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Page 1: Top 10 Trends Predictions for 2011

REPORT BY

Top 10 Trends Predictions for 2011December 2010

Page 2: Top 10 Trends Predictions for 2011

Table of ContentsSection 01: Mobile Payment for AllSection 02: The Rise of Hands-Free FeedbackSection 03: App Based Hardware DominationSection 04: Signing in to Your TVSection 05: Our Heads in the CloudsSection 06: A Content CrossroadsSection 07: Independence Day for BrandsSection 08: The Social Message is the MediumSection 09: The Search for Mobile is OnSection 10: Let’s Get PhysicalAbout Moxie

Table of Contents2

Page 3: Top 10 Trends Predictions for 2011

Executive Summary

About Moxie3

2010 was a year of accelerated change in technology, entertainment, gaming, business, marketing

and social connectivity. The confluence of smart phone adoption, digital video consumption,

tablet computing and connected devices combined with the launch of the 4G wireless network laid

the foundation for innovation to kick into higher gear in 2011. We conferred with industry experts

and influential business leaders shaping these changes and posed one simple question to them:

“What will be the biggest trend in 2011?” Their opinions and our predictions shaped what we

believe will be the top 10 trends to look for next year.

Page 4: Top 10 Trends Predictions for 2011

Mobile Payment for All

Section 01

Section 01: Mobile Payment for All4

Page 5: Top 10 Trends Predictions for 2011

M-commerce has been a trend on the horizon for many years now, just as the last five years have been deemed “the year of mobile advertising.”

We have been patiently awaiting our cell phones to replace our credit cards,

just as they replaced family pictures in our wallets. In 2010, established players

such as PayPal introduced mobile commerce apps both on smart phones and in

retail environments. 2011 will continue this trend. However, advances in Near

Field Communication and an onslaught of other software-based mobile

solutions will bring the mobile wallet to the masses. Your mobile phone will

enable you to split a bill for a dinner with your friends or pay for that new pair

of jeans in your local mall.

Section 01: Mobile Payment for All5

Page 6: Top 10 Trends Predictions for 2011

PayPal has paved the way for future mobile commerce developments slated to

be seen in 2011 with such developments as the release of its Mobile Express

Checkout system. This two-click payment system has been integrated into the

apps of such partners as Starbucks. The coffee giant integrated this

functionality to allow customers to reload their Starbucks loyalty cards from

within its existing app.

PayPal is also integrating mobile payment solutions in the retail space. PayPal

Labs in Japan has created a vending machine experiment that lets users scan an

attached QR code with a smart phone, then users can pay for the goods with

funds in their PayPal accounts. The vending machine then tweets the purchase

as a confirmation. Similarly, eBay’s RedLaser mobile app allows users to scan

items in-store to discover lower prices or further information.

Section 01: Mobile Payment for All6

Page 7: Top 10 Trends Predictions for 2011

Another rising form of m-commerce is Near Field Communication, or contactless payment.

Making NFC technology possible has been a struggle thus far due to lack of

infrastructure, but will continue to mature in the coming year. National phone

payment network Isis will be a major player in making this speculation come to

fruition. The network includes partners such as Verizon Wireless, AT&T and T-

Mobile and could potentially reach the wireless carriers' combined customer

base of 200 million U.S. customers. When these consumers are enabled with

NFC-capable devices such as Google’s latest flagship smart phone, the Nexus S,

we will see this technology take off, becoming an established payment method.

Section 01: Mobile Payment for All7

Page 8: Top 10 Trends Predictions for 2011

We will also see more small businesses using mobile solutions such as the “Swipe It Reader” for the iPhone to collect payments.

This could eventually trickle down from small business integration to personal

payments as well. According to Dick Costolo, CEO of Twitter, “there is a good

chance that you will pay your babysitter on next year's New Year's Eve using a

credit card. Many more people will be able to accept credit card payments

using their mobile phones.”

Section 01: Mobile Payment for All8

Page 9: Top 10 Trends Predictions for 2011

Implications for Brands

With the development and expansion of these existing and emerging

technologies, consumers will have the ability to purchase goods and services

with fewer obstacles and will have a higher level of control over the way they

make these purchases.. This will stimulate e-commerce, m-commerce and in-

store sales. The innovative payment options available in 2011 will foster not

only positive public relations for large corporations and start-ups but will also

provide a way for consumers to select their merchants of choice based on ease

of purchase.

