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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 1 st time…

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<ul><li>It’s when the real world is “augmented” by computer data. </li></ul>

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<ul><li>AR is not Virtual Reality or </li></ul><ul><li>Second Life… </li></ul>

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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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<ul><li>Online AR currently most popular </li></ul><ul><ul><li>Largest Reach / Average Spec </li></ul></ul><ul><ul><li>Adoption of Video Chat / Webcam Fueling 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><ul><li>Highest tech possibilities </li></ul></ul></ul><ul><ul><li>Mobile AR = not yet ready for primetime </li></ul></ul><ul><ul><ul><li>Limited processing power </li></ul></ul></ul><ul><ul><ul><li>Will be focal point of AR in the future (more on that later) </li></ul></ul></ul>

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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 Shopper Augmented Reality Shopping

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Shopping Offline Is An Emotional Experience

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Online, Not So Much

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<ul><li>The “consumer experience” has made very little progress in the last 15 years </li></ul>Amazon 1990’s Amazon 2010

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

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

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

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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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ZugSTAR Augmented 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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<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>

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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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<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>Twitter.com/kobrakai </li></ul><ul><li>Facebook.com/Mhszymczyk </li></ul>

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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>

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Augmented Reality Statistics

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<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

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<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…

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<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

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<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%

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<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

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<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