Final Recap of Our Predictions for 2017

As part of our predictions for 2017, we also looked at some ongoing trends from prior years that we thought would continue into 2017. Here's our list and how we did.

Ongoing trends:

1.      NFL ratings will continue to decline. Whether it’s overexposure or kneeling, we got this right. Grade: A

2.      Drug pricing will get a lot of attention. We got this right, too. Grade: A

3.      Wearable tech will still not be as mainstream as people in the industry were hoping. Fitness trackers aside, this was true. Grade: A

4.      Progress to a driverless-car future will slow down. We thought the problem would be a combination of needing to solve some technical issues as well as liability issues but we were wrong. Seems driverless-cars are moving forward quickly. Grade: D (because liability issues have not been resolved)

5.      3D printers will continue to proliferate in schools but remain unnecessary in the home. Still right about that. Grade: A

6.      Cord cutting will be expensive and complicated. There continue to be more streaming services but add up Internet access and lots of $10 monthly fees from many different providers (Amazon Prime, Netflix, Hulu, CBS, etc.) and it will quickly add up to be equal to your regular cable bill and vastly more complicated to juggle from one service to another. Grade: A

7.      eBook sales will continue to plateau while traditional book sales increase slightly. Actually, eBook sales declined nearly 20%, according to CNN. So we got part of it wrong – but printed books increased. Grade: A

8.      e-Wallets still won’t be as widely adopted as some were projecting. We said, “they will go mainstream but not in 2017 or 2018” and we’re probably right but we’re seeing more retail terminals taking wireless payment methods even if most purchases we’ve seen are conducted with traditional credit cards. So, while not everyone has transferred all wallet items into e-Wallets, certainly it’s a growing trend that’s alive and thriving. But could somebody please, please tell school photographers that we haven’t needed 1x4 wallet-size photos of our kids, much less eight 1x4s, in at least a decade. We have all the photos we need on our phones, thank you very much. Not even grandparents want them. Grade: C+ 

You can check out our other recap here and the first five here.

Look for our predictions for 2018 before Christmas.

TrendReport 2017: Additional trends to expect

Each year we post our annual list of trends and predictions, as we did in Dec. 2016. We only posted our top five trends but, as usual, we actually identified many more. We recently added a new one about boycotts, with the twist being the boycotts were conducted by big brands not by consumers against those brands.

But each year, we typically identify more than a dozen trends, and we felt we should post the rest of these here (actually, we meant to post them a couple of weeks ago but have been busy).

Here are the rest of the trends we think will have an impact in 2017.

1.    2017 will be a tough year for traditional media. Financial sustainability used to be print media’s primary challenge. Not anymore. While still an issue, it has been replaced by the ascent of fake news, which has attacked traditional media’s most important value: credibility. In the last three months of the campaign, according to BuzzFeed’s Craig Silverman, fake news stories outperformed and were shared more frequently than real news. Publishers need to figure out how to re-establish their own credibility, make facts relevant and attract readers (and revenue) who may or may not care about whether news is fake or real. We expect to see declining circulations and revenues at real news organizations, followed by more layoffs and smaller papers.

2.    Social media addiction becomes recognized as a thing. It’s not just kids who can’t put down their devices. It’s everyone. We expect more stories (spread on social media) about how to break the social media/device addiction. Here’s the problem: You can’t live without your smartphone: You don’t know anyone’s phone number without it. You can’t text them without it. Meanwhile look at all you can do with it: pay for things, shop for things, turn on and off devices in your home, much less use it to not have to interact with anyone. Taking a break from your device is healthy but impossible, and we expect more content in 2017 about this as an issue.

3.    Virtual Reality and Augmented Reality still won’t be everywhere. Many newspapers feature VR content. And the NBA is now testing VR. But we don’t think VR or AR like the faddish Pokemon Go will be ubiquitous yet in 2017. Solvable problems include VR headsets that offer an improved immersive experience than the cardboard headsets (that resemble cereal-box prizes) distributed by some newspapers so readers could access VR content or the current high-end headsets. Providing a feedback loop from user to the headset/content could be around the corner – a real corner. As with other tech, VR and AR need more content to encourage people they need to have it.

4.    Expect a cloudier 2017. Cloud computing has been a full-fledged trend for several years now. But we expect that it will evolve, to reduce the costs of cloud computing and to enhance capabilities.

