This document discusses the growing field of augmented reality (AR) and its opportunities for marketers. AR uses cameras and sensors on smartphones to overlay digital content and information on top of the real world. It is expected that AR will see major growth as the technology becomes more widely available through mobile devices. The document provides examples of companies experimenting with AR applications and advertising and suggests that marketers prepare by learning about AR and finding ways to utilize it to engage consumers in new ways.

1. AUGMENTED REALITY
New worlds of interactivity are all around us.
ARE YOU SEEING THEM YET?

2. OPPORTUNITY AWAITS
The prevalence of webcams and adoption of smartphones means that THE
AUGMENTED REALITY EXPERIENCE HAS TRULY COME TO MARKETERS
AND CONSUMERS. It may have started with online features for webcams, but
AR is now no further away than a pocket or purse.
By 2011, smartphones will enjoy a larger marketshare than laptops and PCs
combined, and costs of an AR site are comparable to an integrated mobile site,
so growth expectations are huge.
HOW CAN MARKETERS BE PREPARED FOR AR? BY FIRST, AUGMENTING
THEIR KNOWLEDGE.
*Chris Grayson, GigantiCo

3. WHAT EXACTLY IS
AR-VERTISING?
IT IS ABOUT EMPOWERING PEOPLE AND SOLICITING REAL-TIME
ENGAGEMENT.
Software such as Layar, Wikitude and Bionic Eye currently allow consumers to
immerse themselves in rapidly developing digital worlds. 3D rendering,
geo-tagging and virtual media placement are to offer new opportunities for
marketing and branding.
If you’ve watched an NFL football game in the last several years, you’ve seen
AR in action. That yellow “first down” line is likely the most widely viewed
example of mainstream AR to date.

4. HOW DOES IT WORK?
IT IS ABOUT EMPOWERING PEOPLE AND SOLICITING REAL-TIME
ENGAGEMENT.
Current augmented reality systems are GPS-BASED BASIC MOBILE AR.
This system integrates the on-board video camera, screen, GPS, magnetometer
(compass), and accelerometer (level) to know where the smartphone is
“looking.” This makes it possible to overlay contextual data.
BUT THERE’S A MORE IMPRESSIVE AR SYSTEM UNDER DEVELOPMENT…
*Chris Grayson, GigantiCo

5. MOVING FROM NOVELTY
TO UTILITY
Use of FLASH™ SOFTWARE IN AR DEVELOPMENT CAN PROVIDE
EXCELLENT REACH WITH EXISTING DEVICES. This will result in faster
consumer familiarization, more feedback to developers and accelerated
application improvement.
But, marketers need to MOVE PAST NOVELTY TO UTILITY-BASED CONSUMER
ENGAGEMENT.
MOBILE DEPARTMENTS WILL NEED TO WORK WITH OUT OF HOME TEAMS
IN MEDIA MANAGEMENT. For successful utility-based campaigns, developers
and strategic marketers will depend heavily on each others’ skills.
*Chris Grayson, GigantiCo

6. MOVING FROM NOVELTY
TO UTILITY
SOON MOBILE DEVICES WILL RECOGNIZE NOT JUST CONTEXT, BUT
SURROUNDINGS AND SITUATIONS TO PROVIDE INFORMATION
UNPROMPTED. Accurate search capabilities will be automatically initiated at
optimal times.
Just imagine depending on a contact lens for situational or product
information. Sound far-fetched? Well, it’s under development as we speak…
DO YOU KNOW HOW BEST TO COMBINE RESOURCES TO EFFECTIVELY
UTILIZE AR?
*source IEEESpectrum.com

7. PRACTICE 1
AT&T
Feeding on the 2010 World Cup frenzy, the telecom giant was able to excite
online viewers with its AR Soccer Game Banner. Using consumers’ webcam
feeds, motion technology allowed viewers to try heading corner kicks past a
goalkeeper. As part of AT&T’s “Rethink” campaign, not only did it engage
viewers, it built buzz.
AT&T’s successful foray into AR marketing generated a tremendous amount of
press coverage and word-of-mouth marketing – online and off.
*source ITVT

8. PRACTICE 2
OGMENTO, INC.
Ogmento will soon release its PUT A SPELL iPhone app. Developed in
conjunction with literacy experts, children interact with an animated panda
that challenges them to spell. Development is also on track for AR SKETCH, an
app that allows users to manipulate 3D versions of their sketches, seconds
after drawing them.
Video games have been a marketing sweet spot for several years now. Just
imagine the opportunities in AR game advertising…
*Ogmento.com

9. THE BOTTOM LINE
Global mobile revenue is projected to top $700 million by 2014. ABI Research
suggests that the global share of this attributed to AR will grow “TO MORE
THAN $350 MILLION BY 2014.”
The technology is in place, developers are innovating quickly and the public is
primed for AR engagement.
AS MARKETERS, ARE YOU READY TO LEVERAGE THESE NEW WORLDS?
*sources ABI Research, Agora Media Group, Jupiter Research

10. …THE WORLDS OF AR ARE
OPEN FOR BUSINESS. NOW
YOU AR READY!
Ludvik + Partners provides value by assessing your company’s overall marketing
theme and determining a strategy that helps AR deliver on fundamental
objectives. We’ll ensure that your underlying marketing plan is aligned with
measurable business goals.
CREATIVE ADVERTISING REDEFINED.
245 East 50th Street, Suite 4A / New York, NY 10022 / T: 347.586.9862 / F: 212.371.3279 / www.ludvikplus.com

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