“The weakness we’re seeing in the macroeconomy is a drizzle compared to the Category 5 shitstorm we’re seeing in digital advertising.” -SCOTT GALLOWAY
A year ago, Apple’s iOS upgrade forced apps, including Facebook and Instagram, to request access for permission to user’s data. This data is used to serve personalized ads to shoppers that drive greater performance. If users opt out, the ads become less effective, and digital media dramatically less valuable.
But few predicted the change would be this dramatic. Only 16% of users agreed to be tracked, meaning social media ad platforms are 84% less effective.
This media is the heart and soul of the Direct To Consumer Retail that has changed our retail landscape over the past decade. I watched first hand how niche brands eroded massive brands and retail right from under their feet. This represents a massive opportunity.
“Without data, the digital ad ecosystem doesn’t work.”
“McKinsey projects retail media as a $100 billion marketplace by 2023, but this number doesn’t capture the next major source of advertising revenue in brick-and-mortar locations, where consumers still do most of their shopping.”
BUILDING MODERN SOLUTIONS
It goes without saying that advertisers want to reach their most valuable audience to drive engagement and conversion. If they can’t reach them on social media, where are these audiences most contextually aligned with retail messaging?
On-location media serves up an audience that is contextually primed. They are already shopping, seeking promotions, discounts, and information for making decisions. On-location media content is not disruptive, instead it is uniquely along the path to purchase and relevant to what they’re already doing. This drives higher performance. I am happy to report Customers still love being there. Touché Social Media + E-Commerce.
PREPARE FOR A NEW WAVE OF PHYSICAL INNOVATION
We are seeing a wave of new experiential and retail concepts capitalizing on store vacancies globally.
Prepare for transcendent experiential concepts like Hyperspace in Dubai and the Kingdom of Saudi Arabia and the more lifestyle oriented to 5 Iron Golf in the US, to vie for time, space and dollars inside of properties. Get ready for mixed reality concerts, space defying dance performances and the future art galleries to break open physical and digital.
These concepts are digitally and physically native, not either or. Their enterprise is already prepared for today’s blended customer who prefers physical experiences with digital efficiencies.
They are looking to innovative non-traditional media sources and expect their partners to have this digital infrastructure in place because their customers and visitors are already ‘there.’
McKinsey projects retail media as a $100 billion marketplace by 2023, but this number doesn’t capture the next major source of advertising revenue in brick-and-mortar locations, where consumers still do most of their shopping.
CUSTOMERS + VISITORS ARE ALREADY THERE
ARE WE READY? YES! AUGMENTED + MIXED REALITY
- In the US, 83.1 M Monthly People use AR Every Month
- Snapchat claimed that 63% of their users use AR features daily 200M daily users engage (AR)
- Approximately 75% of global population almost 100% of users will be frequent users of AR by 2025
- “Mobile AR ad placement will grow from an estimated U.S. $1.36B in 2020 to U.S. $6.68B in 2025.” — Marketwatch, Jan. 15, 2022
FINALLY: WHAT IS XR MEDIA PLATFORM
Mixed Reality Media Revenue capitalizes on new technologies to provide media in unlikely areas. Augmented Reality, holograms, Mixed-Reality all provide exciting, innovative and interactive opportunities for brands to reach new customers. For properties this is a whole new world of inventory designed to increase revenue and customer experience. Great immersive media positioned on location where the current customer is spending their time. Prepare to capitalize on a faltering ad-tech ecosystem.
IS THIS ALL POSSIBLE?
Yes, the infrastructure is being built right now and is being put in place in commercial real estate. It is not a one step magic solution. In the same regard it is also not a “rip and replace” piece of software you will need to upgrade in 5–7 years. The new digital foundations and the next generation non-traditional revenue platforms are being built now.
It is time for Malls, Big-box retail, Consumer venues to begin putting in place the foundation and begin to understand these powerful technologies and tools that will support a whole new world of revenue opportunities.
Up Next: The Unwinding of Social Media and what it means for DTC…
THE SCIENCE PROJECT
From Stores of The Future and NYC Holiday Windows to the newest Digital Twin technologies, augmented reality, metaverse and ESG applications, we are champions of the built world. We work with the world’s greatest consumer properties, malls, department stores, and real estate developers to capitalize on their physical spaces and maximize revenue.