Introducing the Zee.do Brand Games, something new in the field of Involvement within Interactive Out of Home advertising. Join the revolution, played in Real Life, in urban environments. Game on!
Zee.do Brand Games
Zee.do creates Brand Games for contextual urban environments, augmenting the outdoor advertising with gamified offers through smartphone lens. It's like Adwords for the real world! It's Discovery2Deal.
Zee.do Brand Games works by connecting instant product information and brand loyalty through mobile augmented reality service/application that turns static outdoor advertisements into Brand Games, retail action points that have hidden game elements which only Zee.do Brand Games makes visible.
What is Zee.do
Zee.do Oy (Ltd) is a start-up technology company that have developed a revolutionary augmented advertising concept and solution that allows brand owners to easily create and track a completely new, gamified style of advertising in the real world. It’s like Google Adwords for the real world, it’s Zee.do Brand Games.
We create Brand Games for contextual urban environments, augmenting the Out Of Home (OOH, Outdoor) advertising with personalized offers through smartphone lens (camera;). It's a Real Life Game. It's Discovery2Deal.**
Urban environments are our gaming fields, Brands on the outdoor advertisements are the content and Consumers are the Real Life gamers.
People Discover. They See. They Do. They play. And brands increase loyalty. This hybrid advertising model brings digital (mobile) interactivity into the static outdoor advertising posters, as well as digital advertising screens and billboards. The experience is started by Discover, Consumers choose the brands they want to interact with in a virtual world, and they are rewarded with loyalty points or discounts from the brands after the Brand Game has been played or activated. The Brand Games can vary from simple point and shoot to more complex brand ambassador adventures.
The script for the pilot video
This is the script for the video shown above, which has been used at the Trade Shows without audio.
The example is done fof the first Brand Games template, Point and Shoot, where the brand selects suitable amount of different outdoor advertisements to be captures for the reward.Here's the initial script:
Person walks on the street in the center of a city, and sees an Outdoor Advertisement, with an interesting call to action on the creative. He then takes his mobile device and points it at the advert, the Zee.do service then immediately recognizes the Brand Game “hidden” inside the advert, and starts the game by giving a set of tasks for the user to play to be able to redeem a reward. At this point the user either continues to play the game (Action –business model), or decides to leave the game (Discovery –business model).
The game (in this example a game template #1; “find three posters from the same brand to receive 25% discount voucher”) will start by guiding the user with a simple tasks to be achieved. User then fulfills the tasks and gets immediately rewarded. This is the use case of the most simplified Brand Game concept, and we are planning to build several readymade templates to be adapted.
There are also possibilities to get more rewards by sharing the game results, and inviting more people to play the Brand Games (especially in the more advanced game templates). We call this “Global Village”, as the games can be shared globally, and also played simultaneously at different locations around the globe.
History of the concept
Meet the founders, and you may realize that something like Zee.do has been bubbling under their hats for quite some time, and yes, the idea has been around for a while. The founders got together in 2011, and started defining the problem of traditional outdoor advertising being too static, too one way. Added with world class Image Recognition this all could change. How. Well, there were possibilities! The company was put up, and the plans started to form. CEO was the only one having time for taking the idea forward, as COB/CFO was traveling between Finland and USA and setting up home base in New York and CTO was still busy at Nokia, finishing the operational projects. (See more background info on the founders from their LinkedIn profiles). As we were all seniors, and as we all had done things too early in our professional lives, we decided to wait, listen and further develop, and thus we have had enough time to pivot the plans few times already (first pivoting was from scanning and recognizing all kinds of signs to focus on Outdoor Advertising, second pivoting was the creation of Brand Games platform for urban environments). And we have created the Brand Games concept, played in Real Life, and concentrating on that more than on the Image Recognition/Augmented Reality technology.
We pitched the Zee.do Discovery2Deal idea for the first time at the Advertising Week, New York, in September 2012. Got some Air Time at the Huffington Post interview, and good feedback on the idea and concept.
