Leaning Forward into the Future Because the future

Leaning Forward into the Future § Because the future never waits, virtually any of the consumer products (and many services) you need can be delivered to your front door, and within 48 hours. § Soon, you may find it more practical and cost-effective not to own a personal vehicle. You be able to work less and earn the same wages because AI and robotics will relieve you of the mundane, repetitive tasks – on the job and at home. § Media Group Online’s annual Trends Special Report presents a few of the trends that are apt to have the greatest effect on your profession and the business of your prospect and clients.

Consumers Control the Future § Consumers are ever more in charge, so it’s only the businesses that are prepared to serve and connect with future consumers that will be the winners. § Consumers are about to gain greater freedom and be more mobile. They will be open to more connectivity to benefit their lives and careers. Consumers will expect brands to manufacture, for example, apparel that fits their unique shape. § Technology will make most everything accessible immediately, creating more time for life. The amount of knowledge will increase and its accessibility will be instant. Consumers will learn how to balance their “real” and digital worlds.

The Retail Evolution Is Unavoidable § Although to some, it may seem like a “retail apocalypse, ” retail is evolving in fundamental ways. It’s the retailers who can evolve individually that will survive and thrive into the future. § Shopping becomes more of an experience – Consumers are tired of “shopping, ” they want an “experience, ” an advantage brick-and-mortar retailers have over their online-only counterparts. § Brick-and-mortar stores and digital stores continue to integrate – More retailers will combine their physical and digital presences, so they become virtually indistinguishable to consumers.

Marketing and Advertising Must Adjust § Many brands and retailers are transforming themselves from a “brand” to an “identity” company. More of them will follow the Amazon model in which they will know, or “identify, ” their customers as individuals. § Although the digital age was supposed to improve audience measurement, 49% of brands and 45% of agencies say viewability and measurement is their #1 concern for 2018. § In addition, research from Media. Radar found that less programmatic ad buying occurred during the first half of 2017, and brands were returning to the tried-and-true dependability of direct media buys.

Traditional Media Can Celebrate § The 2018 mid-term elections and continued improvement in employment and consumer shopping are likely to generate considerable ad spending during 2018. § In fact, BIA/Kelsey’s US Local Advertising Forecast 2018 states that traditional media’s share will be 64. 7%, with the remaining 35. 3% targeted for online and digital media channels. § Direct mail will capture the largest share of 2018 local advertising dollars, or 25. 4%; followed by local TV, 13. 8%; mobile, 12. 6%; radio, 10. 4%; and newspaper, 10. 2%.

A Particularly Good Year for Local TV Stations § According to additional BIA/Kelsey analysis, local TV stations that upgrade to the ATSC 3. 0 broadcast standard could realize an increase in their compound annual growth rate (CAGR) of 3% to 5%. § BIA/Kelsey also predicts a significant increase in spot advertising buys, as 54% of more than 1, 000 small and mid-size businesses said they expect to increase their 2018 TV ad budgets compared to just 6. 4% decreasing their TV ad spending. § The top 5 local OTA TV advertising sectors for 2018 are automakers/car dealers, $3. 9 billion; hospitals, $703 million; supermarkets, $702 million; wireless carriers, $691 million; and full-service restaurants, $619 million.

Digital Media Crowds the Dance Floor § The media world has certainly experienced major events during 2017, including AT&T’s pending purchase of Time Warner (if the US Justice Department approves). § During December 2017, The Disney Co. announced its intention to purchase most of the assets of 21 st Century Fox and during mid-December, the FCC voted to eliminate “net neutrality” regulations for the Internet. § The OTT market is predicted to become even more crowded with Comcast, Disney and Apple all trying to grab a share of this burgeoning market, and compete with Netflix.

Digital Shopping § According to BIA/ Kelsey’s US Local Advertising Forecast 2018, social media ad revenues from mobile phones will account for approximately 71% of total social ad spending, with this percentage increasing to 80% by 2022. § 2018 will also be the year that e-commerce first reaches a double-digit share of all US retail sales, although still a small 10. 0%, or a total of $521. 58 billion. § From 2017 to 2021, e-commerce sales of apparel/accessories will increase the most, in terms of total dollars, but auto and parts, health/personal care, toys and hobbies and food and beverage will increase at larger rates.

Shopping Becomes an Ever -More Mobile Experience § Retail m-commerce sales in the US will total $206. 51 billion during 2018, a 39. 6% increase from 2017, and will more than double by 2021, to $420. 17 billion. § The smartphone’s share of 2018 m-commerce will be $147. 63 billion, a 43. 4% increase from 2017, and then increase another 235%, to $346. 28 billion by 2021. § US mobile ad spending will increase 20% from 2017 to 2018, or $58. 38 billion and $70, 05 billion, respectively, and represent 74. 7% of all digital ad spending.

Technology Is Life – Life Is Technology § 2018 will take us one step closer to what will seem like total disruption of almost everything, as we are about to experience a technological revolution/evolution the likes of which we have never witnessed. § Artificial intelligence (AI), robotics, 5 G connectivity, augmented reality (AR) virtual reality (VR) are no longer technologies for some future indeterminate time period, they are entering every aspect of life, business and media today. § In an October 2017 survey from Ericsson, 75% of advanced Internet users from 10 global cities said they believe that within only five years they will use virtual reality to walk through smartphone photos.

Digital Disruption Has Been Less Than We Think… § A 2017 Pw. C study discovered that the digital age to date hasn’t caused as much disruption among major companies as many consumers and business leaders (and TV sales reps) think. § Pw. C’s tracking of the revenues of the top 10 companies in 39 business sectors revealed that just 6% of company value, or increase or decrease of market share, occurred during the past 10 years. § Even in the sectors – Internet software and services, IT and biotechnology – that should have been most affected, only 10% experienced a change in market value.

…But That Doesn’t Mean Immediate Action Isn’t Required § No business will be able to react to these changes as they occur. Preparation is absolutely critical. Already many brands and major retailers are suffering from shortsightedness, as consumers are changing their shopping habits quickly. § As retailers and other business sectors try to maintain/sustain their legacy business models, those with a more progressive business model are causing significant disruptions quicker than these old-model businesses thought possible. § Disruptive technologies may affect business and society slower than it appears, but major disruptions will occur. At first, disruptive technologies are barely noticed, but then suddenly enter the mainstream, leaving many businesses ill-prepared.