likely begin to flood the market in
the next year. When it does, VR will carve out a new section of
social networks like YouTube or perhaps even give birth to new
ones altogether. This new medium opens up a big opportunity for
marketers and enable users to experience their brands in a new
and more immersive way. Already this year, we saw HBO, RedBull
and Mountain Dew tapping VR as a tactic. At the same time, main-
stream entertainment giants will also likely enter the space, with
big name VR games and movie titles, boosting general adoption
even further.
THE PITFALL
Regardless of channel, content marketing requires quality,
relevancy and authenticity in order to resonate with consumers –
as well as investments in storytelling and creative and production
talent. A new medium or capability will not be enough on its own.
Therefore, stereoscopic and VR video will not be appropriate for
every brand and occasion and will need to be looked at with a
critical eye. Similarly, it’s unlikely to become a channel for traditional
advertising formats. When it comes to native ads in this medium,
marketers need to tread lightly or they will find themselves at risk of
throwing away their budgets.
24

THE OUTLOOK
Investment in Digital and the
Maturity and Standardization
of Attribution
Mark Fielding, Director of Strategy14.
THE BRIEF
We are at a point where increased investment in digital is putting
pressure on marketers to prove the ROI of digital more than ever
before. This means we need to evaluate the tools and metrics
being used and identify how we can make attribution more acces-
sible and realistic for marketers, allowing them to prove what
impact digital is really having on their business.
As analytical tools and technology continue to advance, invest-
ment in digital is also growing at a rapid rate. Magna Global, one
of the worlds’ largest media buyers, forecasts that global ad
revenue will grow 4.8% to $536B. Digital media is expected to
reach 30% market share in 2015 and is on track to surpass TV in
market share by 2017.
So it’s no real surprise that attributing the business impact of
digital is critical. What is surprising is that marketers seem to be
more and more confused about what digital is really doing for their
brand. A study from Contently released earlier this year shows that
while 93% of marketers are attempting to measure the success of
their digital content, only 9% of them are confident that their key
content metrics are effective in measuring business results.
Where does this lack of confidence come from then? Put simply,
in an attempt to fill a glaring need for success measurement,
publishers and analysts have mistakenly put forth a variety of
one-size-fits-all solutions. This usually becomes an aggregate
proxy (like for engagement, for example) and can increase the risk
of mis-attribution. It also doesn’t tell us the full story.
A huge disparity is surfacing between the metrics marketers are
measuring and the stories those metrics actually tell. Recent
research by ChartBeat (a web analytics company) found that there
is no correlation between sharing a piece of content and actually
reading it. Yet according to the Contently study, 65% of marketers
are using social sharing to measure the success of their content.
It’s obviously important to understand what are the right metrics
and what they are telling us, but we also need to be able to
understand some bigger questions: Is consumer brand percep-
tion shifting because of the content published? How is content
interaction impacting the purchase decision journey? And how
can you really determine if content engagement is positive or not?
To answer these types of questions, and as marketers begin
to focus on more macro goals for digital and social, we will see
increased investment in resources and research tools to better
understand the impact of digital on business objectives. This will
require evaluating what metrics to use, understanding the rela-
tionship between metrics, and exploring new tools to standardize
attribution.
Only then will we start to see increased confidence in the ability of
digital to really shift the needle and attribute the business impact
it deserves.
THE PITFALL
Don’t assume that the metrics you’re measuring are telling you
the full story. Invest time and money with technology and analytics
partners, and explore new methodologies and ideas to better
understand which metrics are important, and what story they are
telling you.
26

Contributors
Ken Kraemer
CHIEF CREATIVE OFFICER & HEAD OF PRODUCT
Ken Kraemer is the Chief Creative Officer & Head of Product at
Deep Focus. He is responsible for setting the agency’s creative
vision and product mix, and continually building capabilities that
deliver unique brand opportunities and rewarding client experiences.
Twitter: @kk4i
Frank Pedersen
MANAGING DIRECTOR OF ENGINE USA
Frank has over 15 years of executive, business development and digital
marketing experience from independent agency leadership roles in the
USA, UK and Denmark, and is currently Managing Director of Engine
USA. Since 2012, Frank has served as an executive advisor and trusted
partner to global brands, marketing agencies, technology start-ups and
non-profit organizations, helping them to identify growth opportunities
and capitalize on the emergence of new digital marketing platforms.
Twitter: @fspedersen
Jamie Bryan
EXECUTIVE DIRECTOR OF CLIENT SERVICES
Jamie is Executive Director, Client Services at Deep Focus, responsible
for ensuring the continued success of all of the agency’s work. Prior to
joining Deep Focus, Jamie worked at Ogilvy and then LBi, partnering
with iconic companies including IBM and Johnson & Johnson to drive
brand and business success.
Jamie Gutfreund
CMO
As CMO for Deep Focus, Jamie Gutfreund is recognized interna-
tionally as a dynamic and motivating catalyst. Through Jamie’s
understanding of consumer behavior, she helps guide CMOs and
CEOs to develop innovative products, breakthrough marketing
and digital strategies, and forward-thinking HR programs.
Gutfreund has been a frequent public speaker and also serves as a
bridge to Silicon Valley, helping innovative technology companies
and entrepreneurs form strategic partnerships with brands.
Twitter: @jamiecentral
Mark Fielding
DIRECTOR OF STRATEGY
Mark is the Director of Strategy at Deep Focus. He is responsible for
providing strategic leadership and helping clients leverage technology
to solve business problems and build brands. Originally from the UK,
he has over 15 years experience in digital and integrated marketing.
Twitter: @fielding09
Christina Cooksey
DIRECTOR OF THE MOMENT STUDIO
Christina Cooksey is Director of The Moment Studio, our creative
newsroom for hire. She runs the production and operations of
the content publishing studio, implementing integrated creative
and production techniques to deliver social media content.
Twitter: @cookseycc
27

