The document discusses the emergence of the experience economy, emphasizing how businesses must create memorable events for customers, making the total experience the product. Key trends include the evolution of virtual reality (VR), augmented reality (AR), and mixed reality, which are positioning themselves as new avenues for brand storytelling and consumer engagement. It highlights the importance of innovative experience-led technologies and urges marketers to focus on the quality of experiences to remain competitive in a rapidly changing market.

1. THE VIRTUAL
EXPERIENCE ECONOMY

2. WHAT DO
WE MEAN
BY EXPERIENCE
ECONOMY?
A NEW ECONOMIC ERA IN WHICH
ALL BUSINESSES MUST ORCHESTRATE
MEMORABLE EVENTS FOR THEIR
CUSTOMERS, AND THAT MEMORY
ITSELF BECOMES THE PRODUCT.
- THE “EXPERIENCE”
THE
SWEET
SPOT
EDUCATIONALENTERTAINMENT
ESTHETIC ESCAPIST
ABSORPTION
E.G. ATTENDING
A CONFERENCE
E.G. WATCHING
A MOVIE
E.G. CLIMBING
A MOUNTAIN
E.G. GOING TO
A WATERPARK
PASSIVE
ACTIVE
IMMERSION

3. THE ERA OF EXPERIENCE IS HERE. IT’S A REALITY.
EVERY DAY WE WORK WITH COMPANIES THAT
ARE TRANSFORMING THEMSELVES AROUND THE
IDEA THAT THEIR VALUE GOES WAY BEYOND THEIR
PRODUCTS AND INTO THE TOTAL EXPERIENCE
THEIR CUSTOMERS HAVE WITH THEIR BRAND.
KEY INSIGHT:
CUSTOMER EXPERIENCE IS REGARDED AS THE
PRIMARY WAY FOR ORGANISATIONS TO DIFFERENTIATE
THEMSELVES FROM COMPETITORS IN 2017, BUT DATA
CAPABILITIES AREN’T DEVELOPING FAST ENOUGH.
- ECONSULTANCY’S 2017 DIGITAL TRENDS REPORT

4. WHAT DOES
THIS MEAN
FOR THE
CUSTOMER?
PREVIOUSLY BRANDS HAVE
RELIED UPON TELLING STORIES
IN THE ‘THIRD’ PERSON USING
TRADITIONAL ADVERTISING
FORMATS SUCH AS PRESS AND
TV ADS, WITH DIGITAL AND
EXPERIENTIAL MARKETING
AMPLIFYING THESE MESSAGES.
WASH
WHITER STAY
YOUNGER
LAST
LONGER
RUN
FASTER
GET
RICHER
EAT
HEALTHIER
SMELL
FRESHER
BE
FITTER
FEEL
SEXIER
SLEEP
BETTER
CLEAN
EASIER
DRIVE
FASTER

5. ENTERTAIN
ME HELP
ME
INFORM
ME
LISTEN TO
ME
VALUE
ME
RECOGNISE
ME
LEAVE ME
ALONE
SHARE
WITH ME
REWARD
ME
INSPIRE
ME
MOTIVATE
ME
CHANGE
ME
WHAT DOES
THIS MEAN
FOR THE
CUSTOMER?
THROUGH THE PROLIFERATION
OF SMARTPHONES AND SOCIAL
MEDIA WE ARE IN A WORLD
WHERE EVERYONE IS CONNECTED
TO EVERYONE ELSE THROUGH
TECHNOLOGY AND THIS REQUIRES
STORYTELLING IN THE ‘FIRST’
PERSON WHERE BRANDS CAN
NOW LEAD WITH EXPERIENCE.

