2. Contents
Augmented Reality: What is it and where did it come from? ....................................................................... 2
Case Studies .................................................................................................................................................. 2
Sports – San Jose Earthquakes .................................................................................................................. 2
Retail - Tesco ............................................................................................................................................ 3
Potential Applications ............................................................................................................................... 4
The Future of Augmented Reality - Interview (with Matt DeSiena) ............................................................ 5
Appendix A ................................................................................................................................................... 7
Appendix B ................................................................................................................................................... 8
Works Cited................................................................................................................................................... 9
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3. Augmented Reality: What is it and where did it come from?
Financial Times Lexicon defines augmented reality (AR) as: “the technology that offers a
real-time view of one's immediate surroundings altered or enhanced by computer generated
information. When users examine their environment through AR devices, they see information
superimposed on the objects around them.”1 Mashable writer Lance Ulanoff declares augmented
reality to be one of the top five technology trends in 2012.2
Credit for coining the term “augmented reality” is generally given to Professor Tom
Caudell. It is believed he came up with the term in 1990 while in Seattle working on Boeing’s
Computer Services' Adaptive Neural Systems Research and Development.3
Though the term wasn’t coined until 1990, this type of “augmented reality” has been
around since at least 1957, when Morton Heilig built his Sensorama machine. This machine can
be best understood as a precursor to the motorcycle arcade games from my (our) youth. Though
more virtual reality than augmented reality, the relationship is obvious. In essence this machine
was a motorcycle which allowed riders a simulated driving experience. The machine was
programmed 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 appropriate
images – 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 of
the smartphone and further tablets, augmented reality has found a new home and mainstream
popularity. Today it touches nearly every aspect of society – weather maps, GPS’s, numerous
smart phone apps, airline pilots, and recently even hospitals and doctors are starting to use
augmented reality to diagnose and treat patients. Still, the technology is developing and
commercially its success is not certain. Though “cool” much of today’s augmented reality
developments have yet to find their way to monetization and others are still just a little too
expensive for individual consumers.
Case Studies
Augmented reality has become prevalent in many areas of society. From cars to doctor’s
offices, and of course, phones and gaming systems augmented reality has recently begun to
impact society on a massive scale. From a digital marketing standpoint two places where
augmented 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 game
besides Ian Eagle and Boomer Esiason. For that day, I was an hourly employee of CBS and had
only one role to perform: I was to calculate 10 yards and relay back to the broadcast bus
downstairs where they needed to super-impose the yellow first-down line during the telecast. At
the time I thought it was a pretty cushy gig. Now I realize this was the beginning of main-stream
augmented 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 (or
1
Financial Times Lexicon
2
Mashable
3
Wired.com
4
Pocket-Lint
2
4. technically the future) this same technology and concept will be used “breaking remarkable new
ground in the broadcasting of sailing” where helicopters will fly above the America’s Cup
competition 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. From
sponsorships of uniforms to commercials during breaks, and of course billboards at stadiums
many companies have paid sporting leagues or teams for access. Augmented reality has been a
great tool for companies and the teams/leagues in terms of being able to super-impose
advertisements 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 the
San Jose Earthquakes of Major League Soccer. Partnering with Aurasma, the Earthquakes have
created a free app to work on iPhones, iPads and Android devices that will allow anyone who
clicks on the Earthquakes logo (wherever it’s found) to view videos and highlights, as well as to
receive exclusive promotions. Jennifer Rapp, general manager at Aurasma, added, "The
forward-thinking Earthquakes organization understands that its loyal fan base craves engagement
with players beyond game day. Since sports teams' logos are seen on all types of merchandise it
is really fun and easy to transform a poster, sweatshirt or even coffee mug into another screen to
watch game highlights and engage with the players. We are excited to power the first US Major
League Soccer team’s augmented reality experience."6
Though it is too early to know the results of this campaign, it seems likely to be
successful. As an avid sports fan, I know the passion of these individuals and their desire for
new ways to interact with the team. There’s never enough news coverage or stories or videos to
read, watch or see. This augmented realty, while still fairly basic – consisting of only highlights
and promotions – is just another way for fans to follow their team. It may even attract a few new
fans; people whose curiosity lead them to download the app to check it out and after watching
find themselves enjoying some of the highlights or take advantage of discounts on tickets. This
is a great way for Major League Soccer (specifically the Earthquake) to utilize this new
technology as a leader, rather than being a laggard.
