Hello Everyone. Welcome to this month’s webinar, looking at gamification and the future of

play in our mobile, tech enabled world, where everything can become a game; impacting play in our mobile, tech enabled world, where everything can become a game; impacting

how we engage with brands, media and ourselves.

We are going to focus on three areas today:

Firstly, we are going to start with an overview of how digital gaming is evolving by taking a

look at immersive content and how this will shape the consumer approach to media and

gaming moving forward.

Then we will look at a few key consumer trends which are impacting play and customer

engagement. Things which are shaping consumer expectations across their lives as they

engage with the world around them – with implications for gaming, but ideas which can be

applied across sectors.

And lastly we will look at the consumer as Story Seeker.

1

We live in a new, immersive world that will change how consumers see their environment and behave within it. These new immersive technologies will begin having their greatest impact with behave within it. These new immersive technologies will begin having their greatest impact with gaming, before moving across sectors. And particularly impacting media. Now, there are different mediums for immersive engagement – the two main ways that you will have heard of by now, VR (Virtual Reality) and AR (augmented reality).

During the past year VR technology has finally emerged in real, tangible ways into the consumer marketplace. With brands such as Sony and Samsung paving the way for this new, completely immersive and 360 degree viewing experiences.

There has been a lot of talk already about VR, but we have really only just begun a journey into the possibilities of what the future of VR can do and how this will shape media, play and gaming over the next 5, 10 years and more. The tools of immersion building are being sharpened by relentless tech innovation. New services – from VR to holographic interfaces – collectively hint at what might lie ahead – a future where real life experiences can be convincingly imitated and where story telling brands can magically transport us into specially-crafted spaces where the user is actively present in a new or different reality

2

There has been a lot of talk already about VR, but we have really only just begun a journey

into the possibilities of what the future of VR can do and how this will shape media, play into the possibilities of what the future of VR can do and how this will shape media, play

and gaming over the next 5, 10 years and more. The tools of immersion building are being

sharpened by relentless tech innovation. New services – from VR to holographic interfaces

– collectively hint at what might lie ahead – a future where real life experiences can be

convincingly imitated and where story telling brands can magically transport us into

specially-crafted spaces where the user is actively present in a new or different reality

The full immersion ability of VR literally transports us, not just in the faux physical, but

emotionally as well, with some experiments in VR being used to generate empathy in

others.

AR, as you may know, builds on our current world, thus offering digital layering and

connection as we are mobile and on the move. An interaction that can be seamlessly

placed in the consumer’s view without additional tech hardware.

3

And while everyday us of both these technologies remains niche (with AR having been used popularly in Snapchat filters or for the Yelp Monocle feature), these technologies could upend the current ‘passive’ media Snapchat filters or for the Yelp Monocle feature), these technologies could upend the current ‘passive’ media experience. Brands are provided with a new creative outlet with which to engage consumers in product launches or exploratory or promotional videos, much the way gaming engages consumers into participation and play.

Again, VR and AR continue to currently have a heavy focus on gaming. With Oculus launching a number of compatible games and promising more by the end of 2016, along with launching 30 games to be used with its Oculus Touch controller to allow for natural gestures and movements while in game.

This type of next generation immersion holds potentially disruptive implications for many areas of life – for how we learn design, communicate, preview products and purchase – all areas in which in the future hold potential to be done completely digitally, immersed in different spaces without needing to travel from place to place. But it is perhaps the media experience which today remains largely passive, that could be most impacted by the new levels of immersion and interactivity promised here. We expect a world to arrive in which the physical and emotional distance that separates the consumer is dramatically reduced. In 5 years time, we might expect to see the arrival of media from the consumer’s POV, with multiple ways to watch and engage content and this technology expands beyond gaming.

Consumers are largely unaware of the potential of new VR / AR interfaces. But among consumers there is strong interest in VR. And although only a small proportion have actually used this technology, the appetite and curiosity is there and is the important factory, especially as more consumer applications for this technology becomes available. Gamers will be the early adopters, but soon many will see these devices as platforms to experience and play in new media experiences, communication and collaboration. Full Immersion will feel like play and fun as it takes us to new places, taking part in a variety of engaging experiences as VR allows for greater interactivity.

