F 10 Trends For 2011 11 30 10 A

10 TRENDS FOR 2011
DECEMBER 2010
TABLE OF CONTENTS
Executive Summary ...................................................................................... Our 10 Trends for 2011 ..................................................................................
All the Worlds a Game .................................................................................. The Urgency Economy .................................................................................. Non-Commitment Culture ............................................................................
.............................................................................................. De-Teching .................................................................................................. Retail as the Third Space................................................................................ Creative Urban Renewal ................................................................................ Worlds Colliding .......................................................................................... Hyper-Personalization .................................................................................. Outsourcing Self-Control .............................................................................. Appendix ........................................................................................................ Learn More about Our Influencers/Experts .................................................... Additional Charts ..........................................................................................
Eat, Pray, Tech
3 7 8 16 21 26 31 37 44 50 56 62 67 68 76
A note to readers: To make the report easy to navigate, this year weve added hyperlinks to the Table of Contents and Executive Summary, so you can jump immediately to the trends that most interest you. Weve also added summary pages for each trend where, again, you can click items on the page to jump to more information (or, alternatively, you can read the material straight through).
EXECUTIVE SUMMARY
In our sixth annual year-end forecast of trends for the near future, technology is the overriding theme, driving many of our trends and at the center of others. The economy also continues to be a common thread. JWTs 10 Trends for 2011 report is the result of quantitative, qualitative and desk research conducted by JWTIntelligence throughout the year and specifically for this report (for more on the Methodology, see page 5). Trends dont happen in isolation. They tend to intersect and work in tandem with each other, as youll see here. And many are extensions or outgrowths of trends we formerly spotted; after all, trends with real significance cant be assigned to just one calendar year. The trends explored here, which we believe have significant weight and momentum, indicate shifts that are likely to be with us for a while. 1. All the Worlds a Game: Increasingly, brands will apply game mechanics (leader boards, leveling, stored value, privileges, superpowers, status indicators, etc.) to nongaming spaces in an attempt to drive certain actions or behaviors. (Example: Volkswagens Bottle Bank Arcade Machine attempted to make recycling fun by outfitting a recycling bin with an arcade scoreboard, with points and flashing lights for depositing the right bottles in the correct slots.) 2. The Urgency Economy: As time-sensitive deals experience a renaissance among younger, hipper and more in the know shoppers, look for the act now strategy to extend beyond the Web, helping to nudge people back to their pre-recessionary, spend-now-think-later ways. (Example: Gap ran a one-day flash sale, which was promoted on Facebook and granted a discount to people who said a certain phrase (Flash40) at the register.) 3. Non-Commitment Culture: Reluctant to commit to discretionary or big-ticket purchases, people are increasingly opting for choices that require a less-permanent commitment. Consumers will be more likely to rent goods, buy them one year and sell them the next, or share them with friends. (Example: With experiments like Car2go from Daimler and BMW on Demand, automotive companies are entering the temporary car ownership space.) 4. Eat, Pray, Tech: If theres one category in which consumers are willing to commit, its technology. Worldwide, high-tech devices and services (and the skills to use them) are fast becoming as integral to people as food and clothing. In an interconnected, tech-driven and -enabled marketplace, the latest technology will be more than just a luxury or a guilty pleasure. (Example: The story of a homeless-by-choice writer who owns an iPad and a netbook is symbolic of tech as a core need.) 5. De-Teching: More people will choose to log offat least temporarilyor engage in one tech activity at a time in an effort to re-engage in the offline present and/or to rewire their brains to be more effective. (Example: People have begun voluntarily abstaining from digital media and in some cases initiating unplugging drives around certain holidays.)
EXECUTIVE SUMMARY
6. Retail as the Third Space: Retail spaces will increasingly serve as a third space thats only partly about shopping. With more people buying online as well as downloading digital versions of physical goods, shopping is becoming as much about experiences, unique environments and customer service as it is about the merchandise. (Example: Singapores OCBC Bank has Sunday Banking at many branches, with family workshops offering activities such as making a lantern for the Mid-Autumn Festival.) 7. Creative Urban Renewal: Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewalimproving local environments, adding beauty or helping to bring communities together. (Example: Earlier this year, Dulux Paints embarked on the Lets Colour Project, supplying material and organizing communities in Brazil, South Africa and India, among other countries, to help paint schools, homes and public spaces.) 8. Worlds Colliding: The borders between the online world and the physical world are becoming increasingly fuzzy. Mobile gadgets are bridging the two worlds, and all kinds of objects/devices are becoming Internet-enabled. So not only will we have a multitude of connected gadgets, but objects like fridges or even dog collars will connect to the Internet. The latter is often referred to as the Internet of Things. (Example: Last summer, Calvin Klein displayed bright red QR codes on billboards in New York and Los Angeles under the line Get It Uncensored. Reading the codes with a mobile phone took the user to an uncensored 40-second jeans commercial featuring model Lara Stone.) 9. Hyper-Personalization: Todays consumers seek personalized products, services and experiences; tomorrows will expect a personalized digital realm that offers up what they are most likely to need or want based on location, interests, demographic cohort, social network and so on. (Example: The Wilderness Downtown is an online video for an Arcade Fire track that uses Google Street View to incorporate the viewers childhood neighborhood into the experience.) 10. Outsourcing Self-Control: Beset by more temptations than everwhether its opportunities to spend, to overeat/drink, to get digitally distracted, etc.people will increasingly look to third parties to help them exercise self-discipline. More brands will assume the role of regulator, with products, tools or other services that prevent people from acting on impulses; theyll put hurdles in the way or give incentives to change behavior. (Example: MasterCards inControl shuts off a consumers credit or debit card once their pre-determined budget is met.)
EXECUTIVE SUMMARY
METHODOLOGY JWTs sixth annual year-end trends forecast is the result of quantitative, qualitative and desk research conducted by JWTIntelligence throughout the year. Specifically for this report, we conducted quantitative surveys in the U.S. and the U.K. using SONARTM, JWTs proprietary online tool, surveying 1,005 adults aged 18-plus (504 Americans and 501 Britons) from Oct. 15-24; data are weighted by age and gender. We received input from nearly 50 JWT planners across about two dozen markets, including Argentina, Australia, Brazil, India, Japan, the Philippines, Puerto Rico, South Africa, Spain, Thailand, Turkey, the U.K. and the U.S. And we also interviewed experts and influencers across sectors including retail, media, technology, gaming, urban planning, psychology and academia (see below).
EXPERTS AND INFLUENCERS*
STEPHEN BAKER, vice

David Belt
president of industry analysis for consumer technology, NPD
DAVID BELT, executive director and founder of Macro Sea
NICK BILTON, lead technology

Justin Oulette
RACHEL BOTSMAN,
co-author, Whats Mine Is Yours: The Rise of Collaborative Consumption
writer/reporter, The New York Times Bits Blog; author, I Live in the Future & Heres How It Works
Joanie Simon
NICHOLAS CARR, author, The Shallows: What the Internet Is Doing to Our Brains
GEORGE DISTLER, founder

and executive director, NOTXT Communications
NATHAN EAGLE, founder and

CEO, txteagle
MIT
CATERINA FAKE, co-founder,

Hunch
EXECUTIVE SUMMARY
Living PlanIT
co-founder, Living PlanIT
GWEN MORRISON, CEO of

the Americas and Australasia, WPPs The Store
Sanjeev Chatterjee
STEVE LEWIS, CEO and
SUSAN MOELLER, professor of media and international affairs; director, international center for media and the public agenda, University of Maryland
RAY OLDENBURG, professor

emeritus, University of West Florida; author, The Great Good Place
RAJAT PAHARIA, founder and

Laura Pfeifer
IAN PEARSON, futurologist,

Futurizon
Ian Pearson
chief product officer, Bunchball
MILTON F. PEDRAZA, founder

and CEO, Luxury Institute
RONALD SHER, CEO, Argus Group; principal, Metrovation
GRAHAM SMITH, social media

Marco Arment Misti Layne
moderator, Epix HD/Viacom
KIT YARROW, consumer psychologist; professor of psychology and marketing, Golden Gate University, San Francisco
GABE ZICHERMANN, chair,

Sion Fullana
Gamification Summit and Workshops; co-author, Game-Based Marketing
*See Appendix to learn more about the influencers and experts we spoke with for our 2011 Trends Forecast.
OUR 10 TRENDS FOR 2011
ALL THE WORLDS . A GAME

DRIVERS TREND MANIFESTATIONS
Social media enabling social one-upmanship and competition
Gaming has become ingrained in culture
Mobile technology
Instant gratification
The engaged consumer
New online models
Rise of humetrics
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ALL THE WORLDS A GAME
Increasingly, brands will apply game mechanics (leader boards, leveling, stored value, privileges, superpowers, status indicators, etc.) to nongaming spaces in an attempt to drive certain actions or behaviors. This is more than simply brandsponsored gamesconsumers will be engaged in brand communities, content or campaigns through incentives and rewards modeled on behavioral economics.
SIGNIFICANCE/RELEVANCE
Gamifying good behavior (conservation-throughcompetition programs, Volkswagens Fun Theory programs)
Gamifying life (EpicWin iPhone app, Nike Grid)
Gamifying finance (Mint.com, Barclays 56 Sage Street, Bobber)
Gamifying complex problems (Foldit, Breakthroughs to Cures)
Scavenger hunts (to win free JetBlue tickets; in support of the release of Jay-Zs memoir, Decoded)
Gamifying community participation (Badgeville)
Broadly, gamification can increase brand loyalty and engagement, drive or change consumer behavior or habits, push people to exercise influence over their peers and/or get them to consider buying something, doing something or going somewhere for the first time. Well see more brands encouraging competition or a competitive spirit to drive desired results, or adding a sense of play or fun into traditional promotions or everyday activities.
1. ALL THE WORLDS A GAME
TREND Increasingly, brands will apply game mechanics (leader boards, leveling, stored value, privileges, superpowers, status indicators, etc.) to non-gaming spaces in an attempt to drive certain actions or behaviors. This is more than simply brandsponsored gamesconsumers will be engaged in brand communities, content or campaigns through incentives and rewards modeled on behavioral economics.
We play games all the time, right? School is a game. Its just a very badly designed game. But game dynamics arent consciously leveraged in any meaningful way. If we can bring game dynamics to the world, the world will be more fun, more rewarding, well be more connected to our friends, people will change their behavior to be better. But if this is going to work it has to be something that anyone can play and that everyone can build.
SETH PRIEBATSCH, founder of gaming company Scvngr, The New York Times, Just Manic Enough: Seeking Perfect Entrepreneurs, Sept. 18, 2010
DRIVERS
Social media enabling social one-upmanship and competition: In broadcasting their behaviors, people have
consciously or unconsciously started to engage in social one-upmanship (Im more witty, worldly, in-the-know, onthe-go, etc., than you). The hyper-social Millennial generation is driving most of this, with 56 percent of our Millennial survey respondents in the U.S. and U.K. saying they often compare their activities, purchases, habits or behaviors with those in their social circle; nearly half say they often try to one-up those in their social circle. (See Figure 1a; see Appendix for country and gender breakdown.)
FIGURE 1A. SOCIAL ONE-UPMANSHIP

Percentage of American and British adults who agree
Millennials (18-32) Gen Xers (33-45) Boomers (46-65)
Marco Arment
62
I consider myself a competitive person
59 50
I may not admit it out loud or even think about it, but I often compare my activities, habits or behaviors to those in my social circle
56 52 26 48 36 19
I may not admit it out loud or even think about it, but I often try to one-up those in my social circle with my activities, purchases, habits or behaviors
Sites like YouTube and Facebook already have light gaming elements how many friends you have, who posts on whose wall, how many Likes you getthat allow the gamer to shift and decide their own goals. Games like World of Warcraft are successful because you define your own experience. Youre put into a world, and they give you goals, but you define your own goals, define your own game.
GRAHAM SMITH, social media moderator, Epix HD/Viacom
Gaming has become ingrained in culture: And Millennials have

grown up in an age of ubiquitous online, video and other digital games. In the U.S., online gaming has surpassed e-mail as the second most popular Internet activity behind social networking. One in five Americans aged 6-plus now play casual social games. Zynga is leading the explosive growth in the social gaming category, with its FarmVille attracting 54 million Facebook users and FrontierVille some 28 million users.
Sion Fullana
Mobile technology: While technology isnt necessary to brands

application of gaming mechanics, the proliferation of smartphones, with their gaming apps, real-time tracking tools and location-based services, will help to drive gamification.
Instant gratification: The delayed gratification associated with

traditional loyalty programs doesnt satiate the growing expectation for instant reward and/or feedback. (Sixty-five percent of our survey respondents agreed that with loyalty rewards programs, I feel like it takes so long to accumulate enough points to get anything worthwhile that I generally dont bother trying.) engage consumers in their brand and their conversation.
Three generations of people have been irrevocably changed by their exposure to games. Its in subtle ways we dont even think about consciously, and we call that game thinking. Weve been exposed to games, and now we start to unpack and solve problems using metaphors weve learned in games and techniques were accustomed to learning from games.
GABE ZICHERMANN, chair, Gamification Summit and Workshops; co-author, Game-Based Marketing
The engaged consumer: Its not enough to broadcast messages at passive receivers anymoremarketers need to New online models: Innovations like Foursquare, which rewards members with mayorships and perks for checking
in to certain places, have brought a competitive edge to everyday actions. Gilt Groupe and Groupon have made shoppers accustomed to flash sales, the equivalent of a game clock.
Rise of humetrics: As in, metrics that matter to everyday people (as defined by Frog Design). The masses of data
being collected from location-based apps and sensors can be framed in terms of competitive game play.
MANIFESTATIONS Gamifying good behavior: American utility companies have started using competition to encourage energy conservation. Energy Smackdown is a game in which several Massachusetts towns competed in conservation challenges; the most recent winning family reduced household consumption by 66 percent. And in Sacramento, Calif., smiley faces were added to utility bills when a customer used less energy than neighbors; six months after the initiative was introduced, people who received the report card/utility bill reduced their consumption by 2 percent more than those who didnt. Various other utilities have adopted this idea. According to social psychologist Robert Cialdini, peer comparison has proved one of the most effective ways to lower energy consumption among Americans.
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Volkswagens Fun Theory was a 2009/2010 U.K. campaign in which the automaker set out to show that fun is the easiest way to change peoples behavior for the better. Experiments from the automaker like Bottle Bank Arcade Machine attempted to make recycling fun by outfitting a recycling bin with an arcade scoreboard, with points and flashing lights for depositing the right bottles in the correct slots; over one evening, the bin was used 50 more times than the plain bin nearby. In the Speed Camera Lottery, a speed camera is rigged not to detect and fine speeders but to identify those who stick to the legal limit and enter them in a lottery for a cash prize. Gamifying life: Gamification works best when the rules of the game are aligned with the personal goals of the user. With the rise of apps culture, well see more games that turn life into a game, with selfdefined goals and achievements. EpicWin, an iPhone app, turns your to-do list into a fantasy quest with virtual treasure for finished tasks. Nike made the city of London into a game board for Grid, a competition that challenged individual and team runners. Foursquares evolving business model is rewarding users for real-world actions, beyond checking in at local businesses; a partnership with RunKeeper, for example, will create badges for users that achieve fitness milestones. More than 6 in 10 of our survey respondents agreed that making everyday activities (like running errands, doing chores, working out, etc.) more like a game (with points, rewards, a
FIGURE 1B. GAMIFYING LIFE

