This is an op-ed written by Matthew Szymczyk, CEO of Zugara, that was originally published in AdAge on February 28, 2011. The entire article can be found here. You can also read the full article below:
Augmented reality — that’s just one of the latest marketing catchphrases, right?
The traditional definition of augmented reality, or AR, refers to the overlay of digital information on a live video feed. If you’ve watched an NFL game on TV and have seen the superimposed 10 yard, first-down line, that’s AR. AR has also started to encompass other areas such as gestural control and motion capture. Microsoft’s Kinect is one example of gestural control where you see yourself in the actual game on TV and interact with it by movement and gestures.
What isn’t augmented reality?
AR is not virtual reality or Second Life 2.0. AR at its most basic form is using digital to enhance your real-world user interfaces and experiences. All you’re doing is “augmenting” your viewable surroundings with digital information.
What brands are using AR?
While many brands such as GE, Nestle, Lego and others have been using AR, there are certain brands and products for which AR might not be a good fit. Don’t force AR onto your product if it doesn’t seem like a natural fit, and think through the consumer experience.
What’s the ROI of AR?
Don’t count on measuring its “click-through rate.” As with any emerging technology, there’s the question of ROI and how to measure it, and you’re likely to have different measures depending on the program and the goals of the program. For example, AR can be used to enhance product training, and you might measure its success by whether it increases user satisfaction with the product. For marketing, there are already signs that AR has increased awareness and engagement for certain product campaigns. In addition, AR can be used to increase purchase conversions in e-commerce and drive purchase intent at retail.
How does AR fit into my digital planning?
When using any digital technology or media, it’s important to develop your digital strategy first. Why do you want to use AR? What are your objectives? Are you planning for engagement, awareness, etc.? If you’re unclear on how AR can be used effectively, contact an AR company or specialist that can help you develop a proper strategy. Using AR solely for a PR play won’t work anymore.
So is it just a fad or here to stay?
Like every emerging medium, there is hype around a new technology that often outpaces the current technology’s limitations. Mobile AR is one area right now where the limitations of mobile technology don’t match brand or consumer expectations for mobile AR. Forrester recently released a report on the mobile-AR ecosystem and uncovered similar findings — that mobile AR isn’t ready yet. It also found that web- and kiosk-based AR are much more mature and more practical right now for a brand’s AR initiatives. Naturally, as a company that specializes in AR, we believe AR is here to stay.
Wait, what’s with the different kinds of AR — web, kiosk and mobile?
Yes, there are three types:
WEB-BASED AR
uses a consumer’s PC and webcam to offer an enhanced experience often via a marker, image or through motion capture.
Examples:GE’s Plug Into the Smart Grid is a great example of web-based augmented reality. This online execution allowed users to hold up a piece of paper — called a “marker” — to their computer’s webcam and see themselves holding an animated model of a smart grid on the screen. There’s also the Fashionista dressing-room app we created for online fashion boutique Tobi, which lets you “virtually” try on clothing items using your webcam and a marker on a printed piece of paper. Once you’ve “tried on” the outfit you want to see yourself in, you can send the image to friends via social media and ask them for tier opinion.
Pros: It delivers the greatest global reach for AR, especially when using Flash, as it doesn’t use a plug-in or download, it’s generally lower cost, and social media can easily be integrated.
Cons: You have to develop for minimum PC requirements, and it requires the user to have a webcam.
KIOSK-BASED AR
is similar to web-based AR, but often runs more powerful AR applications using 3D or facial tracking.
Example: At a store in downtown Orlando, shoppers can hold up a boxed Lego set to an in-store kiosk, and the kiosk will show an image of them holding the kit as it looks when put together.
Pros: Kiosk AR can leverage multiple processors –more powerful than the typical at-home PC — for multiple uses, such as out-of-home or point-of-purchase marketing. It also doesn’t require a user to create a marker or have a webcam.
Cons: Higher cost, fixed location, usually no internet access.
MOBILE AR
uses the viewfinder on a mobile phone to show enhanced digital information in your surroundings.
Examples: The iButterfly app, created in Japan by Dentsu, lets you track and find digital butterflies using your iPhone GPS and camera. Hold your iPhone camera up at appointed spots and when you look at your surroundings through the camera, you’ll see animated butterflies flapping by. Each iButterfly contains coupons for nearby businesses. In another example, World Lens lets you use your smartphone to translate printed words. Hold the camera phone up to a sign in Spanish and it’ll translate it to English.
Pros: Mobile AR can leverage location, and smartphone adoption is rising, increasing its potential reach.
Cons: You’re dealing with a fragmented development environment, as some smartphones run on the iOS platform, others on Android and still others on Windows or Blackberry; and limited processing power and battery life can be restrictive. Additionally, there can be user-interface/user-experience issues and the hype around this type of AR is out of control.
Where can I find AR companies?
Though AR is a relatively new technology, some companies have been building software and innovating in the space for awhile. There’s even an AR Consortium that lists many of the players in the industry.
