Trend assessment - Augmented Reality

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Trend assessment - Augmented Reality

  1. 1. Trend Assessment:Augmented Reality By: David Stein MKTG 7546 – Professor Brey April 10, 2012 0
  2. 2. ContentsAugmented Reality: What is it and where did it come from? ....................................................................... 2Case Studies .................................................................................................................................................. 2 Sports – San Jose Earthquakes .................................................................................................................. 2 Retail - Tesco ............................................................................................................................................ 3 Potential Applications ............................................................................................................................... 4The Future of Augmented Reality - Interview (with Matt DeSiena) ............................................................ 5Appendix A ................................................................................................................................................... 7Appendix B ................................................................................................................................................... 8Works Cited................................................................................................................................................... 9 1
  3. 3. Augmented Reality: What is it and where did it come from? Financial Times Lexicon defines augmented reality (AR) as: “the technology that offers areal-time view of ones immediate surroundings altered or enhanced by computer generatedinformation. When users examine their environment through AR devices, they see informationsuperimposed on the objects around them.”1 Mashable writer Lance Ulanoff declares augmentedreality to be one of the top five technology trends in 2012.2 Credit for coining the term “augmented reality” is generally given to Professor TomCaudell. It is believed he came up with the term in 1990 while in Seattle working on Boeing’sComputer Services Adaptive Neural Systems Research and Development.3 Though the term wasn’t coined until 1990, this type of “augmented reality” has beenaround since at least 1957, when Morton Heilig built his Sensorama machine. This machine canbe best understood as a precursor to the motorcycle arcade games from my (our) youth. Thoughmore virtual reality than augmented reality, the relationship is obvious. In essence this machinewas a motorcycle which allowed riders a simulated driving experience. The machine wasprogrammed to a specific route and the motorcycle vibrated, had wind that blew onto the rider,and most relevant, had 3 screens (in front and on each side) which projected the appropriateimages – together creating a virtual 3D experience. Though it was not commercially successful(and thus maybe, in the eyes of some, a failure) it was revolutionary.4 Over the last fifty plus years augmented reality has come a long way. With the advent ofthe smartphone and further tablets, augmented reality has found a new home and mainstreampopularity. Today it touches nearly every aspect of society – weather maps, GPS’s, numeroussmart phone apps, airline pilots, and recently even hospitals and doctors are starting to useaugmented reality to diagnose and treat patients. Still, the technology is developing andcommercially its success is not certain. Though “cool” much of today’s augmented realitydevelopments have yet to find their way to monetization and others are still just a little tooexpensive for individual consumers.Case Studies Augmented reality has become prevalent in many areas of society. From cars to doctor’soffices, and of course, phones and gaming systems augmented reality has recently begun toimpact society on a massive scale. From a digital marketing standpoint two places whereaugmented reality has been successful are: in sports and retail.Sports – San Jose Earthquakes In 2004, I had the privilege to work “in the booth” of the annual Army-Navy gamebesides Ian Eagle and Boomer Esiason. For that day, I was an hourly employee of CBS and hadonly one role to perform: I was to calculate 10 yards and relay back to the broadcast busdownstairs where they needed to super-impose the yellow first-down line during the telecast. Atthe time I thought it was a pretty cushy gig. Now I realize this was the beginning of main-streamaugmented reality. This same technology has been used at the Olympics to show, for example,how far Michael Phelps was compared to his competition. Even as recently as today (or1 Financial Times Lexicon2 Mashable3 Wired.com4 Pocket-Lint 2
