sxsw 2015 report - southwest media group

2015 SXSW Trend Report

APRIL 2015

Each year, Southwest Media Group sends a

group of employees to South by Southwest

to capture the next big media and marketing

trends that will be changing the industry.

However, there was one key difference at

this year’s conference.

What once used to be a conference that

predicted the next big trends, now seemed

to be a conference that reflected the

current state of marketing rather than

predict it.

Southwest Media Group has compiled a list

of the big themes at this year’s SXSW

conference and provided insight into how it

can be applicable to media and most

importantly, to our clients.

THE THEMES ⁄ Redefining Retail

⁄ Frictionless Consumer

Experiences… Powered by Data

⁄ Marketing to Millennials

⁄ Visual Data

⁄ Trending Tech

Introduction

2015 SXSW Trend Report |2 Southwest Media Group

MOBILE ON THE RISE Mobile technology provides shoppers access to

products and services anytime, anywhere. Before a

shopper even enters a store, 70% have searched for a

product online or on their mobile device, an act known

as pre-shopping. When they are in-store, shoppers are

using their mobile device as a personal shopping

assistant and searching for product information and

pricing. To put it in perspective, Target announced that

10% of its 2014 Black Friday online sales occurred while

the shopper was in-store.

With this in mind, panelists stressed the importance of

providing customer service and product information

across all channels. Tricia Nichols, Senior Director of

Media & Brand Partnerships at Gap said, “Mobile is the

first experience, it’s no longer a second screen.”

BLURRING OF THE PHYSICAL AND DIGITAL Consumers are more informed and demanding than

ever due to an influx of information at their

fingertips. However, this hasn’t changed the

importance of physical retail, with an estimated 90%

of purchases still occurring in-store.

Providing immersive and connected experiences will

prove to be a competitive advantage as physical

retailers fight to stay relevant to the digital shopper.

To sync the offline and online worlds, experts urged

marketers to adapt local market strategies from data

provided online and through CRM. For example, if a

shopper researches a product online and then buys the

product in-store, retailers should attempt to sync their

data so that the same shopper isn’t served a digital

banner ad for a product they already purchased.

The importance of staying active and connected

through all stages of the purchase cycle will help

consumers (1) become aware of the brand, (2) have

an enhanced shopping experience and (3) be

reminded to come back again.

THE HUMAN ELEMENT In the retail space there is one indispensable factor,

humans. Interaction cannot be replaced. Even though

information is available at a customer’s fingertips, their

desire for customer service is not diminished.

Purchasing power in recent years has shifted to

influencers, such as bloggers. Consumers view them

as a trusted friend and value their opinions.

Redefining Retail E-commerce has dramatically changed the retail landscape in

recent years. However, the need for marketing communications

to move their audiences along the purchase cycle from product

discovery to purchase has not.

KEY TAKEAWAY Sync traditional and digital to connect the dots along the consumer journey and provide an immersive, connected brand experience.


NIEMAN MARCUS – SNAP FIND SHOP Nieman Marcus has an app, Snap Find Shop, that

catalogues each product it offers in a similar fashion to

Pandora’s music genome project. When a user submits

a photo, the app will scan the database so the

consumer can purchase the same item (if offered by

Nieman Marcus) or an item believed to be similar.

Nieman Marcus says the app is a success and is 85%

accurate at providing product recommendations the

consumer will like and keep.

Brands who are Redefining Retail

GAP – STYLD.BY Gap replaced their store catalogue with a user-

generated content site called Styld.By. Gap knew their

consumer wanted to view product on real people, not

models. They also knew people don’t wear an entire

outfit from one store. So Gap combined these two

insights to create a user-generated experience that

resonated with consumers.

Overheard @ SXSW “THE STORES OF TOMORROW ARE GOING

TO BE THE CATALOG OF TODAY.” - Jennifer Hyman, CEO, Rent the Runway

“YOU HAVE TO PUT THE AUDIENCE FIRST, NOT THEIR DEVICE.”

- Amy Webb, Founder of Webb Media Group

“PEOPLE DON’T MIND ADVERTISING IF YOU PROVIDE GREAT CONTENT.”

- Pete Cashmore, CEO, Mashable

Our favorite stunt at SXSW was #MophieRescue. Loveable St. Bernard’s would come with Mophie phone chargers if you tweeted the hashtag. It was a big hit with SMG resident dog-lover Olivia Jahn.