While VR allows for the full immersion, AR could prove to be more applicable as it is easier to apply to everyday situations in a seamless way. And again, while the stats shown here for those using AR apps is low, this is data we collected before the Pokémon craze of this year. Consumers have now experienced a tangible, fun interactive AR experience, which has cleared the path for more AR engagement, particularly for brands.

4

Here are some examples of how VR is being used in clever ways, beyond only gaming, to engage and allow the consumer to interact. Here we see a blend of television sports media engage and allow the consumer to interact. Here we see a blend of television sports media with VR viewing.

Founded in autumn 2015, San Francisco-based start-up LiveLike VR has created a virtual reality stadium, where consumers can watch sports with friends located anywhere in the world.

LiveLike utilizes existing 2D wide-angle camera technology that is already installed on many devices, enabling broadcasters to enter the VR market quickly, without having to switch to new camera technology, such as multi-camera rigs.

Users can customize their own VR suite and invite friends to watch the match together. During the game, viewers are able to send instant messages, access different views of the field and watch highlights, as well as pull up game stats, replays and player information.

5

Opening in Utah in the summer of 2016, THE VOID is the world’s first virtual reality theme

park. park.

Visitors to the park are each given a virtual reality headset, a pair of gloves that track hands

in a 3D space and a vest that can give the sensation of being touched. This combination of

virtual reality devices allows users to experience exhilarating activities, but without the

perceived risk.

The website of the experience stated: "At The Void, you will walk into new dimensions and

experience worlds without limits. From fighting intergalactic wars on alien planets, to

casting spells in the darkest of dungeons, THE VOID presents the future of entertainment."

6

Founded in 2015, LiveRoom is a free app which allows merchants to create a cloud-based virtual showroom, supporting VR headsets like Google Cardboard and Oculus Rift. virtual showroom, supporting VR headsets like Google Cardboard and Oculus Rift.

Users download the free app, scan a QR code and gain access to a 3D model of products they are considering buying. Consumers can then explore the product, virtually trying it out in their own homes, thus minimizing returns.

7

And of course. Pokémon Go. We just mentioned this, but as the most successful AR app to

date we couldn’t not include it in this webinar. date we couldn’t not include it in this webinar.

For those who haven’t yet played this game, you would have likely at least heard of it. It is a

location based augmented reality game. Players use their mobile device’s GPS capability to

locate capture and battle virtual creatures called Pokémon, who appear on the user’s

screen as if they were in the same real-world location as the player.

This game is interesting in a number of new ways – it encourages people to be active in the

real world and popularizing location based and augmented reality gaming. And local

businesses have not been shy in taking advantage of this game to lure customers in. Since

launch in July of this year, it has since become a global phenomenon and one of the most

used mobile apps, having been downloaded by more than 130 million people world wide. It

has also been heavily critized as a nuisance….

However, AR is immersing us in our current reality, rather than a separate one. There will

be a place for both in the future of gaming and in the future for brands, but within very

different contexts. The key being, we are in this new reality of immersive experiences and

the more technology improves and expands quality and ease of access, consumers will

expect greater levels of immersion and media tailored to them in these spaces from brands

and their environment.

8

The consumers relationship with media content will be forever changed by these

technologies – with an increased expectation on being ‘in’ the media, engaging with it –technologies – with an increased expectation on being ‘in’ the media, engaging with it –

from live sports broadcasts and video gaming to the ads that accompany content – all this

will feel more intimate, specially choreographed for the solitary viewer. These new

technologies will offer consumers an intimate experience with a personalized point of view.

Advertisers can harness this to offer consumers truly credible, immersive experiences.

9

With VR: the consumer’s relationship with media content – from live sports broadcasts and video

gaming to the ads that accompany content will feel more intimate, specially choreographed for the gaming to the ads that accompany content will feel more intimate, specially choreographed for the

solitary viewer. VR, is in its nature, a personal act, given it is solo focused.

Marketers have grown somewhat tired of hearing the words Big Data and personalization - like with

any other overused lingo, the power and commercial opportunity these terms hold gets lost in the

noise of less-than-perfect execution.

Will this lead to consumers expecting a personalized point of view in every media context? And

personalized messaging in these environments too?