Section 01: Mobile Payment for All9

Page 10: Top 10 Trends Predictions for 2011

“There is a good chance that you will pay your babysitter on next year's New Year's Eve using a credit card. Many more people will be able to accept credit card payments using their mobile phones.”

Dick Costolo, CEO of Twitter

Section 01: Mobile Payment for All10

Page 11: Top 10 Trends Predictions for 2011

The Rise of Hands-Free Feedback

Section 02

Section 02: The Rise of Hands-Free Feedback11

Page 12: Top 10 Trends Predictions for 2011

Location services on smart phones have shown the power of data to open up new services to consumers.

In 2011, new services will leverage data from the smart phone, like the

accelerometer for tracking physical activity. The Tasker app for Android is an

example of how location can be used to automate a phone’s behavior:

switching to silent when in a meeting, hands-free when driving in a car, and

other automated and location-driven settings. Feedback on user health,

purchasing patterns and even the environment will give businesses the data

needed to further solidify the smart phone’s position as the Swiss Army Knife

of information.

Section 02: The Rise of Hands-Free Feedback12

Page 13: Top 10 Trends Predictions for 2011

For years, people have been promoting a vision of the world where upon walking into a location you are instantly delivered deals and promotions.

That vision is alive today, brought to us by geo-fencing services from

companies like Location Labs and Placecast, which place a digital “fence”

around a location allowing the service to push promotions to smart phones

that enter the area. Some users may be turned off to the idea of instant alerts

that turn their smart phones into mobile pop-up ads. However, a major driver

in location-based service adoption has been mobile couponing. According to

eMarketer, 32 percent of U.S. Internet users are open to accepting automation

for coupons, showing resistance to geo-fencing may be lower than anticipated.

Section 02: The Rise of Hands-Free Feedback13

Page 14: Top 10 Trends Predictions for 2011

Thinking beyond couponing and location, new possibilities for mobile feedback loops will emerge in 2011.

The declining cost of wireless sensors combined with high-speed mobile data

through 4G and WiMAX will encourage more industries to get involved in

mobile. This will introduce devices other than phones and computers that

deliver new services by sheer virtue of linking a sensor to a wireless

connection.

Linking bio-feedback to mobile devices for remote health and fitness

applications will become more widespread and will give users more insight into

their health and the impact of their decisions. The FitBit is a great example of

how an unobtrusive, connected device could change lives. The simple device is

clipped anywhere on a user, such as in a pocket or on a belt loop, and then uses

a simple accelerometer to track physical activity throughout the day. It also

contains WiFi, so this accelerometer data is automatically uploaded to FitBit’s

services to provide real-time feedback on number of steps taken through the

day, length and quality of sleep, and more.

Section 02: The Rise of Hands-Free Feedback14

Page 15: Top 10 Trends Predictions for 2011

Automated and data-driven services are in a very early stage of development but have the potential to revolutionize many areas of daily life. The last 10 years were the decade of social feedback; the next 10 will be the decade of automated data collection.

Implications for BrandsThe rising sea of sensors is creating a deep well of audience information that

marketers will use to find and connect with their ideal consumers. Additionally,

the interfaces and consumer-facing feedback delivery systems could spawn a

new breed of media placements that are tied to personalized information.

Section 02: The Rise of Hands-Free Feedback15

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“Next generation services will be made possible by smart phone-powered feedback loops. Restaurant reviews and real-time traffic visibility have been but the opening acts, but auto detection and user free input will begin an era of extremely rapid – and high impact – innovation in the areas of health sciences, commerce, communications and more. “

Jason Kilar, CEO of Hulu

16 Section 02: The Rise of Hands-Free Feedback

Page 17: Top 10 Trends Predictions for 2011

App Based Hardware Domination

Section 03

Section 03: App Based Hardware Domination17

Page 18: Top 10 Trends Predictions for 2011

300,000 apps in the Apple app store. 100,000 apps in the Android Market. Blackberry App World has 10,000 apps.

In 2011, users will find themselves in a constantly expanding market of mobile

apps that promise to improve their lives through productivity or

entertainment. Experienced smart phone users will be looking for intuitive

apps to extend into other parts of their lives. Major consumer electronic

manufacturers like Ford and Samsung have already considered this shift in user

experience and have begun development on app-enabled products.

