Impact of Augmented Reality in Mobile Applications

A guest post by Samantha J. Inguanzo (*)

Introduction

The advent of augmented reality is rapidly being integrated into various industries, especially the gaming industry, and mobile application developers are taking note of expanded possibilities. In contrast to fully artificial conditions produced with virtual reality, augmented reality (AR) coalesces users’ real-time environment with visual and audio content within the mobile application platform, drastically expanding field of use and application prospects (Garg, 2020).

AR can be implemented into mobile applications with or without the need of additional goggles to provide surface space for the overlay. This paper will discuss the various examples of AR being used in mobile applications and gaming systems, trends associated with AR, innovative applications, economic impact, health implications, and a discussion on its projected future and potential influence in business mobile application design around the world.

Trends in Augmented Reality

Niantic labs, the producers of Pokémon Go, began releasing new product features in 2018 to maintain their industry dominance, and is sure to influence contenders who are looking to gain market share within the AR Gaming space. First, they introduced Neon multiplayer technology which allows users to become more social and connect on two seperate mobile devices within their location-based AR world projected via the game platform and observe the same AR objects in space, as well as cross platform, or on both iOS and Android devices. Additionally, they expanded the current Buddy System, where users can select a “buddy” pokémon character to sync with and embark on a Buddy Adventure, to now allow two users and their respective buddy pokémons to all interact simultaneously. The feature even allows users to snap pictures together using the AR camera, and go on adventures as a group within the AR system (Statt, 2019).

Niantic also introduced various incentive programs to bolster use and create brand affiliates. One instance is the Wayfarer program, which enables users to recommend real favorite locations and landmarks within the environment to be considered for approval to be used within games such as Pokémon Go  and Ingress. This offers incentives to small and large businesses to suggest their stores as, “Sponsored locations,” for use in the Niantic Wayfarer location database in hopes of driving more foot traffic and maintaining a consistency of individuals in their respective locations (Statt, 2019). The desired result is to garner an appearance of firm popularity and desirability within their respective community, which favorably influence buyers. In 2018 a single real-world event generated an influx of 170,000 people to Dortmund Germany (Webster, 2018).

Nianic recently settled a class action lawsuit for their feature which allows users to request removal of certain Pokestops and battle gyms within 40 meters of their property line that cause an abundance of undesired foot traffic. The terms require the firm to respond to 95% of complain cases within 15 days of submission, and promptly remove the stop in question within 5 days of acknowledgement. Also outlined is a requirement to keep a database of private locations which stops have been eliminated to prevent reinstating stops at the same location, as well as in-game announcements to users which encourage them to maintain respect and civility towards real-world locations and their inhabitants (Valentine, 2019).  

Additionally, Niantic has released its formidable AR occlusion technology to its Real World Platform, which allows third party developers and game creators to access and utilize their coveted technology, which allows more true to life interactions between AR objects and ones existing in the real-world. Finally, Niantic has introduced a Beyond Reality Fund and Creator Program which will provide funds and access to app developers and AR startups who are looking to enhance their creation and further their ventures using the various technologies which have aided their success (Statt, 2019). Niantic dominated the AR gaming market until 2 years post its introduction of Pokemon, now other formidable competitors such as Jurassic Park and The Walking Dead are beginning to solidify their own market shares. Overall trends have been shifting a lot of development into a community framework, with Google deciding to open its Map application to the developer world, and the introduction of the Apple ARKit and Google’s ARCore (Webster, 2018). AR is now being extended to be used for more serious games and educational purposes, such as its long standing use in surgical training and flight simulators.

Critique / Analysis

Learning and Development

Gaming systems have been shown to influence user motivation as they are able to actively participate within an orderly, enjoyable and entertaining environment (Ryan, Rigby, & Przybylski, 2006). One paper explored the concept of using game systems to motivate increase of users civic engagement, promote self efficacy, repairment of justice, and pro social behaviors within society. The researchers’ assertion is that for these goals to be accomplished, the game’s design needs to be reinforcing and consistent with actions that encourage empathy, awareness and provide a foundation for reasonableness and prosocial behaviors (Steinemann et al, 2018).   

