Emerging markets into the future

Axel Steinman, Microsoft Advertising and Online VP, based in Seattle, in the US, says there are three main trends. “The consumer will never love advertising, but he/she can accept it and love the experiences on devices,” he says. (Image: Daniel Schwen, via Wikimedia Commons)

Axel Steinman, Microsoft Advertising and Online VP, based in Seattle, in the United States, addressed a small group recently at the Microsoft offices in Gauteng on the findings of global research by Microsoft which included many emerging markets.

Feedback was given on technology industry trends, customer trends in emerging markets and what is the advertising business story in light of these and how they will evolve.

Technology industry trends

Steinman says there are three main trends:
• The role of mobility is about providing technology access and taking that access wherever you go. Mobility is more than a device.
• Search is rapidly evolving from searching to doing.
• The concept of natural interfaces, i.e. how consumers are relating to devices. Think of how children approach devices in a completely natural manner.
• Anytime anywhere any device: it is happening right now.

Customer trends in emerging markets

The main consumer trends are in relation to technology.

Eight trends are common to all:
• Improvement: People are using the technology to improve their lives.
• Right to anonymity: understanding the internet and privacy.
• Intelligently on: people are understanding the concept of always being online but having moments of not being on. It is intelligently on, when relevant, in a way that is relevant for you.
• Enhancing the real: the ways in which you are making technology deliver for you.

The following four are more relevant in emerging markets than other markets

• Value me: People understand that their data has a value and understand it. They are willing to trade it for a value equation.
• Creator culture: In emerging countries we do not count on certain services as first world countries do and as a result emerging economies have many initiatives to solve problems. There is a culture of hackers; i.e. I take something, and then change it to fit my situation. "India Google runs an activity called a hackathon where thousands of developers get together to "play" for green solutions. This is relevant to brands because brands need to understand emerging economies' desire to solve their own problems and that they are sophisticated when it comes to technology."
• Niche networks: Consumers are opting for niche networks that are closer to them and their interests. Brands need to advertise on networks are relevant to their brand that gives them an outstanding relevant audience. China has dozens and dozens of niche networks. Even social networks look at how they can create spaces that are niche for audiences.
• Age of serendipity: This refers to the idea of being surprised by something that is a coincidence. If you can provide this to people then you capture their greatest connection. The concept is that you found it.

Advertising business trends

Digital advertising will only ever reach so far as it does if we do not change some business practices says Steinman. "The industry moved traditional advertising models to this medium instead of creating a business model for itself. As a result the advertising irritates the consumer and is not respectful of privacy," says Steinman.

Advertising must be beautiful and immersive and devices allow for this. He says if people find value in what you give them then they will accept it. "For the right value people will connect."

The content must also be contextual to the devices. "If I am not clicking then why does it say click. What about gestures and swiping up and down, and touching. For example on a tablet the video can move across the screen as you do. The consumer must be able to connect on different devices and follow you across the different devices with your brand that are not intrusive.

This is what gives a rich experience to the consumer that is useful and relevant. In the future there will be over a billion devices. "This provides the scale for people to build advertisements for your platforms. The industry will move forward and it will be by putting the consumer first. We are doing it today already because we have a huge audience globally already.

"The consumer will never love advertising, but he/she can accept it and love the experiences on devices. This is how we see the future working," he concluded.