Section 03: App Based Hardware Domination18

Page 19: Top 10 Trends Predictions for 2011

The current mobile phone app user is younger, more educated and more affluent than the average mobile phone user.

--Pew Internet Survey - September of 2010.

On average, these users have 18 apps that are both free and paid for, the most

popular being games, news/weather, maps/navigation, social networking and

music. Samsung’s “Free the TV Challenge,” where contestants create an app

for use on specialized Samsung TVs and Blu-ray devices, targets these users and

their app-centric expectations. Applications created for this contest include

We-draw, a “Pictionary-esque” game that uses your mobile phone as the

remote, and Guroo TV, which creates a list of the shows most talked about on

Twitter and other social media platforms.

Section 03: App Based Hardware Domination19

Page 20: Top 10 Trends Predictions for 2011

Web browser apps are another area of growth.

Google launched its Chrome Web Store, which houses over 500 applications, in

December, 2010. Partnerships worth noting include Gilt Group, a group

discount membership network, and NPR, where custom views of information

offer a tablet-like experience on your PC. Google’s move to provide apps for

Chrome users further shows that people will be expecting intuitive, specific

experiences not only on mobile devices but on their PCs as well.

Section 03: App Based Hardware Domination20

Page 21: Top 10 Trends Predictions for 2011

The app world has also started to infiltrate the automotive industry.

Carbonga is a mobile app that tells drivers why the “check engine” light has

come on and is available to any person with an app-enabled device. However,

car manufacturers are seeing this area as a way to differentiate their products

from competitors’ and are building apps directly into their vehicles. Ford is

leading the charge. Their Sync Applink system offers a Web connection and

open platform in their cars, extending the services and value they provide their

customers.

Section 03: App Based Hardware Domination21

Page 22: Top 10 Trends Predictions for 2011

2011 will be the year when apps move beyond the smart phone and tablet into a wider range of consumer electronics.

Consumer excitement for apps has gotten the attention of developers, and we will

see this enthusiasm lead to app development for as many products as possible.

The development of applications that are optimized for these new environments

will open up new opportunities to reach end users. The companies that are slow to

embrace the app culture will be left behind.

Implications for BrandsBrands will need to keep in mind that any app they produce, no matter the

channel, needs to be inexpensive, easily accessed and light on the processor load.

Customers won’t take well to brands who kill their battery on a regular basis, no

matter how useful the app. In addition, brands should consider that apps will

break free from mobile phones and tablets and will be more commonly integrated

into such things as refrigerators and cars.

Section 03: App Based Hardware Domination22

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“Consumer usage of smart phone apps will hijack the development strategy for consumer electronics and cars. Apps are taking over the user experience – both as controllers and user interfaces – of how people interact with and consume content. Consumer electronic devices and cars have no choice but to base their strategy on coping with that phenomenon.”

-Tim Westergren, Founder & CEO of Pandora

Section 03: App Based Hardware Domination23

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Signing in to Your TV

Section 04

Section 04: Signing in to Your TV24

Page 25: Top 10 Trends Predictions for 2011

Family viewing will no longer be the gatekeeper to television audience measurement as the line between television and the Internet continues to blur in 2011.

Cordcutting – consumers abandoning traditional TV access in favor of Internet

alternatives – is now an option that Americans are taking more seriously as

home theater PCs, game consoles, and new Internet TV initiatives like Boxee

and Google TV make it easier for users to access online content from their

sofas.

Section 04: Signing in to Your TV25

Page 26: Top 10 Trends Predictions for 2011

The foundation of this shift is the appearance of connected TVs in consumer homes.

Nearly 28 million connected TVs were shipped to stores in 2010 and 148 million

are expected to ship by 2014 according to iSuppli. And those numbers don’t

take into account existing gaming consoles and Blu-ray players that have

Internet connectivity baked in.

Section 04: Signing in to Your TV26

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The second driving force is the emergence of connected TV applications that ask users to sign in.

This will allow content providers to tie viewing habits to consumer profiles,

unveiling a completely new layer of data regarding who is watching what. And

viewers will benefit too. By incorporating user preferences along with qualities

such as geography and viewing habits, television can provide a customized

experience.

