Recognising Augmented Reality Business Opportunities

Augmented Reality (AR) SBTUG Sydney
Recognising Business Opportunities 30 Jun 2010

AUGMENTED REALITY
Recognising Business Opps

Gary Hayes

© Gary Hayes CCO MUVEDesign & Personalizemedia.com
gary@personalizemedia.com - personalizemedia.com - muvedesign.com
Thursday, 1 July 2010


Service provider, content producer, strategist, director, web 2.0 ‘generator’
•80-90s Music Composer, Producer, Lecturer, Filmmaker then multi media editor BBC
•95- 03 BBC Senior Dev Producer, New Media & Broadband TV - 8 yrs
•Personal TV / standards - TV-Anytime, MPEG 7/21 (metadata standards)
•2004-05 - Interactive TV Producer, LA USA -
•2005 - 10 Lab for Advanced Media Production, Founding Director LAMP & MultiPlatform Head at AFTRS
•2006 - MUVEDesign, Virtual World / Game Creation, Augmented & Alternate Reality Games Design & Production
•2005 - 9th Top Blog Media and Marketing Australia (139th worldwide AdAge power150)



My presentation
•What is AR - definitions?
•Current landscape & issues
•Business Opportunities - 16+ biz mods
•If time some more recent case studies



What is Augmented Reality?



What is Augmented Reality?
Information, 3D models or live action blended with and/or overlaid onto the physical
world around us and physically manipulated or filtered in real time. A camera &
attached screen is used to view the combination of real world and metadata or rich
media. Devices or systems commonly used for AR include:

■ Mobile devices with inbuilt cameras such as iPhone, DS Lite, PSP or Android
■ A head mounted display HMDs (eg: glasses or futuristic contact lenses) attached to
a wearable networked computer
■ A PC or Mac with webcam
■ A games console with camera accessory
■ A large TV screen with advanced Set Top box and Web cam
■ Others in development



Augmented
Reality

more than technology



Key Types of Augmented Reality
GARY’S FIVE TECHNICAL TYPES OF AUGMENTED REALITY

1.Surface or Haptic – The most understandable form of ‘reality that is augmented’ would
be screens, floors, walls etc that respond to the touch of people in them providing them with virtual
real time information or collaboration

2.Pattern, Image or Marker – The AR system performs simple pattern recognition on a
shape, marker (usually on a framed card in the real world scene) or face and replaces it with a
static or moving element e.g: a 3D model, info, audio, video stream or loop etc: You view the
‘items’ in the scene with you

3.Outline or Recognition – This is where your hand, eye or body outline is picked up
and seamlessly ‘merged’ with the virtual elements. Simple example where you can pick up a 3D
object that doesn’t exist because the system is tracking your hand outline.

4.Location, Wayfinding, Geo-Location – Based on detailed GPS or
triangulation location & position/view of the camera/device the AR system can overlay information
precisely over buildings or people as you move through real space.

5.Hologram – Using ‘smoke & spinning mirrors’ literally in some cases, virtual or real items are
‘projected’ into the physical space you are in and can be interactive with based on cameras
tracking real world impulses e.g: hand gestures or audio signals



When the data ‘cloud’ descends



BEFORE BIZ IMPLICATIONS
a look at the recent landscape
...

but before that a little look
at the very near future



Info at http://www.personalizemedia.com/augmented-worlds-video-part-1-recognition/

http://www.youtube.com/watch?v=dkYC1kBPR6o



GROWTH - LOCATION, WAYFINDER, ARGs,
Layar Platform grows to 1.000 layers, covering
every country in the world
This week Layar reached three major milestones:
1.000 layers published, 3.000 layers in testing and
4.000 active developers. The platform growth has
now accelerated to over 20% per month. These
layers bring augmented content to every country
in the world.

