THE VIRTUALEXPERIENCE ECONOMY

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

EDUCATIONAL ENTERTAINMENT

ESTHETIC ESCAPIST

ABSORPTION

E.G. ATTENDING A CONFERENCE

E.G. WATCHING A MOVIE

E.G. CLIMBING A MOUNTAIN

E.G. GOING TO A WATERPARK

PASS

IVE ACTIVE

IMMERSION

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

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

YOUNGERLAST LONGER

RUN FASTER

GET RICHER

EAT HEALTHIER

SMELLFRESHER

BE FITTER

FEEL SEXIER

SLEEP BETTER

CLEAN EASIER

DRIVE FASTER

ENTERTAINME HELP

MEINFORM ME

LISTEN TO MEVALUE

ME

RECOGNISE ME

LEAVE ME ALONE

SHARE WITH MEREWARD

ME

INSPIRE ME

MOTIVATEME

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.

A SHORT HISTORY OF VIRTUAL REALITY

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

DISPLAYSMICROSOFT

LAUNCH HOLOLENS

MAGIC LEAP FOUNDED – BUT YET TO RELEASE THEIR PLATFORM

NASA PIONEER VR FOR

ASTRONAUTS

THE LAUNCH OF THE IPHONE

CHANGES EVERYTHING

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

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?

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.

HELPED AR TO AN UNEXPECTED $1.6 BILLION REVENUE

POKÉMON GO WAS A CULTURAL PHENOMENON WHEN IT LAUNCHED OVER THE SUMMER OF 2016

MICROSOFT HOLOLENSTHE WORLD’S FIRST FULLY UNTETHEREDMIXED REALITY HEADSET

MICROSOFT HOLOLENS IS CURRENTLY THE WORLDS MOST ADVANCED HOLOGRAPHIC COMPUTER

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

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

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

HOW DO WE MAKE SENSE OF ALL THIS?

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 PERCEPTIONSIT’S IMPORTANT FOR BRANDS TO UNDERSTAND HOW CONSUMERS PLAN TO ENGAGE WITH THIS.

VR RECEIVED A 17% HIGHER

EMOTIONAL REACTION THAN 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

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

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 TEMPLATETHE 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 TEMPLATETHE 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 TEMPLATETHE CONSEQUENCES TEMPLATE SHOWS THE POSITIVE IMPLICATIONS OF EXECUTING THE RECOMMENDATION ADVOCATED IN THE ADVERTISMENT

3a

3bINVERTED CONSEQUENCES TEMPLATETHE 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 TEMPLATETHE 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 TEMPLATETHE 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 TEMPLATETHE 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

WHAT COULD BE THE TEMPLATES THAT ARE EMERGING FOR

AR, VR & MIXED REALITIES?

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.

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

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

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

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

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

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

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

Want to know more?Email: info@momentumww.com

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