Photo - ARtist UG (haftungsbeschraenkt)
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ARtist UG (haftungsbeschraenkt)

We enable user generated and interactive Augmented Reality

Germany
Market: Internet and IT, Information and media, Entertainment, Virtual and Augmented Reality, Mobile applications
Stage of the project: Prototype or product is ready

Date of last change: 05.07.2020
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Idea

We are offering the mobile App AR.fx that is capable of creating, geo-placing, viewing, sharing and interacting with 3D content in AR using smartphones. It enables users to generate their own AR content and to interact with that provided by B2B. AR.fx incorporates gamification elements and multiplayer capability along with AR Scene-Editor. On a global map users can explore and physically interact with AR content of interest. Using our Dashboard B2B can promote their products and services.

Current Status

AR.fx has been released in Open Alpha to 45 countries for Android and iOS since December 2019. Around 100 million Objects-, and Blueprints along with Treasure Spheres have been placed at metropolitan regions, whereby Austria, Germany and Switzerland have been covered completely. Further achievements are listed below:

- Received EUR 50k grant from European Space Agency (ESA)/Federal state of Baden Wuerttemberg, Germany
- Completed ESA Business Incubation successfully by the End of July 2019
- ESA Kickstart grant of EUR 60k awarded
- 3rd place at ESNC - BW 2018 (European Satellite Navigation Competition)
- Approved to INVEST Program of BMWi Germany
- First pilot B2B clients on-boarded
- First Indie Game Studios agreed to collaborate
- Close deal with an Online shop for furniture and home decoration

Market

The target user base is of ca 2.5 billion in 2020, who own AR smartphones. The AR market we target is expected to grow rapidly (valued at $1.14 bn and is expected to grow by a CAGR of 40, 29% to $60.55 bn in 2023). Gaming (67%) is dominating, but educational apps, retail and tourism are on the rise. The typical AR user that has been identified is male and between 25 and 34 years old and has an income of ca. EUR 75k. Still, 46% of users are female.
Our primary B2C target group, especially for the gaming and AR retail sector, is the 16-44 year olds (m/f/d). According to the GlobWebIndex, this age group is the most enthusiastic about AR/VR applications with 70-75%.

The major business opportunities for AR.fx are location based and highly targeted product placements, branding and advertisement, gamification & entertainment, user- and B2B- generated AR content, education sector as well as tourism, culture and heritage.

Problem or Opportunity

Currently there are 2.5+ bn AR smartphones available, but less than 20% are using it for AR due to lack of content. With AR.fx users can generate their own 3D objects and scenes in AR.
A Key problem of our B2B is the decreasing attention span. One of our business innovations is to increase the attention span of the audience for branding, product placements and advertisement in AR at POIs with AR.fx and to engage a highly targeted audience to physically interact with AR content of interest.

With our mobile application and platform AR.fx we solve the lack of AR content. Users can generate their own 3D objects and scenes in AR.
For B2B we provide a platform for product placement and advertisement in AR at POIs that can increase the attention span, when users interact with. A Key problem of our B2B is the decreasing attention span. Classic advertisement methods are suffering. One of our business innovations is to increase the attention span of the audience for branding, product placements and advertisement in AR at POIs with AR.fx and to engage a highly targeted audience to physically interact with AR objects of interests.

Solution (product or service)

We are offering sophisticated methods for our users to interact in AR, which are unique and never seen before. E.g. users can create 3D Objects in AR by connecting line-dots of a blueprint. With the integrated AR Scene Editor, users can compose and share unique AR worlds using (multiple) 3D Objects from their collection.
B2B can distribute their products and services in AR within various verticals (Gaming, Travel, AR Shopping, Education, etc.) and benefit from cross marketing effects.

With our mobile application and platform AR.fx we solve the lack of AR content. Users can generate their own 3D objects and scenes in AR.
For B2B we provide a platform for product placement and advertisement in AR at POIs that can increase the attention span, when users interact with. A Key problem of our B2B is the decreasing attention span. Classic advertisement methods are suffering. One of our business innovations is to increase the attention span of the audience for branding, product placements and advertisement in AR at POIs with AR.fx and to engage a highly targeted audience to physically interact with AR objects of interests.

Competitors

Currently few AR based Applications in Gaming, Shopping etc. are in the market, but we see WebAR Technology based applications as the biggest competition towards B2C (​https://www.rooom.com, ​https://ar-link.net​ ,
https://www.viewar.com/​ , LEGO, SpartAR)
A wide range of AR/VR advertising companies are offering solutions to B2B customers. Traditional industry players, on the other hand, will have an advantage through experience in monetizing online advertising space and existing clients. The strongest competitors are the Big Players: Google (including Niantic), Facebook, Snap, and Microsoft.

