Commoditization to Automation - WTF Do We Do?

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This was a brief presentation I gave at the AdAge Creativity & Technology Conference (CAT) in New York on 6/10/10. Topic of the panel was "Agencies or Developers? Yes." and my intro presentation was on the commoditization of interactive marketing/web development services and why we started to develop our own proprietary augmented reality tech.

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  • It’s utilitarian and provides no emotional satisfaction. Conversion rates are low, with the “gold standard” being between 2% and 3%. Cart abandon rates are high. 45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore) The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research) "If I'd asked people what they wanted, they would have said a faster horse .“ – henry ford
  • Commoditization to Automation - WTF Do We Do?

    1. 1. Commoditization to Automation WTF Do We Do?
    2. 2. <ul><li>Snapshot: We’re an interactive marketing agency with a passion for emerging media and technologies </li></ul><ul><li>Expertise: Augmented Reality, Interactive TV App Dev, Gen X and Y Demo </li></ul><ul><li>Products: ZugMO, Webcam Social Shopper / Fashionista, ZugSTAR, ZugMUG </li></ul><ul><li>Founded: 2001 </li></ul><ul><li>Location: Los Angeles (HQ) / New York </li></ul><ul><li>Web: www.zugara.com </li></ul><ul><li>Blog: www.weareorganizedchaos.com </li></ul><ul><li>Facebook: www.facebook.com/zugara </li></ul><ul><li>YouTube: www.youtube.com/zugara </li></ul><ul><li>Twitter: www.twitter.com/zugara </li></ul>PROFILE HELLO… WE’RE ZUGARA
    3. 4. Commoditization – Graphic (Definition)
    4. 6. Commoditization Commoditization is the dilution of a market sector's internal differentiation and competitive nuances in favor of a mass market where price alone determines consumer behavior. The industry's mode of competition thus moves away from innovation of the underlying, commoditized product and toward alternative methods of building value.
    5. 8. Now anybody could claim they were ‘digital’ or ‘interactive’…
    6. 9. Kinda like how Twitter’s made all these ‘social media experts’ today
    7. 10. Looking Back to The Year 2000…
    8. 11. The Web
    9. 12. That Changed In Only 10 Years Time…
    10. 14. We Saw AR For the 1 st time…
    11. 15. And knew this was the future of interaction with digital information VIEW INTERACT ACCESS
    12. 17. So We Set Out To Build Our Own AR Tech….So We Wouldn’t Have to Answer To “The Man”
    13. 18. We Targeted E-Commerce and Identified A Problem…
    14. 19. Shopping Offline Is An Emotional Experience
    15. 20. Online, Not So Much
    16. 21. <ul><li>The “consumer experience” has made very little progress in the last 15 years </li></ul>Amazon 1990’s Amazon 2010
    17. 22. Abandoned Carts 45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore)
    18. 23. Low Conversions Conversion rates are low, with the “gold standard” being between 2% and 3%
    19. 24. High Return Rates The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research)
    20. 25. What If Consumers Could Have That “At The Rack” Experience, Online?
    21. 26. Enter Augmented Reality
    22. 27. Augmented Reality Shopping - Fashionista
    23. 28. Challenges Still Ahead… <ul><li>Commoditization of AR Services/Tech </li></ul><ul><li>Open Source vs. IP </li></ul><ul><li>Partnership Ecosystem </li></ul><ul><li>Overall Balance of Services vs. Software Development </li></ul>

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