Top 10 Trends Predictions for 2011

December 2010

REPORT BY

Table of Contents
Section 01: Mobile Payment for All Section 02: The Rise of Hands-Free Feedback Section 03: App Based Hardware Domination Section 04: Signing in to Your TV Section 05: Our Heads in the Clouds Section 06: A Content Crossroads Section 07: Independence Day for Brands Section 08: The Social Message is the Medium Section 09: The Search for Mobile is On Section 10: Lets Get Physical About Moxie

Table of Contents

Executive Summary
2010 was a year of accelerated change in technology, entertainment, gaming, business, marketing and social connectivity. The confluence of smart phone adoption, digital video consumption, tablet computing and connected devices combined with the launch of the 4G wireless networks laid the foundation for innovation to kick into higher gear in 2011. We conferred with industry experts and influential business leaders shaping these changes and posed one simple question to them: What will be the biggest trend in 2011? Their opinions and our predictions shaped what we believe will be the top 10 trends to look for next year.

About Moxie

Mobile Payment for All

Section 01

Section 01: Mobile Payment for All

M-commerce has been a trend on the horizon for many years now, just as the last five years have been deemed the year of mobile advertising.
We have been patiently awaiting our cell phones to replace our credit cards, just as they replaced family pictures in our wallets. In 2010, established players such as PayPal introduced mobile commerce apps both on smart phones and in retail environments. 2011 will continue this trend. However, advances in Near Field Communication and an onslaught of other software-based mobile solutions will bring the mobile wallet to the masses. Your mobile phone will enable you to split a bill for a dinner with your friends or pay for that new pair of jeans in your local mall.

Section 01: Mobile Payment for All

PayPal has paved the way for future mobile commerce developments slated to be seen in 2011 with such developments as the release of its Mobile Express Checkout system. This two-click payment system has been integrated into the

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

functionality to allow customers to reload their Starbucks loyalty cards from within its existing app.

PayPal is also integrating mobile payment solutions in the retail space. PayPal Labs in Japan has created a vending machine experiment that lets users scan an

attached QR code with a smart phone, then users can pay for the goods with
funds in their PayPal accounts. The vending machine then tweets the purchase as a confirmation. Similarly, eBays RedLaser mobile app allows users to scan items in-store to discover lower prices or further information.

Section 01: Mobile Payment for All

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

Making NFC technology possible has been a struggle thus far due to lack of infrastructure, but will continue to mature in the coming year. National phone payment network Isis will be a major player in making this speculation come to fruition. The network includes partners such as Verizon Wireless, AT&T and TMobile and could potentially reach the wireless carriers' combined customer base of 200 million U.S. customers. When these consumers are enabled with NFC-capable devices such as Googles latest flagship smart phone, the Nexus S, we will see this technology take off, becoming an established payment method.

Section 01: Mobile Payment for All

We will also see more small businesses using mobile solutions such as the Swipe It Reader for the iPhone to collect payments.
This could eventually trickle down from small business integration to personal payments as well. According to Dick Costolo, CEO of Twitter, there is a good chance that you will pay your babysitter on next year's New Year's Eve using a credit card. Many more people will be able to accept credit card payments using their mobile phones.

Section 01: Mobile Payment for All

Implications for Brands

With the development and expansion of these existing and emerging technologies, consumers will have the ability to purchase goods and services with fewer obstacles and will have a higher level of control over the way they make these purchases.. This will stimulate e-commerce, m-commerce and instore sales. The innovative payment options available in 2011 will foster not only positive public relations for large corporations and start-ups but will also provide a way for consumers to select their merchants of choice based on ease of purchase.

Section 01: Mobile Payment for All

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

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Section 01: Mobile Payment for All

The Rise of Hands-Free Feedback

Section 02

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Section 02: The Rise of Hands-Free Feedback

Location services on smart phones have shown the power of data to open up new services to consumers.
In 2011, new services will leverage data from the smart phone, like the accelerometer for tracking physical activity. The Tasker app for Android is an example of how location can be used to automate a phones behavior: switching to silent when in a meeting, hands-free when driving in a car, and other automated and location-driven settings. Feedback on user health, purchasing patterns and even the environment will give businesses the data needed to further solidify the smart phones position as the Swiss Army Knife of information.

