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

► Retail

Retail in-store advertising
► Traditional ► New

- cardboard displays, print ads, flyers, coupons – 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 growing at 20% greater targeting, customer interaction, measurability

► On-line

► Reason:

Trend
► Trending

away from TV advertising to promotional, loyalty programs, wordof-mouth, events, all forms of retail display Trillion $ each year for on location promotion and growing 6%. Tops traditional Advertising

►¾

Point of Purchase
► Most

purchase decisions are made at the shelf so influences on location are significant video networks can potentially reach more customers than major broadcast networks with higher relevancy and greater recall target aisle, shelf, time of day, geography, inventory, individual preferences to drive consumer behaviour

► In-store

► Can

► Desire

In-store Video Market
► $500

Million a year and will grow rapidly
 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

► Pioneers

What’s the impact
► Targeting

is key, migration to IPTV and varied content produces 10% higher sales Stores Smart Network in 2700

► Walmart ► Store

instrumentation for measurement, can connect to shelves and items purchased tracking instead of

► Behavioral

Research needed
► How

to identify customers versus public viewing

► Privacy ► Study ► How

needed for Ad recall and influence does it complement Broadcast TV and other in-store promotional displays PRISM is leading in-store

► Nielsen

The Ad market
► Broadcaster ► Internet ► Market

deliver high impact campaigns to large audiences is to fragmented for advertisers to aggregate attention may need big network players to aggregate selling of Ad slots like Ad Market may develop

► Google

In-store Advantages
► One

channel focus of mind of shopper potential relevancy

► Frame ► Higher ► Can

To”

provide informational help “How-

► With

mini-kiosk on cart may provide amazon like recommendations

Futures
► Provoking ► In-store ► Video

Shopper social contagion

video is the start of placing the infrastructure to instrument the store tracking, identification of people and product interest, directed audio, flow and crowd dynamics, out of store continuity and devices. marketing across situations

► Multi-channel ► Context

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. model is needed to study the consumer behavior to shifting retail spaces analytics to enhance promotional and targeting campaign

► Interaction

► Need

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 rgarcia@media.mit.edu

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