Bing Ads EMEA Travel Summit


Welcome everyone. Welcome to Barcelona. It’s, as I was saying to
Mascha it’s really good to see everyone making the trip to join us this afternoon
in this amazing location. So I’m Alex Simpson. I’m heading the strategic
side of the business for Bing in Paris and I’ll be
co-hosting with Mascha, so again thanks and
welcome to everyone.>>And welcome also, my name is
Mascha Dreison and I am part of the leadership team together
with Alex from France and heading up western Europe. And we are very pleased to see
such a diverse group of industry leaders here in this room. Because travel is
a very critical part of the business for
us as Microsoft. And so important that we
thought, it was very important to bring you here to gather
you all in this room. To make sure that we share
the knowledge that we have and help you in developing
on the transformation that the travel business
is going through. So and it’s actually also
a very special moment, because this is our first
ever Bing EMEA travel event. So very special for us,
not only important but also very special for us. So we are very honored
to have you here. So to have you on this
journey together with us, by accepting this invitation to
come all the way to Barcelona. Next to the fact that this
is a very special event, we also have gathered that
we want to leave you to go home with basically
with two things. Two things that we’re
going to leave you with. The first thing is that no any
other industry than travel is being in such
a high transformation. There’s so
much going on in travel, that to leverage the opportunities
that it gives all of us, and you in the travel industry, you need
to have a strong partner there. The second one is actually that
Microsoft in general, but Bing specifically we are investing
heavily in order to make sure that you can leverage those
opportunities into the future for your own brand, and for
your own advertising agency. Yep.>>So welcome again in
this amazing location. You’ll be hearing
the transformation word or shall I say keyword
on several occasions. I mean, this location is a true
testament to transformation. It was created in 1856. I’m not gonna say it was
a French one, French founder. You’ll know more
later this afternoon. But, again, this location
has hosted one of the first brewery and manufacturer
of beer here in Barcelona. And talking about
transformation, it was transformed early 2000
in this amazing location. Again, transformation and
combination and partnership between craftmanship visionaries
like Jean Nouvel, the architect. And we’ve had a tight agenda, so
we’ll make everything possible, so you can the private guided
tour, later this afternoon. Again, transformation, as Mascha
said, Bing and Microsoft are on this journey, we’ve started
the transformation journey. And this slide to me is what
you kind of can take away in portraits and
illustrating the transformation. Over the years, Microsoft and Bing have grown significantly
as you can see. We’ve reach in pretty much
every location we’re in or doing business in double digits
in terms of market share. So that shows now when we
talk about transformation and partnership that we are more and
more partners and stronger partners with everyone
of you in your location and where you do business. There’s again
a significant agenda. So the first half will be really
about giving you insights on how this travel industry
is transforming. So from different speakers,
Simon Calder, and Matt Vignieri from Kenshoo. Then we’ll deep dive into
opportunities you can tap into with specific insights
across EMEA, with Sarah. Then we’ll have something
more aspirational and looking into the future, that
will be the second half with James Murray talking about
the future of search. And really showcasing
the innovation that Microsoft has been taking part in and investing in with Ester and
Andrea.>>So then the second
half is very exciting, because you get to try HoloLens. We will do that in
the next room, your next. And everybody gets their turn
because we’ll both split up in two groups. So people can try the HoloLens
and another group will then get a guided tour, private
tour around this brewery. And in also a half
an hour we will switch so everybody has the opportunity
to try HoloLens. We have two of them here
in the room next to us. Some practical things. As from 6:30 until 7:45 there will be already the famous bank
taxi’s taking you from here to the hotel if you want
to go to the hotel. If you want to fresh up or maybe you didn’t even
check in yet like me. Then you can go to the hotel,
and then there’s taxis from 7:45 to the restaurant, where we
will be having dinner at 8. If you want to spend some time
here, so you don’t wanna go to the hotel because you’re
already checked in. You wanna play around a little
bit more with the HoloLens for example, or
see more about the brewery. There’s also taxis going
from here straight to the dinner at 7:45, so make sure you’re there at
the entrance to catch that taxi. And actually, now we’re going
to announce our first speaker, because we’re all here
about content and I’m actually the first speaker, actually doesn’t need that
much of an introduction. Simon Calder,
he is a journalist and he is a senior travel
editor writing for example for the British news
paper, The Independent, and independent he is because he’s
famous for paying his way. So not paving the way,
maybe also paving the way, right, Simon? But paying his way
to make sure that he’s not dependent on others
paying for his travels, so he can write a nice
piece about it. His editorial talent also
enables him to write, for example, for the Standard, the writes for
BA’s in flight magazine. And he’s also a frequently
asked speaker, for the BBC, ITV News, and Sky News. And we’ve asked Simon to give us
his perspective on the major and the minor trends,
what he sees in travel, and what impact that
has in this vertical. Ladies and gentlemen,
without further ado, Simon.>>[APPLAUSE]
>>Hello everybody, what a pleasure and
a privilege to be here, and thank you so much to Microsoft
for making it all possible. It’s been lovely talking to some
of you, and I look forward to speaking to the rest of
you before the day is out. So yes it’s, that was last week
actually climbing Stromboli in the Aeolian Islands. Very very fortunate
to be invited here to talk about trends
in the 21st century. Because it means I can have
another holiday in this beautiful city. And my life,
I don’t know about your life, is all about being on vacation. So this was when I was working
in Malta, doing a little bit of filming which involved quite
a lot of swimming, as I recall. It got worse. I had to go and drink some beer
in the Grand Place in Brussels, and try all the different
brews there. Not quite as good as I must say. And then worst of all,
for goodness sake, I had to drift around
Sydney Harbor being massaged by lovely Nadine while talking
nonsense to a BBC camera. In Britain we say, it’s a hard
life but someone has to do it. And that’s why I have come
here to the fantastic Moritz location. Now, I’m gonna talk about
travel trends, but everything is to do with the way that
the world is affecting things. So I’m gonna take a quick sprint
around the world, because that is going to affect, ladies and
gentlemen, all of your business. Right, how has 2017 been for
you, so far? Personally, professionally,
politically it’s been quite exciting as from
lunch time today. Sorry we’ve got of course
the exciting prospect of whatever is going to
happen in North Korea. This is the demilitarized zone. Interestingly enough I was
there recently working and they’ve already
got the rail line ready to go when the two
sides of Korea merge. You will have noticed,
I imagine, that Donald Trump was quite an interesting
choice of the Americans, that’s all I shall say. But of course it’s the first
time that a travel entrepreneur has been there. And it’s also the first time
that we’ve had a President of the United States criticizing
one of the leading tourist draws in
the United States. There we are, at exactly
the same time as Illinois, and Chicago in particular, is having a big worldwide
marketing campaign. He is saying Chicago is basically way
too dangerous to go there. Mexico, of course,
is having an interesting time, a key tourist destination,
my goodness me. And it just emerged today,
a very serious team of researchers
say that the travel ban. This was the list of seven
countries where you weren’t allowed to fly from them
direct to the United States. That is going to cost the US
an estimated $18 billion. Uncertain times, and of course uncertain for
many places in North Africa, in the Middle East, and
touristically very, very tricky. Shake still under
siege as it were. Turkey had a referendum, we know a bit about
referendums in the UK. But Turkey had one and by
the same result, just over 51%, they decided that they were
going to with President Erdogan. How that plays out,
we do not know. Sadly, of course,
terrorism is ever present. But it’s one of these things
where I look at the numbers I don’t look at. Well, of course I look at
the headlines, everybody does, but I look more deeply,
I just look at the numbers. The events we’ve seen in Paris, in Brussels, in Nice, in Berlin
and in London are terrible. People focus on them. But actually statistically
the chances that you or me or anyone here is ever going
to be involved in anything to do with terrorism
are incredibly low. So luckily people
are still traveling very specially still traveling
to this glorious city. And the good thing about
Barcelona is that it really is the perfect city to have
an event like this which is sure Microsoft decided
to locate it here. The greatest tourist
draw in Spain, which itself is the leading
destination for many nationalities including
the UK, including Germany. And of course it’s just full of
inspiration, this is the view. If you get a chance, they’re doing evening tours of
La Pedrera, beautiful house just 15 minutes walk from here
and it’s a lovely experience. And the great thing from your
point of view is of course, that that picture which is just about
to be taken will be shared. And instantly you have been
transmitted around the world, these sort of
inspirational images that travel needs to keep going. And keep going it does, despite everything that
the world throws at it. Let’s spin through some
of the key sectors. Now I think the most
important one actually, in terms of changes,
is aviation. And of course that powers so
much of travel. Very good choice again to come
to Barcelona cuz this is where more is happening than
I think any other city in Europe in terms
of developments. So the home of a couple
of leading airlines, Volotea, which proves that
there is still a sweet spot to be found between
the larger airlines. So what they are doing is got a
really nice network of small to medium size cities
across Europe. Serving those keeping good
at what they are doing and leaving the big scraps
to larger players, such as Vueling very important
airline in Barcelona. That’s it’s HQ it was
formerly part of Clickair. And crucially, what Vueling has
done for some years is allow connectivity through its
hub here in Barcelona. That greatly increases
the reach and the appeal of Vueling compared with
the other low cost airlines. But look Ryanair who you may
have heard of, they are just about to start their first
exercise in connectivity. In other words they are gonna
say we are like Iberia, Air France, Lufthansa,
British Airways. We will fly you to Rome and
we will connect you there to Israel to Greece to
wherever you want to go. And once that happens
it means that I’m sure EasyJet will be soon following. And that means that for
the network carries such as British Airways,
there is going to be I think a fairly swift erosion of
lots of the European flying. To the extent that you may
well see that British Airways cut back on it’s short haul
flying and give Waylon part of the same group to
do a lot of that for it. They’re also going to
get level which is the some exciting, new,airline
starts in June from Barcelona. My goodness me, it’s gonna be flying to
the Dominican Republic, to Buenos Aires, to Los Angeles,
and to Auckland. Which as you will know is
some two hours south of Microsoft Headquarters
in Seattle and it’s the second airport for
San Francisco. Funnily enough, there’s another airline that
flies from Barcelona to Seattle, and it’s sorry to Oakland and
it’s Norwegian. And what they will be
doing is responding, I imagine, by launching
a Barcelona to Seattle service, very soon makes it
great ever since. Lot’s of business travel not
least because of course so over high tech stuff in Seattle. Lot’s of high tech going
on in Barcelona as well. Huge leisure potential,
great tourist destination, both of them lovely
creative coastal cities. But the really exciting thing
which is happening in aviation also involves Norwegian, but it is happening further north
in Scotland and Ireland. Which at the moment
are separate countries, Scotland is part of the UK. How long that will stay,
we do not know. We don’t know anything at
the moment, because as you know Theresa May has just called
a general election in the UK. But we do know that from June, you will be able to fly from
Edinburgh and from Belfast to places you have never heard
of in the United States. Anybody ever flown into
Stewart International Airport? No, neither have I. Providence, Rhode Island maybe? And yep,
gentlemen there thank you. And Hartford, Connecticut, which I’m told is the insurance
capital of the world. You’ve got all these
flights going, where’s the market for those? Well there isn’t one yet,
but there will be. Because what Norwegian is doing
is using an aircraft that started flying way before
any of you were born, in 1968, the Boeing 737. And it just so
happens that this very, very old aircraft is perfect
now with new technology to fly right across the Atlantic,
3,500 miles. So 5,500 kilometers and
carry a full payload of people to places they didn’t
know they wanted to go. It will, I think,
be a game a changer because if you can get the economics
of low cost short haul, and apply those to long haul,
it’s gonna be very exciting. As is the great development
in Europe’s airports. It’s true, circular runways,
don’t laugh. The European Commission has
put a lot of money into researching this. Just go onto Bing,
tap in endless runway. That sounded as though it got
better, thank you very much. It’s your magic touch,
thank you. So the idea is that for
London, for Paris, for Amsterdam, we will now
have circular airports. It’s going to be very
exciting indeed. Anyway just search it on Bing,
and you will see endless runway
to find what you need. Trains, of course,
are the past of travel, but they’re also the future,
or are they? Well the best place to
find out is here in Spain. Which actually despite what
the French, and the Germans, and the Italians will say, Spain
has by far the best network of high-speed trains in Europe. Quite remarkable,
the AVE network. You can be from
Barcelona to here, at Atocha Station in Madrid in
two and a half hours, marvelous. So the airlines have given up,
have they? Well no they haven’t. There is still a shuttle service
between Barcelona and Madrid. 22 flights a dayon Vueling on
a barrier, going every half-hour or every hour from 6:30 in
the morning until 9:30 at night. And that’s partly because
the railway is still so 19th century. You have to go and
get a piece of cardboard, a piece of paper,
with your destination on it. You have to queue up and
buy that. You have to give it to somebody,
they will punch a hole in it. This is primitive
compared with what the airlines allow us to do. And that is why I think the
airlines are still way ahead. But if you go across
the Atlantic, you will find that actually things
are speeding up in America. This is the new train which is
gonna be connecting Orlando and Miami in Florida. And this is all coming
from private investment. Donald Trump, of course, has said that he’s gonna close
down effectively the entire long-distance rail
network in the US. Okay let’s have
a look at cruising, Barcelona key cruise port,
of course. So what’s happening
with this industry? Well, it’s really, really,
really strange, I think. I know we’ve got some excellent
guests from the cruise companies. And they might be able to
explain why I buy the leading newspaper in the UK on Saturday,
and it has ten pages, costing approximately
100,000 Euros per page, of advertisements for
cruise companies. There we are, it is ridiculous. It is a really, really 20th century way of
reaching your audience. Sure, there might be
the demographic of older people, people who still, unlike all
of you people, buy newspapers. But that is a huge amount of the
transaction between the cruise company and the customer
that is simply being lost. And furthermore, in terms
of customer acquisition, it is rubbish. Because frankly you need to
target the sort of people who are looking online, rather
than looking in the newspaper. Skiing that’s another sector
which I think has room for improvement. If you get a chance anytime
in the next few winters, the great thing about Barcelona
is that you can be here in Baqueira in three hours flat. It’s an astonishing location. Best ski resort in my experience
I’ve ever visited, and I’ve had to check out quite
a lot, it’s been tough. And I think that the travel
industry in general, or maybe you can think about how
your business might do this, is not doing enough in saying,
tell you what. Taking a week and
going for a ski holiday, you don’t need to
do that anymore. Just have a long weekend
in Barcelona, and a couple of days skiing
is really near by. There is nothing that I’m seeing
which combines those two yet. Plenty of competition of
course in my money, and your money looking for
places to stay, and that’s a very interesting
area of operations. Huge amounts of investment
still going into hotels. This is the Yas Viceroy
in Abu Dhabi, with the Formula One racetrack
