How will advertising play out in (admittedly nascent) VR, especially in local? We’ll likely see the same early and ongoing misfires, such as banner ads. Or, as in video experiences, we’ll likely see a fair share of legacy formats — like pre-roll ads — ham-handedly shoehorned into VR.
Real execution will require an extensive value chain. And that’s why location data will be increasingly valuable in an AR-driven world. Specifically, location data will be a key element in displaying the right business or product information graphically.
SMB OS includes the full range of business services that traditionally fall outside of – but are related to – advertising. It’s POS systems, supply chain, payroll, insurance, appointment scheduling, online ordering, CRM… even HR.
The visual search future in which “the camera is the new search box,” will have a massive reliance on local data. Therefore value and demand are boosted within that world for companies that have unique local data sets — everything from NAP to snaps.
Indoor mapping continues to be one of those “holy grail” topics in local. It picks up where GPS drops off, tracking consumers all the way to the cash register. The latest move comes from Google, with an approach that could leapfrog beacons by using the positioning capability already in your phone (or soon will be).
We saw it with Pokemon Go and of course Snapchat. But the real glimpse of the mobile AR future came during Facebook’s recent AR-studded F8 conference keynote. The central message repeated by Mark Zuckerberg was that the smartphone camera is the new AR platform.
Mobile payments continue to be equally opportune and elusive. The potential benefits are huge, but I’m skeptical that mainstream consumers will alter their entrenched habits when they still don’t see cash or credit cards as a pain point.
The majority of mobile ad companies that don’t evolve their janky and interruptive banners will be displaced. A new era of mobile ads will be defined by intelligent formats that speak to the affinities of buying-empowered millennials (who are now almost 40 by the way).
This AI-centric battle is being waged by heavier contenders than any before it, including Apple (Siri), Amazon (Alexa), and Google (Assistant). They’re each basing battle plans on their current positioning and biggest assets, and the winner will sway the next era of local commerce.
A few recent moves have begun to triangulate how Uber might build out auxiliary revenue channels. It will be all about enhancing your ride, then, down the road, an ad model. And it won’t involve in-car signage or digital displays.
No matter how good the targeting, creative, and “right person, right place,” the vast majority of our time contains urgencies that render us immune to push-based mobile ads. It’s basically a question of how often we’re actually idle, and therefore impressionable to being rerouted from a deliberate course.
Apple’s relative inaction on VR/AR thus far could either indicate that the company is missing this next tech shift (which I’ve speculated), or that it’s playing the long game. The latter could involve a deliberately late entrance to VR and AR, just as it did with previous technologies.
Foursquare has gone from check-in darling to an under-recognized data powerhouse. But in that transition, it’s more successful than ever. And its primary emphasis has remained the entire time: real-world consumer behavior. Meanwhile, the ad industry’s hunger for location data grows.
Apple just entered augmented reality, without anyone really noticing. Though the iPhone 7 was met with a collective ‘meh,’ the real impact is below the surface, where the world’s biggest company collides with tech’s biggest opportunity.
Soon, graphical overlays to the physical world will amplify everything from retail shopping (store navigation and product info), to finding a restaurant (ratings & reviews) to buying a home (values & specs). Utility will lead; marketing departments and jargon police can follow.
The lesson from the phenomenon isn’t for local tech companies to try and build the next Pokémon Go — but rather to build a similarly justifiable value exchange for sharing location. Advertisers and ad networks should likewise work with apps that have that higher likelihood of user opt-in.
The outcome could be the biggest step towards local ad attribution we’ve seen yet. And Facebook’s sheer scale will force more advertisers’ hands — especially those still not doing more to measure activity where $7 trillion in U.S. consumer spending happens.
Google’s counter-attack to the world of apps can be seen in several places. In fact most Google moves are to drive mobile behavior through its front door. This principle underpinned nearly every announcement at Google I/O.
The trillion dollar question is if this emerging chatbot technology will annihilate the phone call. Though I’m bullish on messaging and chatbots, the answer to that question is likely no.
Bots could displace apps just as apps displaced search. “Search started with consumers typing into a box,” Pingup’s Ron Braunfeld said recently. “[AI] is all about knowing where you are, time of day, what’s in your refrigerator; and giving you the right information without having to search.”