Retail - Tesco
Within the retail sector, many companies are using augmented reality both in and out of
brick and mortar stores. Virtual dressing rooms are an example that has been discussed. The
British retailer Tesco has been at the forefront of the augmented reality revolution. With virtual
dressing rooms on Facebook and virtual supermarkets located in subway stations7 Tesco has
transformed the consumer shopping experience. Another really interesting application of
augmented reality which Tesco recently launched (November of 2011) is their 3D catalog, in
which consumers can view over 40 items in 3D through their computers. 8 Benefits of the use of
augmented reality for Tesco are believed to be greater ability for consumers to interact with
products (either online or in-store), and a reduction in shelf-space needed to stock and display
larger items. By allowing customers to engage with televisions or refrigerators through virtual
3D 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 at
5
America’s Cup
6
Sportspromedia.com
7
DVICE
8
Telegraph
3
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 as
QR codes - something he described as "having potential but used badly". "Don't do it because it's
cool - do it to add value," he urged. "Brands need to add value to consumer experience for it to
work."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 by
consumers and grows in popularity and mainstream appeal, it is just “cool” but not yet a true
business success.
Tesco’s foray into augmented reality is a bold and smart move, but they must be patient
and allow time for the network effect. Just as a single telephone, with no one on the other end
was useless to Alexander Graham Bell, the augmented reality system needs to gradually build
and 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, within
smart handheld devices – smartphones and tablets. Through the use of these devices users can
click on applications which give them access to a myriad of augmented reality options. Initially
these options were things such as taking a picture and distorting it to enhance its aesthetics or for
entertainment purposes. Today apps are much more sophisticated – such as Golfscape GPS
Finder app, which allows users to use their phone to view a golf course and get a GPS layout
showing distances and providing tips, etc.10 Another example is the ZipRealty app that will allow
users to use their camera to look down a street and see which, if any, houses are for sale, or what
the market is.11
Discussing potential applications is challenging because as use of augmented reality
becomes 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 seen
in Honeywell and NASA’s goggles and windshield which allow pilots to virtually see through
fog and bad weather – overlaying runways and towers and potentially other planes into view.12
A possible further application that has potential in the aerospace, and other industries, would be a
specially designed (and highly regulated – to avoid use by the mass public) app that would allow
an air marshal to use his/her phone to take passengers’ pictures and gain access to any potential
criminal records. Though there are many safety measures taken by the TSA to protect the flying
public 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 even
before 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 similar
pictures and instantly gain access to a patient’s medical record. Such an application is probably
a little ways off. Doctors are only now being mandated to get their files digitized and it will be
longer still before they are in the cloud (or out on the Internet for public consumption), but it
9
MediaTel
10
Business Insider
11
Zip Realty
12
Daily Mail
4
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 of
a patient with a history of chronic knee pain? Certainly the pharmaceutical industry would jump
on this.
Going back to the sports theme, a future augmented reality application might allow a fan
visiting a Hall of Fame museum to point his/her phone in the direction of a piece of memorabilia
and be directed to a video of that moment or to a player’s career highlights, or even a listing of
books 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 for
augmented reality. According to Social Media expert and technology buff Matt DeSiena, “While
augmented reality is still in its infancy, brands are watching the development in this space
closely. The rise of smart-phones and wireless gaming consoles brought a digital sixth- sense to
the consumer. We can now receive information and entertainment while reducing manual
gestures (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 car
which has augmented reality capabilities. According to Mailmovement.com and Intel this
technology is not far off, "It seems quite feasible, and easy for Intel. Last year, we had
introduced a webcam which is placed in a car, headed toward the driver. It recognizes the driver
as soon as he sits, and will automatically adjust the characteristics related to the driver, such as
the seat position, the windows, music etc."13 Though still a ways off – particularly for legal
reasons I imagine (if texting and driving is deadly, this has potential to be cataclysmic) – this
technology will eventually become main stream and will change the communication industry, the
transportation industry and probably a few others as well. Each of these industries will also have
tremendous opportunities for monetization once this happens. Among other avenues, obviously
the 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 their
locations “sponsored” during driver’s GPS searches. Whichever car company and augmented
reality 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 a
platform 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 into
other languages.14 In 2012 Google is preparing to take the next step in this augmented reality
space with development of “Project Glass”. Though only in the conceptual phase, Google has
just released the first insights to the public. By using actual (physical) goggles, users will be able
to use their eyes (and probably voice) to look at different objects and instantly obtain information
via the Internet – information similar to what is offered on many smartphones. A great example
of this would be a user who looks up at the sky and sees a weather report flash into view via the
13
Mail Movement
14
Google
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7. goggles.15 If this technology delivers as promised it will take society one giant step closer to that
futuristic world that until now was glimpsed only in movies or sci-fi novels. There are also a lot
of questions that stem from this, including: what about people who already wear glasses? What
are 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 many
simultaneous tasks or even how the user will do the same? Still, despite all its unanswered
questions and uncertainty this concept points to the future. It’s only a matter of time and the
number of intervening steps it takes, before we get there. As Matt DeSiena elaborates, “They
believe augmented reality can become a passive, immersive experience rather than one we need
to actively filter. And the possibilities are 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 city having 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 of the technology, but Google will need to ensure that the consumer
won’t be frustrated by information overload.”