Layar’s usage shows growth and maturity with
700K active users
In the last 6 months 1.6 million people used Layar at
least once. The active user base amounts to 716.000
people who used Layar in the past 30 days. The ALSO FOURSQUARE - Today we closed on a
Layar Reality Browser is moving from a cool $20m Series B round with Union Square Ventures,
application to show friends to an application that is a O’Reilly AlphaTech Ventures and our newest
service of value in daily life. partner, Andreessen Horowitz.



THE SOCIAL COMPONENT - will drive uptake



THE GOOGLE INFLUENCE - patents for AR insertion?

If the site allows it,
will virtual AR
advertising take off?



THE GOOGLE INFLUENCE
The Jan 2010 patent allows overlaying of new ads
over old streetview ad sites. AR implications?
"The link can be associated with a property owner, for example the property owner
which owns the physical property portrayed. The link can alternatively be associated
with an advertiser who placed the highest bid on the image recognized within the
region of interest (e.g., poster, billboard, banner, etc.). Any portion of the geographic
display image in which the region of interest is located can be selectable (e.g., hot-
linked). For example, the image of the coffee shop can be hot-linked to an
advertisement for the coffee shop."

[0038]Alternatively, or additionally, explicit user feedback may be used as a factor to
select one of the links included in a comment. When a comment is presented to a user
in connection with presentation of a particular document, the user may be given the
opportunity to provide explicit feedback on that comment. For example, the user may
indicate whether the comment is meaningful (e.g., a positive vote) or not meaningful
(e.g., a negative vote) to the user (with respect to the particular document) by selecting
an appropriate voting button. This kind of feedback may be used to select one of the
links of the comment. If users indicate, via appropriate voting, that a comment is
meaningful (or not meaningful) with regard to a particular document with which the
comment is presented, this may provide evidence that the comment contains content
relevant (or not relevant) to the content of the particular document. By using explicit
user feedback to select one of the links, server 220 may select the link leading to the
document with content that best matches the content of the comment.

http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=/netahtml/PTO/search-adv.html&r=2&p=1&f=G&l=50&d=PG01&S1=google.AS.&OS=an/google&RS=AN/google



DREADED MARKER AR - superficiality may lose users



CLUNKY PRODUCTION - some companies helping

Sydney based buildAR and Inscribe
and MUVEDesign etc: making it
easier for small business to enter the
world of geo-location AR, classiﬁeds
as well as marker & outline based AR



EMERGENT TECHNOLOGIES - coming of age?

No faces, baby
We don't do face recognition. Besides the technological challenges there are also serious privacy issues.
Millions of things
We currently have over 10 million items in our database for recognition. In comparison, the English version of Wikipedia
has about 3 million articles in total.



OTHER ISSUES - too many to discuss tonight
Open Data vs Closed Data
eg: data.gov, datastore, white pages or commercial aggregators

Weak early UIs
Poor interfaces may be counter productive at the moment

Privacy
regulation for facial or product recognition

Proprietary Technology
eg: facial recognition in iPhoto (others: Polar Rose, TaT The Astonishing Tribe). Face.com, Converse
Kooaba recognition technology
PTAM - analyses live video feeds - licensed by Qderopateo (engine for their phone)
Everyscape (get video) like Google Earth mapping streets and businesses...
Google offered a patent in Jan 10 to overlay ads over street view maps



Augmented Reality
Sixteen Business Models
and example Applications



IN SITU: Aiding sale by seeing projects & products placed in the environment before completion. The benefit of a customer or client seeing a
finished project, before it is complete. For example 1) real estate agents can scan and show an empty house full of stylish furniture or 2) an architect who
can show the billion dollar client the skyscraper as a model perfectly aligned with the other buildings on the empty site and 3) Customers who want to see
what the clothes look like on ‘them’ (as in the Zugara video above and Cisco below). The list of applications goes on.

iLiving Metaio

Experiential Design Lab



COOPERATION : Service industry for augmented virtual meetings. We are all familiar with video conferencing, a few have
dabbled in 3D virtual world get togethers but AR meetings are a game changer. The potential here using ‘discrete’ personal screens is to have the
inevitable remote meeting with live feeds of your colleagues, blended into your room – pay-per-ARmeet



