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Canada Trends 2016

Paul BriggsAnalyst, Canada

December 3, 2015


Marketers in 2016 will turn to

creative new applications of technology to capture the attention of consumers and

target them more effectively. consumers are changing their behavior, and marketers need to take note.

To gain and keep their attention, marketers will need to be more tech-savvy than ever.


What I’ll Cover Today

� 6 marketer trends in 2016� 4 consumer trends in 2016


Marketer Trends


1. The Internet of Things (IoT) Will Become a Rich

Data Source for Marketers


By 2018, the IDC expects there will be 114 million IoT connections in Canada


Big Data from the IoT will be invaluable for marketers

“Today, we're inferring behavior from data. With the internet of things, it's not inferring behavior from that data, it's confirming behavior from that data.”

—Dré Labre, partner and creative director, Rethink Canada


2. Immersive Content Will Go Mainstream


360-degree video and

virtual reality (VR) will become mainstream for content marketers,

who will use it to deliver more compelling content than ever before.


Parachute School of Toronto

https://www.youtube.com/watch?v=fzTecwDiMlU


Enhanced video offers a more engaging consumer experience

“Virtual reality and 360 video can be super-immersive and give you as close to a real experience as possible. One of the things we’ve been noticing with VR and its development is it’s a lot about documenting scenes, documenting actions. But it hasn’t really gotten to the point yet where people are telling stories. I think we’ll see that in 2016.”

—Hiep Vu, executive producer, Round Content


3. Outdoor Advertising Will Get New Life—By Going

Digital and Personal


Out-of-home advertising is undergoing a transformation

� Digital out-of-home (DOOH) promises a much more compelling engagement with passersby

� Brilliant LED displays, videos, interaction with smart devices and even personalization

� For real-time and live marketing, DOOH has the potential to be extremely effective


Magna Global expects DOOH ad spending in Canada to jump 19.7% this year and grow a further 11.4% in 2016


4. The New Utility of Beacons


Nearly 30% of retailers worldwide have deployed beacon technology. In Canada, it is estimated at 12%


The new utility of beacons is collecting consumer data

“Beacons first and foremost serve as a way to help the retailer understand traffic flow patterns within their environments and where the dwell time is. Secondarily, they’re being used to send notifications to the shoppers.”

—Asif Khan, founder and president, Toronto-based Location Based Marketing Association


5. Programmatic Will Reach New Heights


In 2016, 58.0% of total digital display spending in Canada will be programmatic, with about half coming from API-driven ad delivery on social networks


By 2017, mobile programmatic will exceed CA$1 billion and represent 67.9% of all programmatic digital display ad spending


6. After a Big Dip, Email Marketing Is Ready for Its

Comeback


Legislation has sharpened email marketing tactics in Canada

“The death of email has been prophesized for probably 15 years. But in fact, it continues to grow. More consumers are subscribing to more newsletters. Email is getting more accurate, it’s getting more targeted, it’s getting more segmented. So that’s where I think the resurgence of email has come from.”

—Matthew Vernhout, chief privacy officer, Inbox Marketer


Open rates in Canada climbed to 26.2% in 2014, and bounce rates are falling


The CASL Chill

Cloudmark Study concluded that in the 8 months following CASL enactment:� Residents in Canada received 29% less email � Reductionof spam originating from Canada by 37%

High profile fines:� Porter Airlines, PlentyofFish, Compu-finder, Rogers


Consumer Trends


1. Mobile Time Spent (nonvoice) with Media is

about 2.5 Hours Daily


In 2016, mobile will account for more than 25% of daily time spent with media by adults in Canada


The increase in mobile time spent is driven by mobile consumption on devices like smartphones and tablets


2. Wearables Set to Expand the Mobile

Experience


About 1.5 million wearable devices shipped in Canada in 2015, according to the IDC. It expects shipments to reach 3.6 million by 2019


Wearables are a promising avenue for marketing messages, but there are risks

“Where I see an opportunity is the ecosystem you build around the wearable itself. The way you use the data to create experiences outside of that object or that wearable. And this is where I’ve seen opportunity for advertising.”

—Alexis Robin, associate director, lg2


3. Streaming: More Consumers Will Cut the

Cord . . . and the Antenna


Streaming is moving closer to the center of the big media battle in Canada


An April 2015 survey found that almost one-third of consumers in Canada who owned streaming media devices used them daily


A Q2 2015 GlobalWebIndex survey found that Canada ranked third internationally in Netflix usage, behind Mexico and Brazil


Streaming service providers offer rich targeting data in ad products

“We are able to offer targeting based on registration or first-party data. When our users register, they are providing their age and then their location based on their IP address. So the targeting becomes very, very robust.”

—Jon Hales, Canada country anager, Spotify


4. Voice Search Mobile Will Transform Behavior


Investment in mobile search advertising in Canada will surge 55.1% in 2016 to pass CA$1 billion


Recap

� 6 marketer trends in 2016– IoT - The New Utility of Beacons– Immersive Content - Programmatic– Digital Out-of-Home - Email’s Comeback

� 4 consumer trends in 2016– Time with Mobile - Wearables – Streaming - Voice Search


For more information on this subject, see the related report at

Thank You!

Paul BriggsAnalyst, Canada

December 3, 2015