just running behind it. And here’s a news story just
come in this morning about Airbnb. Now this is a discussion that we
can have all day, all evening. To what extent is Airbnb
cannibalizing the accommodation market, to what extent is it
growing the market overall? All I know is that there are
more and more questions being asked about the Airbnb model, in
particular from city planners. Here in Barcelona, a few years
ago the kinda people who were investing in hotels
a lot of them said, no point running a hotel. It’s very labor intensive, much,
much easier to buy an apartment block and then just sell
the whole thing on AirBnB. That transforms the human
geography of cities and the planners don’t seem
to like it very much. Lots more to go at there. And business travel, right, the good thing about
business travel is like you very good people is that you
are high-value customers. Therefore the suppliers
are gonna be falling over themselves to
deliver great service and extract as much value from
you as they can, aren’t they? Well, no. Before any of you were born,
so this was 1990, I joined the British
Airways Executive Club. They know exactly where
I’ve been, they do! I went back, I couldn’t even remember going
to some of these places. And yet when I searched online,
repeatedly, because I don’t know about you. I do pay my own way, but I couldn’t find a cheap
flight out of here tonight. Not for anything, 300 Euros, and
that was on airlines with less impressive reputations, shall
we say, than British Airways. So I thought, well I’m gonna go
on Avios frequent flyer points. I’ve been searching every single
day, at no stage did Avios, who’ve known me for a very long
time, sent a quick note saying, you’re trying to get out
of Barcelona, aren’t you, on Tuesday night? Well, why don’t we do a deal,
why don’t we help you out? In the end, yesterday, finally
one, I managed to get my seat out, and it’ll be interesting
to see if I get overbooked. Because that’s quite an exciting
business these days, as we know. Let’s look at what’s happening
in the future, well, who knows, luckily. Except that it’s gonna be
an awful lot more difficult when the UK leaves the European
Union, to travel to and from the UK. And that has serious
implications, both for the UK travel industry and also for
outbound providers elsewhere. It’s gonna be tricky,
because the European Union has already said, we want to have
electronic border checks. We want everybody who’s coming
from outside the European Union to go through the kind of online
palava you have to do with the ESTA for the US. So that is going to happen,
it will put the UK beyond that. That means it will
make it tougher for British people to travel abroad. And on top of that, it will also
mean that a lot of Europeans who’ve currently got
an Italian identity card, you can go to the UK,
that will stop. You will also have to register
online, it’s gonna be very, very messy. That’s one certainty, another certainty is that we
will find that social media is enabling every consumer to
become a possible reporter. And we know what happened
with United Airlines, that terrible story. And within a week of poor Dr. David Dao being
dragged off the plane, you have the Wall Street Journal
saying, boycott United. That’s quite bad news for
a huge brand, and the reputational damage
is going to be immense, whatever they are now doing
about changing their policies. People are gonna get sick,
I’m sorry to say it, beautiful Miami still
has a Zika issue. Zika is genuinely
having quite a serious impact on a lot of travel to
Florida, to Latin America, to few other parts of the world. It’s not going away
any time soon, and you can be fairly sure that we
will get other diseases which, like Ebola,
are either very small impact. Of course, I don’t wish in any
sense to diminish the terrible suffering in Liberia and
Sierra Leone and Guinea. But in terms of global health,
they were very insignificant, but it still put lots of people
off traveling to Africa. Or it will be something
like a global flu pandemic, which will have a very
serious effect. Sorry, there will also be,
anybody know where this is? Napoli, perfect, yes, and
at that lovely mountain in the background,
that seems to be Vesuvius. And the thing about Vesuvius
is that regularly erupts, and it hasn’t erupted for
quite a long time. It’s rather overdue,
and you can possibly, if you were traveling 2010,
remember where you were when suddenly, we learned
we could all say [FOREIGN]. Or if you need a pronunciation
help, there is one here.>>[LAUGH]
>>It’s caused hundreds of millions of Euros of damage
to the travel industry. Personally, I’m on holiday, pretending to work in
Norway at the time. You don’t need to speak
Norwegian to know that things weren’t going particularly well. I flew out as
a passenger on SAS, and I came back as freight
on a container ship. But the great thing is, travel is the most important
thing that people do. It connects everybody,
the more we travel, the more we understand
the world, the more we transfer wealth from richer countries
to poorer countries. It is the most benign and
marvelous thing we can do, and that is why
it is an honor to be looking into the future
here in Barcelona. Because I think as the amount
of work diminishes, as we get hopefully
a bit more spare time. We will all spend much more
time being tourists getting experiences, rather than
getting possessions, and we will all be
the richer for it. So thank you very much,
we have time for a few questions if you have any.>>[APPLAUSE]
>>Thank you very much indeed,
any questions? Here we are, and
here’s the roving microphone, or is it a question, or both? In the absence of a question,
I will just, while you’re thinking of a good
question, I’m just going to say. We got the news about the
British general election very, very shortly,
just an hour or so ago. This is going to
have another impact that we just weren’t expecting,
there’s so much political uncertainty
around at the moment. And what tends to happen,
and I know that we’ve got representatives from Touey, from
Thomas Cook, from Jet2 here. All very good companies, all with lots of inventory to
sell for May and for early June. And unfortunately, the British, when there is a big
political event going on, everybody tends to stay and
watch it on television. Rather than going to Greece and
Spain and Portugal and Italy and Florida and Cuba and
everywhere else. So yet more work to be done
selling those holidays, yes, question.>>I’d love for you to just, maybe expand a little bit
on the circular runways. Bearing in mind that in the UK,
we’ve been trying to get a third runway at Heathrow forever, and
we can’t make a straight runway. How realistic do you think it
is that everyone’s going to completely switch to
this new circular runway?>>So this circular runway, I’ll
see if I can spin back and get the, crikey, rewinding through
history very, very quickly. It’s going to be quite, I spent a long time talking
to the guy who designed it. And the idea here is, you can
just about see it here, so one aircraft is coming
down there, well, another one is just turning off. You’ve got no problems with the
wind direction because wherever the wind is coming from, you can always fly into
it because it’s circular. Pilots have quite
an exciting time, I don’t know if we’ve
got any pilots here? From what I understand, landing
is the trickiest part, and that’s when you’re
going straight. I feel, if you’re landing, and then immediately having to
corner like a Formula One driver, I think it’s gonna
be really, really exciting. But the European Union has
put millions into this, they are very serious. And there is going to be a model created using cargo
drones quite soon. And then if that works, they are
going to start doing things with designing a new
airport somewhere. But they’re going to need
quite a lot of space, it can’t be a very
busy airport initially, cuz they’re not really
sure how it will work. But they say, Europe will run
out of space by 2050, and if we don’t have circular
runways, we’re all doomed. But they’ve been saying
we’re all doomed for quite a long time, and so far,
we’re still here, I think. We’ve got time for one more
quick question, if there is one. Okay, well, look, I think,
since we’re now exactly on time, I will thank you so much. I’m looking forward, as I say, to talking to as many
of you as possible. I really appreciate
all your time, enjoy the rest of your
afternoon, thank you so much.>>Thanks so much.>>[APPLAUSE]
[APPLAUSE]>>[LAUGH]>>It’s all right, we’ll get there.>>[LAUGH]
>>Thanks for these inspiring and though
provoking interventions, Simon. Let me now introduce
you to Matt Vignieri. Now we’ve kind of, with
Simon discovering how travel is transforming, I’m glad to
have Matt coming on stage to discuss about how the marketing
of travel is transforming and evolving as well. Matt is Managing Director EMEA
of Kenshoo, a leading provider of
online marketing services. And he will be sharing his
thoughts, vision, insights, best practices,
on this transformation for the marketing of
travel industry. Welcome on the stage, Matt.>>Thank you.>>[APPLAUSE]
>>So this presentation doesn’t contain any viruses,
anything circular, but it’s quite inspiring and hard
to follow somebody like Simon. So again, I’m Matt Vignieri,
I’m based in London. You probably
recognize the accent. [LAUGH] I’ve been in London for
the last three months. I moved from San Francisco where
that last picture was taken, quite a long time ago. As the, to run Europe for
Kenshoo. And Kenshoo is a, as Alex had
mentioned, a marketing platform that enables marketers such as
yourselves to take advantage of the opportunities in both
the search and social platforms. And so basically I just wanna
share a couple of thoughts and ideas, and
things that we’re seeing. And this is all based
on Kenshoo data. Travel is our largest vertical,
followed by retail, but I think you all know this,
right. You’ve seen the increase
in year over year trends. From 2015 to 2016 we’ve
seen search spend go up with volume following
behind it with clicks. But on the side of
social we’ve seen actual spend stay fairly limited,
but volume go up. And there’s a reason for
that, and I’ll share some
of that with you. But what we’re seeing in
the marketplace is actually a challenge, or
perhaps an opportunity. Because the competitive market
for travelers is increasing. You know who those
competitors are. I think Simon mentioned
some of them, right, Airbnb is in the business. We’re at a Bing event so
I can say it, Google wants to be
your travel agency. Everyone’s for that dollar, and millennials as I heard someone
during the networking, we were talking a bit about millennials
and what’s going on with them. Are trying to decide where do
they spend their travel dollar, and how do they do it? And so
with competition increasing and disruptive new models coming
into play, we at Kenshoo have found a few things that
we’d like to focus in on. And one is actually taking and delivering excellent
customer service. We think that’s the biggest
differentiator that a travel partner can make today. And you do that really the way
we see it in three ways, right. One is through diversification,
the other is through focus, and then finally through scale. And diversification and scale are what actually deliver
the volumes you need to do this, but it’s focused on
the customer experience. Because defining that experience
is actually where we see travel, online travel,
making a difference. So let me share a little
bit about diversification. We have a little feature
in our product called campaign mirroring. And with campaign mirroring
basically it’s a very low effort, low investment
of time on your part. And so we’ve diversified by
going into another channel. For example, we’ve seen a lot
of our clients who are spending a tremendous amount on search,
particularly on Google. And we thought well what
if we took the advantage of the investment on
the Bing network. And so what I’m gonna show
you is actually the year will be your change and then the ROI
that we saw simply just by mirroring effective
campaigns on one channel, Google onto another Bing. And so what you can see is
actually 47% growth in year over year, but
a $12.85 in increased ROI. So for impact,
I’ll put that up there again. As so you start to
diversify your channels, what we’re attempting to bring
to you is actually opportunity to look at other
publishing channels. And we talked a little bit about
the innovation of customer experience, and what we believe
is actually that you can take intent and engage with
intent onto other channels. And so looking at the potential
that you have in taking all of that search information and
driving it into other channels, such as Bing, for example,
or Facebook or Instagram. We’ve seen tremendous
growth in the marketplace. And so let me share with you
what one of our publishers saw, but the data pretty
much speaks for itself, where we’ve seen cost
of sales go down, ROI increase. Simply by taking the intent that
they built on search and driving it towards other channels and
creating that experience that tracks you along what you
want to accomplish in travel. And so that’s really all we
wanted to share today with you, but thank you for having us. Thank you Bing. And we look forward to sharing
some more innovations with you as the day goes on.>>[APPLAUSE]
>>Thank you, Matt, and
maybe there are some questions, because those are some
impressive set of data. Are there any questions for
Matt? Pretty quiet audience. There, in the back,
let me go to you.>>Okay.>>Hi, how do you foresee the
change from the expanding voice search, especially on Bing
>>Thank you. That was actually
one of the points. Voice is providing
an interesting signal. And so one of the things that if we went a level deeper on how
some of this data has arrived, there are actually quite
a few signals that we cover as we look through the changing
attribution models, if you will. And so signals on mobile
devices such as pinches, swipes, and how fast you swipe
and how fast you pinch or whether you spend some
time on that mobile page, are all signals that
we’re starting to gather. Voice is a whole nother
opportunity, if you will. What we’re starting to see is
actually voice becoming leading search, right. No one’s gonna go to a mobile
browser and type in. They’re just gonna say, hey Cortana, I’d like to go
to Barcelona this weekend. What’s interesting about
that is the transformation is that there’s only gonna
be one position in the ad. And that’ll be the response
that the voice personal assistant gives. So what we see changing
is actually competing. I don’t know what the costs
are going to be for someone to do a voice search and
get that single position. But you can bet that Amazon,
for example, and Alexa want to make
sure that they give you the very first most
profitable product on there. And so the same is gonna go for all other voice assistants,
in my opinion. Yeah, thank you.>>Does that answer
your question? Good, and it’s a good thing that
Amazon, but also of course iOS, are partners of Bing. So->>Yes.>>Our algorithm
can learn everyday. Are there any more questions for
Matt? Well thank you very much then,
Matt.>>Thank you very much.>>Thank you very much.>>[APPLAUSE]
>>So I’m talking about the insights, we have a next
speaker for you and it’s a she. And she actually knows a lot
about travel insights. Talking about Sarah Essa, and she’s our travel
insights manager, based in the UK with a lot of
knowledge in this industry. And as you can see on the next
slide, which I will show you here, she loves playing around
and spending time in the search logs of your customers, either
to understand their intent but also to understand what her next
travel destination will be, because she loves
traveling also very much. Without further ado,
welcoming on stage Sarah Essa.>>[APPLAUSE]>>Hello, everyone. All right, I’m just making
sure I get this head for this microphone,
don’t be too squeaky. It’s a delight to be
with you all today. And I’m going to be talking
to you about travel insights. So my presentation
today is called, Through the looking glass. Now some of you
will recognize that this is actually even tribute
to Alice in Wonderland. And I’ve chose this theme
specifically because we’re going to embark on a bit of
an adventure today. Gonna take you through
the looking glass behind the screen
of a mobile PC or tablet and into the world of
online travel consumers on Bing. But before we do that, let me just say a few words on
insights management at Bing and our mission which is best
epitomized by this quote, a moment’s insight is sometimes
worth a life’s experience. Here at Bing many of us
used to be in your shoes. We used to be agency side,
client side. An so we appreciate how frantic
campaign management can be. How you probably have data
pouring of your hair, ears, eyes, feet, everywhere. And sometimes taking that moment
to make sense of all this information, to really see
the wider audience, vertical marketplace picture, that can
slip to the bottom of your list. And this is where insights
management comes into the frame. We want to be that helping hand
of insight to our advertisers. We want to provide you
with cutting edge research to give you that moment’s
insight that is truly invaluable to the success of
your campaigns. And just as you know, we’re actually a really
generous crowd here at Bing. Because today I’m not gonna
just give a moments insight, I’m actually gonna give you
40 whole minutes of insights.>>[LAUGH]
>>So be prepared. Okay, so
what will we exploring today? So the objective today
is to really enrich your understanding of online travel
consumers on the Bing network. What I want to do is I want to
confirm those nagging suspicions you’ve always had. Want to challenge those
preconceptions that you have as well, and hopefully
teach you something new about online travel consumers that you
didn’t know on the Bing network. In order to do that we’re going
to explore three chapters today. We’re going to look at
