Shopper Marketing - July 2016 - 50


FEATURE: VIRTUAL REALITY/AUGMENTED REALITY

adoption within the next three to five years."
Aaron Burch, president of Touchstone Research Inc., an analyst in the space, says there
is a "massive investment in VR and AR technologies, platforms and content from all major players in the game, and the hardware and
software hurdles seemed to be conquered
with each new day." He warns of companies
jumping into VR or AR "just because." "Many
industry experts agree that the two will actually converge and the majority of headsets
will offer both VR and AR experiences known
as mixed reality."

Tim Merel, founder and CEO of Eyetouch
Reality and founder/managing director at
Digi-Capital, says $1.7 billion has been invested in AR and VR in the last 12 months,
more than 25 times that of two years ago. A
Goldman Sachs Global Investment Research
report says that virtual reality products, both
software and hardware, will be an $80 billion business by 2025, generating around $35
billion in revenue. The report says gaming
and live consumer events will have the largest
market share by 2025 with $11.6 billion and
50

y SHOPPER MARKETING JULY 2016

$4.1 billion, respectively. Retail is gauged at
$1.6 billion.
Pettyjohn notes that Magic Leap is receiving a lot of attention and investment. The
company is working on a virtual reality headset that is more like wearing glasses. Merel
says Magic Leap has amassed a total of $4.5
billion.
Facebook, too, has fueled much of the recent ink on VR following Mark Zuckerberg's
talk at the F8 developer conference. He laid
out a 10-year plan with VR heavily in that picture, saying that eventually instead of buying physical objects like 90-inch
TVs, people will experience it in virtual form with a $1 app from an app
store. He recently hired away Regina
Dugan from Google innovation to
head up Facebook's "Building 8"
group dedicated to this.
"When Facebook bought Oculus
Rift for $2 billion in 2014, it became
clear the world's biggest technology
companies were taking virtual reality very seriously," says Barwin of
Kantar Retail Virtual Reality. "Mark
Zuckerberg was recently quoted as saying, 'virtual reality will change the way we
live, work and communicate.' Industry commenters believe Apple is secretly developing
their VR capability and that Google is working
on a smartphone-based headset similar to
Samsung Gear VR but supporting a far wider
range of smartphones."
Indeed, while Apple hasn't publically announced its role in VR or AR, Pettyjohn says
they have 300 people working on solutions.
Augment's Jordan says that with Apple's recent



Table of Contents for the Digital Edition of Shopper Marketing - July 2016

Contents
Shopper Marketing - July 2016 - Intro
Shopper Marketing - July 2016 - 1
Shopper Marketing - July 2016 - 2
Shopper Marketing - July 2016 - 3
Shopper Marketing - July 2016 - Contents
Shopper Marketing - July 2016 - 5
Shopper Marketing - July 2016 - 6
Shopper Marketing - July 2016 - 7
Shopper Marketing - July 2016 - 8
Shopper Marketing - July 2016 - 9
Shopper Marketing - July 2016 - 10
Shopper Marketing - July 2016 - 11
Shopper Marketing - July 2016 - 12
Shopper Marketing - July 2016 - 13
Shopper Marketing - July 2016 - 14
Shopper Marketing - July 2016 - 15
Shopper Marketing - July 2016 - 16
Shopper Marketing - July 2016 - 17
Shopper Marketing - July 2016 - 18
Shopper Marketing - July 2016 - 19
Shopper Marketing - July 2016 - 20
Shopper Marketing - July 2016 - 21
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Shopper Marketing - July 2016 - 24
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Shopper Marketing - July 2016 - 26
Shopper Marketing - July 2016 - 27
Shopper Marketing - July 2016 - 28
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Shopper Marketing - July 2016 - 139
Shopper Marketing - July 2016 - 140
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