Making everyday activities (like working, doing school work, running errands, doing chores, eating out, working out, etc.) more like a game (with points, rewards, a leader board and/or competition) would make them more fun and rewarding If a layer of competition were added to everyday activities, Id be more likely to keep closer watch of my behavior/ habits in those areas/activities
63
73 53 51 61 40
} }
63%
51%
Nike Grid
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leader board and/or competition) would make them more fun or rewarding; agreement was strongest among Gen Xers (73 percent). And half our sample population agreed that if a layer of competition were added to everyday activities, Id be more likely to keep closer watch of my behaviors/habits in those areas/activities; again, Gen Xers were the most likely to agree (61 percent). (See Figure 1b; see Appendix for country and gender breakdown.) Gamifying finance: Even serious categories like banking and personal finance are injecting elements of fun into their brand experience, especially for younger audiences. Mint.com uses game elements (like a point system that lets you compete with users who have similar financial goals) to help people achieve financial fitness and has attracted 4 million active users. Barclays has a Web game, 56 Sage Street, aimed at improving teenagers understanding of banking. And Bobber is in the business of money thats got gameturning financial goals into social competition challenges for young people and their friends.
Gamifying complex problems: The way in which proteins fold is one of biologys hardest computational problems; with Foldit, people contribute to a solution by solving small challenges. Breakthroughs to Cures, created by game designer Jane McGonigal, is an attempt to change the way we think about medical research. Players contribute Tweet-sized ideas within a 24-hour period to various scenarios involving a disease epidemic that requires an accelerated research cycle. Nancy Barrand of the Robert Wood Johnson Foundation (a funder of the online game) explains: The current model used for developing effective, life-saving disease treatments is not keeping pace with scientific discovery. Gaming is the perfect tool to help foster the type of unconventional thinking that is necessary to create radical change in health care and accelerate the speed at which treatments are delivered.
Bobber
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Scavenger hunts: As more people use locationenabled smartphones, scavenger hunts are emerging as an ideal way for game mechanics to bridge the online and offline worlds (e.g., go to location X, perform an action, win reward). Instead of simply giving away free tickets to celebrate its 10-year anniversary, for instance, JetBlue held a scavenger hunt in New York where followers of #JB10NY were asked to bring specific itemsbirthday cards, etc.to specific locations at certain times. The launch for Jay-Zs memoir, Decoded, took the form of a scavenger hunt: Book excerpts were imbedded in real-world city locations, with clues available online, coordinated by a central hub at Bing.com/Jay-Z. Teen retailer Hot Topic partnered with game platform Scvngr for a hunt that tied in-store challenges to exclusive Harry Potter merchandise.
Gamifying community participation: Digg understood game mechanics early on, with its peer-voting mechanisms for moving popular stories up the headline chain. Badgeville, a startup, applies game mechanics to help Web publishers foster community engagement; users get virtual badges for actions that are important to the publisher, like reading an article or commenting on it.
The game mechanics are the how, the things: points, levels, leader boards, virtual items, achievements. Those are the actual mechanics that you use to create game dynamics. Game dynamics are the things people want: They want a reward, they want status, they want achievement, competition, self-expression, altruism. The dynamics are created by proper use of the mechanics.
RAJAT PAHARIA, founder and chief product officer, Bunchball
SIGNIFICANCE/RELEVANCE Were not talking about brand-sponsored games or brands integrated into gameswhat well see may not even be games in the classic sense but tactics that rely on game mechanics to tap into primal response patterns. Broadly, gamification can increase brand loyalty and engagement, drive or change consumer behavior or habits, push people to exercise influence over their peers and/or get them to consider buying something, doing something or going somewhere for the first time. Well see more brands encouraging competition or a competitive spirit to drive desired results, or adding a sense of play or fun into traditional promotions or everyday activities. Rajat Paharia, founder of gamification company Bunchball, sees measurable ROI in gamified websites: His Nitro gaming platform has increased time spent on a community site by 20 percent, members of a brand community site by 25 percent and participation in a social network by 55 percent.
Laura Pfeifer
bing.decodejay-z.com
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POTENTIAL Increasingly, we will see game mechanics extending in new ways. For instance, restaurants could team with weight-loss programs like Weight Watchers to reward diners when they choose healthier alternatives. In travel, envision a community of globe trotters competing for the most miles tallied in a year. In finance, banks could compare a consumers overall spending with the average spending of other customers in the same region; not only is it fascinating to see how one stacks up comparatively, but people would be encouraged to pay closer attention to their spending, a useful service in tough times. From dieting to saving energy, gamification can be a great tool in motivating good behavior. This is one reason health care is a category ripe for gamification, especially as it shifts toward a more patient-centric focus based on prevention and behavior modification. Patients can benefit too: When game designer Jane McGonigal suffered a major concussion, she turned rehabilitation into a role-playing game by creating SuperBetter.
The immediate feedback from gamification could be put in a lot of places to make loyalty programs more effectiveother than just couponcutters. If a game is designed well, there is always an achievable incentive: Its clear that you can win something, you can always get to the next level.
GRAHAM SMITH, social media moderator, Epix HD/Viacom
In education, some schools are experimenting with Quest to Learn, a gaming program that turns students into heroes on a quest, with the learning process as their journey. And some employers, including the U.S. military and Unilever, are applying gaming mechanics in the workplace. Deal Machine, for instance, uses game mechanics to motivate and reward corporate sales staffs: Sales managers set the rules and a real-time leader board provides analytics for management while letting players know who is winning.
With respect to earn-yearn-burn, loyalty programs today have a beginning and an end, but they have no middle. ... And thats where I think the yearning phase comes in. Theres all this opportunity in the middle to use game mechanics and other methods to drive actual true loyalty along the path to the burn.
RAJAT PAHARIA, founder and chief product officer, Bunchball
Laura Pfeifer
Gamification will also disrupt traditional loyalty program models, in which members accumulate points over time, usually in isolation of others. Gamification generally ties peoples performance to otherswell see that performance being captured in real time, driving a sense of urgency to act and an immediate feedback loop. Will users soon experience badge overload and game fatigue? Gabe Zichermann, co-author of Game-Based Marketing, believes thats at least five years away: Between now and 2014-15, its an absolute arms race to get as much positive, mechanistic stuff going on with gamification and brands. Brands that use game mechanics most successfully will allow users to define their own goals and provide multiple scenarios in which they can earn points and achieve rewards. Foursquare illustrates this principle with its gameswithin-a-game: badges, tips, mayorships and, with its newest business initiatives, taking the check-in beyond location to specific actions. But while technology will be a major driver here, well also see brands using analogue techniques as simple as smiley faces to inject gaming elements, too.
Marco Arment
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THOUGHT STARTERS How do you currently gauge loyalty? Could you make loyalty more competitive? How can you make it easier for people to track progress? Can you incorporate the results of ongoing competition in to a social platform? Can you broadcast participation among multiple channels? How can you apply gaming mechanics to marketing via engaging ideas, not simply branded games? How can you give consumers more feedback? Can you close the feedback loop? Are there everyday activities your brand could make more fun for consumers to drive desired behaviors?
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THE URGENCY . ECONOMY

Life in real time
The art of the deal
Recession fatigue
Global copycatting: Groupon and Gilt Groupe spawn clones worldwide
Social living
} }
As time-sensitive deals experience a renaissance among younger, hipper and more in the know shoppers, look for the act now strategy to extend beyond the Web, helping to nudge people back to their prerecessionary, spend-now-thinklater ways.
THE URGENCY ECONOMY
Deals expanding far and wide: Time-sensitive deals spreading geographically and vertically Hyper-local tailoring: Timesensitive deals focusing on neighborhoods where consumers shop The gaming element: A ticking clock is just one of various gaming elements being incorporated into retail experiences Eliminating the middleman: Strong retail brands launching their own Groupon- or Gilt-like deals Moving from virtual to real worlds: Retailers using The Urgency Economy to drive traffic in brick-andmortar stores
The Urgency Economy gives consumers permission to hurry through the consideration of making a purchase, since the offer will go awayoften buying where they might not have otherwise. While act now offers arent new, this approach is no longer seen as down-market or the sole domain of discountsany company now has the opportunity to use this strategy without cheapening the brand. And brands that may suffer from seeming commonplace or commoditized have the chance to gain some exclusivity by offering their products via limited-time offers that convey in crowd status to buyers.
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2. THE URGENCY ECONOMY
TREND As time-sensitive deals experience a renaissance among younger, hipper and more in the know shoppers, look for the act now strategy to extend beyond the Web, helping to nudge people back to their pre-recessionary, spend-now-thinklater ways. This is an outgrowth of our Life in Real Time trend from 2010, extending the whats happening now? mindset to include must do it now. DRIVERS
Life in real time: The real-time Web has resulted in a greater emphasis
on the immediate and the now, lending a greater sense of urgency to Internet-based behaviors. It has also helped fuel an expectation of instant gratification. With online shopping, we can get what we want when we want it. (And some companies, like Zappos, have made overnight shipping standard practice, while many e-tailers allow for local store pickup of purchases.) Increasingly, the mind-set is moving from I want that to I want that now.
Misti Layne
The art of the deal: We all love to brag about the deals weve gotten, but
during the recession, with conspicuous consumption frowned upon, this became the only type of consumption people could crow about. Eightythree percent of our survey respondents in the U.S. and U.K. said they tend to tell family and friends when they get a good deal on something. (See Figure 2; see Appendix for country breakdown.) Since todays timesensitive promotions give a sense of elite or premium status (particularly those sent to consumers who have opted in to receive them), theres even more to crow about.
What Im finding with Groupon is that people that didnt know that they needed a hot air balloon trip suddenly decided they did. And I think a lot of consumers are spending money that they wouldnt otherwise have spent.
Recession fatigue: Having exercised great restraint in spending over the past few years, consumers are looking
whether purposefully or unconsciouslyfor excuses or permission to spend on non-essentials again. The act now concept provides not only the thrill that bargain lovers seek but a sense of urgency that can help override more cautious instincts. A discount for a product you already use (or may have stopped using due to cutbacks) enhances the rationale.
Global copycatting: Groupon clones are everywhere. In the U.S., theyre becoming more targeted, whether through
specialized interests or more precise geo-targeting. Internationally, the model is spreading quickly through the BIC countries (Brazils Peixe Urbano signed up 1 million users in 5 months; 300 companies compete on the Groupon model in China), and Gilt Groupe imitators are cropping up in fashion-conscious quarters such as Dubai. (Though in many cases the two pioneers still command the market.)
Social living: Todays ever-connected lifestyle gives consumers a new and immediate outlet to receive and pass along
offers at speeds that were once inconceivable. Brands already use Facebook pages and Twitter feeds to communicate with loyal customers (many of whom sign on specifically to get inside info on promotions and deals), and these communications let consumers in on deals that move quickly (like JetBlues All-You-Can-Jet offers, the latest of which sold out in less than 36 hours).
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MANIFESTATIONS Deals expanding far and wide: Weve seen group buying move quickly from a recessionary sales tactic to a worldwide phenomenon. At the same time, were seeing a proliferation of flash-sale models extend across categories, from fashion and accessories (theOutnet.com, which calls its sales, Going, Going, Gone, and Gilt Groupe) to travel (TripAdvisors SniqueAway, which requires a decision within just 15 minutes) to food. Group buying and flash sales are now moving into lessobvious arenas, like GrOffr.coms group discounts for real estate in India, Hayneedles furniture and Hulafrogs kids birthday parties. Hyper-local tailoring: Though Groupon and its ilk could be considered the ultimate approach to localized marketing, competitors and copycats are getting even more targeted, using hyper-local approaches. Location-based media company Where.coms acquisition of Groupon clone LocalGinger to create location-based flash sales indicates that brands and media partners are looking for ways to reach consumers when theyre out and about with deals that must be acted on quickly.
The gaming element: Combined with another trend were spotlightingAll the Worlds a Game, which spotlights the rising emphasis on gaming mechanicsThe Urgency Economy heightens the sense of play for brands by adding a timer or time element to deals. For example: ToVieFor is a luxury-goods site that combines auctions with group pricing; the price starts off high, not lowthen automatically drops over time, in higher increments, as more people participate. Waiting to buy means risking that the product sells out. Eliminating the middleman: Groupon proved it had a viable national model when it partnered with Gap in August, but what did Gap get out of it? The retailer doesnt need brand recognition and already has an extensive customer database. Other retailers are realizing the obvious: They dont need the middleman. Major retail chains have started promoting limited-time offers online: in October, Limited Stores offered a 40 percent discount that lasted just eight hours; Bebe enticed shoppers with a 20 percent discount available for five hours; Talbots pushed a 30 percent, three-hour lunchtime deal; and Neiman Marcus proved an upscale retailer could do its own Gilt Groupe programs with a two-hour flash sale. Others will start doing the same, using their e-mail databases, Facebook fans and Twitter followers.
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Moving from virtual to real worlds: With todays always on constant communication, the possibilities to extend time-sensitive promotions from the virtual to the brick-and-mortar world are numerous. Gaps Facebook-promoted flash sale granted a discount to people who said a certain phrase (Flash40) at the register; HauteLook, a flash-sale site, partnered with The Body Shop on a deal driving its members to the beauty retailers locations. Indeed, HauteLook senior vice president of marketing Greg Bettinelli says that moving online programs to offline activation will be a focus for the company.
SIGNIFICANCE/RELEVANCE The Urgency Economy gives consumers permission to hurry through the consideration of making a purchase, since the offer will go away. For brands, this means consumers are buying where they might not have otherwise. Indeed, six in 10 of our survey respondents said that when they have a limited time to act on an offer for a product they use or want to try, they usually end up acting; Millennials are the most likely to act (7 in 10) and Boomers the least likely (5 in 10). (See Figure 2; see Appendix for country breakdown.)
FIGURE 2. THE ART OF THE DEAL

When I only have a limited time to act on an offer for a product I use or want to try, I usually end up acting
69 61 51
}
79 83
60%
When I get a good deal on something, I tend to tell my friends about it
86
83%
The speed is what gets people. Its like, Ive got to do it today or its gone. It promotes the trigger impulse, because I may not have been in that category at all, but its such a deal, Ive got to do it. Its unplanned shopping at its best.
GWEN MORRISON, CEO of the Americas and Australasia, WPPs The Store
While act now offers arent particularly newKmart with its Blue Light Special, home-shopping network QVC with its ticker counting down how many items have sold and how much time is left for a deal, and every infomercial with its act now offer or call-outthis approach is no longer seen as down-market. While few brands have historically wanted to be associated with such offers, in the post-recessionary economy, even higher-end brands (particularly fashion brands, which have experimented with online flash sales) are looking to goose sales by encouraging purchases during a limited time frame.
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Any company now has the opportunity to use this strategy without cheapening the brand. Even brands that may suffer from seeming commonplace or commoditized have the chance to gain some exclusivity by offering their products via limited-time offers that can convey in crowd status to the buyers. Ultimately, as HauteLooks Greg Bettinelli told eMarketer in November, This is a new distribution channel for brands to launch products, sell excess products and then to use them as an outlet to market more of certain styles. POTENTIAL Look for The Urgency Economy to extend beyond the Web to mobile and brick-andmortar stores and to expand to less-obvious categories, like real estate, cars and electronics. As location-based services and promotions such as those offered via Shopkick (which automatically checks people into businesses) get further developed and adopted, the urgency will become more contextual, personalized and based around current physical relationships to a brand or retailer. And brands will increasingly heighten interest and excitement by motivating people to show up at a physical location in a narrow time window. The food-truck concept could extend to roving retail outlets that motivate shoppers to turn out because their presence in any one location is brief. As the market for time-sensitive deals becomes more and more saturatedwith so many group-buying and flash-sale sites and services launching across categories and across the globelook for innovative models that differentiate one service from the next. That differentiation will come in several areas, including hyper-local offers, innovative pay models and narrowly targeted offers based on hobbies and interests. Also look for brands to launch more limited edition products or lines (think Targets masstige collaborations) that create their own sense of urgency because they tend to sell out quickly. THOUGHT STARTERS As time-sensitive deals become more prevalent across brands and categories, how can you differentiate yours from the rest? If appropriate for your brand, how can you keep an air of exclusivity, which helped drive popularity around these deals in the first place? How can you extend the act now ethos to your physical outlets or brick-and-mortar retail partners to drive immediate sales activity around your brand? How can you leverage your customer database to successfully launch more time-sensitive, personalized offers in a way that third parties cant and your competitors havent? If time-sensitive deals arent right for your brand, how can you layer in excitement or a sense of urgency to your brand message? In what contexts can your brand offer a time-sensitive message? In what contexts would it not be appropriate? How can you leverage mobile and location-based services in this context?
Misti Layne
Its tapped [consumers] sense of, Im so smart. Consumers sort of feel like theyre in the know, capitalizing on something that other people arent smart enough or savvy enough to know about.
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NON-COMMITMENT . CULTURE
Economic caution
Instant gratification
Collaborative Consumption
Eco-consciousness
Digitization
The paradox of choice
} }
NON-COMMITMENT CULTURE
Reluctant to commit to discretionary or big-ticket purchases, people are increasingly opting for choices that require a less-permanent commitment. Consumers will be more likely to rent goods, buy them one year and sell them the next, or share them with friends.
Temporary car ownership
Ikea Swedens secondhand site
Pop-up shops
Contracts for the commitment-shy
Delaying marriage
Brands that work within this non-commitment culture can help to enable the sharing/borrowing of their products or lower the commitment required to buy into their products and services. Alternatively, brands will need to provide enough incentives to counteract these leaningsby offering added value (e.g., cutting-edge technology, a more green product, customization options, a deal seen as too good to pass up, etc.), by helping to allay the risk around long-term commitments or by showing why long-term commitments can be worthy investments.
21
3. NON-COMMITMENT CULTURE
TREND Reluctant to commit to discretionary or big-ticket purchases, people are increasingly opting for choices that require a lesspermanent commitment. Consumers will be more likely to rent goods, buy them one year and sell them the next, or share them with friends.
I honestly think the idea of owning certain things and holding on to them while they just become dead objects with no in-built intelligence is going to seem like an obsolete idea. RACHEL BOTSMAN, co-author, Whats Mine Is Yours: The Rise of Collaborative Consumption
DRIVERS
Economic caution: The downturn resulted in a hesitancy to make long-term financial commitments (in homes, cars,
etc.). As unemployment and underemployment remain realities, consumers will retain this mind-set into the near future.
Instant gratification: Todays consumers are used to getting what they want when they want it, and in todays
accelerated culture, they want to be in on the latest hot thing. A non-commitment good is an attractive compromise between caution and impatiencetemporary ownership allows for instant gratification without having to spend all the money.
Collaborative Consumption: People are becoming accustomed to borrowing/renting goods instead of purchasing
them, from cars to blenders to handbags. Thanks to social networking and myriad specialized sites and services (from Zipcar to Rent the Runway), its become easier than ever to get what one wants or needs without having to commit to a full purchase.
Eco-consciousness: People are becoming increasingly

conscious of the impact of their everyday consumption on the environment. Owning or using fewer goods/resources or divvying up consumption with others is seen as helping the planet. A temporary experience for these consumers means making the earths resources longer-lasting.
Digitization: As goods become digitized or virtualized,