Section 04: Signing in to Your TV27

Page 28: Top 10 Trends Predictions for 2011

2011 will be the year that TV becomes more interactive due to a combination of users making the switch to new devices and content providers integrating more Internet-based services into their products. Accessing content through these services will open new opportunities for audience measurement and will lead to a revolution in the relevance of television advertising.

Implications for BrandsIn the coming year, addressable advertising on TV will become a

reality. Connected TVs will allow marketers to tailor their message specifically for

the audience at hand while also providing detailed measurement of viewer

interaction. Think in terms of what banner advertising targeting and analytics look

like today. Additionally, the value of advertising space on TV will increase, in part

due to the value added by sophisticated measurement and in part because more

accurate measurement may reveal that space around certain programming has

been underpriced.

28 Section 04: Signing in to Your TV

Page 29: Top 10 Trends Predictions for 2011

“2011 is when Internet and TV will start being hard to tell apart. Just as we sign into our mobile devices today, we will be signing into our TVs, gaming consoles, cable boxes and more next. This will integrate the best of TV with relevant and real-time information. Those who watch TV to lean back will have a new reason to lean forward.”

Rishad Tobaccowala, Chief Innovation Officer of VivaKi

Section 04: Signing in to Your TV29

Page 30: Top 10 Trends Predictions for 2011

Our Heads in the Clouds

Section 05

Section 05: Our Heads in the Clouds30

Page 31: Top 10 Trends Predictions for 2011

The sky is the limit for cloud-based services in 2011.

Cloud computing is an up-and-coming method of content storage and retrieval

that lets users shift content to and from multiple devices– whether they be

personal computers, servers or otherwise. This is creating a novel notion in the

consumer market that free-range, digital content should have the ability to

move fluidly rather than being tied to one device. We will see this idea

continue to catch on across various industries and in marketing efforts in 2011.

Cloud-based services are not a revolutionary concept. We have been tinkering

with the idea of shared content amongst devices since the 1960s when

computer scientist, John McCarthy, speculated that “computation may

someday be organized as a public utility.” This suggestion has now become a

reality. Overall, the global market for cloud-based services is expected to grow

over 100 percent, from $68 billion in 2010 to nearly $150 billion in 2014. This

increase is a stunning marker of what the future holds.

31 Section 05: Our Heads in the Clouds

Page 32: Top 10 Trends Predictions for 2011

This trend is unfolding across a number of industries.

In the entertainment industry, Netflix and Hulu have become popular cloud

alternatives to traditional film and television houses and both are expanding to

mobile devices. Internet-based programming from such services as Apple TV,

Google TV and Boxee are providing similar options. In the music industry, Apple

and Google are facing increased pressure to move their music into the cloud as

competitors like Rdio and MOG offer consumers subscription-based music

available directly on smart phones.

The gaming industry will also be heavily impacted by cloud computing. Services

such as OnLive are expanding internationally and competitors GaiKai and OTOY

are not far behind. At the same time we are seeing a decline in the dominance

of gaming consoles such as Microsoft’s Xbox and Sony’s PlayStation. During the

first six months of 2010, more video games were purchased and downloaded

from the cloud than were bought in actual retail stores, which was an industry

first.

32 Section 05: Our Heads in the Clouds

Page 33: Top 10 Trends Predictions for 2011

Services provided by such titans as Amazon are also based on cloud computing.

Popular political news website Wikileaks uses Amazon’s Elastic Compute Cloud

to easily scale server storage due to traffic spikes from the shocking nature of

the content. Zynga’s FarmVille would not have survived without the same

service, which provided a way for the company to increase server storage space

as the game gained users and became the first to garner a stunning 10 million

daily active users.

Section 05: Our Heads in the Clouds33

Page 34: Top 10 Trends Predictions for 2011

Implications for Brands

Cloud computing will become exponentially more relevant in the marketing

industry in the coming year. Cloud-delivered content will carry seamlessly

blended marketing efforts that consider both the audience and the delivery of

content to multiple devices. Marketing efforts will appear to be more organic

and thus more effective as cloud-based computing continues to flourish with

the onward progress of 2011.

Section 05: Our Heads in the Clouds34

Page 35: Top 10 Trends Predictions for 2011

“The continued investments in cloud infrastructure will truly bring to life seamless content experiences and consumers will be able to play and pause content regardless of the device, whether in their living room, on mobile or on their PC. In doing so, users will expect marketing to be relevant and personal based on the consumption device.”