Advantages or differentiators

On B2C we differentiate from our competitors by offering sophisticated methods and tools for our users to interact in AR, which are unique and never seen before. For example users can create 3D Objects by physically moving the smartphone and connecting predefined line-dots of a blueprint. With the integrated AR Scene Editor, users can compose and share unique AR worlds using (multiple) 3D Objects from their collection. A wide range of editing features is available for this purpose. They can do so individually or with their friends in multiplayer mode.
One of our business innovations is to increase the attention span of the audience for branding and product placements with AR.fx and to engage a highly targeted audience to physically interact with AR objects of interests.
Furthermore, we offer our B2B to distribute all over the world their product and services converted into AR within various verticals (Gaming, Entertainment, Travel, AR Shopping, Education, etc.). The B2B 3D content can be incorporated into user's creations and AR scenes, shared, as well as purchased with one click from linked shops (e.g. furniture). B2B benefits from cross marketing effects such as accessing different user segmentation of various verticals we address.

Finance

The major business opportunities for AR.fx are location based and highly targeted product placements, branding and advertisement. The verticals we target initially are gaming & entertainment, AR-shopping and travel.

The revue streams are designed to be of multi-sources:

B2C:

In-App Advertisement and -Purchases

Treasure Spheres: Users can find treasure spheres distributed on the map (location and interest based) and claim rewards such as AR Coins and incentives provided by B2B. Those incentives could be real-world promotion items, game-keys, coupons, discounts etc., in order to attract more B2C customers.

Native ads: On feeds-screen native ads are displayed in a way that users will not be annoyed (e.g. an ads at every 10th feed post.)

Marketplace for user-generated AR content: Users should be able to trade rare AR items on the marketplace.


B2B:

Location based marketing campaigns in AR
Advertisement, branding and product placement at POIs in AR
Affiliation & premium content distribution, leads generation
Art as a Service (AaaS)

Business model

ARtist's primary offerings are location-based and highly targeted advertising in AR (in the long term also the development of its own ad network is anticipated), In-App purchases (e.g. premium content), and affiliation (e.g. revenue sharing with partner companies who market their products and services in AR.fx).
In addition, revenues are to be generated through Art as a Service (AaaS), whereby 3D models are created on behalf of customers and marketed in AR.fx as location-based campaigns.


Location-based and highly targeted Advertising at Point of Interest (POIs) in AR:

Due to the application’s structure and the underlying Augmented Reality, a whole new advertisement market can be created. Due to the application‘s localization and networking capabilities, advertisements can be displayed everywhere and anywhere based on the user's location. Furthermore, Sub-Spaces have been introduced, whereby a Sub-Space could be gaming, tourism, culture & heritage, entertainment, education, celebrities etc. Each Sub-Space is a filterable AR layer with related 3D placements, so that same geo-coordinates, e.g. POIs can be used for different content and product placements.
Users can discover the campaign placements at POIs on site (depending on their interests), view in AR, collect and interact with them (e.g. via interaction buttons). Furthermore, users can draw the respective Objects/Blueprints, include into their own AR Scenes, share them within their social networks and so on. AR.fx hence allows users to engage and identify with the product/service by keeping them in the app for a long time.

In-App Purchases, Affiliation/ Revenue Sharing

Another anticipated revenue model is the distribution of premium content via in-app purchase, e.g. through "call-to-action" buttons. This means that game studios or AR online shops can offer their premium/exclusive game characters and products as 3D Models and Blueprints purchasable in AR.fx, or even do merchandising and pay a commission per sale to ARtist. Furthermore, we will open up AR.fx campaign manager to Ads and Media Agencies, so that they can utilize AR.fx to serve their clients.

The following pricing mechanisms are designed for location-based advertising in AR and In-App purchase:

Pay per View/Claim: Each of the placed AR objects can be tracked in terms of user views and interactions and can be charged per view (similar to CPC)
Pay per Installation: B2B customers pay per installed App. The Object placements and promotions by ARtist are carried out at lucrative POIs (based on the KPIs) and each installation or purchase to be invoiced
Pay per Placement (flat-rate): Here the B2B customer pays a flat-rate depending on Objects and POIs for a defined period of time (CPM model); referred to Sample calculation for Pay per Placements in Fig. 26
In-App Purchases, Affiliation/ Revenue Sharing: Premium content and merchandising via In-App purchase on a revenue sharing basis

Money will be spent on

- Product development
- Marketing
- B2B and B2C acquisition

Offer for investor

To be negotiated

Team or Management

Risks

- Growing competition
- diverse platforms to be addressed
- Pontential market neglection

Incubation/Acceleration programs accomplishment

Participated at European Space Agency Business Incubation Center (ESA BIC) in Reutlingen, Germany; from August 2018 - July 2019.

Won the competition and other awards

3rd place at ESNC - BW 2018 (European Satellite Navigation Competition)

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video