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Section 02: The Rise of Hands-Free Feedback

For years, people have been promoting a vision of the world where upon walking into a location you are instantly delivered deals and promotions.
That vision is alive today, brought to us by geo-fencing services from companies like Location Labs and Placecast, which place a digital fence around a location allowing the service to push promotions to smart phones that enter the area. Some users may be turned off to the idea of instant alerts that turn their smart phones into mobile pop-up ads. However, a major driver in location-based service adoption has been mobile couponing. According to eMarketer, 32 percent of U.S. Internet users are open to accepting automation for coupons, showing resistance to geo-fencing may be lower than anticipated.

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Section 02: The Rise of Hands-Free Feedback

Thinking beyond couponing and location, new possibilities for mobile feedback loops will emerge in 2011.
The declining cost of wireless sensors combined with high-speed mobile data through 4G and WiMAX will encourage more industries to get involved in

mobile. This will introduce devices other than phones and computers that
deliver new services by sheer virtue of linking a sensor to a wireless connection.

Linking bio-feedback to mobile devices for remote health and fitness applications will become more widespread and will give users more insight into their health and the impact of their decisions. The FitBit is a great example of how an unobtrusive, connected device could change lives. The simple device is clipped anywhere on a user, such as in a pocket or on a belt loop, and then uses a simple accelerometer to track physical activity throughout the day. It also contains WiFi, so this accelerometer data is automatically uploaded to FitBits services to provide real-time feedback on number of steps taken through the day, length and quality of sleep, and more.

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Section 02: The Rise of Hands-Free Feedback

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

Implications for Brands

The rising sea of sensors is creating a deep well of audience information that marketers will use to find and connect with their ideal consumers. Additionally, the interfaces and consumer-facing feedback delivery systems could spawn a new breed of media placements that are tied to personalized information.

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Section 02: The Rise of Hands-Free Feedback

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

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Section 02: The Rise of Hands-Free Feedback

App Based Hardware Domination

Section 03

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Section 03: App Based Hardware Domination

300,000 apps in the Apple app store. 100,000 apps in the Android Market. Blackberry App World has 10,000 apps.
In 2011, users will find themselves in a constantly expanding market of mobile apps that promise to improve their lives through productivity or entertainment. Experienced smart phone users will be looking for intuitive

apps to extend into other parts of their lives. Major consumer electronic
manufacturers like Ford and Samsung have already considered this shift in user experience and have begun development on app-enabled products.

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Section 03: App Based Hardware Domination

The current mobile phone app user is younger, more educated and more affluent than the average mobile phone user.
--Pew Internet Survey - September of 2010.

On average, these users have 18 apps that are both free and paid for, the most popular being games, news/weather, maps/navigation, social networking and music. Samsungs Free the TV Challenge, where contestants create an app for use on specialized Samsung TVs and Blu-ray devices, targets these users and their app-centric expectations. Applications created for this contest include We-draw, a Pictionary-esque game that uses your mobile phone as the remote, and Guroo TV, which creates a list of the shows most talked about on Twitter and other social media platforms.

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Section 03: App Based Hardware Domination

Web browser apps are another area of growth.

Google launched its Chrome Web Store, which houses over 500 applications, in December, 2010. Partnerships worth noting include Gilt Group, a group discount membership network, and NPR, where custom views of information offer a tablet-like experience on your PC. Googles move to provide apps for Chrome users further shows that people will be expecting intuitive, specific experiences not only on mobile devices but on their PCs as well.

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Section 03: App Based Hardware Domination

The app world has also started to infiltrate the automotive industry.
Carbonga is a mobile app that tells drivers why the check engine light has come on and is available to any person with an app-enabled device. However, car manufacturers are seeing this area as a way to differentiate their products from competitors and are building apps directly into their vehicles. Ford is leading the charge. Their Sync Applink system offers a Web connection and open platform in their cars, extending the services and value they provide their customers.

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Section 03: App Based Hardware Domination

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

Consumer excitement for apps has gotten the attention of developers, and we will see this enthusiasm lead to app development for as many products as possible. The development of applications that are optimized for these new environments will open up new opportunities to reach end users. The companies that are slow to embrace the app culture will be left behind.

Implications for Brands

Brands will need to keep in mind that any app they produce, no matter the channel, needs to be inexpensive, easily accessed and light on the processor load. Customers wont take well to brands who kill their battery on a regular basis, no matter how useful the app. In addition, brands should consider that apps will break free from mobile phones and tablets and will be more commonly integrated into such things as refrigerators and cars.