UTILITY : Selling life enhancing AR applications perceived as useful. Development and commercial sale of applications such as underground
train orientation, bus stops & times, traffic alerts, airport gates & plane arrivals etc: all overlaid in real space. Sometimes called AR browsers as they cross
reference what or who you are looking at with anything or everything off the web or like this UPS example allows you to see if your ’stuff’ will fit the ‘virtual’
postal boxes.
Layar & Junaio



AUGMENTED EVENTS: Pay-per-use of enhanced sport or pop concerts. At live events spectators can pay and
then scan their view of the ‘match’ for the latest information on sporting achievement or pop star gossip and of course tracking trails or watching replays in
situ, merged over say a static real sporting scene.

IBM Seer - Wimbledon 2010

Junaio World Cup 2010



TRAINING : Hands-on with complex equipment and work scenarios. Using ‘outline’ recognition this allows us to be virtually ‘hands-on’
with complex equipment in difficult-to-practise work scenarios. Bomb disposal, surgery, flight simulation. . Indeed according to wikipedia the actual phrase
Augmented Reality was coined by Tom Caudell in 1992 while at Boeing where workers trained to wire aircraft on AR systems. A massive industry for the
developer community charging b2b rates.

BMW training

Toyota IQ



3D VIRALS: Branded company or personal promotion & ads using ‘cool’ 3D toys. Pattern based 3D model that entertains and is
spread virally. The YouTube moment as a million links to cool ‘3D stuff’ that takes place next to you. Already we see some AR apps that allow you to
record scenes of you interacting with said ‘3D viral’ and pass those around too, titillation, quirky giveaways– JibJab-type, put ‘you’ in the cartoon but
revered, they are with you in 3D space.

Smart Grid

Esquire Magazine



SOCIAL GAMING: Both connotations of the word, pay-per-play mixed reality games in physical space. The potential to run
pay per play (e.g: virtual paintball style) games in physical location and also live connected betting on sports or other competitive play – e.g: You point your
iPhone at the horse and wirelessly place a bet – mid race! (odds adjusted of course) or using basic surface AR you play with others in a new kind of
‘games’ room!

Sony Invisimals

MS Kinect



BLENDED BRANDING: The equivalent of hoardings, virtual poster ads. Once given a reason to be scanning
outdoor areas with their AR devices the potential to deliver topical, timely and relevant ads or branding into the scene. Again care must be taken as AR
spam (like social network spam) will quickly irritate, but like free to air TV, using various sponsored or freemium biz models will mean a certain amount of
branding will be acceptable.

Postbus Greater Street Safety Campaign



LOCATION LAYERS: Blended guides to new places, tourism, enhanced travelling or themed space. For travellers just
arrived at your city, theme park or other experience you can provide them with pay for tools that will help them take the most ‘mutually beneficial’ route
after they arrive. Free data from wikipedia, local bloggers or more commercial entities add depth.

Vadinia AR for the Blind

Wikitude

Kooaba External Recognition



VIRTUAL DEMO: Display to promote sale, of product in pre-release or remotely via catalogue etc: To promote advance sales
before the consumer gismo hits the stores, an AR display or the device/s so potential customers can manipulate it, see it from all sides, even customise
the order. We may see future stores displaying the majority of items on the shop floor as AR while the item is shipped to your house before you get home!
The reverse of this, an AR catalogue (as in the Ikea video below) that pops up models to help you build or see the product in 3D.

Metaio Catalogue

Lego ‘whats in the box’ terminals



EXPERIENTIAL EDUCATION: Pay-per-visit educational services to museums, ancient sites etc: Pay-
per-visit (ppv) to visit highly experiential museums, theme parks, zoos, ancient sites or exhibitions but with a higher purpose of providing deeper levels of
information & visual sense than a simple plague or hard to follow guide book ever will. The sleepy animals in the zoo come to life, the ancient fossil is
animated into an overlaid Google Earth, the Battle is enacted ‘on the original battlefield.

