Body of Project

Augmented Reality Advertisement 2012

Chapter 1Research

Methodology

1.1 Introduction

NL Dalmia Institute of Mgmt Studies and Research Page 1

The chapter focuses on the

core objective of study and

complete methodology

adapted for the research.

It gives a direction to what

tasks to be accomplished,

how it’s going to be done

and in what time.

Finally, it also covers the

limitations of the study.


Augmented Reality Advertisements have become the buzz for 2010. Marketers started to

use Augmented Reality (AR) to promote products via interactive AR applications. The

concept of Augmented Reality is becoming a big deal for businesses as it is the idea that

locations, devices and even the human body will be augmented by linking and overlaying

additional information on top of regular reality. It is said that Augmented Reality Advertising

will simplify our lives and will facilitate decision making process by reducing the time

dedicated to information search or looking for alternatives.

This research was conducted to study and analyze the change that’ll be brought in the

Advertising industry with the increasing use of Augmented Reality Ads. The research was

also carried out to study the future of this concept along with its present popularity among

the consumer sector as well as its viability options.

1.2 Statement of Purpose

As media vehicles continue to fragment and mesh within each other, marketers need to

understand the implication of various parameters guiding this fragmentation basis the

consumer behavior. The challenge for a marketer is to have a deeper understanding of

every media vehicle so that they can selectively target right customers for their message

delivery.

Augmented Reality advertising has gained a lot of popularity as an innovative effective tool.

However, due to lack of awareness and technical barriers this concept has had to face

speculation. This research was primarily conducted to analyze the consumer reaction,

popularity and future applications of Augmented reality advertising.

1.3 Objectives

The objectives of this project are the following:

1. To study the consumer reaction towards Augmented Reality Advertisements.

2. To study the popularity and viability of the concept of Augmented Reality

Advertisements

3. To study the future and success of Augmented Reality Advertisements

1.4 Research Design



For any researcher the research methodology is the most important criteria to decide

before the actual research process starts. The Research Design for this report is Descriptive

because it provides all the opportunities to cover all the aspects that are required to

conduct the research and get an appropriate outcome.

Descriptive research includes surveys and fact – finding enquires of different kinds. The

major purpose of descriptive research is description of the state of affairs as it exits at

present. In social science and business research we often use the term Ex post facto

research for descriptive research studies. The main characteristic of this method is that the

researcher has no control over the variables; he can only report what has happened or what

is happening.

1.5 Hypothesis

A hypothesis is a proposed explanation for an observable phenomenon. The various

hypotheses tested in this research are mentioned below:

Hypothesis 1:

Ho: Use of AR advertising application is not dependent on the users’ age.

H1: Use of AR advertising application is dependent on the users’ age.

Hypothesis 2:

Ho: Consumer reaction about the popularity of AR advertising is not affected by the actual

use of AR application

H1: Consumer reaction about the popularity of AR advertising is affected by the actual use of

AR application

Hypothesis 3:

Ho: All the factors of an ad do not equally attract a user to use AR as an advertising tool

H1: All the factors of an ad equally attract a user to use AR as an advertising tool.

1.6 Methodology



a. Data collection sources:

Primary: Data collected through questionnaires.

Secondary: Secondary data was collected from the Research papers from

Telibrahma, ABI Research and Juniper Research.

b. Sampling Plan:

Sampling population: Population familiar with the concept of ‘Augmented

Reality’.

Sample size: The study is based on 270 respondents.

Sampling unit: Each was selected in the sample had prior information about

‘Augmented Reality’ and were familiar with its use as an advertising tool.

Sampling method: Non probability convenience sampling.

Geographical Scope: Areas were selected randomly across the country. All

of the respondents were taken from Mumbai due to time constraint.

Research Instruments for data collection: Questionnaire

Analytical tool: Graphs like pie charts, bar graphs, tables etc. have been

used to analyze & interpret the data.

Statistical tools: Tests such as chi-square test and ANOVA were used to

analyze data and test the hypotheses.

1.7 Assumptions

The research was based on the following assumptions:

The selected samples represent the whole population.

We have assumed that people who were selected for survey would give true

responses while filling the questionnaire

The selected samples are those who have already been familiar to the concept of

Augmented Reality advertising.

1.8 Beneficiaries of the study



The study that has been conducted could be of use for the following groups:

It would be helpful for the companies to

Understand the concept of AR and use it as an advertising tool to advertise their

product in a more interactive and creative manner.

It could benefit the AR advertising agencies to understand the drawbacks and

consumer perception of AR advertising and hence improve upon the new

advertisements that can appeal a larger population.

It is beneficiary to the common man who can get familiar with the concept of AR

advertising.

1.9 Limitations of the study

Personal bias : Some respondents may have had personal bias due to which they may not

have given the correct information and due to which the right conclusion may not be have

been derived at.

Sample size: The Sample size taken is only 270; which may not result in very accurate

results.

Time limit: The time limit taken for conducting the research was less, it could also be one of

the limitations of the study



Chapter 2AUGMENTED

REALITY


The chapter includes

literature about augmented

reality.

A brief description is also

provided regarding the

applications of Augmented

Reality.


2.1 Introduction to Augmented Reality

Augmented reality (AR) is a technique that combines a live views in real-time with virtual

computer-generated images, creating a real-time àugmented' experience of reality.

Augmented reality has been around since the 1990s. It is a term more closely related to the

term `reality' than to the term `virtual reality', as it takes `reality' as a starting point, then

adding to it (making it a subset of `mediated reality'). Augmented reality can be thought of

as the “middle ground" between Virtual Environments (completely synthetic) and Tele

presence (completely real). Other terms used could have been ènhanced reality' or

àmplified reality'.

For the last few years, augmented reality applications have become popular on mobile

phones, as these devices have gotten the hardware to facilitate augmented reality

applications. An example of augmented reality is Layar, which adds content to the images of

the camera of a mobile phone, e.g. nearby restaurants or additional museum information.

Older applications use Head Mounted Displays to display extra information on small display

in front of a person.

2.2 Definition of Augmented Reality

More formally, augmented reality is considered to include the following three

characteristics:

Combines real and virtual

Is interactive in real time

Registers in 3-D

However, the above definition is not the single accepted definition. Especially since the

increased interest of the general public in augmented reality, the definition has blurred a

lot. A lot of Businesses make use of the hype surrounding the term as to include the term in

any product that adds something to any view of reality. A fine line has to be drawn between

applications that are augmented reality and applications that are not augmented reality. It

combines real and virtual, but might not interactive and might not register in 3D. Even in

games the term augmented reality is being used to describe real-time information additions

to an in-game environment.



Augmented reality (or AR) is most simply defined as integrating digital content with live

video streams. Much like virtual reality, the goal is to engage the user and make them part

of the experience. With AR, however, the user’s real environment is the canvas for the

digital elements. Using a simple web cam, you can hold out your arm with a special printed

marker sitting in your hand and a 3D character can stand on your palm, talk, move, and

interact. You can be part of the action, not just view an artificial world through a monitor.

AR as a concept has been around for several years but has recently begun to see broad

ranging usage. It is being used in applications from product marketing, advertising, video

gaming, product visualization, toys, and providing localized information.

Augmented Reality (AR) is a growing area in virtual reality research. The world environment

around us provides a wealth of information that is difficult to duplicate in a computer. This is

evidenced by the worlds used in virtual environments. Either these worlds are very

simplistic such as the environments created for immersive entertainment and games, or the

system that can create a more realistic environment has a million dollar price tag such as

flight simulators. An augmented reality system generates a composite view for the user. It is

a combination of the real scene viewed by the user and a virtual scene generated by the

computer that augments the scene with additional information. The application domains

reveal that the augmentation can take on a number of different forms. In all applications the

augmented reality presented to the user enhances that person's performance in and

perception of the world. The ultimate goal is to create a system such that the user cannot

tell the difference between the real world and the virtual augmentation of it. To the user of

this ultimate system it would appear that he is looking at a single real scene. Figure 1 shows

a view that the user might see from an augmented reality system in the medical domain. It

depicts the merging and correct registration of data from a pre-operative imaging study

onto the patient's head. Providing this view to a surgeon in the operating theater would

enhance their performance and possibly eliminate the need for any other calibration

fixtures during the procedure.



