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Augmented reality: geek plaything or small business tool?

  • Josh Mehlman
  • 17 March 2010
Augmented reality: geek plaything or small business tool?
For a technology more than 50 years old, augmented reality is currently making a lot of noise as the next big thing. But is the technology a geek plaything, a marketer's wet dream or a practical tool that small businesses might actually use?

Augmented reality is a system of mixing a live view of a real-world environment with computer-generated imagery or information in context and in real time.

The first augmented reality applications were developed in the 1950s: the head-up displays of fighter aircraft that showed navigation and weapon aiming information in pilots' fields of vision, so they could fly and aim without looking down at instruments.

Everyone can be augmented

The combination of several recent technology developments has made augmented reality much easier to achieve and access. Portable, internet-connected mobile devices can determine where they are using the global positioning system (GPS) and download relevant information in real time. Smartphones and personal computers also have the processing power to recognise elements of video images and overlay new information.

Augmented reality applications are generally viewed through a PC or smartphone screen, where information from a camera is overlaid with computer-generated information. They can also be viewed through glasses or goggles, which project the images directly into the wearer's field of vision.

Where are you at? The case for location-based marketing

One application for augmented reality that has the marketing industry very excited is the ability to deliver location-based offers to customers.

Sydney-based Insqribe (insqribe.com) is one company developing a platform that delivers augmented reality information to mobile phones: currently the iPhone, but with plans for Google Android and RIM BlackBerry devices.

"This gives small businesses the ability to share promotional offers or other types of information with customers," says commercial director Nick Gonios. "If someone is walking down the street, retailers have the opportunity to present themselves to people going by. They could show special offers through overlaid augmented reality tags. Customers could put items on lay by on the go.

"The platform could also provide additional information, such as opening and closing times."

Digging beneath the (shiny) surface

Daniel Bradby is co-founder of jTribe (jtribe.com.au), a mobile apps development company for iPhone and Android. He is also excited about the prospects of augmented reality.

"We've been looking at bringing static, physical geo-located information to life with augmented reality, such as animating a billboard," he says. "Obviously, you can add things like a game or a giveaway, to get the user to engage in the product or brand itself, as opposed to a static piece of advertising that they just take in."

He believes there are many interesting applications beyond marketing, though many of these fall into specific niches.

"I work with architects and urban planners and the Victorian Government is interested in getting their geographic system information onto the phone," he says. "You could provide good information for architects and planners, to augment what they're looking at with planning information on top, such as the zoning or heritage listing of a property."

Imagining how products fit your life

The image recognition side of augmented reality has great potential for business use, according to Scott OBrien, marketing director at Explore Engage (exploreengage.com), a firm that develops augmented reality applications and devices.

"In online retail, the few main obstacles to buying are credit card security, logistics and not being able to get an idea of the product and how it would look and feel in its environment," he says. "Augmented reality takes the mystery out of how this product would function in my environment.

"We've got apps for the fashion industry that show a 3D rendering to the fitting of clothes to the individual, using motion capture. They can also use social media to get peer approval: send it to their friends and say, ‘How does this look on me?'.

Winning combination: offers plus interaction

Augmented reality applications are most popular when combined with social media and incentives, OBrien believes.

"It's not only the excitement of the new technology, but also if it's something worthy of sharing with friends and possibly incentivised by prizes or a greater intelligence at point of sale," he says.

Although much of the talk about augmented reality is hype or gimmickry, OBrien says augmented reality applications can be practical for small businesses, especially because they're slightly addictive.

"You usually find on augmented reality campaigns, people will stay onsite for four or more minutes and over the first two weeks they learn about the AR application, they visit four or more times," he says. #

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