In addition, there’s an annual AR event called ARE that’s held in Santa Clara, Calif., and features many, if not all, of the major AR companies. It specifically focuses on business, marketing and technology tracks and issues at hand for the AR industry. There is also an exhibit hall where AR companies show off their latest technology.
What are some AR words and phrases I need to know?
Facial tracking: Webcam can track the face for object placement and orientation. Facial Recognition: Webcam can detect the face and in some cases, recognize the user (Gender, age, etc.) Marker: Black-and-white image that resembles a QR code. This is used so the webcam can recognize size and positioning of the asset in relation to the webcam. Image recognition: Using an image (i.e., packaging or logo) that the webcam and software can recognize and identify in lieu of the marker. Example: Google Goggles. Motion capture: The webcam can detect areas where movement occurs. Gestural control: More advanced than motion capture where the system can identify the body and gestures. Example: Microsoft Kinect. Natural user interface (NUI): Term used to identify the evolution of the mouse/keyboard input to natural gestures and interaction with a computer. Think “Minority Report” and “Iron Man 2.” And with 8 million Kinects sold in two months, Generation Y and Z are now starting to interact with computers through the NUI. As some of us old geezers (Gen X and baby boomers) are just getting accustomed to touchpad interfaces, the younger generations are already getting primed on the next human-to-computer interaction evolution.
So, Juniper Research just issued a report that “predicts global revenues from (mobile) augmented reality applications and services will approach $1.5 billion by 2015.” And I wanted to see what you guys thought about that number… Does it sound accurate? Is it way off (in either direction)? What’s going to drive that revenue? I’d love to hear your thoughts.
For the record, my official answer is: WTF??? By 2015? How?
That is a gigantic number, and I’m not sure how it’s achievable given the issues mobile AR has and will have for the next few years… I’ve tried to raise industry awareness about the (current) issues with mobile AR by writing about them in this blog ad nauseum. Those issues include: inaccurate civilian grade GPS; fragmented development environment (iOS, Android); inadequate processing power of handsets; battery life; and, subpar/unnatural consumer experience (to name a few). If you want more details, you can read one of our previous posts by clicking here. In my mind, these issues will delay consumer adoption/usage and serious development efforts.
To put $1.5 billion in context, Mobile has been blowing up in the States the past few years and according to eMarketer we’re finally going to surpass $1 Billion in mobile ad spending for the first time in 2011… Oh, and the largest segment of that ad spend? Text message marketing.
Obviously the app market is a crowded and difficult one to succeed in but I came across a quote yesterday that I think is pretty applicable and telling (especially about consumer usage habits): there is a 5% retention rate on free apps after 30 days. So where is this $1.5 billion going to come from? If people don’t even use free apps after 30 days, do you think the “average person” would pay an upfront fee for any of these apps? I don’t…
Now, I’d love to hear your thoughts below, or on Twitter: @jack_benoff
The blog post below initially ran on AdAge last Friday, January 28th and you can view the actual post here. It’s no secret how we feel about the current crop of Mobile AR apps being overhyped to the point they’ll damage credibility for the entire AR industry, but read below and let us know your own thoughts on whether or not you agree…at least we’re content knowing Forrester Research shares the same opinion…
We get quite a few inquiries involving mobile AR and pass on most of them. Why? For starters, we don’t feel like we should waste potential clients money. There’s a gaping gulf between the practicality of current mobile AR and what’s shown in marketing driven or concept videos. A great example of this is World Lens. If you haven’t yet checked out this AR tech it’s a concept that is game changing – it will literally translate Spanish text into English text in your mobile viewfinder when you load the app and point your viewfinder at text. But there’s a problem when you view the promise of the video and actually try the current execution. I’ve tried the app and though the potential is unlimited for this technology, the experience is subpar. I’ve included the marketing video for World Lens below and I suggest you watch that and then read this review from ReadWriteWeb which did a more formal review of the app itself. In short, the execution doesn’t live up to the concept video and current user reviews on iTunes reinforce that.
Though World Lens is the type of mobile AR app that promises utility and will likely be game changing once the kinks are worked out, it’s the current crop of “iPhone Lite AR” mobile AR apps that have fueled the level of hype for AR that will be hard to overcome. Though iTunes created an Augmented Reality section for these types of apps, most of them aren’t even true AR. Most of them involve using a stationary image you place via your viewfinder on an object or use the viewfinder itself as the backdrop for the app. The Star Wars Falcon Gunner game is a great example of this. Is it true AR? Not really. Though this is a fun game, when you use the AR option, it’s basically removing the Death Star in-game background and replacing it with your real world viewfinder background. There’s no additional interaction from the game with the real world background so it really is “Lite AR” in that the AR function itself doesn’t provide any additional gameplay value or interaction. Most of the iPhone Mobile AR games also use this same approach and it’s not helping to advance the mobile AR field one bit. In fact it’s hurting the field and leading to underwhelming consumer expectations of mobile AR.
