This blog post originally ran on Power Retail – you can view it here.
We’re currently in the midst of a revolution on the internet in regards to how information is interacted with, digested and shared. Social media has been the main driver of this new era in communication on the internet (both fixed and mobile), so it’s no surprise that this revolution is also impacting online retail. Social media tools are just now being incorporated into most online retail sites which are giving consumers a new method in which to pre-validate purchases through peer feedback. However, interactive video is set to alter the way in which consumers interact with product information by not only integrating what works from social media but also altering the way consumers interact with digital content.
Online shopping itself has to date been a very solitary experience and not entirely interactive. Consumers would often review listings of a product, view respective photos and maybe even see a standard product video – all to base their buying decision on. The Achilles heel of online shopping has always been the lack of interaction with the product itself to make a more informed purchase decision. However, innovative uses of interactive video are quickly changing that perception. Interactive video is providing that next step just short of reaching out and physically touching a product (that’s another installment though as 3D printing might change things in the near future). Some online retailers are even using interactive video as a customer service model to better connect with the online shopper. Though interactive video itself is a technical breakthrough, it will continue to evolve online due to its integration of social media fundamentals. Here are a few examples of how interactive video is changing the online shopping experience:
ZAPPOS’ INTERACTIVE PRODUCT VIDEOS
With a partnership with Nike and Overlay.tv, Zappos is offering interactive product videos for the consumer to get product info and other information all through an interactive video interface. Consumers can also leave their own video testimonial through their webcam. Zappos’experience has shown it increased conversions from 6% to 30% for products that use video.
SAMSUNG PRODUCT SUPPORT TV
Even the customer service experience will be affected as online shoppers expect to deal with a live person versus an automated response. Samsung is offering live video streaming for online shoppers to have a more personable way to solicit information from their customer service end.
AUGMENTED REALITY SHOPPING
Webcam usage is skyrocketing, so it’s only a matter of time until shoppers expect to have the ability to ‘try on’ digital clothing while they shop. Enter Augmented Reality Shopping. Tobi.com recently integrated Augmented Reality into their site to provide this innovation for their customers. (Disclaimer: Zugara created Fashionista based off its Webcam Social Shopper technology)
SUMMARY
Webcam sales alone are expected to grow to $3.2 billion by 2015 and video chat services such as Skype are currently handling 22 million users concurrently at any given time. I think it’s safe to say that as interactive video continues its growth on the web, webcam and video chat integration will as well.
Join me at my presentation at the Online Retailer Expo & Conference in Sydney on July 7, 2010 as I show even more demonstrations of how emerging media and technology are contributing to this evolution of both the internet and online shopping.
Via the always informative and interesting Searchblog by John Battelle, is this presentation given by Reed Hastings of Netflix. It outlines the usual growth, challenges, competitors, and so on but what stuck out to me was one slide on competition. It’s obvious that on the streaming side Netflix is going to be confronted with numerous competition from online (Hulu), cable/satellite, premium cable brands (HBO) and so on. What was interesting though was Netflix looking ahead at $100 CPM’s as potential competition. Here’s the text from the slide:
$100 CPM Threat
Ad targeting on internet could get so good that free ad-supported movies and TV shows becomes nearly the entire market
The better the targeting, the fewer ads needed to support a piece of content, thus the fewer people willing to pay for commercial-free Netflix
Consumers don’t like ads in movies, but if there were only 4 ads, and the movie is free, that would be pretty compelling
The threat depends on how much Google and others can improve personalized ad targeting for video
Anyone want to bet against Google on this? It’ll be interesting to see how their Android OS for the connected TV market changes the landscape as well.
The entire presentation is embedded below and definitely worth checking out.
This post originally ran on ReadWriteWeb on Friday, May 7th. You can view the original article here.
I’m starting to think that the Augmented Reality industry is very close to developing a Jan Brady complex. If you know what a “Jan Brady complex” is, then skip to the next paragraph. For those who didn’t grown up with the 1970s-era television show The Brady Bunch, a Jan Brady complex refers to the middle sister Jan Brady who constantly complained that her older sister Marcia received all the attention. Still with me? Good.