theres frequently less satisfaction in owning physical objects. For example, living rooms may no longer showcase books and CDs. Its not even necessary to own a digital track, as people grow accustomed to obtaining music from services like Pandora and Spotify. According to research firm BTIG, spending on rental kiosks like Netflix and Redbox rose 55 percent over the first three quarters of 2010, while brick-and-motar sales fell by about 31.4 percent in the same time period, year-over-
Collaborative Consumption itself is about how technology is taking us back or enabling very old market behaviors, like swapping and trading and bartering and lending, but theyre being reinvented in ways and on a scale thats never been possible before. In the same way that we used to be able to stand in a village square and shake hands and form trust face-to-face, were mimicking the same behaviors in the virtual world, because we now live in a global village, so to speak.
RACHEL BOTSMAN, co-author, Whats Mine Is Yours: The Rise of Collaborative Consumption
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year. This move away from traditional ownership is making consumers more open to the idea of transitory goods in their lives. and refurbishing products and services, consumers have been trained to expect newer, better versions of products to come along. In turn, theyre more skittish and less likely to be loyal as they become more comfortable with temporary alternatives. MANIFESTATIONS Temporary car ownership: Were seeing a rise in membership services that allow people to own mobility instead of cars, whether for financial, environmental or practical concerns (finding parking, dealing with expensive repairs). Theres Zipcar and many similar services worldwide; there are a growing number of peer-to-peer car-sharing services like RelayRides; and, with experiments like Car2go from Daimler and BMW on Demand, automotive companies are entering the space as well. Ikea Swedens secondhand site: Ikea Sweden provides an online platform for consumers to buy and sell secondhand Ikea furniture. The brand says its making an effort to be green and to inspire its consumers to follow suit. While this could clearly hurt new product sales, Ikea is arguably spotlighting its brand in a process that would likely have taken place regardless. And by immersing itself in non-commitment culture, the brand positions its furniture as durable enough for more than one owner. Pop-up shops: These temporary stores provide a way for brands to dial down their retail space commitments while offering refreshing and unexpected ways for consumers to engage with their products or services. Recent examples include Kelloggs Pop-Tarts in New Yorks Times Square and Herms pop-up in the Liberty store in London (the latter was so successful that two more pop-up locations appeared in the city). Many of these are even parties in their own right, with washing-machine company Indesit hosting a launderette-nightclub for two days.
Jordanhill School D & T Dept
The paradox of choice: With brands constantly updating
You can imagine a future where most vehicles that provide battery electric propulsion for urban usage can be owned by a carsharing company, a leasing company, a city, or a utility company. They might take the car away from the personal ownership we have today.
FRANK WEBER, vice president of corporate and product planning for General Motors European Opel unit, Financial Times, Alternatives: Mobile phone generation cools on cars, Oct. 1, 2010
shinya
Soctech
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Contracts for the commitment-shy: Brands have been creating ways to lure consumers by requiring fewer commitments or taking the risk out of commitment. In the U.S., where long-term cell-phone contracts are the norm, U.S. Cellulars Belief Project offers One-andDone contracts, which eliminate the need for a new contract once the initial two-year commitment expires. Moreover, a customer continues to get rewards, including faster phone upgrades, new ringtones and other accessories, for up to 18 months without a contract renewal. One promotional video explains that U.S. Cellular created the program because we noticed you dont like to feel trapped. Introduced during the recession, Hyundais Assurance guarantee addresses the commitment phobia linked to buying a car. Customers have up to one year to return their car if a life-changing event occurs, like the loss of a job. Other brands subsequently instituted similar programs, such as the Ford Advantage Plan and the GM Total Confidence plan.
High-end temporary tattoos: The latest it accessory both on the runway and in the beauty aislegives a non-commitment spin to an otherwise permanent choice. Chanel is tapping into the trend with limitededition skin art. Lower down the price scale, House of Deron offers a kit in partnership with Temptu; the promotional campaign features Beyonc. And in Dubai, non-commitment tats are even available in real gold.
Delaying marriage: The non-commitment mind-set stretches beyond consumption; one example can be found in global marriage trends. In the U.S., people are delaying marriage, in many cases living with their partners instead of committing more fully (the number of unmarried couples living together rose 13 percent in 2010 from the previous year). In India, young people are delaying marriage and dating around before settling down. Judging by the young people on reality shows like MTV Splitsvilla and Channel V Dare 2 Date, relationships have become more casual and impermanent in this emerging market.
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SIGNIFICANCE/RELEVANCE Brands that work within this non-commitment culture can help to enable the sharing/borrowing of their products or lower the commitment required to buy into their products and services. Alternatively, brands will need to provide enough incentives to counteract these leaningsby offering added value (cuttingedge technology, a more green product, customization options, a deal seen as too good to pass up, etc.), by helping to allay the risk around long-term commitments or by showing why long-term commitments can be worthy investments. POTENTIAL Brands that invite consumers to rent, share, lend/borrow or otherwise skirt full commitment are not necessarily jeopardizing sales. They are aligning themselves with a growing cultural phenomenon, and consumers may appreciate a brand that endorses a transitory relationshipand find comfort in knowing the purchase isnt necessarily forever. Importantly, NonCommitment Culture can help more consumers experience the brand, leading to more potential customers down the road: A driver whos had a positive experience with BMWs car-sharing service may consider the brand when hes ready to buy a car; an Avelle (formerly known as Bag Borrow or Steal) member, while borrowing luxury handbags and jewelry for a week or month at a time, might fall in love with one of her bags and decide to splurge on an actual purchase. Brands or categories, like travel, that specialize in experiences have the potential to leverage the trend by emphasizing the fleeting nature of objects and the memory-making of experiences. As consumers attachment to goods diminishes, however, they may feel some nostalgia for physical objectsbooks are being turned into decorative accessories, for example. We can also expect to see a countertrend: non-commitment remorse. Consumers will grow tired of jumping from brand to brand and will miss the sense of loyalty and stability. Brands that leverage the trend by riding against it can tout themselves as being one of the few that consumers will want in their lives for a long time. THOUGHT STARTERS What is the non-commitment value of your brand? What short-term value do your goods, services and tools offer? How can you enable sharing/borrowing with your products? How can you reward early adopters who commit to your product right away? How can you incentivize consumers to be early adopters? If your brand mostly deals with services (e.g., travel), how might it effectively leverage this Non-Commitment Culture? For example, how would you illustrate that a trips memories last longer than a big-ticket purchase that consumers could just rent or borrow anyway? How can you endorse the non-commitment mind-set without hurting new, fresh sales? What kind of incentives can your brand offer consumers to counter their non-commitment leanings? How can you market your products, tools and services as valuable and enduring, whether people will use them temporarily or not? How can you make your non-commitment good stand out from the rest in the category? What else can it bring to the consumer besides a temporary relationship?
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4.EAT, PRAY, TECH

Tech devices and services are increasingly central to our work, social lives and leisure time More tools and devices: Something for everyone Signaling: The latest tech (and ability to use it) carries cachet A faster cycle from early adoption to mainstream Tech empowers, so more low-income consumers are looking to jump in Aspiration diminishing overall, but tech still aspirational for many Consumers are more keen on experiencesand devices are a gateway
}}
If theres one category in which consumers are willing to commit, its technology. Worldwide, hightech devices and services (and the skills to use them) are fast becoming as integral to people as food and clothing. In an interconnected, tech-driven and -enabled marketplace, the latest technology will be more than just a luxury or a guilty pleasure.
EAT, PRAY, TECH
Sales are eating into other categories
Homeless, with an iPad: a symbol of tech as a basic need
Tablet taking off fast; rapid global mobile penetration
Millennials see tech upgrades as worth the cost
Today, Keeping up with the Joneses means Keeping up with the times technologically. Tech devices fill many needs from signaling status and savvy to serving as economic toolsand so can be readily (if not always convincingly) justified. As consumer priorities shift and technology transitions from a discretionary to a core possession, its eating into other categories. Brands will benefit from tech tie-ins, or they can alternatively leverage the countertrend.
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4. EAT, PRAY, TECH
TREND If theres one category in which consumers are willing to commit, its technology. Worldwide, high-tech devices and services (and the skills to use them) are fast becoming as integral to people as food and clothing. In an interconnected, tech-driven and -enabled marketplace, the latest technology will be more than just a luxury or a guilty pleasure.
Who needs to eat and buy more ties? I mean, come on, I have a great computer.
SPENCE WITTEN, 27, who told The Wall Street Journal in August that in the past year he had spent about $8,000 on new electronics, pushing needs such as a microwave, a professional wardrobe and home improvements down his list of priorities
DRIVERS
Tech devices and services are increasingly central to our

work, social lives and leisure time: As we said in our trends forecast for 2009, mobile devices are becoming Everything Hubs (combining business/personal/entertainment functions) for more and more consumers worldwide, and connectivity is increasingly essential to work and pleasure. Its not just phones, though: More people will need or want more gadgets, whether a tablet, laptop, desktop, e-reader, Internet-connected television, etc.
The longer-term trend continues to be that electronics are not a discretionary purchase. Theyre a necessity. And people spend on them like theyre a necessity.
STEPHEN BAKER, vice president of industry analysis for consumer technology, NPD
More tools and devices: Something for everyone: The proliferation of tools and devices is creating a sense of need or
want among more types of consumers. Bookish types may gravitate to e-readers, parents to smartphones that can keep kids preoccupied, salespeople to tablets that complement their pitches. The tablets touch screen, for example, has appeal to many cohorts, from older people who find it easier than a keyboard or pad to disabled users.
Signaling: The latest tech (and ability to use it) carries cachet: In India and
The iPhone 4 is becoming a craze for everyone! Its becoming more of a cool item rather than just being a cell phone itself.
Thai planner, JWT
other emerging markets, the class system is being reorganized, with technomavens sitting at the top; flaunting and mastering technology are the new signs of status. In developed markets, type and brand of technology can signal ones importance, cool/hip quotient, geek cred, etc.
A faster cycle from early adoption to mainstream: The lag from early-adopter
status to mass-market adoption is getting shorter and shorter, as we saw in 2010 with the iPad. Its not only that technology is increasingly important to consumersits also more important to retailers. And were hearing more about these devices via social media.
People dont understand technology but buy it for the status new technology gives them.
Indian planner, JWT
Tech empowers, so more low-income consumers are looking to jump in:

Connected devices open up worlds of possibilities, and people from rural India and Africa to struggling Americans are coming to understand that technology can help them survive and thrive. Were seeing retailers respondfor instance, Walmart has added New Hi-Tech Devices and More
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4. EAT, PRAY, TECH
Ways to Save For the Always-Connected Life, as a press release headline touted; the retailer is also selling iPads for the 2010 holidays.
Aspiration diminishing overall, but tech still aspirational for

many: Some may be declaring the death of the aspirational consumer, at least in the U.S., but the tech category still has strongly aspirational brands (e.g., Apple) and products (e.g., the latest Droid-enabled phone) worldwide.
Consumers are more keen on experiencesand devices are

a gateway: The recession accelerated a consumer trend toward valuing experiences over goods; a tech device or service, however, isnt simply a product but a tool that facilitates experiences of all kinds, from a video chat with a loved one to an adrenaline-charged game.
For most manufacturers, a growing field is low-income customers who may not have as many digital devices or any digital devices and recognize that they need those and are trying to figure out how they participate in digital without breaking the bank obviously one of the reasons Walmart has devoted a lot of attention over the last couple of years to electronics.
STEPHEN BAKER, vice president of industry analysis for consumer technology, NPD
MANIFESTATIONS Sales are eating into other categories: Data is starting to show that consumers are prioritizing tech over other goods. Commerce Department figures show that Americans spent 1.8 percent more on televisions, computers, and video and telephone equipment in the first half of 2010 compared with the first half of pre-recession 2007, while their spending dropped on appliances (by 3.6 percent) and furniture (by 11 percent), according to The Wall Street Journal. Some even posit that technology is one reason why fewer American Millennials are driving (and buying) cars. Many young consumers care more about new technologies, such as the latest phone, than about the latest car, noted MSNBC.com in an article on Millennials declining interest in driving. That may be for good reasonthanks to the Internet and social media, more people can connect with friends, work or even hand in schoolwork without ever leaving the house, potentially making them less dependent on cars but more dependent on gadgets. Homeless with an iPad: The story of a homeless-by-choice writer who owns an iPad and a netbook may be one-(or two)of-a-kind, but its an extreme version of something thats becoming increasingly true: Technology is evolving into a core needfor many, its as essential as food, clothing and shelter.
Theyre not just gadgets, theyre products through which we experience things that are very relevant to us, whether its watching a movie or having a conversation. You can compare them more to travel than to a watch or a piece of jewelry; theyre basically gateways to experiences.
MILTON F. PEDRAZA, founder and CEO, Luxury Institute
Im homeless, very homeless, dirt broke and all, but I still own an iPad and a MSI Wind u130 netbook. These, I feel, are essential tools. ... Being without a home is not that big a deal in todays world, but having connections to the rest of the world is pretty important.
Vagabond Paris, the Facebook name of a writer who described to Gizmodo.com why he prefers high tech to a home
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4. EAT, PRAY, TECH
Tablet taking off fast; rapid global mobile penetration: In 2010 we saw leading-edge consumers embrace a new category, the tablet, even before some were quite sure why they needed it. Gartner forecasts global sales of iPads and other tablets will reach 19.5 million units in 2010 and 54.8 million in 2011. Meanwhile, the world is getting connected: The UNs International Telecommunication Union estimates that mobile penetration will reach 78 percent by the end of 2010 (at 5.3 billion mobile subscriptions). IDC reports that global smartphone sales jumped by 90 percent year-over-year in the third quarter. Millennials see tech upgrades as worth the cost: According to our survey, more than half of British and American Millennials (57 percent) believe Technology upgrades are worth the higher price and 44 percent of Gen Xers. Close to half of Millennials and Gen Xers said they dont like being behind the curve when it comes to adopting the latest technologies. And nearly half of Millennials and a third of Gen Xers said people judge them by the type of technology they own. (See Figure 4; see Appendix for country and gender breakdown.)
FIGURE 4. TECHNOLOGY UPGRADES

57
Technology upgrades are worth the higher prices
44 34
People are more comfortable buying the latest mobile phone than better shoes or clothes or other comforts for the household.
Indian planner, JWT
I dont like being behind the curve when it comes to adopting the latest technologies
49 47 33 48
People judge me by the type of technology I have
33 14
byrion
29
4. EAT, PRAY, TECH
SIGNIFICANCE/RELEVANCE Today, Keeping up with the Joneses means Keeping up with the times technologically. Tech devices fill many needs from signaling status and savvy to serving as economic toolsand so can be readily (if not always convincingly) justified. As consumer priorities shift and technology transitions from a discretionary to a core possession, its eating into other categories. Its not that the designer-bag customer is trading down or buying another bag brand, its that shes sticking with her old bag and buying an iPad. In emerging markets, consumers are in some cases scrimping on staples so they can buy phones or upgrade their TVs. Brands will benefit from tech tie-ins, or they can alternatively leverage the countertrend.
POTENTIAL Innovative technology will have cachet in various categories beyond traditional electronics. For example, owners of RFIDconnected objects will have bragging rights. For brands with no high-tech angle, collaborations can open up opportunities. Teen retailer American Eagle Outfitters, for example, ran a promotion in which shoppers who tried on a pair of jeans got their choice of a free smartphone, albeit with some contractual obligations. Alternatively, brands can leverage the countertrend trenda rise in appreciation for hand-crafted goods, analog versions of high-tech instruments (e.g., letter-press-printed invitations, high-end pens and watches), and nostalgic/vintage goods.
THOUGHT STARTERS
If your category isnt technology, how can you make it tech-enabled? If you cant find a high-tech angle, are there relevant collaborations with high-tech brands that your brand can forge? How can you convey to the consumer that your category and brand can help satisfy basic needs and/or considerably improve their quality of life? What needs is your consumer ignoring if he/she is prioritizing technology over your brand/product? Can you tap into the countertrend and emphasize how far away from high-tech sophistication your brand is hand-made or old-timey/retro or tangible rather than virtual?
30
5. DE-TECHING
The 24-hour work cycle
Our smartphones, ourselves
An era of mindfulness
Languishing relationships
New research on the digitally addicted brain
Life in real time
} }
DE-TECHING
One of our Things to Watch from 2008, De-Teching is laddering up to a bigger trend. More people will choose to log offat least temporarilyor engage in one tech activity at a time in an effort to reengage in the offline present and/or to rewire their brains to be more effective.
The media takes up the cause (The New York Times Unplugged Challenge, The Washington Posts week-long digital fast; Nicholas Carrs book The Shallows) Offlining, in which people voluntarily abstain from digital media A Day Without Media, an informal study of media abstinence at the University of Maryland Devices themselves offer detox (Microsoft Windows Phone, Thai mobile phone company DTAC) Marketers emphasizing realworld connections (Nescaf, Diesel)
Brands that tap into the growing De-Teching undercurrent will be tapping a raw nerve. Consumers are tech-fatigued, stressed out and over-stimulated, but they are also afraid: Digital technology has created a seismic shift in how humans relate to each other, and people are afraid of losing touch with those they care about or missing out on realworld experiences. Brands whose core message exudes simplicity or human connection will find a well of opportunity in the De-Teching trend. But even tech-centric brands can acknowledge it, underscoring peoples increasing ambivalence about digital devices.
31
5. DE-TECHING
TREND As digital input infiltrates every corner of our lives, more people will be deciding to log off, at least temporarily. Where once we settled in with reading/viewing material or with friends for stretches of time, we now surf along multiple currents. We open our laptops while watching TV, we social-network while out with friends. Our talents for reading comprehension suffer, theres no time for self-reflection, and we only half-focus on relationships. Indeed, nearly half of American and British adults surveyed by JWT said they are frequently distracted from what they should be focusing on (work, family, friends, etc.) because of technology; Millennials and Gen Xers were much more likely than Boomers to say this (56 percent and 51 percent, respectively, versus 28 percent). (See Figure 5; see Appendix for country breakdown.) To correct these imbalances, people are choosing to De-Tech, shutting off the 24-hour news headlines, powering down devices and letting messages languish in order to focus on the offline present, if only for a few hours. More than half our survey respondents said they are trying to regularly disconnect so they can focus on non-technology experiences (see Figure 5). Some call it digital detox, others a digital fast, but De-Teching may not entail unplugging altogetherfor some it will mean simply a time-out from multitasking to focus on one (tech-enabled) activity at a time. One of our Things to Watch from 2008, De-Teching is laddering up to a bigger trend.
FIGURE 5. DE-TECHING
Sanjeev Chatterjee
Because of technology, I am frequently distracted from what I should be focusing on (my work, my family, my friends, etc.) I try to regularly disconnect from technology, so I can focus on other non-technology experiences Sometimes I feel like Im a slave to my technology
56 51 28
57 55 50 52 44 30
} } }
69 70 61
45% 54%
42%
I think I spend way too much time using technology I think its rude when someone checks their mobile phone when theyre talking to me in person I wish I could spend more time communicating with friends and family in person rather than through technology
48 33
}
84
50%
74 76
78%
More people are thinking about, What am I putting into my body and am I doing whats healthy? De-Teching is an extension of that trend. We need these tools to operate in the world weve created, but our use of them has become so habitual that weve become blind to our use. De-Teching is perhaps a way of trying to be alert to not only the need but the effects of their use.
57
63%
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5. DE-TECHING
DRIVERS
The 24-hour work cycle: We havent lived in a nine-to-five world for