A recent research report from Forrester sums up what we’ve been saying for the last 2 years – that mobile augmented reality is very overhyped and not ready for primetime. We’ve blogged numerous times about issues and limitations of mobile AR – processing power, battery life, development fragmentation (iOS / Android) and so on. Though everybody in the AR industry will agree that mobile AR will one day become the focal point of all AR, it’s not there yet and won’t be for another few years. We’ll likely start seeing some innovation in the mobile AR area in 2011 but it likely won’t be until 2013 or so that mobile AR really starts reaching its potential.
However, there are some mobile AR executions that do show potential and where the mobile AR field is headed. Layar is the most prominent mobile AR developer and they’re doing some interesting things with their platform mostly as it pertains to enhanced information. And I’m referring to executions like showing where the Berlin Wall used to be when visiting Germany vs. overlaying directional information in the mobile viewfinder which is still inaccurate and limited to current mobile handset technology. Two of my other favorite mobile AR apps include Sunseeker and iButterfly and show that utility based AR applications can be developed with current technology.
The press often assumes that all of AR is mobile AR. But it’s not. As even Forrester points out, web and kiosk based AR executions are much further along in terms of consumer adoption and you’ll likely see more of these executions in 2011 than others:
“According to Mr. Husson, mobile augmented reality applications are not delivering. There are more significant short-term opportunities to tap into with Web-based and kiosk-based augmented reality solutions and there is great potential for the technology in ecommerce.”
There’s a reason why web and kiosk based-AR is more practical for your brand right now. With the web, you have the greatest reach for your AR application especially when you develop with Adobe Flash to obtain the greatest reach without the need for a proprietary plug-in. And with kiosks, you have greater processing power and removal of consumer barriers (i.e. markers, webcams) to achieve innovative and engaging executions for retail, OOH, POP and event marketing. But with mobile you still have the limitations I listed above that are not going to be overcome in 2011, much less 2012. Though tablets might provide some innovation in the mobile AR arena, web and kiosk-based AR will likely be your best bet for any AR initiatives you’re targeting to develop. Even Connected TV sets and gaming devices that offer webcam functionality will likely be a more developed and practical platform for AR than mobile. Microsoft Kinect with 8 million sales in it’s first 60 days is already showing quick adoption of AR in the digital living room.
In final, the PR value for AR is diminishing quickly for brands and doing an AR application or initiative just to do it, does not make sense anymore. If I had a nickel for every inquiry we get where “I want to have the consumer point their phone at an old car and change it into X brand”, well I’d be able to buy a 99 cent mobile AR app. AR can be a very useful technology for many different areas and industries and it’s contingent on brands and their agencies to look to utility, practicality and value over quick PR and concept reels for their AR needs.
Came across this video for an Augmented Reality game for the Android called Modroids. This is optimized for the Samsung Galaxy which is playing up its mobile AR capabilities on the Android-based tablet. Love the multiplayer aspect of the game and ability to play anywhere…
As Mobile Augmented Reality continues to evolve, it will be interesting to see (from a UI perspective) how these applications will show Augmented information integrated with the live mobile camera feed. Cities are one natural environment for this and we’ve already seen how Layar is allowing people to see how the Berlin Wall looked, where it was placed, etc. This is fine when there might be open space but how do you show the past on existing structures? While browsing my RSS feeds, I came across these amazing photos from English Russia (image above) which are combining imagery to show elements of the city in the past with the city in the present. An iPhone app called Streetmuseum, created by the Museum of London, already partially accomplishes this by showing historical images in select areas of London (image below.)
Will this ultimately be how Augmented Reality will overlay information, imagery and video on existing structures? I’m curious to everybody’s else thoughts on the matter so welcome comments below or on Twitter @Kobrakai.
I’m personally still on the fence regarding tablets in general, but it’s refreshing to finally see an electronics manufacturer (Samsung in this case) get it – and by get it I mean how suited AR is for tablets with front and back facing cameras. This is the new Samsung Galaxy tablet with more details from Crunchgear and from the Galaxy product site.
Over the next few months, we’re likely going to see a deluge of marker based mobile Augmented Reality as marketers now have the ability to spin an animation on a marker in a mobile environment. I wish I was more optimistic in this regard, but seeing how many brands created web-based AR executions solely for PR value, I see the same thing happening with Mobile AR as well. Given that inevitability, I think most marketers should at least take note of this example of Mobile AR that works – iButterfly. It’s using existing mobile AR technology to create a unique experience that involves 3 key areas for mobile AR:
Interaction with environment
Sharing
Drive to retail (via couponing)
Needless to say, the more I watch this video, the more this app is growing on me and becoming one of my favorite mobile AR executions.
P.S. My favorite Mobile AR app though is still Sunseeker. This app allows you to see the position of the sun at any day/time throughout the year. This would allow you to see when the sun would come in through a window in a new home, where a garden would be placed for optimal sunlight, and so on. Case in point that Mobile AR can be useful even with tech at the stage it’s at…
We Are Organized Chaos (WAOC) is Zugara’s (www.zugara.com) interactive marketing and advertising blog where we’ll be featuring some great projects and discussing upcoming trends in the digital world. Work — good and bad — will be critiqued. Hope you’ll enjoy reading our insights and thoughts on interactive.