Marketers have grown somewhat tired of hearing the words Big Data and personalization - like with

any other overused lingo, the power and commercial opportunity these terms hold gets lost in the

noise of less-than-perfect execution. Simply greeting the customer by name is already not enough.

While mass customization might once have been sufficient to help brands pique consumer interest,

tailoring a product in store will be, for many brands, a yesteryear story. The sensors and location-

sensitive targeting and communication of today, the anticipatory services of tomorrow, which are

eerily in tune with consumers’ need even before they are aware of it - they are spelling the death of

personalization and its re-birth as contextualization, a world of perfect precision.

Gaming creates a world for the consumer within their existing world. Changing the environment

with the consumer as they move through it, connecting them with friends, and tracking personal

stats and giving rewards for accomplishments – all things which can be transferred to the

consumer’s life in real time. As brands create worlds for the consumer within theirs.

10

The premise is still very potent, however. The consumer quest for quantified relevance drives data

streams to swarm, pressuring brands to abandon the cookie-cutter approach. Catering to streams to swarm, pressuring brands to abandon the cookie-cutter approach. Catering to

consumers as individuals, in everything from product design to marcoms, is now paramount. It is

meaningful, purposeful personalization, one which provides them with tangible benefits, that is

raising the bar and demanding brands move away from data-hoarding and towards generating true

insight.

The paths to success are different: for some brands, it will be the use of personal insight to help

consumers maximize by extending the right material incentives, for others it will be the tailoring of

services and products to offer ultimate convenience and perfectly tailored offerings.

Consumer understanding of their digital presence is more nuanced. With a distinction between

anonymity and privacy favoring more tailored marcoms online. Consumers will begin to look for

more meaningful advice and true individual insight.

An average of 20% of the population is willing to share their data to be given personal

recommendations from brands. A stat that has increased slightly over last year – something we

expect to continue trending upward as consumers see the benefit they receive from sharing their

data. It will remain a hesitant number while targeting is still improving, and consumers are wary of

over-notification and intrusion. But when consumers can clearly see that sharing information

benefits them (such as sharing their data to receive discounts – interest in this jumps up to a third

overall), they will be much more willing to happily share their data. However, as data sensitivities

vary between the more data sharing Millennials to more conservative Boomers, personalization

approaches will have to be even more personalized. Again, context

11

For instance, being able to haggle for personalized pricing yields far more interested

individuals across the board. In gaming and media, this can allow brands to tailor price of in individuals across the board. In gaming and media, this can allow brands to tailor price of in

game purchase based on the consumer’s behavior – recurring purchases, to their activity,

tailored to how and how often they play and how they engage with the brand. And

perhaps this means even greater flexibility with what consumers are allowed to pay with.

And this can engender loyalty when engagement can be altered to each person individually.

This is a trend which speaks to a central human need – the desire to receive personal

attention – thus, it cuts across demographics.

Consumers will return to buy, to play, to engage in order to achieve specific discounts or get

to that next level, to be able to negotiate based on their loyalty and get to the next level of

personal benefits.

12

Here is a look at few ways in which context and emotion are being applied to Play

In March 2016, gaming studio Flying Mollusk began integrating the emotional-sensing technology of Affectiva into one of their video games.

The A.I. technology software Affdex SDK is able to sense facial expressions of players in real time, making the video game Nevermind more life-like and challenging. When players show signs of emotional distress, the game increases in difficulty. Once stress levels have gone down, the game becomes easier, helping players learn how to manage their anxiety and stress.

Personalizing content through biometric readings of emotion is anew field with

experiments in how to relate this emotional understanding to create connection to the

consumer. In gaming, but also in retail contexts and educational contexts as well – what is

the best way to approach the consumer based on how they are feeling in the moment?

13

Gameband Minecraft is the first Minecraft wearable that stores game progress and

therefore allows players to carry their game everywhere they go.therefore allows players to carry their game everywhere they go.

The wristband contains 8GB of storage, cloud backup capacity and a customizable 140-LED

digital display. After the first year, users will be charged a $10 annual fee for cloud storage.

As the first wearable that is specifically aimed at a younger demographic, the wristband is

also splash-proof. This allows you to play anywhere, and also customize your gameband to

your preferences. Create and share your own animations and images and keep track of all

your worlds.