some time. But today, our work demands constant attentionlatenight e-mails picked up on smartphones, early-morning Skyping with global partners, catching up on industry reports via mobile screens while on the goand there are fewer places beyond the reach of Wi-Fi or mobile reception. The good news is we have all day and night to get to it all; thats also the bad news. Increasingly, people are feeling like slaves to their technology (42 percent of our sample), especially the hyper-connected Millennials (more than half expressed this sentiment). Nearly 7 in 10 Millennials think they spend too much time using technology. (See Figure 5.)
Joanie Simon
What I think the net is doing is turning us all into chronic scatterbrains ... were losing our capacity for more attentive, deeper thinking.
Our smartphones, ourselves: Our phones have become our Everything Hub (providing access to e-mail, Internet,
music, movies, personal pictures and videos, not to mention all our apps)our portal to the world and the way we project ourselves into it. The world is always within reach, for better and sometimes for worse.
An era of mindfulness: Consumers have become very conscious of what they ingest, and they pay attention to the
chemicals in their cleaners, the gas in their cars and the packaging in which goods are wrapped. And increasingly, theyre looking more closely at what they put into their brains and how all the digital input is affecting their lives. Scaling back tech consumption gives them time to think it over.
Languishing relationships: Just one more e-mail, honey. Yeah, right. People who rely on technology for business
and pleasure often find themselves shutting out the people closest to them (even their children) or substituting digital relationships for real-world ones. People are becoming more aware of the personal toll that technology is taking: Nearly 8 in 10 of our survey respondents said they think its rude when someone checks their mobile phone when theyre talking to me in person. And 63 percent said they wish they could spend more time communicating with friends and family in person rather than through technology; Millennials (70 percent) were more apt to say this than Gen Xers (61 percent) or Boomers (57 percent). (See Figure 5.)
New research on the digitally addicted brain: More and more research suggests that when people busy their
minds with digital input, they give up the downtime they need to process all that information, come up with new ideas and simply relax. Digital devices are rewiring our brains, making us better at quick decision-making and superficial evaluationskills put to use when surfing search engine resultswhile our deep-thinking skills atrophy.
Life in real time: With so much to do and see online, our digital lives have become a never-ending list of to-dos, all
to be done immediately. Did you get my e-mail? Did you see my status update? Did you see that YouTube clip? Digital medias immediacy is giving our lives a get er done quality once reserved for worknow that tone is set for social and recreational fodder too. People are increasingly apt to feel there arent enough hours in the day to live life, reflect and relax.
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5. DE-TECHING
MANIFESTATIONS The media takes up the cause: In mid-2010, The New York Times challenged its readers to imagine life without your cell phone, your online social networks or e-mail. The newspaper asked volunteers to unplug temporarily and tell the paper about their experience. Among a selection of videos online, a tech magazine editor in Mexico City who had read her wedding vows straight from her iPhone said shed resolved to keep some distance from her phone. The paper also ran a series called Your Brain on Computers, drawing attention to research on how digital devices impact our minds. Meanwhile, The Washington Post challenged eight of its reporters to a week-long digital fast. Said editor Marc Fisher, It was old school, it was sweet, it was a moment. Then, like a fast, it was over.
If we never give ourselves the opportunity to turn off the distraction machine ... then we never tap into those deeper, more conceptual, more critical and often more creative thought processes that come from deep attentiveness.
Author Nicholas Carrs book The Shallows, which talks about how the Internet is reshaping our thought processes, got a lot of media attention and stirred debate. (Carr himself chose to De-Tech in a fairly radical way, moving from Bostons hyper-connected suburbs to a less-connected lifestyle in Colorado in an effort to focus on his book. Carr used the Internet to gather research but found he needed a quiet place to process it.) Offlining: People have begun voluntarily abstaining from digital media and in some cases initiating unplugging drives. A software program called Freedom allows users to block their Internet access for up to eight hours at a time. Arianna Huffington and Health magazine have issued an Unplug and Recharge Challenge, while ad men Mark DiMassimo and Eric Yaverbaum started Offlining, a campaign to persuade Americans to unplugfirst on Fathers Day 2010 and then on Yom Kippur and then on Thanksgiving. Jewish tastemaker Dan Rollman is behind the Sabbath Manifesto and the idea of a National Day of Unplugging every March; the organizations website even sells a cell phone sleeping bag, described as a way to resist the temptation of the distracting electronic glow of our cell phones and cameras.
Joanie Simon
Gabriel Rocha (a.k.a. BRIEL)
34
5. DE-TECHING
Quite a few students said their conversations with friends ... were qualitatively different because they didnt have their earbuds in. They got into longer conversations because they werent text messaging over dinner, and issues got discussed. They reminisced with their parents. ... They started up conversations with people at a bus stop. They commented on those elements, those personal, human connections. They did comment that there were elements of their personal interactions that were improved by being essentially forced to focus on the people they were with.
A Day Without Media: In 2010 the University of Maryland Journalism Department launched an informal study in which 200 students abstained from all mediadigital and analogfor 24 hours. The students reported withdrawal-like symptoms, including nausea, jitteriness and phantom ringing. The university is working with others in Europe, Asia, Africa and South America to conduct similar studies. So far, students worldwide have reported similar side effects.
Sanjeev Chatterjee
Devices themselves offer detox: Some marketers of tech devices and tools are already tapping into the trend by positioning themselves as ways to get you in and out and back to life, as a U.S. campaign for the Microsoft Windows Phone says. In Thailand, an ad for mobile phone company DTAC shows people too involved in their devices to engage with those around them, cautioning viewers that overuse of their devices could come between them and the people they love. The tagline: Disconnect to connect. A smartphone app from Altoids allows Facebookers to hone in on their favorite friends and Ignore the rest; the app is called Tune Out. Marketers emphasizing real-world connections: In early 2010, Nescaf launched a campaign in Australia for its instant coffee, encouraging people to Get a little closer. Spotlighting the difference between catching up online and face-to-face, Nescaf called on people to turn off the gadgets, turn on the kettle and enjoy a cup of coffee together. Diesel extended its Be Stupid campaign by declaring that Stupid is analog and hosting Facepark, a live event where participants created an analog version of Facebook, complete with a profile cutout.
Diesels Facepark website
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5. DE-TECHING
SIGNIFICANCE/RELEVANCE Brands, particularly tech brands, can continue to play up connectivity, social networking and all the benefits that make digital media so addictive; certainly, digital media helps us meet some basic needs. But brands that tap into the growing De-Teching undercurrent will be tapping a raw nerve. Consumers are tech-fatigued, stressed out and over-stimulated, but they are also afraid: Digital technology has created a seismic shift in how humans relate to each other, and people are afraid of losing touch with those they care about or missing out on real-world experiences. Brands whose core message exudes simplicity or human connection will find a well of opportunity in the De-Teching trend. But even tech-centric brands can acknowledge it: At least two (Microsoft and DTAC) have already done so with campaigns that underscore peoples increasing ambivalence about digital devices. POTENTIAL Some brands will cater to consumers desire to completely disconnect, while others will focus on using technology to simplify life and improve focus. Vacationers interested in digital detox will become less interested in whether luxury resorts are wired and more interested in getaways that offer isolation. More restaurants and entertainment venues will consider limiting Wi-Fi and digital device use in order to cultivate a warmer, less distracting experience. With consumers able to do so much online, face-to-face transactions will become more meaningful. Retailers and brands with telephone operations will benefit by improving customer service, especially since consumers who walk into a store or use the telephone may be doing so to avoid the online experience. (See our trend Retail as the Third Space on page 37 for more on this.) Businesses will continue to demand its employees be on 24-hour call, but enlightened bosses will create tech-time-outs at the beginning or middle of the day to enhance creativity and boost energy and productivity. THOUGHT STARTERS What products or services can you offer to help people step away from technology (at least temporarily), focus on the offline present, mono-task or connect with others in the real world? How can you add a more human, high-touch element to your brand, such as events? How can you position your brand as an oasis from digital noise without being anti-technology? How can your brand help to simplify or quiet peoples lives or bring people together face-to-face? If youre a technology brand, how can you emphasize the liberating rather than slavish qualities of technology? How can your brand tap into nostalgia for the pre-digital era? How can your brand help communicate the feeling of stepping away from our hyper-linked world? Since face-to-face transactions are becoming more important in the e-commerce age, how can you increase the quality of your in-person brand experience and service?
When we were packing to leave, I looked at the plastic bag of gadgets and gewgaws that I had brought, still sealed by a twist tie. When we got back to the world, they would all jump to life with their whirring and downloading, reconstructing and reiterating all I had missed. As we took the boat back to the mainland, I thought about what life would be like if I chucked them overboard. I resisted the urge, but when the time came and they roared to life, I boycotted for an hour or two. I knew without looking that the world had gotten along just fine without me.
The New York Times writer DAVID CARR, in a travel story about unplugging on a no-frills island vacation in the Bahamas, Nov. 4, 2010
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RETAIL AS THE . THIRD SPACE

The digitizing of merchandise and services
The 2011 consumer
Quality vs. quantity: people desiring experiences more than things
Millennials and Gen Xers, who are accustomed to multi-sensory experiences
Reconnecting: the need for face-to-face connections
Empty retail space
Need for in-person customer service
}}
RETAIL AS THE THIRD SPACE
Retail spaces will increasingly serve as a third space thats only partly about shopping. With more people buying online as well as downloading digital versions of physical goods (books, movies, video games, etc.), shopping is becoming as much about experiences, unique environments and customer service as it is about the merchandise.
Apple stores The evolution of Barnes & Noble Luxotticas Eye Hub concept stores Disneys Imagination Parks Levis workshops Ikea in China, where consumers consider a visit an outing
Banking beyond core services (Singapores OCBC Bank with its Sunday banking and family workshops; Tokyos Suruga Bank, with its library, bar and conference space) Experiential supermarkets (New Yorks Eataly and Chef Todd Englishs Plaza Food Hall)
As the retail experience becomes more automated and the windows of interaction with the tangible product and live customer service representatives become smaller, the in-store experience is increasingly paramount. In offering A-plus service and experienceseducation, entertainment, a place to relaxthat go beyond the typically transparent attempts at driving sales, retailers give consumers more reasons to enter their spaces and spend time with their brands and products.
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6. RETAIL AS THE THIRD SPACE
TREND Retail spaces will increasingly serve as a third space thats only partly about shopping. It will be as much about experiences, unique environments and customer service as it is about the merchandise. With more people buying online as well as downloading digital versions of physical goods (books, movies, video games, etc.), shopping will no longer focus on the hard sell but on providing something more fun, helpful, satisfying or distinctive than e-commerce can offer. DRIVERS
The digitizing of merchandise and services: Shoppers can find almost any
goods they need online. Increasingly, people are getting accustomed to buying products such as toys and consumer electronics online, while many readers and movie fans are downloading their media of choice (see Figure 6a). People can conduct much of their banking online; our survey found the Internet is the preferred banking method among respondents, with nearly six in 10 Americans and Britons saying they bank online via a computer alwaysor most of the time(see Figure 6b). Given that consumers rarely need to leave their homes, brick-and-mortar stores will have to work harder to justify their existence.
What we want to do is create some kind of vibrant space where people will want to go because they get the benefits of interacting with people and events. We also wanted to create a place that is convenient where people can get a lot of things done, so they dont have to go to other shopping areas. In that way, they wont mind if they have to pay a little more, because it will save them time.
FIGURE 6A. SHOPPING PREFERENCES

Percentage of American and British adults who prefer to buy the following online or in store
Prefer to Buy Online Prefer to Buy in Store
FIGURE 6B. BANKING PREFERENCES

Percentage of American and British adults who said they conduct their banking via the following means always or most of the time
44
Books
61
Online via a computer
40 36 31
63 54
59%
Movies
16
Online via a mobile phone
13 1
Movie Rentals
22 26
At a branch
}
28
10%
30 32 30 37
At an ATM/Cashpoint
Toys
21
Consumer Electronics
35 56
32 16
} }
31%
25% 38
The 2011 consumer: How people are
FIGURE 6C. THE RETAIL EXPERIENCE (U.S.)

Gen Xers (33-45) Boomers (46-64)
Percentage of American adults who agree spending money, and what they are spending it on, is changing. PostMillennials (18-32) recession, consumers are still watching their expenses and doing more browsing I like when stores offer than buying. And wealthier consumers are something a little extra that is different from their day-to-day scaling back in various ways. This means service, like a special event, retailers will still need to work harder. speaker, or entertainment
79 86 62 73 51
}
67%
76%
Quality vs. quantity: The recession has

helped to make people more discriminating in their consumption. Retailers offering extra-attentive service, an unusual selection or an interesting experience will better be able to compete for the retrained shoppers patronage.
If the stores I like held special events (classes, entertainment, a speaker series, etc.), I would likely check them out I like to interact with products before I buy them rather than buying from a catalog or the Internet with no prior interaction
76
}
85 87
Millennials and Gen Xers: Moving

parts, pictures, soundmulti-sensory, multi-screen experiences are normal for these cohorts, as is shopping online and digital downloads. According to our survey, 86 percent of Gen Xers and 79 percent of Millennials in the U.S. said they like when stores offer something a little extra, such as entertainment; in the U.K., 69 percent of Millennials and 63 percent of Gen Xers agreed with that statement. (See Figures 6c and 6d.) Retailers need more than traditional displays of merchandise to get these groups into brick-and-mortar stores.
74
82%
FIGURE 6D. THE RETAIL EXPERIENCE (U.K.)

Percentage of British adults who agree
I like when stores offer something a little extra that is different from their day-to-day service, like a special event, speaker, or entertainment If the stores I like held special events (classes, entertainment, a speaker series, etc.), I would likely check them out I like to interact with products before I buy them rather than buying from a catalog or the Internet with no prior interaction
69 63 56 60 55 49
Reconnecting: While consumers can