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Section 03: App Based Hardware Domination

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

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Section 03: App Based Hardware Domination

Signing in to Your TV
Section 04

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Section 04: Signing in to Your TV

Family viewing will no longer be the gatekeeper to television audience measurement as the line between television and the Internet continues to blur in 2011.
Cordcutting consumers abandoning traditional TV access in favor of Internet alternatives is now an option that Americans are taking more seriously as home theater PCs, game consoles, and new Internet TV initiatives like Boxee and Google TV make it easier for users to access online content from their sofas.

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Section 04: Signing in to Your TV

The foundation of this shift is the appearance of connected TVs in consumer homes.
Nearly 28 million connected TVs were shipped to stores in 2010 and 148 million are expected to ship by 2014 according to iSuppli. And those numbers dont take into account existing gaming consoles and Blu-ray players that have Internet connectivity baked in.

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Section 04: Signing in to Your TV

The second driving force is the emergence of connected TV applications that ask users to sign in.
This will allow content providers to tie viewing habits to consumer profiles, unveiling a completely new layer of data regarding who is watching what. And viewers will benefit too. By incorporating user preferences along with qualities such as geography and viewing habits, television can provide a customized experience.

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Section 04: Signing in to Your TV

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

Implications for Brands

In the coming year, addressable advertising on TV will become a reality. Connected TVs will allow marketers to tailor their message specifically for the audience at hand while also providing detailed measurement of viewer

interaction. Think in terms of what banner advertising targeting and analytics look
like today. Additionally, the value of advertising space on TV will increase, in part due to the value added by sophisticated measurement and in part because more accurate measurement may reveal that space around certain programming has been underpriced.

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Section 04: Signing in to Your TV

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

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Section 04: Signing in to Your TV

Our Heads in the Clouds

Section 05

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Section 05: Our Heads in the Clouds

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

Cloud computing is an up-and-coming method of content storage and retrieval that lets users shift content to and from multiple devices whether they be personal computers, servers or otherwise. This is creating a novel notion in the consumer market that free-range, digital content should have the ability to move fluidly rather than being tied to one device. We will see this idea continue to catch on across various industries and in marketing efforts in 2011.

Cloud-based services are not a revolutionary concept. We have been tinkering with the idea of shared content amongst devices since the 1960s when computer scientist, John McCarthy, speculated that computation may someday be organized as a public utility. This suggestion has now become a reality. Overall, the global market for cloud-based services is expected to grow over 100 percent, from $68 billion in 2010 to nearly $150 billion in 2014. This increase is a stunning marker of what the future holds.

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Section 05: Our Heads in the Clouds

This trend is unfolding across a number of industries.

In the entertainment industry, Netflix and Hulu have become popular cloud alternatives to traditional film and television houses and both are expanding to mobile devices. Internet-based programming from such services as Apple TV, Google TV and Boxee are providing similar options. In the music industry, Apple and Google are facing increased pressure to move their music into the cloud as competitors like Rdio and MOG offer consumers subscription-based music available directly on smart phones.

The gaming industry will also be heavily impacted by cloud computing. Services such as OnLive are expanding internationally and competitors GaiKai and OTOY are not far behind. At the same time we are seeing a decline in the dominance of gaming consoles such as Microsofts Xbox and Sonys PlayStation. During the first six months of 2010, more video games were purchased and downloaded from the cloud than were bought in actual retail stores, which was an industry first.

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Section 05: Our Heads in the Clouds

Services provided by such titans as Amazon are also based on cloud computing.
Popular political news website Wikileaks uses Amazons Elastic Compute Cloud to easily scale server storage due to traffic spikes from the shocking nature of the content. Zyngas FarmVille would not have survived without the same service, which provided a way for the company to increase server storage space as the game gained users and became the first to garner a stunning 10 million daily active users.

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Section 05: Our Heads in the Clouds

Implications for Brands

Cloud computing will become exponentially more relevant in the marketing industry in the coming year. Cloud-delivered content will carry seamlessly blended marketing efforts that consider both the audience and the delivery of content to multiple devices. Marketing efforts will appear to be more organic and thus more effective as cloud-based computing continues to flourish with the onward progress of 2011.

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Section 05: Our Heads in the Clouds

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

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Section 05: Our Heads in the Clouds

A Content Crossroads
Section 06

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Section 06: A Content Crossroads

Consumers will continue to find themselves helpless in overcoming information overload in 2011.
The spread of more entertainment to the Web is creating a higher demand for better search engines and is leading to the rise of Web curators people who build large online followings by finding or producing the best content the Internet has to offer. A combination of these individual curators and technologies that help to determine and deliver recommendations to end users will grow in importance. This will lead to a new age of online content that turns searches into meaningful discoveries.