LISTENING TO THE CONSUMER To create an experience that will be adopted

positively by consumers is by listening before

implementing. Using tools like social listening

platforms can show what consumers are already

asking for from the brand and it can also help

marketers get an idea of how consumers are

interacting with the brand on their own. One panel

noted a big step in the right direction is possible now

to a partnership between IBM and Twitter which will

allow IBM’s super-computer, “Watson” to intake social

data and implement sentiment tracking.

WHY DOES YOUR DATA MATTER? When putting together a campaign using big data,

marketers must first figure out what the data

provided means and how it can be utilized to

enhance the way consumer’s interact with the brand.

Good examples of brands that take this strategy to

heart are not the ones who go viral and are forgotten

about within a week.

The truly good examples are ones that stand the test

of time and use data to be a force of change. Take

Waze for example: What could be a simple map tool

has transformed the way people drive. It utilized all

the available data about traffic, and improved an

everyday task by personalizing to each driver.

Frictionless Consumer Experiences… Powered by Data

The ability for companies to turn impersonal data into personable messages will become a

sweet spot for marketers over the next couple years. The brands on the forefront of this trend

are already finding ways to catalogue their products and message to consumers in ways that

are building loyalty and larger baskets.

MAKING DATA HUMAN Adapting new technology and gathering data is the

easy part for most marketers. What tends to be

missing though is the human element. When dreaming

up new media strategies, it is easy to put on the

marketing hat and forget why our communications

matter to our consumers.

Consumers want their phone or mobile apps to

enhance their experience while shopping instead of

being sold to. They prefer to have product information

be transparent when they are viewing product ratings

and reviews.

KEY TAKEAWAY Brands can no longer rely on one-way messaging, they must listen and engage with the consumer. By harnessing consumer data, brands have the opportunity to provide rich, personalized experiences that reinforce messaging.


“Mobile is there to solve a problem for both the brand and consumer. If it doesn’t accomplish both, it will fail.” - Laura Heller, Forbes

hours that you have for a consumer to open an app or it will likely never

be used.

24

of all online sales were placed on mobile devices, up 27.2% from the

same period in 2013. -IBM Digital Analytics

22.6%

Of people 14-24 prefer watching television programs on a screen

other than the television. For individuals 25-30, around 47% prefer

to watch on a different screen. -Deloitte

56%

Millennial women pre-shop online. Some consider it like “pre-gaming,” or to put it in marketing terms “pre-

optimizing,” for the best in-store experience.

-Refinery29 & The Futures Company Joint Research

2 out of 3

“We are all digital humans at this point.” - Joel Beckerman, Founder of Man Made Music


BALANCED DREAM-DRIVEN LIFE Millennials are confident individuals that embrace

their individuality. Leveraging all the resources at

their disposal, these individuals strive to make

marked progress toward personal, financial and career

goals on a day-to-date basis. 80% of Millennials believe

they can achieve their goals and feel they can reach

success on their own terms.

ARTFUL SHOPPING Millennial-minded individuals are powerful shoppers

who make decisions based not just on emotion, but

on informed research. Millennials feel a pride of

ownership and rocking their own personal style.

While price-conscious, they also like to invest in key

items. A Refinery29 study found that 68% of

Millennial women will find a way to buy an item they

love, even if it’s out of their budget. In their eyes, if

the cost per wear is good then it is worth the splurge

or they will find ways to off-set high-end items with

less costly pieces to create an artful ensemble.

SCREENS ARE THE NEW STOREFRONT Smart devices and digital platforms play a critical role,

often merging online and offline shopping into one

core experience. Roughly 2 out of 3 shoppers are

using the internet to get inspiration prior to shopping

in-store. They are snapping pics on their phones and

asking friends for an opinion on what to choose; they

are also searching for online coupons and much

more—all while in-store.

Marketing to Millennials

Millennials are not just a demographic to market to. It’s a mindset. The Millennial mindset is

rooted in optimism. This optimism originates with access to technology and it fuels the desire to

live the best life possible. The term Millennial can now be used to reference anyone who shares

this state of mind, regardless of age.

VIEWS ON ADVERTISING It’s no secret that Millennials do not want to feel

advertised to. They are drawn to brands that provide

inspiration and create experiences. The brands that

are really excelling at this are showing products used

in new and unexpected ways.

McDonald’s had a large brand presence at SXSW, a

presence that was expected to receive negative

feedback by Millennials attending SXSW. However, by

positioning their tent as a charging station and a place

to share digital images, they made users rethink how

they thought about the role of McDonald’s in their life.