Figure 1 - Simulated augmented reality medical image

2.3 Augmented Reality vs. Virtual Reality

Virtual reality is a technology that encompasses a broad spectrum of ideas. It defines an

umbrella under which many researchers and companies express their work. The phrase was

originated by Jaron Lanier the founder of VPL Research one of the original companies selling

virtual reality systems. The term was defined as "a computer generated, interactive, three-

dimensional environment in which a person is immersed." (Aukstakalnis and Blatner 1992)

There are three key points in this definition. First, this virtual environment is a computer

generated three-dimensional scene which requires high performance computer graphics to

provide an adequate level of realism. The second point is that the virtual world is

interactive. A user requires real-time response from the system to be able to interact with it

in an effective manner. The last point is that the user is immersed in this virtual

environment. One of the identifying marks of a virtual reality system is the head mounted

display worn by users. These displays block out the entire external world and present to the

wearer a view that is under the complete control of the computer. The user is completely

immersed in an artificial world and becomes divorced from the real environment. For this

immersion to appear realistic the virtual reality system must accurately sense how the user

is moving and determine what effect that will have on the scene being rendered in the head

mounted display.

The discussion above highlights the similarities and differences between virtual reality and

augmented reality systems. A very visible difference between these two types of systems is



the immersiveness of the system. Virtual reality strives for a totally immersive environment.

The visual, and in some systems oral and proprioceptive, senses are under control of the

system. In contrast, an augmented reality system is augmenting the real world scene

necessitating that the user maintains a sense of presence in that world. The virtual images

are merged with the real view to create the augmented display. There must be a mechanism

to combine the real and virtual that is not present in other virtual reality work.

The computer generated virtual objects must be accurately registered with the real world in

all dimensions. Errors in this registration will prevent the user from seeing the real and

virtual images as fused. The correct registration must also be maintained while the user

moves about within the real environment. Discrepancies or changes in the apparent

registration will range from distracting which makes working with the augmented view more

difficult, to physically disturbing for the user making the system completely unusable. An

immersive virtual reality system must maintain registration so that changes in the rendered

scene match with the perceptions of the user. Any errors here are conflicts between the

visual system and the kinesthetic or proprioceptive systems. The phenomenon of visual

capture gives the vision system a stronger influence in our perception. (Welch 1978) This

will allow a user to accept or adjust to a visual stimulus overriding the discrepancies with

input from sensory systems. In contrast, errors of misregistration in an augmented reality

system are between two visual stimuli which we are trying to fuse to see as one scene. We

are more sensitive to these errors (Azuma 1993; Azuma 1995).

Milgram (Milgram and Kishino 1994) describes a taxonomy that identifies how augmented

reality and virtual reality work are related. He defines the Reality-Virtuality continuum

shown as Figure 2.

Figure 2 - Milgram's Reality-Virtuality Continuum



The real world and a totally virtual environment are at the two ends of this continuum with

the middle region called Mixed Reality. Augmented reality lies near the real world end of

the line with the predominate perception being the real world augmented by computer

generated data. Augmented virtuality is a term created by Milgram to identify systems

which are mostly synthetic with some real world imagery added such as texture mapping

video onto virtual objects. This is a distinction that will fade as the technology improves and

the virtual elements in the scene become less distinguishable from the real ones.

Milgram further defines taxonomy for the Mixed Reality displays. The three axes he

suggests for categorizing these systems are: Reproduction Fidelity, Extent of Presence

Metaphor and Extent of World Knowledge. Reproduction Fidelity relates to the quality of

the computer generated imagery ranging from simple wireframe approximations to

complete photorealistic renderings. The real-time constraint on augmented reality systems

forces them to be toward the low end on the Reproduction Fidelity spectrum. The current

graphics hardware capabilities cannot produce real-time photorealistic renderings of the

virtual scene. Milgram also places augmented reality systems on the low end of the Extent

of Presence Metaphor. This axis measures the level of immersion of the user within the

displayed scene. This categorization is closely related to the display technology used by the

system. Each of these gives a different sense of immersion in the display. In an augmented

reality system, this can be misleading because with some display technologies part of the

"display" is the user's direct view of the real world. Immersion in that display comes from

simply having your eyes open. It is contrasted to systems where the merged view is

presented to the user on a separate monitor for what is sometimes called a "Window on the

World" view.

The third, and final, dimension that Milgram uses to categorize Mixed Reality displays is

Extent of World Knowledge. Augmented reality does not simply mean the superimposition

of a graphic object over a real world scene. This is technically an easy task. One difficulty in

augmenting reality, as defined here is the need to maintain accurate registration of the

virtual objects with the real world image. This often requires detailed knowledge of the

relationship between the frames of reference for the real world, the camera viewing it and



the user. In some domains these relationships are well known which makes the task of

augmenting reality easier or might lead the system designer to use a completely virtual

environment. The contribution of this thesis will be to minimize the calibration and world

knowledge necessary to create an augmented view of the real environment.

2.4 Applications of Augmented Reality

Devices used for Augmented Reality are commonly:

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 wear-able 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.

2.5 An Augmented Reality System

This section will describe the components that make up a typical augmented reality system.

This discussion will highlight how augmented reality is an area where multiple technologies

blend together into a single system. The fields of computer vision, computer graphics and

user interfaces are actively contributing to advances in augmented reality systems.

Typical Augmented Reality System

A standard virtual reality system seeks to completely immerse the user in a computer

generated environment. This environment is maintained by the system in a frame of

reference registered with the computer graphic system that creates the rendering of the

virtual world. For this immersion to be effective, the ego-centered frame of reference

maintained by the user's body and brain must be registered with the virtual world

reference. This requires that motions or changes made by the user will result in the

appropriate changes in the perceived virtual world. Because the user is looking at a virtual

world there is no natural connection between these two reference frames and a connection

must be created. (Azuma 1993) An augmented reality system could be considered the

ultimate immersive system. The user can not become more immersed in the real world. The



task is to now register the virtual frame of reference with what the user is seeing. This

registration is more critical in an augmented reality system because we are more sensitive

to visual misalignments than to the type of vision-kinesthetic errors that might result in a

standard virtual reality system. Figure 4 shows the multiple reference frames that must be

related in an augmented reality system.

Figure 3 - Components of an Augmented Reality System

The scene is viewed by an imaging device, which in this case is depicted as a video camera.

The camera performs a perspective projection of the 3D world onto a 2D image plane. The

intrinsic (focal length and lens distortion) and extrinsic (position and pose) parameters of

the device determine exactly what is projected onto its image plane. The generation of the

virtual image is done with a standard computer graphics system. The virtual objects are

modeled in an object reference frame. The graphics system requires information about the

imaging of the real scene so that it can correctly render these objects. This data will control

the synthetic camera that is used to generate the image of the virtual objects. This image is

then merged with the image of the real scene to form the augmented reality image.



The video imaging and graphic rendering described above is relatively straight forward. The

research activities in augmented reality center around two aspects of the problem. One is to

develop methods to register the two distinct sets of images and keep them registered in real

time. Some new work in this area has started to make use of computer vision techniques.

2.6 Possible Future Applications

Augmented Reality is used in a number of ways, especially outside of business applications.

However, it is interesting to see in which ways the technology will develop in commercial

ways.

Some interesting possible future applications include:

A store item-finder app overlay on a store's map.

Advertisements on mobile phones based on a person's location (which also raises

the question of whether this is Augmented Reality or not, see the question raised

above).

Customer reviews on shop items shown in stores.

