Augmented Reality: From Marketing Buzzword To A Better Consumer Experience

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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
  • Augmented Reality: From Marketing Buzzword To A Better Consumer Experience

    1. 1. Augmented Reality: From Marketing Buzzword To A Better Consumer Experience
    2. 2. <ul><li>Snapshot: We’re an emerging technology company focused on Augmented Reality </li></ul><ul><li>Associations: Member of the AR Consortium </li></ul><ul><li>Products: Webcam Social Shopper, ZugMO, ZugSTAR, ZugMUG </li></ul><ul><li>Expertise: Augmented Reality; iTV Development; Gen X & Y Demographics </li></ul><ul><li>Founded: 2001 </li></ul><ul><li>Location: Los Angeles Based Office and Video Production Studio </li></ul><ul><li>Web: www.zugara.com </li></ul><ul><li>Blog: www.weareorganizedchaos.com </li></ul><ul><li>Facebook: www.facebook.com/zugara </li></ul><ul><li>YouTube: www.youtube.com/zugara </li></ul>HELLO… WE’RE ZUGARA
    3. 3. SOME BRANDS WE’VE WORKED WITH…
    4. 4. CURRENT BRANDS USING OUR AR SOLUTIONS…
    5. 5. SHOW OF HANDS: How many of you know what Augmented Reality is?
    6. 6. My reaction to AR for the 1 st time…
    7. 7. <ul><li>It’s when the real world is “augmented” by computer data. </li></ul>
    8. 8. <ul><li>AR is not Virtual Reality or </li></ul><ul><li>Second Life… </li></ul>
    9. 9. AR is the future of how we will interact with digital information VIEW INTERACT ACCESS
    10. 10. Usually shown as reality in popular movies today…
    11. 13. AR looks cool, but is anybody actually using it?
    12. 14. Emerging Technology Hype Cycle - Explained
    13. 15. 2008 – Emerging Technology Hype
    14. 16. 2009 – Emerging Technology Hype
    15. 17. 2010 – Emerging Technology Hype
    16. 18. Emerging Technology Benefit
    17. 20. Major advertising and marketing channels have started using AR…
    18. 21. To Achieve Marketing Goals And Increase Sales
    19. 22. To Achieve Marketing Goals And Increase Sales
    20. 23. To Achieve Marketing Goals And Increase Sales
    21. 24. Online has exploded with branded engagements
    22. 25. Muscle Milk AR packaging
    23. 26. Online, all the consumer needs: Decent Computer
    24. 27. Online, all the consumer needs: Decent Computer Regular Web Cam
    25. 28. Often times a marker (or glyph):
    26. 29. And sometimes just an image:
    27. 30. And now with just a face:
    28. 31. Some AR executions require:
    29. 32. This is a barrier for the consumer
    30. 33. <ul><li>Online AR currently most popular </li></ul><ul><ul><li>Largest Reach / Average Spec </li></ul></ul><ul><ul><li>Adoption of Video Chat & Webcam Fueling Growth </li></ul></ul><ul><ul><li>Flash-based AR </li></ul></ul>
    31. 34. <ul><ul><li>Kiosk-based AR growing </li></ul></ul><ul><ul><ul><li>Least amount of barriers </li></ul></ul></ul><ul><ul><ul><li>Limited scale/reach </li></ul></ul></ul><ul><ul><ul><li>Highest tech </li></ul></ul></ul>
    32. 35. <ul><li>Interactive Billboards AR </li></ul><ul><ul><ul><li>Highest tech possibilities (i.e. Kiosk) </li></ul></ul></ul><ul><ul><ul><li>High cost of implementation </li></ul></ul></ul><ul><ul><ul><li>Public / group reach </li></ul></ul></ul>
    33. 36. <ul><ul><li>Mobile AR </li></ul></ul><ul><ul><ul><li>Not yet ready for primetime </li></ul></ul></ul><ul><ul><ul><li>Limited processing power </li></ul></ul></ul><ul><ul><ul><li>Will be focal point of AR in the future </li></ul></ul></ul>
    34. 37. But, just because you can do AR, does that mean you should?
    35. 38. What makes a good execution?
    36. 39. Put on your “Consumer Hat” Would you hold a print magazine up to a webcam to watch a 5 minute video?
    37. 40. Utility is key… Are you trying to add value for the consumer or for you?
    38. 41. Here’s a few examples that work…
    39. 42. Online - THE USPS
    40. 43. Online - THE USPS
    41. 44. OOH - PSA IN AMSTERDAM
    42. 45. OOH - PSA IN AMSTERDAM
    43. 46. POP - LEGOS’ KIOSKS
    44. 47. POP - LEGOS’ KIOSKS
    45. 48. MOBILE - iButterfly
    46. 49. MOBILE - iButterfly
    47. 50. Now For The Fun Stuff… Some Actual AR Demos…
    48. 51. ZugMO Motion Capture Technology
    49. 52. Zimon Demo
    50. 53. Cannonballz Demo
    51. 54. AT&T World Cup Banner Demo
    52. 55. Webcam Social Shopper Augmented Reality Shopping
    53. 56. Shopping Offline Is An Emotional Experience
    54. 57. Online, Not So Much
    55. 58. <ul><li>The “consumer experience” has made very little progress in the last 15 years </li></ul>Amazon 1990’s Amazon 2010
    56. 59. And Continues To Face Obstacles Online Catalyst To Drive Purchase 45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore)
    57. 60. We Can’t All Have Apple’s Loyalty Conversion rates are low, with the “gold standard” being between 2% and 3%