5.    Artificial intelligence will continue to surge. AI become the big tech trend covered in the media in 2016. While there is overblown fear that AI-enabled robots will take over humanity, we expect to see AI built into all sorts of consumer and B2B environments – and to be featured in more Hollywood movies and TV shows.

6.    Drones still won’t take off. Consumer drones look like fun – for a couple of hours. We think the real market will be B2B, not just for deliveries (which we think is still a couple of years off). We expect B2B drones to help do things that are hard or risky for humans to do such as checking train tracks or oil pipelines in rural, hard-to-otherwise-reach locations. B2B use of drones, like B2B use of robots, will drive the market.

7.    Globalization will be a hot topic. From free trade agreements to tariffs, job losses, Brexit and the U.S.’s relationship with other countries, and the nature of globalization itself will be a very hot topic in 2017 and beyond. 

8.    Interest in voice speakers will turn up. Farhad Manjoo at the Times says gadgets are dead but there’s one area that he’s wrong: digital voice assistants like Amazon’s Alexa and Google’s Home. These two assistants/speakers are designed to be more helpful than digital assistants, and we believe this will be a big year for them, and that IoT connectivity will likely operate through them. Alexa and Home are the killer app for smart home technology in the living room, like lighting, home Wi-Fi networks, and thermostats but also may be the key to IoT in kitchen appliances.

Ongoing trends:

1.  NFL ratings will continue to decline.

2.  Drug pricing will get a lot of attention

3.  Wearable tech will still not be as mainstream as people in the industry were hoping.

4.  Progress to a driverless-car future will slow down – but not for the reason you might think. The closer we get, we will recognize that aspects of driving that we took for granted are more complicated to solve when a human is not driving. These tech issues must be solved even before we get to solving liability issues.

5.  3D printers will continue to proliferate in schools but remain unnecessary in the home.

6.   Eventually consumers will realize they can’t easily, more efficiently or more cheaply cut the cord to cable – since the bandwidth comes from the cable company. But it might not matter. People watch on many devices – but usually not on their TVs – so streaming services will continue to be popular, even if duplicating cable offerings.

7.  eBook sales will continue to plateau while traditional book sales increase slightly. (Meanwhile, sales of vinyl records will continue to climb but will remain a niche market.)

8.  e-Wallets still won’t be as widely adopted as some were projecting. They will go mainstream but not in 2017 or 2018.

This now completes the list of most of the new and ongoing trends we identified in December. We purposely did not want to add new trends that came to light as a result of changing global political realities or predictions that only would have been obvious after the fact (like Bill O'Reilly's departure this week from Fox). 

Let us know what you think about our list -- what we missed (not including political or unlikely predictions like one about O'Reilly). As always, we will issue a report card on these trends later in November.

TrendReport 2016: How We Did WIth Our Predictions for This Year

Other people look forward to the end of the year for holidays, but we look forward to looking back at our predictions to see how well we did.

Before getting to the results of how we did on the trends we picked, let's start by noting which trends did not pick. First, we stayed away from talking politics and making predictions about the election -- and we're glad we did. (While our parents told us not to talk about politics, we are interested aspects that affect the media, and we will pick up some of the implications in our predictions for 2017 -- so stay tuned.) We also failed to predict that the Chicago Cubs would win the team's first World Series in 108 years (but we'll go on record that Theo Epstein, who was in charge when the Red Sox won its first championship in 86 years and was the brains behind the Cubs, is a lock to make it into the Major League Baseball Hall of Fame).

Here's a look at how we did on the predictions we did make:

1.      The media will have a good year. Overall, 2016 was a difficult year for the media so we got this one mostly wrong. That said, from a business perspective, we said, "Some media outlets still haven’t figured out how to build a sustainable business model from paywalls, online ads, and native advertising (aka clickbait)" -- and we were right about that. But campaign dollars did not do as much as we thought to boost traditional media revenues. Worse, the credibility of the media was attacked by both political parties and by the media itself. This is a serious problem, especially considering the attack on "facts" that occurred as a result of this year's political campaign. Grade: B-.

2.      Drug pricing will get a lot of attention. We got this one right. There was a lot of media and social media attention, mostly regarding the rising cost of EpiPens. What we overestimated was the level of action that Congress took (not much beyond some hearings). Grade: A-.