“It would have been way easier, engineering-wise, to do something more normal, but we

wanted to make it cool, appealing and something that would add more value to our

customers,” explained Now Computing's Maye Mac-Swiney.

14

Gaming and play today now too have infiltrated our everyday actions and movements –

going beyond the game box or using it as time to kill while in some downtime, to actually going beyond the game box or using it as time to kill while in some downtime, to actually

using play to change our habits and impact our lives in real ways. We now have the ability

to gamify life.

And this is what our trend challenge accepted speaks to, The gamification of EVERYTHING.

Facilitated by tracking apps, wearables and more, consumers are keen to turn the fresh

information they have about themselves and their habits into something meaningful. New

structures of motivation and reward are appearing across the consumer landscape which

exploit this data, aiding consumers in their attempts to achieve their goals.

Employing “carrot and stick” mechanisms, gamified systems attempt to create genuine

behavioral change. Rewards such as points, or simply the opportunity to share one’s

personal success online for all to see (and feel jealous of) are counterbalanced by the

threat of punishment for failure, inspiring users to play to win. Even if just against

themselves.

15

The gamification of success can assist with all manner of ambitions - skill acquisition, health

transformations, money saving, productivity. consumers take advantage of tools which help transformations, money saving, productivity. consumers take advantage of tools which help

them hack their way to victory. Those which break aspirations down into bite-size,

manageable tasks make goals more achievable, and allow users to see instant progress

(even if only on-screen). Behavior is constantly tracked, ensuring accountability.

Notifications, recommendations, and subtle nudges in the right direction motivate

consumers on their jour.ney to accomplishment. Key too is the fun factor, as dull tasks are

transformed into opportunities to triumph

And as consumers seek to add play to every area of their lives, this opens up brand

opportunities for points and rewards systems. Or badges for achievement of various levels

of engagement. Be it buying a product X number of times, or using a service – adding levels

of accomplishment can fuel the consumer’s internal competitor to continue to reach

greater levels of achievement.

16

And with the rise of mobile, the use of gaming apps to is on the rise. Here you see a

forecast of use of gaming apps over the next several years. forecast of use of gaming apps over the next several years.

Games are a mix of fun with the added bonus of convenience while on the go. And while

most will be for pure fun and distraction, challenge accepted is at its best when it can be

tracked in the moment, on the go, utilized in spare moments to get to that next step or

next level.

And so, our mobile devices are the perfect place to put these games for our betterment.

Consumers want easier, more efficient ways to better themselves. Brands can position

themselves as lifehacking partners, employing existing expertise to help consumers achieve

their goals. With the challenge accepted mindset there exist opportunities for brands to

integrate fun challenges into everyday consumer actions. Friendly competition. Offering

rewards for participation. Games mechanics will spread outwards from financial services

and the health sector to feed into ever more wide ranging sectors, becoming an established

facet of some industries. It is in these micro moments, the between moments, that this

engagement can occur and when consumers are most willing to participate.

17

And narrowing in on this trend a bit. We can see specific consumer interest in being prompted to challenge from outside sources. Unsurprisingly, engagement and interest in prompted to challenge from outside sources. Unsurprisingly, engagement and interest in highest among Millennials, but still a strong 20% among boomers.

In January 2014, Zwift launched a gamified cycling platform, which allowed consumers to race, train and challenge friends to races and sprints using their own bike from the comfort of their home or gym.

Users place their bikes on a trainer and connect it to the Zwift platform via a dongle, in order to immerse themselves in a hyper-realistic environment via a computer screen of their choice. In addition to the challenges fulfilled together with other users, the platform displays a number of metrics, ie speed, work rate, distance etc., and adapts the intensity of the training. Using a combination of both live riders or A.I. Bots, users can unlock achievements and rewards

18

You will see examples of this trend, playing for betterment, in plenty of sectors, but this is a trend which most easily exists within Health and Wellbeing , finance and education sectors trend which most easily exists within Health and Wellbeing , finance and education sectors (with apps such as qapital and duo lingo and fitness trackers using gamification style features). These challenge individuals to better their performance, attain a new skill, create better habits…for their health and their finances

Cerebrum is a virtual reality game, which aims to improve cognitive skills. Using VR, the game allows users to interact with environments, rather than simple smartphone or desktop screens, thus challenging the brain in a different and more efficient way.

