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

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Especially online as branded
engagements

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Muscle Milk AR packaging

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 All the consumer needs:

Decent Computer

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 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
• Adoption of Video Chat / Webcam Growth
• Flash-based AR

• Kiosk-based AR growing
• Limited scale/reach but least amount of barriers
for consumer

• Mobile AR is not yet ready for primetime

• 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 For The Fun Stuff…

Some Actual AR Demos…

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 Cannonballz
Augmented Reality Gaming

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 What’s So Special About
Augmented Reality Gaming?

1.Future of Gaming -> You Are Part Of The Game (ex.

Project Natal)

2. Ability To Tie into Social Communities for Social

Gaming Experience

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Cannonballz

Demo 36
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Cannonballz

Demo 37
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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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 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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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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“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 % 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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