KEY TAKEAWAY Millennials aren’t interested in one-way advertising. Brands that tap into shared experiences and provide wisdom-oriented messaging will help to capture the attention of this audience.


DESIGNING YOUR CONTENT When considering your narrative, it is important to

tailor the content in a manner appropriate to the

intended audience and for the desired outcome.

Simplicity is key—this includes layout and color. No

more than five colors should be used in a single

layout. Color should be used sparingly to highlight

important information.

Data should also not overwhelm the reader with

multiple graphs of single data points when one

combined will suffice.

THE VALUE OF VISUALIZATION The efficacy of visualization can be broken into three

core areas of value: appeal, comprehension and

retention. Well-designed information appeals to our

need for stimulating, attractive and engaging

qualities. Aesthetics are not superficial; they are how

you get people’s attention.

The brain is pre-wired to comprehend relationships

between objects. Describing relationships visually as

opposed to describing them verbally, ensures your

message is understood quickly. Additionally,

visualizations trigger our long-term memory, helping

aid in cementing your concept in the brain.

SHOW, DON’T TELL Decisions are increasingly data-driven, so it follows

that most of our communication must include data.

The true value of data visualization lies in its ability to

help you show—not just tell—your story.

Visual Data

Big data was the big buzzword at SXSW. However, our current method of data collection is

outpacing our ability to tell a story with it. With the wealth of data available, marketers and

decision makers are now facing information overload and processing fatigue. Visual storytelling

is quickly becoming the marketing skill of the future, answering the visually-wired way our brains

work and appealing to human emotion.

“Attention is the new currency.”

- Jason Schlossberg, CCO, Kwittken + Company The Case for Design Thinking in Communications


3 Tips For Designing Effective Visual Business Communication

450

500

550

600

JAN FEB MAR 0

250

500

750

1000

JAN FEB MAR

The eye is easily deceived; make sure

data is presented accurately as not to

skew data. A bar chart should always

start at zero.

1 | PRESENT DATA ACCURATELY Wrong Correct

Although this chart shows an

impressive 100% increase in sales, a

more comprehensive data set shows

it’s minor compared to the significant

drop the year prior.

2 | AVOID ISOLATING DATA

2012 2013

$ 2M

$ 1M

2010 2011 2012 2013

$ 1M

$ 2M

$ 3M

$ 4M

Wrong Correct

Avoid unnecessary design, including

3D charts, ornamental illustration or

extraneous elements.

3 | PRACTICE SIMPLICITY

61,569,669 FANS

43,280,066 FANS

43,280,066

61,569,669

Wrong Correct


THE BIG THREE DRONES, 3D PRINTING AND VIRTUAL REALITY

Three technologies could either change everything

about the world or disappear with little effect. While

everyone at SXSW seemed to be talking about drones,

3D printing, and virtual reality no one could seem to

agree about their overall longevity.

Will 3D printers undermine and disrupt the entire

manufacturing industry? Or will they just be that

technology that makes for a good cocktail story?

Will drones change healthcare and delivery systems to

bring enhanced efficiencies? Or will they remain toys?

Many seemed to think they were too disruptive to

consumer lives to create much impact.

Will virtual reality create an alternate universe that

parallels real life and literally turns life on its head? Or

is “real” reality good enough?

These were some of the most exciting questions

technology questions being asked right now and will

be interesting to see how they play out.

Trending Tech

MEERKAT Meerkat was the app that broke through the noise

and took everyone’s attention at the show. Users

connect via Twitter and can live-stream via their

mobile devices or view and comment on another

user’s stream.

Meerkat was the first company that’s cracked the live-

streaming code. They made it easy for anyone from a

tech guru to your grandmother to use it easily and

effectively. Expect trade shows and conferences of

the future to all be using this technology.

Twitter launched a week later with their new app,

Periscope, that is essentially the same thing.

However, Meerkat got everyone’s attention at SXSW.

In just one day, there were 15,000 streams with more

than 200,000 people tuning in.

QUANTIFIED SELF The Quantified Self has been a trend that’s been

discussed for a few years now. However, this was the

first year that wearable technology is more of a

reality used, with the health data provided becoming

even more granular.

The new world of wearables will track and record

health and fitness statistics, provide haptic feedback

to aid in seamless integration with mobile devices

and even stabilize body temperature for us.


sxsw 2015 report - southwest media group

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