6. A SHORT HISTORY
OF VIRTUAL REALITY

7. TIMELINE
VICTORIAN
ILLUSIONISTS
INVENTED
TECHNIQUES SUCH
AS PEPPER’S GHOST
1860’S 1900’S 1950’S 1960’S 1980’S 1990’S 2007 2011 2014 20182016
THE ‘FATHER OF VR’
MORTON HEILIG
BUILDS THE
SENSORAMA
FACEBOOK BUYS
OCULUS RIFT
IPHONE 8 PROMISES
NEW AR FEATURES
THE FIRST 3D
IMAGES USING
STEREOSCOPES
BECAME POPULAR
1800’S
2018
THE 90S
REPRESENTED A
SLUMP FOR VR
DEVELOPMENT
MIT EXPERIMENT
WITH THE FIRST
HEAD-MOUNTED
DISPLAYS
MICROSOFT
LAUNCH HOLOLENS
MAGIC LEAP
FOUNDED – BUT
YET TO RELEASE
THEIR PLATFORM
NASA PIONEER
VR FOR
ASTRONAUTS
THE LAUNCH
OF THE IPHONE
CHANGES
EVERYTHING

8. VR
AR
MIXED REALITY
THE FUTURE OF VR, AR AND MIXED
REALITY IS DEPENDENT UPON THE
AMOUNT OF PROCESSING POWER YOU
CAN GET INTO A SMALL FORM FACTOR
AND FORTUNATELY MOORE’S LAW IS
ALIVE AND WELL TO PROVIDE THE
PROCESSING POWER.

9. SHOULD WE
BELIEVE THE HYPE?
EXPECTATIONS FOR
VR HAVE SO FAR
PROVED UNREALISTIC
THE ABSOLUTE PERFORMANCE
OF VR AND AR IN 2016 WAS NOT
AS IMPORTANT AS HOW IT IS
CHANGING THE TRAJECTORY
OF THE MARKET.
GENERAL
POPULATION
SAMSUNG GEAR VR 7% 10%
7% 9%
5% 8%
4% 6%
4% 5%
SONY PLAYSTATION VR
OCULUS RIFT
GOOGLE CARDBOARD
HTC VIVE
GAMERS
AGED 13+
VR/ AR PURCHASE
INTEREST
HOW LIKELY ARE YOU TO BUY EACH
OF THE FOLLOWING VR/AR DEVICES?

10. GOOGLE LAUNCHED GLASS IN 2013…
IT WAS DOOMED BY A COMBINATION OF HIGH
PRICE, $1,500 USD, AVAILABILITY, PRIVACY
ISSUES AND POOR PUBLIC PERCEPTION
THE ISSUE OF THE DEVICE’S GROWING
NEGATIVE IMAGE, FOLLOWED CLOSELY HAND
IN HAND WITH CONCERNS OF PRIVACY. IT’S
CURIOUS IN SOME WAYS THAT GLASSES WOULD
BE PICKED ON, GIVEN THE LOW RESOLUTION.
PEOPLE ARE WEARING GOPROCAMERAS OUT
AND ABOUT, BUT GOPRO HASN’T SEEMED
TO GENERATE THE SAME BACKLASH, DESPITE
REPRESENTING ARGUABLY MORE OF A
PRIVACY THREAT.

11. HELPED AR TO AN
UNEXPECTED $1.6
BILLION REVENUE
POKÉMON GO WAS A CULTURAL PHENOMENON
WHEN IT LAUNCHED OVER THE SUMMER OF 2016

12. MICROSOFT
HOLOLENS
THE WORLD’S
FIRST FULLY
UNTETHERED
MIXED REALITY
HEADSET
MICROSOFT HOLOLENS
IS CURRENTLY THE
WORLDS MOST ADVANCED
HOLOGRAPHIC COMPUTER

13. FACEBOOK
IS AIMING
TO BUILD
THE VIRTUAL
SPACE WHERE
ALL ASPECTS
OF LIFE CAN
UNFOLD FACEBOOK SPACES IS THE
COMPANY’S FIRST ATTEMPT
TO INTEGRATE YOUR SOCIAL
NETWORK WITH VIRTUAL REALITY

14. ALIBABA LAUNCHES BUY+
A VIRTUAL REALITY
SHOPPING EXPERIENCE
ALIBABA HAS SUCCEEDED IN BRINGING BOTH AR AND
VR TO SINGLES’ DAY (11.11) THE WORLD’S BIGGEST
SHOPPING DAY WITH $17.8 BILLION IN TRANSACTIONS

15. MAGIC LEAP
IT IS LIKE
DREAMING
WITH YOUR
EYES OPEN
THIS TECHNOLOGY COULD AFFECT EVERY BUSINESS THAT USES SCREENS
OR COMPUTERS AND MANY THAT DON’T. IT COULD KILL THE $120 BILLION
MARKET FOR FLAT-PANEL DISPLAYS AND SHAKE THE $1 TRILLION GLOBAL
CONSUMER-ELECTRONICS BUSINESS TO ITS CORE

