Blurring The Lines

With Augmented Reality

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 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

Member: AR Consortium

Products: ZugMO – Motion Capture

Webcam Social Shopper – Augmented Reality E-Commerce
ZugSTAR – Streaming Augmented Reality
ZugMUG – Facial Tracking
Web: www.zugara.com
Blog: www.weareorganizedchaos.com
Facebook: www.facebook.com/augmentedreality
YouTube: www.youtube.com/zugara
Twitter: www.twitter.com/zugara

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 We’ve Worked With a Number of Brands

Retail / Fashion Entertainment Red Bull Blue Cross

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

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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 first time…

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Augmented Reality is…

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

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 Augmented Reality is…

…the future of how we will interact

with digital information.

VIEW INTERACT

ACCESS

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Augmented Reality is Not…

…Virtual
Reality or
Second Life…

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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 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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Brands Using AR

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 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)

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 AR + Integrated Channels

Major advertising and marketing

channels have started using AR.

Onlin
Mobil
OH
TV
Print
POP
ee

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Online has exploded with branded
engagements.

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Online, all the consumer needs:

Modern Computer

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Online, all the consumer needs:

Modern 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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 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

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 Kiosk-Based AR- Growing

• Least amount of barriers

• Limited scale/reach

• Highest tech

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 Interactive Installation / Event Marketing AR

• Least Amount of
Barriers

• Interactive Draw-In

• Varying Levels Of
Cost
Implementations

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 Interactive Billboards- OOH 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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Don’t Put Technology First

But, is AR
always the
best way to
connect with
your
consumer?

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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 video examples…

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Online- The USPS

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Online- The USPS

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POP- Lego’s Kiosks

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POP- Lego’s Kiosks

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POP- WWF’s Siberian Tiger Shirts

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POP- WWF’s Siberian Tiger Shirts

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Mobile- Addison Avenue FCU’s ATM Finder

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Mobile- iButterfly

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Mobile- iButterfly

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

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

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Tradeshow- GE- Visible You Body Scan

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Tradeshow- GE- Visible You Body Scan

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OOH- Netherlands PSA- AR Billboard

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OOH- Netherlands PSA- AR Billboard

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Now for the fun stuff…AR demos

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 ZugMo
Motion Capture Gaming

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 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 Ninendo Wii.

Sony “Move”
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.

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Zimon Prototype

Demo
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Cannonballz!

Demo
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 Cannonballz! Game Stats

Case Study (over a one year period)

     

Average Time % Of Unique Repeat

Unique Visitors Visitors
Spent On Site
22,926 27%
4 min 44 sec

% Of Unique Visitors
% Of Unique Visitors
That Logged Into
That Had Webcams*
Facebook
14% 78%

*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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AT&T World Cup Banner Ad

Demo
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Nesquik- Factory Game

Video
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Nesquik- Factory Game

Video
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The Webcam Social Shopper
Augmented Reality Shopping
A Proprietary Application

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 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

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Webcam Social Shopper

Demo
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Fashionista

Video
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Webcam Social Shopper- 2.0

Demo
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 ZugSTAR
Augmented Reality Video Conferencing

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 History of Communication

Communication Technology Has Been Rapidly

Evolving Over The Years…

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Smoke Signals
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Carrier Pigeon
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Telegraph
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Telephone
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 History of Communication

But Then Something Happened Which Changed

Everything…

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The First Computer
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 History of Communication

Which Helped Lead The Way To Increasingly Faster

Communication Advancements…

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Text Chat
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Mobile Phone
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 Social Media /
Real Time Data
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 History of Communication

Proliferation Of Real-Time Data Has Led Us To The

Beginning Of The Video Chat Revolution…

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iPhone FaceTime
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 Skype
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 Video Chat Stats

• Markets for webcams at $1.8 billion in 2008

are anticipated to reach $3.2 billion by 2015.

• As of March 2009, 40% of video uploads on

Facebook were via webcam.

• Gartner predicts that 200 million people will

pay for desktop videoconferencing by 2015.

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But What’s Missing?

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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*

Demo
*Patent Pending
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 ZugSTAR*

Video
*Patent Pending
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The Future of AR

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 Advancements In Body Recognition

True Markerless Via An Average Webcam

More Immersive Experience Online / Kiosk

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 Advancements in Facial Recognition

Fantasy:
Personalized
Ads For Tom
Cruise

Reality:
Personalized Ads
In Japan Based
On Gender / Age

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 Mobile Will Overcome

Current Limitations:
• Hardware Issues
• GPS & Compass Accuracy
• Processing Power Issues
• Usability

To Become:
• Central touchpoint for AR

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 Augmented Reality “Rights”

Virtual Ownership…
Who owns ‘virtual’ space in the real world?

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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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Appendix

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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 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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 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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 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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 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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 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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