Augmented Reality: From Marketing Buzzword To A Better Consumer Experence

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This is updated AR presentation that I have been giving to brands and agencies. Focus is on what is AR, how it can/should be used, video examples and then demos (in person).

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Augmented Reality: From Marketing Buzzword To A Better Consumer Experence

  1. 1. Augmented Reality: From Marketing Buzzword To A Better Consumer Experience
  2. 2. HELLO… WE’RE ZUGARA Snapshot: We’re an emerging technology company focused on Augmented Reality Associations: Member of the AR Consortium Products: Webcam Social Shopper, ZugMO, ZugSTAR, ZugMUG Expertise: Augmented Reality; iTV Development; Gen X & Y Demographics Founded: 2001 Location: Los Angeles Based Office and Video Production Studio Web: www.zugara.com Blog: www.weareorganizedchaos.com Facebook: www.facebook.com/zugara YouTube: www.youtube.com/zugara www.zugara.com 2
  3. 3. SOME BRANDS WE’VE WORKED WITH… Retail / Fashion Entertainment CPG Healthcare Reebok Sony Pictures Television Red Bull Blue Cross Nike Playboy Slim Jim PING Comcast Peanut Chews B2B Chili’s Schlumberger KFC Gaming Consumer Electronics TV Guide John Deere Activision Blizzard Sony Connect ESPN Sony PlayStation (SCEA) Active Media (ITV) AT&T Automotive Square Enix Mohawk Flooring Toyota 989 Sports Non-Profit / Government Lexus Glu Mobile Agencies Tecmo Games U.S. Air Force American Racing Legacy Foundation GSD&M Volkswagen Xseed Games THQ HopeLab Crispin Porter & Bogusky Fletcher Jones Mercedes Benz Ad*itive Fletcher Jones Porsche Disney Interactive Games Strategy The Martin Agency Toys Domino’s Pizza Rodgers/Townsend Travel Weiden Kennedy Hasbro Best Buy Norwegian Cruise Line Walmart Vitro-Robertson Southwest Airlines Hal Riney www.zugara.com 3
  4. 4. CURRENT BRANDS USING OUR AR SOLUTIONS… www.zugara.com 4
  5. 5. SHOW OF HANDS: How many of you know what Augmented Reality is? www.zugara.com 5
  6. 6. My reaction to AR for the 1st time… www.zugara.com 6
  7. 7. It’s when the real world is “augmented” by computer data. www.zugara.com 7
  8. 8. AR is not Virtual Reality or Second Life… www.zugara.com 8
  9. 9. AR is the future of how we will interact with digital information VIEW INTERACT ACCESS www.zugara.com 9
  10. 10. Usually shown as reality in popular movies today… www.zugara.com 10
  11. 11. www.zugara.com 11
  12. 12. www.zugara.com 12
  13. 13. AR looks cool, but is anybody actually using it? www.zugara.com 13
  14. 14. Emerging Technology Hype Cycle - Explained www.zugara.com 14
  15. 15. 2008 – Emerging Technology Hype www.zugara.com 15
  16. 16. 2009 – Emerging Technology Hype www.zugara.com 16
  17. 17. 2010 – Emerging Technology Hype www.zugara.com 17
  18. 18. Emerging Technology Benefit www.zugara.com 18
  19. 19. www.zugara.com 19
  20. 20. Major advertising and marketing channels have started using AR… www.zugara.com 20
  21. 21. To Achieve Marketing Goals And Increase Sales In 2010, Swiss watchmaker Tissot embarked on an AR campaign with built-in reporting metrics and discovered that in-store sales of its watches rose by 85% on the back of its AR ads (utalkmarketing.com, 2010) www.zugara.com 21
  22. 22. To Achieve Marketing Goals And Increase Sales 70% of Dabs.com visitors (prompted by an ad in T3 magazine) chose to live the AR experience. Of that group 13% then purchased the project, compared to an industry standard website conversion of around 0.5% (utalkmarketing.com, 2010) www.zugara.com 22
  23. 23. To Achieve Marketing Goals And Increase Sales Since the launch of Hotels.com Virtual Vacation micro-site using AR, bookings soared by 36% (Hotels.com, 2010) www.zugara.com 23
  24. 24. Online has exploded with branded engagements www.zugara.com 24
  25. 25. Muscle Milk AR packaging www.zugara.com 25
  26. 26. Online, all the consumer needs: Decent Computer www.zugara.com 26
  27. 27. Online, all the consumer needs: Decent Computer Regular Web Cam www.zugara.com 27
  28. 28. Often times a marker (or glyph): www.zugara.com 28
  29. 29. And sometimes just an image: www.zugara.com 29
  30. 30. And now with just a face: www.zugara.com 30
  31. 31. Some AR executions require: www.zugara.com 31
  32. 32. This is a barrier for the consumer www.zugara.com 32
  33. 33. Online AR currently most popular • Largest Reach / Average Spec • Adoption of Video Chat & Webcam Fueling Growth • Flash-based AR www.zugara.com 33
  34. 34. Kiosk-based AR growing • Least amount of barriers • Limited scale/reach • Highest tech www.zugara.com 34
  35. 35. Interactive Billboards AR • Highest tech possibilities (i.e. Kiosk) • High cost of implementation • Public / group reach www.zugara.com 35
  36. 36. Mobile AR • Not yet ready for primetime • Limited processing power • Will be focal point of AR in the future www.zugara.com 36
  37. 37. But, just because you can do AR, does that mean you should? www.zugara.com 37
  38. 38. What makes a good execution? www.zugara.com 38