Guest author Matthew Szymczyk is the CEO and founder of Zugara, an interactive marketing agency that consults Fortune 500 brands – including Lexus, Sony PlayStation, Reebok and Toyota – on their strategic utilization of emerging media and technology. Zugara also develops its own proprietary Augmented Reality solutions and technologies. Video demos can be found here.
This idea came about through conversations with people in the AR industry, and also watching presentations and discussions from just about every high profile name in the biz. Some of the thought leadership and insight into AR and its future is just mind blowing. But therein (partially) lies the problem. People in the AR industry (ourselves included at Zugara) tend to talk more about the what ifs than the how and when.
How can AR be monetized right now? If not now, when?
When will AR start showcasing true utility and practicality over endless gimmicks?
How and when will AR become integrated into our daily lives?
Most of these questions are discussed from the what-if end, which results in a lack of investment into the AR industry. Despite the hype for AR, social gaming services like Zynga, location-based-services like Foursquare, and a host of other emerging media and technologies are garnering all the VC and startup capital. So why does AR still have so little respect from the investment community while these other emerging technologies get all the monetary love? Why is Marcia getting all the attention while Jan isn’t? Having met with a few VCs, here are my thoughts:
AR overall is cool but also seems very gimmicky. This hasn’t been helped by the recent onslaught of marketing-based AR initiatives that have no long term value and are really just quick PR grabs by brands. Though there is value in owning the proprietary tech – and, in turn, licensing revenue – it’s not sustained revenue that will attract major investment.
Despite AR being a hot technology for almost two years now, there’s very little in regards to stats, analytics or other measures to show that AR itself is a technology that helps to increase purchase intent and decision-making, raise brand awareness and so on. Where are all the AR leaders with case studies on past campaigns and general AR stats?
In VCs’ eyes AR is still struggling to break from the academic and research realm and into bona fide businesses. As a result, you’ll commonly hear this from VC’s: “AR is still too early stage.” Really? More early stage than Foursquare?
To break out of the Jan Brady complex, the AR industry must be able to define, from a investor point of view, what Augmented Reality is. Is it a technology that will be integrated into location-based-services platforms like Foursquare, or is it a platform that will incorporate location-based services and real-time ads? Or will it be a hybrid of the two? That is a key question since there’s quite a big difference between a technology that’s cool and a technology that can be monetized.
Searching for other emerging technologies and efforts to monetize them garners the following results:
Do the same search on Google for “Augmented Reality Monetization” and you get 28,000 results – most of which direct you to general mobile marketing-based monetization efforts. The only recent article of note is around Layar and its plan to monetize its technology through a store.
I’ve never seen more passionate people at conferences than those who are 100% behind AR (and I’ve been to a lot of conferences over the years for new and emerging technologies). But what we as an industry need to do is to start connecting the dots better for not only investors, but for companies that are looking for more than a spinning 3D model off a marker. Once companies start seeing the true value and utility in AR then there will be kind of long term investment that will connect the dots for VC and jump-start investment capital.
Until the AR industry can start proving that it’s an emerging technology of the future that can be monetized in the present, every time someone complains about the lack of respect all I’m going to hear is “Marcia, Marcia, Marcia!”
You can’t “make” or “create” a viral video, but you can create a unique, interesting and entertaining video that has the potential to “turn” viral…Google has just done that with this Google Chrome Speed Test Video…definitely worth a watch.
We Are Organized Chaos (WAOC) is Zugara’s (www.zugara.com) interactive marketing and advertising blog where we’ll be featuring some great projects and discussing upcoming trends in the digital world. Work — good and bad — will be critiqued. Hope you’ll enjoy reading our insights and thoughts on interactive.
I’m starting to think that the Augmented Reality industry is very close to developing a Jan Brady complex. If you know what a “Jan Brady complex” is, then skip to the next paragraph. For those who didn’t grown up with the 1970s-era television show The Brady Bunch, a Jan Brady complex refers to the middle sister Jan Brady who constantly complained that her older sister Marcia received all the attention. Still with me? Good.