Disrupted Advertising – with the disruption of existing channels new opportunities emerge


What everyone is missing with augmented reality – Guest article by Zappar

Apple’s iOS9 update has started a tsunami of disruption in the advertising business with many channels (mobile, TV) become vulnerable to technology developments enabling the eventual strangulation of those channels. From the ashes of those channels arise new opportunities in disruptive technology itself.

In Mary Meekers influential report through Kleiner Perkins, there’s one slide over the last two years that hasDisrupted Advertising always caught my eye and that’s the one showing the massive opportunity for ad revenue in mobile in the US and the extraordinary gap when indexed against usage. And I suspect this trend could be replicated in other markets around the world.

As TechCrunch observed on this point, ‘Americans spend 24% of their time on mobile, but the medium only sees 8% of ad spend. As this balances out, businesses that build places to host mobile ads could absorb massive revenue’.

I agree with TechCrunch on the opportunity for new places but there’s one other piece missing here which is around building new platforms to create the most compelling content for the mobile canvas for advertisers.

At Zappar this has been our focus over the last few years by uniquely:

i) Allowing any real estate from screen to print, product to packaging, POS to promotion to be unlocked as a multi-media channel from your mobile using augmented reality and our proprietary zapcode solution. This means brands and businesses can now create, control and customise their own content and media channels anytime, anywhere on anything;

and ii) Developing the best content creation platform to deliver the most immersive and interactive experiences, made for mobile, and supporting augmented reality out-of-the box. So the game moves on beyond ad banners, weblinks and videos and takes advantage of the phone’s camera, gyro, accelerometer and processing power to make new engaging experiences made specifically for the handheld form factor featuring contextual game play, shareable photo features, deep-links, m-commerce solutions, deeper analytics and more.

This is where analysts and markets have completely missed the massive commercial opportunity that augmented reality and the tools that support it afford. With all eyes on the VR ball, AR now has a real chance to steal a march for any canny corporation.

Complementary technologies, such as VR, have massive potential for disruption but right now come with costs and constraints that limit its practical widespread use as a marketing technology. AR is ready now, accessible to anyone anywhere with a smart-device, and appropriate for a wide range of social occasions, both in and out of home.

By 2017, an estimated 1.9 billion smartphones will ship each year, becoming ever more affordable and featuring better cameras and processors. This evolutionary appendage has given us a new lens on the world. With Zappar we’re revolutionizing the information and experiences end users will receive through that lens helping brands and businesses engage their users in better ways to help sell more products. It’s nothing short of a total revolution in where we consume media and what form that content takes. So Mary, we’re ready to fill that $25bn gap for you on mobile.