get most everything they need online, including support, service and merchandise, they still have a need to connect face-to-faceto see and be seen, to trade suggestions and advice. Indeed, the digital era is a key reason why consumers will seek out the more unusual or satisfying real-world experience. The physical environment can be a robust complement to the digital one, serving a purpose whether a purchase is made on the spot or not.
70 66 67
} } }
63%
55%
68%
The typical consumer is always looking for a friendly place. You know, were deprived. Families have gotten smaller and homes have gotten bigger, and weve got giant TV screens, and we dont leave our homes.
RAY OLDENBURG, professor emeritus, University of West Florida; author, The Great Good Place
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Empty retail space: The empty retail space thats resulted from the Need for in-person customer service: Time-crunched shoppers are faced
with often overwhelming choices (or often confusing choices, in the case of electronics), making customer service increasingly important. Yet hands-on testing, side-by-side comparisons of merchandise and a friendly salesperson to demonstrate an items features can go a long way toward making a customer feel comfortable with a purchase. More than 8 in 10 American adults told us they like to interact with products before they buy them rather than buying from a catalog or the Internet with no interaction; 68 percent of Britons said the same. (See Figures 6c and 6d.) And according to a McKinsey report, as many as 40 percent of customers remain open to persuasion once they enter a store, despite conducting extensive online research beforehand. MANIFESTATIONS Apple stores: In Q4 2010, Apple said its stores got a record number of visitors: 75 million came into its 300-plus stores around the world. The stores offer plenty of products to touch, test and play with, along with a large, welltrained staff; visitors can also attend free talks on how to use Apple products or entertainment events, or get help at the Genius Bar. Microsoft has also created retail experiences around its brand, with appointment-only Answer Desks, classes, events and one-on-one help sessions.
Ian Pearson
recession is forcing developers to consider ideas that go beyond retail and to be open to creative solutions to keeping existing retail spaces vital while encouraging foot traffic.
Its not just going shopping with a friend. You need to establish your degree of trust if you are buying a product. The care economy is very strong in this area.
IAN PEARSON, futurologist, Futurizon
Customer service is about going beyond, doing the unexpected. Ive always been impressed with Apples level of service. And you can see how it pays off because, in this economy, how many people are standing outside in a line for hours waiting to get an iPhone?
GWEN MORRISON, CEO of the Americas and Australasia, WPPs The Store
laffy4k
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The evolution of Barnes & Noble: Like many bookstores, Barnes & Noble is suffering as consumers shop online and e-readers render the need to go to a bookstore obsolete. While B&N is closing some stores, the remaining ones serve as gathering places for people who, the company notes in its annual report, enjoy coming into the stores, sitting in the cafes, connecting to the free Wi-Fi, browsing the contents of eBooks and downloading free exclusive content from bestselling authors and special promotions. Testing out e-readers in-store is also an incentive for shoppers, as are B&N digital programs such as Read in Store, which allows store visitors who own a Nook e-reader to read free downloaded books for up to an hour a day, download exclusive content and receive special offers. Luxotticas concept stores: Italian eyewear company Luxottica has created concept stores called Eye Hub that combine elements of online shopping and social networking: Touch screens allow customers to see themselves in various frames and take photos, and according to The New York Times, they eventually will be able to upload those images to social networks to get friends advice. Machines that simulate wind and glare conditions help shoppers choose eyeglasses for extreme conditions. The first store opened in Melbourne in 2010.
Disneys Imagination Parks: With help from Apples retailing team, Disney is rebranding its stores as Imagination Parks. Visitors can customize purchases, play in a child-sized castle and select and view movie clips. The first store opened in 2010 in Montebello, Calif., followed by a two-story flagship store in New Yorks Times Square. Levis workshops: Levis brand message has been focused on good oldfashioned American craftsmanship. To help bring that idea to life, the brand is sponsoring workshops at pop-up storefronts, designed to inspire consumers to create, collaborate and try something new. A print workshop took place in San Francisco in mid-2010, and a photo workshop was held in New York in the fall. Concerts, speakers and demonstrations were part of the experience. While some clothing was sold, employees were focused on helping customers create rather than try on merchandise.
Luxottica
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Ikea in China: Chinese consumers consider a visit to an Ikea store an outingand in many cases people spend more time napping in displayed beds than considering a purchase. I like the environment, one woman told Bloomberg Businessweek. It makes you feel like you are abroad. But Ikea doesnt mind that its simply a third space to many. With consumer income growing rapidly, the brand is engendering loyalty and providing aspirational ideas for a future when wages increase. Banking beyond core services: As more customers go online to bank, financial institutions are beginning to offer more than just the traditional checking, savings, loan and credit card services. Singapores OCBC Bank has Sunday Banking at many branches, with family workshops offering activities such as making a lantern for the Mid-Autumn Festival. A regional Japanese bank invites office workers into a lounge-like space called the d-labo, for dream laboratory, in one of Tokyos biggest towers. Alongside ATMs, Suruga Bank offers a library of 1,500-plus books, a bar, a conference space and a huge screen featuring an interactive display of users dreams. The space provides relaxation for office workers while letting potential clients learn about its services. Experiential supermarkets: One example of a supermarket adding third space experiences is Frys Food Stores in Arizona, whose Signature Marketplace now has a cooking school, cupcake bar, on-site car wash and other features that encourage linger-and-explore behavior. And new gourmet mega-food courts like Eataly and Chef Todd Englishs Plaza Food Hall in New York are adding dramatic showmanship to the retail food experience.
SIGNIFICANCE/RELEVANCE As the retail experience becomes more automated and the windows of interaction with the tangible product and live customer service representatives become smaller, the in-store experience is increasingly paramount. In offering A-plus service and experienceseducation, entertainment, a place to relaxthat go beyond the typically transparent attempts at driving sales, retailers give consumers more reasons to enter their spaces and spend time with their brands and products. In this context, an experience can include getting advice, talking about or testing a product, connecting with customers or staff over a shared interest, or receiving a service of some kind. These all serve to reinforce the brand.
mrsdewinter
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POTENTIAL Retailers can bring more consumers into brick-and-mortar shops and services with custom offerings in a unique environment while providing service people cant receive online. The most appealing spaces will exploit whats lacking in the digital experience: a truly three-dimensional tangible experience, where people interact with products and other people in ways they cant do in quite the same way online. With additions such as informational kiosks, displays, video for entertainment and chat spaces, retailers can draw in and engage consumers. The challenge will be to creatively rethink spaces, turning them into places where customers can test merchandise, interact with kiosks and video, utilize augmented reality to enhance the experience, use mobile-location technology to get customized service, or just enjoy a drink or a meal. Another challenge will be to provide knowledgeable and helpful staff who can make the trip to the store worthwhile, offering the kind of quality face-to-face interaction people cant get via e-commerce. THOUGHT STARTERS
Coming out of the recession, these stores will have a lot of skills in survival: they will have very efficient systems, so they can afford to offer a lot of extra experience. Retailers should be building up a customer relationship even if they arent directly selling something. Youre priming the future sales, building goodwill, and that doesnt cost very much to do.
IAN PEARSON, futurologist, Futurizon
In what areas do your customers trust you implicitly? How can you leverage those areas to offer your expertise? Beyond what you offer customers with services or merchandise, what can you offer as an added benefit? A place to relax, congregate, enjoy food and drink? What technologies will engage consumers? How can you exploit this technology to bring in foot traffic? What can you offer your customers that they cannot get from online services? What service can you provide that entices them into a brickand-mortar store? How can you translate your brand message to an experience or a service that is a natural extension of the brand? How will customers be accessing the majority of your goods and services in the next five yearsonline or in retail spaces? Does that mean you will be expanding or contracting in your use of retail space? How will that determine what your physical spaces look like and what services/merchandise you will offer in those spaces?
Ian Pearson
[A retail development] clearly has to make money. Otherwise, it never works. But its got to be positive; it cant be predatory. It should be a positive for the community. I think that, in the long run, if you do it that way, its going to have a lot staying power.
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CREATIVE . URBAN RENEWAL

Fastest urban boom in history
Government stagnation and lack of funding
Empty retail space
Environmental concerns
DIY ethic
We vs. me mind-set
} }
CREATIVE URBAN RENEWAL
Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewalimproving local environments, adding beauty or helping to bring communities together.
Creativity bubbling up: Socalled urban hackers, artists, environmentalists challenging the status quo by re-creating spaces Techie Urbanites leveraging data (Roadify, SeeClickFix) Brands partnering with municipalities to improve infrastructure (KFC, Apple, Kia) Giving new life to dead space (ABSOLUT, Wasted Spaces, Levis)
Levis donations to a Rust Belt town
Brands are an integral component of the urban environment. Beyond the urban renewal CSR projects many are already involved in, brands can show their creativity, innovative spirit and community-mindedness by tapping into the urban hack mind-set.
44
7. CREATIVE URBAN RENEWAL
TREND Improving human environments will become a higher priority as the global population gets more urbanized and cities boom. With people embracing the possibilities of collective action and many governments strapped for cash, well see a flourishing of grassroots and private-sector initiatives aimed at improving local environments, adding beauty or helping to bring communities together. DRIVERS
Fastest urban boom in history: With cities booming, theres never been a
more pressing need to rethink urban centers. In the developing world, people are drawn to new opportunities in urban centers. According to research by UN-HABITAT, cities in developing nations are adding an average of 5 million people per month. In Asia, Foreign Policy estimates that about half the population (1 billion people) will migrate from the countryside to urban centers by 2030. Meanwhile, the U.S. is seeing bright flight, with younger, educated Americans reversing the trend among their parents and grandparents to leave the cities for suburbs; among first-time home buyers, 77 percent say they want to live in urban areas.
David Belt
Government stagnation and lack of funding: Despite government

stimulus funds earmarked for infrastructure, many officials cite lack of money as a key barrier to infrastructure investment. The private sector can help improve the speed and effectiveness of government projects to upgrade infrastructure. Governments in emerging markets have plans to have private companies take a larger role, according to Kate Moore, co-author of a Bank of America Merrill Lynch study on investing in emerging market infrastructure.
Empty retail space: As so many chains have declared bankruptcy and

closed stores, excess retail space has forced developers to consider repurposing space for activities other than shopping. Developers are recognizing the importance of utilizing these spaces, which, if done correctly, can encourage foot traffic and maintain the vitality of urban areas.
Environmental concerns: Public awareness surrounding environmental

degradation is leading many to rethink urban spaces in light of green concerns.
DIY ethic: People are losing faith in big institutions and governments,
becoming more motivated to implement their own, often unorthodox ideas for change.
The whole idea of dead retail space is pretty prevalent in the downturn. Artists used to go in and take over warehouse spaces. Now warehouse spacesat least in citiesare often expensive. So maybe the next move is to take over some of these huge areas of strip malls that are so inexpensive or dead malls and create art studios. I think people would love to take some of these spaces and turn them on their heads. A lot of what happens in art these days is about appropriation, so if there was a way to rethink junk space and let the community use that, without too much money or intervention, [brands] could create an interesting place for [people] to go thats sort of the anti-mall.
We vs. me mind-set: A growth of belief in collectively driven positive

