This was a presentation on Augmented Reality I gave at IHAF (In House Agency Forum) in Boston on October 7, 2010. The presentation covers basics of Augmented Reality, Best Practices, Examples That Work and Demos.

1. Blurring The Lines With Augmented Reality

2. Hello! We’re Zugara Snapshot: Zugara develops Augmented Reality software and robust applications that advance the way in which people are able to interact with real time digital data. Founded: 2001 Location: Los Angeles Web: www.zugara.com Blog: www.weareorganizedchaos.com Facebook: www.facebook.com/augmentedreality YouTube: www.youtube.com/zugara Twitter: www.twitter.com/zugara

3. We’ve Worked With a Number of Brands Retail / Fashion Reebok Nike PING Chili’s KFC John Deere Automotive Toyota Lexus American Racing Volkswagen Fletcher Jones Mercedes Benz Fletcher Jones Porsche Travel Norwegian Cruise Line Southwest Airlines Entertainment Sony Pictures Television Playboy Comcast Gaming Activision Blizzard Sony PlayStation (SCEA) Square Enix 989 Sports Glu Mobile Tecmo Games Xseed Games THQ Disney Interactive Games Toys Hasbro CPG Red Bull Slim Jim Peanut Chews Consumer Electronics Sony Connect Active Media (ITV) Non-Profit / Government U.S. Air Force Legacy Foundation HopeLab Strategy Domino’s Pizza Best Buy Walmart Healthcare Blue Cross B2B Schlumberger TV Guide ESPN AT&T Mohawk Flooring Agencies GSD&M Crispin Porter & Bogusky Ad*itive The Martin Agency Rodgers/Townsend Weiden Kennedy Vitro-Robertson Hal Riney

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 first time…

7. Augmented Reality is… …when the real world is “augmented” by computer data.

8. Augmented Reality is… …the future of how we will interact with digital information. INTERACT VIEW ACCESS

9. Augmented Reality is Not… …Virtual Reality or Second Life…

10. Usually shown as reality in popular movies today…

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

14. Emerging Hype Cycle- Explained

15. 2008- Emerging Technology Hype

16. 2009- Emerging Technology Hype

17. 2010- Emerging Technology Hype

18. Emerging Technology Benefit

19. Brands Using AR

20. Where’s The ROI? Since the launch of Hotels.com Virtual Vacation micro-site using AR, bookings soared by 36% (Hotels.com, 2010) 70% of Dabs.com visitors engaged with their AR experience. Of that group 13% then purchased (utalkmarketing.com, 2010) Swiss watchmaker Tissot saw in-store sales of its watches rise by 85% (utalkmarketing.com, 2010)

21. AR + Integrated Channels Major advertising and marketing channels have started using AR.

22. Online has exploded with branded engagements.

23. Muscle Milk AR Packaging

24. Online, all the consumer needs: Modern Computer

25. Online, all the consumer needs: Modern Computer Regular Web Cam

26. Often times a marker (or glyph):

27. And sometimes just an image:

28. And now with just a face.

29. Some AR executions require:

30. This is a barrier for the consumer.

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

33. Adoption of Video Chat& Webcam Fueling Growth

35. Limited scale/reach

37. Interactive Draw-In

39. High cost of implementation

41. Limited processing power

43. Don’t Put Technology First But, is AR always the best way to connect with your consumer?

44. Put On Your “Consumer Hat” Would you hold a print magazine up to a webcam to watch a 5 minute video?

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

46. Here’s a few examples that work…

47. Online- The USPS

48. Online- The USPS

49. POP- Lego’s Kiosks

50. POP- Lego’s Kiosks

51. Mobile- iButterfly

52. Mobile- iButterfly

53. Mobile- BMW’s AR Service Glasses (Concept Video)

54. Mobile- BMW’s AR Service Glasses (Concept Video)

55. Tradeshow- GE- Visible You Body Scan

56. Tradeshow- GE- Visible You Body Scan

57. OOH- Netherlands PSA- AR Billboard

58. OOH- Netherlands PSA- AR Billboard

59. Now for the fun stuff…AR demos

60. ZugMoMotion Capture Gaming

61. Evolution of the NUI Microsoft “Kinect” Both Sony and Microsoft will be launching motion based gaming systems this year, entering a marketplace that is currently dominated by the NinendoWii. People’s awareness and comfort level with this type of interface will subsequently skyrocket as we can expect robust advertising dollars to be put behind all of the gaming systems. Sony “Move”

62. Cannonballz! Demo

63. AT&T World Cup Banner Ad Demo

64. Nesquik- Factory Game Video

65. Nesquik- Factory Game Video

66. The Webcam Social ShopperAugmented Reality ShoppingA Proprietary Application

67. The Problem Shopping offline is a social and emotionally rewarding experience for Madison. Online is a different story. Her experience is utilitarian. It’s solitary, and has remained largely unchanged since the mid 90s. THE RESULT: -- Conversion Rates Are Low -- Return Rates Are High

68. Webcam Social Shopper Demo

69. Fashionista Video

70. Fashionista Video

71. Webcam Social Shopper- 2.0 Demo

72. ZugMug Prototype Video

73. ZugSTARAugmented Reality Video Conferencing

74. History of Communication Communication Technology Has Been Rapidly Evolving Over The Years…

75. Smoke Signals

76. Carrier Pigeon

77. Telegraph

78. Telephone

79. History of Communication But Then Something Happened Which Changed Everything…

80. The First Computer

81. History of Communication Which Helped Lead The Way To Increasingly Faster Communication Advancements…

82. Text Chat

83. Mobile Phone

84. Social Media / Real Time Data

85. History of Communication Proliferation Of Real-Time Data Has Led Us To The Beginning Of The Video Chat Revolution…

86. iPhoneFaceTime

87. Skype

89. As of March 2009, 40% of video uploads on Facebook were via webcam.

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

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

93. ZugSTAR* *Patent Pending Demo

94. ZugSTAR* *Patent Pending Video

95. The Future of AR

96. Advancements In Body Recognition True Markerless Via An Average Webcam More Immersive Experience Online / Kiosk

97. Advancements in Facial Recognition Fantasy: Personalized Ads For Tom Cruise Reality: Personalized Ads In Japan Based On Gender / Age

99. GPS & Compass Accuracy

100. Processing Power Issues

102. 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 willown 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)

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

104. Thank You! Matthew Szymczyk CEO, Zugara matt@zugara.com Twitter.com/kobrakai Facebook.com/AugmentedReality

105. Appendix

106. Proprietary Technology #1 ZugMO (Zugara Motion Capture) 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.

107. Proprietary Technology #2 ZugSTAR (Zugara STreaming AR) 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. 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.

108. Proprietary Technology #3 ZugMUG (Zugara Facial Tracking) 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.

109. Augmented RealityStatistics

110. Augmented Reality Revenue 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”)

111. Worldwide Webcam Growth Rate 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)

112. Webcam Video Uploads on Facebook As of last March 2009, 40% of Facebook Video Uploads were via Webcam (Businessweek – Facebook Grows As A Video Platform)

113. Cannonballz! Game Stats Case Study (over a one year period) Unique Visitors 22,926 Average Time Spent On Site 4 min 44 sec % Of Unique Repeat Visitors 27% % Of Unique Visitors That Logged Into Facebook 14% % Of Unique Visitors That Had Webcams* 78% *Note: this number is in line with what Best Buy saw (78%) when they integrated an AR execution into a Sunday circular

114. AR Polls: Browser Plug-In 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)

115. AR Polls: Do You Have a Webcam? Do you have a webcam on any of your computers, or do you plan to have one within 6 months? (307 Votes)