  39. 39. Put on your “Consumer Hat” Would you hold a print magazine up to a webcam to watch a 5 minute video? www.zugara.com 39
  40. 40. Utility is key… Are you trying to add value for the consumer or for you? www.zugara.com 40
  41. 41. Here’s a few examples that work… www.zugara.com 41
  42. 42. Online - THE USPS www.zugara.com 42
  43. 43. Online - THE USPS www.zugara.com 43
  44. 44. OOH - PSA IN AMSTERDAM www.zugara.com 44
  45. 45. OOH - PSA IN AMSTERDAM www.zugara.com 45
  46. 46. POP - LEGOS’ KIOSKS www.zugara.com 46
  47. 47. POP - LEGOS’ KIOSKS www.zugara.com 47
  48. 48. MOBILE - iButterfly www.zugara.com 48
  49. 49. MOBILE - iButterfly www.zugara.com 49
  50. 50. Now For The Fun Stuff… Some Actual AR Demos… www.zugara.com 50
  51. 51. ZugMO Motion Capture Technology www.zugara.com 51
  52. 52. Zimon Demo www.zugara.com 52
  53. 53. Cannonballz Demo www.zugara.com 53
  54. 54. AT&T World Cup Banner Demo www.zugara.com 54
  55. 55. Webcam Social Shopper Augmented Reality Shopping www.zugara.com 55
  56. 56. Shopping Offline Is An Emotional Experience www.zugara.com 56
  57. 57. Online, Not So Much www.zugara.com 57
  58. 58. The “consumer experience” has made very little progress in the last 15 years Amazon 1990’s Amazon 2010 www.zugara.com 58
  59. 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) www.zugara.com 59
  60. 60. We Can’t All Have Apple’s Loyalty Conversion rates are low, with the “gold standard” being between 2% and 3% www.zugara.com 60
  61. 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) www.zugara.com 61
  62. 62. But What If Consumers Could Have That “At The Rack” Experience, Online? www.zugara.com 62
  63. 63. Webcam Social Shopper Demo www.zugara.com 63
  64. 64. Fashionista Video www.zugara.com 64
  65. 65. Fashionista Video www.zugara.com 65
  66. 66. ZugMUG Prototype www.zugara.com 66
  67. 67. ZugSTAR Augmented Reality Video Conferencing www.zugara.com 67
  68. 68. Video Conferencing & Chat Today Limited to conversation Little to no real- time interaction or collaboration www.zugara.com 68
  69. 69. Video Conferencing + Augmented Reality = Ability to share and interact with content in real time www.zugara.com 69
  70. 70. ZugSTAR Video www.zugara.com 70
  71. 71. ZugSTAR Video www.zugara.com 71
  72. 72. The Future Of AR www.zugara.com 72
  73. 73. True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk www.zugara.com 73
  74. 74. Mobile Will Overcome: •Hardware Issues • GPS Accuracy • Compass Accuracy •Processing Power Issues •Issues Accessing API’s To Become: •Central touchpoint for AR www.zugara.com 74
  75. 75. Connected TVs Will Be A Powerful Medium • 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. • By 2014, over 59 million U.S. broadband households will own at least one CE device that supports TV applications. • By 2014, the U.S. installed base of CE devices that support TV applications will be 136 million units. (IN-STAT) www.zugara.com 75
  76. 76. “The best way to predict the future is to invent it.” - Alan Kay www.zugara.com 76
  77. 77. Thank You! Matthew Szymczyk CEO, Zugara matt@zugara.com Twitter.com/kobrakai Facebook.com/augmentedreality www.zugara.com
  78. 78. Proprietary Technology #1 ZugMO (Zugara Motion Capture) 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. www.zugara.com 78
  79. 79. Proprietary Technology #2 ZugSTAR (Zugara STreaming AR) 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. 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. www.zugara.com 79
  80. 80. Proprietary Technology #3 ZugMUG (Zugara Facial Tracking) 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. www.zugara.com 80
  81. 81. Augmented Reality Statistics www.zugara.com 81
  82. 82. AUGMENTED REALITY STATISTICS AUGMENTED REALITY REVENUE 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”) www.zugara.com 82
  83. 83. AUGMENTED REALITY STATISTICS WORLDWIDE WEBCAM GROWTH RATE… 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) www.zugara.com 83
  84. 84. AUGMENTED REALITY STATISTICS WEBCAM VIDEO UPLOADS ON FACEBOOK As of last March 2009, 40% of Facebook Video Uploads were via Webcam (Businessweek – Facebook Grows As A Video Platform) www.zugara.com 84
  85. 85. AUGMENTED REALITY STATISTICS CANNONBALLZ AR GAME STATS Case Study (over a one month period) Average Time % Of Unique Repeat Unique Visitors Visitors Spent On Site 11,672 25% 4 min 36 sec % Of Unique Visitors % Of Unique Visitors That Logged Into That Had Webcams* Facebook 80% 11% *Note: this number is in line with what Best Buy saw (78%) when they integrated an AR execution into a Sunday circular www.zugara.com 85
  86. 86. AUGMENTED REALITY STATISTICS AR POLLS – BROWSER PLUG-IN 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) www.zugara.com 86
  87. 87. AUGMENTED REALITY STATISTICS AR POLLS – DO YOU HAVE A WEBCAM Do you have a webcam on any of your computers, or do you plan to have one within 6 months? (307 Votes) www.zugara.com 87

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