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Section 06: A Content Crossroads

Search has long been the dominant mode of discovering content on the Web, but now algorithm-based recommendation systems have become the go-to source for discovering new forms of online content, from Pandora for music to Netflix for film.
Such companies are reverse engineering the souls of their users by analyzing users content ratings and then matching that profile with similar users. Sites like Hunch.com are making it easy for users to get recommendations and gift ideas by building taste graphs of the products, media and services they strongly prefer.

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Section 06: A Content Crossroads

Though privacy concerns will increase as services expect more information for better recommendations, the trade off for many people will be worth the cost highly relevant, engaging content recommended to you in exchange for giving a computer program some basic information about what you like.
The overwhelming amount of content moving online will make this data exchange a nobrainer for most consumers. The challenge for brands will be to find content curators that users trust. Brands will also have to keep their messaging relevant and authentic to maintain participant engagement. An excellent example of how a brand worked with content providers to engage users is Intels partnership with Vice Magazine for The Creators Project. The online experience guides users through video profiles of some of the most creative, unique individuals at the crossroads of art and technology and leveraged sites like BuzzFeed to promote the campaign.

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Section 06: A Content Crossroads

Curation services are also becoming personalized, automated content aggregators that are able to learn user preferences on their own.
My6sense is an RSS reader for mobile devices that simplifies the user experience. It learns how the app. has been used in the past and makes adjustments to present content that it knows the user will read. By capturing information on what interests their users, My6sense has been able to create one of the more sophisticated curation engines. We can expect more companies to begin playing in this space in 2011, which will significantly expand options and specialty services.

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Section 06: A Content Crossroads

Implications for Brands

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

UGC?

Brands that embrace the opportunity to not only generate but also sponsor content will see a big return. Furthermore, the days of the big, easy media buy are coming to a close. The Internet has already pushed advertisers to arrange placements in a wider range of media outlets, but the emerging curation model

will further sharpen the attention of audiences and force the marketing world
to work harder to reach their target consumers.

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Section 06: A Content Crossroads

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

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Section 06: A Content Crossroads

Independence Day for Brands

Section 07

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Section 07: Independence Day for Brands

While most websites are looking for ways to integrate data from services like Facebook, Google or Twitter more deeply into their content and services, a growing list of sites are differentiating themselves by creating an online presence that gives the users more control over how they are tracked and profiled.
Online privacy issues gained mainstream exposure in 2010 and will become a more hotly contested issue in 2011. Users will look for new ways to control the use of their personal data or simply go to sites where they are in control. This simple approach of handing control of data back to users will draw unique audiences that brands will have to reach without help from major online data brokers and targeting services.

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Section 07: Independence Day for Brands

Today, if brands want to engage with online social media audiences they often push their messaging through Facebook or Twitter in large fan acquisition sprees.
Users don't want to feel like some creepy algorithm already knows everything
about them or that theyre simply being used for their personal data mine. Brands will need to link social strategies back to their larger 360-degree strategies to create a space for participants to get to know their brand. In the past few years, big brands have been encouraged to join the conversation in social media; in 2011 they are going to need to get cozy and invite participants back home for drinks.

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Section 07: Independence Day for Brands

Brands will also gain more independence from mobile device fragmentation.
New development tools like Sencha make it easy to optimize rich-media sites for mobile sites. This allows brands to break free from app stores, create permanent mobile Web presences that take advantage of technologies like HTML5 and Flash and put the weak mobile sites of the last decade to shame. Brands will no longer have to meet the unique demands of a proprietary app market and instead will be free to create unrestricted mobile experiences that appeal to mobile users who expect more from their mobile browsing experience.

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Section 07: Independence Day for Brands

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

Implications for Brands

Marketers will need to work with a larger selection of partners to reach the consumers that frequent independent websites. However, they will benefit from a wider range of creative options. Marketers will also benefit from access to the data that site users provide and will have more flexibility when developing mobile applications and websites.

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Section 07: Independence Day for Brands

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

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Section 07: Independence Day for Brands

The Social Message is the Medium

Section 08

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Section 08: The Social Message is the Medium

Brands will begin looking for new media placements that leverage social activities and interactions rather than simply looking for placements with impressive audience size.
Charting the success of a campaign already involves analyzing social media for many brands. Now instead of simply tracking buzz about a campaign, companies will provide analytics on consumer activity and engagement as well.