change, both among professionals (designers and architects, developers, urban planners, etc.) and everyday folks driven to better their environs.
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MANIFESTATIONS
Creativity bubbling up: So-called urban hackers, artists, environmentalists and nonprofits have traditionally dominated this movement, challenging the status quo by re-creating spaces. Often, the ideas involve simple ways to beautify spaces. In New York, ArtBridge, a nonprofit public arts organization, is working to turn overhead construction scaffolding into showcases for emerging local artists. Guerilla Gardening is a U.K.-based group with the motto Lets fight the filth with forks and flowers! and says its for anyone interested in the war against neglect and scarcity of public space. The movement is picking up adherents in the U.S. In Los Angeles, Greenaid, a grassroots environmental campaign, makes candy machines loaded with seedbombs for people to toss into unused plots of land. Macro Sea, a development company, is bridging the gap between the creative grassroots and the private-sector approach, utilizing materials (oftentimes junk) and space in unexpected and visceral ways. One project turned Park Avenue in midtown Manhattan into a lo-fi country club that featured dumpster swimming pools, cabanas, bocce ball and barbecues, for example.
Antonia Wagner
mathiasbaert
46
In the wake of Detroits decline, a wave of artists have hijacked the city, turning it into a center of urban and artistic experimentation. The Imagination Station, a nonprofit group of artists and designers, aims to reclaim ruined properties, creating community centers and public art spaces. Loveland is a micro real estate and entertainment fundraising startup, with inchvestors from around the world invited to buy a square inch of property in Detroit; an online community then decides what should be done with the physical space. The project aims to provide a fun, game-like ownership experience while creating entertainment fundraising, community collaboration, and social mapping tools that work at any scale. In Latin America, European artists Haas&Hahn have been beautifying Brazilian slums through the Favela Painting project since 2005. The organization behind this, Firmeza Foundation, supports the creation of striking artworks in unexpected places. It collaborates with local people to use art as a tool to inspire, create beauty, combat prejudice and attract attention.
I believe this massive amount of data thats being generated can be used to better design cities, to build better disease surveillance models, to do things that ultimately are going to improve the lives of billions of people.
NATHAN EAGLE, founder and CEO, txteagle
Techie urbanites leveraging data: Empowered by technology, urbanites are setting out to improve real-time access to information, often bypassing city agencies, by making data mobile, collaborative and social. SeeClickFix allows anyone to report and track non-emergency issues such as downed trees, broken streetlights and potholes anywhere in the world. Give a Minute is a similar venture in Chicago with plans to expand to three other U.S. cities; akin to a virtual community board, it provides a platform for people to share ideas on improving their city with community leaders, who respond to the best submissions. Roadify is an SMS-based servicecurrently operating in parts of Brooklynthat compiles user-generated data to provide real-time status updates on parking spots and public transit.
MIT
Brands partnering with municipalities to improve infrastructure: KFC undertook initiatives in South Africa and the U.S. to improve city roads in the absence of government funding, donating money to help fill some of the potholes in and around Johannesburg and sponsoring pothole and road repairs in five U.S. cities; the repairs were stamped Re-Freshed by KFC with a non-permanent stencil. Before opening a Chicago store, Apple spent $4 million renovating a nearby transit station that was in terrible condition; it now has a new faade and park-like plaza, with Apple granted advertising rights.
BizCommunity.com
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In Canada, Kia built its Drive Change campaign around renewal projects, with spots showing Kia teams making over two rundown spaces each in the course of a day. Taking a cue from nonprofits such as Publicolor and Favela Painting, Dulux Paints embarked on the Lets Colour Project in March 2010, supplying material and organizing communities in Brazil, France, the U.K., South Africa, Turkey, India and Netherlands to help paint schools, homes and public spaces. Some efforts focus on simply generating ideas and bringing people together. BMW has teamed up with the Guggenheim Foundation to build a lab that, starting in mid-2011, will spend six years traveling through nine cities worldwide, serving as a public place for research, experimentation, and the sharing of ideas about major issues affecting urban life. Giving new life to dead space: The ABSOLUT Stairwell Gallery in Sydney was created as part of the Dead Space Living Artists initiative, which converts neglected spaces into culture pockets; each month a staircase leading up to a popular bar displays works from emerging artists. Wasted Spaces is a London-based nonprot that transforms vacant properties and other unloved [oftentimes retail] spaces into exciting art experiences, placing smiley-face graphics on an abandoned storefront, for instance, and creating a public art installation that utilizes commands from Twitter users to power an interactive image projected onto a wall. The organization also held an open call for ideas of intermediary uses for an abandoned shopping center.
Just to put [your brands] name on a banner isnt so interesting, but to take a leadership role where theyre raising money for a community garden or where theyre providing a creative space for people to interact withthats pretty empowering because it gives people the tools. I feel [brands] dont have to accommodate that many people in order to have a tremendous impact and influence and get a pretty big bang for their buck, because if they have the right people in there the word really gets out and the ripple effect is felt.
David Belt
Levis donations to a Rust Belt town: Braddock, Pennsylvaniaa town hurt by the decline of jobs for the skilled blue-collar workerhas become the beneficiary of Levis creative urban renewal project. In addition to showcasing Braddock locals in its national Go Forth campaign, Levis has agreed to fund the refurbishment of the Braddock community center and to support the local urban farm that provides inexpensive produce to residents.
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SIGNIFICANCE/RELEVANCE Brands will be key partners in enabling creative strategies for renewal, taking local CSR initiatives to the next level. Brands can show their creativity, innovative spirit and communitymindedness by tapping into the urban hack mind-set. POTENTIAL At a time when CSR and more traditional marketing efforts are meshing (think Pepsis Refresh), creative urban renewal projects present ways for brands to both help communities/ neighborhoods and craft an image as innovative, original and cool. These projects tend to be sustainable, fun, educational and interactive, key areas/attributes for brands. With todays we vs. me mind-set and DIY ethos, there is ample opportunity for brands to partner with professionals, residents and nonprofits to back innovative ideas and solutions. By creating opportunities for people to become active participants in the revitalization of a space, brands can further create goodwill by giving citizens a sense of ownership over the project and pride in their achievements. The efforts must be substantial: This movement has roots in anticonsumerist notions, and skeptical consumers will quickly smell empty gestures. THOUGHT STARTERS
Unfortunately, were still in the phase of insincerity. The next evolution of this is when some of those companies actually say, Look, we need to do this because it makes great business sense for us, because it creates a meaningful environment in which to be employed. The more we push on creating change and improving quality of life for people through what we do best, which is technologies and business models and investments, the more comes to us. And the more that comes to us, the more we can reinvest. And it creates an acceleration of not only our business ethic and our business model, and our business, but also it starts to have real tangible, measurable impacts on people.
STEVE LEWIS, CEO and co-founder, Living PlanIT
How can your brand take charge on local community initiatives and spearhead urban renewal projects? How can your brand leverage urban junk space in innovative ways? What roles can the private sector play in infrastructure renewal and development? Is there a way to develop interim uses? How can your brand partner with city agencies, nonprofits and grassroots projects to improve infrastructure, start a movement, etc.? How can your brand provide the tools for citizens to participate in renewal efforts? How can your brand use its resources and reach to side with citizens and spur government action? How can your brand fuel long-term investment in community spaces beyond one-off CSR campaigns?
Living PlanIT
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WORLDS . COLLIDING
More tech tools and apps that integrate the virtual and physical
Digital natives/ digital ingrained
Rapid mobile penetration
The growth in Internetenabled objects
}}
The borders between the online world and the physical world are becoming increasingly fuzzy. Mobile gadgets are bridging the two worlds, and all kinds of objects/devices are becoming Internet-enabled. So not only will we have a multitude of connected gadgets, but objects like fridges or even dog collars will connect to the Internet. The latter is often referred to as the Internet of Things.
WORLDS COLLIDING
Attaching digital content to physical objects via tools like Stickybits and Tales of Things Mobile phones as remote controls or keys Tweetjects (objects that tweet) QR codes let brands add digital to the physical Billboards that profile passers-by Augmented reality adds digital information to physical products The real-life Like (The Like Machine at the Coca-Cola Village in Israel)
While marketers are still mastering the art of integrating digital (and especially social) with traditional media, they now need to better integrate their digital efforts into the physical world. Their messages should holistically and seamlessly bridge platforms and worlds. Successfully doing so will increase consumer engagement and more closely mirror consumer behavior and mind-set going forward.
50
8. WORLDS COLLIDING
TREND The borders between the online world and the physical world are becoming increasingly fuzzy. Mobile gadgets are bridging the two worlds (the Web accompanies you and helps you navigate the physical realm), and all kinds of objects/devices are becoming Internet-enabled. So not only will we have a multitude of connected gadgets (from e-readers to phones to televisions), but objects like fridges or even dog collars will connect to the Internet (alerting us that we need certain groceries or that Rover has strayed beyond the basement, for example). The latter is often referred to as the Internet of Things. But before we reach that point, consumers will see all kinds of solutions and applications that attempt to merge the online and physical worldssome of them hits, others misses but all leading to what many see as a revolutionary change. DRIVERS
After the World Wide Web (the 1990s) and the mobile Internet (the 2000s), we are now heading to the third and potentially most disruptive phase of the Internet revolutionthe Internet of Things. The Internet of Things links the objects of the real world with the virtual world, thus enabling anytime, anyplace connectivity for anything and not only for anyone.
GRALD SANTUCCI, head of Enterprise Networking and RFID at the European Commission, The Internet of Things: Between the Revolution of the Internet and the Metamorphosis of Objects
More tech tools and apps that integrate virtual and physical: Augmented reality tools overlay digital information or
imagery onto the real world. QR (Quick Response) codesmatrix barcodes readable by QR scanners, mobile phones with a camera, and smartphonescan store text, URLs and other data.
Digital natives/digital ingrained: For the youngest generation(s), the Web is a goes-without-saying part of life thats
automatically configured into ones real lifeeven the idea of a real life apart from a digital world indicates a nonnatives way of thinking. For the rest of us, digital habits are losing their novelty and becoming more ingrained into our everyday lives.
Rapid mobile penetration: The UNs International Telecommunication Union estimates that mobile penetration
globally will reach 78 percent by the end of 2010 (at 5.3 billion mobile subscriptions). And IDC reports that global smartphone sales jumped by 90 percent year-over-year in the third quarter, while Gartner forecasts that global sales of iPads and other tablets will reach 54.8 million units in 2011.
The growth in Internet-enabled objects: While there are a wide range of estimates around the Internet of Things,
earlier this year, Cisco CTO Padmasree Warrior estimated that by 2013, the number of devices connected to the Internet will reach 1 trillion, up from 500 million in 2007. In addition to Cisco, a slew of companiesfrom IBM, Intel and Motorola to AT&T, Fujitsu and Siemensand governments are investing in the Internet of Things. The International Telecommunication Union cites three pivotal enablers of the Internet of Things: RFID technology, which uses radio waves to identify items; sensors that have the ability to collect data and detect changes in the physical status of things; and advances in miniaturization and nanotechnologymeaning that smaller and smaller things will have the ability to interact and connect.
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8. WORLDS COLLIDING
MANIFESTATIONS Attaching digital content to physical objects: Stickybits turns products into user-generated content channels, enabling threaded conversations around objects. By scanning a barcode, people can use Stickybits to attach digital content (videos, links, audio, text) to a real-world object, view the bits others have attached and publish activity to online profiles. Barcodes can be custom-printed for objects that dont carry them. Though brands cant control what kind of content is attached, a toolkit allows brands to attach official content to their products, monitor product scans and connect directly with consumers who check in to their product.
www.pepsico.com
Similarly, Tales of Things promises to connect anything with media, anywhere. Via a small printable QR code tag, people can link any object directly to a video memory or an article of text describing its history or background. Mobile phones as remote controls or keys:
Control your car: AutoBota device from Mavizon Technologies set to launch in closed beta at CES in January
2011enables a smartphone to lock and unlock car doors, control window settings, help forgetful drivers find their car and provide security features (if the cars airbags deploy, for instance, AutoBot can automatically text-message the drivers GPS location to 911 and family members). It also acts as a diagnostic tool, alerting drivers when they need an oil change or tires rotated. Collision Watch is an app that sets off an alarm on a drivers phone after a collision. If the user doesnt disable the alarm in three minutes, primary contacts are alerted by text, followed by secondary contacts; if neither respond, emergency services are notified of the vehicles location, along with estimates of the speed and severity of the collision impact. Car-sharing outfit Zipcar provides an app that allows people to lock and unlock doors using an iPhone.
Mavizon Technologies
Open your hotel room door: Two Holiday Inn locations in the U.S. and a Clarion Hotel in Stockholm are piloting
programs that use mobile phones as room keys, enabling customers to bypass the front desk. At the Holiday Inn properties, guests with certain smartphones can opt in to get a text message on their arrival day that includes their room number and a secure link that can be used to unlock the door. At the Clarion, instead of room keys, select guests receive phones equipped with Near Field Communications technology. Tweetjects (objects that tweet): Twettle is a Wi-Fi-enabled kettle that tweets when the water has boiled; the appliance, the brainchild of two British designers, is not on the mass market yet. Botanicalls is a system that monitors the moisture level of plants, tweeting when they need to be watered.
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8. WORLDS COLLIDING
QR codes let brands add digital to the physical: Generally QR codes have been featured on outdoor or print ads to lead consumers to more information, but increasingly more creative possibilities are appearing. Last summer, Calvin Klein replaced its usually racy images on billboards in New York and Los Angeles with bright red QR codes under the line Get It Uncensored. Reading the codes with a mobile phone took the user to an uncensored 40-second jeans commercial featuring model Lara Stone. After watching the spot, viewers could share the code with their Facebook and Twitter networks. Russian energy beverage Red Energy sponsored a mobile QR-code-driven scavenger hunt in Moscow last summer. It kicked off at a busy subway stop, where a player could scan a QR code with a phone, then answer a riddle, which led to another QR code hidden somewhere in the city; the first player to crack seven codes won a prize. Billboards that profile passers-by: Japanese retailers have started experimenting with digital billboards from NEC that tailor their displays by using facial recognition technology to identify the age and sex of pedestrians. IBM researchers in the U.K. are developing billboards that rely on RFID chips built into consumers credit cards and mobile phones: As POPSCI explains it, A sensor on the billboard picks up on that RFID signal as the cardholder passes by, tapping information like name, age, gender, shopping habits, and personal preferences. Augmented reality adds digital information to physical products: One example from Ben & Jerrys: An app from the brand plays off a campaign called Its whats inside that counts with an augmented reality feature that gives the inside scoop (so to speak) on how ingredients are sourced when users hold an iPhone over the lids of various cartons.
itunes.apple.com
Calvin Klein
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8. WORLDS COLLIDING
The real-life Like: This summer, Coca-Cola brought The Like Machine to the Coca-Cola Village in Israel. Each teen at the village received an RFID-enabled bracelet they could use to transmit information to their Facebook page. Like the pool? Scan the bracelet on a poolside RFID device and a like would automatically appear on the persons Faceboook wall. The RFID devices also allowed for real-time uploads of pictures, with the guests already tagged. This created a real-time sharing experience that bridged the virtual and real worlds. SIGNIFICANCE/RELEVANCE Some of the early examples of brands trying to make physical objects digital may have seemed clumsy, too much work for the consumer, suited only for early adopters or pure novelty (Nabaztag, anyone?). But while marketers are still mastering the art of integrating digital (and especially social) with traditional media, they now need to better integrate their digital efforts into the physical world. Their messages should holistically and seamlessly bridge platforms and worlds. Successfully doing so will increase consumer engagement and more closely mirror consumer behavior and mind-set going forward. POTENTIAL Brands can provide solutionsmany of them mobile-basedthat bridge the virtual and real worlds. They can also forge relevant partnerships with providers of applications, devices and tools that merge the two worlds (an auto brand partnering with AutoBot, for instance). A marketers products have always been a potential media platform, with the packaging or product itself serving as an extension of the brand and its message. Attaching digital content to a product, as well as to traditional marketing platforms through tools like barcodes and augmented reality applications, can extend the brand message even further. Brands can offer more information, entertainment and utility that will drive engagement beyond the usual channels. Big picture and longer term, the Internet of Things has the potential to address many social challenges, as mapped out by Grald Santucci, head of Enterprise Networking and RFID at the European Commission in his paper The Internet of Things: Between the Revolution of the Internet and the Metamorphosis of Objects: health monitoring systems to support the aging society, distributed awareness to help predict natural disasters and react more appropriately, track and trace to help reduce traffic congestion, product lifetime information to improve recyclability, transparency of transportation to reduce carbon footprint, and more insights into various kinds of processes to improve optimization. On a less macro level, well see buildings that manage their own energy use, bridges that sense motion and metal fatigue, cars that track traffic patterns and report potholes, and fruit and vegetable shipments that tell grocers when they ripen and begin to spoil.
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8. WORLDS COLLIDING
These are things envisioned by companies like Hewlett-Packard (with its Central Nervous System for the Earth), IBM (Smarter Planet), Cisco (Intelligent Urbanization Initiative) and General Electric (Ecomagination). IBM shares its vision in this video. Long term, well see objects in our personal ecosystem speak to each other seamlessly and intelligently in a way that simplifies and/or improves our lives with little to no human interaction. Before we reach that vision, though, there will be significant hurdles to overcomechief among them privacy and security concerns on the consumer level. THOUGHT STARTERS
The Internet of Things has the potential to change the world, just as the Internet did. Maybe even more so.
KEVIN ASHTON, co-founder of MITs Auto-ID Center; coined the term Internet of Things
How can your brand better reflect the digital natives lifestyle, seamlessly bridging the virtual and real worlds with little distinction in your communications, products, tools, etc.? What tech-/mobile-enabled tools and applications do you currently use to bridge consumers virtual and physical worlds? What improvements or changes can you make so that its a more seamless, turnkey experience for the user? In fusing the virtual and real worlds, what real-world utility can you provide consumers? What relevant partnerships can you forge with providers of applications, tools or devices that merge the virtual and physical worlds? Before the bigger-picture, longer-term vision of the Internet of Things is achieved, what interim Internet-enabled solutions can you provide that help to simplify and improve lives?
IBM Social Media The Internet of Things
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HYPER. PERSONALIZATION
Content in overdrive: too much to read, buy, watch, etc., online
Data in droves: More is uploaded daily; with connected objects, much more is coming Instant gratification: Consumers have less patience, want it now
Customization 1.0: Rise in personalized products and services
The consumer-centered universe
New tools: Recommendation engines, geolocation apps, etc.
}}
Todays consumers seek personalized products, services and experiences; tomorrows will expect a personalized digital realm that offers up what they are most likely to need or want based on location, interests, demographic cohort, social network and so on.
HYPERPERSONALIZATION
AOL portal focusing on passive personalization Personalized search
Interest/taste graphs: New ways to chart who likes what and predict what else will interest each individual More personalized e-commerce (e.g., Sears AdYourWay, My TargetWeekly) Facebook/Bing and other partnerships that add social component Old Spice guys personalized videos Arcade Fires The Wilderness Downtown, an online video that uses Google Street View to incorporate the viewers childhood neighborhood into an experience
Sophisticated personalization techniques will increasingly distinguish e-commerce and other Web brands. Content, messaging and recommendations will need to be tailored to individual tastes and other factors (location, device used, etc.). Consumers will pay (or pay a premium) for seamlessly personalized experiences that save them time or enhance their digital domainand will be turned off by generic, impersonal sites that showcase irrelevant content or commerce.
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9. HYPER-PERSONALIZATION
TREND Todays consumers have come to expect personalized products, services and experiences; tomorrows will expect a personalized digital realm that offers up what they are most likely to need or want based on location, interests, demographic cohort, social network and so on. Rather than a Web that offers vast stores of (often irrelevant) content and options, the hyper-personalized realm will curate the Web for consumers and help them make decisions more quickly. In some cases consumers will opt in to more personalized experiences, in others theyll automatically see whats most relevant to them. Going to a website that is totally impersonal will be a thing of the past, Facebook COO Sheryl Sandberg said at an Advertising Week panel in New York in September. Once people have experienced something that is personal, that is around their identity and friends, they dont want to go back to something that is targeted at the whole world.
Youre starting to see it now, and youll start to see it over the next three to five years, where this is just going to be the norm. Youre going to go to sites and experiences and television shows that are going to be personalized to you. And your advertisements too, theyre going to be personalized to your experiences and the things youve clicked on and the things you havent and your preferences.
NICK BILTON, lead technology writer/reporter, The New York Times Bits Blog; author, I Live in the Future & Heres How It Works
DRIVERS
Content in overdrive: too much to read, buy, watch, etc., online: Every day theres exponentially more video to watch,
information to read, goods to sift through, etc. People are already accustomed to turning to curators for help, whether via their social news feeds, favorite bloggers, etc.
Data in droves: More is uploaded daily; with connected objects, much more is coming: More information comes
online every day, especially as governments and businesses become more transparent and Web-friendly. Our mobile devices leave digital trails as we make our way through the physical world, and will do so even more as more people start using them as digital wallets. And as the Internet of Things comes to fruition, reams of data collected from connected objects will be available. This will make personalization easier to pull off. Richard MacManus of ReadWriteWeb explained in a post: Successful products of this era of the Web will be ones that filter, structure and personalize this vast amount of data coming onto the Web.
Instant gratification: Consumers have less patience, want it now: People want to hone in on what theyre seeking
faster and are increasingly less willing to conduct multiple Google searches, scroll through dozens of user reviews and otherwise engage in time-sucking research.
Customization 1.0: Rise in personalized products and services: The 21st century consumer has come to expect a high
degree of flexibility and customization in products and services, from bikes to shoes to frappuccino style. Consumers can increasingly customize their entertainment as well, watching TV shows whenever they like via DVR/TiVo/Web or creating personalized radio stations on Pandora. This consumer is also now accustomed to personalized recommendations from sites like Amazon and Netflix.
Justin Oulette
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The consumer-centered universe: Digital tools have

democratized everything online; its the age of crowdsourcing and user-generated content. But todays consumers are more than simply empowered. The consumer of entertainment and information is now in the center, New York Times technology reporter Nick Bilton has written. That center changes everything. Now you are the starting point. Now the digital world follows you, not the other way around. Social media lets people see a customized feed based on their interests and friends; mobile apps show information based on the individuals location.
New tools: Recommendation engines, geo-location apps, etc.:

New tools like geo-location apps are delivering increasingly specific information; combined with other apps the user chooses, the mobile space is becoming highly individualized. Some of the other technology that will drive personalization is just getting off the grounde.g., recommendation engines like Hunchor as yet theoretical, like Googles notion of autonomous search.
The most important thing thats going on right now on the Internet is that there is all this data thats been put online in the past several years because of Web 2.0. All of this data has gone online, including mood and sentiment data, and location data, social network data, Amazon knows your purchase history, Netflix knows what movies youve rented or rated, Yelps restaurant reviews. All this activity, all this participation, has led to this great flood of data going online. And I think that it is inevitable that the Internet be personalized.
CATERINA FAKE, co-founder, Hunch
MANIFESTATIONS AOL portal is focusing on passive personalization: In redesigning its portal in late 2010, AOL says one strategy is to make it more personalizedit will vary content based on the users time of day and will reportedly also aim to spotlight content that interests the individual. CEO Tim Armstrong told Ad Age that the goal will be to deliver a uniquely seamless, automated experience: The big difference between us and where everyone else is going is we dont expect [users] to do all the work; AOL is doing the work. Our job in this economy is to curate information for people and let them get on with their lives. Personalized search: Google started personalizing search for all users in December 2009, prioritizing results based on a users prior habits (e.g., a frequent Amazon visitor is more likely to see Amazon results). Its vision is that search results will start diverging more widely for each person based on factors including location and social network. The next step is whats been termed autonomous search, which CEO Eric Schmidt calls the Serendipity Engine; this would tell me things I didnt know but am probably interested in while mobile (a sushi fan, for example, might get notified that a popular sushi restaurant is in the vicinity). Interest/taste graphs: New ways to chart who likes what and predict what else will interest each individual: Hunch.com calls its individual profiles taste graphs, while Gravity calls it an interest graph. These and other startups in the space are centered around Helping the right information find you, as Gravitys tagline puts it. Brand partnerships can then aim to help the right goods and services find the consumer. Hunchs partnership with Gifts.com, for example, will involve recommending gifts for users Facebook friends; a Bluefly partnership will give the sites customers the ability to personalize their shopping experience, receive hyper-targeted real-time recommendations, integrate social relationships
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with purchasing decisions and discover other Bluefly users who share similar fashion tastes, according to a release. More personalized e-commerce: With Sears AdYourWay, introduced in October, customers log in to Sears.com or Kmart.com to see a customized page based on previous purchases and product searches. They can also follow items to receive e-mail alerts when the price drops. In August, Target started allowing shoppers to customize its weekly online ad, with My TargetWeekly, choosing which brands or categories to see and how theyre displayed, set up deal alerts and so on.
Facebook/Bing and other partnerships that add social component: In October, Facebook and Bing announced a partnership to make search more personalized. This means some Bing search results will highlight what a users friends have liked (so a restaurant search will include any relevant eateries that friends have endorsed). When a user searches for a name, Bing prioritizes results based on social ties and lets users add friends via the search engine.
Hunch is a personalization engine for the Internet. And what that means is, we are building case profiles for each person on the Internet andits a very ambitious undertakingwe want to map it to every entity on the Internet and figure out the persons affinity for that entity: Would they like this or not? Its built on machine learning, and its a highly engineered solution to the problem. But in the end, what we should be able to do is take anything on the Internet and any person on the Internet, and know whether they would like that particular entity.
CATERINA FAKE, co-founder, Hunch
Other sites are incorporating Facebooks new personalization features in other ways: TripAdvisors Trip Friends builds on its Cities Ive Visited Facebook app, allowing people to Tap into your Facebook friends for tips about all the places theyve visited, so you can plan your perfect trip. Visitors to the movie-review aggregator Rotten Tomatoes can now see the opinions that Facebook friends have broadcast.
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Old Spice guys personalized videos: In a novel stunt last July, Old Spice spokes-hunk Isaiah Mustafa starred in a slew of personalized online video clips that each addressed someone by name, from celebrities to bloggers to fans who Tweeted him. It was an amusing way to take a TV campaign down to the individual level, and a hint of marketing strategies to come. The Wilderness Downtown: This is an online video for an Arcade Fire track that uses Google Street View to incorporate the viewers childhood neighborhood into the experiencea creative demonstration of the idea of putting each individual at the center of the online world.
[The Old Spice guy campaign] was the seminal idea of what well see advertising like in the future, where youll get to a point where your television advertisements are not only relevant to you but actually include you in the piece. You can see it with Facebook a little bit, where your friends are put into some of the ads for dental work and things like that; you see your friends faces in there. Thats the very, very beginning of what well see happen in the next few years.
SIGNIFICANCE/RELEVANCE Sophisticated personalization techniques will increasingly distinguish e-commerce and other Web brands. Content, messaging and recommendations will need to be tailored to individual tastes and other factors (location, device used, time of day, etc.), much as online ads are targeted. Consumers will be willing to pay (or pay a premium) for seamlessly personalized experiences that save them time or trouble, or enhance their digital domainand will be turned off by generic, impersonal sites that showcase irrelevant content or commerce. Just as consumers are working harder to sift through the expanding online universe (especially as more high-quality content comes online), brands will need to work harder to find their audiences.
Justin Oulette
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POTENTIAL We trust other people the most when it comes to recommendations, but slowly we will come to pay more attention to computerized tips, especially as they better learn how our current tastes and those of our friends affect our choices. Done right, personalization can point a consumer toward a purchase with relative accuracy by displaying what a person is most likely to be interested in and offering the type of deal he or she is most likely to respond to. As smartphone use gets more sophisticated and the physical and virtual worlds increasingly blend, this will be happening at or near point of purchase. Down the road, personalization will come to mean that digital tools act as butlers for consumers as they navigate the world, automatically serving up tips, news and information that each person is most likely to want with minimal effort on the users part. THOUGHT STARTERS As you build up profiles of your customers, how can you make everything about the consumer experience more personalizedso that its based around personal taste in addition to other key factors, such as how each person prefers to shop (browsing vs. quick decisions, etc.), where (online, offline or on the go via mobile), whether he/she prefers a social experience and wants input on choices, what the budget considerations are, etc.? Since some consumers dont want to spend time customizing what they see, how can you make content, recommendations and messaging more personalized without requiring much effort on the consumers part? What extra options can you add in for consumers who do want to engage in customizing their online experience?
I think people will be willing to pay for this hyperpersonalized world where things are culled for them and are relevant for them at that moment in time. So if I pull out The New York Times on my mobile phone at 4 oclock in the afternoon in Brooklyn, I should get a different experience than if you were to do the same thing in California in the morning. And it should be relevant to what my social network has read and what Ive read already on my computer, where Im standing in that location, and a variety of other things that fall into line with that.
Justin Oulette
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10
OUTSOURCING . SELF-CONTROL
TREND MANIFESTATIONS
DRIVERS
The unrestrained consumer
Accustomed to outsourcing
Technology and, specifically, mobile
Data obsession
}}
Beset by more temptations than everwhether its opportunities to spend, to overeat/drink, to get digitally distracted (by social networks, texts, online games), etc.people will increasingly look to third parties to help them exercise self-discipline. More brands will assume the role of regulator, with products, tools or other services that prevent people from acting on impulses; theyll put hurdles in the way or give incentives to change behavior.
OUTSOURCING SELF-CONTROL
MasterCards inControl, a card that shuts off once a set budget is reached
BlackBerry app NOTXT n Drive shuts off texting and e-mailing once a users car gets moving
Slow Down, a speedmonitoring music app Mercedes-Benz E-Class drifting detection In-car breathalyzers
Preventing drunken digital remorse, via apps like Dont Dial! and The Bad Decision Blocker Adidas MiCoach gives realtime feedback during a workout
As more people look for help managing their impulses or behaviors, brands have unique opportunities to fill the role of partner, coach or even cop.
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10. OUTSOURCING SELF-CONTROL
TREND Beset by more temptations than everwhether its opportunities to spend, to overeat/drink, to get digitally distracted (by social networks, texts or online games), etc.people will increasingly look to third parties to help them exercise selfdiscipline. More brands will assume the role of regulator, with products, tools or other services that prevent people from acting on impulses. Theyll put hurdles in the way or provide incentives to change behavior, giving consumers anything from a nudge to a more assertive shove.
DRIVERS
The unrestrained consumer: Many people have seen their personal finances decrease, their girths increase and their
tendency to multitask or take part in risky behavior (texting while driving, etc.) rise. As life becomes more complex, temptations abound closer at hand and the pull of instant gratification intensifies, making it more difficult to exercise self-control. In our survey of American and British adults, 64 percent agreed that in todays world, I feel like Im constantly being tempted to do something I shouldnt (like overeat, drink too much, spend more money, etc.). (See Figure 10; see Appendix for country breakdown.)
Accustomed to outsourcing: More stressed and time crunched than

