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

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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.
  • Augmented Reality: From Marketing Buzzword to a Better Consumer Experience

    1. 1. Augmented Reality: From Marketing Buzzword To A Better Consumer Experience
    2. 2. SHOW OF HANDS: How many of you know what Augmented Reality is?
    3. 3. My reaction to AR for the 1 st time…
    4. 4. <ul><li>It’s when the real world is “augmented” by computer data. </li></ul>
    5. 5. <ul><li>AR is not Virtual Reality or </li></ul><ul><li>Second Life… </li></ul>
    6. 6. AR is the future of how we will interact with digital information VIEW INTERACT ACCESS
    7. 7. Usually shown as reality in popular movies today…
    8. 9. AR looks cool, but is anybody actually using it?
    9. 11. Major advertising and marketing channels have started using AR
    10. 12. Especially online as branded engagements
    11. 13. Muscle Milk AR packaging
    12. 14. All the consumer needs: Decent Computer
    13. 15. All the consumer needs: Decent Computer Regular Web Cam
    14. 16. Often times a marker (or glyph):
    15. 17. And sometimes just an image:
    16. 18. Some AR executions require:
    17. 19. This is a barrier for the consumer
    18. 20. So beyond all the hype, what’s practical for AR in the here and now?
    19. 21. <ul><li>Online AR currently most popular </li></ul><ul><ul><li>Adoption of Video Chat / Webcam Growth </li></ul></ul><ul><ul><li>Flash-based AR </li></ul></ul><ul><ul><li>Kiosk-based AR growing </li></ul></ul><ul><ul><ul><li>Limited scale/reach but least amount of barriers for consumer </li></ul></ul></ul><ul><ul><li>Mobile AR is not yet ready for primetime </li></ul></ul><ul><ul><ul><li>Will be focal point of AR in the future (more on that later) </li></ul></ul></ul>
    20. 22. But, just because you can do AR, does that mean you should?
    21. 23. What makes a good execution?
    22. 24. Put on your “Consumer Hat” Would you hold a print magazine up to a webcam to watch a 5 minute video?
    23. 25. Utility is key… Are you trying to add value for the consumer or for you?
    24. 26. Here’s a few examples that work…
    25. 27. Online - THE USPS
    26. 28. Online - THE USPS
    27. 29. OOH - PSA IN AMSTERDAM
    28. 30. OOH - PSA IN AMSTERDAM
    29. 31. POP - LEGOS’ KIOSKS
    30. 32. POP - LEGOS’ KIOSKS
    31. 33. Now For The Fun Stuff… Some Actual AR Demos…
    32. 34. Cannonballz Augmented Reality Gaming
    33. 35. <ul><li>What’s So Special About Augmented Reality Gaming? </li></ul><ul><li>Future of Gaming -> You Are Part Of The Game (ex. Project Natal) </li></ul><ul><li>2. Ability To Tie into Social Communities for Social Gaming Experience </li></ul>
    34. 36. Cannonballz Demo
    35. 37. Cannonballz Demo
    36. 38. Webcam Social Shopper Augmented Reality Shopping
    37. 39. Shopping Offline Is An Emotional Experience.
    38. 40. Online, Not So Much.
    39. 41. <ul><li>The “consumer experience” has made very little progress in the last 15 years. </li></ul>Amazon 1990’s Amazon 2010
    40. 42. But What If Consumers Could Have That “At The Rack” Experience, Online?
    41. 43. Webcam Social Shopper Demo
    42. 44. Fashionista Video
    43. 45. Fashionista Video
    44. 46. ZugSTAR Augmented Reality Video Conferencing
    45. 47. Video Conferencing & Chat Today Limited to conversation Little to no real-time interaction or collaboration
    46. 48. Video Conferencing + Augmented Reality = Ability to share and interact with content in real time
    47. 49. ZugSTAR Video
    48. 50. ZugSTAR Video
    49. 51. “ If I had asked people what they wanted, they would have said faster horses.” - Henry Ford
    50. 52. The Future Of AR
    51. 53. True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk
    52. 54. <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><ul><li>No Front Facing Camera </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>
    53. 55. Connected TVs Will Be A Powerful Medium
    54. 56. “ The best way to predict the future is to invent it.” - Alan Kay
    55. 57. <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> </li></ul><ul><li> </li></ul>
    56. 58. Market Data <ul><li>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) </li></ul><ul><ul><li>80% of Gen X and 71% of Gen Y internet users buy products online. (Pew Internet & American Life Project) </li></ul></ul><ul><li>Amount people spent on clothing online: $13.6 Bil. (US Census) </li></ul><ul><ul><li>Amount people spent on clothing in store: $7.0 Bil. </li></ul></ul><ul><li>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) </li></ul><ul><li>Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. (Jupiter Research) </li></ul><ul><li>B2B interactive marketing spending will climb to nearly $4.8 billion in 2014. (Forrester Research) </li></ul>
    57. 59. Augmented Reality Statistics
    58. 60. <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
    59. 61. <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…
    60. 62. <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
    61. 63. <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%
    62. 64. <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
    63. 65. <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