Fig 4: Virtual AR view

Getting reviews on shop items by scanning a barcode in-store with a mobile phone.

Modeling of clothes by people at home, making internet purchasing of clothes

easier.

Generation of 3D models of rooms and furniture enabling stylists to style the room.

Creation of mobile maps of a region by local tourist boards.

Addition of information to exhibitions by museums.



2.7 Impact

Augmented reality has helped change the world now in many ways. It has the power to

reach and engage people in ways that people might seem impossible a few years back. Now,

augmented reality can be employed in almost every industry and across a wide variety of

applications and situation. It helps solve many difficulties and problematic situations people

might have had in the past. Although not everyone is using it yet, I believe augmented

reality might be something almost everyone in the world might use someday.

2.8 Drawbacks of Augmented Reality

Current performance levels (speed) on today’s [2009] iPhone or similar touch devices

like the Google G1 will take a few generations to make Augmented Reality feasible as a

general interface technique accessible to the general public.

Content may obscure or narrow a user’s interests or tastes. For example, knowing

where McDonald’s or Starbucks is in Paris or Rome might not interest users as much as

“off the beaten track information” that you might seek out in travel experiences.

Privacy control will become a bigger issue than with today’s information saturation

levels. Walking up to a stranger or a group of people might reveal status, thoughts

(Tweets), or other information that usually comes with an introduction, might cause

unwarranted breaches of privacy.

2.9 Benefits of Augmented Reality

Augmented Reality is set to revolutionize the mobile user experience as did gesture

and touch (multi-modal interaction) in mobile phones. This will redefine the mobile

user experience for the next generation making mobile search invisible and reduce

search effort for users.

Augmented Reality, like multi-modal interaction (gestural interfaces) has a long history

of usability research, analysis and experimentation and therefore has a solid history as

an interface technique.

Augmented Reality improves mobile usability by acting as the interface itself, requiring

little interaction (this Interaction Design technique is known as Direct Manipulation).



Imagine turning on your phone or pressing a

button where the space, people, objects around

you are “sensed” by your mobile device- giving

you location based or context sensitive

information on the fly.

Chapter 3AUGMENTED


The chapter includes literature about augmented reality advertising.

It also deals with all the advertising campaigns in India.


REALITY ADVERTISING

3.1 Augmented Reality Advertising

Augmented reality advertising is the latest trend to have emerged in advertising campaigns,

and nearly every company can benefit by integrating augmented reality into its advertising

strategy. Businesses can promote their products through an interactive advertisement with

augmented reality applications, and by doing so, they can capture the attention of a large

number of viewers and increase their overall business volume. The market is saturated with

new products and services, and consumers are becoming increasingly desensitized to the



effects of traditional methods of advertising. For this reason, it is crucial that your

advertisement is truly innovative and leaves a memorable and lasting impression on

consumers. Creative advertising with augmented reality can help you to accomplish that

goal. Advances in technology are changing the way the audience reacts to advertising as a

whole. Advertising is a vital means of communication which facilitates the sale of products

to consumers, and augmented reality advertising, which incorporates a combination of

reality and data generated by computers, takes persuasion to a whole new level.

Figure 5: The AR system

Augmented reality advertising uses a different kind of a technology altogether and most of

the ads created today are very exciting indeed. Augmented reality can be used to capture

your audience’s attention and give them a taste of the future. Recent advances in

augmented reality technology have enabled its use on mobile devices. Augmented reality

mobile applications can provide users with the ability to view a product or interactive

advertisement in 3D by scanning a brochure or other 2D image with a mobile device, or the

ability to view information about your venue, including ratings, reviews, and sales or other

discounts simply by viewing your storefront through a mobile device. These computer

generated 3D images can even route prospective customers directly to your website where



your products and services are sold, giving the consumer the option to instantly make a

purchase.

Augmented reality advertising has proven to be effective because of its interactive features.

Instead of simply being an external viewer, the consumer becomes involved in the

interactive advertisement as an active participant. Augmented reality can provide an

enriching and engaging experience with results that are far superior to traditional

advertising methods. Interactive advertisements that utilize augmented reality technology

leave a lasting impression on the consumer, and effective advertising is what makes your

business truly stand out amongst the competition.

Many large brands are experimenting with AR in their marketing including GE, Toyota, Wal–

mart, Best Buy and Papa Johns. Some uses of AR are stand alone promotions but AR has also

been used as an effective complement to print, online, TV/video and mixed media

campaigns

Adding AR to a campaign or promotional effort can take a basic marketing approach to new

levels with mass viral sharing of content. AR has also frequently been used for product

visualization and interaction. AR creates the possibility of engaging and even, to some

degree, physical interactions with products The lines between virtual and real are being

crossed so that users can visit a store and interact with an actual size virtual example, right

in the palm of their hand. Or you can “try before you buy” without ever visiting a store.

Many believe that now is the right time to use AR. There are many reasons, but one of the

most compelling is the recent advancements in AR which have reduced production cost and

technical barriers to users. We believe this has shifted the cost/benefit ratio of AR to a point

where many more advertisers should consider using AR as a way to enhance advertising and

promotional efforts.

In the past, integration of 3D graphics similar to those used in AR has been limited to large

budgets, such as movie productions, but can now be done on far more limited budgets with

real time video streams. With the ability to scale complexity, quality, and interactive

elements, AR is no longer just for the huge studios with deep pockets.



There are a few limitations of which advertisers should be aware. AR is certainly not for

everything. Although AR has been around for a while it is still a maturing technology. This

means it still has novel value but also means best practices are currently being worked out.

Some uses of AR in advertising have been very experimental and not all AR examples are

“good” AR examples. User expectations have to be realistic as well. For a user to visit a web

site and have the quality of interaction they see on a local gaming system, such as a PS3,

might be a bit unrealistic but simple animation and well crafted characters can now be

brought to life with no new browser plug-ins for user to install.

The key hardware for AR to work online is a web cam. While not every user has a camera

there does seem to be a trend of increasing availability of web cameras. According to some

estimates the web cam market in 2008 was $1.8 billion and web cams are becoming a

standard feature on many laptop and some desktop models. It is also worth noting that

recorded AR video can be viewed without a webcam as with the video examples included in

this article. It is believed there are currently significant benefits to using AR in advertising

the longevity of AR as an advertising tool remains unclear.

While many brands such as GE, Nestle, Lego and others have been using AR, there are

certain brands and products for which AR might not be a good fit. Don’t force AR onto your

product if it doesn’t seem like a natural fit, and think through the consumer experience.

Don’t count on measuring its “click-through rate.” As with any emerging technology, there’s

the question of ROI and how to measure it, and you’re likely to have different measures

depending on the program and the goals of the program. For example, AR can be used to

enhance product training, and you might measure its success by whether it increases user

satisfaction with the product. For marketing, there are already signs that AR has increased

awareness and engagement for certain product campaigns. In addition, AR can be used to

increase purchase conversions in e-commerce and drive purchase intent at retail.



Figure 6: Augmented Reality Revenue

When using any digital technology or media, it’s important to develop your digital strategy

first. Why do you want to use AR? What are your objectives? Are you planning for

engagement, awareness, etc.? If you’re unclear on how AR can be used effectively, contact

an AR company or specialist that can help you develop a proper strategy. Using AR solely for

a PR play won’t work anymore.

Like every emerging medium, there is hype around a new technology that often outpaces

the current technology’s limitations. Mobile AR is one area right now where the limitations

of mobile technology don’t match brand or consumer expectations for mobile AR. Forrester

recently released a report on the mobile-AR ecosystem and uncovered similar findings —

that mobile AR isn’t ready yet. It also found that web- and kiosk-based AR are much more

mature and more practical right now for a brand’s AR initiatives. Naturally, as a company

that specializes in AR, we believe AR is here to stay.

3.2 Types of AR advertising



Web-based AR uses a consumer’s PC and webcam to offer an enhanced experience often

via a marker, image or through motion capture.