SLUSH Helsinki pitch
Right after AdWeek 2012 we pitched on the Slush 2012 stage - and that got us good attention within the Finnish start-up ecosystem, and for example got us invited to Finnish "Dragon's Den". We got offered too little (50% of the asking), and rejected the offer. Happy we did, as we were not ready then. Now 10 months later we are. Of course we are ready to pivot the plan again if needed during the FundedByMe campaign, as well as during the 2014 business case development. However, the main thing still remains the basis of our concept, the "Discovery2Deal".
SXSW 2013 Launch
After the comments and discussions from AdWeek and SLUSH, we launched the Zee-do Brand Games prototype at the South by Southwest (SXSW) 2013 -event, marking Zee.do into history with such brands like Foursquare, Facebook, Twitter that have also launched there. (See our SXSW Press Release in Documents). We have been developing the beta -service now, based on the project plan, business plan and the support plan for Keksintösäätiö. The concept found it's core focus, the Zee.do Brand Games, and Now we are ready. And we want you - join us in Zee.do Brand Games.
This is a great opportunity to join us, as we are not funded by outsiders - and have been developing this with the Funds by the Foundation of Finnish Inventions (Keksintösäätiö). Now the time is right, and we are ready to take new people on board Zee.do. Maybe to the Board of Directors as well, but at least as Ambassadors, first believers into Real Life Brand Games.
We have been around for a pretty long time (we each have over 15 years of professional digital-/mobile career behind us, more details in the Team section and in LinkedIn profiles) and we are a true dream team for this as our talents, attitudes and personalities make a great match. We know each other from both business and pleasure (sports), and have great team spirit; high respect along with pretty rough humor.
Peter Green was one of the first Satama Interactive Dockers in 1997, doing crazy things for Nokia's "Market Making" activities at events (Real Life demos), showing and teaching target audiences to use the Mobile Services and what we called "People & Places" concepts.
Ismo Rantala is a long time Mobile Pioneer, and has been running Mobile Monday since almost the beginning, untli chapter 73. Ismo Rantala is curently living in New York, running the Nest New York accelerator for Finnish and Russian start-ups. Peter and Ismo were also co-founding Finnish Mobile Association in 2009, a launchpad for Finnish non-Nokia mobile developers, and have been friends ever since.
Tapio "Tapsa" Hämeen-Anttila is a long time Nokia and Navteq product- and operations management expert. Tapsa has done it all from the technical side, coded, written books about coding, planned multiple system architectures, managed developers and whole teams. Tapsa was working with Peter's Satama team in the past, sharing the vision of "People & Places" concepts.
While travelling around with FinnMob, Ismo and Peter had been thinking of a learning Augmented Reality browser, that somehow would provide personalized view to strange cities. At the same time Tapsa and Peter started the talks about Image Recognition based marketing platform by the Floorball rink, where Tapsa was coaching and Peter assisting for their daughters team. Not much later the three started talking about Zee.do, and about Outdoor Advertising and about Real Life games. Initial talks were already in 2010, and the real thing started in 2011. And now, few years, few pivots later, we are ready to rock the world with Zee.do Real Life Brand Games! Get to know us better in the Team section and LinkedIn. Join us!
We are the right team to tackle this Zee.do BRand Games opportunity as we have:
• right expertise - combination of web and mobile backgrounds
• proven track of innovation - products and services brought to the market
• mix of business and technology background
• seniority which often lacks in the start-ups
Our launch event at SXSW was a success - and showed us the way ahead for the Brand Games!
Opportunity and the market
So is there an opportunity and market for Brand Games? Yes. Why? Because the Outdoor Advertising is very strong, and currently pretty static. And because there is a lot of demand for innovation within this Market. Peter knows this stuff, he has been working as an adviser and consultant for Clear Channel Finland for close to two years, also worked with UK and US offices.
The rise of online search services coupled with detailed analytics of search results has changed the way advertising works forever. Advertisers now expect detailed real-time analytics about the effectiveness their advertising. And that is not only for online advertising anymore, the KPI's for the traditional advertising are getting more attention and demand. And Zee.do Brand Games, even if Digital- / Mobile service, can cross borders and hunt for budgets both from online, and offline sides.