  4. 4. technically the future) this same technology and concept will be used “breaking remarkable newground in the broadcasting of sailing” where helicopters will fly above the America’s Cupcompetition to provide viewers with a clear picture of the race standings.5 Sports have, for a long-time, been a premier marketing venue for companies. Fromsponsorships of uniforms to commercials during breaks, and of course billboards at stadiumsmany companies have paid sporting leagues or teams for access. Augmented reality has been agreat tool for companies and the teams/leagues in terms of being able to super-imposeadvertisements on the fields or the backstops at either a national or even a local level. A great example of how augmented reality is being applied in sports can be seen with theSan Jose Earthquakes of Major League Soccer. Partnering with Aurasma, the Earthquakes havecreated a free app to work on iPhones, iPads and Android devices that will allow anyone whoclicks on the Earthquakes logo (wherever it’s found) to view videos and highlights, as well as toreceive exclusive promotions. Jennifer Rapp, general manager at Aurasma, added, "Theforward-thinking Earthquakes organization understands that its loyal fan base craves engagementwith players beyond game day. Since sports teams logos are seen on all types of merchandise itis really fun and easy to transform a poster, sweatshirt or even coffee mug into another screen towatch game highlights and engage with the players. We are excited to power the first US MajorLeague Soccer team’s augmented reality experience."6 Though it is too early to know the results of this campaign, it seems likely to besuccessful. As an avid sports fan, I know the passion of these individuals and their desire fornew ways to interact with the team. There’s never enough news coverage or stories or videos toread, watch or see. This augmented realty, while still fairly basic – consisting of only highlightsand promotions – is just another way for fans to follow their team. It may even attract a few newfans; people whose curiosity lead them to download the app to check it out and after watchingfind themselves enjoying some of the highlights or take advantage of discounts on tickets. Thisis a great way for Major League Soccer (specifically the Earthquake) to utilize this newtechnology as a leader, rather than being a laggard.Retail - Tesco Within the retail sector, many companies are using augmented reality both in and out ofbrick and mortar stores. Virtual dressing rooms are an example that has been discussed. TheBritish retailer Tesco has been at the forefront of the augmented reality revolution. With virtualdressing rooms on Facebook and virtual supermarkets located in subway stations7 Tesco hastransformed the consumer shopping experience. Another really interesting application ofaugmented reality which Tesco recently launched (November of 2011) is their 3D catalog, inwhich consumers can view over 40 items in 3D through their computers. 8 Benefits of the use ofaugmented reality for Tesco are believed to be greater ability for consumers to interact withproducts (either online or in-store), and a reduction in shelf-space needed to stock and displaylarger items. By allowing customers to engage with televisions or refrigerators through virtual3D Tesco hopes they can save shelf space for other items. Tesco’s willingness to be innovative is inspiring and has set it apart from the competition.Still, its use of augmented reality must be carefully managed. Dan Hagen, head of planning at5 America’s Cup6 Sportspromedia.com7 DVICE8 Telegraph 3
  5. 5. Carat, makes an interesting point at the FMCG & Media event, in association with O2 media.He noted that augmented reality is "really interesting" but has the potential to go the same way asQR codes - something he described as "having potential but used badly". "Dont do it because itscool - do it to add value," he urged. "Brands need to add value to consumer experience for it towork."9 Further, Tesco’s success with this latest augmented reality is limited by consumers’understanding of the technology and its relevance. Until the technology is accepted byconsumers and grows in popularity and mainstream appeal, it is just “cool” but not yet a truebusiness success. Tesco’s foray into augmented reality is a bold and smart move, but they must be patientand allow time for the network effect. Just as a single telephone, with no one on the other endwas useless to Alexander Graham Bell, the augmented reality system needs to gradually buildand become commonly accepted