Augmented reality gives physical world a virtual dimension

Screengrab of bus-stop augmented reality animation People who thought they were looking through a bus-stop window were treated to fantastical animations

For some it seems, the world is not enough.

Technology of Business

Physical objects are often static and dumb, offering little interactivity to the curious observer. Which is why the potential of augmented reality (AR) - virtual enhancement of the physical - is getting business excited.

Retailers, advertisers and industry are all now using the technology, which overlays computer-generated content - video, graphics, text, sound or GPS data - on to real-world images captured by smartphones, tablets and hi-tech glasses.

The results can sometimes be startling.

Pepsi Max's recent "Unbelievable" ad campaign, devised by agency AMV BBDO, made people waiting at a bus stop think they were seeing marauding giant robots, charging tigers and flying saucers in the street beyond.

The trick was achieved by rigging up a bus shelter in London's Oxford Street with a full HD screen and a camera on the opposite side to create a see-through effect. A live video feed of the street beyond was then overlaid with the animations.

Waiting passengers were amazed... and sometimes a little alarmed.

"The brief was simply to create an unbelievable experience in a public space," says Gregory Roekens, chief technology officer at AMV BBDO.

"The stunt was made possible using augmented reality technology and indeed we can say that in this instance AR opened up new creative possibilities."

Screen grab of Pespi Max video People saw flying saucers, rampaging robots and tigers supposedly coming towards them in the street

But Mr Roekens says that while AR will spread in advertising, it will never replace a good marketing idea.

"The key to this technology is that you've got to put the user at the centre of the experience, not the technology."

Virtual furnishing

So is AR just a gimmick? Retailers would seem to think otherwise.

Home furnishing giant Ikea, which has been blazing a trail in augmented reality catalogues, is so pleased with the customer response so far it has decided to expand its range of AR-scannable products.

Customers can flick through the 2014 catalogue, scan a product they like with their phones, then point the phone at where they'd like the furniture to sit.

A scaled image of the product is then virtually projected into the space - as seen through your camera viewfinder - so they can see if it's suitable.

Cameras show Ikea's augmented reality at work Ikea shoppers can see what furniture might look like in their homes

"The response to the catalogue's augmented reality innovations, particularly in the UK, has been tremendous," says Peter Wright, marketing manager for Ikea UK and Ireland.

"We started with 90 of our best-loved products, but due to overwhelming public demand we are more than tripling this number to 300 in our new catalogue."

And recently "clicks-and-bricks" retailer Argos introduced 300 pieces of AR content into its catalogue. Customers who have downloaded the Argos app on to their smartphones or tablets can scan the relevant pages to launch videos, 3D models, games and competitions.

Bertrand Bodson, chief digital officer at parent company Home Retail Group, says: "Building a bridge between our physical and digital channels remains a key priority for us."

The eyes have it

AR also has obvious potential in clothes retailing - being able to try on outfits, glasses and makeup virtually could save a lot of time and money.

Total Immersion's TryLive, for example, uses face-tracking technology to let consumers "try on" glasses virtually using their laptops without even having to visit a shop.

Promo pic of girl trying on virtual glasses Total Immersion's TryLive software enables shoppers to "try on" virtual glasses

The computer webcam displays your face on screen and the glasses are overlaid on the image in 3D, says Kamal Rassool, Total Immersion's sales director for the UK and Northern Europe.

Similarly, Fitting Reality offers a virtual changing room that allows shoppers to see on a TV or laptop screen what clothes might look like on their particular body shape.

The future of advertising?

According to Ori Inbar, chief executive and co-founder of, AR is useful in marketing as it drives "deeper brand engagement than traditional advertising".

"Instead of just clicking on a link, liking a Facebook page or watching a commercial, customers interact with the actual product itself," he says.

For example, Blippar is an app that lets you scan products, posters or adverts with your smartphone to trigger interactive experiences on the screen.

Blippar app on smartphone Blippar's app brings inanimate images on products to life on your smartphone

"Blipp" your Oyster card and you get real-time travel updates; blipp a Pepsi can and you can play an interactive game incorporating the packaging; blipp a press ad and you get product information and purchasing options beamed back at you.

Ambarish Mitra, Blippar's founder and chief executive, says that AR apps can yield a huge amount of useful data for firms.

"Traditionally most marketing was 'spray and pray' - no-one could tell exactly how much traction an advertising campaign had.

"But with Blippar you can see exactly how consumers are interacting with a campaign. It's a key differentiator for marketers."

The factory floor

AR is also being used to make businesses run more effectively and efficiently.

VW XL1 viewed through tablet camera Volkswagen is using augmented reality techniques on its new XL1 hybrid car

Volkswagen, for example, has introduced its "mobile augmented reality technical assistance system" (Marta) - a tablet-based application to help mechanics, developed with AR technology firm Metaio.

By overlaying scaled 3D graphics on to a live camera feed, Marta takes you step-by-step though mechanical procedures on VW's XL1 hybrid car. It also lets you know which tools to use, labels parts, and even lets you try out new components, such as different-coloured hoods.