ever, people are increasingly accustomed to outsourcing things they previously did or were responsible for themselves (e.g., automatic bill payments).
Technology and, specifically, mobile: Our ever-increasing dependency

on technology has made us more comfortable with employing tech tools and services to help us with everyday tasks and responsibilities. And the mobile phone is uniquely positioned to serve as a constant guide and reminder.
There is research that shows people still have the same selfcontrol as in decades past, but we are bombarded more and more with temptations. ... Our psychological system is not set up to deal with all the potential immediate gratification.
KATHLEEN D. VOHS, associate professor of marketing, Carlson School of Management at the University of Minnesota, The New York Times, Pumping Up the Self-Control in the Age of Temptations, Oct. 8, 2010
Data obsession: The modern consumer is taken with the idea of

personal metrics and quantifying everything from sleep and exercise to alertness and productivity. For consumers, the data never lie, and therefore people are more amenable than ever to inviting outside datadriven solutions into their private livesoften tech-enabled and mobile-based ones. MANIFESTATIONS MasterCards inControl: Available on credit and debit cards, inControl protects people from fraud and even from themselves. Once a set budget has been met, the card rejects further purchases. Cardholders with a habit they want to curb, like dining out, can adjust their settings to limit specific expenses. The service, accessible by Barclaycard holders in the U.K. and soon those of Citi MasterCard in the U.S., keeps consumers abreast of their spending behavior with real-time alerts.
SqueakyMarmot
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NOTXT n Drive: This BlackBerry app shuts off texting and e-mailing on a mobile device once a vehicle hits 10 miles per hour. When drivers arrive at a full stop, their smartphone functions as normal and they receive any messages that were on hold while the car was in motion. Inventor George Distler says the company has had downloads from Brazil to Great Britain, and fans on its Facebook page hail from 32 countries. Slow Down: Slow Down, an iPhone app from Belgium, monitors the speed of a car while the driver listens to music. The driver selects a speed limit and creates a playlist. The app then uses GPS to detect when the driver goes above the speed limit, slowing down the music into a distorted melody. An audible reminder to slow down ultimately helps thwart risky consequences.
Mercedes-Benz E-Classs drifting detection: The Active Lane Keeping Assist is an optional system that warns distracted or sleepy drivers of unintended drifting and can even help steer the car back into its own lane should the driver disregard the alerts. In-car breathalyzers: In-car breathalyzers are interlock devices connected to the ignition. They require a breath sample before the engine will start; if a certain amount of alcohol is measured, the car will not drive. Brands like Ford, GM, Toyota and BMW are exploring innovative non-invasive ways of measuring alcohol levels (e.g., through the light from the drivers retina), according to AOL Autos. Preventing drunken digital remorse: More tools are popping up to prevent drunken foolishness in a digital world that never forgets. The concept surfaced in 2008 when Google Labs introduced Mail Goggles, which, once activated in Gmail, requires users to answer math questions before transmitting their e-mails late at night. The app world has jumped on the bandwagon with the likes of Dont Dial! and The Bad Decision Blocker (each 99 cents on the iPhone). Both applications enable users to select the contact information theyd like to block from themselves and for how long.
Christine Miranda
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Adidas MiCoach: The free app for BlackBerry and iPhone lets users select a sport, their fitness level, a goal date and a workout schedule, all of which MiCoach analyzes to make a customized plan. Users select a voice from several languages to coach them during their workout (options include the voices of star athletes like Spanish footballer David Villa). Adidas also sells a MiCoach pacer, which measures the users heart rate and pace as the coach gives real-time feedback and orders.
SIGNIFICANCE/RELEVANCE Whether in regard to their daily lives or long-term goals, people are looking for help to get past the modern hurdles that make self-control more difficult. Nearly 7 in 10 of our survey respondents agreed that its really difficult to break a bad habit on your ownpeople need help. (See Figure 10; see Appendix for country breakdown.) Brands are increasingly accompanying consumers beyond the point of purchase, and more customers expect tools and services to come with a good or product. Now brands have the opportunity to go a step further by not only educating consumers but also playing the role of partner, coach or even cop.
FIGURE 10. TEMPTATIONS AND BREAKING BAD HABITS

In todays world, I feel like Im constantly being tempted to do something I shouldnt (like overeat, drink too much, spend more money, etc.)
69 67 56 66
Its really difficult to break a bad habit on your own people need help
73 68 47
} }
64%
69%
I wish there were more products, tools, or services to help me with my bad habits or behaviors
56 42
48%
POTENTIAL Nearly half the respondents we surveyed said they wished there were more products, tools or services to help them with their bad habits or behaviors. (See Figure 10.) Brands can earn goodwill by helping consumers help themselves gain control over everyday routines or, in some cases, avoid risks. Its a way to develop a deeper relationship with consumers beyond the point of purchase. While in some cases brands might have to tell people to, well, consume less, looking out for people will bring them closer and encourage loyalty. Ultimately, Outsourcing Self-Control invites brands to participate in a unique form of CSR.
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THOUGHT STARTERS How can your brands products or services help consumers with self-control? Are there existing products or services that help people with self-control that your brand could leverage? Do your products already possess the kinds of properties that could help todays tempted and overwhelmed consumer? If so, how can you get that message across to consumers? How can your brand insert itself beyond nudging better-for-you behavior? Could your brand raise awareness about something collectively bigger than self-control, like obesity or texting while driving? How can your brand curb consumers impulses or bad behaviors via the tools they use each day, e.g., mobile phones? What kinds of data-tracking elements are applicable to your brand and could serve a utilitarian purpose for consumers? How can you make self-control seem fun or at least easier?
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APPENDIX
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APPENDIX
LEARN MORE ABOUT OUR INFLUENCERS/EXPERTS
STEPHEN BAKER, vice president of industry analysis for consumer technology, NPD As an expert on consumer technology sales and trends across the U.S., Baker offers expert insight and commentary to clients and the media on retail and e-commerce, computer hardware and peripherals, holiday and yearly sales results, and analysis of new products and their impact on the consumer technology market. He joined NPD when it acquired PC Data Inc., in March 2001, where he was the principal hardware analyst and director of the overall hardware point-of-sale business. Prior to joining PC Data, he was a senior analyst in the distribution channels service at International Data Corporation (IDC). Baker is quoted extensively in industry publications such as TWICE, CNET and CE Daily, as well as business and news publications including The Wall Street Journal, The New York Times, USA Today, Investors Business Daily and The San Jose Mercury News. He has also appeared on CNBC, Fox News and CNN, and served on panels at industry events such as RetailVision, and CES. His experience with the retail and consumer technology sectors goes back to 1985, when he began his career at Staples, helping to open the first office superstore in the United States. Baker spent nine years with the company where he gained the extensive knowledge and understanding of retail consumer technology. Baker has been tracking and analyzing the industry for nearly 15 years, and was ranked as a leading industry analyst by Adweeks Technology Marketing. He received his MBA from Northeastern University and a B.S. in foreign service from Georgetown University. DAVID BELT, executive director and founder of Macro Sea Belt, executive director and founder of Macro Sea, has become increasingly interested in transforming junk spaces and objects into fully utilized places of recreation and culture. He conceives and formulates each projects concept and vision, and oversees design and implementation. The first project from the New York-based firm, whose ventures combine elements of art, environmentalism and urban renewal, involved converting dumpsters into mobile swimming pools. This evolved into a more recent endeavor: the Mobile Pool project in New York City, where dumpsters-turned-pools, flanked by decks, were set up on Park Avenue as a sort of country club. Next up? A found object skate park in Detroit.
David Belt
68
APPENDIX
NICK BILTON, lead technology writer/reporter, The New York Times Bits Blog; author, I Live in the Future & Heres How It Works Bilton has worked in numerous industries within the context of design, research and development, technology and storytelling. He is currently the design integration editor for The New York Times and the user interface specialist and researcher for The New York Times Research and Development Lab working on a variety of research projects and exploring technologies that could become commonplace in the next two to 10 years. His work in the R&D Lab includes exploring and prototyping content and interaction on futuristic flexible digital displays, a vast array of mobile applications and devices, Times Reader 2.0, Print-to-mobile SMS, Semacode integration, data visualization, content in the living room and context aware sensors. Bilton is also the co-founder, with Michael Young, of Shifd.com, a start-up within The New York Times that helps people shift content easily between multiple devices. As the author of I Live in the Future & Heres How It Works (Crown Business, 2010), he examines how technology is creatively disrupting society, business and our brains. Bilton is a co-founder of NYCResistor, a hacker space in Brooklyn, which offers hardware and programming classes and allows people to collectively work on innovative open source hardware and robotics projects. He is also an adjunct professor at New York Universitys ITP graduate program. Prior to working at the Times, Bilton worked at Miramax Films and in the advertising and branding industry as a creative director; and although he is not proud of it, he designed the first Britney Spears doll. RACHEL BOTSMAN, co-author, Whats Mine Is Yours: The Rise of Collaborative Consumption Botsman is a social innovator who writes, consults and speaks on the power of collaboration and sharing through network technologies, and on how it will transform business, consumerism and the way we live. She is the co-author of the influential book Whats Mine Is Yours: The Rise of Collaborative Consumption (HarperCollins, 2010). Her work has appeared, and she has been quoted as a thought leader, in The Economist, CNN, Harvard Business Review, Wired, Bloomberg News and The New York Times. She is a regular contributor to The Australian Financial Review on topics related to technology and innovation. She is an inspiring speaker and has presented at high-profile events including NESTA, The Clinton Global Initiative, TEDx, GOOGLE, No.10 Downing Street and Microsoft. She received her BFA (Honors) from the University of Oxford and undertook her postgraduate studies at Harvard University. She has consulted to Fortune 500 companies and leading nonprofit organizations around the world on the intersection between brand, innovation and sustainability, both as an independent expert adviser and with top-tier agencies including Prophet Brand Strategy and What If Innovation. As a former director at the William J. Clinton Foundation, she spearheaded major public-private partnerships with Nickelodeon, Rachael Ray and the NBA. She was integral in building The Alliance for a Healthier Generationa joint venture with the American Heart Associationinto a multimillion-dollar national program to address childhood obesity. Botsman has also worked as a teaching assistant at Harvard Kennedy School of Government and acted as an editorial advisor on the book Creativity Inc.: Building an Inventive Organization (Harvard Business School Press, 2003). She is the founder of CCLab, an innovation incubator that works with start-ups, big businesses and local governments to deliver innovative solutions based on the ideas of Collaborative Consumption.
Justin Oulette
69
APPENDIX
NICHOLAS CARR, author, The Shallows: What the Internet Is Doing to Our Brains Carrs most recent book is The Shallows: What the Internet Is Doing to Our Brains. He is also the author of The Big Switch (Norton, 2008) and Does IT Matter? (Harvard Business Press, 2004), and has written for The Atlantic, The New York Times, The Wall Street Journal, Wired, The Guardian, The Times of London, The New Republic, The Financial Times, Die Zeit and many other periodicals. His essay Is Google Making Us Stupid? has been collected in several anthologies, including The Best American Science and Nature Writing 2009, The Best Spiritual Writing 2010 and The Best Technology Writing 2009. Carr is a member of the Encyclopedia Britannicas editorial board of advisors, is on the steering board of the World Economic Forums cloud computing project and writes the popular blog Rough Type. Earlier in his career, he was executive editor of the Harvard Business Review. GEORGE DISTLER, founder and executive director, NOTXT Communications Distler is the founder of NOTXT Communications, a nonprofit corporation that offers responsible communication through technology. Its NOTXT n Drive app for BlackBerry disables the texting function when the user is driving. A portion of app sales will go towards helping educate people on the dangers of distracted driving. Distler lives in Lake Mary, Fla., with his wife, Cheryl, and their four children. NATHAN EAGLE, founder and CEO, txteagle Eagles research involves engineering computational tools, designed to explore how large-scale human behavioral data can be used for social good. As a research scientist at MIT and Fulbright Professor in 2006, he launched MITs EPROM (Entrepreneurial Programming and Research on Mobiles) initiative, developing a mobile phone programming curriculum that has been adopted by 12 computer science departments across subSaharan Africa. Thousands of African computer science students have gone through his curriculum, leading to hundreds of mobile applications designed specifically for the African market, as well as a significant number of local start-ups. One such start-up is txteagle, a company he formed in 2008 with the goal of enabling the 2 billion mobile phone subscribers living in the developing world to generate income using their phones. He holds a bachelors and two masters degrees from Stanford Universitys School of Engineering; his Ph.D. from the MIT Media Laboratory on Reality Mining was declared one of the 10 technologies most likely to change the way we live by the MIT Technology Review. In 2008, Nokia named him as one of the worlds top mobile phone developers, and in 2009, he was elected to the TR35, a group of the top innovators under 35. His academic work has appeared in Science, Nature and PNAS; his research has been featured in The New York Times, The Wall Street Journal, BusinessWeek and CNN. He is a visiting assistant professor at MIT, a research assistant professor at Northeastern, and an Omidyar Fellow at the Santa Fe Institute.
MIT
Joanie Simon
70
APPENDIX
CATERINA FAKE, co-founder, Hunch Fake is a U.S. businesswoman and entrepreneur. She is the co-founder of Hunch, a site that launched in June 2009 with the goal of building a taste graph for the Internet, mapping every person on the Internet to every entity, and their affinity for that entity. As co-founder of Flickr, the popular photo-sharing service, she helped usher in Web 2.0 features such as social networking, community open APIs, tagging and algorithms that surfaced the best, or more interesting, content. When Flickr was acquired by Yahoo! in 2005, Fake ran the Technology Development group, known for its Hack Yahoo! program, a stimulus to innovation and creativity, and Brickhouse, a rapid development environment for new products. Prior to Flickr, she was art director at Salon.com, where she became involved in the development of online communities, social software and personal publishing. Fake is a founder partner at Founder Collective and sits on the boards of Etsy and Creative Commons. She advises many startups and new businesses. She has won numerous awards, including BusinessWeeks Best Leaders of 2005 and Fast Companys 2010 Most Influential Women in Technology. In 2006 she was named to the Time 100, Time magazines list of the worlds 100 most influential people, and appeared on the cover of Newsweek the same year. Fake attended Smith College, graduated from Vassar College, and received an honorary doctorate from RISD in 2009. STEVE LEWIS, CEO and co-founder, Living PlanIT Lewis previously served as general manager of market development at Microsoft and co-chair of the Microsoft Business Development Forum. He was primarily responsible for understanding key market trends and developments. He also led the companys strategic business development opportunities and commercial engagements, in charge of Microsofts portfolio of technology, research and development, services, marketing, distribution, partner ecosystem and investment capital. Before joining Microsoft, Lewis worked in the finance and investment industry, focusing on areas including due diligence, mergers and acquisitions, and participated on the boards of numerous companies. He also served as general manager of the Lotus Messaging and Collaboration division of IBM Corp. Currently Lewis is an active member on several boards of commercial corporations, philanthropic foundations and government bodies. He relocated to Portugal to establish Living PlanITs operations in June 2008.
Living PlanIT
71
APPENDIX
Sanjeev Chatterjee
In her role as the director of the International Center for Media and the Public Agenda, Moeller oversees an academic center that forms a bridge between the College of Journalism and the School of Public Policy at the University of Maryland, College Park.
In 2008, Moeller was the recipient of two major awards: the Carnegie Scholar Award from the Carnegie Corporation of New York, which gave her a $100,000 grant for research and writing on how media report on the intersection of Islam and terrorism; and the State of Maryland Board of Regents Teaching Award, which recognized Moeller both for her work in the university classroom and for helping to found a new global education program, the Salzburg Academy on Media and Global Change, where she is the co-director and lead faculty member. Moellers latest book, Packaging Terrorism: Co-opting the News for Politics and Profit (Wiley-Blackwell, 2009), is the first in a series from the International Communication Association. She is also the author of Compassion Fatigue: How the Media Sell Disease, Famine, War and Death (Routledge, 1999). She was a fellow in the International Security Program and at the Joan Shorenstein Center for the Press, Politics and Public Policy, both at the Kennedy School of Government at Harvard University, and twice a Fulbright Professor in international relations, in Pakistan and Thailand. Moeller was previously the director of the journalism program at Brandeis University, and taught for three years in the history department at Princeton University, and for a year at Pacific Lutheran University. GWEN MORRISON, CEO of the Americas and Australiasia, The Store Morrison is responsible for extending WPPs leadership in retail innovation and supporting global resources for WPP group companies throughout the Americas and Australasia. She has devoted her career to heightening brand connections throughout the retail environment as consumers move closer to purchase. Morrisons background spans the disciplines of shopper research, retail strategy development, collaborative marketing and brand activation. Before joining The Store, Morrison was managing director of Frankel Brand Environments, where she pioneered the development of in-store brand communications that go beyond traditional principles of merchandising and POP. She led retail initiatives for Disney, Target, The North Face, Ford, Coca-Cola and Nestl. Earlier in her career, Morrison worked in account management at advertising agencies FCB and Y&R. Morrison promotes best practices throughout the marketing community and has written numerous articles for business publications including Brandweek and Visual Merchandising & Store Design. She has been quoted in The Wall Street Journal, The New York Times and BusinessWeek. Based in Chicago, Morrison is a regular speaker at retail industry events including the National Retail Federations Annual Conference.
72
APPENDIX
RAY OLDENBURG, professor emeritus, University of West Florida; author, The Great Good Place Oldenburg is an urban sociologist from Florida who writes about the importance of informal public gathering places. In his book The Great Good Place, Oldenburg demonstrates why these gathering places are essential to community and public life. He argues that bars, coffee shops, general stores, and other third places (in contrast to the first and second places of home and work), are central to local democracy and community vitality. By exploring how these places work and what roles they serve, Oldenburg offers place-making tools and insight for individuals and communities everywhere. He works as a consultant to entrepreneurs, community and urban planners, churches and others seeking to establish great good places. Oldenburg holds a bachelors degree in English and social studies from Mankato State University, Minnesota, and a masters and Ph.D. in sociology from the University of Minnesota. He held positions at the University of West Florida from 1971 to 2001. Oldenburg was also a dental technician in the U.S. Army Medical Corps. RAJAT PAHARIA, founder and chief product officer, Bunchball Bunchballs Nitro platform incents and motivates user behavior online. Nitro distills concepts from behavioral economics and game design into a Web service that major media companies, social networks, ISPs and others are using to drive user behavior and increase engagement on their websites. Paharias skill set combines a unique understanding of technology and design that stems from a four-year career at design firm IDEO, where he was co-director of the software experiences practice. While there he worked with clients including AT&T Wireless, Avaya, Microsoft, McDonalds, HP and Philips. Prior to IDEO, Paharia worked at Philips Consumer Electronics, IBM Research and ViewStar. He has a masters in computer science from Stanford University, with a focus on human computer interaction, and an undergraduate degree from the University of California, Berkeley. IAN PEARSON, futurologist, Futurizon Pearson is a full-time futurologist, tracking and predicting developments across a wide range of sectors, including technology, business, society, politics and the environment. He has worked in numerous branches of engineering, from aeronautics to cybernetics, sustainable transport to electronic cosmetics. Before joining Futurizon, he worked for U.K. telecommunications firm BT from 19991 to 2007 as a futurologist. At Futurizon, a small futures institute, he writes, lectures and consults globally on all aspects of the technology-driven future. Pearson is a chartered fellow of the British Computer Society, a fellow at the World Academy of Art and Science, and an honorary fellow of the Institute of Nanotechnology. He graduated from the Queens University of Belfast with degrees in applied mathematics and theoretical physics. In 2007, Pearson was awarded an honorary doctor of science degree by the University of Westminster.
Ian Pearson
Laura Pfeifer
73
APPENDIX
MILTON F. PEDRAZA, founder and CEO, Luxury Institute Through the use of proprietary surveying techniques with high-net-worth consumers, Pedraza has established the New York-based Luxury Institute as a ratings, research and luxury CRM consulting institution. Luxury goods and services firms, luxury professionals, high-net-worth consumers, and the international press rely on the Institute for its impartial ratings and best practices insights on how to better serve high-net-worth clients globally. Pedraza is a world-class expert CRM practitioner. Prior to founding the Luxury Institute, he served in finance, marketing, sales and senior management positions at Fortune 100 companies Altria, Pepsico, Colgate, Citigroup and Wyndham Worldwide. In charge of CRM for a major division of Citigroup, Pedraza was assigned to run Citis first Global CRM project and won a Global Marketing award for his results. At Cendant (now Wyndham), he was also assigned to run the companys first CRM project in addition to running luxury segments. He has licensed his proprietary and continuously updated CRM methods, intellectual property, and best practices to the Luxury Institute in order to serve the luxury industry and its consumers. An author and speaker, he frequently presents at conferences globally on the topics of financial services, travel and leisure, real estate, and luxury. As an executive and private investor, he has conducted business in more than 90 countries and speaks several languages. RONALD SHER, CEO, Argus Group; principal, Metrovation In his role as CEO of Argus Group, Sher was responsible for the redevelopment and expansion of Crossroads Shopping Center in Bellevue, Wash., a 550,000-square-foot center, which has become the thriving town center of east Bellevue. Crossroads was the subject of a case study by the International Council of Shopping Centers. Sher is also founder and CEO of The Third Place Company, which creates community gathering places anchored by a book store, restaurants and entertainment. He is a founder of Islanders Bank, a commercial bank headquartered in Friday Harbor, Wash. He holds a Ph.D. from Washington State University, an MBA from Columbia University, and a bachelors degree from Colorado College. GRAHAM SMITH, social media moderator, Epix HD/Viacom Smith is a new media artist living in New York City. He studies network science, game mechanics, digital identity, social media and fine art. He is the social media moderator for Viacoms new cable channel, EPIX, developing community structure. In his free time he does work on personal Web and art projects.
Marco Arment
74
APPENDIX
KIT YARROW, consumer psychologist; professor of psychology and marketing, Golden Gate University, San Francisco Yarrow chairs Golden Gate Universitys psychology department and is the universitys 2009 Outstanding Scholar. In addition, she has taught consumer behavior at universities around the world, including the Helsinki School of Economics and University of California, Berkeley. Yarrows speeches on consumer trends, Generation Y and the psychology of consumers have been well received by both industry and academic audiences. She has delivered keynote speeches and presentations at Cisco, Lowes, Gap, GSK, AC Nielsen, IIR, Sanoma Magazines (Finland), Stanford University, Cornell University, Wharton Business School, Fashion Institute of Technology, The Commonwealth Club, The American Psychological Association, and dozens of other industry and trade organizations. She has consulted to clients such as General Electric, Del Monte, Landor, Nokia and AAA. GABE ZICHERMANN, chair, Gamification Summit and Workshops; co-author, Game-Based Marketing Zichermann is an entrepreneur, author, public speaker and gamification thought leader. His book Game-Based Marketing (Wiley, 2010) makes a compelling case for the use of games and game mechanics in everyday life, the Web and business. Zichermann is also a board member of StartOut.org and a facilitator for the New York chapter of the Founder Institute. A native of Canada and resident of New York, he frequently muses about games and the world at http://Gamification.Co.
Sion Fullana
Misti Layne
75
APPENDIX
ADDITIONAL CHARTS 1. ALL THE WORLDS A GAME