16. HOW DO WE MAKE
SENSE OF ALL THIS?

17. NIELSON’S RESEARCH USED NEUROSCIENCE TECHNOLOGY TO COMPARE
USER RESPONSE TO THE SAME CONTENT PRESENTED IN THREE DISTINCT
MEDIUMS: VR, 360-DEGREE VIDEO ON A FLAT SURFACE AND 2D.
NIELSON
RECENTLY
CONDUCTED
A STUDY TO
UNDERSTAND
HOW AR
VR AFFECTS
PERCEPTIONS
IT’S IMPORTANT FOR BRANDS TO
UNDERSTAND HOW CONSUMERS
PLAN TO ENGAGE WITH THIS.
VR RECEIVED A
17% HIGHER
EMOTIONAL
REACTIONTHAN FLAT 360-DEGREE
VIDEO AND A 27%
HIGHER REACTION THAN 2D
VR CONTENT WAS ALSO
ENGAGED FOR
34% LONGER
THAN 2DAND 16% LONGER THAN
360-DEGREE VIDEO

18. THE STUDY
FOUND VIRTUAL
REALITY TO BE
A POWERFUL
TOOL FOR
CREATING
EMOTIONALLY
ENGAGING
BRAND
EXPERIENCES
VIRTUAL REALITY
LOOKS TO BE POISED
TO BECOME A STRONG
DRIVER OF EMOTIONAL
ENGAGEMENT FOR
MANY BRANDS

19. IN 1999,
3 ISRAELI
SCIENTISTS
IDENTIFIED
SIX SEPARATE
AND DISTINCT
“CREATIVITY
TEMPLATES”
THEY USED ADVERTISING AS THEIR
‘LABORATORY’ BECAUSE IT PRODUCES
THOUSANDS OF PIECES OF AWARD
WINNING CREATIVE EXPRESSION.
PICTURE REPLACEMENT TEMPLATE
THE PICTURE REPLACEMENT TEMPLATE PORTRAYS
SITUATIONS IN WHICH A SYMBOL OR IMAGE IS
INTRODUCED INTO THE PRODUCT SPACE AND
IS BY FAR THE MOST COMMON TEMPLATE.
1
EXTREME SITUATION TEMPLATE
THE EXTREME SITUATION TEMPLATE REPRESENTS
SITUATIONS THAT ARE UNREALISTIC. IT CAN
PORTRAY THE ABSURD LENGTHS PEOPLE GO
TO IN THE ABSENCE OF A PRODUCT OR THE
EXAGGERATED VALUE OF A PRODUCT.
2
CONSEQUENCES TEMPLATE
THE CONSEQUENCES TEMPLATE SHOWS THE POSITIVE
IMPLICATIONS OF EXECUTING THE RECOMMENDATION
ADVOCATED IN THE ADVERTISMENT
3a

20. 3b
INVERTED CONSEQUENCES TEMPLATE
THE INVERTED CONSEQUENCES TEMPLATE SHOWS
THE NEGATIVE IMPLICATIONS OF NOT EXECUTING
THE RECOMMENDATION ADVOCATED IN THE
ADVERTISEMENTS AND WARNS AGAINST NOT
FOLLOWING THE RECOMMENDATION
THE COMPETITION TEMPLATE
THE COMPETITION TEMPLATE PORTRAYS
SITUATIONS IN WHICH THE PRODUCT IS SUBJECTED
TO COMPETITION WITH ANOTHER PRODUCT. THE
SELECTION OF THE OTHER PRODUCT OR EVENT IS
GENERALLY GUIDED BY ITS PERCEIVED SUPERIORITY.
4
INTERACTIVE EXPERIMENT TEMPLATE
THE INTERACTIVE EXPERIMENT TEMPLATE INDUCES
REALISATION OF THE BENEFITS OF THE PRODUCT
BY REQUIRING THE VIEWER TO ENGAGE IN AN
INTERACTIVE EXPERIENCE WITH THE MEDIUM IN
WHICH THE AD APPEARS.
5
DIMENSIONALITY ALTERATION TEMPLATE
THE DIMENSIONALITY ALTERATION TEMPLATE
MANIPULATES THE DIMENSION OF THE PRODUCT
IN RELATION TO ITS ENVIRONMENT USING DEVICES
SUCH AS TIMES LEAP, MULTIPLICATION AND DIVISION
OF PRODUCTS
6

