Zugara is an emerging technology company specializing in augmented reality (AR) solutions for enhancing consumer experiences in marketing. With products like Zugmo and Zugstar, they aim to improve online shopping and video conferencing through interactive AR implementations, leveraging webcam technology for a more immersive user experience. The report highlights the practical applications of AR, current challenges, and projections for its growth in consumer electronics and digital marketing.

1. Augmented Reality: From Marketing Buzzword To A Better Consumer Experience

2. 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 HELLO… WE’RE ZUGARA

3. SOME BRANDS WE’VE WORKED WITH…

4. CURRENT BRANDS USING OUR AR SOLUTIONS…

5. SHOW OF HANDS: How many of you know what Augmented Reality is?

6. My reaction to AR for the 1 st time…

7. It’s when the real world is “augmented” by computer data.

8. AR is not Virtual Reality or Second Life…

9. AR is the future of how we will interact with digital information VIEW INTERACT ACCESS

10. Usually shown as reality in popular movies today…

13. AR looks cool, but is anybody actually using it?

15. Emerging Technology Hype Cycle - Explained

16. 2008 – Emerging Technology Hype

17. 2009 – Emerging Technology Hype

18. 2010 – Emerging Technology Hype

19. Emerging Technology Benefit

20. Major advertising and marketing channels have started using AR

21. Online has exploded with branded engagements

22. Muscle Milk AR packaging

23. Online, all the consumer needs: Decent Computer

24. Online, all the consumer needs: Decent Computer Regular Web Cam

25. Often times a marker (or glyph):

26. And sometimes just an image:

27. And now with just a face:

28. Some AR executions require:

29. This is a barrier for the consumer

30. Online AR currently most popular Largest Reach / Average Spec Adoption of Video Chat & Webcam Fueling Growth Flash-based AR

31. Kiosk-based AR growing Least amount of barriers Limited scale/reach Highest tech

32. Interactive Billboards AR Highest tech possibilities (i.e. Kiosk) High cost of implementation Public / group reach

33. Mobile AR Not yet ready for primetime Limited processing power Will be focal point of AR in the future

34. So beyond all the hype, what’s practical for AR in the here and now?

35. But, just because you can do AR, does that mean you should?

36. What makes a good execution?

37. Put on your “Consumer Hat” Would you hold a print magazine up to a webcam to watch a 5 minute video?

38. Utility is key… Are you trying to add value for the consumer or for you?

39. Here’s a few examples that work…

40. Online - THE USPS

41. Online - THE USPS

42. OOH - PSA IN AMSTERDAM

43. OOH - PSA IN AMSTERDAM

44. POP - LEGOS’ KIOSKS

45. POP - LEGOS’ KIOSKS

46. MOBILE - iButterfly

47. MOBILE - iButterfly

48. Now For The Fun Stuff… Some Actual AR Demos…

49. ZugMO Motion Capture Technology

50. Zimon Demo

51. Cannonballz Demo

52. AT&T World Cup Banner Demo

53. Webcam Social Shopper Augmented Reality Shopping

54. Shopping Offline Is An Emotional Experience

55. Online, Not So Much

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

57. 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)

58. We Can’t All Have Apple’s Loyalty Conversion rates are low, with the “gold standard” being between 2% and 3%

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

60. But What If Consumers Could Have That “At The Rack” Experience, Online?

61. Webcam Social Shopper Demo

62. Fashionista Video

63. Fashionista Video

64. ZugMUG Prototype

65. ZugSTAR Augmented Reality Video Conferencing

66. Video Conferencing & Chat Today Limited to conversation Little to no real-time interaction or collaboration

67. Video Conferencing + Augmented Reality = Ability to share and interact with content in real time

68. ZugSTAR Video

69. ZugSTAR Video

70. The Future Of AR

71. True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk

72. Mobile Will Overcome: Hardware Issues GPS Accuracy Compass Accuracy Processing Power Issues Issues Accessing API’s To Become: Central touchpoint for AR

73. 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)

74. “ The best way to predict the future is to invent it.” - Alan Kay

75. Thank You! Matthew Szymczyk CEO, Zugara [email_address] Twitter.com/kobrakai Facebook.com/augmentedreality

76. 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

77. 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

78. 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

79. Augmented Reality Statistics

80. 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

81. 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…

82. 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

83. 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%

84. 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

85. 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