Examples: GE’s Plug Into the Smart Grid is a great example of web-based augmented reality.

This online execution allowed users to hold up a piece of paper — called a “marker” — to

their computer’s webcam and see themselves holding an animated model of a smart grid on

the screen. There’s also the Fashionista dressing-room app that was created for online

fashion boutique Tobi, which lets you “virtually” try on clothing items using your webcam

and a marker on a printed piece of paper. Once you’ve “tried on” the outfit you want to see

yourself in, you can send the image to friends via social media and ask them for tier opinion.

Pros: It delivers the greatest global reach for AR, especially when using Flash, as it doesn’t

use a plug-in or download, it’s generally lower cost, and social media can easily be

integrated.

Cons: You have to develop for minimum PC requirements, and it requires the user to have a

webcam.

Kiosk-based AR is similar to web-based AR, but often runs more powerful AR applications

using 3D or facial tracking.

Example: At a store in downtown Orlando, shoppers can hold up a boxed Lego set to an in-

store kiosk, and the kiosk will show an image of them holding the kit as it looks when put

together.

Pros: Kiosk AR can leverage multiple processors –more powerful than the typical at-home

PC — for multiple uses, such as out-of-home or point-of-purchase marketing. It also doesn’t

require a user to create a marker or have a webcam.

Cons: Higher cost, fixed location, usually no internet access.

Moblie AR uses the viewfinder on a mobile phone to show enhanced digital information in

your surroundings.



Examples: The iButterfly app, created in Japan by Dentsu, lets you track and find digital

butterflies using your iPhone GPS and camera. Hold your iPhone camera up at appointed

spots and when you look at your surroundings through the camera, you’ll see animated

butterflies flapping by. Each iButterfly contains coupons for nearby businesses. In another

example, World Lens lets you use your smartphone to translate printed words. Hold the

camera phone up to a sign in Spanish and it’ll translate it to English.

Pros: Mobile AR can leverage location, and smartphone adoption is rising, increasing its

potential reach.

Cons: You’re dealing with a fragmented development environment, as some smartphones

run on the iOS platform, others on Android and still others on Windows or Blackberry; and

limited processing power and battery life can be restrictive. Additionally, there can be user-

interface/user-experience issues and the hype around this type of AR is out of control.

The way augmented reality is being used today is not a proper definition of what it's going

to be. It's overlaying digital information on a live digital feed. So in a football game you'd see

the first down line on a football field when the players are playing. That's not actually there.

They're overlaying information on a live video feed to augment the experience.

Other example of that are war movies when you see additional information that helps them

navigate the world, for example. It's overlaying of data on top of the real world.

AR will offer different various advantages for different forms of online display advertisement

in future. The goal of augmented reality is to add information and meaning to a real object

or place. Unlike virtual reality, augmented reality does not create a simulation of reality.

Instead, it takes a real object or space as the foundation and incorporates technologies that

add contextual data to deepen a person’s understanding of the subject

Technological development in the field of AR is leading to the acceptance of this technology

in various marketing activities. Of these, usage of AR is predominantly witnessed in the field

of advertising. Large corporate like P& G, IBM have used AR in their latest advertisements.



IKEA PS, dealer in household furniture has offered mobile augmented reality solutions which

enable users to imagine how this furniture would fit in their houses.

Fashion, beauty, entertainment and gaming are considered to be the apt application for AR.

Ultimately you don't think it's different from saying, "go to the website," though I applaud

them for the effort. It does have a certain appeal that would work for children and learning -

they can hold a book up to the webcam and get a reveal.

Mobile and local are really where it will become important. When you think about the

information Google already has on the world, and Google maps, Google earth, these are

getting exponentially and further tagged with deeper information. Imagine putting on a pair

of glasses as you walk down the street and getting information from the world as you move

through it. It's almost like SEO for the whole world. It's just like search when, if there's an

instance where they want to buy something it there, it will be that way with augmented

reality. It's the hand raises, and you have to be there.

Figure 7: Why AR now?



Five years from now, this is what will be the next generation of search engines. Learning at

its core what augmented reality is. If you're looking to building buzz there are always

creative ways to do cool things.

The benefits of AR advertising to the advertisers are as follows:

Very novel and engaging applications are now possible without a large budget.

Can be an effective complement to print advertising as well as online or video

efforts.

Enables interaction with brand, products and characters in compelling ways not

previously possible. The user is part of the experience.

AR has also frequently been used for product visualization and interaction. AR creates the

possibility of engaging and even, to some degree; physical interactions with products. While

good examples exist of single products, we believe this is just the start of what is to come.

The lines between virtual and real are being crossed so that users can visit a store and

interact with an actual size virtual example, right in the palm of their hand. Or you can “try

before you buy” without ever visiting a store.

There are many reasons for introducing this technology, but one of the most compelling is

the recent advancements in AR which have reduced production cost and technical barriers

to users. We believe this has shifted the cost/benefit ratio of AR to a point where many

more advertisers should consider using AR as a way to enhance advertising and promotional

efforts. AR is no longer just for the huge studios with deep pockets.

In the past, integration of 3D graphics similar to those used in AR has been limited to large

budgets, such as movie productions, but can now be done on far more limited budgets with

real time video streams. With the ability to scale complexity, quality, and interactive

elements, AR is no longer just for the huge studios with deep pockets.

AR applications can be broadly divided into 7 sub-categories:

1. Location based search

2. Games

3. Lifestyle and healthcare



4. Education and reference

5. Multimedia and entertainment

6. Social networking

7. Enterprise.

Figure 8: Total Mobile AR Market

Three key streams can be identified by which AR products are likely to be monetized. They

are as follows:

1. Pay per download

2. Incremental revenue

3. Advertising

Clearly, AR brings with it other associated values, such as that of, say, a AR browser pre

loaded onto the handset. It may be free to the end user; may not charge subscription

revenues, but it has a value none the less, above and beyond that of any subsequent ad

spend attributable to it. Quantifying the value technology brings to a handset is another

matter, for above and beyond the cost of that technology (which could conceivably be one

way of estimating its valuation) is the fact that its presence within a handset might be a

contributing factor choosing that handset over another, non AR model. Another, even less

tangible value is the indirect revenues resulting from additional sales of a product prompted

by AR advertising. It may well be possible to gauge uplift and save that result from AR

campaigns on the mobile; at the present time, there are no such campaigns, and it will be

premature to attempt such calculations without any data upon which to base those



calculations. Thus, the valuation of the mobile AR market is limited to those 3 streams

defined above.

Forecasts suggest that the total value of these 3 revenue streams will reach $732 million is

2014, although annual revenues from AR are unlikely to exceed even $2 million during 2010,

due to the fact that only a small minority of smart phones will be AR enabled. However, this

proportion will rise dramatically in the medium term, the result of increasing adoption of

Android handsets and iPhones, along with greater deployment of AR enablers such as digital

compasses and accelerometers by other leading vendors.

Figure 9: Evolution of Mobile AR Market, 2009-2015

Figure 10: Total Mobile AR Market



At the present time only a handful of current apps and browsers have any such value

associated with them, eg. The paid for AR game Mosquitoes & the LBS app Nearest Tube.

This is likely to change from mid 2011 onwards, first as more paid for apps are deployed and

then as both incremental revenues and ad spend make their way into the system.

3.3 AR advertising in India

For the first time in India, PepsiCo tested a new engagement technique, 'augmented reality

advertising' or 'ARvertising', to engage youth with the 7Up brand.

Andhra Pradesh was witness to a new form of advertising these days, as PepsiCo tries out

'augmented reality (AR) advertising' or 'ARvertising' for its 7Up brand.

