Connected Cars: Now Connected to Biometrics

Connected cars have become a topic of conversation since we first started hearing about adding Alexa and Google Home into cars, bringing the home beyond a home.

However, automakers are going beyond the virtual assistants to connect cars to the human body. Cars will soon be able to recognize the driver and passengers by their eyes, skin, gait, and even heartbeat. Using facial and iris scans, as well as voice and fingerprint tracking, the car will be able to accurately identify the person and adjust seats, mirrors, etc. and start the engine without a key. This means detecting factors such as alcohol levels and fatigue, and for sure will adjust how insurance plans are catered to each person.

While the privacy concerns will be a huge hurdle and exact timing of execution is unknown, this shows that connectivity is becoming more prevalent. Connected cars are over 10x more expected to be used than self-driving cars, showing that we as people trust ourselves much more than releasing 100% of the control to a machine.

Cars are becoming the second home and will hold even more data now than ever before. Understanding how to capitalize on this from a QSR standpoint is interesting, will there be body language trends for those that are hungry that can fire off a message for Jack in the Box LTO?

Apple’s Streaming Video Service is Reportedly Launching This Spring

The streaming wars show no signs of slowing down anytime soon. Reports allege that Apple is in motion to launch their own streaming service to rival that of other major streaming platforms. It is reported that not only will Apple create their own original content but it will partner with various established studios to launch exclusive programming. Examples of the exclusive content they have released prior on their Apple Music platform has been reality show, Planet of the Apps and the hit segment Carpool Karaoke.

All original content will be housed on the streaming platform for paying customers to access much like the competitive landscape.

What will be interesting to see coming from Apple is if they will monetize through ads. The company is known as the walled garden and doesn’t even allow foot traffic studies or the sale of their users’ data, especially given the recent FaceTime fiasco. If the company decides to steer away from their walled garden reputation then that would open the doors for brands to be advertised on their platform. This would be an incredible platform to Jack to have equity on because of the heavy connection with music and culturally relevant content that would live on an Apple streaming service. How do we balance in-stream ad breaks to capture those who don’t mind ads, but also deliver a premium experience by integrating Jack in the Box within the storyline?

Loyalty rewards, coupons bring QSR customers back

Consumers are attracted to coupon and loyalty incentives when making the decision to try new QSRs. According to a study conducted by Publishers Clearing House, nearly 50% of consumers are enticed to try new restaurants based on couponing alone. Standard ads are not enticing customers like they use to in the world of pre-online devices. They are increasingly year-over-year being attracted to app driven payment when rewards are given for loyal use. In recent years major QSRs such as Starbucks, and Burger King have implanted successful loyalty program to attract potential consumers and retain them by offering substantial bonuses.

Not only do online loyalty programs and discounts entice customers, but users are prone to have bigger digital orders vs in store tickets. Brands have an opportunity to use these programs to their advantage by being able to send these coupons straight to the pockets of consumers to retain their business and entice them to frequent more through exclusive perks. As more brands are understanding that these rewards programs are quick ways to get consideration amongst a crowded field, they are finding loyalty doesn’t come easy or last long. Larger chains have an advantage in developing more sophisticated apps due to their access to more capital. However, larger chains aren’t immune to customers multiple choices and in the same study, many have stated that they are not hesitant to go to other QSRs. Overall consumers often have little hesitation to these rewards and often favor brands who are generous with their offerings.

Who says Outdoor Advertising is Archaic?

While there are mixed opinions, many sources predict that OOH advertising is the fastest growing traditional channel, and Magna stated that OOH was the only traditional ad medium to show growth in spend in 2018, 4.6%. So what value do advertisers see in OOH?

Digital OOH is taking lead on adapting to the ever-evolving technological advances. The main opportunity DOOH provides is the ability to measure and retarget, which plays on the already wide reach OOH advertising allows by its nature (it’s hard to ignore a board or bus stop), but also closes the loop on proximity targeting down to zip codes and blocks to measure foot traffic and the response people have after seeing the ad. DOOH in itself is expected to grow 10%/year, and forward thinking outdoor advertising firms such as Outfront Media are taking lead in exploring 5G integrations to make programmatic and dynamic targeting more efficient.

Looking beyond OOH, we continuously see data playing a bigger role in filling the gap traditional media channels have. Having measurement tools such as foot traffic studies and its correlation OOH ad experience allows for smarter to help sales.

Mobile Spending Power Dominates in 2018 with QSR as Major Vertical

App Annie, an app analytics platform, released consumer spending trends and predictions within major verticals including Gaming, Retail, Restaurant & Food Delivery, Banking & Finance, Video Streaming, Social Networking & Messaging, and Travel.

Across all verticals, a common theme was as time spent on mobile devices and apps increased significantly, so did spending. Total spending power on app stores is expected to surpass $120 billion in 2019, as consumer spending pattern continues to shift heavily toward mobile.

Time spent in shopping apps globally totaled 18 billion hours in 2018, and mobile is expected to be 75% of total e-commerce transactions by 2021. This is evident in brick-and-mortar giants like Target and Walmart integrating mobile in loyalty programs, POS payments and in-store mapping systems. Similarly, mobile gaming companies have utilized the hyper-casual gaming such as Helix Jump or Hole Jo to grow and separate themselves from console gaming. In-app spending within gaming is expected to reach 60% of all consumer spend in 2019.

QSR is taking advantage of where people are spending time and money, as consumption of food and drinks services through apps globally increased 150% from 2016. We saw heavy investment in promotions focused not only on LTO’s, but on mobile and app usage. McDonald’s and Chick-Fil-A led the loyalty programs promotions scene, while Burger King set a standard on promoting app downloads with the $0.01 Whopper campaign, hitting #2 on overall downloads on December 5 and resulting in significant MoM sales performance.