3.      Tech turns into Towers of Babel. We overstated the situation for Internet of Things. It made progress but not yet the way we thought. It did turn into something of a backdoor security issue, and we certainly can expect more of that to come. Grade: C+. 

4.      The rise of Artificial Intelligence. We said, "The ways we can use AI and machine learning will increase in 2016, helping us make better business, personal and health decisions and helping to address security concerns." We think that's right (and we're not saying if our use of AI helped us come to that conclusion. People will continue to be concerned about the implications of AI, but like IoT, we think those fears won't slow down acceptance. Grade: A.

5.      Whither unicorns and their business models? We got this right, too: Some unicorns – startups valued at upwards of $1 billion – faced some serious issues. Even as Trump used Twitter to win the election (according to him), Twitter the company encountered problems as it tried to sell itself to companies no longer interested in the little blue bird. We believe it will be increasingly difficult for Unicorns or Unicorn-wannabes in 2017. Grade: A.

6.      Content management remains king. This was an easy one. Grade: A.

7.      More will cut the cord in 2016. Despite this headline, we actually said that "we expect some people not to cut the cord because it’s more complicated and not necessarily cheaper if you cut the cable cord." But we did say that people are more likely to watch TV on devices as opposed to gathering around a big screen TV to watch as a family; that's on the decline. Grade: A.

8.      The importance of a college education will continue to generate media interest. Student debt was a topic during the primaries but faded as the campaign went on. So we mostly overstated this; we also said that the nature of education will have to change in an age of instant access to facts, making memorizing certain facts not as helpful as actually understanding the underlying issues around history, science, literature, etc. Grade: B-.

9.      The gig or on-demand economy will continue to grow. We're not sure if the number of people in the gig economy has increased -- since we don't know if there's an accurate way to measure the gig economy -- but there has become more media coverage and mainstream. Grade: A.

10.   Virtual Reality won’t go mainstream, yet. Media outlets like the New York Times, Wall St. Journal and USA Today now offer virtual reality content but VR is still much more of a novelty than an accepted mainstream technology. It could become more mainstream by 2018. Grade: A.

11.   The market for wearable tech and for IoT will continue to grow. But it didn't grow as much we expected. Grade: B.

12.   3D printers will be popular in schools. We said don't expect 3D printers in every home just yet. We were right. Grade: A.

13.   Crowdfunding will lose buzz. People are still using crowdfunding but we feel we were right that "the novelty of crowdfunding... (will) fade. Grade: A.

14.   eBook sales will plateau. We don't think eBooks will fade but we were right in that there wasn't much media buzz about eBooks in 2016. Grade: A. 

15.   Drones may start falling back to earth. Consumer drones like the one that fell on the White House lawn (in 2015) have caused some issues and demands for regulating their use, but drones are not the buzzy media topic they once were, as we predicted (and as validated by the New York Times’ Farhad Manjoo. Grade: A.

16.   Will FinTech shake up traditional banking? Apps that support banking and financial services, like Apple Pay, Google Wallet and others, are disrupting (or disintermediation) traditional banks. But credit cards are not about to be displaced so easily, which is why we think FinTech isn't really shaking up the industry yet. No doubt it will get there, within three to five years. Until then, don't throw away your check books. Grade: A.

17.   China may live in interesting times. China got the media's attention -- including for regarding the valuation of the Renminbi and cybercrime perpetrated against the U.S. and U.S. businesses -- but not as much as we expected. We think the new administration will focus more attention on China. Grade: B-.

18.   The concern about cybersecurity, privacy, encryption and government surveillance is already changing. Last year, we did not predict that Wikileaks, with apparent help from Russia, would play such a significant role in this year's election. But the party that did not get hacked is being led by someone who seemed to campaign on the promise to do more with cybersecurity to catch domestic-based terrorists before they carry out attacks. Grade: B.

19.   A big issue with driverless cars won’t be the technology or safety record. Actually, there's still an issue with the technology but the insurance requirements and state laws remain an obstacle. Grade: B+. 

Now, we're looking forward to our next favorite part of the year: Making predictions for next year. Look for them to hit in mid-December.