Greg Ratner
DIRECTOR OF TECHNOLOGY
Greg is Director of Technology at Deep Focus, where he leads the
team responsible for website and mobile development, and client
innovation. He is a technologist and an entrepreneur with over
15 years of experience helping brands, startups and ecommerce
companies develop digital products to best reach their users.
Twitter: @gregratner
Michelle Rowley
ASSOCIATE DIRECTOR OF BRAND PLANNING
Michelle is an Associate Director of Brand Planning at Deep Focus.
Her planning background encompasses research, brand strategy and
product innovation. She has worked on a range of brands. She has
traveledtheworldaskingpeoplehowtheyfeelabouttheirlifeandhowthey
interact with brands, and she is always excited by what they have to say.
David Santana
ART DIRECTOR
Santana is an Art Director at Deep Focus and a graduate of the School
of Visual Arts. David specializes in design, illustration and marketing for
both print and digital media. Previous work includes Creative Design
at Rockstar Games, Sony Music, Matador Records, Hasbro and JWT.
Todd Krieger
EDITORIAL DIRECTOR
Todd Krieger is Editorial Director at Deep Focus where he shapes the
voice, strategy and creation of content across Intel’s Social Channels.
He has 15+ years experience creating content, launching new products
and advising the world’s leading media and technology brands.
Twitter: @tkrieg
Valerie Townsend
TRENDS ANALYST, MOMENT STUDIO
Valerie is the Trends Analyst for the Moment Studio. She is responsible
for keeping the creative and communications team informed of current
eventsandtrendsinthedailynewsroommorningmeeting.Herpastexpe-
rience includes quantitative and qualitative trend analysis and research
at several Fortune 500 companies such as U.S. Bank and Nordstrom.
Twitter: @valerietown
Illustration & Design
David Santana | Instagram: iamdavidsantana
Julie Salzman | Instagram: joodlesjs
Editorial Team
Elspeth Rountree
Jake Kornegay
Contributors
28

A global, full-service agency network, Deep Focus has offices
in the U.S., China and the UK. We work with some of the
world’s most innovative brands to help them resonate with
consumers that increasingly live beyond the reach of advertising.
We were born digital and grew up social, but we believe the
right media mix is the one that makes the biggest impact the
most efficiently. We apply modern solutions to modern chal-
lenges without regard for the typical agency “status quo.” We’re
pragmatic provocateurs and strategic partners. And we’re
unrelenting in our use of quantitative and qualitative intelligence
to understand what will work — and then we prove that it did.
The result is brand-building work that people want to share,
because it says something about who they are.
For nearly two decades, the Cassandra Report has been the leading
ongoing study of youth trends and behaviors in the U.S. Each report
goes beyond pure data to feature thematic deep-dives (macro
trends), strategic implications, and critical statistics that help brands
breed new thinking, foster innovation, and drive young consumer
engagement.
Report findings are based on proprietary qualitative and quantitative
research of both mainstream and trendsetting consumers between
the ages of 14 and 34.
The result is a timely and robust narrative, beautifully designed, that
delivers true insight into the minds of young consumers and the impli-
cations for the brands and institutions that seek to engage them.
About Deep Focus
Deep Focus is a modern global marketing agency.
Built from the ground up to be
Creatively Driven; Digitally Native;
Social at the Core; Intelligently Integrated.
WWW.CASSANDRA.CO/REPORT/
WWW.DEEPFOCUS.NET
@DEEPFOCUS
WEAREDEEPFOCUS
DEEPFOCUS
INFO@DEEPFOCUS.NET
29

@DEEPFOCUS | WEAREDEEPFOCUS | DEEPFOCUS | INFO@DEEPFOCUS.NET
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The Deep Focus 2015 Marketing Outlook Report

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The Deep Focus 2015 Marketing Outlook Report