Buckle Up, Immersive Commerce Is Here

Attention, shoppers: Reality is no longer a requirement for retail therapy. The digital and physical worlds are colliding, and your wallet is caught in the crossfire.

In this edition, we’re exploring the world of immersive commerce:

• How Roblox and Shopify are turning gamers into real-world shoppers

• Why TikTok is becoming the new Google for Gen Z consumers

• The rise of AR and VR in reshaping the online shopping experience

• How brands are creating seamless omnichannel experiences in the digital age

But first, let's look at the headlines.

Headlines

Social Media Apps Could Get Tobacco-Style Warning Labels (CNN)

• Big news: 42 state attorneys general are pushing Congress to slap Surgeon General warning labels on social media apps. We're talking Instagram, TikTok, Facebook - the whole digital playground where teens spend nearly five hours a day.

• These labels could be the first step in treating social media addiction as seriously as we do nicotine addiction, possibly leading to more stringent regulations and a shift in public perception of these platforms.

OpenAI's o1: A New Era of AI Reasoning (OpenAI)

• OpenAI has unveiled o1, a groundbreaking AI model that thinks before it speaks. It can tackle complex math, code like a pro, and even match wits with PhD-level scientists. Using a "chain of thought" approach, o1 outsmarts previous models and sometimes even human experts in fields like competitive programming and advanced problem-solving.

• o1 can analyze intricate market data, optimize supply chains, or debug complex software with human-level insight. o1 and its successors could become invaluable tools for innovation, efficiency, and staying competitive.

Runway Opens API for Enterprise-Grade Video AI (VentureBeat)

• Runway, the New York-based AI startup, is offering API access to its Gen-3 Alpha Turbo video generation model. This allows businesses to integrate ultra-fast, high-quality video generation directly into their own apps and services. Imagine being able to create custom video content on demand, right within your existing workflows.

• This API could revolutionize how businesses approach video content creation. For content production, it means the ability to generate video assets instantly. Omnicom is already on board, and we're likely to see rapid innovation in how video content is created and used across industries.

• Email me to see how Emerald Digital has been using Runway over the last few months. We’ve been working on some wild stuff.

TikTok Faces Uphill Battle in Court Against U.S. Ban (Forbes)

• TikTok and its parent company ByteDance had a tough day in the DC Circuit Court of Appeals, fighting against a law that could ban the app in the U.S. by January 2025. The judges grilled both sides, focusing heavily on TikTok's recommendation algorithm and its ties to China. The case could still go either way, and will likely go to the Supreme Court.

• If TikTok is banned, businesses will need to quickly pivot their social media strategies and potentially lose access to a massive, engaged audience. If TikTok prevails, it could set precedents for how foreign-owned tech companies operate in the U.S.

• P.S. we launched a new site for Connyct — and we’ve built TikTok like functionality, but housed here in the US of A (and stay tuned for a big news drop …)

What the Heck is Immersive Commerce, Anyway?

Picture yourself scrolling through TikTok, when a video of someone unboxing the coolest gadget you've ever seen pops up. Before you can even finish thinking "Where can I get that?", a buy button appears. Two taps later, it's ordered. That's the magic of immersive commerce – turning your mindless scrolling into a personal shopping spree.

The Big Players Making Waves

Roblox and Shopify: When Pixels Turn into Profits

One of the most intriguing developments in this space is the partnership between Roblox and Shopify. Now, you might be wondering, "What's Roblox?"

Roblox is a global platform where millions of people gather daily to imagine, create, and share experiences in immersive, 3D worlds. It's particularly popular among younger generations, with over half of all U.S. kids and teens under 16 using the platform.

The Roblox-Shopify partnership allows creators and brands to sell physical items within Roblox games.

Nike, Walmart, and Gucci are already selling real products on Roblox.

Amazon Anywhere: Because Why Stop at World Domination?

Not content with owning your wallet in the real world, Amazon's now coming for your virtual one too. Their "Amazon Anywhere" service brings immersive shopping experiences to video games, virtual worlds, and mobile apps.

Their first victim... I mean, partner? Peridot, an AR pet game an from Niantic (the creators of Pokémon Go). Now you can buy real merch for your fake pet without ever leaving the game.

This move by Amazon signals a broader trend: the desire to make shopping possible wherever consumers are spending their time, whether that's in games, social media, or other digital environments.

Pinterest: From Dreamboard to Delivery

Pinterest has gone from "look at this cool thing" to "own this cool thing". They've got:

It's like they took your mood board and turned it into a shopping list. Dangerous? Maybe. Awesome? Absolutely.