Key Predictions for Trends in 2016, Part III

Here's our third set of trends that we expect to have an impact in 2016:

1. The market for wearable tech and for IoT will continue to grow. Expect IoT-enabled tech to be a big story at CES.
2. 3D printers will be popular in schools.  Getting students comfortable with 3D printers is a great for seeding the market, but don’t expect them in every home just yet.
3. The importance of a college education will continue to generate media interest. The media will continue to look at whether a college education is worth the student debt loads as well as what kind of education we should provide our students. In an age of instant access to facts, memorizing certain facts may not be as helpful as actually understanding the underlying issues around history, science, literature, etc. and may not be indicators of future career success.
4. Crowdfunding will lose buzz. With even Hollywood A-listers turning to crowdsourcing their projects, we expect the novelty of crowdfunding to fade, which will make it harder to raise money this way.
5. eBook sales will plateau. After years of growing sales, eBooks’ momentum stalled in 2015. eBooks aren’t going away but they won’t totally replace traditional books, as some had feared or predicted. Increasingly, buyers may demand the ability to make a cross-platform book/eBook purchase, much as already happens with music purchased from Amazon, where you can the actual CD and direct download to your phone. 
6. Drones may start falling back to earth. Like Icarus, drones may be flying too close to the sun – and airplanes -- but there problems go beyond that. While Amazon has unveiled a possible drone to help it make deliveries, consumer drones may be the cool gift that sits in a corner until they answer this question: What do you do with a drone after you’ve taken aerial photos of your house? 
7. Will FinTech shake up traditional banking? Apps that support banking and financial services, like Apple Pay, Google Wallet and others, will generate a fair amount of business press coverage under headlines questioning whether FinTech will disintermediate traditional banks. FinTech will make inroads but won’t go broadly mainstream in 2016. That includes Bitcoin, about which there was much buzz in 2014 and almost nothing in 2015 except when some reporters thought they had uncovered the real identity of Satoshi Nakamoto, the apparent mysterious inventor of Bitcoin.
8. China may live in interesting times.  There’s a lot going on that will get coverage here. Expect coverage about the environment, including Beijing’s epic pollution and a lot of coverage about its economy, including the impact of the Renminbi being named by the International Monetary Fund as a main world currency, rising wages and an aging workforce, all leading to a possibly slowing economy. And continuing from prior years, there will be a lot of coverage about intellectual property infringement and Beijing-sanction hacks against U.S. companies.
9. The concern about cybersecurity, privacy, encryption and government surveillance is already changing. Due to the tragic events in Paris and San Bernardino, many will take a 180-degree turn on government surveillance, and demand the government to do more, not less. Expect more coverage about cybersecurity and privacy – especially as the EU enforces stricter data privacy rules (which will have an impact on cloud provides likes Amazon Web Services). Interestingly, despite the Vtech hack, which may have made children’s information available, we don’t expect much coverage about smart toys and privacy.
10. A big issue with driverless cars won’t be the technology or safety record. It will be the insurance requirements and state laws. California recently said that driverless cars will need a steering wheel and a person who is certified to drive – even as Google has designed a driverless car without a steering wheel. (The reason: it will be the transition from driverless to driver when accidents could occur.) But auto insurance will see that premiums will go down as accidents decrease – and that will change one dynamic of driverless cars (perhaps not theft, however). 

Let us know if you agree or disagree.

Please note: We're going to take a break for Christmas and New Year's -- which isn't to say we won't be working, just not blogging.

Happy Holidays, and see you in 2016!

Birnbach Communications' Top Predictions for 2014, Part IV: 9 Ongoing Tech Trends

 Last week, we posted top tech trends. Today, we're posting our list of top ongoing tech trends, representing trends that started before 2014.