Carolyn Everson, CVP of Microsoft

Section 05: Our Heads in the Clouds35

Page 36: Top 10 Trends Predictions for 2011

A Content Crossroads

Section 06

Section 06: A Content Crossroads36

Page 37: Top 10 Trends Predictions for 2011

Consumers will continue to find themselves helpless in overcoming information overload in 2010.

The spread of more entertainment to the Web is creating a higher demand for

better search engines and is leading to the rise of Web curators – people who

build large online followings by finding or producing the best content the

Internet has to offer. A combination of these individual curators and

technologies that help to determine and deliver recommendations to end users

will grow in importance. This will lead to a new age of online content that turns

searches into meaningful discoveries.

Section 06: A Content Crossroads37

Page 38: Top 10 Trends Predictions for 2011

Search has long been the dominant mode of discovering content on the Web, but now algorithm-based recommendation systems have become the go-to source for discovering new forms of online content, from Pandora for music to Netflix for film.

Such companies are reverse engineering the souls of their users by analyzing

users’ content ratings and then matching that profile with similar users. Sites

like Hunch.com are making it easy for users to get recommendations and gift

ideas by building “taste graphs” of the products, media and services they

strongly prefer.

Section 06: A Content Crossroads38

Page 39: Top 10 Trends Predictions for 2011

Though privacy concerns will increase as services expect more information for better recommendations, the trade off for many people will be worth the cost –highly relevant, engaging content recommended to you in exchange for giving a computer program some basic information about what you like.

The overwhelming amount of content moving online will make this data exchange a no-

brainer for most consumers. The challenge for brands will be to find content curators that

users trust. Brands will also have to keep their messaging relevant and authentic to

maintain participant engagement. An excellent example of how a brand worked with

content providers to engage users is Intel’s partnership with Vice Magazine for The

Creators Project. The online experience guides users through video profiles of some of the

most creative, unique individuals at the crossroads of art and technology and leveraged

sites like BuzzFeed to promote the campaign.

Section 06: A Content Crossroads39

Page 40: Top 10 Trends Predictions for 2011

Curation services are also becoming personalized, automated content aggregators that are able to learn user preferences on their own.

My6sense is an RSS reader for mobile devices that simplifies the user

experience. It learns how the app. has been used in the past and makes

adjustments to present content that it knows the user will read. By capturing

information on what interests their users, My6sense has been able to create

one of the more sophisticated curation engines. We can expect more

companies to begin playing in this space in 2011, which will significantly expand

options and specialty services.

Section 06: A Content Crossroads40

Page 41: Top 10 Trends Predictions for 2011

Implications for Brands

2011 will blur the line between user-generated and professional content.

Brands that embrace the opportunity to not only generate but also sponsor

content will see a big return. Furthermore, the days of the big, easy media buy

are coming to a close. The Internet has already pushed advertisers to arrange

placements in a wider range of media outlets, but the emerging curation model

will further sharpen the attention of audiences and force the marketing world

to work harder to reach their target consumers.

UGC?

Section 06: A Content Crossroads41

Page 42: Top 10 Trends Predictions for 2011

“There will be more consumers looking for good content than there is good content. Advertisers will continue to follow consumers down the Long Tail, as every feature film, and music library will be made legitimately available online.”

Joanne Bradford, CRO of Demand Media

Section 06: A Content Crossroads42

Page 43: Top 10 Trends Predictions for 2011

Independence Day for Brands

Section 07

Section 07: Independence Day for Brands43

Page 44: Top 10 Trends Predictions for 2011

While most websites are looking for ways to integrate data from services like Facebook, Google or Twitter more deeply into their content and services, a growing list of sites are differentiating themselves by creating an online presence that gives the users more control over how they are tracked and profiled.

Online privacy issues gained mainstream exposure in 2010 and will become a

more hotly contested issue in 2011. Users will look for new ways to control the

use of their personal data or simply go to sites where they are in control. This

simple approach of handing control of data back to users will draw unique

audiences that brands will have to reach without help from major online data

brokers and targeting services.

Section 07: Independence Day for Brands44

Page 45: Top 10 Trends Predictions for 2011

Today, if brands want to engage with online social media audiences they often push their messaging through Facebook or Twitter in large fan acquisition sprees.