to be fully successful.Potential Applications Augmented reality has touched a large part of society – particularly in the United States –but is still an evolving, changing and growing technology. At the present time, the largest growth area for augmented reality is, of course, withinsmart handheld devices – smartphones and tablets. Through the use of these devices users canclick on applications which give them access to a myriad of augmented reality options. Initiallythese options were things such as taking a picture and distorting it to enhance its aesthetics or forentertainment purposes. Today apps are much more sophisticated – such as Golfscape GPSFinder app, which allows users to use their phone to view a golf course and get a GPS layoutshowing distances and providing tips, etc.10 Another example is the ZipRealty app that will allowusers to use their camera to look down a street and see which, if any, houses are for sale, or whatthe market is.11 Discussing potential applications is challenging because as use of augmented realitybecomes more prevalent the technology changes even more rapidly. What was a “cool idea”yesterday is a reality today; and what was a “that would be nice to have” yesterday is a table-stake today. A great example of the speed with which the technology is advancing can be seenin Honeywell and NASA’s goggles and windshield which allow pilots to virtually see throughfog and bad weather – overlaying runways and towers and potentially other planes into view.12A possible further application that has potential in the aerospace, and other industries, would be aspecially designed (and highly regulated – to avoid use by the mass public) app that would allowan air marshal to use his/her phone to take passengers’ pictures and gain access to any potentialcriminal records. Though there are many safety measures taken by the TSA to protect the flyingpublic one more non-intrusive and essentially unnoticeable procedure couldn’t hurt. Further,what if airport security agents have the same capability? Or the guy that checks your ID evenbefore you get access to the terminals? Might it make those spot checks easier? Another potential application along the same lines would allow doctors to take similarpictures and instantly gain access to a patient’s medical record. Such an application is probablya little ways off. Doctors are only now being mandated to get their files digitized and it will belonger still before they are in the cloud (or out on the Internet for public consumption), but it9 MediaTel10 Business Insider11 Zip Realty12 Daily Mail 4
  6. 6. could be on the horizon. Wouldn’t there be an advertising opportunity for a medical company –such as our local Medtronic – to advertise on the screen as a doctor reviews the medical record ofa patient with a history of chronic knee pain? Certainly the pharmaceutical industry would jumpon this. Going back to the sports theme, a future augmented reality application might allow a fanvisiting a Hall of Fame museum to point his/her phone in the direction of a piece of memorabiliaand be directed to a video of that moment or to a player’s career highlights, or even a listing ofbooks to read on the subject with reviews (and to monetize it – places they can purchase books,souvenirs, etc. – perhaps the gift shop).The Future of Augmented Reality - Interview (with Matt DeSiena) Though smartphones are the wave of today, in the future, other vehicles will be used foraugmented reality. According to Social Media expert and technology buff Matt DeSiena, “Whileaugmented reality is still in its infancy, brands are watching the development in this spaceclosely. The rise of smart-phones and wireless gaming consoles brought a digital sixth- sense tothe consumer. We can now receive information and entertainment while reducing manualgestures (a click, a keystroke, a movement) in order to do so.” In the commercials for the latest Mission Impossible movie one can see an image of a carwhich has augmented reality capabilities. According to Mailmovement.com and Intel thistechnology is not far off, "It seems quite feasible, and easy for Intel. Last year, we hadintroduced a webcam which is placed in a car, headed toward the driver. It recognizes the driveras soon as he sits, and will automatically adjust the characteristics related to the driver, such asthe seat position, the windows, music etc."13 Though still a ways off – particularly for legalreasons I imagine (if texting and driving is deadly, this has potential to be cataclysmic) – thistechnology will eventually become main stream and will change the communication industry, thetransportation industry and probably a few others as well. Each of these industries