1. The battle of tablets: After several years of breathless media coverage, the battle for tablet supremacy began when Apple, recognizing a vulnerability in its product line, launched the iPad Mini. Last year, we said it was a two-horse race between iPads and the Kindle Fire but expect a third player to gain traction – enter the Samsung Galaxy. This story has just begu 
2. Mobile everything will be important, including mobile search and mobile recommendations.  We’ll see the later perhaps playing out with shopper-specific recommendations while walking in retail stores – positioned as your own personal shopper. 
3. Crowdsourcing will continue to be a source of investors and a marketing boost. But that will primarily be for consumer-oriented products, not B2B technology. 
4. Virtual startups in otherwise unlikely fields. We’ve already seen the growth of virtual biotechs, and we see that continuing. We expect to see virtual enterprise application developers, who rely on outsourcer providers to do the heavy lifting. We don’t necessarily expect to see a lot of coverage of this trend, just that this is how startups will structure themselves. There’s a financial benefit to being virtual, including the hope for greater efficiencies but with that come other challenges, like credibility with customers and keeping every consultant, vendor and partner on the same page. 
5. 3D printers are still not yet ready for prime time. They will continue to make inroads, and to generate some coverage, but this is not (yet) a device for every household.  It’s too expensive and too complicated. 
6. Big data: The media will continue to cover big data as it continues to go mainstream…until big data is supplanted by the next data trend. 
7. Consumerization of enterprise apps: Mobile and BYOD forces require enterprise apps to be intuitive and easy to use. Ugly interfaces will no longer close sales. 
8. Second screens: Increasingly people watch television programs with their tablets, too, so they can comment real-time on what they’re watching. Helping customers express themselves and buy while they’re watching TV is going to be an important from a marketing perspective in the coming years.
9. Cognitive and context computing:  IBM Watson represents cognitive computing, which "combines natural language processing, machine learning, and hypothesis generation and evaluation," (according to IBM) and it didn't just beat Jeopardy champions in 2011. IBM Watson (and cognitive computing) is kicking off a new wave in computing. (Yes, we know, we've heard that before.)  Fortune did a cover story in Sept. 2013 reporting on IBM's Massive Bet on Watson. Contextual computing is not vastly different. Fast Company breathlessly reported that contextual computing -- including Google's latest search algorithm, will bring "Machines that understand you and everything you care about, anticipate your behavior and emotions, absorb your social graph, interpret your intentions, and make life, um, 'easier.'" We expect both cognitive and context computing will get more attention in 2014, even though we're in the early stages. Implications: IBM Watson's ability to provide students (and the rest of us) with almost instant access to historical data means that educators must rethink curriculum. Less important, now, are specific dates of historical events; what's now important is understanding the substantive issues surround the Treaty of Ghent, for example -- issues that sometimes get scant attention in the need to emphasize dates. We see that happening in business, too.

Let us know if you agree or disagree. Check back tomorrow for additional predictions or click here for Part I, Part II or Part III.

Track Record for Predictions for 2013, Part II

Here's our second part of our report card for the predictions for 2013: 

• The Battle for the Living Room.  We were right that there was a lot of coverage about the battle for the living room but we missed one part of the story. There was a lot of coverage about TVs in the first half of 2013 but in the last quarter, the battle hasn’t been between high def and ultra high def TVs. It’s been about Microsoft’s Xbox One vs. Sony’s PS4 (that’s PlayStation4 for those of you older than 35). Because we missed the gaming console part of the story, we’ll take points off our score. Grade: B+.
• Battle between different streaming services and cable’s embrace of streaming.  This got a lot of coverage but not in terms of specific comparisons across offerings and fee structures from Netflix, Amazon Prime and Hulu. Instead, the coverage focused on new original programming being developed by some of the streaming services, and the implications as those services evolve to better compete against cable channels like HBO and Showtime.  We expect more coverage in 2014 about streaming vs. cable as well as Netflex vs. Amazon Prime and cord-cutting. Grade: A.
• The battle among huge companies. Apple v. Google v. Samsung and Microsoft. Oracle v. Everyone Else. This is one of the great memes of tech journalism this decade. Grade: A.
• The Battle for Map Supremacy: Apple v. Google v. Nokia v. Microsoft v., Amazon. This got some coverage -- including a recent cover story in the New York Times Magazine section, Google’s Road Map to Global Domination -- but we overstated this. Grade: C+.
• Apple TV set and the future of TV. People may spend much time actually watching a TV but there continues to be interest in how Apple may revolutionize our TV-watching experience. Whatever plans Apple may have will be the continued focus of speculation in 2014. Grade: A.
• Automated home and smart appliances.  Media coverage started strong in the first half but dropped in the second half. Interesting that some trends are not strong enough to maintain buzz for an entire 12 months. This could be the result of a CES bump where some topics get off to a strong jump in January but fade when there’s not a lot of new products available. Which means, there could be more interest in smart appliances after CES 2014. Grade: B.
• 3D printers: Not yet ready for prime time. We said “2013 will be the year in which the media proclaims the arrival of 3D printers,” and that was on target. Still not seeing them widely adopted yet but we expect continued coverage about the implications for manufacturing. Grade: A.

We'll post more tomorrow and you can check out Part I here.