In a previous post I commented on the simmering battle regarding the effectiveness of Augmented Reality. While the majority feel that the technology is a huge breakthrough which may one day revolutionise the way in which we shop both online and in-store, some regard it as a mere gimmick, a flash in the pan which, once the novelty aspect has worn off, will ultimately fail to live up to its hype.
As a believer in the technology, I suppose it’s my job to prove the doubters wrong. After all, if you don’t stand up for the things you love, who will?
So, I shall base this post on one simple fact, AUGMENTED REALITY IS PROFITABLE!!!
2009 was the defining year for the AR community as the technology moved away from research and into commercial products. Led by Wikitude, a steady stream of AR browser entered the market, including the likes of Layar and Junaio, which allowed users to access additional information by using their Smartphone cameras. Despite this rise in popularity, however, a report carried out late last year by Jupiter Research estimated that the marketing would not grow beyond the somewhat feeble figure of $2 million by the end of 2010, a shot in the arm for AR developers. The article, however, went on to state that with the increase in the number of devices which are AR compatible, the market is expected to grow considerably by 2014, reaching an estimated value of $732 million. While this figure incorporates the Augmented Reality market as a whole, including the entertainment industry (i.e. gaming), lifestyle and social networking as well as enterprise, the upsurge is still remarkable. The article can be viewed in its entirety at http://www.itp.net/578526-augmented-reality-market-to-reach-732m-by-2014.
Of course, Jupiter’s research is somewhat vague, and is not specific to any one area of Augmented Reality. So, let us delve a little further.
For all those who are not yet familiar with the London based AR company Holition, let me share some insight. Whilst working alongside Swiss watchmaker Tissot, Holition launched an AR campaign which allowed users to virtually ‘try on’ watches from their own home. As part of the venture, the London based company fitted an Augmented Reality application onto the window at Selfridges on London’s Oxford Street, bringing the technology to the masses. Over the two week period in which the application was displayed, the Tissot store in Selfridges saw an 85% increase in sales, with the YouTube clip receiving more than 50,000 hits in the same time frame. For those yet to experience the app, you can view it here at http://www.youtube.com/watch?v=BmogH4tp0Vw.
Holition’s work with De Beers also brought tremendous results for the world renowned jewellers. Working in conjunction with 3D partners Point Stick Films, the AR company designed an Alioscopy screen which was affixed onto the Isetan department store in Tokyo, allowing items to be seen in 3D without the need for special glasses. As a result of this project, 100,000 people stopped and viewed the screen in the first four days of its launch, arguably bringing the jeweller greater exposure than a traditional PR campaign. This project can be seen by visiting the Holition Facebook page at http://www.facebook.com/pages/London-United-Kingdom/Holition/110058449057796.
Of course, it isn’t just Holition who is doing wonders in the Augmented Reality field, as many other major businesses are fast adopting the technology. Lego, for example, developed an in-store kiosk that allowed users to see the finished model without having to look inside the box, an application which received over 250,000 hits on a single YouTube video (http://www.youtube.com/watch?v=PGu0N3eL2D0). The hit US hit film Avatar also used AR when developing its brand of trading cards. Users simply placed the card in front of a webcam and watch the characters come to life which generated over 300,000 hits on YouTube (http://www.youtube.com/watch?v=7JWk_JIE3Ow&feature=related). Pokémon’s trading cards also developed a similar system which allowed users to battle each other if two cards were placed alongside each other opposite the webcam (http://www.youtube.com/watch?v=jsuA0ERszjY).
Of course, the technology is still in the early stages of development and a huge return in profit is not guaranteed. But more and more businesses are beginning to see the benefits that AR technology can bring to a sales campaign. Traditional PR advertising in magazines may well be made obsolete by the rise in Augmented Reality. And with the market expected to be worth over $730 million in just four years time, those who don’t embrace the technology may be left behind.
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