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.

The following list is by no means all inclusive, but these are a few examples of Utility-Based AR currently out there. Not just a video or concept, but a working example you can use right now. I also often cite these examples when asked how AR can rise above the current gimmicks being used in the marketing and advertising worlds…

SAMSUNG

Link: http://testlab.samsung.com/

This execution is quite simple.  Print out the marker, tape it to your wall and see how the Samsung TV will measure out for placement on that same wall.

USPS

Link: https://www.prioritymail.com/simulator.asp

Another simple yet effective use of AR.  This application allows you to see how your item will fit in respective USPS packaging.

FASHIONISTA (Webcam Social Shopper)

Link: http://www.tobi.com

This application uses AR to overlay images of clothing on an individual to enhance the online shopping experience.  Motion capture also adds ability to stand from computer and navigate controls.  (Disclosure:  Zugara created this application…)

SUNSEEKER

Link: http://ajnaware.wordpress.com/2009/10/06/sun-seeker-seeing-the-light-with-augmented-reality/

Not an example of AR you would initially think of but brilliant once you understand how it works.  This mobile AR app allows you to see how the sun is positioned at any time during any day of the year.  This then shows you how sunlight would fall into your bedroom (for new home shoppers), where to plant a garden, etc.

HONORABLE MENTION

LEGO

Though this is technically not utility-based it’s still very effective and great use of AR at retail.  How can any father resist purchasing this for their child after seeing the Lego’s build out?

Those are my top 5.  If you have any others, add them in the comments and we’ll post them on the site (if they’re actually utility-based or you can make a strong enough argument for it

To see the application in action, check out our video below.

(UPDATE: If you’re having trouble accessing the embedded video – here is the direct YouTube URL)

Now that you’ve seen the application in its “Alpha State”, think about the potential an app like this has as we partner with brands to allow their consumers to do things like:

• Livestream their webcam’s feed to friends and loved ones, and get comments and feedback right next to the application in real time.
• Receive “clothing care packages” from loved ones who might be somewhere else in the country and set up times to “shop together”… online.
• Enter their measurements into the app and get a “fitted image”.
• Match entire outfits at the same time, both top and bottom.
• Shop right within a branded Facebook application.

It’s not a secret that friends/family recommendations influence a consumer’s purchase decision and beat any other “consumer touchpoint”. Now, we can help brands empower their consumers to integrate their friends and family into their online shopping process like never before. The thinking is that this application will help bridge the gap between how people like to shop offline and how they are forced to shop online, subsequently providing an enhanced interactive shopping experience for the consumer and increased sales for the brand. So, what do you think? Please, feel free to share this post with anyone and everyone, or embed the video above in your own blog. And, as always, we’d love to know your thoughts below…

(UPDATE: We’ve partnered with RichRelevance to integrate their recommendation engine into WSS and create a completely unique application dubbed Fashionista. Fashionista is currently live on Tobi.com and you can read more about that launch on Fast Company.)

About Zugara

Zugara is an interactive marketing agency with a passion for emerging media and technologies. Unlike most agencies, we don’t claim to do everything: Interactive Video, Social Media, Mobile Marketing, and Website & Application Development are our core competencies. Since our doors opened in 2001, we’ve been lucky enough to work with some of the world’s best brands such as Reebok, Sony Computer Entertainment Of America, Toyota, Activision, Jelly Belly, Casio, The Air Force, and Lexus to create strategic interactive campaigns that focus on accomplishing their business objectives. Based in Los Angeles, we’re currently in the process of expanding, and opening our second office in New York (www.zugara.com) (www.zugarastudios.com).

For more information on The Webcam Social Shopper or ZugMo Technology, please contact ar@zugara.com. For all other inquiries, please contact info@zugara.com.

Copyright 2009 ZugMo Technology
Copyright 2009 Webcam Social Shopper
Copyright 2009 Zugara Inc.
Patent Pending