Users don't want to feel like some creepy algorithm already knows everything

about them or that they’re simply being “used” for their personal data mine.

Brands will need to link social strategies back to their larger 360-degree

strategies to create a space for participants to get to know their brand. In the

past few years, big brands have been encouraged to “join the conversation” in

social media; in 2011 they are going to need to get cozy and invite participants

back home for drinks.

Section 07: Independence Day for Brands45

Page 46: Top 10 Trends Predictions for 2011

Brands will also gain more independence from mobile device fragmentation.

New development tools like Sencha make it easy to optimize rich-media sites

for mobile sites. This allows brands to break free from app stores, create

permanent mobile Web presences that take advantage of technologies like

HTML5 and Flash and put the weak mobile sites of the last decade to shame.

Brands will no longer have to meet the unique demands of a proprietary app

market and instead will be free to create unrestricted mobile experiences that

appeal to mobile users who expect more from their mobile browsing

experience.

Section 07: Independence Day for Brands46

Page 47: Top 10 Trends Predictions for 2011

Brands should be excited for 2011 since they’ll no longer be as reliant on third-party data or approval of great ideas.

Implications for BrandsMarketers will need to work with a larger selection of partners to reach the

consumers that frequent independent websites. However, they will benefit from a

wider range of creative options. Marketers will also benefit from access to the data

that site users provide and will have more flexibility when developing mobile

applications and websites.

“?

47 Section 07: Independence Day for Brands

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“2011 will be the rise of the Independent Web -that part of the Web that is not dependent on major platforms like Facebook, Google, Microsoft or Yahoo. Apps, services and sites which lead the Independent Web draw unique and powerful audiences because they are not driven by dependent-Web business rules and economics. Brands will learn how to leverage those audiences at scale in meaningful ways.”

John Battelle, Founder of Federated Media

Section 07: Independence Day for Brands48

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The Social Message is the Medium

Section 08

Section 08: The Social Message is the Medium49

Page 50: Top 10 Trends Predictions for 2011

Brands will begin looking for new media placements that leverage social activities and interactions rather than simply looking for placements with impressive audience size.

Charting the success of a campaign already involves analyzing social media for

many brands. Now instead of simply tracking buzz about a campaign,

companies will provide analytics on consumer activity and engagement as well.

Section 08: The Social Message is the Medium50

Page 51: Top 10 Trends Predictions for 2011

A good example is the “check-in.” It can be used to measure a campaign’s

overall success and could help to tailor an execution to locations that see high

levels of mobile activity rather than foot traffic. This way of thinking – activity

levels as media buys – will become popular as the spread of social games like

Zynga’s FarmVille and game-like rewards programs open brands’ minds to the

concept of active users instead of impressions.

FarmVille was the toast of the social gaming world throughout 2010 and was unsurprisingly a leading platform for innovative social media advertising.

Earlier this year when players chose seeds for their farm, they were offered

branded seeds by sponsors such as Cascadian Farm, a line of organic foods

from General Mills.

Section 08: The Social Message is the Medium51

Page 52: Top 10 Trends Predictions for 2011

On the mobile front, social brand integration specialists appssavvy designed a

campaign for clothing retailer H&M. They rewarded players of MyTown (a

mobile social game, think real-world Monopoly) with virtual items and in-game

points when they checked in to a retail or female-centric location such as a spa

or hair salon.

Section 08: The Social Message is the Medium52

Page 53: Top 10 Trends Predictions for 2011

Entertainment check-in services such as Get Glue are another natural fit for advertising.

These services allow users to log and broadcast their consumption of media

content. Benefits include recommendations and rewards based on activity as

well as the opportunity to discuss the content with friends and strangers. In

terms of advertising, television shows and music can be tied to psychographic

profiles much as they are for traditional television advertising. But in this

space, users are engaging in traceable behavior that can be used to trigger

specific messages and experiences.

Section 08: The Social Message is the Medium53

Page 54: Top 10 Trends Predictions for 2011

As we enter 2011, look for opportunities to buy social activities instead of traditional media space. These new types of placements connect with consumers when they are doing brand-relevant things. Campaigns that take this approach will be more effective as a result.

Implications for BrandsThis shift will open up several opportunities for marketers. Social activity

placements will be more effective as they are tied to actions rather than

viewership, and these placements facilitate more sophisticated results

reporting. This will allow marketers to be more confident that their money is

being spent effectively. Also enhancing the psychographic audience profiles

marketers build through focus groups and third party research.