Augmented reality involves the addition of virtual elements to the real environment. Virtual

elements could include computer-generated images, video clips or textual information

pulled from the internet; while the real environment includes elements such as a printed

picture, object, or a building or landscape. To retrieve additional or 'virtual' material, the

user would need an information 'reader' -- such as a web camera connected to an internet-

enabled computer, or the camera of a GPRS-enabled mobile phone -- which can identify the

real object, and then pull out 'virtual' information contextually related to the real object.

For instance, an advertiser could embed a special code in its logo or a picture printed in ads

or packaged material. Thus, whenever users point their mobile-phone or web camera to the


http://www.afaqs.com/perl/advertising/creative_showcase/index.html?id=22087&media=Digital&type=International


logo/picture, they could get some additional information from the internet, such as images,

video clips, or discount offer details, on their mobile or computer screen.

In the case of 7Up, PepsiCo has initiated a two-month campaign, 'You Click, Allu Arjun

Dance'. The Tollywood actor is famous for his dancing skills and is also 7Up's brand

ambassador in the South.

For this campaign, PepsiCo has created videos of Allu Arjun performing seven different

dance styles, which are hosted on the website, www.7Up.in. A small-size code, 'black and

white picture or graphic image', has also been developed, which the company will print on

600ml 7Up PET bottles distributed in AP. This coded image is the virtual key or enabler for

users to access the dance videos.

In this campaign, first, the online user will be required to open the 7Up website and click a

link -- available on the site's homepage - titled 'Now everyone can make Allu Arjun dance'.

This will prompt him to connect his computer with a web camera, select the dance-style

video and then point the camera to the coded image printed on the PET bottle.

These videos can also be accessed on operating system (OS) based mobile phones, which

are internet enabled. For this, users will be first required to download a special software or

application on their mobile phones. Then, a user can open the application, select the camera

mode and point the camera to image on the PET bottle, in order to play the videos.


http://www.afaqs.com/news/news_story_grfx/2010/27312_1_big.jpg


The objective behind this campaign is to create buzz and positive word-of-mouth about 7Up

among the youth in Andhra Pradesh. We have opted for AP, because it is an important

market. About 25 per cent of the country's lemon-based drinks sales come from here.

Titus indicates that the company will consider unique visitors on the 7Up website, time

spent by users and the level of engagement, to judge the effectiveness of the ARvertising

campaign. Based on the success of the campaign in AP, it may be extended to other states

too.

In summary AR

Enables exciting rich media engagements with targeted consumers

Brings alive the static hoardings, print ads by delivering dynamic content on users

mobile

AR enables a customized media for brands with one time investment (One time

development charges, later on content & codes can be changed)

How it works?

User downloads the application

based on his handset

User points the application to

the code printed on the banner

Fig: 11How it works?Subsequently banner will allow

user to access interactive

content

User would be played the video

& applications encoded by the

code


http://www.network2media.com/images/stories/May2010/week4-24-31/31May2010/hsbc-how-it-works.jpg


The objective of this campaign was to improve communications with consumers and make

them receptive to their communications. It also aimed at creating impulse in consumers to

communicate back with bank and also make users to look for new offers from bank

The AR application will be built in such a way that it will support following kinds of content –

Videos

3D content

Interactive menu

Interactive 3D animations

Applications

Images/Flash

Games

Applications

In addition to this we will provide customized application to save & install contents

as per the requirement.

Nike also used AR advertising for the launch of “Nike Sportswear collection”, Nike wanted to

engage with the customers in a superior level and to make the static press ads to an

interactive piece of communication. It wanted to drive more curiosity towards Nike

Sportswear collection in an innovative way and also measure the engagement like total

downloads, scans, user locations etc.



AR advertisements for Nike

The campaign ran for two months in the entire country. During the campaign there were

around 1.30.00 downloads and 15,000 scans of the AR code.

3.4 Benefits of AR advertising

1. It is unique / different (for the moment) – The novelty factor of such applications will

obviously wear off as more and more are created and used, but for the meantime, the onus

is on brands to make the most of this exciting technology and extend it from infancy. The

possibilities of augmented reality are only just being explored, and any new developments

are likely to achieve further exposure.



2. Personalisation – The concept of uploading your own media, such as the image in the

above examples, helps to create a highly personalised piece of media for the user. It relates

specifically to them, which is likely to be far more engaging than a standard video or image.

3. Virality – The novelty factor mentioned above will surely enhance users’ desire to share

their creation with their extended networks, and the fact that the content is personalised

will only add to this.

4. Content – It’s likely that the vast majority of users wouldn’t possess the ability or

expertise to create a complex video like the ones indicated in the examples above;

augmented reality apps allow users to create a quality piece of content that they wouldn’t

otherwise be able to create themselves.

5. Interactivity maintains a viral loop – As well as being high quality, the content created

by augmented reality applications is highly entertaining and in many cases fun. The element

of surprise that is achieved when sharing such content makes for very entertaining viewing

by other users, stimulating them to create their own version and share it once again,

completing the viral loop.

3.5 Limitations of AR advertising

There are a few limitations of which advertisers should be aware. AR is certainly not for

everything.

Although AR has been around for a while it is still a maturing technology. This means it still

has novel value but also means best practices are currently being worked out. Some uses of

AR in advertising have been very experimental and not all AR examples are “good” AR

examples. User expectations have to be realistic as well. For a user to visit a web site and

have the quality of interaction they see on a local gaming system, such as a PS3, might be a

bit unrealistic but simple animation and well crafted characters can now be brought to life

with no new browser plug-ins for user to install.

The key hardware for AR to work online is a web cam. While not every user has a camera

there does seem to be a trend of increasing availability of web cameras



Chapter 4Data Presentation,

Analysis and Interpretation

4.1 Analysis of Questionnaire

The questionnaire was duly filled by 270 respondents.

The sample size consists of those who are familiar with

the concept of augmented reality advertising.


This chapter focuses on

analyzing the information

collected through surveys

and gives an insight about

Augmented Reality

advertising.


Sample Profile

1. Age

Table 1: Age of respondents

45%

29%

26%

Age of respondents

18-25 years25-35 years35 and above

Fig 12: Age of Respondents

Interpretation:

Out of 270 respondents, 45% belongs to the age group of 18-25 years. This basically consists

of the youth who are well-versed with the latest trends in technology. Then we have 29% of

the respondents belonging to the age group between 25-35 years and 26% in the age group

of 35 years and above.

2. Gender

Table 2: Gender of respondents


Age group No. of respondents

18-25 years 121

25-35 years 79

35 and above 70


Gender No. of respondents

Male 163

Female 107

60%

40%

No. of respondents

MaleFemale

Figure 13: Gender of respondents

Interpretation: Out of 270 respondents, 60% are males and 40% are female

3. Occupation

Table 3: Occupation of respondents

Occupation No. of respondents

Students 109

Business-man 38

Professionals (employed at an advertising firm) 62

Professionals (not employed at an advertising

firm)

61

Others 0



40%

14%

23%

23%

No. of respondents

StudentsBusiness-manProfessionals (employed at an advertising firm) Professionals (not employed at an advertising firm)Others

Figure 14:Occupation of Respondents

Interpretation:

Majority of the respondents are students. It is seen that 40% of the total sample size

consists of students. Then we have approximately 23% each for professionals employed at

an advertising firm as well as a non-advertising firm. The rest 14% constitutes the

Businessmen.

Q1. Which of the following traditional advertising tools has the maximum impact on you

while purchasing a product? (1 with the most impact and 5 with the least impact)

Table 4: Impact of traditional advertising tools on respondents

1 2 3 4 5

TV commercials 166 32 16 25 31

Radio commercials 6 31 45 54 134

Print Ads 20 110 60 65 15

Outdoor Ads 15 76 115 43 21

Internet Ads 63 21 34 83 69



1 2 3 4 50

20

40

60

80

100

120

140

160

180

TV commercialsRadio commercialsPrint AdsOutdoor AdsInternet Ads

Figure 15: Impact of traditional advertising tools on respondents

Interpretation:

The respondents were asked to rank the various advertising tools on the basis on the impact

they have on their purchasing decision. This question was mainly included the traditional

media vehicles and was asked to find out the impact of the recent tools such as Internet ads.