The initial segmentation for Zee.do Brand Games will focus on outdoor advertisers that:
- Have high consumer appeal or status
- Are easily available in local retail outlets
- Have relevance in game-like interaction
Few examples of customers for Zee.do Brand Games, with examples of the highest spending advertisers and their products to be advertised within Brand Games, with example rewards once the Brand Game are played:
• Clothing/Retail: H&M Discount on clothes
• Finance: HSBC Free banking offers or specials
• Personal Care/Luxury Goods: L'Oréal, free samples and giveaways
• Food & Beverages: McDonald's/Coca-Cola, discounts on meals/drinks
• Services: France Telecom Free calls or data, online deals like Spotify for special price
• Telecom/Technology: Samsung, Early access to new devices
• Automobile: Audi special test drives (weekend trips, race tracks) with selected models
We aim to become the leading provider of hybrid advertising services to advertisers in this market by 2016.
Financial estimations and outlook 2014-2016
Our three year math looks pretty good. 2014 is the year of starting the operations. And sales, which are started at the same time with FundedByMe campaign, in November 2013. The big success will start within H2/2014 and especially in 2015 we will see a positive financials already. 2016 will be scaling it up for the full, global potential. We know that he beginning will be tough, a lot of Market Making, promoting, showing and piloting. The revenues will not reach objectives each month, and we will get frustrated. Luckily we are tough guys, been there before, and are well prepared. The Q2 and especially H2/2014 will look much better, and we are ramping up sales both in Helsinki and also in New York. Our focus areas in the beginning are Scandinavia (Helsinki, Finland as a base) and USA (New York as a base) and we will learn and fail in these markets, and then scale it up globally from these two continents and locations.
We are also planning to enter the Round A financing during 2014, with the target to raise 1M€ for the further development of the concept, platform, the Brand Games, global expansion and operations. However, this is in our plans, and not directly visible in our financial estimations.
Our Business Model is very simple (simplified in the previous pivots) - basically bringing revenues from just few streams, where we will see the amount of played games (CPA) as the most important revenue maker. However, there are some more in plans, cost per discovery (CPF equivalent) will bring us some revenues, as well as game tailoring and white labeling for brands and deeper analytics and reporting.
The business model for Zee.do Brand Games is highly scalable and comprises of 2 scalable and three project based elements:
Cost per Discovery (CPD, comparable to CPC, Cost per click) - a fee payable each time a campaign offer is discovered (scanned or captured) by a user. We want to keep the scanning price very low, as it has no real engagement with a brand (low risk for brands), and thus the cost per discovery is 0,05€. The amount of scans varies on the call to action on the outdoor advert’s creative, and we are estimating fairly high amount of scans as scanning print ads is getting more known. Even if the Brand Game would not be played immediately after capturing, the game will still be available for playing later on too (Game launcher stored in the service). Each Brand Game campaign will also have a 99€ one time set-up fee, which can bring us some nice revenues within the next three years.
Cost per Desired Outcome (CPDO, comparable to CPA, Cost per Action) - a fee payable by the advertiser on each game played via Zee.do Brand Games platform. The cost per game varies between 1-2€ per played game, and we believe that fairly large amount of scanners will play the game as well (approximately as high as 15%, if the game content and reward are interesting and relevant). This is out biggest revenue generator from the beginning, and is fully scalable model globally. We have used a cost average of 1,5€ per played game in our financials, as we believe there will be more complex Brand Games already from the beginning.
Tailored/White-Labeled Brand Games: We believe that some brands, especially the ones using Brand Games often, will require special editions and tailored approach within the Zee.do Brand Games. In the event of tailoring the game, it is budgeted separately at an hourly rate of 100€, for design and development. It is impossible to estimate the final budget at this stage as these tailored Brand Games are so much dependent on nature of the campaign, and on the involvement of the advertising agency and/or digital agency. However, we estimate that a tailored game would require 10-20 hours of work (on average), totaling 1500-3000€ per project. The CDP/CPC and CPDO/CPA models are still applicable. These tailored projects will ensure the Brand Games to be interesting and relevant.We have estimated Tailoring and White Labeling to bring us 36.000€ in 2014, 70.000€ in 2015 and 500.000€ in 2016. As this model is not scalable, there will be costs involved as well, however, we can make the game tailoring business very profitable by selecting efficient partners.