search user journey, search audience behavior, and
also search destination trends. So without further ado
let’s start off with search user journey. Search user journey is this
really hot buzzword in travel right now. So many of our travel
advertisers are keen to know more about
search user journey. So we’ve listened to you, and we’ve been pioneering
innovative research on our end to get under the skin of
the consumer decision journey. What we did is we took a sample
of about a thousand users who made searches on the top
generic flights, hotels, and car hire searches on
the Bing network. And then we monitored their
Internet activity over the course of two months, every
January and February, 2017. And from all that information
that we gathered we were able to map out a consumer decision
journey for flights, hotels, and car hire. As this analysis is brand new,
it’s the first of its kind, the test run of this study
was done for the UK market, and I’ll be showcasing
the findings of that today. It is our ambition however
to roll out this analysis to other media markets
in the future. So we’d be really keen
on getting any feedback we can about the views that
you’ll be seeing today. So to kick off let’s start
with the consumer decision journey for flights. Our first finding relates to the
length of the consumer decision journey with flights. We found that the average
length was 20 days. However, some of you will also
notice that there is a notable proportion of users who
booked on the same day. So if you look at the largest bar on the graph,
you can see that there’s a notable proportion of users
that booked on the same day. Now this might surprise some of
you because we often work on this assumption that when
you book high value items you take your time
with that purchase. But actually our study
is showing evidence of quick decision making
when it comes to flights, even though it is
a high value item. If we now turn out attention
to the number of searches in a consumer decision journey for
flights, the average in terms of number of searches for
flights was three. Now you might be
wondering at this point, what does three mean? Is that high? Is that low? What’s the context here? So let’s throw in
some comparison. We found that the average
number of searches in a consumer decision journey for
hotels was 11. We found the average
number of searches for a consumer decision journey for
car hire was eight. So actually flights has the
lowest average when it comes to number of searches in
a consumer decision journey. Now why could that be? Well the story we’re seeing
that is emerging is one that suggests that the consumer
decision journey for flights is not as overly
complicated as we might imagine. We are seeing evidence of
quick decision making, and simple decision making. Even though it is
a high value item, it doesn’t necessarily conform
to the assumptions we would have when it comes to
high value items. If we now turn our attention to
the most popular domains visited by our sample of 1,000 users, we can see that Skyscanner is
the dominant domain for the UK. However, there is a lot of user
overlap between the domains, between the OTAs in particular. Given that there was
only 1,000 users and if you look at the distribution
of users by domain there’s quite a lot of overlap
that is occurring. We’re now going to deep dive
into the stages of a consumer decision journey. But before we do that,
let’s define the stages. So we believe that there
are five stages in a consumer decision journey. They start with stage zero
which is the first search, stage one which is
the beginning of research. Stage 2 Upper funnel
consideration. Stage 3 Lower
funnel Inquisition. And stage 4,
which is the Conversion itself. With this in mind, let’s turn
our attention to queries. And the types of queries that
occur at different stages of the consumer decision journey. Now queries are really important
because they’re pathways to consumers. And with consumer decision
journey, you can see the role and the value of different types
of queries at different stages. So what we found when we
analyzed the top queries for consumer decision journey for flights is that location
queries become more dominant in the later stages of
the consumer decision journey. You can see that it starts
off at 23% in state 0, and it increases 40% in stage 4, which
is quite substantial increase. And to further sort
of visualize this, we actually have some of the top
queries at each of the different stages would be consumer
decision journey for flights. And the query’s highlighted in
green at the location queries. And you can see that they
become a lot more prominent in the later stages of
the consumer decision journey. Moving on to the decision
consumer journey for hotels, and to reiterate, this is also
based on the same methodology. We used a thousand users. We made searches on the top
generic hotel queries and monitored their Internet
connectivity over the course of January February 2017. So our first finding relates
to the length of the consumer decision journey. The average length for
hotels was 26 days. Now, again, you might be wondering
what does 26 days mean? Is that long, short? Well, let’s add some
comparison into the mix here. We found that the length of
a consumer decision journey, on average, for
flights was 20 days. The average length of
a consumer decision journey for car hire was 12 days. So hotels on average,
have a longer length when it comes to consumer
decision journey. And why might that be? Well, our research suggests
that the reason for this is because hotels are a complex
product, that actually there are many variables that people
consider when booking a hotel. Not just the location, it could be to do with
the facilities of the hotel, the amenities within the room,
proximity to points of interest. These are just some examples of
the variables that people take into account when
booking a hotel. Which is why we believe they
take longer to book a hotel than they would when booking a flight
or car rental services. If we look at the average
number of searches in a consumer decision
journey for hotels, the average we found
was 11 searches. Now, again, let’s contextualize
this number, what does 11 mean? Well, the average number of
searches in a consumer decision journey for flights was three. The average number of searches
in a consumer decision journey for car hire was eight. So, hotels have the highest
average with number of searches in a consumer decision
journey when compared to other sub-verticals. And again, this just supports
this story we’re developing here about the complexity of
hotels as a product. There are so
many variables to consider, which is why consumers take
longer, in terms of days, and also require more searches
before they convert. If we turn our attention
now to popular domains, we can see that booking.com is
the dominant name for hotels. But again, if you look at the
distribution by number of users, you can see that there
is a lot of user overlap between the OTAs, and
between the domains as a whole. We also see some unexpected
popular domains. You can see easyJet and
British Airways in the mix, which might surprise you
because, in fact, easyJet and British Airways do
offer holiday services. You can book hotels and flights
on easyJet and British Airways. And that may be news to you, but it seems that our consumers and
our users are aware of this. And it is amongst the most
popular domains in our study. If we now look at the types of
queries that are occurring each stage, we can see that
generic plus location queries are very dominant in the early
stages of the journey. But they shrivel as we progress
towards the end of the journey. So they go from around 30% in
stage 0 to just 7% in stage 4. And stage 4 is very much
dominated by brand hotel name queries which account for about 70% of the top queries
that are occurring in stage 4. Which again is just that
illustration of the complexity of hotels as a product. People start off which
narrow searches to explore the variables and the options. And by the end of the journey,
they have really narrowed it down to a specific hotel
that meets all the criteria. And of course, you can see a visualization now
of these top queries by stage. And you can see in green the
prominence of branded queries towards the later stages of
the consumer decision journey. You also see queries becoming
more long tail towards, as you progress towards
the end of the journey. You can see that at stage 4,
you have queries like, Bentley Hotel, New York, promotional code, which are
branded, but also long tailed. And that’s just that specificity
kicking in, in stage 4, as people know what
they want to book. And now for the finally, that
lost consumer decision journey, which is a car hire. So in terms of journey length,
the average for the consumer decision journey
length for car hire was 12 days. However, we see a significant
proportion of users also booking on this same day. There are around 22% of
users in our study booked on the same day. Which would confirm those
nagging suspicions you probably already but most of you have, that car hire is a last
minute purchase. It’s something you do closer to
the holiday rather than book months and months in advance. If we look at the average number
of searches, the average for car hire is eight. Which suggests that there
is some consideration involved when booking car hire. In terms of its average
compared to flights and hotels, eight searches is midrange. So there is a degree of
consideration involved within the consumer decision
journey for car hire. And then if we look at popular
domains, we can see that rental cars is the dominant
domain for car hire. And actually, unlike
the previous, unlike flights and hotels, rental cars really
is a leader in this space. Because there isn’t a great deal
of overlap between the other domains, as there was in
the case of flights and hotels. Which would suggest that
actually when it comes to flights and hotels, consumers
are more likely to search and compare, try and
get the best deal possible. But with they feel to car hire, there is some brand loyalty at
play here which is resulted in the concentration of users
going to rental cars. And finally, when it comes to the types of
breeze at the different stages, we see that generic plus
location and generic plus airport queries dominate in
the early stages of the journey. But that all starts
to filter away as we progress towards the end of
the consumer decision journey. And we see brand plus
location queries and brand queries really
taking the lead. In particular, you can see that
brand plus location has a very minimal presence in stage 0. But it progresses to
around 40% in Stage 4. And if we look at the actual
queries themselves, you can see the queries in
green are the branded queries that become a lot more prominent
in the final stages of the consumer decision journey. Now moving onto our
second chapter today, which is to do with search
audience behaviors. When it comes to search
audience behaviors, we wanted to tackle another
buzzword in the travel industry. Which is being mentioned,
actually, just a few moments ago, which is
to do with digital assistance. So, before we get into that
let’s start off with a brief overview of the digital
assistants landscape at the moment. So before you have the four
key digital assistants in the market, and
in terms of digital assistance, they sort of fall
into two categories. You have digital assistants that
live on your phone, on your PC, or your mobile, like Cortana. Or you have digital assistants
that are devices in themselves, like Amazon Echo. Now some of you may know this or
may not know this, but out of the four digital
assistants that are on screen, Bing search actually
powers three of them. We power Alexa, Siri, and
also Cortana, of course, which is Microsoft-owned. So the question we, well, the question that we received
just a few moments ago that, we’ve been receiving
from many of you is, what is the imprint of
digital assistants in travel? Bing is clearly present in this
space, but what is happening in the travel vertical when it
comes to digital assistants? So we investigated this,
specifically, to try and answer that question. So what we did is we looked at
the UK, Germany, France, and Italy, some of our key
markets in Europe. And we tried to figure out
the contribution of Cortana digital assistant to overall
travel search volume. Now this is not gonna come
as a surprise that digital assistance is responsible for less than 10% of overall travel
search volume in these markets. It’s no surprise because digital
assistance is in it’s infancy, and we don’t expect it to be
contributing to the majority of travel search volume
that comes through. What we were looking for,
however, was signs of growth. We were trying to
get a sense of, is digital assistance
growing in these markets, and if it is growing, what is
that growth rate look like? And this is what we found,
we can see that search volume from Cortana digital assistance
in the travel vertical is growing across
all these markets. The growth rate varies
depending on the market, and also depending on the travel
vertical that you’re looking at. But there’s overall, a really positive story here
of Year on Year growth when it comes to volume that is coming
through from digital assistance. And that is a really promising
sign of a greater role that digital assistance can
play in the future. There is also a device
story here at play when it comes to
digital assistance. If we look at this example
of Cortana assisted flights searches, if we take the Year on
Year growth of Cortana assisted flights searches and
slice it by device, we can see that the Year on
Year growth is mobile-driven. So there is clearly a device
preference when it comes to digital assistance. If we look at Cortana
assisted hotel searches, the same story emerges, if you
slice that Year on Year growth, it’s mobile-driven. And if we do the same for
Cortana assisted car hire searches, you slice
that Year on Year growth, and it is also mobile-driven. So there’s clearly a strong
device preference for digital assistants that is
true across all the key travel sub-verticals in these markets. And lastly, what about the types
of queries that are coming through digital assistants, that are coming through
Cortana in travel? Well, when it comes to the brand
generic mix, we were able to see that the top queries in terms of
volume that we’re coming through Cortana, in travel, in these
markets, were brand-driven. And so it’s an illustration that
consumers who are using digital assistants have specificity
in mind when we use digital assistance. And what about the future
of digital assistance? Well, the future is
looking very bright, its forecast that there
will be 4 billion mobile OS-based assistants in
use by 2021 globally. And what does that mean for
advertisers such as yourselves? Well, it’s also forecast that
advertising spent will increase by 104% by 2021 with regards
to digital assistance. At the moment digital
assistance isn’t monetized in many places, but that is certainly something we
can expect to see in the future. And finally,
our last chapter for today, search destination trends. So over the last year we have
been listening to all of you to get a sense of what
destination insights you were after that would be impactful
to you, to help you understand what destinations are top of
mind for online consumers. And as some of you may be aware,
we actually produce a monthly trending travel
destinations report. We’ve recently, well over the
course of the last year, really, we’ve improved that report, we’ve added many
new features to it. And I really wanted to take this
opportunity to talk about those new features, and
their use cases as well. And, of course, if you
aren’t aware of the trending travel destinations report,
it’s produced monthly, and it’s available through
your account team. So please feel free to do so,
and explore this report
as well afterwards. So, firstly, when it comes
to destination trends, one key thing that you can do
with our trending destinations report is recognize
change in consumer taste. So to illustrate this, I’m gonna use the example
of France as a case study. So it is no surprise,
I’m sure to you, that there has been
a decline in French tourism. And if we look at third-party
data, we can see that France lost over 1 billion Euros
in tourism sales last year. Foreign visitors to
the country are down by 7%, Paris was hit particularly hard. This decline that is happening
in French tourism is also very visible on the Bing network too. So, if we look at UK volume
Year on Year, or flights to French destinations, we can see
an interesting pattern emerging. So we can see that in June and
July, UK volume for flights to French destinations
was actually up Year on Year. But following a string of
terrorist attacks in July, you see a really sharp incline,
decline I should say, happening in August. And actually, that Year on Year volume
decline continues from August. And it hasn’t really recovered
since even in January, which is when we see the most
travel search volume on Bing. You don’t really see
a significant uplift or people searching to fly to
France who are based in the UK. So this is just
an illustration of how reactive consumers can
be to current affairs. And our report allows you
to see that reactivity, but also to quantify the loss too. Because it’s easy to
predict that when something terrible happens people may not
wish to travel to that location. But what’s harder to predict is
to really quantify that loss, and with our report
you can do that. The next thing, the other
feature of the trending destination report is to do with
top trending destination based on Year on Year growth. I should add that you can see
trending destinations for multiple sub verticals
in our report. We have the example of
flights above but you can see trending destinations for
holidays, for car hire, for hotels, for cruises and
for a number of markets. So we have this data available