Digital Binocular Station

Handheld Augmented Reality Project (HARP)

Metaio Louvre Museum App



RECOGNITION & TARGETING: Pushing ‘relevance’ to outdoor consumers – facial recognition linked
to online data. To be used with care! It will be interesting to see how privacy laws affect this but in a pushed model you could ‘scan’ visitors to your store,
identify their faces, do background links to their ‘social networks’ followed by personal targeting while they are shopping. We all know this is going to
happen!

Recognizer

TwittARound



ENHANCED CLASSIFIEDS: An AR directory that promotes local 3rd parties product & services overlaid at
the location. One of the obvious apps where someone in a city or town looking for a specific item could be ‘guided’ to it. A very affiliate model where the
company that owns the Augmented Reality listing mechanism will take a slice of any fulfilled sales. A lot more to this of course.

FutureShop Blo



PERSONALIZED SHOPPING: Walking around stores made relevant, opt in personalization and
targeting. The oft mentioned Minority Report example. But in the pulled model, here you can deliver information to potential customers scanning stores,
streets or shelves for discounted or personally relevant products.

Zugara Social Shopper

Tissot AR ‘tryvertising’



INTERTAINMENT : New form experiential TV and films. Following on from my ‘AR story’ post, we know people will pay a
premium for a new kind of ‘film’ experience where you ‘live the experience’. How about one that plays out at ‘your’ place. Semi customised marker or
location AR apps will layer Brad or Angie into your lounge, onto the coffee table or your ‘composited’ in real time into the latest Mixed Reality TV show.
Combined with 3D viewing technology will make Blu-Ray seem so 18th century.

Eye of Judgement - PS2

Dance Book



UNDERSTANDING SYSTEMS: Creating AR for internal or exploded views of complex objects.
Primarily useful in training or helping sell something where physically taking it apart is not possible a view of a car or other complex object can be
enhanced. Labels or even an exploded view in real time can help get the message across.



Emotional AR with MS XBox Kinect
The Dimitri Project was the codename for a video game by Lionhead
Studios that for many years had an unknown status, before surfacing
in 2009 as the technology demo "Milo" for Microsoft's Project Natal.
[1]

Work on The Dimitri Project started in 2001 after Lionhead had
finished work on Black & White, and had been reported as being
cancelled, however a 2006 interview with Peter Molyneux confirmed
that that was not the case.[2] Development on Dimitri was again
reported as stopped with reports that the game never got to a "full-
team" stage. It was reported that Dimitri had been replaced by a
second project, Project X, which may lean on aspects of Dimitri but is
distinct.

In an interview with Eurogamer at E3 in June 2009 Peter Molyneux
confirmed that The Dimitri Project had become the "Milo" technical
demo used to demonstrate Microsoft's Project Natal which was
shown at that years E3. Milo is a living AI that reacts to body
movements and facial expressions. Milo is a program that recognises
people, introduces himself to new people, and allows people to have a
conversation with him. Drawing pictures on paper and holding to
"Natal" allows it to scan the image and create a representative
onscreen that Milo can give his opinion on and interact with as a real
drawing. that for many years had an unknown status, before surfacing
in 2009 as the technology demo "Milo" for Microsoft's Project Natal.

Work on The Dimitri Project started in 2001 after Lionhead had
finished work on Black & White, and had been reported as being
canceled, however a 2006 interview with Peter Molyneux confirmed
that that was not the case. Development on Dimitri was again reported
as stopped with reports that the game never got to a "full-team"
stage. It was reported that Dimitri had been replaced by a second
project, Project X, which may lean on aspects of Dimitri but is distinct.

In an interview with Eurogamer at E3 in June 2009 Peter Molyneux confirmed that The Dimitri Project had become the "Milo" technical demo used to demonstrate Microsoft's Project Natal which was shown at
that years E3.Milo is a living AI that reacts to body movements and facial expressions. Milo is a program that recognises people, introduces himself to new people, and allows people to have a conversation
with him. Drawing pictures on paper and holding to "Natal" allows it to scan the image and create a representative onscreen that Milo can give his opinion on and interact with as a real drawing.