Metrics, analytics and deeper reporting: Customers often have KPI’s that require more in-depth analysis of the metrics and analytics than the automated reports from the Zee.do system. A project fee will be payable each time a deeper metrics and analysis for the campaign’s performance is needed. This report is based on the automated data, but analyzed by Zee.do personnel or trained consultants, and the work is based on project pricing on top of the CDP/CPC and CPDO/CPA models, and we are estimating these services to add approximately 1000-2000€ extra per project. us 10.000€ in 2014, 50.000€ in 2015 and 350.000€ in 2016, so we see an exponential growth within the analytics business in the future. This is not scalable work as it requires labor (analyst making reports), however we see that we can train partners do to this, globally.
In the future Zee.do Brand Games can also be fully integrated within customer’s own Mobile Marketing platform/service, either via "white-labeling" or via licence based models. There will be an add-on price to thesewhite labeling, for example with Powered by Zee.do -logo there is a 5.000€ one time extra fee, and with licensing model a 10.000€ extra fee on top of the basic business models. However, these have not been estimated to be a major revenue generator within 2014, and will only be built in in the future versions. Thus these elements have been carefully included in the 3 year financial calculations, as part of the Tailored Games row.
Nature and Use of Funds
The nature of the FundedByMe campaign equity is series B stocks, with some planned limitations in shareholder’s agreement. However, we want to serve the FundedByMe “seed fund” investors with some specialties as shareholders
• This FundedByMe investors will be able to buy the same amount of shares for the same valuation before the Round A is started ("undilution" model)
• For the FundedByMe campaign we have valuated the company at 900.000€, even if we have had valuation plans for 1.5M€, based on the core team’s experience and reputation, on the the uniqueness of the concept and on the readiness of the technology. We want to compensate the larger risk within the early stage investments, and reward the believers, our Ambassadors.
• The possible dividends 50% of the profits will be payable annually once the annual profit has been calculated. These series B stocks will be entitled to same dividend as the original stocks.
We will use these FundedByMe campaign funds to:
• Develop the production-grade service to be fully functional
• Do required sales support and marketing actions to secure reference customers in Scandinavia (Helsinki, Finland focus) and also in United States (New York focus).
• Participate into the industry events, continue the buzz creation started at SXSW event in March 2013 (see Appendix 2, the launch Press Release)
• Our aim is also to apply for the Tekes Tempo fund for market-based and agile development work (http://www.tekes.fi/en/programmes-and-services/campaigns/tempo/), and use the funds received from FundedByMe as the own capital funding base (at least 50 per cent of the costs of the a project needs to come from private funding, and the applicant company must be able to show that it has secured its portion of the project funding before submitting an application). We have already gone through the initial interview process during spring 2013, and need the funding to be able to send in the application, and we will carefully examine applying to Tekes Tempo during our FundedByMe campaign.
• We see that these received funds should last for approximately 4-6 months (project plan and actions depending on the Tekes Tempo program acceptance), and will take us to the next phase of funding, the Round A. However, our aim is to be operational from the beginning of 2014, and earn revenues already during the first year in business. We still see that we do need the external injection (Round A) into Zee.do to be able to scale the business up to be global, and to be able to stay ahead of the competition!
Long Term Ambitions As our long term ambitions are related to being recognized as one of the players that helped move the industry from to a new era of hybrid advertising, we need to be able to act fast, reach the critical mass and good success cases from the pilot customers. Once piloted in Scandinavia (Helsinki) and USA (New York) we can easily scale this up globally. This is what the Round A investments can take us later on in 2014, currently we need funds to carry through the piloting phase.
Exit Strategy Our strategy is to start the operations in full during Q1/2014, and to go for the Round A during H1/2014, at the same time building scalable and billable business models for world class clients, starting in Scandinavia and in the USA. As the financial statements show, we are estimating a good organic growth within the scalability of our business. However, there is of course other A's than the Round A, and naturally we are looking around, and making ourselves looked at, too.