for all Indian markets and also North American
markets as well. But in the example, of course,
I’ve just selected a few markets, and
used flights as a vertical. But this is really useful
too because it helps, because in the absence, when
certain destinations decline in terms of search volume. The question naturally arises, well where are people
traveling to instead? And when with trending
destinations you can see those destinations that are rising in
times of year on year growth. That perhaps you may not be
able to see in your campaigns, but with our report you
can actually see what is happening on our network. Lastly, well not lastly,
two other slides, I forget. But we also provide information
on points of interest. And again this is available for
all markets and North America markets. And this is really interesting
too because actually, when it comes to points of interest,
that can be very influential when people decide on hotels or
car rental services or other. Or even if you have a business
that sells tickets to points of interest, this could be very
insightful to know the rising points of interest in terms
of year on year growth. And again it’s one of
those things where you may not be able to see
this trend in your campaigns, but through our report you can
see what’s happening on our network as a whole. And finally we also provide
you with top volume queries. For all [INAUDIBLE] markets and
North America markets, for many sub verticals that
I’ve previously mentioned. And this is really useful
as well because it means that you’re capturing these
top volume queries in your campaigns, not missing
out on traffic for those key products
that you sell. So now we’ve reached the end of
our journey through the looking glass, and what did we find? Well, I’d like to take you
to the beginning here, really, in terms of what
we set out to do today. So I wanted to confirm those
nagging suspicions you’ve always had, challenge your
preconceptions, and also teach you something new
about online travel consumers on the Bing network. I believe that we’ve covered all
three grounds over the course of three chapters that I
took you through today. So if we start with search
user journey, we discovered that actually audiences behave
very differently within travel. If you look at
the example of flights and hotels, both are high
value items, but the audience behavior
is very different. So if you have a business
where you sell all of these products or
some of these products, optimize those campaigns
to the audience for them. It we turn to search audience
behaviors we confirmed that nagging suspicion, that rumor, that digital
assistance is growing. It is growing, but
we further unmasked that growth. We were able to attribute
it to being mobile driven, and we were able to see that
a lot of it is brand driven too. So while presently digital
assistance is not a leading contributor to travel
search volume, we do expect it to have
a greater role in the future. And that you should be prepared
for that with brand first mobile strategies to really take
advantage of digital assistance. And lastly, we looked at
search destination trends. We highlighted the new features,
the use cases behind those features, and how you can really
use those features to get closer to those destinations and
points of interest that are at the top of mind for
online travel consumers. And there we have it. So that is, thank you all
very much for listening. And I don’t know if
we have time for questions, but if we do I’d be
more than happy to take them.>>We have a few moments,
so if you wanna ask any particular questions
of Sarah, feel free to. Simon?>>Sorry everybody. That was fantastic, Sarah. What an amazing amount
of research and very well delivered, thank you. One thing which really
surprised me, and I don’t know how many of us
will have done the same when booking a leisure trip as
opposed to a business trip. 22 days between deciding I’m
gonna go and booking the flight. That strikes me as
incredibly low. Not least because airlines tend
to say we’ve got two seats left at this price and
then the price is gonna go up. So I’m interested, and
perhaps if there’s somebody from an airline who wants to respond,
about why that takes so long. You snooze you lose, I think is the phrase that
the airlines might use. And I don’t know what
your response is. Were you surprised by
that length of time?>>So I believe
the average was 20 days. And yes, I would concede
that I was surprised too, because personally I’m one of
those people who takes weeks and weeks to make my own decision
when it comes to airlines. So I was, it did strike
me as a low number, that it was just 20 days. But it seemed, but I can see
why, when you think about it, a flight product itself
is not highly complex, it really just relies
upon a location. And given how sophisticated
comparison sites are nowadays, you can get the information
you need pretty quickly. So I can see how with the
comparison sites and the lack of complexity of the flights
product that might result in people being quicker when making
decisions to do with flights.>>Sorry, it’s me again. That’s really
interesting cuz you thought that 20 days was low. I though it was high.>>I see.
>>Should we take a vote?>>[LAUGH]
>>Who takes less than 20 days to make a decision? Okay, I’d say slightly more. Who takes more than 20 days? Okay. So well maybe it’s just cuz
we’re lucky enough to work in this industry, or in my case, pretend to
work in this industry. It’s yeah, fascinating anyway. Thank you very much.>>Another question for Sarah?>>Hi, I had a question
around the voice searches. At what point, cuz voice
searches are inherently quite a long tailed terms,
you have lots of words in there. At what point will you start
showing ads against those? And at what point should kind of
advertisers be actually building out campaigns to support those? Is it just a case of waiting to
see the searches come through through broad matches and
things or should we be doing these
things ahead of time? So I don’t have
a precise timeline for when digital assistants
will be fully monetized. But with regards to the question
on long tail searches, I mean, long-tail searches are not just
happening on digital assistants. We saw earlier on that they were
happening generally in searches, well with certain sub verticals
they tend to be more prominent. So as we saw with hotels,
we see long tail searches toward the end of
the consumeritization journey. So I would say that it is worth investing if you
are keen on capturing long tail. And if we see evidence of long
tail being towards the end of the decision journey, that
people do convert on long tail. The best way to capture it
currently would be through investing in broad match, making sure that you are present
when people are searching for those long tail queries and
are about to convert on them.>>Another one here.>>Firstly, kind of fantastic
presentation, thanks for that. I think it was quite interesting
that in the kind of different stages you never really kind of
call out differences between mobile and desktop. Is that kind of
a conscious decision? Because you’re treating
it more as a consumer. Or how would you expect
the behaviors to differ, mobile versus desktop
through that?>>So I would say that, I mean,
generally speaking with travel, it is a PC dominant vertical. So in terms of practical
optimizations with your keyword strategies, and
your bids, and things like that. I would assume that the decision
journey analysis that you’ve seen is led by PC
in that regard. And so the findings that we have come
across with consumer decision journey analysis would apply to
the majority of your campaigns. And sort of those findings would
be the most actionable when it comes to actually optimizing for
conversions because as we know travel still to this day
is quite PC dominant. Because people tend to
book using PC rather than actually book on mobile. But it is
an interesting question. I mean, we haven’t thought of
actually segmenting the decision journey by device. It’s something we can
certainly explore. To see what that
would look like. I mean, my gut instinct would
say that when it comes to the actual conversion, that
would happen, most likely on PC. But it could vary, I mean, it’s possible that with
low value purchases you might have conversions also on mobile
too rather than just on PC. So very interesting feedback, we
will definitely be incorporating that as we expand and further improve our consumer
decision journey analysis.>>Sara,
one final question for you.>>Yeah, I was wondering, so these vertical are highly
related, one with each other. So did you get any information
about what is a usable behavior? Just, for instance,
first try to buy the flight, then the hotel, and afterwards
the car, other interactions that you happen to find within
this whole process?>>So it is a view
that we can generate. It’s not one that I’ve
necessarily included today, but when you essentially,
the method that we use, we analyze Internet activity, all of it, everything that is
searched for these 1,000 users. So we can see we can obviously
see the searches they made that were related to hotels. But we can also see other
searches that relate to really anything else,
many other things, including other travel sub vertical
like car hire and flights. And so that is information
that is available and we are able to see
that overlaps. How like if how many of
a 1,000 users that we have for hotels, how many also searched
for car hire services, and how many also searched for
flights. We’re able to capture
that overlap, it’s something that we can do. It’s not something that we
have included today but again that’s really
good feedback. And we can obviously look
to incorporate that view, because we appreciate that
the providers out here who do more than just hotels and
flights. That they actually have
multiple services on offer. Thank you very much for
that feedback.>>Thanks so much, Sara. Round of applause.>>[APPLAUSE]
>>Very good insight and a lot of engaging questions. So let me now introduce
you to our next speaker. This is James Murray, he’s a product marketing
manager for Europe. He’s been touring
a lot recently. Beside the destination
James is very excited about how you get there,
and when and how. So that’s why he’s very
much looking forward to what’s coming next. So let me introduce
James Murray, talking to us about
the future of search and what it’s gonna mean for
you and your business. James.>>Thanks very much.>>[APPLAUSE]
>>That’s a dreadful photo, okay. So hello, my name’s James. I am here to talk to you
about the future of search. And so when we were wondering
about what were the kind of things that I could
talk about today. There’s so
much which is happening and so many developments that
are going on within search. Sometimes it’s really difficult
to pick out just a couple of key things that we wanted
to share with you. But I was also keen to make
it something which wasn’t just about travel. Travel is gonna feature clearly
in what I’m talking about, because you are all here
to learn about travel, from a Bing and
a Microsoft perspective. But what I wanted to do
is to give you a slightly wider picture as well. And the first thing that I
wanted to kind of just start with is that I really
feel that the future is sort of now because
its already here. Most of the stuff that I am
gonna be talking about today are products that already exist. Or trends which
are already happening. Or things which are already
sort of pretty fully formed, or certainly significantly down the
track to being something you can start to invest in today. And so as I go through, I’m
gonna sorta keep reaching back to some of those things
that I’m talking about. About the future being something
that of course we think about being 1, 2, 5, sometimes
even 10 years down the line. But what are the things that you
can actually start doing today. And starting to use and
incorporate some of these things that are gonna be
really important for what you’re gonna need in your
business to evolve as part of sort of a wider ranging
digital transformation. So I thought we would with
three sort of key trends that have hopefully, none of these are things
which are brand new to you. Some of my sort of
naming conventions might be slightly different. But the things that you’re
gonna be thinking about or the things that you need
to be thinking about over the next couple of years. I think, are invisible UI which
encompasses a whole bunch of different things from
new technologies, to digital assistance,
to voice search, visual search. And the idea that
we’re not gonna be so constrained to our
mobiles anymore. Audience based buying, something which I think we’re
all very familiar with and that is definitely the way
that the industry in moving. Starting to move away from
thinking about keywords and thinking about who are the
people behind those searches. And the third one which I’m gonna talk a bit
about is big data. I almost feel a bit sort of
dirty when I say big data, cuz it’s one of those
buzzwords which I hate. But it is, nonetheless, one
of those things that can’t be ignored, and is absolutely
integral to the other bits and pieces in these other trends. So I wanna walk you through
these with a few thoughts and ideas of where we’re going
as Microsoft and as Bing. And then take you on
a journey as well for what that means specifically for
search. Let’s start with invisible UI. If you’re not familiar
with this already, if you haven’t seen this
already then you want to start thinking about it. This is something that Google is
working on with Levis which is a piece of touch sensitive
fabric that allows you to make a digital interaction
just by stroking it. Now when we start to think
about the idea of invisible UI, this is the kind of
thing that we mean. You’re gonna start to be able to
have interactions with devices that are by their very nature
completely screen less. And so in this kind of world
when I can just tap my jacket to get the search
information that I need, why would I need
a mobile phone anymore? This is ultimately is the thing
that you’re all driving towards at the moment, and the thing that you’re most
caring about at the moment. But this is not gonna be
the device of 2025 and beyond. I’m not saying by the way that
mobile is just gonna completely disappear overnight. Of course it’s not. It’s still gonna be
incredibly important, but it is something that you need
to start thinking about. As something that we’re moving
towards in the future as a world without mobiles and
without screens. And this is a resell example of
a environment where you have no longer any need to have
a particular mobile device and you can with holograms,
start to pick and choose. In this case someone’s picking
a chair from an IKEA catalogue, and he knows already that it’s
going to fit perfectly in with the rest of his furniture. So that the next day
when that thing arrives, he doesn’t need to worry about
has he got the right color, is it gonna blend in with
the rest of his furniture, because he’s already had
a perfect rendition with a hologram in real space and
time overlaid onto his reality. You’re gonna see and you’re
gonna have a chance to play with things a little bit later. And although this is a retail
example, think what you could do or think what this might
mean for your industries. Imagine being able, as
a consumer, to wear HoloLens and for you to be able to look not
just at the weight of your bag but to see whether it
will fit perfectly into the overhead locker
in the plane. You’ll be able to have
a complete 3D hologram of the inside of the plane, and
check whether your bag will fit. But you’ll also be able to check
the difference between what is a inside of a plane look like
when you’re flying with BA. How much leg room do you have
versus how much leg room you might have flying with easyJet? So that could be the deciding
factor of the future about whether you book with
a particular airline. And these are things
which we are trialing and that are all possible today. This is not something in
the far flung future. These are things that
we’re using today. Now a corollary of that is
that as we start to move away from screens, that we
start to get to voice search. We’ve already mentioned it
several times today and by 2020 according to the Internet Market
Trends Report by Mary Meeker, 50% of all search is
going to be voice. That’s huge. If you look at what we shared
today that around 10% of our traffic is coming through
digital assistance, through Cortana and voice, that means
that in the next three years we’re going through a massive
growth spurt with voice search. But that’s not unusual when you
think about the proliferation of devices, the ways that we
can access and the ways that people are becoming much
more comfortable using voice. So as advertisers you
need to start thinking, what are the steps that
you can start to take to make sure that your business
is future proofed for voice. Using things like
question keywords in your campaigns, to make sure that
you’re capturing the way that people are searching
when they’re using much more natural language
than if they’re typing. Now one of the interesting
things is that we are seeing a renovation and a change in the way that people
are searching through voice. And a part of that has been
driven by the increases in the technology behind voice. Recently, Microsoft
had a ground breaking moment where we got
to a historic low for the error rate of our voice
recognition software. What we do is there is
a standardized test, which everyone who is a, whether
you’re human or a machine, if you’re going to be
a translator or a transcriber, you have a certain error rate
which you’re allowed to get from listening to someone’s voice and
being able to type out the text. Our voice recognition
software was the first nonhuman to pass
the transcribing test. And we now have an error
rate of less than 6%. That is pretty phenomenal when
you think about what that could potentially mean for search. And not only the fact that we