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Section 08: The Social Message is the Medium

A good example is the check-in. It can be used to measure a campaigns overall success and could help to tailor an execution to locations that see high levels of mobile activity rather than foot traffic. This way of thinking activity levels as media buys will become popular as the spread of social games like Zyngas FarmVille and game-like rewards programs open brands minds to the concept of active users instead of impressions.

FarmVille was the toast of the social gaming world throughout 2010 and was unsurprisingly a leading platform for innovative social media advertising.
Earlier this year when players chose seeds for their farm, they were offered branded seeds by sponsors such as Cascadian Farm, a line of organic foods from General Mills.

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Section 08: The Social Message is the Medium

On the mobile front, social brand integration specialists appssavvy designed a campaign for clothing retailer H&M. They rewarded players of MyTown (a mobile social game, think real-world Monopoly) with virtual items and in-game

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

or hair salon.

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Section 08: The Social Message is the Medium

Entertainment check-in services such as Get Glue are another natural fit for advertising.
These services allow users to log and broadcast their consumption of media content. Benefits include recommendations and rewards based on activity as well as the opportunity to discuss the content with friends and strangers. In terms of advertising, television shows and music can be tied to psychographic profiles much as they are for traditional television advertising. But in this space, users are engaging in traceable behavior that can be used to trigger specific messages and experiences.

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Section 08: The Social Message is the Medium

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

Implications for Brands

This shift will open up several opportunities for marketers. Social activity

placements will be more effective as they are tied to actions rather than
viewership, and these placements facilitate more sophisticated results reporting. This will allow marketers to be more confident that their money is being spent effectively. Also enhancing the psychographic audience profiles marketers build through focus groups and third party research.

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Section 08: The Social Message is the Medium

Were going to see a shift from buying the medium content sites like Yahoo! and MSN, and social sites like Facebook and MySpace to buying the activity. [Its] the quiz app I'm using on my iPhone, the social game I'm playing, me checking in to let my friends know where I am, or talking about the things I care about in an online community. 2011 will be the year brands learn how to buy social activity.
Chris Cunningham, CEO of appssavvy

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Section 08: The Social Message is the Medium

The Search for Mobile is On

Section 09

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Section 09: The Search for Mobile is On

Mobile search will become even more important in 2011 as marketers begin to think of it in ways beyond the Google query.
In retail, shoppers have turned to barcode scanners as a way of searching for other prices and online deals before checking out. Travelers and locals alike are turning to location-based services to fuel local discovery of hotspots and unique locations across the globe. Consumers worldwide are seeing the definition of search expand before their eyes. Search now encompasses a variety of activities not traditionally associated with the term and advertisers will need to adjust as well.

SEARCH

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Section 09: The Search for Mobile is On

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

Barcode technology provider ScanBuy reported that usage of their platform grew 700 percent between the start of 2010 and the beginning of the fourth quarter. In addition, a multitude of start-ups have emerged, which put varying spins on the idea of mobile search via barcode scanning. ShopWell, for example, collects user information such as health goals, diet approach and allergies, then provides personalized ratings for products when they are scanned in-store.

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Section 09: The Search for Mobile is On

The potential for further innovation in this area is huge.

Checking in to get a free coffee at Starbucks is a nice evolution on targeted
coupons, but it's only the beginning of the opportunity in mobile for marketers looking for performance marketing opportunities, Daina Middleton, CEO of search marketing agency Performics, reported.

Geo-location technology offers another fruitful path to innovation in mobile search. In 2010, Google introduced a near me now option in Google Mobile and Android. This feature allows users to browse nearby locations without entering any information themselves. Their phone simply uses GPS to figure out where they are.

And according to Middleton, mobile search will grow quickly by traditional measures in 2011 as well. Mobile search clicks will double to 16 percent and mobile conversion rates will double to 10 percent year over year.

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Section 09: The Search for Mobile is On

The growth patterns of traditional and alternative mobile search share common roots.
Increasing smart phone adoption means that consumers are becoming more accustomed to the tools, and innovators have more incentive to come up with game-changing ideas. In 2011, more marketers will begin to recognize the potential of mobile as a discovery engine that can drive purchases and foot traffic.

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Section 09: The Search for Mobile is On

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

Implications for Brands

These new developments in mobile search have transformed a national market into a multitude of local ones. Major marketers need to start working from the grassroots level by adjusting their message and placements to local audiences and market conditions. Additionally, marketers that aggressively pursue alternative methods of search will be rewarded by impressive share of voice and exposure in the affluent early adopter market.