FIGURE 1A. SOCIAL ONE-UPMANSHIP (U.S.)
Percentage of American adults who agree
57
60 53
I may not admit it out loud or even think about it, but I often compare my activities, purchases, habits, or behaviors to those in my social circle I may not admit it out loud or even think about it, but I often try to one-up those in my social circle with my activities, purchases, habits or behaviors
53 61 26 46 41 22
FIGURE 1B. SOCIAL ONE-UPMANSHIP (U.K.)

68
59 47
I may not admit it out loud or even think about it, but I often compare my activities, purchases, habits, or behaviors to those in my social circle I may not admit it out loud or even think about it, but I often try to one-up those in my social circle with my activities, purchases, habits or behaviors
59 44 25 51 33 16
76
APPENDIX
FIGURE 1C. SOCIAL ONE-UPMANSHIP (BY GENDER)

Male Female
I consider myself a competitive person I may not admit it out loud or even think about it, but I often compare my activities, purchases, habits, or behaviors to those in my social circle I may not admit it out loud or even think about it, but I often try to one-up those in my social circle with my activities, purchases, habits or behaviors
64 49 40 38 34 26
Note: Unlike the charts broken down by generation, this chart also includes people over age 65.
FIGURE 1D. GAMIFYING LIFE (U.S.)

Making everyday activities (like working, doing school work, running errands, doing chores, eating out, working out, etc.) more like a game (with points, rewards, a leader board and/or competition) would make them more fun and rewarding If a layer of competition were added to everyday activities, Id be more likely to keep closer watch of my behavior/habits in those areas/activities
58 83 57 41 67 41
66%
50%
77
APPENDIX
FIGURE 1E. GAMIFYING LIFE (U.K.)

69 64 49 62 56 39
} }
61%
52%
FIGURE 1F. GAMIFYING LIFE (BY GENDER)

Male Female
57 63
54 42
78
APPENDIX

FIGURE 2A. THE ART OF THE DEAL (U.S.)
72 69 48
}
80 85
63%
91
85%
FIGURE 2B. THE ART OF THE DEAL (U.K.)

66 54 54
}
77 81 82
58%
80%
79
APPENDIX
4. EAT, PRAY, TECH

FIGURE 4A. TECHNOLOGY UPGRADES (U.S.)
52
41 28
55 44 30
48 34 12
FIGURE 4B. TECHNOLOGY UPGRADES (U.K.)

61
47 40
45 51 35
48 33 16
80
APPENDIX
FIGURE 4C. TECHNOLOGY UPGRADES (BY GENDER)

Male Female
Technology upgrades are worth the higher prices I dont like being behind the curve when it comes to adopting the latest technologies
50 34 44 35 35 20
81
APPENDIX
5. DE-TECHING
FIGURE 5A. DE-TECHING (U.S.)
Because of technology, I am frequently distracted from what I should be focusing on (my work, my family, my friends, etc.) I try to regularly disconnect from technology, so I can focus on other non-technology experiences
48 54 29
}
60
44%
62 51
}
42%
58%
Sometimes I feel like Im a slave to my technology
53 39 35
72
I think I spend way too much time using technology
47 32
}
77 75 82
50%
I think its rude when someone checks their mobile phone when theyre talking to me in person
78%
I wish I could spend more time communicating with friends and family in person rather than through technology
70 69 59
66%
82
APPENDIX
FIGURE 5B. DE-TECHING (U.K.)

Because of technology, I am frequently distracted from what I should be focusing on (my work, my family, my friends, etc.) I try to regularly disconnect from technology, so I can focus on other non-technology experiences
66 49 26 55 50 49
} }
70 70
47%
Sometimes I feel like Im a slave to my technology
51 47 24
} }
51%
41%
64
I think I spend way too much time using technology
50 34
49%
I think its rude when someone checks their mobile phone when theyre talking to me in person
76 86
77%
I wish I could spend more time communicating with friends and family in person rather than through technology
55 55
60%
83
APPENDIX

FIGURE 6A. SHOPPING PREFERENCES (U.S.)
Percentage of American adults Where do you prefer to buy each of the following items, online or in store?
Books
36 44
Movies
33 37 26
Movie Rentals
33 16
Toys
40 27
64
FIGURE 6B. SHOPPING PREFERENCES (U.K.)

Percentage of British adults Where do you prefer to buy each of the following items, online or in store?
Books
52 36
Movies
40 25 18
Movie Rentals
19 26
Toys
34 43
48
84
APPENDIX
FIGURE 6C. BANKING PREFERENCES (U.S.)

Percentage of American adults who said they conduct their banking via the following means always or most of the time
61
54 46 19
54%
19 1
}
35 23
13%
At a branch
44 37
At an ATM/Cashpoint
36 12
} }
39%
24%
85
APPENDIX
FIGURE 6D. BANKING PREFERENCES (U.K.)

Percentage of British adults who said they conduct their banking via the following means always or most of the time
62
71 61 13
65%
8 2
}
24 22 24 28 20
8%
At a branch
34
At an ATM/Cashpoint
} }
23%
27%
86
APPENDIX

FIGURE 10A. TEMPTATIONS AND BREAKING BAD HABITS (U.S.)
In todays world, I feel like Im constantly being tempted to do something I shouldnt (like overeat, drink too much, spend more money, etc.) Its really difficult to break a bad habit on your ownpeople need help
70 65 56 70
68
I wish there were more products tools, or services to help me with my bad habits or behaviors
40 65 46
} } }
76
64%
71%
50%
FIGURE 10B. TEMPTATIONS AND BREAKING BAD HABITS (U.K.)

In todays world, I feel like Im constantly being tempted to do something I shouldnt (like overeat, drink too much, spend more money, etc.) Its really difficult to break a bad habit on your ownpeople need help
68 69 57 60
71 67
} }
65%
66%
I wish there were more products tools, or services to help me with my bad habits or behaviors
55 49 39
48%
87
About JWT: JWT is the worlds best-known marketing communications brand. Headquartered in New York, JWT is a true global network with more than 200 offices in over 90 countries employing nearly 10,000 marketing professionals. JWT consistently ranks among the top agency networks in the world and continues its dominant presence in the industry by staying on the leading edgefrom producing the first-ever TV commercial in 1939 to developing award-winning branded content for brands such as Freixenet, Ford and HSBC. JWTs pioneering spirit enables the agency to forge deep relationships with clients including Bayer, Bloomberg, Cadbury, Diageo, DTC, Ford, HSBC, Johnson & Johnson, Kelloggs, Kimberly-Clark, Kraft, Microsoft, Nestl, Nokia, Rolex, Royal Caribbean, Schick, Shell, Unilever, Vodafone and many others. JWTs parent company is WPP (NASDAQ: WPPGY).
10 TRENDS FOR 2011

466 Lexington Avenue New York, NY 10017 www.jwt.com | @JWT Worldwide www.jwtintelligence.com | @JWTIntelligence www.anxietyindex.com | @AnxietyIndex Director of trendspotting Editor/writer Trends strategist Trends strategist Proofreader Contributors Ann M. Mack Marian Berelowitz Christine Miranda Jessica Vaughn Katerina Petinos Aaron Baar Patty Orsini Sharon Panelo Deanna Zammit Mark Truss Amy Song Josh Burggraf Paris Tempo Productions
CONTACT: Ann M. Mack 212-210-7378 ann.mack@jwt.com @annmmack
SONAR Illustrations Design
(c) 2010 J. Walter Thompson Company. All Rights Reserved.

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10 TRENDS FOR 2011

EXPERTS AND INFLUENCERS*

STEPHEN BAKER, vice

president of industry analysis for consumer technology, NPD

DAVID BELT, executive director and founder of Macro Sea

NICK BILTON, lead technology

GEORGE DISTLER, founder

NATHAN EAGLE, founder and

CATERINA FAKE, co-founder,

co-founder, Living PlanIT

GWEN MORRISON, CEO of

STEVE LEWIS, CEO and

RAY OLDENBURG, professor

RAJAT PAHARIA, founder and

IAN PEARSON, futurologist,

chief product officer, Bunchball

MILTON F. PEDRAZA, founder

RONALD SHER, CEO, Argus Group; principal, Metrovation

GRAHAM SMITH, social media

moderator, Epix HD/Viacom

GABE ZICHERMANN, chair,

Gamification Summit and Workshops; co-author, Game-Based Marketing

OUR 10 TRENDS FOR 2011

ALL THE WORLDS . A GAME

Social media enabling social one-upmanship and competition

Gaming has become ingrained in culture

The engaged consumer

New online models

Gamifying good behavior (conservation-throughcompetition programs, Volkswagens Fun Theory programs)

Gamifying life (EpicWin iPhone app, Nike Grid)

Gamifying finance (Mint.com, Barclays 56 Sage Street, Bobber)

Gamifying complex problems (Foldit, Breakthroughs to Cures)

Gamifying community participation (Badgeville)

1. ALL THE WORLDS A GAME

FIGURE 1A. SOCIAL ONE-UPMANSHIP

1. ALL THE WORLDS A GAME

Gaming has become ingrained in culture: And Millennials have

Mobile technology: While technology isnt necessary to brands

Instant gratification: The delayed gratification associated with

1. ALL THE WORLDS A GAME

FIGURE 1B. GAMIFYING LIFE

1. ALL THE WORLDS A GAME

1. ALL THE WORLDS A GAME

1. ALL THE WORLDS A GAME

1. ALL THE WORLDS A GAME

THE URGENCY . ECONOMY

Life in real time

The art of the deal

Global copycatting: Groupon and Gilt Groupe spawn clones worldwide

THE URGENCY ECONOMY

2. THE URGENCY ECONOMY

2. THE URGENCY ECONOMY

2. THE URGENCY ECONOMY

FIGURE 2. THE ART OF THE DEAL

When I get a good deal on something, I tend to tell my friends about it

2. THE URGENCY ECONOMY

The paradox of choice

Temporary car ownership

Ikea Swedens secondhand site

Contracts for the commitment-shy

Eco-consciousness: People are becoming increasingly

Digitization: As goods become digitized or virtualized,