It was seen the television commercial had the maximum impact on the customers.

Customer’s perception about the product could be retrieved through TV commercial.

Around 61% of the sample ranked TV commercial 1 st denoting that it has the maximum

impact on them. On 2nd position we have print ads. Around 40% of the sample gets affected

by print ads in the newspapers, magazines etc. On the 3rd rank the respondents placed

Outdoor advertising. With 42.5% responses, the sample believed that after TV and Print ads,

hoardings and other outdoor ads affect them the most. On rank 4th and 5th we have internet

ads followed the by radio ads. Both these have gained popularity I the recent past. With

most people spending most of their time on internet these days, Internet Ads have gained a

lot of popularity. However it still has a long way to outdo the traditional methods of

advertising. Finally with 49% of the sample ranked Radio advertising 5 th. With the advent of

satellite Radio and numerous radio stations, Radio advertising has gained popularity.



However it is considered to compliment the traditional methods of advertising rather than a

substitute.

Q2. Do you believe that Augmented Reality (AR) advertising will gain popularity as an

advertising tool?

Table 5: Popularity of AR advertising

Response No. of Respondents

Strongly Agree 38

Agree 156

Neither agree nor disagree 32

Disagree 20

Strongly disagree 24

Fig 16: Popularity of AR advertising

Interpretation:

The respondents were asked to give their opinion regarding the popularity of Augmented

reality as an advertising tool. 14% of the population strongly agreed that AR will become a

popular advertising tool. 58% of the population agreed to the popularity while we have 12%

who remained neutral. 7% of the respondents disagreed and 9% strongly disagreed. They

were if the opinion that AR will become a failure as an advertising tool. Thus we see that

majority of the sample agrees that AR will become a popular advertising tool.

Q3. Does AR fulfill the criteria of providing adequate information about a product/service?

Table 6: Ability of AR advertising to provide adequate product information


14%

58%

12%

7%

9%

No. of Respondents

Strongly AgreeAgreeNeither agree nor disagreeDisagreeStrongly disagree



Strongly Agree 24

Agree 168


Disagree 11

Strongly disagree 4

9%

62%

23%

4% 1%

No. of Respondents


Figure 17: Ability of AR advertising to provide adequate product information

Interpretation:

The respondents were asked whether they felt that Augmented Reality advertising provides

adequate information about a product. 9% strongly agreed while a majority 62% agreed to

the fact that AR advertising does provide adequate information regarding a product or

service. 4% disagreed with this criterion and only around 2% strongly disagreed. A significant

(23%) number of respondents were unable to decide on this question. Thus we can see that

an overwhelming majority of the respondents surveyed believes that AR advertising

provides adequate information about the product.

Q4. Does the AR experience make an advertisement more entertaining and interesting?

Table 7: Respondent reaction on AR experience to be entertaining and interesting


Strongly Agree 77



Agree 143


Disagree 8

Strongly disagree 0

F igure 18: Respondent reaction on AR experience to be entertaining and interesting

Interpretation:

The respondents were asked if they felt that experiencing Augmented Reality made an

advertisement more entertaining and interesting. 28% strongly agreed to this statement,

while a further 53% affirmed that the AR experience makes the advertisements more

entertaining. While 16% of the sample size was unsure about the effects of AR advertising,

only 3% disagreed and not one of the respondents strongly disagreed on this question.

Q5. Have you ever downloaded an AR application for gaining information about a product?

Table 8: Number of downloads of AR advertising application

Response No. of respondents

Yes 168


29%

53%

16%

3%

No. of Respondents



No 102

62%

38%

Reply of respondents

YesNo

Figure 19: Number of downloads of AR advertising application

Interpretation:

The next question was to ask respondents if they had ever used or downloaded an AR

application to gain information about a product or service. To this, 62% said they had while

38% said they had never used AR application. This indicates that the responses in the

questionnaire are also given by those who haven’t ever downloaded an AR advertising

application.

Q6. Do you find the AR technology easy to use?

Table 9: Respondent reaction on ease to use AR advertising application




Yes 141

Don’t know 97

No 32

52%36%

12%

No. of respondents

YesDon’t knowNo

Figure 20: Respondent reaction on ease to use AR advertising application

Interpretation:

On being asked whether they felt that AR technology is easy to use, 52% said yes, while 12

said that it was not easy to use. A considerable number (38%) claimed to be unsure about

this question. Thus, we see that though there is some dissidence, a majority of the

respondents feel that the AR technology is user friendly.

Q7. Rate the following factors that attract you to the use of AR as an advertising tool. (Rate on the scale of 1-5, with 1 being the least and 5 being the most)Table 10: Factors attracting AR advertising



Ratings

Factors Least Less Neutral More Most

Informative 21 23 127 47 52

Creative 21 26 58 68 97

Innovative 11 16 6 42 195

Entertaining 21 63 133 38 15

Easy to use 26 116 79 26 23

Least

Less

Neutral

More

Most

0 50 100 150 200 250 300 350 400 450

InformativeCreativeInnovativeEntertainingEasy to use

Figure 21: Factors attracting AR advertising

I nterpretation :

The respondents were asked to rate the various factors of an ad that attract to the use of AR

advertising out of 5. 1 was the least rating and 5 the most. It was seen that maximum

respondents considered innovativeness as a very important factor. 195 respondents rated it

to be the most influential factor. The second most important factor was creativity.

Respondents were pretty neutral when asked about the entertainment quotient of an

advertisement. According to them the ease to use AR advertising was of less importance



and it did not affect the consumer a lot. Moreover the ability of AR advertising to provide

the essential information about the product or service was also of not much importance to

them.

Q8. What in your opinion will be the future applications of AR advertising?

Table 11: Future applications of AR advertising


Making it possible to see a product in its

environment before its completed

139

Seeing and manipulating a product before its

available

135

Adding suggestions while shopping 99

Enhancing entertainment experience 116

Providing virtual advertising space 97

Getting reviews on shop items by scanning a

barcode in-store with a mobile phone

91

Modeling of clothes by persons at home,

making internet purchase of clothes easier

69



possible t

o see

product

in its en

vironmen

t

Seeing a

nd man

ipulating a

product

Adding sugge

stions w

hile sh

opping

Enhan

cing e

ntertai

nment e

xperi

ence

Provid

ing virt

ual adver

tising s

pace

Getting r

eview

s on sh

op items

Modeling o

f clothes

by pers

ons at h

ome0

20406080

100120140160

No. of respondents

Figure22: Future applications of AR advertising

Interpretation:

This question was asked to the respondents to find out their opinion about the future

applications of AR advertising. According to 155 respondents, AR can be used to see and

manipulate the a product even before it’s used. 139 respondents are of the opinion that AR

can make it possible to see a product in its environment before its completion. By this the

customers as well as the developers will get an idea if the product will be viable or not. 116

respondents believe that AR will enhance the entertainment experience while 99 responded

that AR will help in providing suggestions while shopping. About 35% of the respondents

suggested the use of AR as a shopping advisor. It helps in getting reviews on shop items by

scanning a barcode in-store with a mobile phone. 97 respondents also believe that AR will

help in providing virtual advertising space. Lastly 69 respondents replied that AR advertising

will help in modeling of clothes by persons at home, making internet purchase of clothes

easier.



Q.9 What hurdles are likely to constrain the deployment and adoption of AR advertising?

Table 12: Factors constraining AR advertising


Technical barriers 109

Market barriers 65

Cost 131

Lack of knowledge 152

Limited real world image data 110

Technica

l barr

iers

Market

barrier

sCost

Lack o

f knowled

ge

Limite

d real

world im

age d

ata0

40

80

120

160

No. of respondents

No. of respondents

Figure 23: Factors constraining AR advertising

Interpretation:

The respondents were then questioned as to what they felt could be the hurdles or

constraints in the deployment and adoption of AR advertising. 109 of those surveyed said

that Technical barriers would be a constraint, while 65 and 131 people chose Market

barriers and Cost respectively. 153 felt Lack of adequate knowledge would be a hurdle and

110 respondents claimed the limited real world data associated with AR advertising would

be a constraint.



