This post is the latest in our “Disrupting Retail” series. It’s our editorial focus for the month of February, and you can see the rest of the series here. One positive phenomenon of the Covid era has been accelerated digital transformation in traditional sectors. This could be a blessing in disguise, as sectors like retail could […]
One of the emerging technologies driving innovation amid Covid is AR. For example, its ability to add real-life interactivity to e-commerce gained traction in 2020. This could extend to a post-Covid world of “touchless” retail for in-aisle virtual product interaction.
Climbing Pokémon Go revenue is mostly from in-app purchases, where players pay for digital in-game elements to accelerate their leveling up. But Pokémon Go maker Niantic is also looking to diversify its business model with other revenue streams — most notably, local advertising.
Spending hasn’t declined — it’s just shifted. One of the themes we’re seeing is that the standouts of 2020 are those who have shifted with it. We’re talking here about a broad definition of e-commerce — not just ordering things online, but any digital or mobile purchase.
For example, in local commerce, these digital fulfillment models include mobile order-ahead functions in QSR and coffee. They also include curbside pickup for physical goods. And in an even broader sense (and looking forward), they will include touchless or cashier-less retail in a post-Covid era of physical retail.
Snap continues to make moves in local commerce. Historic steps include geo-filters, while more recent activity includes Local Lenses and business listings in Snap Map. These features are notable on their own, but they get more interesting when you view them together and extrapolate to Snap’s local road map.
For example, Snap has more 13-34-year-olds active than any other channel, including Facebook and Instagram. This essentially means Snap can offer SMBs incremental and non-duplicated reach to an attractive audience.
Dubbed Marsbot for Airpods, Foursquare’s virtual assistant will whisper insights to users about their surroundings, unprompted, as they move throughout the world. This may be a recommendation for a local coffee shop or a fun fact about a landmark.
For brick-and-mortar businesses and the technology providers that help them connect with customers, the marketing possibilities are tantalizing.
Google continues to double down on visual search and navigation. Its latest move came last week with updates to its Live View visual navigation to help users identify and qualify local businesses. This follows soon after its Earth Cloud Anchors that will let users create digital content on physical places.
Both developments tell us something about what may well be the future of local search: augmented reality-enhanced visuals.
When we return to shopping in physical stores, will that look different? It’s hard to imagine there will be as much much merchandise handling as before. Will it be a “touchless” environment? And if so, which technologies will power the touchless future?
Let’s dive into a few candidates.
The fluctuating need for car parking spaces is a source of frustration and concern for city officials all over the world. In the US alone, there are said to be between 105 million and two billion spaces – which is potentially more than the number of cars in existence across the globe. While during busy periods, such as the holiday season, these extensive parking lots are likely to be filled, most of the time they sit empty and unused.
This is wasteful when growing urban areas are constantly in need of more space for housing, schools, and business development. But an array of technologies and technical processes such as automation, the Internet of Things, and self-driving vehicles promise the potential transformation of parking lots and, with them, cityscapes themselves.
As an industry, we must embrace the new rules of iOS14 and create a sustainable future for both app developers and advertisers. I believe we can all agree that user consent is important for any app that monetizes through advertising. Also, there are options to provide user-level attribution and necessary data for performance advertising within Apple’s acceptable framework. I’d encourage all publishers to talk to Apple and seek clarification on process and end-user consent along with the use of IDFVs & SKAdNetwork product road map, etc.
I expect that publishers will aggressively move to optimize their sign-up funnels to maximize consent or live with campaign-only-level metrics and lose end-user targeting. If you’d like to continue to optimize towards ROAS, we encourage you to think of privacy consent as a step in the UA conversion funnel necessary to show targeted ads to consumers.
What about the tech adoption accelerants happening on the supply side? Tech giants who provide marketing and operational tools for local businesses have been in hyperdrive over the past few months to roll out new Covid-era features.
Here are three areas where we’re seeing the most activity … and where we could correspondingly see the most local business evolution.
It would be helpful if about 20 of the large brands boycotting Facebook put their money where their mouth is and invested in the establishment of a data and publisher sharing network.
The next step would be identifying the media publisher outlets as partners. The co-op would need to negotiate a performance-based publisher relationship, which would effectively increase content monetization for publishers’ content channels.
Recent announcements from Snap and Apple at their respective developer conferences point to future connections between AR and local commerce.
Snap’s Local Lenses will let developers create geo-anchored persistent content that Snap users can discover through the camera interface. This will also include the ability for users to leave persistent AR graphics for friends to discover. The use case that Snap has promoted is more about fun and whimsy, including “painting” the world with digital and expressive graffiti. But the development could also include local storefront information.
Moving on to Apple, it similarly continues to show its AR aspirations. The latest is GeoAnchors for ARkit, announced at WWDC. These evoke AR’s location-based potential by letting users plant and discover spatially anchored graphics that are persistent across sessions and users.
Could forced adoption of alternative shopping methods like curbside pickup lead to user acclimation? Will millions of shoppers get exposed to the merits of these streamlined options and like what they see? Will new habits be born that sustain throughout normal times?
If so, these technologies — along with virtual-office enablement — could benefit from this period as a blessing in disguise for exposing their value propositions. But who stands to benefit most? We’ve identified five local commerce tech areas to which this could apply.
I’ve been looking for discoveries that could be blessings in disguise. Just like remote work, these aren’t new concepts but ones that are now given the chance to shine. For example, I spend lots of time analyzing virtual reality, which could be a valuable virtual event tool.
But more to Street Fight’s main focus, what discoveries or business approaches could benefit local commerce? One of them could in fact be VR’s cousin, augmented reality. Its ability to help people visualize things or facilitate “see what I see” co-presence could help local service pros socially distance.
CCPA isn’t the only factor that will impact privacy and data collection. There are less-discussed and potentially more significant variables like the death of browser cookies and other tech-centric measures. Especially for location tracking, private sector influences and accelerants loom.
Apple is far ahead with Watch and Airpods, which may have sold 3 million units since Black Friday. Google meanwhile acquired Fitbit to buttress its wearables play. Amazon and Microsoft launched wearables lines in the past quarter, and smaller players like Bose and Snap are planting seeds for a wearables future.
There’s an underlying driver for this activity that goes back to the perennial analyst exercise of “following the money.” This is all about extrapolating product roadmaps based on tech giants’ motivations. This is often to future-proof their core businesses or diversify revenue in the face of maturing products.
While Amazon is challenging the duopoly, when zeroing in on local advertising and commerce — Street Fight’s hallmark — as opposed to driving eCommerce, another challenger may loom: Uber. In fact, we have a longstanding prediction that it will blitz local advertising by strategically building from the Trojan Horse that is “in-ride mode.”
This theory is based on the fact that Uber has your captive attention during rides, given in-app utilities like mapping and ETA. Furthermore, it knows where you’re going (think destination-based promotions). In the aggregate, it has lots of behavioral data for a richer mosaic of audience-targeting gold.
Amazon has a knack for moving into new vertical segments and then applying its logistical mastery and economies of scale to carve out margins and undercut incumbents. Then, it doubles down by scaling things up to its signature high-volume/low-margin approach. As Jeff Bezos ruthlessly admits, “Your margin is my opportunity.”
The latest place for this to unfold is retail. No, we’re not talking about Whole Foods, though that’s part it (more on that in a bit). We’re talking about Amazon’s transformation of the in-store experience — upending and streamlining logistics just like it’s done in shipping and cloud computing.
Here are some predictions for how Amazon’s disruption of retail via licensing of its Go technology will upend the industry.