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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 - http://america.ecomm.ec/
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Building Business Models Around Augmented Reality
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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
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CLIENTS
WE’VE WORKED WITH A FEW BRANDS…
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“Augmented Reality is a solution looking for a problem…”
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Really?
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• To date, most AR executionshave been branded asgimmicks – and some definitelyare
• Advertising & Marketing – Cashing in on the
AR hype for quick PR
and brand awareness
Is AR Technology Itself A Gimmick?
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• 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…
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• 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…
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So Where Does That Leave AR?
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AR is a Unique Technology that Crosses Multiple Media Channels and Industries
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• 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
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Most AR Companies Offer a Software Based Revenue Model
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• 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
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• 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
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How Do We Target Areas Like E-Commerce?
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“Augmented Reality is a solution looking for a problem…”
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Problem: Bridge The Gap Between Offline and Online Shopping
Offline ShoppingSocial but time consuming
Online ShoppingConvenient but not social
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Solution: Augmented Reality
WebcamSocial
ShopperDemo
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