Augmented Reality Retail

Augmented Reality Retail In-store Media – Video TV the shared shopping experience Ray Garcia Feb. 09 Center for Future Banking at MIT Media Lab

What is it? Shown by Example

While your shopping

While you sit and wait

At the shelves

At the checkout

Impacting your attention

In different places BANK | HOTEL | COMMUNITY | SCHOOL

The Audience ► No

single medium offers widespread access to consumers. TV, Newspaper, Magazines, Web. (few exceptions like Super Bowl)

► Retail

Environment is the new medium for mass marketing. The place and shopping provides a context and implied intention

Retail in-store advertising ► Traditional

- cardboard displays, print ads, flyers, coupons

► New

– in-store video, amazon like recommendation engines, mini-kiosk on carts and shelves, store navigation, product info, use of mobile for UPC look-up

Growth Potential ► TV,

Newspaper, Magazines at 2% annually

► On-line

growing at 20%

► Reason:

greater targeting, customer interaction, measurability

Trend ► Trending

away from TV advertising to promotional, loyalty programs, wordof-mouth, events, all forms of retail display

►¾

Trillion $ each year for on location promotion and growing 6%. Tops traditional Advertising

Point of Purchase ► Most

purchase decisions are made at the shelf so influences on location are significant

► In-store

video networks can potentially reach more customers than major broadcast networks with higher relevancy and greater recall

► Can

target aisle, shelf, time of day, geography, inventory, individual preferences

► Desire

to drive consumer behaviour

In-store Video Market ► $500

Million a year and will grow rapidly

► Pioneers

 PRN in 6500 stores, partnered with NBC  CBS outernet 10,500 locations  OnSpot Network, partner with Publicis 1,300 screens, Simon Brand Malls  Captivate Network, 8,200 flat screens in elevators

What’s the impact ► Targeting

is key, migration to IPTV and varied content produces 10% higher sales

► Walmart

Stores

Smart Network in 2700

► Store

instrumentation for measurement, can connect to shelves and items purchased

► Behavioral

tracking instead of

Research needed ► How

to identify customers

► Privacy

versus public viewing

► Study

needed for Ad recall and influence

► How

does it complement Broadcast TV and other in-store promotional displays

► Nielsen

PRISM is leading in-store

The Ad market ► Broadcaster

deliver high impact campaigns to large audiences

► Internet

is to fragmented for advertisers to aggregate attention

► Market

may need big network players to aggregate selling of Ad slots

► Google

like Ad Market may develop

In-store Advantages ► One

channel focus

► Frame

of mind of shopper

► Higher

potential relevancy

► Can

To”

provide informational help “How-

► With

mini-kiosk on cart may provide amazon like recommendations

Futures ► Provoking

Shopper social contagion

► In-store

video is the start of placing the infrastructure to instrument the store

► Video

tracking, identification of people and product interest, directed audio, flow and crowd dynamics, out of store continuity

► Multi-channel

and devices.

► Context

marketing across situations

awareness

Innovations in Augmenting Reality Retail ►

Projection  Moving screens, thinking pictures  Multi-screen coordination  Projection on non-uniform objects  3D and Holographic projection

►

Selection  Object, face, and voice recognition  User generated and Dynamic content  Preference configuration  User selectable promotion  Avatar shopping buddy

Challenges ► Programming

model is needed, not just repurposing content from Broadcast TV. The content needs to be situational.

► Interaction

model is needed to study the consumer behavior to shifting retail spaces

► Need

analytics to enhance promotional and targeting campaign

Summary ► Emerging

market with huge potential

► Opportunities

 New business models for Ads/Promotions  Media design challenges  Needs business savvy creative talent  Innovative Technology products  Major Research opportunity

References ►

Strategy+business Issue 53 2008 Major Media in the Shopping Aisle, M. Egol and C. Vollmer

►

http://www.retailcustomerexperience.com

►

http://www.digitalsignagetoday.com

►

http://www.cisco.com/web/strategy/docs/retail/In_store_Media_BR.pdf

►

http://www.prn.com/homeelectronicsnetwork.html?prev=nav2

Contact Ray Garcia Executive in Residence Center for Future Banking at MIT [email protected]