Augmented Reality: From Marketing Buzzword To A Better Consumer Experience

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

Mobile

Online

POP

Print

TV

OOH

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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 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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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 realtime 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, Zugara
matt@zugara.com Twitter.com/kobrakai Facebook.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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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 Spent On Site 4 min 36 sec

Unique Visitors 11,672

% Of Unique Repeat Visitors

25%

% Of Unique Visitors That Logged Into Facebook

% Of Unique Visitors That Had Webcams*

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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