the value of experiential - new augmented reality business models

© Gary Hayes CCO MUVEDesign & Founder StoryLabs@garyphayes - [email protected] - storylabs.com.au - muvedesign.com

\The Value of Experiential - New Augmented Reality Business Models ©© GaryPHayes

Tuesday, 17 May 2011

mailto:[email protected]




Gary HayesAR Event 2011 Santa Clara

NEW AUGMENTED REALITY BUSINESS MODELS

INTRO






16 AR Value Propositions & Usage Scenarios - 2009probably why I was invited to speak :)






16 AR Value Propositions & Usage Scenarios - 2009

1. IN SITU: Aiding sale by seeing projects & products placed in the environment before completion. 2. UTILITY: Selling life enhancing AR applications perceived as useful. 3. TRAINING: Hands-on with complex equipment and work scenarios. 4. SOCIAL GAMING: Both connotations of the word, pay-per-play mixed reality games in physical

space. 5. LOCATION LAYERS: Blended guides to new places, tourism, enhanced travelling or themed

space. 6. VIRTUAL DEMO: Display to promote sale, of product in pre-release or remotely via catalogue etc: 7. EXPERIENTIAL EDUCATION: Pay-per-visit educational services to museums, ancient sites etc: 8. ENHANCED CLASSIFIEDS: An AR directory that promotes local 3rd parties product & services

overlaid at the location. 9. 3D VIRALS: Branded company or personal promotion & ads using ʻcoolʼ 3D toys.10.PERSONALIZED SHOPPING: Walking around stores made relevant, opt in personalization and

targeting.11.COOPERATION: Service industry for augmented virtual meetings.12.BLENDED BRANDING: The equivalent of hoardings, virtual poster ads.13.AUGMENTED EVENTS: Pay-per-use of enhanced sport or pop concerts. 14.INTERTAINMENT: New form experiential TV and films. Blu-Ray seem so 18th century.15.UNDERSTANDING SYSTEMS: Creating AR for internal or exploded views of complex objects. 16.RECOGNITION & TARGETING: Pushing ʻrelevanceʼ to outdoor consumers – facial recognition

linked to online data.






Since then there has been lots of talk about a $$ bill industry - #3 billion within 4 years? But what industry, what is it?






AR (technical & marketing) services already reach 100 000 sCan we define future markets if we don’t know what it is?






But still for most users - what the hell is AR?

ʻthat webcam thingʼ - ʻdots floating in the skyʼ? Whats the value again?

We, as a fledgling industry need to better educate and agree about the ʻvast potentialʼ and scope of AR beyond just 3 simple areas? •Intelligent surfaces - projection mapping, tables, kiosks etc:•Locative - device aware, overlayed content•Recognition - marker and image aware content

All of the above can link to or pull in content from the cloud






My Definition of Augmented Reality (from a value proposition perspective)

1 AR is an INTERFACE that better enables2 Insight & CONNECTION into Products, Places & People

3 then a ʻsense-of-place EXPERIENCE & STORYʼ

There are 3 eraʼs - 1) INTERFACE 2) CONNECTION and 3) EXPERIENTIAL






The Augmented Reality Business StakeholdersContent creatorsContent owners

Content distributorsSoftware developers

Advertisers, promoters & ad distributorsService providers

Portal ownersNetwork operators

Equipment manufacturersEquipment retailers

Consumers

INTERFACE ERA

CONNECTION ERA

EXPERIENTIAL ERA

:) ERA = Every Reality Augmented






So the rest of the talk I want to approach key questions1 - How to make AR valuable to users, glue & connection

2 - The Value of Experiential

but first what is it and who am I?






about me- context for this talk






Content developer, consultant, service director

•95-04 UK, BBC Senior Development Producer - Interactive & Broadband TV•95 - Standards body eg: Chair of Business Models TV-Anytime, MPEG, DVD

•03-05 US, Interactive & Social TV Producer

•05-10 Director - LAMP Advanced Media Production @ AFTRS

•05- PersonalizeMedia Power 150 Media/Marketing Blog

•06- MUVEDesign (Transmedia, Alternate & Augmented Reality, Virtual Worlds)

•10- StoryLabs (Oz, US, UK, Canada)






The old un-welcome brand parallels with Second Life?!Will we see the equivalent of empty stores in #AR?






MUVEDesign - the most traffick’d, brand, sims in Second LifeThis one Telstra from 2006-2009






BigPondPontiac

ABC TV AustraliaMicrosoft

NissanMercedes-Benz

IBMNetG Training

MTVNPA Consulting Group

Starwood HotelsShowtime (L Word)

The Weather ChannelNBC UniversalAdidas Reebok

SamsungMazda

Sony EricssonSony BMG

ToyotaDell

ABN AMROBMWAOL

Reuters

0 3,750 7,500 11,250 15,000

Worldwide Brand Statistics Second LifeFigures based on more than 5min dwell and proportion of time inworld

BigPond - MUVEDesignPontiacABC Australia - MUVEDesignMicrosoftNissanMercedes-BenzIBM

1381911447

108077115631460564165

http://nwn.blogs.com/nwn/2007/08/taterus-mixed-1.html








Why were these two sims (ABC, Telstra) so popular even though this had branding & advertising?