now have lower error rates. Also, we can do things so
much faster. Speed, obviously, is absolutely
critical to most of the distal interactions that we have. The faster you can do something, the faster you can process
something, the more you’re able to be able to make advances
with this technology. Now I saw a really interesting
thing when I was looking through some of
the Cortona data. And it speaks to this
error rate messaging. Clearly we’re not perfect. Still within that 6% there
are errors that are made. As I was looking through some
of the query data over Christmas last year, there was
a spike of searches for people who were searching for
fragile lipstick. And I was confused, but
this thing stuck out at me, I did a couple of searches just
to see if this was a brand or something that I was missing. But it wasn’t a brand. These were people who were
searching for Mary Poppins, how to say supercalifragilistic. But it was getting it wrong, so
actually we were misinterpreting the stage as supercalla fragile
lipstick xp allah docious. Now the thing is, is that it took us less
than a day to fix that. From noticing and spotting
a trend of a weird thing, an anomaly in our data,
to be able to actually recognizing that when
someone’s doing that, when we have the voice
recognition, that now we do actually give you
the Mary Poppins video and so you all can sing along
to your hearts content. That is the speed and
the rate of consumption and change that we’re going through. So not only that which now I
think from a travel perspective we’re moving away from this
idea of searching in a box. So where previously you
might do a search like this, find me flights to
New York this weekend. You’re also gonna have
to get comfortable, not with just
the invisible UI but of UI’s which you don’t
have complete control over. So rather having a search that
you can control what ads show up, we could very quickly
start to see the move to bots. Where you’re starting to have
a conversation in Skype and where people are able to
interact with your bots, but bring it into a conversation, so that I could be chatting to my
wife over Skype and wondering, planning where are we gonna
take our next flight. And the Skyscanner app, or
Skyscanner bot can start to participate in that conversation
in a very natural language way. You’re gonna have an example of
some of the bot frameworks in the next speaker. So I’m not gonna take anymore
time to talk about that. But I think this is a really
fascinating area of development, and something that actually any
of you could start doing today. The final thing, I also, just
to round off this particular segment of this idea of
invisible UI, is Visual Search. Because we’ve been thinking about search as a purely sort
of text and speech based format. But the next evolution of search
is very much gonna be driven by being able to recognize and
understand objects. For those of you who have
ever seen me speak before, if any of you have
seen me speak, you’ll know that I like to
talk about my wife a lot. She tends to give me my best
anecdotes for presentations. So this is a picture of my
wife and I on our wedding day. And what I’ve done, is I’ve
shown the Microsoft caption bot, artificial intelligence, one of the pictures of
us on our wedding day. And what it’s done, is using
visual recognition software, is try to pick out what are the
key things that are happening in that particular image. So I’m not sure if you can read
it, so I’ll read it out for you. But CaptionBot says,
I’m not really confident, but I think it’s a man holding a
knife to cut a wedding cake and he seems not very happy. So first of all, I always have to sort of address
the not being happy bit. And of course,
it was my wedding day, so this was one of the happiest
days of my life. I have to say that,
contractually. And but the reason why I
don’t look very happy is because I’ve been posing and
sort of smiling for about 40 minutes at this point. And I lost all
feeling in my cheek. But just look at the complexity
of that image, and look at how clever the AI has
been in order to work out what’s going on in
that particular photo. First of all, I wanna do
we have a point, yeah. Check this out. Exhibit A. This is not your box
standard wedding cake. No. This is a per-spoke,
hand crafted Game of Thrones wedding cake that my
Aunt lovingly made for me. And for those of you who
are fans of the show, it has a real life rendering
of the Game of Thrones map. The armor of the scales worn by
John Snow the different houses, and the actual throne
with the crown and the sword sticking
out at the top. How on Earth did the AI
work out, what I was cutting into there was a
cake, and not some piece of art? Well, it looked at context,
because generally speaking, when you see a picture of two people
standing next to each other, one of them is wearing
a white dress and a veil and there cutting into something. Okay this is a sword, sword knife we’ll give it
the benefit of the doubt. Generally what they’re cutting
into is a wedding cake. Now we’re using this
intelligence and this AI to be able to truly
understand how do we get visual representation and how do we get
visual search off the ground? [INAUDIBLE] talking to you
a little bit about some of the implications
that might have for your business towards
the end of the presentation. So, [INAUDIBLE] I wanted
to sort of concentrate and just focus a little bit on the
idea of audience [INAUDIBLE]. I’m literally just gonna skip
over this in a couple of slides because, we all understand the
idea that we’re moving away from just thinking about keywords. And actually what we’re doing
in across our dish we’re buying is getting towards thinking about audiences moving
from searches to searches. Who are the people
behind the searches, and what they’re actually doing. And that the thing which
really makes that. Governable and
makes it actionable is data. Particularly when you look
at the growth of devices and the things that are going
on with digital. So the average household now
has over six connected devices between them. This is one of my favorites. There are more mobiles
in the world than there are toothbrushes. And internet users are due
to grow to 4.2 billion from 3.4 billion by 2019. That’s an extraordinary
amount of consumer data. An extraordinary number
searches that gonna be made. Gathering and harvesting all of that data’s
going to be absolutely key. Now the thing is. The speed of adoption of new
items, and new technologies, also absolutely fascinating. So if we take three of
the technological sort of, innovations, over
the last 100 years or so, the TV, the iPhone,
and Pokemon Go, obviously, if I was to just walk
you through, how long did it take globally to have 100
million users of televisions? Go on.>>20 years?>>20 years, good guess. A little bit longer, 38 years. Fast forwards to the launch
of the iPhone, any guesses? 100 million iPhones.>>5.
>>5, 10, that’s three years is a big one. How long did it take to a 100
million users of Pokemon Go.>>[LAUGH]
>>33 days. That is astonishing. And it just goes to show you
the rate of evolution, and the rate of adoption is going
faster and faster and faster. Now, the cool thing is,
when you have audiences of that magnitude, and when you can
couple really exciting data with it, you can get some
really exciting stuff. So this is a non-digital
example but I think is a really telling one. This was a campaign
that Spotify did for billboards around Brexit. And what they did was they
had a look at the data behind the people of what people were
actually searching for, and what they were playing
on their playlists. So if you can’t read it, it says dear 3,749 people who streamed
It’s the End of the World as we know it the day of the Brexit
vote, Hanging there. And I think that that is really
telling, and a really lovely little story, using data in
a way, data driven marketing, to be able to tell an emotive
story to gather people together, to say, actually, this is not just something that
is affecting one or two people, there are 3,000, nearly 4,000
people, who are searching for that specific song, because they
felt so depressed about the. So if we take these three
key trends, invisible UI, audience based buying, big data, I think these are the things
that you’re gonna need, and you need to be thinking
about for the future, for the next couple years and what
that means for your business. Not what do we mean when
it comes to search? How am I doing for
time by the way? I always go, okay. So, one of the things
that I mentioned with the facial recognition stuff, is
that is all driven by context. And so contextual search
is actually really, really important to
the next evolution of what we’re gonna do with some
of these experiences. So I wanna walk you
through some of this. So that the four key things
that we are thinking at Microsoft about how do we
understand contextual search? How do we give you a better
experience based on the context of what is happening? So there are four types of
context that we are playing around with, environmental,
social, emotional and external. I’m gonna walk you through
those very very quickly. Emotional context is
really interesting. This is the idea that, depending
on how you’re feeling and depending on your mood, this can
dramatically change the thing that you are looking for or
the information that you want. From a travel perspective, you
can think, you know never a good idea to try to book a holiday
when you’re feeling grumpy. But actually, when the weather
is miserable, people are always looking for summer Retreat so
that it can get better weather. So emotion clearly plays a huge
influence in the type of things that we’re looking for. Now there’s a really interesting
thing that happened, this is Doctor Henry Heimlich. He developed the Heimlich
Manoeuvre, unfortunately this is the best picture that I
could find of him, and he does look a bit scary. So apologies for
that he didn’t perform the Heimlich maneuver himself
until he was 96 years old, when he saved somebody’s
life for the first time. But imagine from
a search perspective that you are searching for
Heimlich maneuver. Now, how do we tell what is the
right information as a search engine to serve you? Well, we can use contextual
signals from your emotions using things like maybe
Microsoft Band or Fitbit to tell what’s
your heart rate doing. If your heart rate is nice and
calm, and you’re at a state of
general sort of relaxed, You might be searching for
Heimlich Manoeuvre in order to find out more information
about the doctor. However if your heart rate
starts to accelerate and we start to see that not only is
your heart rate heightened, but as you’re using voice search
that the pitch of your voice is strained. Well it’s highly likely that
the context has changed and even though you’re using
the same search you probably are seeing somebody choking in
front of you and actually what you’re looking for is
instructions on how to deliver the Heimlich maneuver not
information about the doctor. Environmental context
is really interesting, cuz what this is is about
how do we understand when the environment
around you changes? How does that change
what’s relevant to you? The best example I
have of this is coffee. I love going to Starbucks. Starbucks is my favorite coffee
brand, but typically I’m only willing to go a little bit
further to go to Starbucks, than I would to another coffee chain,
maybe Costa or Caffe Nero. Now if the environment changes,
I’m more likely to want to get closer to the closest
coffee shop, rather than my
favorite coffee shop. So if it’s sunny, so I’ve got
sunny day Tuesday, Wednesday, Thursday, Friday, I’ll happily
go to a Starbucks, in fact I’ll walk an extra 100 yards down
the road to go to Starbucks. However if it’s raining, than
what I want now when I ask for coffee is the closest coffee
shop even if that’s not my favorite anymore. Social context is something
that I think we all intuitively understand. Any of you who have ever been
in a relationship will know that you are a very different
person when you’re with your significant other than when
you’re with colleagues, than when you’re with
friends and family. For me, for my wife and I, we
have a real issue with Netflix. Because Netflix is terrible at
trying to make recommendations or trying to understand the
differences between our viewing habits. We have one Netflix account and it’s always showing
us the same thing, all of the stuff that we have
from some shared history rather than stuff that is relevant for
me or relevant for my wife. With social contacts, with
the ability to be able to know, who’s in the room
at any one time or who’s actually watching TV, versus just sitting on the sofa
browsing through social media. We have the ability now
to be able to say James, you’re watching TV, why don’t you watch the next
episode of Game of Thrones? Nita, you’re watching
TV with James, why don’t you watch something
you both like, like Bake Off? Nita, you’re watching
TV by yourself, you can watch
Desperate Housewives or some of the crap that
she likes watching.>>[LAUGH]
>>And the final one is
External Context, this is really hard to be able
to characterize cuz it’s all of those other things that can
make the difference and be changing your perspective
on what’s relevant. And so the only way that I can
really think about this is, like when we’re going
through a change for something like Brexit. The global context of what
that means is gonna change the information that we need
in a given environment. And the people who really
understand this are Disney. Disney are amazing at
external context because what they do is they change
the story that they deliver by a small bit to make it
relevant to each individual audience that they
deliver it to. So I thought as
we’re in Barcelona, I would show you two versions
of the same trailer, one in English and
one in Spanish. I wanna show you how they
understand external context. Hopefully the volume works.>>So
how was the first day of school?>>It was fine I guess. I don’t know.>>Do you ever look
at someone and wonder, what is going
on inside their head?>>Did you guys pick up on that? [CROSSTALK]
>>Something’s wrong.>>We’re gonna find out
what’s happening but we’ll need support. Signal the husband.>>Pass over to reed. And then he passes it right.>>She’s looking at us. What did she say?>>Sorry, sir. No one’s listening.>>Is it garbage night?>>We left the toilet seat up? What, what is it woman? What?>>Signal him again
>>So Riley, how was school?>>You’ve got to be kidding me.>>[FOREIGN]>>[FOREIGN]>>[FOREIGN] [FOREIGN]>>Okay, so even if you don’t speak Spanish, hopefully you
can see the joke still works. But the key thing there
is the external context. The first one I showed you was
the Canadian release and so for the Canadians, the biggest sport
that they have is ice hockey. The second one was for
the South American release. In Chile, the don’t do ice
hockey, they do football. And therefore they change
the subtle nuance of the story that they’re
telling in order to make it relevant to the people who
are gonna be watching it. That’s external context. Now if we take these
four together, well think that we’re about to
go into a new era of search where context is
going to be king. Drives ultimately the best
conversions that we have. It’s not gonna be about content. You can have the best
content in the world, but if you don’t have the right
context you’re never gonna get your content in front
of the right people. How are we doing for time now? Two minutes, all right,
I’m gonna really rustle through. All right, so I told you in
the beginning that the future is now, because it’s already here. So one of the things that
I wanted to talk about was emotion. Emotional context we said
was really important. Emotion works brilliantly for
marketers. Because if you can make an
emotional connection with your customers, they’re more
likely to buy from you. And so using emotion in tech is
actually really interesting. It’s one of the things that
we’re playing with is the idea of how can we take live feeds
of people’s faces to try and diagnose what emotion they’re
feeling at any given time. How could we use that as
a potential another signal to be able to understand the emotional
context that they’re in. And just to finally finish off, there’s a brilliant project
that we’re doing with Uber, so I wanted to bring
it back to travel. One of the things that, why you have to put yourself
in the customer’s shoes. Why do people take Uber? Well, they go through different
emotional states initially, when they originally order
an UBER, the thing that’s primarily driving them is
probably convenience and price. But of course the moment
that you actually step into that car your emotional
state changes. Now you know you’re
gonna take a journey and you expect to go somewhere. But the emotional driver
is very, very different. The thing that you’re interested
in, in this case, is trust and safety. So this is a really cool piece
of technology that we’re using, some of that same facial
recognition technology in order to help Uber provide
trust to their customers. [MUSIC]>>We come to work every
day to pilot, test, and launch new
technology solutions. Real-Time ID Check is
the latest technology example where we at Uber
are constantly developing and testing new solutions to
predict, prevent, and reduce security risks in ways
that weren’t possible before. It’s through this partnership
with Microsoft that we’ve been able to develop this technology
quickly and ensure that every rider and every driver has
an excellent experience. Real-Time ID Check is a prompt
that appears in the driver’s app, asking them to
take a self photo. We can do a check in real-
time to make sure that that identity of the person who took
the picture matches the account holder who’s been
approved to drive. Doing that serves
a couple of purposes. Drivers know that
their identities and their accounts are being
protected, and riders know that the driver who
they’re with has been screened.>>Jen?