21. WHAT COULD BE THE TEMPLATES
THAT ARE EMERGING FOR
AR, VR MIXED REALITIES?

22. IMMERSIVE
STORY TELLING -
NEW YORK TIMES
‘THE DISPLACED’
REDEFINES THE
ROLE OF THE
‘NEWSPAPER’
THE NEW YORK TIMES USES GOOGLE CARDBOARD TO PUT READERS AT THE
CENTER OF THEIR STORIES IN AN IMMERSIVE VIRTUAL-REALITY EXPERIENCE.

23. GUINNESS USES VR TO TRANSPORT EACH DRINKER
INTO A WORLD OF COLOURS, SHAPES AND SOUNDS
AS THEY TRY THE WEST INDIES PORTER, HOP HOUSE
13 LAGER AND GUINNESS DRAFT.
SENSORY
AMPLIFICATION –
GUINNESS
LAUNCH NEW
FLAVOURS WITH
THE HELP OF VR

24. TOPSHOP USED VR TO CREATE AN EXPERIENCE THAT WOULD OPEN UP
TOPSHOP’S LONDON FASHION WEEK SHOW TO A WIDER HIGH STREET AUDIENCE.
TAKE ME
SOMEWHERE
ELSE –
TOPSHOP’S
VIRTUAL
CATWALK
TAKES THEIR
CUSTOMERS TO
THE CATWALK

25. TO BRING TO LIFE THE AMERICAN EXPRESS PARTNERSHIP WITH
THE USTA GUESTS COULD USE VIRTUAL REALITY TO PLAY AGAINST
MARIA SHARAPOVA AT RALLY ON THE RIVER IN NEW YORK.
CELEBRITY
INTERACTION
TEMPLATE -
AMERICAN EXPRESS
ENABLE CARD
HOLDERS TO
RALLY A
TENNIS ICON

26. AUDI SANDBOX IS AN IN-STORE INSTALLATION THAT LETS YOU TEST-DRIVE
THE NEW AUDI Q5 IN VR ON A SELF-MADE TRACK MADE OUT OF SAND.
PRODUCT TEST
DRIVE TEMPLATE –
AUDI USES VR
TO ENABLE A
NEW TYPE OF
TEST DRIVE

27. THIRTY-FIVE PROXIMITY BEACONS HAVE BEEN STRATEGICALLY PLACED WITHIN THE
MUSEUM TO PUSH AR CONTENT AND EXPERIENCES TO VISITORS TO MAKE SURE THEY
MAKE THE MOST OF THEIR VISIT.
AUGMENTED
ENVIRONMENT
TEMPLATE –
FIFA’S WORLD
FOOTBALL MUSEUM
VISITOR APP
AUGMENTS THE JOY
AND FUN OF FOOTBALL

28. 1.
IMMERSIVE
STORY
TEMPLATE
4.
CELEBRITY
INTERACTION
TEMPLATE
2.
SENSORY
AMPLIFICATION
TEMPLATE
5.
PRODUCT
TESTDRIVE
TEMPLATE
3.
TAKE ME
SOMEWHERE
ELSE TEMPLATE
6.
AUGMENTED
ENVIRONMENT
TEMPLATE

29. KEY OUT-TAKES
• AR is already getting big, VR will be big, Mixed Reality will be much bigger but will take longer
• Technology creates opportunity, but it remains creativity driven by strategic insights that
creates true value
• In a world where the average attention span is only 8 seconds, experience led technologies
offer new ways for our clients to earn and hold the attention of their customers
• VR and AR are opening up a whole new canvas for brand storytelling
• It will be critical for marketers to begin thinking about quality-of-experience from the onset
• We are moving into an internet of experiences
• We're already able to start augmenting our realities, bringing our digital content into our real
world environment
• Ultimately personal computers will live in the spaces around us

30. Want to know more?
Email: info@momentumww.com
Copyright © Momentum Worldwide 2017. All rights reserved. This document, and its contents, are confidential and may not be reproduced or transmitted without the written permission of the publisher.
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