The game is able to adapt, changing its parameters depending on the user’s performance, courtesy of data intelligence. By constantly changing the difficulty, the game will better challenge the brain.

And what is likely to happen across sectors is that customer loyalty platforms will arise as

branded games. Points a transferable virtual currency. Everybody likes to win.

19

When we think of all of these together : Immersive content, personalized & contextual

engagement and the gamification of our lives, what we see is the consumer seeking and engagement and the gamification of our lives, what we see is the consumer seeking and

creating Story. They want to be part of a story, they also want to draw people, brands, into

theirs.

20

When we think of all of these together : Immersive content, personalized & contextual

engagement and the gamification of our lives, what we see is the consumer seeking and engagement and the gamification of our lives, what we see is the consumer seeking and

creating Story. They want to be part of a story, they also want to draw people, brands, into

theirs.

The desire to collect stories underpins so many of our consumption choices: new

experiences are sought in order to build memories, identities, stores of social capital…

There are advancements in how we tell stories too, from visual to video to virtual reality -

the means we have for conveying narrative are becoming ever more immersive. And so we

seek more vibrant experiences to record and retell in these new mediums. Meanwhile, the

business of story-selling is thriving, with seemingly endless appetite for sequels, prequels

and endlessly serialized content, all enabled by increasingly constant, untethered access to

content as we travel, wait in line or before we go to sleep.

In this world, brands too are invited to craft stories in order to impress and attract the

attention of the story-seeking consumer. And those who can also provide experiences that

help us create our own status-boosting stories will naturally win.

Two shifts are pushing the value of stories ever higher.

21

First, rising access to those items once seen as luxuries has encouraged many to place a

greater focus on the pursuit of experiences - whether in addition to, or in place of, more greater focus on the pursuit of experiences - whether in addition to, or in place of, more

material-based forms of consumption.

Using these immersive technologies, play and gaming mechanics as VR as a medium

attempts to place people inside of stories rather than just observing them.

Brands can provide opportunities for more exploration, experience and enrichment. Brands

and media providers who can develop rich back stories for consumers to explore and

uncover or provide consumers with stories that they want to share across their networks,

will appeal.

22

Second, social media has become a living journal and portfolio of our daily experiences.

Recording and sharing what we do has turned the world into a community of storytellers. Recording and sharing what we do has turned the world into a community of storytellers.

This naturally increases the demand for experiences to fuel our online story-platforms. Real

time sharing and streaming boosts the desire for mores experiences to share. And the

means to tell our own stories will only become more numerous and seamless.

For media in particular, a story-rich world places creative pressure on the traditional sector

of story-telling. From journalism to movies, the sector is grappling with new mediums to

tell stories in more vibrant ways. As social platforms have emerged, consumers have

become more accustomed to viewing and creating short form stories in a near-constant

stream. Opportunities for accessing media channels are also multiplying, spawning

behaviors such as binging and on-the-go viewing.

23

A few examples of story being used and experimented with for engagement:

Story Studio was launched with the mission to determine how stories could be told with VR. Founded in 2014, a few months after Facebook acquired Oculus, the project brings developers and artists together to explore the new medium and discover how they can use animation software and videogame tools to make cinematic films.

As part of the process creating Henry, a short animation released at Sundance festival 2015, developers hacked Unreal Engine, the game-making software, in order to be able to create more cinematic sequences. All code is open-source, as the group hopes to inspire others to explore VR as a story-telling medium.

24

Recently, the BBC announced research into data-driven personalized viewing via a film entitled “Visual Perceptive Media.” entitled “Visual Perceptive Media.”

Users who downloaded a dedicated app, indicated their media preferences, then answered questions about their personality and demographics, viewed a personalized, data-based film narrative.

The film itself was comprised of a number of individual objects/shots that were reassembled according to the viewer’s indicated preferences. Two different viewers would not see separate versions of the film but uniquely plotted narratives, eg some scenes are re-ordered or omitted, color levels might differ, a score would meet the viewer’s music preferences.

25

So, how does this burgeoning consumer desire for immersive, personal content in a world

where we can make everything a game and create our own stories shape our consumption where we can make everything a game and create our own stories shape our consumption

today?

26

27

28