Augmented Reality Taking Shape

For a best-in-class example of using augmented reality (or AR) technology at retail, the majority of experts interviewed for this article pointed to the Lego Group.In that example, pictured at right, shoppers aim a Lego toy package at a kiosk that has a video camera and screen built into it. The shopper and the package appear on the screen, which triggers the AR software to recognize a code on the box and overlay a virtual, 3-D animation of the toy onto the box the shopper is holding. Lego launched close to 50 of the kiosks in its stores in Germany, the U.K. and the U.S.As John Bajorek, executive director of digital services, WD Partners, says, "They're selling the dream of what the toy can become." However, in the world of technology, the Lego example is already being trumped by new applications of augmented reality, most notably a new breakthrough from Apple that allows AR to be seen on smartphones. Companies are debating whether the kiosk or the phone is a better vessel for in-store augmented reality.But first, what is AR and how does it work? Web- or kiosk-based AR -- the type most commonly used by retailers -- uses a camera and screen (like the Lego kiosk or a home computer) to allow users to simultaneously interact with something simulated and something in the real world. The AR software "augments" reality by overlaying a 3-D computer-generated visual onto the camera's view of the real world. To work its magic, the software requires some type of recognizable marker, or "trigger," often in the form of a bar code. This code can be downloaded or printed onto something that ties in with a concept or campaign. Swiss watchmaker Tissot, for example, handed out paper watches you could put on and aim at a camera in a department store window to see how a real watch would look on your wrist.AR technology is sophisticated enough that a marker can be just about anything the software has been "trained" to recognize, be it product packaging, the tongue of a shoe, a wand, or a human face, says Larry Faragalli, director, web/multimedia division at Springthrough Technologies, Grand Rapids, Mich. In other words, there is no marker per se other than the object itself. In the Lego example, it's the box top.Kiosk vs. Mobile ARThe type of AR in the above examples uses pattern-recognition technology to analyze input from the live camera feed. There is a second type of AR called GPS-based or mobile AR, which uses GPS information to overlay your exact location with all types of data. Your smartphone camera sees the world as you see it, but augments the scene with pop-up information boxes for shops and other points of interest in view. For example, with the iPhone app Le Bar Guide, sponsored by Stella Artois, the phone's GPS will find and display the names and addresses of nearby bars and allow users to read reviews.Up until recently, smartphones were essentially limited to GPS-based AR because, with the exception of the Android, they were unable to analyze the live video feed. Therefore, "A lot of AR has been dependant on the use of a Web cam linked to a traditional computer," WD Partners' Bajorek says. WD is an international design and program management partner for multi-unit retail and foodservice brands based in Dublin, Ohio.To accommodate such a setup, in-store applications of AR "have really been dominated more by kiosks," says New York-based digital creative strategist Chris Grayson, who covers the latest AR developments on his blog, GigantiCo.tv. In mid-June, however, Apple released a previously off-limits set of application program interfaces (APIs), which allow software to have access to certain hardware functions. Now that Apple's iOS 4 makes APIs available to analyze live camera feeds, "Things that could only be done in a kiosk situation can now be done on the phone," Grayson says. Plus, "It opens opportunities that previously were not possible with just a kiosk." The Android could analyze live camera feeds "from the start," he adds, "but there was not enough market share to warrant development costs" for pattern-recognition AR. Potentially, retailers and brand owners can use AR in-store without making a hardware investment or taking up floor or aisle space, Grayson says.While he believes Apple's newly accessible APIs "have very significant implications on AR for retail," others say smartphones, with their small screens and slower processing speeds, have limitations and won't necessarily replace kiosks or larger-format AR applications. "Look at the screen on a phone vs. a 46-inch plasma TV that allows people to gather around and share the experience," says Mike Schaiman, who heads up sales and business development for Helios Interactive Technologies, San Francisco. "It's about creating an experience at retail." Meanwhile, though, "It's so early there aren't a ton of retail experiences," kiosk-based or otherwise, he says.AR ExamplesLego's kiosk "is probably one of the most talked about AR campaigns anyone has done at retail so far. To play with it firsthand is pretty impactful," Grayson says.Another AR application that generated a lot of buzz was a holographic AR digital touchscreen prototype unveiled by Intel. Through a head-to-toe transparent screen that looks like a sheet of glass, shoppers can use AR overlays to virtually shop. For example, users can select any item they can see through the screen, request their size and then pick it up at the checkout counter, where it will be waiting. Best Buy is getting broad exposure for an instant-win game that's an AR display, on tour this summer to show off the retailer's new products and technologies at concerts, festivals and sporting events. "When you arrive, you're given what looks like a Best Buy card," Schaiman of Helios says. When the card is aimed at the camera, the NASCAR race car that Best Buy sponsors pops up, surrounded by rotating logos of brand partners. Then, text pops up and tells the user whether they won an instant prize."The newness of the technology draws a crowd, and of course any time you give something away, a crowd gathers," Schaiman says. Helios provided the 3-D AR technology for the promotion.Best Buy has been experimenting with ways to incorporate AR into its marketing strategy, and in fact was an early adopter, having used it in circulars some time ago. "I would say that AR is always an option we consider when looking to include something that is interactive and technology-driven," says Paul Zindrick, Best Buy's senior event manager.Online retailers have applied the concept of the "virtual mirror" that shows how clothing, jewelry and accessories look without actually trying them on. Websites have used the virtual mirror concept to sell eyeglasses and wigs; in some cases, users simply download and print the marker or code and hold it up to a Web cam.The Swiss watchmaker Tissot brought the technology outdoors, creating a party atmosphere outside of Selfridges department store in London. Video of the event captured how consumers responded to their paper watches coming to life in the store window: "Brilliant," "amazing," "very impressive," "life-like" and "wicked" were some adjectives used by them to describe the display, which one man summed up as "a brand-new, modern way of buying a watch."The ability to virtually handle merchandise "crosses a psychological barrier in the mind of the shopper -- they're no longer just window shopping," Grayson says.Bringing AR HomeHitting on more than one touchpoint, Tissot made the paper watches, or triggers, available for downloading so consumers can "try on" watches at home.Making sure an in-store experience continues at home is one way to deepen the experience, stay top-of-mind with consumers and drive sales. For example, a furniture store could have in-store spec sheets for what's being showcased, with the dimensions and such on one side and a marker on the reverse side. Shoppers could take it home and place it on the floor where they want the piece of furniture to go, and use their smartphone to see a 3-D rendering of how it will look in that position. Figuring out how to tie in social media and other technology will make for a richer experience. "AR is as much an amalgamation of converging technology as it is technology in its own right," Grayson says. In the future, expect to see multiple markers that interact with each other, as well as combinations of gestural and augmented reality. "I definitely think we're in the primordial stage of development. It's just the tip of the iceberg right now," Schaiman says.In a year's time, though, he expects AR will have become "part of people's everyday life -- I think we'll see a quick proliferation."

Augmented Reality Taking Shape

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