>>Hi, yeah.>>Hi.
>>Real-Time ID is a smart technology. What that means is it factors
in and addresses the edge cases. The situation where the driver
is wearing glasses or a hat and they weren’t in
the identification that we have on file. The beautiful thing is it can
recognize these changes and ask the driver to remove their
sunglasses or retake the photo. The partnership with Microsoft
Cognitive Services allowed us to go from idea to execution
to implementation across the country in
a matter of months. Already we’ve been able to make
thousands of rides safer, and very soon we’re gonna be making
millions of rides safer through this technology. [MUSIC]>>I hope you’ll agree, that’s a pretty cool piece
of innovation there. But ultimately what it’s about
is unlocking human potential. This is where we see
the future of search evolving. And by the way, that thing
that you just saw there, that’s search. You might not think of it as
search because somebody didn’t go to a laptop and
type something into a box. But it’s search technology. And it’s Bing which is
actually enabling and making that process happen. We firmly believe that these are
some of the things that you’re gonna need to think about in
your business in order to drive you forward. And we definitely wanna be there
as your partner to drive forward with you. Thank you very much.>>[APPLAUSE]
>>Thank you, James. And James will be here also
tonight during a dinner, so there is also time for questions
tonight during a dinner. Thank you very much, James. So it’s a very exciting time
where we’re living in, and especially if
the developments on search, if they go like we show you,
it’s going to be very exciting. And as you’ve understood,
probably, is that search and Bing within Microsoft,
has been a birth place for Microsoft for machine learning
and for artificial intelligence. We needed those capabilities
to process all the huge amount of data that are coming
to us by web indexing, but also to social signals. In that case we needed those
capabilities to understand the user intent when
they’re typing a keyword into a search box. So now that we have developed
that muscle of search, it’s time to bring those
cognitive competences and cognitive services back
to the bigger Microsoft. But also to you,
to our partners and our customers in
the form of the API. Our next speaker knows
everything about that, because I’m going to announce you
Esther, Ester De Nicolas Benito. She is our next speaker. And she’s actually a Chief
Evangelist within Microsoft. And Ester actually has a degree
in telecommunication engineering and she specialized in
microelectronics and robotics even. She has some sweet spots which
is all in that same area, and she knows everything about
all the new technology, which you can apply also
to your own business so we can bring our
learnings to you. So it’s my great pleasure
to announce to you Ester De Nicolas Benito.>>[APPLAUSE]
>>Thank you, hi everyone. So I’m the geek one here, [LAUGH] so I’m going to speak
about artificial intelligence. And I know what some of
you might be thinking, this is kind of the digital
transformation thing, right. So every technical
event I’m going to, they’re going to speak about
artificial intelligence. Well the bad news is that,
yeah, we are doing this. [LAUGH] So you’re going to listen about
artificial intelligence for all the technical events you will
be going in the upcoming months, but there’s a good reason for
that. Another thing you might be
thinking about is that why are we now speaking so much
about artificial intelligence? By all means this is
not something new. Do you remember when Garry
Kasparov was beaten by Deep Blue playing chess? You remember that? It was 20 years ago. I looked it up yesterday
on Bing, 20 years ago. It’s been a long time, so why are we now so hyped about
artificial intelligence? What’s the news in this? So actually what we are seeing
now is the perfect timing for artificial intelligence
to become useful for all of you, for all of us. For all the people that are
building things on top of what used to be, let’s say, dedicated
to academic research or for very big companies with a
lot of technological investment. We have three motions that are
making artificial intelligence available for everyone. So the first thing is that we
have to load up information. Everyone has lot of
information in the business. You have the information about
your customer’s intention with the search
onto your web page. You’ve got information
on the social media. You have information,
I don’t know, from variables, from databases, from everything. James talked about that before. So now we have the information
for artificial intelligence, but we also need other things. We need a very powerful
supercomputer to take advantage of that information. And never before in human
history we have had access to these amazing amount
of computing power before. So that’s why now
it’s really easy to go into artificial intelligence
because we are democratizing it. It’s becoming something that
everyone can do with just two lines of code in whatever
application you’re designing. And this is something
that’s huge. And that’s why everyone
is speaking so much about artificial
intelligence. And the third thing
is that you need algorithms to make
everything work. And this used to be a big
blocker because not all of us have mathematicians working for
us. But now these algorithms
are publicly available. The rise of open source is
allowing everyone to have access to this kind of information,
to this kind of knowledge, of mathematical knowledge,
that can allow you to create these kinds of
experiences for your customers. So this is why now it’s possible to bring artificial
intelligence to everything that you might be thinking
about doing in the future. And that is a big
business in fact. So this has some numbers from
IDC that I wanted to show you, not because I mean pretty
much you might be thinking, well that’s business for
Microsoft, right? Yes, it is. But think about the investments that people are doing
in this technology. It is real, it is growing. I mean it’s going to grow
even more exponentially. Because the technology
is really powerful and people are realizing all the
things they can do with that. And there are some verticals
where this is being huge. Like banking, for example,
for fraud prevention. Or healthcare for disease
detection and prevention. Or for example, manufacturing
with Internet of Things. You might have heard
about Internet of Things, right, it’s huge. I mean, manufacturing is really
driving a lot of efficiencies. So all of this combined
are driving more than 18 billion dollar
revenues in 2020. So that’s a huge amount of money
that people are investing in this kind of cognitive
application that James was mentioning before. But when we talk about
artificial intelligence, there are a lot of
misconceptions. What are we really talking about when we’re talking about
artificial intelligence? There are two concepts behind
artificial intelligence. One is to artificial
intelligence, which means machines that
can think like humans. That would be like Terminator,
for example. To be a little less dramatic,
it could be something like Her, have you seen the movie Her? It is a digital assistant that learns a lot about the world
where she is unleashed. This is, we are far from there. So we are really far from
creating an artificial intelligence that can really
learn itself new tricks, right. So going back to the first
example I was giving you, the Deep Blue example
with Garry Kasparov. Deep Blue might be able to win
Garry Kasparov playing chess, but put a tic-tac-toe
in front of them. It doesn’t have an idea
of where even to start. Even if you explain it through
voice, it cannot learn it. So this is a big differentiation
between human beings and artificial intelligence. But there is the other concept
of artificial intelligence which is, Narrow AI. I’m going to stop saying
artificial intelligence cuz it’s kind of long. I’m going to go for AI. So if we look at narrow AI, this
is where the singularity point is with calling there, right? So, machines are better than us
in narrow actions, such as, for example voice recognition. They have a less error rate, as James mentioned,
than humans translator. On vision recognition,
they’re better than us as well. So imagine there are sometimes
a lot of conversations about the connected vehicles. Cars, intelligent cars, AI’s are
better detecting, for example, a child going quickly
on the street. They detect that faster and more, let’s say more
accurately than us. So machines are becoming
better than us, narrow as places
of intelligence. So the dimensions on
where AI is really growing more powerful every
day is vision recognition, so the ability like
the caption board. The ability to see a picture and understand what’s
going on there. The speech recognition. The ability to hear something
and turn it into text or translate it, or do whatever
it needs to do with that. Then the language understanding, which is different to
speech recognition. A machine could adjust
transcripts, whatever you think, but wouldn’t understand a word,
just translate it, right? But the language understanding
is a major breakthrough that we’ve recently have. And this is what’s enabling
us to build bots and build these assistants. Because as a developer,
if you think about the amount of different phrases, sentences you
could use to ask for a flight. You could say,
I want a flight to New York. I’m looking for
a trip to New York. I don’t know,
there are thousands of them. So imagine as a developer
that you would have to program every single possibility
to build your application. That would be impossible, right? So now AI can understand the
intent behind the language, so that you don’t need
to program all that. And this is a major breakthrough
to make all these visions a reality. And last but not least, is
the ability to link knowledge. To understand a text or
a conversation, and to link that to other signals across
whatever it is you’re doing. For example, it could link
a conversation you’re having with someone to your
calendar in Office 365 or whatever older
technology you’re using. And it could remind you of
something you told someone you would send. For example, I’m telling you
I’m going to drop you an email tomorrow to discuss whatever. My digital assistant
could say tomorrow, hey, you told him you were going
to send an email, so just do it. And this is connecting different AI to bring knowledge
to the table. So this is how computers are now
understanding the world and they’re doing that
really better than us. So this is where the AI business
is exploding right now. So, what do we mean when we
say we are democratizing AI? What do we mean when we say, this is going to be
available for everyone? So basically,
we’re talking about four things. At least from my perspective, we are talking about
four dimensions of AI. The first one is agents, and we
have discussed this a lot, and we will talk about this again. The second one is applications? And I’m not going to go into
details, but I just want you to know that everything I will
be telling you in this presentation, we are building
it into our own applications. So whether it is Office,
Windows, all the Microsoft applications
you will know, they are all being infused with this kind
of AI cognitive services. Then we have the services
that allow you to take all this power
that Bing has, all this knowledge that
Bing has on the world. And build your own applications
on top of that with just a pair of lines of code. And it not only allows you to
do that, with the knowledge that Bing has, but it also allows
you to personalize that for your specific needs. For example, if we go back
to the caption box James was showing, it is great that we can
see that there are a couple with the sword going to a cake and
so on. But if I was selling wedding
dresses, I would like the AI to tell the person, okay, so this
wedding dress is for Pronovias, from collection 2014, and
you can buy that from my store. For example, there’s no way Bing
on its own can know all that for all the possible businesses
that are across the world. So the power on AI and the
beauty on those services is that you can personalize them and
train them for your specific business needs,
and this is really powerful. And that’s what will enable
you to bring this amazing experiences for your customers. Unless it’s infrastructure, and I’m not gonna go into this
because it’s super geeky. But if any of you are interested
on understanding from an infrastructure perspective,
why we claim to have the most powerful AI super
computer in the world? Then by all means,
just ask me, and I will be happy to explain and
go into a lot of detail on that. So the first thing is agents. And we’ve spoken a lot
about Cortana, and how this is going to grow or
not grow. We have had a little
bit of debate there. So I just wanted to tell
you some interesting facts about some AIs that we
are launching across the world. So I’m not sure if you’ve
heard about Xiaoice? Does that ring a bell for
any of you? No? So one of the things we’re doing
with the digital assistance is to try to make
them more empathetic, is it how it’s said in English. Empathetic or empathic? Empathetic? Empathetic, thanks. With the British accent,
empathetic. Okay, so we’re trying to make
Cortana more empathetic. And for
that we need to train it, so we need to create this
kind of experiences where people can discuss
their feelings with an AI. We did that, that series,
and we did that in China. And we created an AI that
doesn’t do anything but listen to people and
just learn from that feelings. And interestingly enough, 14 million people in China
use Xiaoice everyday. We have had lots of love
declarations to Xiaoice. And we have tried to
detect sarcasm in that and no, they were true. So people are getting more and
more used to speaking with AIs. That’s happening in China, but in Japan we’ve run a similar
experiment that’s called Rinna. And 20% of Japanese
population is using Rinna at least once per week. Just to talk about the things. So people are increasingly
more comfortable speaking with assistants or
with AIs. So that means that this vision
where people will replace applications for bots and
web browsers for a digital assistant is
really going to happen. So it’s more a question of when,
than if, if it’s going to happen
because it will. So if we speak about Cortana, it has 133 million of users
worldwide which is huge. But if we add that to,
as they mention, Siri and Alexa which also
are built on Bing. That’s an incredible amount of
knowledge that we are creating. And what we’re trying to do, is to make this available across
any device, so that Cortana doesn’t really need to live in
your mobile or in your laptop. It can live in
your refrigerator, it can live in your car. So if you’re planning to
to create this kind of digital assistance,
you might rely on Cortana or you might create your own
digital assistant and build it on Bing, just like Alexia,
or Amazon did with Alexa. So I’m going to show you
a little video of what BMW is doing with us. To create their own detail
assistant, which builds in Cortona, which connects you
to your business reality. [MUSIC]
>>Good morning David. Your first meeting today will
be at 9:30 downtown with Mr. Bernagan. Would you like to choose
your driving options? Decker Canyon with the i8 will
be a joyride this morning.>>Yes, thanks for
the suggestion. [MUSIC]>>Be careful, David.
