Augmented Reality:

From Marketing Buzzword

To A Better Consumer Experience
HELLO…
WE’RE ZUGARA
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

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SOME BRANDS WE’VE WORKED WITH…

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CURRENT BRANDS USING OUR AR SOLUTIONS…

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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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Emerging Technology Hype Cycle - Explained

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2008 – Emerging Technology Hype

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2009 – Emerging Technology Hype

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2010 – Emerging Technology Hype

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Emerging Technology Benefit

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Major advertising and marketing
channels have started using AR…

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To Achieve Marketing Goals And
Increase Sales

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To Achieve Marketing Goals And
Increase Sales

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To Achieve Marketing Goals And
Increase Sales

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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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And now with just a face:

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Some AR executions require:

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This is a barrier for the consumer

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Online AR currently most popular

• Largest Reach / Average Spec

• Adoption of Video Chat

& Webcam Fueling Growth

• Flash-based AR

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 Kiosk-based AR growing

• Least amount of barriers

• Limited scale/reach

• Highest tech

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Interactive Billboards AR
• Highest tech possibilities (i.e. Kiosk)

• High cost of implementation

• Public / group reach

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 Mobile AR

• Not yet ready for primetime

• Limited processing power

• Will be focal point of AR in

the future

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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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MOBILE - iButterfly

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MOBILE - iButterfly

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Now For The Fun Stuff…

Some Actual AR Demos…

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 ZugMO
Motion Capture Technology

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Zimon

Demo
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Cannonballz

Demo
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AT&T World Cup Banner

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

Amazon
2010

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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)

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We Can’t All Have Apple’s Loyalty

Conversion rates are

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

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Return to Sender

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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ZugMUG Prototype

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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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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
•Processing Power Issues
•Issues Accessing API’s

To Become:
•Central touchpoint for AR

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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)
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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, Zugara
matt@zugara.com
Twitter.com/kobrakai
Facebook.com/augmentedreality

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 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.

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 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.

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 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.

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Augmented
Reality
Statistics

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 AUGMENTED REALITY STATISTICS

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”)

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 AUGMENTED REALITY STATISTICS

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)

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 AUGMENTED REALITY STATISTICS

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)

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 AUGMENTED REALITY STATISTICS

CANNONBALLZ AR GAME STATS

Case Study (over a one month period)

     
Average Time % Of Unique Repeat
Unique Visitors Visitors
Spent On Site
11,672 25%
4 min 36 sec

% Of Unique Visitors
% Of Unique Visitors
That Logged Into
That Had Webcams*
Facebook
11% 80%

*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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 AUGMENTED REALITY STATISTICS

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)

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 AUGMENTED REALITY STATISTICS

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)

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