TikTok: Dancing For Dollars

TikTok isn't just for watching dances anymore. Now it's gunning for Google and Amazon. Why? Because Gen Z would rather watch a 30-second video about a product than read a boring review.

Whether you're exploring a new city or hunting for the best plush animal, TikTok's authentic, video-based search results are outpacing traditional text-based searches and reviews. The ease of one-click purchases and the platform's rapid innovation cycle make TikTok a formidable competitor in the e-commerce landscape.

It's impulse buying for the short attention span era, and it's glorious for consumer brands.

YouTube: Because Sometimes You Need a 20-Minute Video to Convince You to Buy Something

Not to be outdone, YouTube's jumping on the bandwagon too. They're all about that long-form content life, letting creators ramble about products for ages before you hit that buy button.

It's perfect for when you need to justify that purchase with "But I watched a whole video about it!" And if I'm being honest this completely works on me.

Decathlon: Bringing Sexy Back to Brick-and-Mortar

While many examples focus on purely digital experiences, Decathlon is revolutionizing the traditional retail experience in India with an omnichannel approach that seamlessly blends online and offline shopping:

This flexibility allows customers to shop in whatever way is most convenient for them. It's like they took all the ways you could possibly want to shop and said, "Yes, and?".

Why Should You Care?

These examples aren't just isolated innovations—they're indicators of where retail is heading. Here's why this matters:

1. Seamless Integration: Shopping is becoming an organic part of our digital experiences, rather than a separate activity. Soon, you won't be able to watch a cat video without being able to buy cat food.

2. Personalization: These immersive experiences allow for unprecedented levels of personalization, as they can tap into our interests and behaviors within these digital environments.

3. New Revenue Streams: For brands and creators, this opens up new ways to monetize digital content and experiences.

4. Changing Consumer Expectations: As these experiences become more common, consumers will come to expect this level of integration and convenience.

5. Blurring of Physical and Digital: The line between physical and digital retail is disappearing, creating new opportunities for innovative shopping experiences.

How to Ride This Wave Like a Pro

Alright, so how do you stay ahead of the game? Glad you asked:

1. Think Beyond Traditional E-commerce: Your online store is just the beginning. Consider how you can sell where your customers are spending their time online.

2. Integrate E-Commerce into Digital Platforms: Explore partnerships that allow you to sell physical products within virtual environments, games, or apps.

3. Leverage Immersive Technologies: Implement AR try-ons, AI-powered visual searches, and other immersive features to enhance customer experience.

4. Adopt Live Commerce: Use live streams to showcase products in real-time, increasing interaction and immediate purchases.

5. Optimize for Emerging Search Trends: Recognize platforms like TikTok as major search and purchase channels, adjusting your marketing strategies accordingly.

6. Balance Organic and Paid Strategies: Develop a marketing approach that leverages both organic reach and paid advertising for maximum impact.

7. Partner with Influencers and Creators: Collaborate with trusted voices to enhance brand authenticity and reach new audiences effectively.

8. Create Omnichannel Experiences: Take inspiration from Decathlon's approach. How can you create a more seamless experience between your digital and physical presence?

The Future is Now, Old Man

Immersive commerce isn't just reshaping retail—it's redefining brand experiences. As the lines between digital and physical blur, the question is if your brand is going to ride this wave to the bank.

Here's the deal:

1. Digital is the New Normal: Your customers are living, breathing, and yes, shopping in digital spaces. They're not just browsing websites; they're inhabiting virtual worlds, scrolling through social, and (soon) interacting with AR experiences. If your brand isn't there, you're invisible.

2. Touchpoints Galore: It's not about a single point of contact. It's about creating a web of touchpoints that catches customers wherever they are.

3. Relationships Over Transactions: Building relationships trumps pushing products. It's about creating experiences that resonate, offering value beyond the purchase, and becoming a part of your customers' digital lives.

4. Meet Them Where They Are: Your customers are on a journey, and it's your job to join them, not the other way around. Your brand needs to be there, ready to engage.

5. Complexity is Your Friend: Yes, navigating this is complex. But with complexity comes opportunity. The brands that can master the dance are the ones that will thrive.

So, what's the bottom line? The future of commerce isn't just 'online' – it's deeply, irrevocably intertwined with the digital experiences that are shaping our lives.

Looking to turn digital innovation into real-world profits?

Immersive commerce isn't just flashy tech – it's a revenue generator. My team and I will help you implement strategies that don't just look good, but drive conversions and boost your bottom line. From shoppable AR to gamified loyalty programs, we'll create digital experiences that customers can't resist.

Want to see your investment in digital pay off big time? Let's unleash the profit potential of immersive commerce.