will also havetremendous opportunities for monetization once this happens. Among other avenues, obviouslythe price of the cars themselves will increase, but there is also potential for in-car advertisements,and/or for restaurants or retailers, etc. to create relationships with manufacturers to have theirlocations “sponsored” during driver’s GPS searches. Whichever car company and augmentedreality developer is first to market with this technology will have a major advantage, but again,there are many issues that need to be considered and resolved first. Google’s “Project Glass” is another on-the-verge augmented reality development.Google Goggles is an “app” that was developed in 2010, but since has grown into somewhat of aplatform itself. The app was designed so users could simply click on a picture to search the web.For example, if a user clicks on text, they can easily use the internet to translate that text intoother languages.14 In 2012 Google is preparing to take the next step in this augmented realityspace with development of “Project Glass”. Though only in the conceptual phase, Google hasjust released the first insights to the public. By using actual (physical) goggles, users will be ableto use their eyes (and probably voice) to look at different objects and instantly obtain informationvia the Internet – information similar to what is offered on many smartphones. A great exampleof this would be a user who looks up at the sky and sees a weather report flash into view via the13 Mail Movement14 Google 5
  7. 7. goggles.15 If this technology delivers as promised it will take society one giant step closer to thatfuturistic world that until now was glimpsed only in movies or sci-fi novels. There are also a lotof questions that stem from this, including: what about people who already wear glasses? Whatare the practical limitations on widespread acceptance of the technology imposed by the goggles’exclusive reliance on wi-fi/Internet access? How the goggles will perform handling manysimultaneous tasks or even how the user will do the same? Still, despite all its unansweredquestions and uncertainty this concept points to the future. It’s only a matter of time and thenumber of intervening steps it takes, before we get there. As Matt DeSiena elaborates, “Theybelieve augmented reality can become a passive, immersive experience rather than one we needto actively filter. And the possibilities are exciting to consider: runners that can see their mileagestatistics and distance to their goal. Mass transportation riders who can determine when the nexttrain will arrive without the city having to invest in expensive display units. Tourists that will beable to choose from highly-rated restaurants simply be looking down the block. Brands willcapitalize on the immediacy of the technology, but Google will need to ensure that the consumerwon’t be frustrated by information overload.” While there probably a number of players trying to be first to market with similartechnologies, Google’s competitive advantages are clear. Not only are they technologicallysavvy and have deep pockets they are the premier company in the information space and theirbrand carries a lot of weight. They will have unprecedented opportunities to monetize thistechnology – some of which were mentioned above. Matt DeSiena further elaborates, “Brandswill correctly jump at the opportunity to appear directly in front of a consumer’s retinas, so it’simperative that Google [and Sony] ensure the user experience is managed properly.” Google hasalso shown that it is inventive and is willing and able to do what it takes to stay ahead of theircompetition. It will be interesting to watch as this technology unfolds.15 Mobile Mag 6
  8. 8. Appendix AAbout Matt DeSienaMatt DeSiena is the Director of Digital Strategy at Steam Communications in New York City.He works with small businesses and entrepreneurs in the greater New York area to merge theirtraditional and digital marketing efforts for client outreach.Along with founding Steam, Mr. DeSiena works as a Senior Digital Strategist for a SaaScompany on Manhattan’s West Side. He brings his expertise in social media strategy andanalysis, which is instrumental in building digital campaigns for his products and brands. 7