There’s a rock slide ahead. [MUSIC]>>Call Caroline.>>Hello David, how are you?>>Hi Caroline, fine thank you.>>I sent you an email with
the two possible headline press pictures. Is it possible for you to take
a look at them right now?>>I’ll look at them when
I arrive at the office. We should go for lunch when
I’m back in Munich next week. I see Thursday could work. It does. Looking forward to it.>>There’s traffic ahead. To keep your estimated arrival
time, I suggest leaving the highway at exit five for
an alternative route downtown. [MUSIC]>>Great, so this video shows
different dimensions of what we were speaking before. It shows holograms, how we are integrated holograms
with the driving experience. And it also shows this
integration with a digital assistant which connects
to Cortana, for example, to find an available slot for
a meeting. So this is the kind of
connected experiences, that we are talking about
when we talk about AI. So I’m going to show you a real
bot that actually in production being used the Hipmunk Bot I
hope you hear me can you hear me great so I’m going to open my Skype at home move it
a little bit here so I can see. So this is my real
Skype account. Is a contact that I have in
my account, which is great because I don’t have to download
anything to read the service. It’s just another contact that
I have, just like my mom or my husband or my friends. Like I’m going to travel. Let me see. I just say, hi Hipmunk,
for example. I could say Hello, whatever,
this is the language understanding services I
was speaking about before. Right, so
the fact that it understands me, no matter how I say the things. Even if I mistype,
it will understand me. So, depending on our
internet connection, we should receive an answer,
hopefully. This is a demo [LAUGH] okay, for some reason it appears that
[INAUDIBLE] demonstrations. So for some reason, although we
are connected to the internet, or so it seems, and
I swear it was working before. No, it is connected. Yep. Okay, let’s just give it
a little while to see if it’s a problem with the Skype. If not,
I can show it to you later. But what I wanted to show you
and if I can do it showing you a previous conversations
I was having with Hitman. Precisely trying to
prepare this demo. And sorry about that. But I really cannot even go up. No I cannot scroll. No it’s because what,
doesn’t matter. But if you see here, I’m not
going to waste more time here. But if you see here, the things
that I can speak with Hitman. And before, I just told him,
I’m planning to go to the Louvre to see Some of then my favorite
pictures, and he said okay so you’re looking to flights
from Barcelona to Paris. So he detected no
only where I was, but also what was my intention
after my, with my actuaries and it show me some
interesting flights. It’s look up with information
I’ve provided and found the flights okay, found the flights that
I was interested in. So then it showed me
different options. And it is so many different
options into my contacts. So as you see, it showed me
options where I can just browse through them in my Skype
account, and just choose that. And what’s great about this is
that when you build the bot, not only you are more
easily discoverable but you also can convert this
in a Cortana skill meaning that when someone speaks to
Cortana you, Cortana can connect to that bot provided the
service, so it doesn’t matter if your not even using Skype,
Cortana could do that for you. As important as three years
ago it was to have your own application. Right? So this is really being huge and
now we are currently speaking about how can
convert this bot into skills. But imagine what we can
convert this kind of bot into skills for whatever digital
systems you might be using. That’s our vision. That’s what we are trying to do. [LAUGH]. Sorry, it woke up. So, for example, if I say, I’m
feeling a little bit depressed, because my demo’s not working. So, for example, I tell you
that I want to go to the beach. For example, I could just say
that in whatever possible meme, and for some reason
internet is going really, really slow, so really we’re
not even going to try anymore. But the thing is that,
You get the power of this. Right? I am not leaving SKYPE for
anything. It’s not only SKYPE. The beauty about the,
okay, see it detected that I am in Barcelona right now
because of my IP address. It is going to show me different
possible bits getaways. If I had told it,
I’m going to go to Mallorca, it will have shown
me only Mallorca. It’s certain.
But this is, like James mentioned,
a new way of doing search, based on my emotion,
based on natural language. And it’s not only Skype,
as I was mentioning. You can create one bot and
connect it. To a lot of different
social media applications. So whether you’re
using Facebook, whether you’re using Click,
Telegram, I don’t now. Just name it. There’s a, okay. So there’s this same of code
that you build just once and make it discoverable for everyone on any social
application they might be using. So this is really powerful and
this is a new way to make your products and
your services discoverable. And well, break that thing to
work thanks but, so moving back, So as you can see, this is
really going to change how people look for
different products and services. Because it is happening,
people are feeling more and more comfortable
speaking with machines. So the next thing that I
want to talk to you about is the services that we allowed you
to build these kind of things. Because a boat can provide
you with this kind of trouble information, but
it can also detect a picture. Like for example, I could just
upload a picture of a very beautiful beach that I show on
Instagram, for example, and say hey, recommend me something
like that, but on this budget. And it can look and find similar
beaches across the world and find something that is
closer to me and cheaper. And this is something
that we can do with this kind of service. We can mix and create the
applications that we want to do. So let stop a little bit and
tell you about the three layers of artificial
intelligence, okay? So the first layer, the most, the deepest layer is
what we call deep learning. Maybe you’ve heard about
the concept of deep learning. Deep learning is basically
recreating how neurons works inside the brain, to allow the
computer to learn new things. So this is basically when you’re
planning to do something that’s very specific. For example, you’re
planning to build a medical AI application that goes through
a very specific disease. Of course, you’re not going to find out of
the box solutions for that, so you build your own neuron
network, to have that solution. Pretty much like what IBM
did with chess for DeepBlue. Then the second layer of
that is machine learning. So you abstruct yourself
from that first layer and you just create an algorithm,
create a model, and just train it to be
more effective, okay? So this is basically
what we could be doing, training an algorithm to be more
effective classifying whatever, right? So, finding jokes for example, whatever thing that
you might be thinking about. And then there’s the top layer, the most absurd one,
which is the cognitive services. This ability to just
use the power of think Instead of having to
program it yourself. This saves you years
of development. So it’s not, I mean the fact
that we are offering that to everyone for a really
really cheap price is great. You are getting into years
of RnD from Microsoft to build your own applications. And what’s really interesting
is that we have created a system that gives you this
level of abstraction, but also gives you
the ability to train it. So it’s kind of in
the middle of layer two and layer three, right? Sorry about being a little
bit too technical, but this is important for
you to understand it. Because it’s what we’ll make you able to build
specific solutions. So, with this cognitive
services we can do pretty much everything you can think about. We can detect emotions, so for
example, if I’m looking at an advertising, you could detect
how I’m feeling looking at that. You could detect my age,
my gender, you could see if I’m getting
interested on that ad. You could create a lot of
intelligent experiences on that. You can create, as I told you,
language understanding services. You can create
vision recognition. You can create, just,
whatever you think about. You can mix and match all these
cognitive services and build a super AI capable of doing
a lot of incredible things. I’m going to tell
you one example. We saw some examples before,
right? Like Uber, Uber is a great
example of vision recognition. How you can use vision
recognition to solve the need for security. And we were before, Simon was telling us about
the AirBnB problem, right? The burglars that AirBnb
customers were doing. This could be solved
the same way we solved Uber’s security issue,
with face recognition, so there’s a lot of potential
opportunities here. But a very specific case that I
want to tell you is McDonald’s. Because what we did
with McDonald’s is use speech recognition to automatize the process of ordering
taking on the drive through. There are little environments
one use think about as speech recognition, less
friendly than a drive through. Really, there’s a lot of noise, the sampling of
the sound is awful. We’re talking about four
kilohertz, it’s really awful, worse than a phone conversation,
really, really awful. So of course, out of the box
a cognitive service cannot understand what a Big Mac is,
and the different options that
it can have with a menu. And by any means, it can’t
understand it when you’re in a car talking to
the drive-through, right? So we trained the system. We built this AI system, and
we trained it specifically for McDonald’s, and I’m going
to show you how it works.>>Good afternoon, welcome to McDonald’s,
can I take your order?>>Yeah, I would like two happy
meals, one cheeseburger and one chicken McNugget. Both with fries and apple,
one with chocolate milk, and one with orange juice. Also, give me two cheeseburgers,
one with no onion, and one of those with no ketchup
as well, one fry, and a large coffee,
two creams, three sugars.>>Would you like
that fry to be large?>>Yest, thank you.>>Would you like barbeque
sauce with those nuggets?>>No, sweet and sour.>>Is the order on
your screen correct?>>Yes.>>Okay, your total is $14.68, please pull around
to the first window.>>Okay, so you see? It is difficult
to understand it, even if you’re listening
careful to that. But the machine is not only
able to transcribe the exact conversation that
the customer was having, but also turn it automatically
into an order for the system. So that the girl on the other
side of the line is just focusing on creating
a good experience for the customer and
cooking the meal. So instead of just being
concentrated on understanding and taking the orders,
she can do other things. And this is just an example
of what we can do with this kind of,
to enable cognitive services. And, some of the things that AI will enable to do,
I have tried to, let’s say, focus on
the travel vertical, but there are a lot of other things
that AI will allow us to do. So, for example,
intelligent healthcare. This is great because Simon was
speaking about SIKA in Miami. And this is one of the things
that we are working on with AI at Microsoft. So the picture that
you see there, You see that strange
weird black thing? That’s an intelligent
mosquito trap. So what we’re doing with this
intelligent mosquito trap is to find mosquitoes with some
specific diseases like Zika or dengue or
these kind of pandemic diseases. So we detect intelligently
which kind of back the seats on the truck. So there’s a drone flying
with this truck and different back seats
on the truck and we detect first if it’s
a mosquito or it’s not. That’s through the visual
recognition, okay. So we use the visual AI and say, okay this is a mosquito,
this is not. And then we say, okay, but If it’s a mosquito, what
kind of mosquito it is because not all the mosquitoes
carry the same diseases. So this is a trivial question. So if you’re ever
playing Trivial and this question arises,
just please remember me. [LAUGH] So the difference
between the different kinds of mosquitoes is the frequency of
how they move their wings, okay. This is a very
interesting thing. So what we do is detect
that frequency with AI and then trap only the specific
mosquitoes that can carry a specific disease. Then we extract blood from that
and we put it to a machine learning system that will tell
you if the mosquito is carrying a disease and what was the last
animal it fed from, right. So that gives us information
if there’s a disease in the rural outskirts
of a specific city and also if there are other
animals being infected. Because when a single
human is infected, the pandemic is too late. So what we’re trying to do is
to prevent this from happening. And the same way
we’re doing this, we’re doing that with a lot
of different diseases. AI is allowing doctors across
the world to be more precise, for example medicating
by patients. But a lot of different diseases
that don’t have a specific medication, right, so
it depends on the patient. So you, let’s say you told the
patient to use some drugs, and then you by trial and error you correct the doses that
you are giving the patient. That has lot of human cost for
the patient of it’s. What we are doing now
is to simulate model, how the biological components of
the body works in an AI system so that you infuse
a specific drug and you get the output on
how it’s going to work. So that’s helping doctors be much more precise on the way
they are helping their patients. And this is just only the
beginning of what we are doing with AI on healthcare. This is all real life things
that we are working on. On transportation we spoke
about connected vehicles, but think about all of the
possibilities that it brings us. It’s not only self driving cars,
it’s also, for example, if Cortana detects that
I’m going to have a call in half an hour and I’m going to take
45 minutes to get to the office. It might not get me
through the fastest route because I’m not going
to get in time, it might choose the route
with better connectivity so that I can connect to the call
from the car for example. So by connecting this
kind of different signals it can really help me do
what I really want to do, so this is kind again how we
are connecting the dots. And in smart agriculture,
this is also huge. The last thing I read
about that, is that with the population increase that
we’re having in the world, we should double our
agriculture production by year 2030 to make sure that we will
be able to feed the human race. This is huge, this is a real
challenge for all of us. So the only way that we are
going to be able to do this is with AI, is with this kind of
technologies with internet of things, understanding how
everything on a farm works. And providing this technology
to not only farms in United States or Japan or
developed countries but also in areas where they don’t
have internet connectivity, where they don’t have computers. So we need to really make this
accessible for everyone if we want to really work and that’s
everything I wanted to tell you. I’m going to leave you with
a video that we created five years ago. And it’s interesting because
five years ago it was super futuristic, right. It was like science fiction and you will see that although
interfaces might be different the core technology in
this video already exist. So when we’re saying how we
think about the future of agents and so on,
really we are hitting the spot if you look at this video,
so let’s look at that.>>[FOREIGN] Welcome
to Johannesburg international airport. Please approach the road
to create your pickup zone. [MUSIC]>>Okay, so that’s it. As you can see, although
the interfaces are different, all the technology is there. So that’s it from our side. Do we have time for questions? Okay.>>You’re here for dinner, right? Or for drinks afterwords.>>I we’ll be here a little
while, not for dinner, but a little while, and we’ll.>>For questions.