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Section 09: The Search for Mobile is On

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

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Section 09: The Search for Mobile is On

Lets Get Physical

Section 10

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Section 10: Lets Get Physical

2011 will bring a revolution in the way participants will interact with a multitude of inhome, mobile and out-of-home devices, providing groundbreaking marketing opportunities.
We have already come a long way. The success of the Nintendo Wii led to a push in 2010 by Microsoft and Sony to launch their Kinect and Move gesture controls and companies will continue to develop on these flagship physical platforms.

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Section 10: Lets Get Physical

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

1,000,000 SOLD

This number is an astonishing signal that consumers not only have a keen interest in gesture-based technology, but are also willing to invest in it and encourage friends to join the fun. PrimeSense, one of the companies behind the Kinect technology, is planning to launch a gesture-controlled set top box in the summer of 2011 and has secured at least one cable company partner, demonstrating the forward progress in this segment. Glove and marker-free gesture control for multiple users has also been shown to be possible by Fraunhofer's FIT. Their software can not only detect multiple people, but can also distinguish details such as users finger motions.

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Section 10: Lets Get Physical

Large companies are not alone in developing gesture-based interfaces.

Students at MIT Media Labs Fluid Interfaces Group have developed a Web browser extension for Kinect that allows users to surf the Internet with gesture controls. Members of the open-source community are also experimenting with various ways of hacking the Microsoft Kinect. The open-source software that these developers have created could potentially be beneficial for search and rescue missions, mental health advancements, 3D modeling, and visual art and puppetry. This further highlights what is possible with motion tracking beyond the living room and in gestural-based digital out-of-home.

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Section 10: Lets Get Physical

2011 will also bring a new range of possibilities for gesture based technology in the mobile field.
Mobile movement-controlled hardware technologies are bringing down the physical barriers that divide the device from the user. Devices are also becoming more intelligent with software; the Microsoft Kinect can recognize a particular users voice, face and body movements, and we will only see further additions to this list with time. Software allowing for facial expression recognition could also lead to emotion-based gaming that monitors and responds to a participants reactions.

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Section 10: Lets Get Physical

What places the combination of gesture-based hardware and software at the pinnacle of innovation is its ability to bestow a feeling of artificial, super-human control.
The typical perception of how people are able to control hardware is crumbling
with the ability to use biological means the body as a magic wand to interact with mechanical devices of all kinds. This philosophy is portrayed in Arthur C. Clarkes third law of prediction, which states that any sufficiently advanced technology is indistinguishable from magic.

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Section 10: Lets Get Physical

Implications for Brands

Just as new user interfaces that leverage state-of-the-art gestural technology will climb to the top of the market, branded executions using this technology will also garner widespread attention and praise. Xbox has developed ads that can recognize the age and sex of viewers. This technology has already been

implemented in Japanese billboards. Physically interactive ads are the next step
for visionary brands, and will give their customers something to spread the word about as we move onward in exploring this digital frontier.

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Section 10: Lets Get Physical

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

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Section 10: Lets Get Physical

About Moxie
Moxie Interactive is creating the agency of the future, by fusing media, creative, and technology to achieve brave, accountable marketing solutions. Its capabilities include communications planning, media planning and buying, search marketing, branded entertainment, advertising and development, ECRM, sponsorship services and campaign management. At the heart of the agency is the Participants Intelligence department, providing Moxies clients with details on emerging trends, insights and analytics, so that clients can spark interesting, unique and fresh conversations with their customers. Moxie's award-winning team is focused on connecting people and brands across all screens. Some of our clients include Coca-Cola, Garnier, Maybelline New York, Puma, Verizon Wireless, 20th Century Fox, Cartoon Network and the Art Institutes. Moxie is a division of Zenith Media Services, a Publicis Groupe Company, with locations in Atlanta, New York and Los Angeles. To learn more about Moxie, visit www.moxieinteractive.com. You can also follow us on Twitter @YouveGotMoxie and on Facebook at facebook.com/moxieinteractive.

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About Moxie

Top 10 Trends for 2011

AUTHORS Rhiannon Apple, Emerging Trends Supervisor Emily Knab, Trendspotter Simeon Spearman, Trendspotter Greg Steen, Trendspotter

CONTACT
Christine Bensen, SVP, Participant Intelligence cbensen@moxieinteractive.com 2049 Century Park East Los Angeles, CA 90067

310-551-3529
2010 Moxie Interactive. All Rights Reserved

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About Moxie