Q10. What in your opinion will be the future of AR advertisement?

Interpretation:

The respondents were asked about the future of AR advertisement. It was an open-ended

question and the respondents could asnwer whatever was their opinion about his concept.

Some of the respondents were as follows:

It will prevail, when is the main question. Anything when it's done on a large scale

the per unit cost is minimal, what will be a hindrance though in the short term is the

consumer awareness and how acceptable/credible it is perceived to be

With the rise in technology and its awareness, AR only has one way to go. Up! But it

should be made proper use of. It can be used for fraudulent purposes too

AR advertisements will have an impact only on the economically and intellectually

strong people as only they will have access to them

No more walking to reliance super mart to browse through products, once you've

got it all online through AR.

Most of the respondents believed that AR advertising does have a very bright future,

however it is still in its early stages and has a long way to go.



4.2 Analysis of Hypothesis

The researcher administered a total of 270 questionnaires of various respondents.

Hence this section deals with the analysis of responses received from answered

questionnaire using the charts, ANOVA and chi-square statistical formula/ method.

Hypothesis 1:

Ho: Use of AR application as an advertising tool is not dependent on age of the user.

H1: Use of AR application as an advertising tool is dependent on age of the user.

Table 13: Correlation between use of AR application as an advertising tool and age of the

user.

Age group Have you ever downloaded AR application as an

advertising tool

Total

Yes No

18-25 years 73 48 121

25-35 years 66 13 79

35 years and above 29 41 70

Total 168 102 270

Test used: Chi-Square

fe ( expected frequency) is calculated by the following formula:

fe = RT*CT/GT

Where, RT = row total

CT = column total

GT = grand total

All the expected frequencies shown in the table drawn below are calculated using the above

mentioned formula.



Table 14: Testing of Hypothesis 1

fo Fe ( fo – fe)2/ fe

73 75.29 0.0697

48 45.71 0.1147

66 49.16 5.7686

13 29.84 9.5035

29 43.56 4.8667

41 26.44 8.0179

( fo – fe)2/ fe 28.341

Degrees of freedom= (no. of rows-1) (no. of columns-1)

= (6-1) × (2-1)

= 5

Significance level= 0.05

Referring to the table of Chi-square test, the value 11.071 is obtained which is lower than

the calculated value.

As can be seen 2 tab ¿2 cal ie. 11.071 ¿ 28.341

Thus, Ho is rejected. Alternate hypothesis is accepted.

Conclusion: Thus we can conclude that the use of AR advertising application is dependent

on the user’s age. This implies that age is one of the factors that influence a user to

download an AR application to gain information for a product/service.


χ 2

=∑( f o−f e )

2

f ewhere : f o= frequency of observed values

f e= frequency of expected values k=number of categoriesc = number of parameters estimated from the sample data


Hypothesis 2:

Ho: Consumer reaction about the popularity of AR advertising is not affected by the actual

use of AR application

H1: Consumer reaction about the popularity of AR advertising is affected by the actual use of

AR application

Table 15: Consumer reaction about the popularity of AR advertising and actual use of

AR application

Response Have you ever downloaded AR application as an

advertising tool

Total

Yes No

Strongly Agree 30 8 38

Agree 119 37 156

Neutral 10 22 32

Disagree 7 13 20

Strongly disagree 2 22 24

Total 168 102 270

Test used: Chi-Square

fe ( expected frequency) is calculated by the following formula:

fe = RT*CT/GT

Where, RT = row total

CT = column total

GT = grand total

All the expected frequencies shown in the table drawn below are calculated using the above

mentioned formula.




Fo fe. ( fo – fe)2/ fe

30 23.64 1.711

8 14.36 2.816

119 97.07 4.954

37 58.93 8.160

10 19.91 4.932

22 12.09 8.123

7 12.44 2.378

13 7.56 3.914

2 14.93 11.197

22 9.07 18.432

( fo – fe)2/ fe 66.623

Degrees of freedom= (no. of rows-1) (no. of columns-1)

= (10-1) × (2-1)

= 9

Significance level= 0.05

Referring to the table of Chi-square test, the value 16.919 is obtained which is lower than

the calculated value.

As can be seen 2 tab ¿2 cal ie. 16.919 ¿ 66.623

Thus, Ho is rejected. Alternate hypothesis is accepted.

Conclusion: Consumer perception about the popularity of AR advertising is affected by the

actual use of AR application. It has been observed that those who have a positive approach

wards the popularity of AR advertising have actually downloaded an AR application for

gaining information about a product/ service.


χ 2

=∑( f o−f e )

2

f ewhere : f o= frequency of observed values

f e= frequency of expected values k=number of categoriesc = number of parameters estimated from the sample data


Hypothesis 3:

Ho: All the factors of an ad do not equally attract a user to use AR as an advertising tool

H1: All the factors of an ad equally attract a user to use AR as an advertising tool.

Table 17: Factors attracting AR advertising

Ratings

Factors Least Less Neutral More Most

Informative 21 23 127 47 52

Creative 21 26 58 68 97

Innovative 11 16 6 42 195

Entertaining 21 63 133 38 15

Easy to use 26 116 79 26 23

Test used: ANOVA

ANOVAs: Single Factor


SUMMARY

Groups

Coun

t Sum

Averag

e

Varianc

e

Column 1 5 100 20 30

Column 2 5 244 48.8 1744.7

Column 3 5 403 80.6 2744.3

Column 4 5 221 44.2 237.2

Column 5 5 382 76.4 5426.8

ANOVA

Source of

Variation SS df MS F P-value F crit

Between

Groups

1244

2 4 3110.5 1.5273

0.23232

3

2.86608

1



Within Groups

4073

2 20 2036.6

Total

5317

4 24

F critical = 2.866

F tabulated = 1.53

F-crit ¿ F-tab ie. 2.866 ¿ 1.53

Hence, we do not reject Ho. The null hypothesis is accepted.

Conclusion: It has been observed that all the factors that have been mentioned above do

not equally attract a user to use AR as an advertising tool. Factors such as ‘Innovativeness’

and ‘Creativity’ have a greater impact.



Chapter 5Key Findings


The chapter covers all the key findings from the study. It covers the finding from analysis portion as well as from the qualitative data which is not present in analysis, but gathered through conversations and mock surveys.


Key Findings:

Augmented Reality advertising is still a concept in its early stages. The concept still

needs to gain a lot of popularity and awareness among the masses.

AR applications require technical knowledge which makes it not very user-friendly.

As a result of this not many consumers adopt for AR as a means of advertising.

Use of AR advertising applications greatly depends on the age of the user. It has

been observed that consumers of the age group between 18 years to 25 years have

extensively have started using various AR applications. Those in the age group

between 25- 35 years also use AR adverting but not to a great extent. They mainly

use it out of curiosity but finally stick to the traditional advertising tools. Those of the

age 35 years and above don’t consider AR as a promising tool and hence prefer the

traditional media vehicles. They are still averse to the use of technology and want to

rely on their age old methods.

AR advertising is surrounded by various limitations. One of the biggest hurdles is the

lack of knowledge. Not many people are aware of a concept called ‘Augmented

Reality’ advertising.

AR advertising is perceived to be informative and entertaining. However, the

consumers still believe that more attempts should be made to make it more

innovative and interactive.

Companies do not adopt for AR advertising because they do not trust the success

and reliability of this tool. Moreover, in a population like India, people can attracted

only by the look of the advertisement, they would not take the pains to download an

application to gain information about a product.



