Building Business Models Around Augmented Reality
 

Building Business Models Around Augmented Reality

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This was a presentation I gave on Building Business Models Around Augmented Reality at the Augmented Reality Conference (part of Ecomm) on April 21, 2010. More info here on Ecomm site - ...

This was a presentation I gave on Building Business Models Around Augmented Reality at the Augmented Reality Conference (part of Ecomm) on April 21, 2010. More info here on Ecomm site - http://america.ecomm.ec/

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Building Business Models Around Augmented Reality Building Business Models Around Augmented Reality Presentation Transcript

  • Building Business Models Around Augmented Reality
    • Snapshot: We’re an interactive marketing agency with a passion for emerging media and technologies
    • Services: Interactive Video, Social Media Marketing, Mobile Marketing, Website/Application Development
    • AR Products: Webcam Social Shopper / Fashionista, Cannonballz, ZugSTAR
    • Founded: 2001
    • Location: Los Angeles / New York
    • Web: www.zugara.com
    • Blog: www.weareorganizedchaos.com
    • Facebook: www.facebook.com/zugara
    • YouTube: www.youtube.com/zugara
    • Twitter: www.twitter.com/zugara
    PROFILE HELLO… WE’RE ZUGARA
  • CLIENTS WE’VE WORKED WITH A FEW BRANDS…
  • “ Augmented Reality is a solution looking for a problem…”
  • Really?
    • To date, most AR executions have been branded as gimmicks – and some definitely are
    • Advertising & Marketing
      • Cashing in on the
      • AR hype for quick PR
      • and brand awareness
    Is AR Technology Itself A Gimmick?
    • Virtual Worlds
      • Second Life
    • Social Media
      • Facebook, Twitter
    • Mobile Marketing
      • Admob, iPhone Apps
    • Online Video
      • Brightcove, YouTube
    • Blog Networks / Advertising
      • Gawker, AOL
    Past Emerging Media & Technologies Have Been Monetized…
    • What’s the ROI?
    • Will Consumers Actually Use It?
    • What Analytics Can You Share?
    • How Much Can You Discount Your Fees Because We Have Alot Of Future Work For You…
    And Initially Had The Same Questions and Challenges…
  • So Where Does That Leave AR?
  • AR is a Unique Technology that Crosses Multiple Media Channels and Industries
    • CPM ads (“cost per thousand views”; banner ads online and regular ads in print, TV and radio)
    • CPC ads (“cost per click”; think Google ads)
    • CPA ads (“cost per action”; pay only if the customer performs a certain action)
    • CPT ads (“cost per transaction”; you pay only if the customer brought to you from a media sites becomes a paying customer.)
    • Lead generation (you pay for qualified names of potential customers)
    • Subscription revenues
    • Affiliate revenues (think: Amazon Associates)
    • Rental of subscriber lists
    • Sale of information (selling data about users–aggregate/statistical or individual–to third parties)
    • Licensing of brand (people pay to use a media brand as implied endorsement)
    • Licensing of content (syndication)
    • Getting the users to create something of value for free and applying any of the above to monetize it. (Like Digg or our own Reddit)
    • Upgraded service/content ( ed: aka “freemium”)
    And Will Continue To Evolve With Multiple Revenue Models
    • Alternate output (pdf; print/print-on-demand; customized Shared Book style; etc.)
    • Custom services/feeds
    • Live events
    • “ Souvenirs”/”Merchandise”
    • Co-branded spinoff
    • Cost Per Install (popular with top Facebook apps who can help others get installs)
    • Sponsorships (ads of some sort that are sold based on time, not on the number of impressions)
    • Listings (paying a time based amount to list something like a job or real estate on your website)
    • Paid Inclusion (a form of CPC advertising where an advertiser pays to be included in a search result)
    • Streaming Audio Advertising (like radio advertising delivered in the audio stream after a certain amount of audio content has been delivered)
    • Streaming Video Advertising (like streaming audio but in video)
    • API Fees (charging third parties to access your API)
    Source: Wired Magazine
  • Most AR Companies Offer a Software Based Revenue Model
    • Real-Time Advertising / Couponing
      • Most likely for mobile
      • ecosystem and location
      • based services
    • Lead Generation
      • Most likely to cross all major media channels
    Opportunities Will Exist to Build Other Revenue Models Around AR
    • Sponsorship
      • Brand / Marketing opportunities
    • Subscription
      • AR based services direct to consumer (i.e. Gaming, Shopping, etc.)
    Opportunities Will Exist to Build Other Revenue Models Around AR
  • How Do We Target Areas Like E-Commerce?
  • “ Augmented Reality is a solution looking for a problem…”
  • Problem : Bridge The Gap Between Offline and Online Shopping Offline Shopping Social but time consuming Online Shopping Convenient but not social
  • Solution : Augmented Reality Webcam Social Shopper Demo
  • Thank You! Matthew Szymczyk CEO, Zugara [email_address] twitter.com/kobrakai facebook.com/Mhszymczyk