1 building community components 2 creating immersion 3 a place felt like home 4 events 5 variation/depth 6 authenticity






Making AR Value-able

The Connection Era






The Connection Era 2010-2015

Insight & CONNECTION into Products, Places &

People

The shift to truly valuable services that

engage and enrich and glue the cloud to the

world around us






More ‘engaging’ AR concepts already in regular use?






What the heck will happen when the cloud really descends?!

Will it be seen as gimmick vs the real potential

The AR industry is not an industry until it provides value

AR is cheapened if it is perceived just as a:

1) A ʻfiddlyʼ link to other media (marker to video, image to iTunes store or a building (image) to a website)

2) Tiltʼilation models on their webcam






Value found in consumer need? Maslow’s Hierarchy

INTERFACE ERA

CONNECTION ERA

EXPERIENTIAL ERA






Mapping 16 AUGMENTED REALITY BUSINESS MODELS to Eras

Low LIKELY COMMERCIAL VALUE High

Nich

e

ADO

PTIO

N

Po

pula

r

BLENDED BRANDINGThe equivalent of hoardings, virtual poster ads

3D VIRALSBranded company or personal promotion

& ads using 'cool' 3D toys

VIRTUAL DEMODisplay to promote sale, of product in pre-

release or remotely via catalogue etc

IN SITUAiding sale by seeing projects placed in the

environment before completion

ENHANCED CLASSIFIEDSAn AR directory that promotes local 3rd parties

product & services overlaid at the location

INTERFACE ERAUTILITY

Selling life enhancing AR applications perceived as useful.

AUGMENTED EVENTSPay-per-use of enhanced sport or pop concerts

LOCATION LAYERSBlended guides to new places, tourism, enhanced travelling or themed space

PERSONALIZED SHOPPINGWalking around stores made relevant, opt in

personalization and targeting

UNDERSTANDING SYSTEMS Creating AR for internal or exploded

views of complex objects TRAININGHands-on with complex equipment and work scenarios

COOPERATIONService industry for augmented

virtual meetings

CONNECTION ERA

SOCIAL GAMING

Pay-per-play mixed reality games in physical space

RECOGNITION & TARGETINGPushing 'relevance' to outdoor consumers - facial

recognition linked to online data

EXPERIENTIAL EDUCATION

Pay-per-visit educational services to museums, ancient sites etc

INTERTAINMENTNew form experiential TV and films

EXPERIENTIAL






Valuable examples? Trying on glasses, tilting cameras etc:

Myles Peyton of Total Immersion






EXAMPLES OF REALLY BASIC VALUE - NOT YET

REALISED?!

PHYSICAL SEARCH






Useful examples? Locative AR Search. Finding product based on criteria

Johnny Depp ArticlesLifestyle Interview

Johnny Depp ArticlesLatest Film DVD Clips






Bickford’s Lime Juice$1.69 bottle

Useful examples? Locative AR Search. Finding product period






45G Protein BarsPowerLift $2.49

Useful examples? Locative AR Search. Finding product based on type






Physical Search - finding specific criteria product

Low Fat, Low SodiumBRW Peanuts $0.89






Physical Search - Healthy Options & Recipe

Sugar Free Popcorn$1.30 for 500g

Lasagne Recipe Ingredient 4/15

Pasta $3.28






Physical Search - intelligent, overlay GPS?

5 car pile-up- estimated 45 mins hold up

To avoid take this exit to I15 junction 221






The Value of AR Experience Design

The Experiential Era 2014-the end of time






Draft - WIP the value of experience from AR perspective






Emotional story experiences – drama played out in the real world. A new form? - Locat-inima (Locative Cinema)






Emotional story experiences – drama played out in the real world. A new form? - Locat-inima (Locative Cinema)

© ʻWitnessʼ 13th Street Universal






Pervasive entertainment – games played in true MMO style in real worldthis is one of MUVEDesignʼs Projects in progress






Lifestyle and aspirational - seeing experiences of others at location






Note: All Experiential Usage Scenarios can develop revenue through promotional/advertorial, sponsorship, subscription, peer-to-peer, pay-per-play, expansion packs and most other key digital models






Social Community – leaving rich media in location

but also competitive (how I did now you come here and try or do better, gamify rich media

sharing in location

Mental ExperiencesLearning by doing, accredited courses

where the context makes sense – literature/art/history – but again also gamify to make the experience real

See through the eyes of others...

Spiritual Experienceselements of personal dev. Tracing your future or specific astrology based on your current location

Aspirational experiences already seen lots of discounts and

guides in location but here we buying ʻvirtualʼ goods to enhance and improve our augmented real

life

Gifting Experienceswhat things will people buy

virtually. Would they place gifts for others in virtual space – requiring them to go there?

Hybrid experiences – social/emotional, meet-ups

flash groups

Other Examples of Experiential Usage Scenarios - Draft WIP again...






four final thoughts






• there needs to be a jump in the ease of use of current AR for USERS not just the developers. Away from clunky browsers, poor locative tech etc: Smoother animation and video

• Standards are required for mass use and interoperability - we canʼt expect each new service to require users to download a new client

• The education of the consumer & content creator base is critical to be clear on what AR really is and the different types

• The brave new world we are evangelising requires sustainability as a foundation and critical to that is finding real value that consumers will happily pay for

Next Steps if any to move into the CONNECTION & EXPERIENTIAL era?






THANKS QUESTIONS?

These slides will soon be on slideshare.net/hayesg31




the value of experiential - new augmented reality business models

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