>>Yeah.>>Thanks so much [INAUDIBLE]. Thanks very much.>>[APPLAUSE]>>So before we close and wrap up, I wanted to first
thank everyone in the audience. And every speaker for their
thought provoking inspiring conversations, and
interventions. I want everyone to leave with
three main takeaways today. So as we all agree that travel
as an industry is in a major transformation coming from new
offerings, customer behavior, obviously the flood of
new technologies and new ways of leveraging
those technologies. In any transformation everybody
needs to be surrounded with good partners. And at Microsoft,
we feel that we have all technology that can help you
achieve far future goals. We also have the Bing audience, have you seen earlier on that it
keep growing, so again, helping you to support your future
goals and future aspirations. And most of all as well your
local account teams and the people who’ve also made
the trick to be with you today, we’re here to also
help you create those intelligent creations
to achieve more. So let me now pass on
to [INAUDIBLE] for the rest of the agenda.>>Thank you Alex. Yes, and not unimportant. Some of you didn’t check in yet
in the hotel. So there will be taxis,
like I said from the beginning, will be taxis as from 6:30
until 7:45 to the hotel, so you can freshen up or check in. Those who already checked in or
don’t wanna go to the hotel, you can stay here if you like,
because there’s also going taxis from here directly
to the dinner venue. So and where is the dinner? Because we didn’t
reveal that yet. Well, we wanted to also end the
day in style before, of course, we go to the next speaker. But this evening we will end
the day [INAUDIBLE] and we have reserved for a majestic dinner
tonight at Xalet de Montjuic which is another historical
place here in Barcelona. Some really great events,
and the facilities of this restaurant have hosted some
great events like the universal exhibition of 1929 even, but
also the Olympic Games of 1992. They’ve hosted some of
the activities around that. [INAUDIBLE] Because
it’s very high, you will literally have
Barcelona at your feet. Before we go to
the next speaker, which will be announced by Alex. After that speaker you
have the opportunity to try on the HoloLens. And because we had
a pretty big group and we don’t want people to fight
over HoloLens, of course. You have on your badge
a group number that’s group one or group two. So group one, they will start
with a tour, with a private tour here, around a brewery,
which is very interesting. Group two will start
with the HoloLens with trying on the HoloLens. After 30 minutes,
we will switch, so that group one will
do the HoloLens and group two will see a little
bit about the brewery. If you have any
questions on that, you can either ask Alex or Me. But there’s even people that
know a lot better than us. That’s Andrea,
Bertram, and Barbara. They’re over there. They have been live
streaming with their phone this entire event. Side by turn by turns. And also I want to take
the opportunity to give a big applause for this team who
made this event for us here.>>[APPLAUSE]
>>Thank you very much.>>[APPLAUSE]
>>Up to Alex to announce our last speaker because that’s
not in this room but in the room next to us.>>So there was a very
futuristic video. Now let’s go to the future but kind of reality as well
with Andrea Benedetti. He had some technical
evangelism from Italy. And we’re very excited because
we managed to get him here and have two HoloLens for
you to trial as well in there. As you’ll see it’s very
exciting, futuristic, and still very in
the moment in here. So I invite you,
I think group two, to move to the other room to
trial for the next 30 minutes.>>Everybody can go there for
the presentation and after that, we will divide
ourselves in groups. So everybody is requested to
go into the other room for the final presentation of today.>>Thank you.
>>Thank you very much.>>Good afternoon, welcome
everybody also from my site. This is the last
session of today. Maybe interesting session. I have a couple of slides. I’m not sure how high
number of slides, it’s a little strange for Microsoft I
have just a few slides. In the last video from Esther,
you have seen a couple of holographics, hologram,
hologrpahics work. This is not the future,
this is the present and the idea of today is to
present to you the HoloLens. I am Andrea, I work for Microsoft Italy as a technical
evangelist director. So my work is just to talk and
speech about technology, featured scenario and so on. Today, I present to you the
first holographics computer in the world,
the Microsoft HoloLens. Just before to present the
device, I want to introduce or resume the three different
types of reality that we have. Maybe you know
the virtual reality, or maybe you already tried
the virtual reality. So for example,
when you put on your headset and walk on the summit of Himalaya
when you stay in your office, so the big idea of the virtual
reality is to have another environment totally completely
different that you have. The first theme of virtual
reality is that you don’t know nothing about your
real environment. But your eyes and your body and
your mind receive input totally different
because you are seeing. There is a problem for virtual
reality is the motion sickness. Where your brain receives
different inputs from your eyes and your ears. You start to go in shut down
mode an assault of blue screen and starting to have
physical problem. This is the reason why virtual
reality at the moment don’t have a very huge, very important utilization
around the world. [INAUDIBLE] The side
[INAUDIBLE] it’s more or less the simple reality. Because you can put some virtual
layer on the physical word. For example you can use your
phone, you can see a street and your receiver on your phone
is only for information like, this is a beautiful restaurant,
if you walk away for 2,000 meters to the left you can find
another restaurant and so on. You can have just simple
virtual information on your physical layer but the important
thing is that the virtual information don’t know nothing
about your physical word. Maybe you know
the game Pokemon Go. The Pokemon Go is a fantastic
example of augmented reality. You can put here Pokemon. You can bring it. But if you have
a hole on your floor. Your Pokemon don’t know that and
stay here in the area. Mixed reality is the totally
different world. For the first time you can
receive input from your physical world and work on that with
create some virtual layer and holographic things. HoloLens is the first
holographic computer that you can use to understand, in real
time, the real environment and interact with them just to
put inside holographics and virtual layer. With an natural way to interact
through gesture and voice you can command your auto lens
with your hands or your voice. With technology totally
built from Microsoft and you can create hologram just
to announce the real world. This is the device, I have
a couple of devices today. And the first thing that they
want to present to you is. This is a computer,
this is a Windows 10 computer, the same Windows 10 that
you have on your laptop. On your phone. On your Xbox is the same. Just created for
all the graphics computer. Inside of the device you
have all the same software, all the powers supply, all
the battery, all the CPU and so on to have a computer. You don’t need nothing,
cable or other things. Today, I have another laptop, is here,
just to share what I can see, so you can see on the screen
what I do with my device. But if I turn off my laptop, you can continue to use the
HoloLens without any problem. So this is a complete PC. Inside it’s a really
interesting technology. Maybe you know Kinect, the technology that’s coming
from from Xbox for gaming. Inside of the device you
have four different camera that are connect sensor. So the camera are able to
understand your gesture and to understand the objects that
there are on the physical environment. There is HDMI camera and
a infrared camera. Four different microphones
just to understand and listen the environment
around us. Just to be honest today is a
little bit complicated the demo because we have a strange light,
a projector, and a couple of camera but
I am really optimistic. In front of your eyes you
have a transparent lens, this is another totally
difference between HoloLens and all other device that come from
other, for example, competitor. When you have transparent lens, you can see your
physical environment. So you don’t have any physical
problem, because you stay in your physical world, and just
receive other virtual layer, thanks to autographics engine. So the projector puts on your
transplant lens the holograms, so you can interact with virtual
world on your physical world. The HPU, maybe you know the term
CPU, is for [INAUDIBLE]. HPU, holographic processor unit, a couple of processor unit that
you have inside of HoloLens, and this is the engine that receive
in real time a tonne of data from all the sensor, just
to understand environment and create their holographics for
your highs, for your experience. The HPUR from Microsoft, [INAUDIBLE] we took
year of expedience and test created this kind
of processors and put inside of HoloLens
this kind of engine. The last thing that’s not so
many important is about sound. Maybe you know the stereo sound? But in a world like that,
the left and right are totally surpassed it. Because if you receive a sound,
I need to move the sounds for
my from the source from myself. So it is not the stereo idea but special sound is
the idea that you receive from this red piece
of the device. The sound where you move in
the physical environment. So I switch from my application just to use this tool. So you can see, amazing. You can see what I do. I turn off my device, okay. Okay. Just a moment, okay. Okay, so I need to move
myself really slow, so you can see on
the screen what I do. I have put my head in my device. The first thing is
to use my hands just to understand
the physical environment. So if I do this kind of gesture, I ask to my device to
visualize a sort of polygons, to understand the physical word. In reality,
this kind of operation is ready, also if I don’t ask to my device to understand
the physical environment. This kind of gesture just to present to you this
kind of [INAUDIBLE]. The second gesture is that. So I can ask to my device
my Windows 10 menu and I want to move my comments just to show my first
application for you. I start my application and
I put on the wall. Okay, the idea.>>Try again in a little bit.>>Okay,
the idea is to present to you. Something special from hearts. So I talked with major of
Florence, you know I’m Italian. To bring us the David
of Michelangelo. It’s a little bit
difficult to get for us the real statue, so
the measure saying to us, and autographic version of
the David of Michelangelo. As you can see,
it’s not the real statue, because for attention,
it’s inside of that. If you can see, there is
a piece inside of the chair Because understood that
there is a physical layer. So this is a piece on that. This is an example of
David of Michelangelo that you can see in Florence. And in reality,
you can see something special. Because if you look
here on the statue, you can see a detail that you
can’t see in Florence, why? Because the statue,
in reality, is 5 meter and 70 centimeters, so it’s not
the real size, right now. But you can interact, for example, with your
voice in this way. Make bigger. Make bigger. My English. Make bigger. No. Make bigger. Effect demo, okay. When you interact, for example,
with a statue, you can move in the original sides, so five
meter long, in front of you. The idea is to put move
on in front of you. An example of arts and
culture, for example, from around the world. To create these holograms
we have done a laser scan. In florence of the statute to
create it, a vertoile model, just to have the statute
in front of you. And you can have all kind
of details of the statute. Okay, in front of you. This is just our first example,
just one example, but I want to present to you
just another application. Okay, for example,
you can walk inside of a city just to stay
here in Barcelona. For example, you know Seattle,
the city of our headquarters and you can put on your floor for
example here, I place a hologram on the floor just to
see the Seattle city. This is Seattle and
I have a lot of details. I can interact. For example, in this way
just to have zoom in or zoom out just to see our city
and this is the library, the national library
downtown Seattle. Or for example, if you have an
internet connection that don’t have today, you can ask for
example, Rome or Madrid, or other country just to
create a virtual tour. Just to, before that you
go in a physical way. The interesting thing at the
city, coming just from being. So there is not a software or
program, or otherwise. Yeah, you just ask a city and receive a map that
comes from Bings. We have a lot of
demo in scenario. We have an hour. Me and you,
if you want just to try that. I just want to talk
about three different real scenarios,
really interesting for me. The first is about the International
Space Station around the world. Inside of the station, we have
two devices, two HoloLens, so the astronauts receive from
Cape Canaveral the programs. The programs can be put
inside of the HoloLens and the astronauts can try
inside of the station the activities that
they do outside. For example, tomorrow, we need to take something
on the Hubbell Telescope. You can try inside
a weakened shell the same hologram with
a different device. The second story is about Volvo. If you want to buy a Volvo,
you can. Okay, you can buy it here
in Barcelona, but it’s more interesting if you take a plane
in Barcelona and go in Sweden. If you enter inside
of showroom in Volvo you can’t find any physical car,
no car inside. Well you can have
just the autolens. You put your autolens
on your head. You can interact. With the HoloLens
with your voice. I want model V 90,
either nor blue or green with [INAUDIBLE],
or I change my sport, or accessories and so on. And why not? I can call my wife in Milan. And say something like, okay, put your HoloLens on your head
and look at the same car. Okay, the first story
is about Rolls Royce. Rolls Royce made
beautiful cars and also beautiful engines for
airplanes. Just five months ago, for study and information
from the engineer team, Reusg have just two options. The first one was to put
the engine from UK to US. In US 15 engineers just
to study the engine or the second option put 15
engineers come to the UK with the engine and
we study the engine. Right now the engine
staying in UK, the engineers stay in the US and
just send from another point of the world just
an email with the programs and the engineers can put the device
on the hats and see the engine, and study, and make activity
just whenever you want. Thank you very much, this is
HoloLens and I stay here for you when you want.>>[APPLAUSE] [MUSIC]

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