We believe that within 2 years Zee.do Brand Games will have been acquired by one of the holding companies in the advertising industry such as WPP, Omnicom, Interpublic or a major technology brand, such as Google, Nokia/Microsoft. We have the potential to offer significant market advantage for their groups, and would be an attractive addition to their stable of expertise and technology. The current marketing and advertising field is going heavily within digital, and especially in mobile, and we are in the center of it all with our Hybrid Advertising -model.
Functionality and technology
The purpose of the Zee.Do Brand Games appliaction is to allow the user to play visual image point & shoot game by hunting different kind of familiar visual images from real world and get rewards based on successful captures. Brands are building point & shoot games by suing Zee.Do platform and activate players to join the game and search brand images, logos and outdoor advertisements to get rewards from founding these visuals from real life environment. Based on different kind of game models, when player has managed to found needed amount of images and these images has successfully identified, then user has possibility to get rewards, like freebies, discounts etc. from the brand.
Zee.Do Brand Games helps brands to capture needed audience, gamify their brand experience and build relationship via brand games between players and brand (or product of the brand). Brands get also visual experience from the field testing, how consumers and potential consumers will see the brand products in real life. It will help brands owners make better decisions about where they place their brand images.
Below the http://Zee.do Online Service screenshots, with the Mobile UI look&feel
The service is an installable application for mobile devices, which will be available in application stores. Once activated, user gets list of available games and is able to join to the game.
A typical usage scenario is:
1) The user will start the application
2) The application will give list of available brand games for the user to pick
3) User picks one or several brand games based on the brands he/she likes (probably) and from the surrounding environment, user starts looking for the brand visuals she/he could take a image
4) User takes photo from the brand visual he/she found and sends that to the server
5) Server will store image with location data and tries first to identify that automatically (if the taken image is similar to the brand reference image), if not, then it will be transferred for Brand for manual identification
6) User will get points and when there enough brand activities taken, the reward will be given
7) User can join multiple brand games simultaneously
Positioning Zee.do Brand Games and the competition
In order to overcome the competition and address these mega-trends we will position Zee.do as a thought-leader and market player by emphasizing:
*Focus on Outdoor advertising industry - raising our profile within the target audience to secure market leadership
*Advertising to revenue - offering a direct route to monetize advertising campaigns
*Lo-fi Augmented Reality - focusing on making it easy to start a hybrid advertising campaign
*Highlighting instant discovery over search - to show how this changes the consumer behavior and leads to more engagement
*Growing brand loyalty - through the delivery of better and better offers to “brand ambassadors” who really engage with their favorite brands
*Closed loop approach - helping to go from a static advertisement through the sale to the analytics on the desk of the advertiser that will inform their next advertising decision
We see the most competition coming from other medias, more than from another Augmented Reality players. These are often concentrating on making the printed image come to life, and do not have at all same focus that we have. Shortcut Media [http://www.shortcutmedia.com/ (link)] is one example making print interactive, and we are doing very close co-operation with them already. There are also various several "Scavenger Hunt" -style applications and services, but they all are more or less connected to "Geo Caching" (a term used when things are hidden into woods, or in urban areas to trash cans for example, and others are trying to find them).GoldRunGo is working on a photo sharing and coupon -platform, and is closest to us within the competition. Naturally there are many applications and services working on the space of enhancing the effectiveness and measurability of advertising. We are unique in our approach, and we aim to become the leading provider of hybrid advertising services to advertisers in this market by 2016.
Welcome to join Zee.do, "FundedByYou", too!
Join us in FundedByMe. Let's do it together. Loads of more information on us in the attached documents, the Business Plan document, the investor presentation, the numbers etc. And as we have no pre-made FAQ's here, give us a shout, ask the toughest questions, let's have good coffee (together if possible) as life is too short for bad coffee and static outdoor advertising. This can be fun!
Good to end with all these words put on 1slider - hope all is clear! Thank You!
Best Regards Peter, Ismo and Tapsa