Zugara is an interactive marketing agency focused on e-commerce and augmented reality, offering services like interactive video and social media marketing. The document explores the ongoing challenges of online shopping, such as high cart abandonment rates and low conversion rates, while emphasizing the potential of augmented reality to enhance consumer experiences and bridge the gap between offline and online shopping. It also outlines various revenue models related to augmented reality, suggesting its untapped potential to improve engagement and monetization in the e-commerce landscape.

1. Building Business Models Around E-Commerce and Augmented Reality

2. Snapshot: We’re an interactive marketing agency with a passion for emerging media and technologies Services: Interactive Video, Social Media Marketing, Mobile Marketing, Website/Application Development AR Products: Webcam Social Shopper / Fashionista, Cannonballz, ZugSTAR Founded: 2001 Location: Los Angeles / New York Web: www.zugara.com Blog: www.weareorganizedchaos.com Facebook: www.facebook.com/zugara YouTube: www.youtube.com/zugara Twitter: www.twitter.com/zugara PROFILE HELLO… WE’RE ZUGARA

3. State of E-Commerce

6. Online Retail Sales Continue to Rise…

7. Web-Influenced Retail Sales Rise As Well…

8. Peers Continue To Influence Purchase Decision Eighty-three percent of online shoppers said they are interested in sharing information about their purchases with people they know 74 percent are influenced by the opinions of others in their decision to buy the product in the first place. (Manage Smarter, September 2009)

9. But What’s Missing?

10. Shopping Offline Is An Emotional and Social Experience

11. Online…Not So Much

12. The “consumer experience” has made very little progress in the last 15 years Amazon 1990’s Amazon 2010

13. Abandoned Carts 45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore)

14. Low Conversions Conversion rates are low, with the “gold standard” being between 2% and 3%

15. High Return Rates The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research)

16. What Are Brands Doing To Evolve The E-Commerce Experience?

17. E-Commerce Innovations – Social Media

18. <- Zappos Interactive Product Videos <- Sales increased from 6% to 30% when product had video associated with it E-Commerce Innovations – Interactive Video Samsung Live Video Customer / -> Product Support

19. YouTube & Video Chat Generation 36% of Skype-Skype calls included Video Chatroulette had 960,000 unique U.S. visitors in February Sources: GigaOM – Skype By The Numbers. It’s Really Big Comscore – Chatroullette Takes The College Crowd By Storm

20. Projected Webcam Growth 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)

21. This Changes Everything… Augmented Reality Experiences Through Standard Consumer Webcams

22. E-Commerce & The Augmented “Product” Experience

23. Augmented Reality Shopping – Ray-Ban

24. Augmented Reality Shopping – Ray-Ban

25. Augmented Reality Shopping - Tissot

26. Augmented Reality Shopping - Tissot

27. Augmented Reality Shopping - Fashionista

28. Augmented Reality Shopping - Fashionista

29. How Do We Use AR To Enhance The E-Commerce Experience For The Consumer?

30. Focus On Utility

31. Integrate Social Media

32. No Software Downloads

33. Building Business Models Around E-Commerce and Augmented Reality

34. Virtual Worlds Second Life Social Media Facebook, Twitter Mobile Marketing Admob, iPhone Apps Online Video Brightcove, YouTube Blog Networks / Advertising Gawker, AOL Monetization of Prior Emerging Media & Technology

35. What’s the ROI? Will Consumers Actually Use It? What Other Brands Are Using AR? What Analytics Can You Share? Questions and Challenges

36. So Where Does That Leave AR?

37. CPM ads (“cost per thousand views”; banner ads online and regular ads in print, TV and radio) CPC ads (“cost per click”; think Google ads) CPA ads (“cost per action”; pay only if the customer performs a certain action) CPT ads (“cost per transaction”; you pay only if the customer brought to you from a media sites becomes a paying customer.) Lead generation (you pay for qualified names of potential customers) Subscription revenues Affiliate revenues (think: Amazon Associates) Rental of subscriber lists Sale of information (selling data about users–aggregate/statistical or individual–to third parties) Licensing of brand (people pay to use a media brand as implied endorsement) Licensing of content (syndication) Getting the users to create something of value for free and applying any of the above to monetize it. (Like Digg or our own Reddit) Upgraded service/content ( ed: aka “freemium”) AR Technology Has Ability To Work With Multiple Revenue Models Alternate output (pdf; print/print-on-demand; customized Shared Book style; etc.) Custom services/feeds Live events “ Souvenirs”/”Merchandise” Co-branded spinoff Cost Per Install (popular with top Facebook apps who can help others get installs) Sponsorships (ads of some sort that are sold based on time, not on the number of impressions) Listings (paying a time based amount to list something like a job or real estate on your website) Paid Inclusion (a form of CPC advertising where an advertiser pays to be included in a search result) Streaming Audio Advertising (like radio advertising delivered in the audio stream after a certain amount of audio content has been delivered) Streaming Video Advertising (like streaming audio but in video) API Fees (charging third parties to access your API) Source: Wired Magazine

38. Most AR Companies Offer a Software Based Revenue Model

39. How Do We Target Areas Like E-Commerce?

40. “ Augmented Reality is a solution looking for a problem…”

41. Problem : Bridge The Gap Between Offline and Online Shopping Offline Shopping Social but time consuming Online Shopping Convenient but not social

42. Solution : Augmented Reality Webcam Social Shopper Demo At Booth #114

43. Thank You! Matthew Szymczyk CEO, Zugara [email_address] twitter.com/kobrakai facebook.com/Mhszymczyk

44. 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)