54 Section 08: The Social Message is the Medium

Page 55: Top 10 Trends Predictions for 2011

“We’re going to see a shift from buying the medium – content sites like Yahoo! and MSN, and social sites like Facebook and MySpace – to buying the activity. [It’s] the quiz app I'm using on my iPhone, the social game I'm playing, me checking in to let my friends know where I am, or talking about the things I care about in an online community. 2011 will be the year brands learn how to buy social activity.”

Chris Cunningham, CEO of appssavvy

Section 08: The Social Message is the Medium55

Page 56: Top 10 Trends Predictions for 2011

The Search for Mobile is On

Section 09

Section 09: The Search for Mobile is On56

Page 57: Top 10 Trends Predictions for 2011

Mobile search will become even more important in 2011 as marketers begin to think of it in ways beyond the Google query.

In retail, shoppers have turned to barcode scanners as a way of searching for

other prices and online deals before checking out. Travelers and locals alike are

turning to location-based services to fuel local discovery of hotspots and

unique locations across the globe. Consumers worldwide are seeing the

definition of “search” expand before their eyes. Search now encompasses a

variety of activities not traditionally associated with the term and advertisers

will need to adjust as well.

Section 09: The Search for Mobile is On

SEARCH

57

Page 58: Top 10 Trends Predictions for 2011

Barcode scanning is a habit that consumers are adopting at a rapid pace.

Barcode technology provider ScanBuy reported that usage of their platform

grew 700 percent between the start of 2010 and the beginning of the fourth

quarter. In addition, a multitude of start-ups have emerged, which put varying

spins on the idea of mobile search via barcode scanning. ShopWell, for

example, collects user information such as health goals, diet approach and

allergies, then provides personalized ratings for products when they are

scanned in-store.

Section 09: The Search for Mobile is On58

Page 59: Top 10 Trends Predictions for 2011

The potential for further innovation in this area is huge.

“Checking in to get a free coffee at Starbucks is a nice evolution on targeted

coupons, but it's only the beginning of the opportunity in mobile for marketers

looking for performance marketing opportunities,” Daina Middleton, CEO of

search marketing agency Performics, reported.

Geo-location technology offers another fruitful path to innovation in mobile

search. In 2010, Google introduced a “near me now” option in Google Mobile

and Android. This feature allows users to browse nearby locations without

entering any information themselves. Their phone simply uses GPS to figure

out where they are.

And according to Middleton, mobile search will grow quickly by traditional

measures in 2011 as well. “Mobile search clicks will double to 16 percent and

mobile conversion rates will double to 10 percent year over year.”

Section 09: The Search for Mobile is On59

Page 60: Top 10 Trends Predictions for 2011

The growth patterns of traditional and alternative mobile search share common roots.

Increasing smart phone adoption means that consumers are becoming more

accustomed to the tools, and innovators have more incentive to come up with

game-changing ideas. In 2011, more marketers will begin to recognize the

potential of mobile as a discovery engine that can drive purchases and foot

traffic.

Section 09: The Search for Mobile is On60

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Expect to see continued innovation as well as more enthusiastic adoption by both marketers and consumers.

Implications for BrandsThese new developments in mobile search have transformed a national market

into a multitude of local ones. Major marketers need to start working from the

grassroots level by adjusting their message and placements to local audiences and

market conditions. Additionally, marketers that aggressively pursue alternative

methods of search will be rewarded by impressive share of voice and exposure in

the affluent early adopter market.

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“Mobile search clicks will double to 16 percent and mobile conversion rates will double to 10 percent year over year. Checking in to get a free coffee at Starbucks is a nice evolution on targeted coupons, but it's only the beginning of the opportunity in mobile for marketers looking for performance marketing opportunities,”

Daina Middleton, CEO of Performics

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Let’s Get Physical

Section 10

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2011 will bring a revolution in the way participants will interact with a multitude of in-home, mobile and out-of-home devices, providing groundbreaking marketing opportunities.

We have already come a long way. The success of the Nintendo Wii led to a

push in 2010 by Microsoft and Sony to launch their Kinect and Move gesture

controls and companies will continue to develop on these flagship physical

platforms.

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Within the first 10 days of sales, one million Microsoft Kinect devices were sold.