Many consumers believe in the potential and popularity of AR advertising, however,

they have still not downloaded an application. This shows that there is a curiosity in

the minds of the people about AR, however they have not made the efforts to

actually use it in real life.

Most of the AR applications are used in gaming and other technical fields. Still a lot

of work needs to be done as far as advertising is concerned.



Chapter 6Recommendation

Recommendations


Recommendations are one of the vital parts of study, both for the researcher as well as company.Here, some of the recommendations are quite important and need serious attention.


The most important key to the success of Augmented Reality is to spread awareness

about this concept. Advertisers need to ensure that the customers they are targeting

have prior knowledge about AR adverting. They should be aware of how to use it and

the technical knowledge about the same. They should be able to augment the

environment according to their needs. Customers must be aware of how to gain

maximum information about the product they are looking for. For this purpose

initially the advertisers can link it with the traditional tools of advertising also. By this

they will gradually get comfortable with the new concept.

AR advertising agencies must collaborate with technical departments to develop the

AR advertising and make it more users friendly. The ads should be innovative and

creative which will then create a curiosity in the minds of the consumer, leading

them to download the AR advertising application. For example, the ad by Ford Figo

helped in actually making a person feel how it feels to drive the car in virtual world.

The objective of the campaign was to create excitement and brand engagement for

the print campaign of Ford Figo by adding rich media and dynamic content and

converting the static press ad into an interactive piece of communication.

AR advertisements should cater to all age groups and not make it targeted only to

the youth. There should be a proper method given with which even the older people

can access these ads and gain information and entertainment at the same time. They

should be a manual to help all the age groups understand the way one can access

the AR ad. And once this concept becomes popular, this option can be discarded.

AR advertisements should be closely associated with retail sector. The future of AR

advertising in virtual shopping and scanning of barcodes to gain product information

is very bright. This concept must be made more users friendly and easy to use.

Every advertiser must be aware of the learning at the core of augmented reality.

They must be familiar with every concept of AR. So those are a number of example

of things marketers should be thinking of today. Every marketer should have

information in everything about the strategy. All forward thinking marketers should



be preparing to think about how their product can be represented anywhere and

think about the product in the outer net. People can overlay digital graffiti on the

real world. Things like that will become a reality.



Chapter 7Conclusion


Finally, the last chapter of the study includes overall experience and learning from the study.


Conclusion Augmented Reality advertising is a concept that has gained a lot of popularity in the recent

past. It has become a rage among the tech-lovers but at the same time there is lack of

awareness about the same concept. AR advertising is an innovative and entertaining concept

but again is not user-friendly and a much accepted tool of advertising.

Over time, the augmented reality advertising is expected to change its composition.

Currently, a lot of research is done towards augmented reality. The existence of conferences

purely dedicated to augmented reality shows that at the moment this field is hot in the

scientific and advertising world. The advertising world believes augmented reality is a

growing field, likely to find many more applications soon and increase the use of the already

existing applications. It has become a way of communicating socially.

The goal of augmented reality is to add information and meaning to a real object or place.

Unlike virtual reality, augmented reality does not create a simulation of reality. Instead, it

takes a real object or space as the foundation and incorporates technologies that add

contextual data to deepen a person’s understanding of the subject. Augmented reality is

designed to blur the line between the reality the user is experiencing and the content

provided by technology. Augmented reality adds graphic, sound and smell to the virtual

world as it exists in the real world

Augmented Reality advertising if made more users friendly; this concept will gain a lot of

popularity. The ads need to be made more entertaining and easy to download. Moreover,

there is a need to make everywhere aware about this concept. Advertisers along with the

companies need to experiment with this idea and provide the consumers with a more

entertaining, innovative and informative form of advertising.

And soon there will come a time when the AR experience will be so seamless it will

be like you’re looking in the mirror. It just becomes part of that way in which you

adorn yourself and wear things. Maybe you don’t even ever have to own that Gucci

handbag, you just wear it perfectly in the virtual sense wherever you go. It might

even be more fashionable than the real thing



BIBLIOGRAPHY

Sr

No

.

Name of

the Author

Year Title of the

Book/Journal

Name of the Publisher

1 Azuma R. 1997 A survey of

augmented

reality.

Presence-

Teleoperators

and Virtual

Environments

1997

2 Arthur C. March 21,

2010

Augmented

Reality: its like

real life, but

better

www.guardianonline.com

3 Harvick, C. October

23, 2009

Augmented

reality set for

major change,

RBI report

www.mobilemarketer.com

4 Inbar, O July 2010 About

Ogmento

www.ogmento.com

5 Ray S. December

2009

Online display

Advertisement,

IAMAI Report

http://www.iamai.in/rsh_pay.aspx?

rid=Be3z5Mx62vs=

6 Holden W February

2011

Mobile

Augmented

Reality

www.juniperresearch.com


http://www.juniperresearch.com/

http://www.iamai.in/rsh_pay.aspx?rid=Be3z5Mx62vs=

http://www.iamai.in/rsh_pay.aspx?rid=Be3z5Mx62vs=

http://www.ogmento.com/

http://www.mobilemarketer.com/

http://www.guardianonline.com/


(Oppurtunities,

forecasts and

strategic

analysis 2011-

15)

7 Telibrahma January

13, 2011

Things that

shaped 2010 for

us

http://telibrahma.com/resources/

casestudies/

8 Sung Dan Februaury

2011

Augmented

Reality in

action-

advertising and

retail

http://www.pocket-lint.com/news/

38798/augmented-reality-in-advertising-

retail

9 Staff writer,

Juniper

Research

February

28, 2011

Augmented

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smart

advertising will

depress us all

http://www.techeye.net/software/

augmented-reality-and-smart-

advertising-will-depress-us-all

10 Stauber S. October

14, 2009

Ideas to shake-

up the

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www.morethanadvertising.com

ANNEXURENL Dalmia Institute of Mgmt Studies and Research Page 64

http://www.morethanadvertising.com/

http://www.techeye.net/software/augmented-reality-and-smart-advertising-will-depress-us-all



http://www.pocket-lint.com/news/38798/augmented-reality-in-advertising-retail



http://telibrahma.com/resources/casestudies/

http://telibrahma.com/resources/casestudies/


Questionnaire

Q1. Which of the following traditional advertising tools has the maximum impact on you while purchasing a product? (1 with the most impact and 5 with the least impact)

Advertising tools 1 2 3 4 5

TV commercialsRadio commercialsPrint AdsOutdoor Ads

Internet Ads

Q2. Do you believe that Augmented Reality (AR) advertising will gain popularity as an advertising tool?

Strongly Agree Agree Neither agree nor disagree Disagree Strongly disagree

Q3. Does AR fulfill the criteria of providing adequate information about a product/service?


Q4. Does the AR experience make an advertisement more entertaining and interesting?


Q5. Have you ever downloaded an AR application for gaining information about a product?

Yes



No

Q6. Do you find the AR technology easy to use?

Yes No

Q7. Rate the following factors that attract you to the use of AR as an advertising tool. (Rate on the scale of 1-5, with 1 being the least and 5 being the most)

Information Creativity Innovative Entertaining Easy to use

Q8. What in your opinion will be the future applications of AR advertising?

Making it possible to see a product in its environment before its completed Seeing and manipulating a product before its available Adding suggestions while shopping Enhancing entertainment experience Providing virtual advertising space Getting reviews on shop items by scanning a barcode in-store with a mobile phone Modeling of clothes by persons at home, making internet purchase of clothes easier

Q9. What hurdles are likely to constrain the deployment and adoption of AR advertising?

Technical barriers Market barriers Cost Lack of knowledge Limited real world image data

Q10. What in your opinion will be the future of AR advertisements?



Personal Details:Name: _________________________Age: 18-25 years 25-35 years 35 and aboveSex: Male FemaleOccupation: Student Business-man Professional (employed at an advertising firm) Professional (employed at a non-advertising firm) Other


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