Augmented Reality: From Marketing Buzzword

To A Better Consumer Experience

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SHOW OF HANDS:

How many of you know what

Augmented Reality is?

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My reaction to AR for the 1st time…

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It’s when the real world is

“augmented” by computer

data.

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AR is not Virtual Reality

or Second Life…

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AR is the future of how we will interact with digital information

VIEW INTERACT

ACCESS

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Usually shown as reality in popular movies today…

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AR looks cool, but is anybody actually using it?

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Major advertising and marketing channels have started using AR

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Online has exploded with branded engagements

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Muscle Milk AR packaging

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Online, all the consumer needs:

Decent Computer

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Online, all the consumer needs:

Decent Computer Regular Web Cam

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Often times a marker (or glyph):

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And sometimes just an image:

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Some AR executions require:

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This is a barrier for the consumer

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So beyond all the hype, what’s practical for AR in the here and

now?

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

• Kiosk-based AR growing• Limited scale/reach but least amount of barriers for

consumer• Highest tech possibilities

• Mobile AR = not yet ready for primetime • Limited processing power• Will be focal point of AR in the future (more on that later)

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

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What makes a good

execution?

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Put on your “Consumer Hat”

Would you hold a print magazine up

to a webcam to watch a 5 minute

video?

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Utility is key…

Are you trying to add value for the consumer or for you?

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Here’s a few examples that work…

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Online - THE USPS

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Online - THE USPS

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OOH - PSA IN AMSTERDAM

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OOH - PSA IN AMSTERDAM

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POP - LEGOS’ KIOSKS

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POP - LEGOS’ KIOSKS

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Now, Let’s Talk AR + Fashion

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RAY-BAN VIEW AT HOME

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RAY-BAN VIEW AT HOME

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TISSOT RETAIL WINDOW DISPLAY

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TISSOT RETAIL WINDOW DISPLAY

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HUGO BOSS’ DRIVE TO RETAIL

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HUGO BOSS’ DRIVE TO RETAIL

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ADIDAS’ SHOES

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ADIDAS’ SHOES

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LONDON FASHIONWEEK

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LONDON FASHIONWEEK

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INTERACTIVE CLOTHING

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INTERACTIVE CLOTHING

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Now For The Fun Stuff…

Some Actual AR Demos…

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Webcam Social ShopperAugmented Reality Shopping

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Shopping Offline Is An Emotional Experience

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Online, Not So Much

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The “consumer experience” has made very little progress in the last 15 years

Amazon1990’s

Amazon2010

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

Abandoned Carts

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

Low Conversions

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

High Return Rates

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

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Webcam Social Shopper

Demo

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Fashionista

Video

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Fashionista

Video

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ZugSTARAugmented Reality Video

Conferencing

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Video Conferencing & Chat Today

Limited to conversation

Little to no real-time interaction or

collaboration

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Video Conferencing + Augmented Reality =

Ability to share and interact with content

in real time

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ZugSTAR

Video

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ZugSTAR

Video

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“If I had asked people what they wanted, they would have said

faster horses.”- Henry Ford

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The Future Of AR

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True Markerless Via An Average Webcam

More Immersive Experience Online / Kiosk

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Mobile Will Overcome:•Hardware Issues

• GPS Accuracy• Compass Accuracy• No Front Facing Camera

•Processing Power Issues•Issues Accessing API’s

To Become:•Central touchpoint for AR

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Connected TVs Will Be A Powerful Medium

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Future Of Shopping Will Be Digital

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Future Of Shopping Will Be Digital

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“The best way to predict the future is to invent it.”

- Alan Kay

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Thank You!Matthew Szymczyk

CEO, Zugaramatt@zugara.com

Twitter.com/kobrakaiFacebook.com/Mhszymczyk

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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)

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Augmented Reality

Statistics

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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

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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…

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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

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Case Study (over a one month period)

AUGMENTED REALITY STATISTICS

CANNONBALLZ AR GAME STATS

Unique Visitors11,672

% Of Unique Visitors That Logged Into

Facebook11%

Average Time Spent On Site4 min 36 sec

% Of Unique Visitors That Had Webcams*

80%

% Of Unique Repeat Visitors25%

*Note: this number is in line with what Best Buy saw (78%) when they integrated an AR execution into a Sunday circular

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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

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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