    58. 61. Return to Sender The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research)
    59. 62. But What If Consumers Could Have That “At The Rack” Experience, Online?
    60. 63. Webcam Social Shopper Demo
    61. 64. Fashionista Video
    62. 65. Fashionista Video
    63. 66. ZugMUG Prototype
    64. 67. ZugSTAR Augmented Reality Video Conferencing
    65. 68. Video Conferencing & Chat Today Limited to conversation Little to no real-time interaction or collaboration
    66. 69. Video Conferencing + Augmented Reality = Ability to share and interact with content in real time
    67. 70. ZugSTAR Video
    68. 71. ZugSTAR Video
    69. 72. The Future Of AR
    70. 73. True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk
    71. 74. <ul><li>Mobile Will Overcome: </li></ul><ul><li>Hardware Issues </li></ul><ul><ul><li>GPS Accuracy </li></ul></ul><ul><ul><li>Compass Accuracy </li></ul></ul><ul><li>Processing Power Issues </li></ul><ul><li>Issues Accessing API’s </li></ul><ul><li>To Become: </li></ul><ul><li>Central touchpoint for AR </li></ul>
    72. 75. Connected TVs Will Be A Powerful Medium <ul><li>U.S. shipments of web-enabled consumer electronic (CE) devices that support TV applications will grow from 14.6 million in 2010 to 83.4 million by 2014. </li></ul><ul><li>By 2014, over 59 million U.S. broadband households will own at least one CE device that supports TV applications. </li></ul><ul><li>By 2014, the U.S. installed base of CE devices that support TV applications will be 136 million units. (IN-STAT) </li></ul>
    73. 76. “ The best way to predict the future is to invent it.” - Alan Kay
    74. 77. <ul><li>Thank You! </li></ul><ul><li>Matthew Szymczyk </li></ul><ul><li>CEO, Zugara </li></ul><ul><li>[email_address] </li></ul><ul><li>Twitter.com/kobrakai </li></ul><ul><li>Facebook.com/augmentedreality </li></ul>
    75. 78. <ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>ZugMO is a computer interface that allows people to interact with their computer via their web cam rather than their keyboard or mouse. With ZugMO a person’s movements, or motions, are captured by their web cam. This allows the person to interact with their system while several feet away. ZugMO ( Zug ara Mo tion Capture) Proprietary Technology #1
    76. 79. With ZugSTAR, Augmented Reality becomes a technology that facilitates collaboration. People no longer need to be in the same room to manipulate and discuss 3D models, as physical distance becomes less of a barrier. ZugSTAR is a web based video conferencing technology that allows people in different locations to have shared AR experiences. Like other video conferencing systems ZugSTAR allows for two-way video transmissions, but with the added functionality of allowing people to interact with one another's “augmented” experience in real time. DID YOU KNOW? Gartner IT predicts that by 2015 over 200 million people will be paying for video conferencing. ZugSTAR ( Zug ara ST reaming AR ) Proprietary Technology #2
    77. 80. <ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>ZugMUG is a piece of facial tracking software that allows the webcam to determine where a person’s face is within the video stream. With ZugMUG a person’s face can become the “marker”, subsequently allowing for Augmented Reality executions where people no longer need to hold a piece of paper up to the webcam. ZugMUG (Zugara Facial Tracking) Proprietary Technology #3
    78. 81. Augmented Reality Statistics
    79. 82. <ul><li>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 . </li></ul><ul><li>(ABI Research study “ Augmented Reality: Adding Information to Our View of the World ”) </li></ul>AUGMENTED REALITY STATISTICS AUGMENTED REALITY REVENUE
    80. 83. <ul><li>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. </li></ul><ul><li>(Wintergreen Research - Worldwide WebCam Market Shares, Strategies, and Forecasts, 2009-2015) </li></ul>AUGMENTED REALITY STATISTICS WORLDWIDE WEBCAM GROWTH RATE…
    81. 84. <ul><li>As of last March 2009, 40% of Facebook Video Uploads were via Webcam </li></ul><ul><li>(Businessweek – Facebook Grows As A Video Platform) </li></ul>AUGMENTED REALITY STATISTICS WEBCAM VIDEO UPLOADS ON FACEBOOK
    82. 85. <ul><li>Case Study (over a one month period) </li></ul><ul><li>      </li></ul>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%
    83. 86. <ul><li>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) </li></ul>AUGMENTED REALITY STATISTICS AR POLLS – BROWSER PLUG-IN
    84. 87. <ul><li>Do you have a webcam on any of your computers, or do you plan to have one within 6 months? (307 Votes) </li></ul>AUGMENTED REALITY STATISTICS AR POLLS – DO YOU HAVE A WEBCAM

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