This number is an astonishing signal that consumers not only have a keen

interest in gesture-based technology, but are also willing to invest in it and

encourage friends to join the fun. PrimeSense, one of the companies behind

the Kinect technology, is planning to launch a gesture-controlled set top box in

the summer of 2011 and has secured at least one cable company partner,

demonstrating the forward progress in this segment. Glove and marker-free

gesture control for multiple users has also been shown to be possible by

Fraunhofer's FIT. Their software can not only detect multiple people, but can

also distinguish details such as users’ finger motions.

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1,000,000 SOLD

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Large companies are not alone in developing

gesture-based interfaces.

Students at MIT Media Lab’s Fluid Interfaces Group have developed a Web

browser extension for Kinect that allows users to surf the Internet with gesture

controls. Members of the open-source community are also experimenting with

various ways of “hacking” the Microsoft Kinect. The open-source software that

these developers have created could potentially be beneficial for search and

rescue missions, mental health advancements, 3D modeling, and visual art and

puppetry. This further highlights what is possible with motion tracking beyond

the living room and in gestural-based digital out-of-home.

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2011 will also bring a new range of possibilities for gesture based technology in the mobile field.

Mobile movement-controlled hardware technologies are bringing down the

physical barriers that divide the device from the user. Devices are also

becoming more intelligent with software; the Microsoft Kinect can recognize a

particular user’s voice, face and body movements, and we will only see further

additions to this list with time. Software allowing for facial expression

recognition could also lead to emotion-based gaming that monitors and

responds to a participant’s reactions.

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What places the combination of gesture-based hardware and software at the pinnacle of innovation is its ability to bestow a feeling of artificial, super-human control.

The typical perception of how people are able to control hardware is crumbling

with the ability to use biological means – the body – as a “magic wand” to

interact with mechanical devices of all kinds. This philosophy is portrayed in

Arthur C. Clarke’s third “law” of prediction, which states that “any sufficiently

advanced technology is indistinguishable from magic.”

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Implications for Brands

Just as new user interfaces that leverage state-of-the-art gestural technology

will climb to the top of the market, branded executions using this technology

will also garner widespread attention and praise. Xbox has developed ads that

can recognize the age and sex of viewers. This technology has already been

implemented in Japanese billboards. Physically interactive ads are the next step

for visionary brands, and will give their customers something to spread the

word about as we move onward in exploring this digital frontier.

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“2011 will be the year that blurs the connection between the physical and digital world. With the recent step changes in touch based and tablet computing and new form factors for mobile devices and gesture based gaming technology, the personal nature in which technology extends our physical interactivity will be game changing. Exciting software and hardware interfaces with organic sensory inputs will introduce digital ‘super powers’ we never imagined.”

Joel Lunenfeld, CEO of Moxie Interactive

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About Moxie

About Moxie71

Moxie Interactive is creating the agency of the future, by fusing media, creative, and technology to

achieve brave, accountable marketing solutions. Its capabilities include communications planning,

media planning and buying, search marketing, branded entertainment, advertising and

development, ECRM, sponsorship services and campaign management. At the heart of the agency

is the Participants Intelligence department, providing Moxie’s clients with details on emerging

trends, insights and analytics, so that clients can spark interesting, unique and fresh conversations

with their customers.

Moxie's award-winning team is focused on connecting people and brands across all screens. Some

of our clients include Coca-Cola, Garnier, Maybelline New York, Puma, Verizon,Wireless, 20th

Century Fox, Cartoon Network and the Art Institutes. Moxie is a division of Zenith Media Services,

a Publicis Groupe Company, with locations in Atlanta, New York and Los Angeles. To learn more

about Moxie, visit www.moxieinteractive.com. You can also follow us on Twitter

@YouveGotMoxie and on Facebook at facebook.com/moxieinteractive.

Page 72: Top 10 Trends Predictions for 2011

Top 10 Trends for 2011

About Moxie72

AUTHORS

Rhiannon Apple, Emerging Trends Supervisor

Emily Knab, Trendspotter

Simeon Spearman, Trendspotter

Greg Steen, Trendspotter

CONTACT

Christine Bensen, SVP, Participant Intelligence

[email protected]

2049 Century Park East

Los Angeles, CA 90067

310-551-3529

©2010 Moxie Interactive. All Rights Reserved