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Ray Garcia Feb. 09Ray Garcia Feb. 09Center for Future Banking at MIT MediaCenter for Future Banking at MIT MediaLabLab

AugmentedAugmented

Reality RetailReality RetailIn-store Media Video TVIn-store Media Video TV

the shared shoppingthe shared shoppingexperienceexperience

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What is it? Shown byWhat is it? Shown by

ExampleExample

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While your shoppingWhile your shopping

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At the shelvesAt the shelves

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At the checkoutAt the checkout

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In different placesIn different placesBANK | HOTEL | COMMUNITY | SCHOOL

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The AudienceThe Audience

No single medium offers widespreadNo single medium offers widespread

access to consumers. TV, Newspaper,access to consumers. TV, Newspaper,

Magazines, Web. (few exceptions likeMagazines, Web. (few exceptions like

Super Bowl)Super Bowl)

Retail Environment is the new mediumRetail Environment is the new medium

for mass marketing. The place andfor mass marketing. The place andshopping provides a context andshopping provides a context and

implied intentionimplied intention

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Retail in-store advertisingRetail in-store advertising

Traditional - cardboard displays, printTraditional - cardboard displays, print

ads, flyers, couponsads, flyers, coupons

New in-store video, amazon likeNew in-store video, amazon likerecommendation engines, mini-kioskrecommendation engines, mini-kioskon carts and shelves, store navigation,on carts and shelves, store navigation,

product info, use of mobile for UPCproduct info, use of mobile for UPClook-uplook-up

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Growth PotentialGrowth Potential

TV, Newspaper, Magazines at 2%TV, Newspaper, Magazines at 2%

annuallyannually

On-line growing at 20%On-line growing at 20%Reason: greater targeting, customerReason: greater targeting, customer

interaction, measurabilityinteraction, measurability

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TrendTrend

Trending away from TV advertising toTrending away from TV advertising to

promotional, loyalty programs, word-promotional, loyalty programs, word-

of-mouth, events, all forms of retailof-mouth, events, all forms of retail

displaydisplay

Trillion $ each year for on location Trillion $ each year for on location

promotion and growing 6%. Topspromotion and growing 6%. Topstraditional Advertisingtraditional Advertising

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Point of PurchasePoint of Purchase

Most purchase decisions are made at theMost purchase decisions are made at the

shelf so influences on location areshelf so influences on location aresignificantsignificant

In-store video networks can potentiallyIn-store video networks can potentially

reach more customers than major broadcastreach more customers than major broadcastnetworks with higher relevancy and greaternetworks with higher relevancy and greater

recallrecall Can target aisle, shelf, time of day,Can target aisle, shelf, time of day,

geography, inventory, individual preferencesgeography, inventory, individual preferences

Desire to drive consumer behaviourDesire to drive consumer behaviour

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In-store Video MarketIn-store Video Market

$500 Million a year and will grow$500 Million a year and will growrapidlyrapidly

PioneersPioneers

PRN in 6500 stores, partnered with NBCPRN in 6500 stores, partnered with NBC

CBS outernet 10,500 locationsCBS outernet 10,500 locations

OnSpot Network, partner with PublicisOnSpot Network, partner with Publicis1,300 screens, Simon Brand Malls1,300 screens, Simon Brand Malls

Captivate Network, 8,200 flat screens inCaptivate Network, 8,200 flat screens inelevatorselevators

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Whats the impactWhats the impact

Targeting is key, migration to IPTV andTargeting is key, migration to IPTV and

varied content produces 10% highervaried content produces 10% higher

salessales

Walmart Smart Network in 2700Walmart Smart Network in 2700StoresStores

Store instrumentation forStore instrumentation formeasurement, can connect to shelvesmeasurement, can connect to shelves

and items purchasedand items purchased

Behavioral tracking instead ofBehavioral tracking instead of

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Research neededResearch needed

How to identify customersHow to identify customers

Privacy versus public viewingPrivacy versus public viewing

Study needed for Ad recall andStudy needed for Ad recall andinfluenceinfluence

How does it complement Broadcast TVHow does it complement Broadcast TVand other in-store promotionaland other in-store promotionaldisplaysdisplays

Nielsen PRISM is leading in-storeNielsen PRISM is leading in-store

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The Ad marketThe Ad market

Broadcaster deliver high impactBroadcaster deliver high impact

campaigns to large audiencescampaigns to large audiences

Internet is to fragmented forInternet is to fragmented foradvertisers to aggregate attentionadvertisers to aggregate attention

Market may need big network playersMarket may need big network players

to aggregate selling of Ad slotsto aggregate selling of Ad slots

Google like Ad Market may developGoogle like Ad Market may develop

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In-store AdvantagesIn-store Advantages

One channel focusOne channel focus

Frame of mind of shopperFrame of mind of shopper

Higher potential relevancyHigher potential relevancy

Can provide informational help How-Can provide informational help How-

ToToWith mini-kiosk on cart may provideWith mini-kiosk on cart may provide

amazon like recommendationsamazon like recommendations

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FuturesFutures

Provoking Shopper social contagionProvoking Shopper social contagion

In-store video is the start of placing theIn-store video is the start of placing theinfrastructure to instrument the storeinfrastructure to instrument the store

Video tracking, identification of people andVideo tracking, identification of people andproduct interest, directed audio, flow andproduct interest, directed audio, flow andcrowd dynamics, out of store continuitycrowd dynamics, out of store continuity

Multi-channel marketing across situationsMulti-channel marketing across situationsand devices.and devices.

Context awarenessContext awareness

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Innovations inInnovations in

Augmenting Reality RetailAugmenting Reality Retail ProjectionProjection

Moving screens, thinking picturesMoving screens, thinking pictures

Multi-screen coordinationMulti-screen coordination

Projection on non-uniform objectsProjection on non-uniform objects

3D and Holographic projection3D and Holographic projection

SelectionSelection

Object, face, and voice recognitionObject, face, and voice recognition

User generated and Dynamic contentUser generated and Dynamic content

Preference configurationPreference configuration

User selectable promotionUser selectable promotion

Avatar shopping buddyAvatar shopping buddy

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ChallengesChallenges

Programming model is needed, notProgramming model is needed, not

just repurposing content fromjust repurposing content from

Broadcast TV. The content needs toBroadcast TV. The content needs to

be situational.be situational.

Interaction model is needed to studyInteraction model is needed to study

the consumer behavior to shiftingthe consumer behavior to shifting

retail spacesretail spaces

Need analytics to enhance promotionalNeed analytics to enhance promotional

and targeting campaignand targeting campaign

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SummarySummary

Emerging market with huge potentialEmerging market with huge potential

OpportunitiesOpportunities

New business models for Ads/PromotionsNew business models for Ads/Promotions

Media design challengesMedia design challenges

Needs business savvy creative talentNeeds business savvy creative talent

Innovative Technology productsInnovative Technology products

Major Research opportunityMajor Research opportunity

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ReferencesReferences

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

http://www.retailcustomerexperience.comhttp://www.retailcustomerexperience.com

http://www.digitalsignagetoday.comhttp://www.digitalsignagetoday.com

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

http://www.prn.com/homeelectronicsnetwork.html?prev=nav2http://www.prn.com/homeelectronicsnetwork.html?prev=nav2

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

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ContactContact

Ray GarciaRay Garcia

Executive in ResidenceExecutive in Residence

Center for Future Banking at MITCenter for Future Banking at MIT

rgarcia@media.mit.edurgarcia@media.mit.edu