Deloitte TMT Predictions: Machine Learning Deployments to Double in 2018; Coins New Lingo #adlergic

Deloitte TMT Predictions: Machine Learning Deployments to Double in 2018; Coins New Lingo #adlergic

Deloitte TMT Predictions: Machine Learning Deployments, Digital Subscriptions, Digital Subscriptions, On-Demand Content and Live Events Will Continue to Drive Growth

Relentless change; stubborn continuity… The predictions on tech trends for the New Year 2018 seem to be more drastic than any of its previous editions. Deloitte has just launched its annual Deloitte TMT Predictions for 2018, and it has some serious thought-provoking recommendations for marketing and advertising agencies — focus on machine learning deployments, augmented reality tools, and live-streaming content. Fascinating as always, Deloitte TMT Predictions 2018 emphasize that the technology, media and entertainment, and telecommunications ecosystem are the top enterprise adopters of cutting-edge artificial intelligence capabilities, powered by new chips and better software tools.

Image courtesy: Deloitte TMT Predictions
2018 Technology, Media and Telecommunications Predictions via (PRNewsfoto/Deloitte)

What should CMOs be expecting in 2018? Well, according to Deloitte’s predictions, augmented reality will become more mainstream even as machine learning deployments begin to make a marked impact on marketing budgets. Also, the report finds what the smartphone future actually looks like!

CMOs Watch Out for These Predictions

  • Augmented reality on the cusp of reality  Over a billion smartphone users will likely create augmented reality (AR) content at least once in 2018, with at least 300 million doing so monthly, and tens of millions weekly, according to Deloitte.
  • Mobile only wireless home internet – For 2018, Deloitte forecasts that one-fifth of North American homes will get all of their internet data access via cellular mobile networks. There will be significant variations by country, however. In Brazil, for example, nearly a third of all homes will be mobile only, but only 10 percent in some European countries. The differences between geographies are due to a range of technological, economic and demographic factors.
  • An increase in #adlergic – While three-quarters of North Americans engage in at least one form of regular adblocking, only about 10 percent of this population engages in blocking ads in four or more ways – the “#adlergic” population. Consumers who are young, highly educated, employed, and have higher incomes are more likely to be heavy adblockers.
  • TV viewing by 18-24-year-olds to decline, but no tipping point – Deloitte predicts that traditional TV viewing by 18-24 year-olds will decline by 5-15 percent per year in the United States, Canada, and the United Kingdom in 2018 and 2019. This rate of decline is a similar rate to the prior seven years and is not getting worse. Many forces that distracted young people away from the traditional TV, such as smartphones, social media and video piracy, are reaching saturation.
  • In-flight connectivity takes off – 1 billion passenger journeys, or one-quarter of all passengers, are expected to be on planes fitted with in-flight connectivity (IFC) in 2018, according to Deloitte. This is an estimated 20 percent increase from projected 2017 totals, generating IFC revenue close to $1 billion for 2018.
Sandy Shirai
Sandy Shirai, Vice Chairman, U.S. Technology, Media & Telecommunications Leader at Deloitte 

Sandra Shirai, Vice Chairman, Deloitte LLP, and US technology, media and telecommunications leader, said, “This year’s predictions underscore the stunning momentum we see across the technology, media and telecommunications sectors.”

Sandra added, “While we’ll see exponential growth in some areas, we see consumer behavior maturing in others. This will drive a next wave of innovation which will have a profound impact on both enterprises and consumers in 2018.”

Suggesting that machine learning, a core element of Artificial Intelligence, is still in its nascent stage of growth in what is expected to be a booming industry, Deloitte TMT Predictions reveal that 2018 may just be the year of rampaging deployment. Though, machine learning will be far from being a ubiquitous enterprise model for now.

What Caught Our Eye! #Adlergic

Deloitte Global predicts that a significant percentage millennial population in the US would be engaged in ad blocking behaviors in 2018. These ad blocking behaviors were studied across categories—

  • Smartphone
  • Computer
  • Smart TV/PV
  • SVOD
  • Radio
  • Music streaming

According to Deloitte, ad categories that can’t be easily blocked would be the fastest-growing ad categories in the coming years. Digital mobile users, obviously, would be the primary target for advertisers eager to overcome the ad blocker challenge in 2018. In a way, #adlergic, ( a new term that Deloitte introduced) would continue to be an epidemic across media, especially in North America.