Project Natal:
(pronounced "nuh-tall" is the code name for a "controller-free gaming and entertainment experience" by Microsoft for the Xbox 360 video game platform. Based on an add-on peripheral for the Xbox 360
console, Project Natal enables users to control and interact with the Xbox 360 without the need to touch a controller, such as through body gestures or spoken commands.
The project is aimed at broadening the Xbox 360's audience beyond its hardcore base of young males. Project Natal was first announced on June 1 at the 2009 Electronic Entertainment Expo. Release pricing
and timing have not been announced, but the device is not expected to be available until at least 2010.
An approximately nine-inch wide horizontal bar connected to a circular base with a ball joint pivot, the Project Natal sensor is designed to be positioned lengthwise above or below the video display. The
sensor features a "RGB camera, depth sensor, multi-array microphone, and custom processor running proprietary software," which provide full-body 3D motion capture, facial recognition, and voice
recognition capabilities.
The "Project Natal" sensor's microphone array enables the Xbox 360 to conduct multi-directional voice location tracking and ambient noise suppression, allowing for things such as headset-free party chat
over Xbox Live. The depth sensor consists of an infrared projector combined with a monochrome CMOS sensor, and allows the Project Natal sensor to see in 3D under any lighting conditions.



Three recent Case Studies



RECENT CASE STUDIES Some companies approaching real relevancy

“In the case of Malaysia Airlines the app displays the cheapest deals on the airline from the user’s nearest airport to
those further afield. What is interesting about the use of augmented reality by an airline is better understood by what
Malaysia has in store further down the line. Officials say the first incarnation of the app (deals) will be developed over
time so passengers can use features related to their booking. For example, a user will be able to switch on the AR
function at an airport and find where the check-in desk is located or the direction of the departure gate, lounge,
baggage claim and other services.”
http://www.tnooz.com/2010/06/23/news/malaysia-airlines-dabbles-in-mobile-augmented-reality-with-deals-and-directions/



RECENT CASE STUDIES
Early days tracking usage of ‘marker’ campaigns,
but as before, need to be careful of superficiality

“The top-line metrics of success that Best Buy cited
were:
• About 6,500 people tried out Best Buy’s
augmented reality insert — more than double
the company’s expectations (out of a total print
circular distribution of around 43 million)
• 78% of the people that actually went to the site
wanting to see the experience had a webcam.
• A high click-through — 12% — to other pages
(from the core AR page): the Twelpforce page,
the Next Class computing page or to the dot-
com site for the Toshiba computer itself
• Going to do more (next one in Sept is the rumor)
so to continue to learn and refine program”

http://www.shoplocalblog.com/2009/08/14/best-buy-sees-limited-ﬁrst-time-success-with-augmented-reality-test/



RECENT CASE STUDIES
The big location AR driver will be location based on
the filtering of trusted recommendations

“Urbanspoon (now part of Citysearch/IAC) just
released an app update that includes AR for the
iPhone 3GS. Called “Scope” it shows a tab at the
bottom of the screen that launches the camera-
based experience. Hold the phone up and through
the camera you see the popularity of restaurants
and distance, indicated by the size of the circle
(image below). If you point the phone toward the
ground, you’ll get a traditional map instead. You can
also manually locate yourself for greater precision
(so that you can see the restaurants immediately
near you) if GPS isn’t working well.”

http://searchengineland.com/battle-of-the-augmented-reality-apps-
urbanspoon-layar-wikitude-wheremark-more-27806?
utm_source=feedburner&utm_medium=feed&utm_campaign=Feed
%3A+searchengineland+%28Search+Engine+Land%29



Thanks

Questions?

These slides on slideshare
http://www.slideshare.net/hayesg31


Recognising Augmented Reality Business Opportunities

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