Editor’s note: This article was first published in August 2018. Its predictions were written in 2018 and have since been overtaken, such as 2019 being the year of driverless cars (mass-scale driverless cars did not arrive), TV dying, and fintech finally taking off that year. It also cites the Uber fatal crash (March 2018).
The world is changing and moving forward faster than ever before. So it’s a matter of knowing what the next big thing will be, whether we’re talking about business or investing. That’s why we’re going to try to predict which business trends will take hold from 2018 onwards, drawing on several sources, including the Business Intelligence report.
We’ve already looked at the social media trends for businesses from 2018 onwards, where we explained that mobile would be king, that advertising and content would come hand in hand with video, and that Facebook would practically become a paid platform for businesses.
Business trends
1. The Internet of Things
We’re convinced that the Internet of Things will be a multibillion-dollar industry and that from 2018 it will start to reach its full potential. We’re already seeing how apps that connect to each other are making our homes smarter. And this is only the beginning.
It’s estimated that more than 50 million smart home devices have been bought in the United States alone. If the industry hasn’t taken off yet the way many predicted years ago, it’s because these devices are often expensive or hard to set up. And that’s something that’s gradually being solved.
Smart light bulbs, door locks that open with a mobile app, and full control of our home and appliances from our smartphone are already a reality. And Amazon and Google are making the change easier in this industry.
2. Video and mobile are the future
A lot of the money spent on TV advertising will shift to video advertising on mobile. Companies will invest heavily in reaching users through their phones, using leading social networks such as Instagram, as well as Facebook and YouTube.
3. Traditional TV will die
Television as we know it will tend to die out. YouTube, Amazon and Netflix will take care of killing it off, although it’s quite likely that other new projects and ideas will fill the gap it leaves. TV itself will increasingly adapt to smartphones.
And this will give rise to new mobile video business models, built above all around subscriptions.
Film and TV studios, together with telecom companies, will lead these efforts. The former will produce quality content, and the latter will bundle that content into their mobile packages at a flat price for consumers.
4. Digital media will look to diversify their revenue beyond advertising
Google and Facebook continue to dominate the advertising market. In fact, both companies are increasing their advertising revenue year after year. As a result, digital media companies will go looking for new sources of revenue.
For example, we’ll see a rise in paid subscriptions, with content restricted for non-subscribers. They’ll also increasingly seek revenue from brand licensing, merchandising and new forms of native advertising to expand their revenue models from 2018 onwards.
5. Virtual reality
Although people have stopped talking about virtual reality lately, Facebook’s purchase of Oculus and moves by other companies suggest that virtual reality will be a multibillion-dollar business, especially in the video game industry, and probably with other surprises in store.
6. 2019 will be the year of driverless cars
Companies like Uber have already made the news after one of their self-driving cars was involved in a fatal accident. But driverless cars will arrive sooner than we think. Which companies are taking big steps in driverless cars? The companies that could put these autonomous vehicles on our streets on a massive scale are Tesla, Ford, Hyundai and General Motors.
7. The year of Alibaba
So far, the prices on AliExpress are hard for other companies to match, Amazon included. We’ve always said that the day Alibaba solves its delivery-time problem and makes the leap beyond its home market, many companies could start to tremble. Well, Alibaba has partnered with a big data giant, and the company is expected to expand its business internationally. If that happens, e-commerce could enter a war that might threaten Amazon’s dominance as the king of online retail.
8. The drone market
A whole multimillion-dollar business has opened up around drones. The Business Intelligence report says drones will start to face fewer restrictions on their use. In fact, companies such as Amazon and Correos (Spain’s postal service) are testing drone deliveries to hard-to-reach places.
The drone industry is among the businesses and professions with the brightest future. Knowing how to fly, program or repair drones could open up job opportunities for you from 2018 onwards.
9. Artificial intelligence in advertising
2018 has seen a considerable increase in the number of brands turning to artificial intelligence to make their online advertising strategies more efficient. Using AI in marketing can optimize bidding in ad auctions while delivering personalized content.
10. Payment and data security
With the huge amount of sensitive information we share online and internet payments booming, security will be one of the most important problems to solve, and therefore one of the most profitable industries.
So we’ll keep seeing business giants acquiring companies that work on security. Mastercard acquired Brighterion, a software company specializing in artificial intelligence and security. We wouldn’t rule out more partnerships or acquisitions.
11. Digital money management
If there’s one thing we know today, it’s that young people trust Google, Amazon, Apple and Microsoft far more than a bank. That’s why companies and apps are appearing that manage our money better than traditional banks do.
Some of these apps are being bought by banks so they can help us keep our finances in better shape, control our spending and know where our money is going. From this year on, fintech will finally take off and force traditional banks to change or adapt.
12. What will happen to cryptocurrencies from 2018 onwards?
The Business Intelligence report says cryptocurrencies will gain prominence and wider acceptance. But on this point, in my personal opinion, I have to disagree. I think precisely the opposite will happen, because right now the prices of cryptocurrencies, and Bitcoin in particular, are increasingly showing that, far from being a real means of payment or store of value, they are behaving like a genuine bubble.
Blockchain will have incredible, endless uses, but in my opinion cryptocurrencies will only serve to fleece naive investors who think they’ll get rich quickly by investing in a product with no intrinsic value and no real use. But I insist that this point is just my personal opinion.
Featured image: Eduardofamendes, CC BY-SA 4.0, via Wikimedia Commons.
