Augmented Reality: From Marketing Buzzword to a Better Consumer Experience

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This is a presentation I gave on Augmented Reality: From Marketing Buzzword To A Better Consumer Experience at GDS&M/Idea City in May, 2010

This is a presentation I gave on Augmented Reality: From Marketing Buzzword To A Better Consumer Experience at GDS&M/Idea City in May, 2010

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  • Does it provide value for your consumers or your boss?
  • Does it provide value for your consumers or your boss?
  • It’s utilitarian and provides no emotional satisfaction. Conversion rates are low, with the “gold standard” being between 2% and 3%. Cart abandon rates are high. 45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore) The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research) "If I'd asked people what they wanted, they would have said a faster horse .“ – henry ford
  • Not saying that we shouldn’t listen to our consumers… just saying that we should be leading them and innovating for them.

Transcript

  • 1. Augmented Reality: From Marketing Buzzword To A Better Consumer Experience
  • 2. SHOW OF HANDS: How many of you know what Augmented Reality is?
  • 3. My reaction to AR for the 1 st time…
  • 4.
    • It’s when the real world is “augmented” by computer data.
  • 5.
    • AR is not Virtual Reality or
    • Second Life…
  • 6. AR is the future of how we will interact with digital information VIEW INTERACT ACCESS
  • 7. Usually shown as reality in popular movies today…
  • 8.  
  • 9. AR looks cool, but is anybody actually using it?
  • 10.  
  • 11. Major advertising and marketing channels have started using AR
  • 12. Especially online as branded engagements
  • 13. Muscle Milk AR packaging
  • 14. All the consumer needs: Decent Computer
  • 15. All the consumer needs: Decent Computer Regular Web Cam
  • 16. Often times a marker (or glyph):
  • 17. And sometimes just an image:
  • 18. Some AR executions require:
  • 19. This is a barrier for the consumer
  • 20. So beyond all the hype, what’s practical for AR in the here and now?
  • 21.
    • Online AR currently most popular
      • Adoption of Video Chat / Webcam Growth
      • Flash-based AR
      • Kiosk-based AR growing
        • Limited scale/reach but least amount of barriers for consumer
      • Mobile AR is not yet ready for primetime
        • Will be focal point of AR in the future (more on that later)
  • 22. But, just because you can do AR, does that mean you should?
  • 23. What makes a good execution?
  • 24. Put on your “Consumer Hat” Would you hold a print magazine up to a webcam to watch a 5 minute video?
  • 25. Utility is key… Are you trying to add value for the consumer or for you?
  • 26. Here’s a few examples that work…
  • 27. Online - THE USPS
  • 28. Online - THE USPS
  • 29. OOH - PSA IN AMSTERDAM
  • 30. OOH - PSA IN AMSTERDAM
  • 31. POP - LEGOS’ KIOSKS
  • 32. POP - LEGOS’ KIOSKS
  • 33. Now For The Fun Stuff… Some Actual AR Demos…
  • 34. Cannonballz Augmented Reality Gaming
  • 35.
    • What’s So Special About Augmented Reality Gaming?
    • Future of Gaming -> You Are Part Of The Game (ex. Project Natal)
    • 2. Ability To Tie into Social Communities for Social Gaming Experience
  • 36. Cannonballz Demo
  • 37. Cannonballz Demo
  • 38. Webcam Social Shopper Augmented Reality Shopping
  • 39. Shopping Offline Is An Emotional Experience.
  • 40. Online, Not So Much.
  • 41.
    • The “consumer experience” has made very little progress in the last 15 years.
    Amazon 1990’s Amazon 2010
  • 42. But What If Consumers Could Have That “At The Rack” Experience, Online?
  • 43. Webcam Social Shopper Demo
  • 44. Fashionista Video
  • 45. Fashionista Video
  • 46. ZugSTAR Augmented Reality Video Conferencing
  • 47. Video Conferencing & Chat Today Limited to conversation Little to no real-time interaction or collaboration
  • 48. Video Conferencing + Augmented Reality = Ability to share and interact with content in real time
  • 49. ZugSTAR Video
  • 50. ZugSTAR Video
  • 51. “ If I had asked people what they wanted, they would have said faster horses.” - Henry Ford
  • 52. The Future Of AR
  • 53. True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk
  • 54.
    • Mobile Will Overcome:
    • Hardware Issues
      • GPS Accuracy
      • Compass Accuracy
      • No Front Facing Camera
    • Processing Power Issues
    • Issues Accessing API’s
    • To Become:
    • Central touchpoint for AR
  • 55. Connected TVs Will Be A Powerful Medium
  • 56. “ The best way to predict the future is to invent it.” - Alan Kay
  • 57.
    • Thank You!
    • Matthew Szymczyk
    • CEO, Zugara
    • [email_address]
    • Twitter.com/kobrakai
    • Facebook.com/Mhszymczyk
  • 58. Market Data
    • In 2009, 154 million people in the U.S. bought something online, or 67% of the online population (4% more than in 2008). (Forrester Research)
      • 80% of Gen X and 71% of Gen Y internet users buy products online. (Pew Internet & American Life Project)
    • Amount people spent on clothing online: $13.6 Bil. (US Census)
      • Amount people spent on clothing in store: $7.0 Bil.
    • 83% of online shoppers said they are interested in sharing information about their purchases with people they know, while 74% are influenced by the opinions of others in their decision to buy the product in the first place. (Manage Smarter)
    • Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. (Jupiter Research)
    • B2B interactive marketing spending will climb to nearly $4.8 billion in 2014. (Forrester Research)
  • 59. Augmented Reality Statistics
  • 60.
    • Handheld platforms will transform the Augmented Reality ecosystem, with revenue associated with Augmented Reality growing from about $6 million in 2008 to more than $350 million in 2014 .
    • (ABI Research study “ Augmented Reality: Adding Information to Our View of the World ”)
    AUGMENTED REALITY STATISTICS AUGMENTED REALITY REVENUE
  • 61.
    • Markets for webcams at $1.8 billion in 2008 are anticipated to reach $3.2 billion by 2015 , growing in response to decreases in unit costs and increases.
    • (Wintergreen Research - Worldwide WebCam Market Shares, Strategies, and Forecasts, 2009-2015)
    AUGMENTED REALITY STATISTICS WORLDWIDE WEBCAM GROWTH RATE…
  • 62.
    • As of last March 2009, 40% of Facebook Video Uploads were via Webcam
    • (Businessweek – Facebook Grows As A Video Platform)
    AUGMENTED REALITY STATISTICS WEBCAM VIDEO UPLOADS ON FACEBOOK
  • 63.
    • Case Study (over a one month period)
    •      
    AUGMENTED REALITY STATISTICS CANNONBALLZ AR GAME STATS *Note: this number is in line with what Best Buy saw (78%) when they integrated an AR execution into a Sunday circular Unique Visitors 11,672 % Of Unique Visitors That Logged Into Facebook 11% Average Time Spent On Site 4 min 36 sec % Of Unique Visitors That Had Webcams* 80% % Of Unique Repeat Visitors 25%
  • 64.
    • Would you view an online Augmented Reality experience if it required you to download and install an Internet Browser plug-in other than Flash? (256 Votes)
    AUGMENTED REALITY STATISTICS AR POLLS – BROWSER PLUG-IN
  • 65.
    • Do you have a webcam on any of your computers, or do you plan to have one within 6 months? (307 Votes)
    AUGMENTED REALITY STATISTICS AR POLLS – DO YOU HAVE A WEBCAM