Augmented Reality is Revolutionising the Business World

According to experts, 2018 is the year where AR should become a reality. When we think of augmented reality, we often think about Pokémon Go and other games. Nevertheless, today it has become an emerging technology which is changing the way businesses operate.

But what is exactly AR and VR?

It is important to note the difference between virtual reality (VR) and augmented reality (AR). VR creates a virtual environment where the user can move into a complete imagined world or into a fictitious real world whereas AR integrates virtual objects into existing surroundings.

The first commercial AR application was designed in 2008 by two German agencies in Munich for the company BMW. They designed a 2D magazine ad to promote the MINI Cabriolet. The idea was simple – once the ad was printed, the customer with the help of a webcam, could see a 3D model of the car on the sheet of paper they just printed out.

This was one of the first marketing campaigns that enabled customers to interact with a digital model in real time. The user could see the car from different angles simply by moving the piece of paper in front of the computer’s camera.

Niantic’s Pokémon Go app was a big success in 2016. It had over 20 million daily active users. Fans were able to catch Pokémons like a real-life Pokémon trainer in their own environment.  “It was the catalyst for what changed the perception for consumer use," said Matt Szymczyk, CEO for Zugara, Inc. He believes that this ap was the bridge between the change in the consumer opinion and the change in business opinion.

AR has now become an exciting technology for the mass market. According to Digi-capital the market worth for AR is going to reach $120 billion by 2020, whereas VR is going to expand up to $30 billion. This massive gap can be explained by the fact that the use of AR technology only needs the customer to own a smartphone which makes it more easily widespread than VR technology, where you need to buy an extra expensive headset.

Augmented reality has a big potential and will evolve in the future, not only for games applications but also for business-oriented apps. IKEA and l’Oréal have already launched this new type of marketing strategy. With IKEA Place there’s no need to measure your furniture anymore before purchasing it. You can easily place IKEA’s products virtually in your own room through the app. Or with Makeup Genius and Style My Hair you can try out or try on different make-up and hairstyles with your selfie picture.  

AR can improve the productivity and the profitability of diverse businesses. Here are five main areas and other efficient ways where it can be beneficial:

• E-Commerce & Retail

With AR apps consumers could try-out or try-on any product before buying them which could also reduce return costs.

• Industrial

AR could be used as a learning device for engineers. With the product prototyped in 3D it will help the manufacturer to visualise and understand easier the item. Furthermore, it could be a tool to review errors and to investigate rapidly to find a solution to a problem.

• Education & Training

By incorporating visual and interactive 3D images, AR will bring life into education and training. Medical students or graduate surgeons could train and learn on virtual bodies. Modeling difficult concepts through 3D AR and being able to see it from different angles will help students or employees to understand and learn faster.

• Travel & Tourism

Using AR would permit customers to travel without leaving their home. They could have a 360-degree glimpse of their next holiday destination, event, guest room or restaurants. AR can be used as a new way of guiding experience to explore a city or to visit a museum by giving information about what the user sees.

• Marketing

Marketers will be able to connect and engage in a whole other level with the consumer. If used creatively in their shops and storefronts or on their leaflets and billboards it can provide an immersive experience and therefore lead to loyalty of the users.

    

As consumer are getting used to this new technology and as it is available on almost any smartphone or any tablet, augmented reality offers a new opportunity for businesses to differentiate themselves from their competitors. Because it is a new unexplored market it will probably also increase the number of startups in this field. Fiction and reality are merged into AR and has become a real flourishing market today. 

by Melanie K.