Where The Physical Meets the Digital: Phygital
Ever wish you could wave your phone over something in a store and immediately get info or reviews? Or make your Lego buildings come to life digitally? That’s what the emerging field of “ Phygital” is all about -connecting physical stuff to digital experiences to make them work together in cool new ways. It’s bringing together real-world physical spaces and objects with digital technology like sensors, apps, and touch displays.With the right blends of industrial design, engineering, and computer programming, Phygital has the potential to seamlessly merge our physical environments with responsive digital displays and feedback. I don’t know about you, but a more interactive world that bridges atoms and bits sound awesome to me! concise it keeping the meaning, format and tone same I find the idea of a more interactive world that bridges atoms and bits awesome!
How can blending physical and digital spaces open new possibilities for brands to connect with and engage consumers?
The blurring line between physical and digital realms creates “phygital” experiences, offering brands exciting opportunities to connect and engage consumers.
Immersive In-Store Experiences: Brands can create immersive in-store experiences using augmented reality (AR), blending digital elements into physical spaces. For instance, a clothing brand could install an AR mirror in dressing rooms, displaying digital content like style recommendations as customers try on outfits. This not only provides helpful feedback but also generates user-generated content, spreading brand awareness.
Omnichannel Retail Integration: Brands can also link up physical stores with a digital presence to provide a connected phygital experience. This means leveraging options like buying online and picking up in-store through features like local inventory availability and curbside pickup. Brands can also facilitate virtual previews of in-store items through digital browsing. Integration of retail touchpoints enables brands to give consumers flexibility between channels and expose shoppers in one channel to experience the other. s options like online purchasing with in-store pickup and virtual previews of items. Integrating retail touchpoints gives consumers flexibility between channels, enhancing brand engagement and loyalty.
Why do hybrid experiences that blend both physical and digital places appeal to Gen Z consumers?
Gen Z, as digital natives, naturally gravitates towards blended phygital experiences that merge physical and digital elements. These experiences enrich their consumer journey, providing entertainment, connection, and self-expression. For instance, scannable codes and AR mirrors enhance their shopping experiences. Customized ads, driven by programmatic advertising, further integrate digital and physical realms by offering personalized promotions in-store. This approach not only engages customers but also streamlines operations for retailers, aligning with Gen Z’s preferences for personalized experiences in both online and offline settings.
How programmatic partners are helping brands in delivering perfect phygital Experiences to consumers?
Programmatic advertising enables precise targeting and optimization for digital campaigns, benefiting retail brands like Nike and Sephora. For example, Nike’s House of Innovation in New York City offers a digital “stadium” for designing virtual sneakers with AR, while Sephora’s workshop in San Francisco uses AR mirrors for virtual makeup trials.In India, Nykaa and Myntra leverage programmatic ads for personalized experiences, contributing to the country’s growing ad spending projected to reach $21 billion by 2028. Myntra, with 65% of its digital marketing driven by programmatic ads, saw significant revenue growth, reaching 51 billion Indian rupees in fiscal year 2023. As brands embrace these tactics, advertising becomes more interest-based for consumers.
This article is written by Varsha Rani, Programmatic Account ExecutiveVarsha Rani
SSP | DSP | Communication | Programmatic Advertising | Sales Management
Varsha is an ambitious, and driven professional with a deep appreciation for the power of effective communication. She is eager to delve into the world of mass communication, making meaningful contributions and believes that effective communication is the key to success
Epic Games Announces New Pricing Structure to Use Its Unreal Engine
Fortnite developer Epic Games has announced a new pricing structure for non-game developers to use its Unreal Engine, the company’s video development tool, after hinting at the change last year. The company will charge an annual “per seat” subscription fee of $1,850. The technical jargon for “per seat” basically refers to “a person using the software.” These changes will be implemented with the release of Unreal Engine 5.4 in late April.
New Unreal Engine pricing and licensing is coming in late April 🧵
Get ALL the details in our blog: https://t.co/yidori2Bqq pic.twitter.com/zb4une6lOu
— Unreal Engine🔜GDC (@UnrealEngine) March 12, 2024
New Pricing Fee Structure
Despite being mainly recognized as a tool for game developers, Unreal Engine is frequently utilized in a wide range of industries, which is where this pricing structure comes in. Businesses that create immersive experiences, such as theme park rides, and in-car infotainment systems, like TV series and movies, will also be required to pay the $1,850 fee. At the moment, Epic receives no payment from most of these users because the final products don’t pay royalties.
Those exempt and non-exempt from the pricing fee structure
Game developers will still be required to pay a 5 percent royalty on products that generate over $1 million in lifetime gross revenue to gain access to Epic’s tools. So these changes do not affect them. Rather, non-game developers who use the Unreal Engine to create linear content like movies and TV shows, infotainment systems in cars, or immersive experiences like theme park rides that aren’t sold to consumers will have to pay the new per-seat (effectively per user) subscription fee.
Read More: Netflix May Monetize Its Games Platform with In-App Purchases and Ads
With the new pricing structure, not all non-game developers will be required to pay for the Unreal Engine. The new subscription fee will not apply to certain non-game developers. These include hobbyists, educators, and businesses with yearly gross revenue of less than $1 million. Furthermore, businesses that create Unreal Engine plug-ins are still able to use the program for free; in these situations, Epic will still receive payment through the revenue-sharing model found in its Unreal Engine Marketplace. The price adjustments will only have an impact on users using Unreal Engine 5.3 or any earlier version if they decide to update to 5.4.
Unreal Engine
These users can access the Unreal Engine itself, the Twinmotion real-time visualization tool. They can also access the RealityCapture 3D modeling software from the company by paying an annual fee. Organizations can buy separate licenses for each, though. Twinmotion will set you back $445 annually, while RealityCapture will set you back $1250.
Pay-per download strategy
Epic’s new pricing strategy follows a contentious pay-per-download strategy introduced by a rival company called Unity. This reversed the move after facing intense criticism from the gaming community. Epic claims that its new pricing strategy will only apply to games created with Unreal Engine 5.4. It is the most recent version of its software. Game developers, who are Epic’s primary customer base, will still be able to use Unreal Engine at no cost, with just a five percent software royalty to pay. In 2020, Epic increased the royalty-free threshold from $50,000 to $1 million.
With this new pricing structure, Epic Games intends to stay clear of similar mistakes. Furthermore, it looks to keep offering developers from a variety of industries a strong and adaptable engine. Next month is when the changes are scheduled to go into effect.
Read More: Epic Games Prevails in the Antitrust Trial Against Google