"Before, employees tended to be trained very narrowly on specific tasks," says Angela McIntyre, research director at technology research firm Gartner.

"But AR will allow workers to be trained and use several different types of equipment on the job as they go."

Hands-free AR solutions could make work even easier, as experiments by the software firm SAP and smart glasses provider Vuzix demonstrate.

At a trial at a Bosch warehouse in Germany, real-time information is made visible right before a worker's eyes as they go about their jobs.

This allows them to know where to pick inventory, receive alerts and instructions to handle maintenance, and to get safety messages to avoid accidents in blind spots, says SAP.

Point of view of warehouse worker showing on-screen instructions Bosch warehouse workers wearing augmented reality glasses can see instructions overlaid on their field of vision

Such technology could also make assembly, field installation, testing and machine tooling safer and more efficient. But Ms McIntyre stresses that most uses of AR technology in industry are still in their infancy.

"I think it could take three to five years until we see them used in manufacturing in a larger scale way."

AR asks an awkward question of society, too: will workers accept solutions that do so much thinking on their behalf?

Blippar's Mr Mitra is unperturbed. "AR is actually enhancing people's decision making, which is making them more efficient," he maintains.

"That has been the whole job of the consumerisation of computers over the last 30 years; our lives are becoming easier and faster and this is just the next step."

More on This Story

Technology of Business

The BBC is not responsible for the content of external Internet sites

More Business stories


Business Live

    07:30: IAG results
    British Airways planes

    IAG raised its 2015 profit forecast by over 20% to 2.2bn euros for 2015, compared to the 1.8 billion euros it had said it was targeting. It says it has been helped by lower fuel costs. It expects to increase its capacity as well.

    07:27: Lloyds Banking Group

    The bank has had to set aside another £2.2bn to cover the continued cost of repaying customers who were mis-sold payment protection insurance (PPI). That was on top of the £3.1bn the year before.

    07:21: Lloyds Banking Group
    Antonio Horta-Osorio

    The massive payment to chief executive Antonio Horta-Osorio includes £1m in basic pay and an £800,000 bonus. The rest of the £11m comes from the payout of a "long term incentive plan" which gives him shares in the bank as a reward for steering it out of near insolvency.

    07:19: IAG results

    Meanwhile, IAG's operating profit for the year to 31 December 2014 is £1.03bn, a 95.3% jump on the previous year.

    07:15: Via Twitter Kamal Ahmed BBC business editor

    tweets: Breaking: Lloyds CEO Antonio Horta-Osorio total remuneration package will total £11m after shares rise by 193% since 2012.

    07:10: IAG results

    British Airways owner IAG made a profit before tax from continuing operations of £828m, it says.

    07:06: Lloyds Banking Group

    The dividend will be 0.75p per share, totalling £535m, which will go to three million shareholders. And that means £130m goes to the government.

    07:02: Lloyds Banking Group

    The annual results are out. It has announced pre-tax profits of £1.8bn - up from £415m a year ago - and will indeed resume paying a dividend to shareholders.

    06:50: Lloyds Banking Group BBC Radio 4

    William Wright of capital markets think-tank New Financial tells the Today programme that it was turning out to be a turbulent week for banks: "We've seen continued tax scandals at HSBC, continued restructuring at RBS, all change at the top of Standard Chartered - next week no doubt with Barclays we are going to see more restructuring."

    06:41: Rising rents

    Demand for rental properties is still driving up rents in the private sector. So says Sequence, a network of 300 letting agencies. It reckons that the average monthly rent outside London rose by 5% in the past year - and in London by 7%. "Large cities in particular are seeing a lot of activity as employment increases," it says.

    06:28: Lloyds Banking Group Radio 5 live
    Lloyds Bank bank branch

    Lloyds is expected to announce profits of around £2bn, but banking analyst Alex Potter tells Wake Up to Money that the dividend resuming is the real indicator for a return to health. "Actually, an awful lot of [investment] funds haven't been able to buy Lloyds shares at all while they haven't been paying a dividend, so, actually just the allowance of those potential shareholders onto the [share] register again is going to be a pretty good thing."

    06:19: Pension tax relief

    Will Labour suggest cutting pension tax relief for high earners? It seems this may be proposed by Ed Miliband when he speaks later today on how Labour might cut university tuition fees.

    06:09: IAG results Radio 5 live
    British Airways plane

    We should look forward to hearing strong results for British Airways owner IAG, according to aviation consultant John Strickland. "We should expect to hear a big jump in profitability", he says on Wake up to Money, because the firm is "in a very solid state".

    06:00: Ian Pollock Business reporter, BBC News

    Good morning. It's Friday. Always a good day as far as I'm concerned. Oh, and the Land Registry's house price figures for England and Wales will be out later this morning.

    06:00: Good morning Tom Espiner Business reporter

    Some interesting stories coming up today. Expect full year results from Lloyds Banking Group, which is expected to resume paying a dividend to shareholders for the first time since the financial crisis in 2008. British Airways owner IAG is to post its full year results too.



From BBC Capital


  • TomatoesClick Watch

    The smart garden that fits inside your house and provides fresh healthy food

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.