  9. 9. Appendix BThe Future of Augmented RealityInterview with Matt DeSiena“While augmented reality is still in its infancy, brands are watching the development in thisspace closely. The rise of smart-phones and wireless gaming consoles brought a digital “sixthsense” to the consumer. We can now receive information and entertainment while reducingmanual gestures (a click, a keystroke, a movement) in order to do so.Google and Sony are capitalizing on the research and development put into augmented reality,and I suppose the future begins with them. The search giant’s initial foray into the space withtheir Google Goggles app provided a great foundation for future products. The app allows theconsumer to look through their phone’s camera lens to shop, search, and capture their real-worldexperience in real-time.By testing it with a smaller population of early adopters, Google was able to prepare for the nextevolution in augmented reality: Google Glasses. They believe augmented reality can become apassive, immersive experience rather than one we need to actively filter. And the possibilitiesare exciting to consider: runners that can see their mileage statistics and distance to their goal.Mass transportation riders who can determine when the next train will arrive without the cityhaving to invest in expensive display units. Tourists that will be able to choose from highly-rated restaurants simply be looking down the block. Brands will capitalize on the immediacy ofthe technology, but Google will need to ensure that the consumer won’t be frustrated byinformation overload.Sony has similar challenges. Their initial augmented reality endeavors are tied to theirPlaystation Vita gaming console (using Wide-Area Augmented Reality). The initial rollout wassuccessful in bringing WARR gaming to the market, but their future success is largely dependenton making the experience social. An ability to seamlessly invite nearby players into your virtualgaming experience as an ally or an enemy adds a new level of depth to social gaming.Again, the biggest challenge for both companies is to ensure that information overload and anoverly social experience will not create too much noise for it to actually be enjoyable. Brandswill correctly jump at the opportunity to appear directly in front of a consumer’s retinas, so it’simperative that Google and Sony ensure the user experience is managed properly.” 8
  10. 10. Works CitedBarnett, E. (2011, November 17). Tesco trials augmented reality. Retrieved from The Telegraph: http://www.telegraph.co.uk/technology/news/8895923/Tesco-trials-augmented-reality.htmlChen, B. X. (2009, August 25). If You’re Not Seeing Data, You’re Not Seeing. Retrieved from Wired.com: http://www.wired.com/gadgetlab/2009/08/augmented-reality/Jaques, L. (2012, February 29). FMCG & Media: Augmented reality - Dont do it just cos its cool. Retrieved from MediaTel Newsline: http://mediatel.co.uk/newsline/2012/02/29/fmcg-media- augmented-reality-dont-do-it-cos-its-cool/Kwan, M. (2012, April 4). AR Google Goggles Just Got A Little More Sexy (Video). Retrieved from Mobile Magazine: http://www.mobilemag.com/2012/04/04/ar-google-goggles-just-got-a-little-more- sexy-video/Love, D. (2012, March 21). 9 Quirkly Augmented Reality Apps for your Smartphone. Retrieved from Business Insider: http://www.businessinsider.com/augmented-reality-apps-2012-3#golf-nuts- will-want-the-golfscape-gps-finder-2Love, T. (2012, March 9). San Jose Earthquakes to run augmented reality promotion. Retrieved from Sports Pro: http://www.sportspromedia.com/news/forward- thinking_earthquakes_to_run_augmented_reality_promotion/Sung, D. (2001, March 1). The history of augmented reality. Retrieved from Pocket-Lint: http://www.pocket-lint.com/news/38803/the-history-of-augmented-realityUllanoff, L. (2011, December 27). 5 Tech Trends to Watch in 2012. Retrieved from Mashable.com: http://mashable.com/2011/12/27/5-tech-trends-to-watch-in-2012/Unknown. (2011). Google Goggles. Retrieved from Google: http://www.google.com/mobile/goggles/#textUnknown. (2011, December 9). Mission Impossble 4: Impossible Gadgets? Retrieved from Mail Movement: http://www.mailmovement.com/news_us.php?id=2043#//news_us.php?id=2043Unknown. (2012). Augmented Reality. Retrieved from Financial Times Lexicon: http://lexicon.ft.com/Term?term=augmented-realityUnknown. (2012, March 1). NBC Sports Group to Present 34th America’s Cup Live in 2013. Retrieved from Americas Cup: http://www.americascup.com/en/Latest/News/2012/3/NBC-Sports-Group- to-Present-34th-Americas-Cup-Live-in-2013/Unknown. (2012). Were Ready Where You Are. Retrieved from Zip Realty: http://www.ziprealty.com/iphone/index.jspWang, R. (2011, July 5). South Koreans can shop for food on train platforms using phones. Retrieved from Dvice: http://dvice.com/archives/2011/07/south-koreans-c.phpWren, E. (2012, March 13). Clear to land: NASA new augmented reality goggles will let airline pilots see through fog. Retrieved from Daily Mail: http://www.dailymail.co.uk/sciencetech/article- 2114367/Clear-land-NASA-new-augmented-reality-goggles-let-airline-pilots-fog.html 9

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