Highlights of Deloitte TMT Predictions 2018

Among the findings pertaining to the enterprise, this year’s report indicates that business organizations will likely double their use of machine learning technology by the end of 2018. TMT Predictions highlights five key areas that Deloitte believes will unlock the more intensive use of machine learning in the enterprise by making it easier, cheaper and faster.

– Enterprise machine learning pilots and deployments predicted to double this year, powered by new chips and better software tools

– By 2020, there will likely be over 680 million digital subscriptions, with consumers increasingly willing to pay for content

– Smartphone sales expected to reach 1.85 billion per year by 2023, equivalent to over 5 million units sold per day

– Smartphone owners will likely interact with their phone on average 65 times per day in 2023, a 20 percent increase on 2018

– China will likely remain the largest market for live-streaming at $4.4 billion in 2018, an 86 percent increase from 2016

Paul Sallomi, Vice Chairman, Global Technology Media Telecom Industry Leader, Deloitte
Paul Sallomi, Vice Chairman, Global Technology Media Telecom Industry Leader, Deloitte

Paul Sallomi, Vice Chairman, Deloitte LLP, global TMT industry leader and US technology sector leader said, “We have reached the tipping point where adoption of machine learning in the enterprise is poised to accelerate, and will drive improved business operations, better decision making and provide enhanced or entirely new products and services.”

The most important key area is the growth in new semiconductor chips that will increase the use of machine learning, enabling applications to use less power, and at the same time become more responsive, flexible and capable.

Live Content in an Online World and Digital Media worth Paying For

Deloitte TMT Predictions includes a number of consumer forecasts as well. Deloitte predicts that live broadcast and events will generate over $545 billion in direct revenues in 2018. Despite consumers’ capability to consume content on demand or attend events remotely, live consumption is thriving.

Also, in many cases, live content’s performance has been made more productive and profitable by digital. This indicates an increasing willingness from consumers to pay for digital content.

Deloitte also predicts that by the end of 2018, 50 percent of adults in developed countries will have at least two online-only media subscriptions, and by the end of 2020, the average will have doubled to four.

Kevin Westcott
Kevin Westcott, Vice Chairman – US Media and Entertainment Lead at Deloitte

Kevin Westcott, vice chairman, Deloitte LLP, and US media and entertainment leader, said, “The massive consumer interest in streaming, mobile, on-demand services and personalization are significant opportunities in 2018 for both content creators and brands. We see signs that consumers’ willingness to pay for this content will continue to accelerate in 2018 and beyond.”

The Future of the Smartphone

Smartphone adoption continues to grow.

By the end of 2023, more than 90 percent of adults in developed countries are expected to have a smartphone, with ownership among 55-75 year-olds reaching 85 percent. And Deloitte predicts that owners will interact with their phones on average 65 times per day in 2023, a 20 percent increase on 2018.

At the same time, Deloitte predicts 45 percent of global adult smartphone users and 65 percent of 18-24-year-olds will worry that they are using their phones too much for certain activities and may try to limit their usage in 2018.

Craig W. Wigginton
Craig Wigginton,
Global, US and Americas Telecommunications Leader, Deloitte

Craig Wigginton, Vice Chairman and Telecommunications Sector Leader, Deloitte & Touche LLP, said, “While traditional mobile services have matured in 2017, the opportunities presented by “made for mobile” content, IoT services, wearables and virtual reality represent a significant value proposition to both industry and consumers in 2018.’ Craig added, “The incredible connection between the mobile ecosystem and consumers shows every sign of accelerating in the year ahead.”

Now in its 17th year, Deloitte’s annual TMT Predictions provides an outlook on key trends over the course of the next 1-5 years in the technology, media and telecommunications industry sectors worldwide.

Overall, Deloitte Global’s predictions 2018 report provides valuable insight into transformation and growth opportunities over the next one to five years.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *