Augmented

Reality Retail
In-store Media – Video TV
the shared shopping
experience

Ray Garcia Feb. 09

Center for Future Banking at MIT Media
Lab
What is it? Shown by
Example
While your shopping
While you sit and wait
At the shelves
At the checkout
Impacting your attention
 In different places
BANK | HOTEL | COMMUNITY | SCHOOL
 The Audience
► Nosingle medium offers widespread
access to consumers. TV, Newspaper,
Magazines, Web. (few exceptions like
Super Bowl)
► Retail
Environment is the new medium
for mass marketing. The place and
shopping provides a context and
implied intention
 Retail in-store advertising
► Traditional - cardboard displays, print
ads, flyers, coupons
► New – in-store video, amazon like
recommendation engines, mini-kiosk
on carts and shelves, store navigation,
product info, use of mobile for UPC
look-up
 Growth Potential
► TV,
Newspaper, Magazines at 2%
annually
► On-line growing at 20%
► Reason: greater targeting, customer
interaction, measurability
 Trend
► Trendingaway from TV advertising to
promotional, loyalty programs, word-
of-mouth, events, all forms of retail
display
►¾ Trillion $ each year for on location
promotion and growing 6%. Tops
traditional Advertising
 Point of Purchase
► Most purchase decisions are made at the
shelf so influences on location are
significant
► In-store
video networks can potentially
reach more customers than major broadcast
networks with higher relevancy and greater
recall
► Cantarget aisle, shelf, time of day,
geography, inventory, individual preferences
► Desire to drive consumer behaviour
 In-store Video Market
► $500 Million a year and will grow
rapidly
► Pioneers
 PRN in 6500 stores, partnered with NBC
 CBS outernet 10,500 locations
 OnSpot Network, partner with Publicis
1,300 screens, Simon Brand Malls
 Captivate Network, 8,200 flat screens in
elevators
 What’s the impact
► Targetingis key, migration to IPTV and
varied content produces 10% higher
sales
► Walmart Smart Network in 2700
Stores
► Storeinstrumentation for
measurement, can connect to shelves
and items purchased
► Behavioral tracking instead of
 Research needed
► How to identify customers
► Privacy versus public viewing
► Study needed for Ad recall and
influence
► How does it complement Broadcast TV
and other in-store promotional
displays
► Nielsen PRISM is leading in-store
 The Ad market
► Broadcaster
deliver high impact
campaigns to large audiences
► Internet
is to fragmented for
advertisers to aggregate attention
► Marketmay need big network players
to aggregate selling of Ad slots
► Google like Ad Market may develop
 In-store Advantages
► One channel focus
► Frame of mind of shopper
► Higher potential relevancy
► Can provide informational help “How-
To”
► With
mini-kiosk on cart may provide
amazon like recommendations
 Futures
► Provoking Shopper social contagion
► In-storevideo is the start of placing the
infrastructure to instrument the store
► Video
tracking, identification of people and
product interest, directed audio, flow and
crowd dynamics, out of store continuity
► Multi-channel marketing across situations
and devices.
► Context awareness
 Innovations in
Augmenting Reality Retail
► Projection
 Moving screens, thinking pictures
 Multi-screen coordination
 Projection on non-uniform objects
 3D and Holographic projection
► Selection
 Object, face, and voice recognition
 User generated and Dynamic content
 Preference configuration
 User selectable promotion
 Avatar shopping buddy
 Challenges
► Programming model is needed, not
just repurposing content from
Broadcast TV. The content needs to
be situational.
► Interactionmodel is needed to study
the consumer behavior to shifting
retail spaces
► Need analytics to enhance promotional
and targeting campaign
 Summary
► Emerging market with huge potential
► Opportunities

 New business models for Ads/Promotions

 Media design challenges
 Needs business savvy creative talent
 Innovative Technology products
 Major Research opportunity
 References
► Strategy+business Issue 53 2008 Major Media in the Shopping Aisle, M. Egol and C.
Vollmer
► http://www.retailcustomerexperience.com
► http://www.digitalsignagetoday.com
► http://www.cisco.com/web/strategy/docs/retail/In_store_Media_BR.pdf
► http://www.prn.com/homeelectronicsnetwork.html?prev=nav2
 Contact
Ray Garcia
Executive in Residence
Center for Future Banking at MIT
rgarcia@media.mit.edu