Changing The Future: Emerging Technologies That Will Blow

Customers Away

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Snapshot: We’re an interactive marketing agency with a passion for emerging media and technologies

Services: Interactive Video, Social Media Marketing, Mobile Marketing, Website/Application Development

AR Products: Webcam Social Shopper / Fashionista, Cannonballz, ZugSTAR

Founded: 2001

Location: Los Angeles / New York

Web: www.zugara.com

Blog: www.weareorganizedchaos.com

Facebook: www.facebook.com/zugara

YouTube: www.youtube.com/zugara

Twitter: www.twitter.com/zugara

PROFILE

HELLO… WE’RE ZUGARA

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State of E-Commerce

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Online Retail Sales Continue to Rise…

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Web-Influenced Retail Sales Rise As Well…

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Peers Continue To Influence Purchase Decisions

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Peers Continue To Influence Purchase Decisions

83% of online shoppers said they are interested in sharing information about their purchases with people they know

(Manage Smarter, September 2009)

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Peers Continue To Influence Purchase Decisions

74% are influenced by the opinions of others in their decision to buy the product in the first place.

(Manage Smarter, September 2009)

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But What’s Missing?

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Shopping Offline Is An Emotional and Social 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

Amazon1990’s

Amazon2010

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Catalyst To Drive Purchase

45% of U.S. online shoppers abandoned shopping carts multiple times over a span of three weeks. (Paypal & ComScore)

And Continues To Face Obstacles Online

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

We Can’t All Have Apple’s Loyalty

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The average return rate for online clothing retailers is about 20% but goes as high as 50% for some. (Forrester Research)

Return To Sender…

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What Are Brands Doing To Evolve The E-Commerce Experience?

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E-Commerce Innovations – Social Media

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E-Commerce Innovations – Interactive Video

<- Zappos Interactive Product Videos

<- Sales increased from 6% to 30% when product had video associated with it

Samsung Live Video Customer & -> Product Support

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YouTube & Video Chat Generation

• 36% of Skype-Skype calls included Video

• Chatroulette had 960,000 unique U.S. visitors in February

Sources: GigaOM – Skype By The Numbers. It’s Really BigComscore – Chatroullette Takes The College Crowd By Storm

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Worldwide Projected Webcam Growth

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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What Does All This Add Up To?

A New Way For The Consumer To Interact With Products And Brands Online

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E-Commerce & The Augmented“Product” Experience

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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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Major advertising and marketing channels have started using AR

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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• Highest Spec Possibilities

• Mobile AR = not yet ready for primetime • Limited Processing Power• Will be Focal Point of AR in the future

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Augmented Reality Shopping – IKEA

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Augmented Reality Shopping – IKEA

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Augmented Reality Shopping – Ray-Ban

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Augmented Reality Shopping – Ray-Ban

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Augmented Reality Shopping - Tissot

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Augmented Reality Shopping - Tissot

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Augmented Reality Shopping - Lego

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Augmented Reality Shopping - Lego

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How Do We Use AR To

Enhance The E-Commerce

Experience For The

Consumer?

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Focus On Utility

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Integrate Social Media

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No Software Downloads

Online

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“Augmented Reality is a solution looking for a problem…”

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Problem: How Do We Bridge The Gap Between Offline and Online Shopping

Offline ShoppingSocial but time consuming

Online ShoppingConvenient but not social

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And Give Consumers That “At The Rack” Experience, Online?

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Solution: Augmented Reality

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Fashionista – Integration of AR + Real-Time Personalization

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Streaming Augmented Reality – Real-Time, Interactive Video Chat for Online Shopping

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The Future?

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Future Of Shopping Will Be Digital

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“If I had asked people what they wanted, they would have said

faster horses.”

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“If I had asked people what they wanted, they would have said

faster horses.”- Henry Ford

Thank You!Matthew Szymczyk

CEO, Zugaramatt@zugara.com

twitter.com/kobrakaifacebook.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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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