While there probably a number of players trying to be first to market with similar
technologies, Google’s competitive advantages are clear. Not only are they technologically
savvy and have deep pockets they are the premier company in the information space and their
brand carries a lot of weight. They will have unprecedented opportunities to monetize this
technology – some of which were mentioned above. Matt DeSiena further elaborates, “Brands
will correctly jump at the opportunity to appear directly in front of a consumer’s retinas, so it’s
imperative that Google [and Sony] ensure the user experience is managed properly.” Google has
also shown that it is inventive and is willing and able to do what it takes to stay ahead of their
competition. It will be interesting to watch as this technology unfolds.
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Mobile Mag
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8. Appendix A
About Matt DeSiena
Matt 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 their
traditional and digital marketing efforts for client outreach.
Along with founding Steam, Mr. DeSiena works as a Senior Digital Strategist for a SaaS
company on Manhattan’s West Side. He brings his expertise in social media strategy and
analysis, which is instrumental in building digital campaigns for his products and brands.
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9. Appendix B
The Future of Augmented Reality
Interview with Matt DeSiena
“While augmented reality is still in its infancy, brands are watching the development in this
space closely. The rise of smart-phones and wireless gaming consoles brought a digital “sixth
sense” to the consumer. We can now receive information and entertainment while reducing
manual 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 with
their Google Goggles app provided a great foundation for future products. The app allows the
consumer to look through their phone’s camera lens to shop, search, and capture their real-world
experience in real-time.
By testing it with a smaller population of early adopters, Google was able to prepare for the next
evolution in augmented reality: Google Glasses. They believe augmented reality can become a
passive, immersive experience rather than one we need to actively filter. And the possibilities
are 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 city
having 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 of
the technology, but Google will need to ensure that the consumer won’t be frustrated by
information overload.
Sony has similar challenges. Their initial augmented reality endeavors are tied to their
Playstation Vita gaming console (using Wide-Area Augmented Reality). The initial rollout was
successful in bringing WARR gaming to the market, but their future success is largely dependent
on making the experience social. An ability to seamlessly invite nearby players into your virtual
gaming 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 an
overly social experience will not create too much noise for it to actually be enjoyable. Brands
will correctly jump at the opportunity to appear directly in front of a consumer’s retinas, so it’s
imperative that Google and Sony ensure the user experience is managed properly.”
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10. Works Cited
Barnett, E. (2011, November 17). Tesco trials augmented reality. Retrieved from The Telegraph:
http://www.telegraph.co.uk/technology/news/8895923/Tesco-trials-augmented-reality.html
Chen, 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 - 'Don't do it just cos it's 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-2
Love, 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-reality
Ullanoff, 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/#text
Unknown. (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=2043
Unknown. (2012). Augmented Reality. Retrieved from Financial Times Lexicon:
http://lexicon.ft.com/Term?term=augmented-reality
Unknown. (2012, March 1). NBC Sports Group to Present 34th America’s Cup Live in 2013. Retrieved
from America's Cup: http://www.americascup.com/en/Latest/News/2012/3/NBC-Sports-Group-
to-Present-34th-Americas-Cup-Live-in-2013/
Unknown. (2012). We're Ready Where You Are. Retrieved from Zip Realty:
http://www.ziprealty.com/iphone/index.jsp
Wang, 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.php
Wren, 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
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