The two primary research questions of the article were if personalized missions would drive German speaking psychology students’ self reported justice restoration self efficacy and prosocial behaviors during the three weeks of the longitudinal two factor mixed design study, which had results collected via journal entries, and the implications for interface design. 

Novel AR games being developed for educational purposes, including serious games which are focused on educating vulnerable populations and bringing the intangible conceptual ideas into first-hand augmented experiences for workers to gain a deeper understanding and higher level of capability. One example is the 2013 conference paper entitled Enhancing cybersecurity learning through an augmented reality-based serious game which discusses the effects of creating a serious game to be used concurrently with a presentation in order to assist high school students between the age of 15 and 18 more comprehensively understand and be cognisant the cybersecurity risks associated with publishing personal data online. 128 of the students attended only the presentation without the game being added and 79 experienced the serious game as well as the presentation. Results of the 208 high school students surveyed across three different schools displayed no significant change for the amount of knowledge acquired among both groups of students since the information was identical, however there was a significant effect in the areas of perceived risk, and preparation for students who participated in the serious game. Additionally there was a significant decrease in this same cohort’s confidence in the safety of technology (Salazar et al. 2013). These results suggest that the students are better able to visualize these concepts and apply preventative measures via enhancement of the presentation  with the serious game interaction. 

Another serious game utilizing AR to in assessing capabilities and effectiveness of study is a prototype game that incorporates the Microsoft HoloLens, a wearable AR device, with a Construction Management Occupational Health and Safety Administration (OSHA) course assessment. The study involved 16 university students who were currently enrolled in the OSHA safety course in order to determine the effectiveness of the elements selected for assessment. There was both a traditional pen and paper assessment as well as an AR-based site assessment. The AR-based portion of the assessment strategically included scenarios of workers, drivers, and/or construction equipment in order to challenge students to identify unsafe working conditions based on their acquired knowledge. The results of the study show that students who performed well in the written portion also excelled in the AR-based scenario assessment, indicating that AR-based serious games may be useful for testing proficiency and aptitude in subject matters that are highly spacial and rely heavily on visualization of standards and principles in action (Holtkamp et. al, 2019). This is particularly useful as many issues in complex fields exist in the transference of knowledge from understanding into application within an individual environment and may decrease risk.

Another study conducted by first year Masters of Engineering students utilized both VR and AR game-based applications to assist in educating K-12 students on topics in civil engineering. For the sake of this paper, we will focus solely on the AR application which was designed in CAD and then exported to the game engine with environment details added via  Unity 3D with the goal of testing the importance of game-based interface design and assessing the effect of integrating AR/VR technology into the learning environment. K-12 students were given an AR-based application of the school building model which had components of the various disciplines associated with civil engineering, including structural, hydraulics, and construction, which were their task to identify within the AR-based environment. The AR application also had the capability of allowing students’ mobile device cameras to capture and recognize specific images which allowed for a greater depth of interaction and a higher level of conceptualization. The students offered interface design feedback via a four point Likert scale in which a majority of students elected the option, “AR interface was significantly important to understand the concepts,” and the second highest choice being, “AR interface was essential to understand the concept.” Additionally, another survey intended to divulge the impact on students’ desire to learn found that the majority of students indicated that the motivational relevance of the interface was very important, with the second highest choice being important (Denis et al., 2017).

Utilizing these serious games as a potential framework for assessing learner comprehension is vital for determining not only aptitude but also readiness in applying learned skills. In addition, this form of assessment may reduce bias towards students who experience learning impairment due to medical disorders and who will perform well in field exercises, but may have below average ability completing written examinations.

Innovative Business Applications

The real estate industry is now considering AR applications to help bolster interactivity with potential buyers. The increased level of engagement with would be purchasers offers a higher quality experience when browsing. AR technology allows floor plans to transform from difficult to imagine 2-D renderings into fully 3-D experiences, reducing both associated costs and time allocated for realtors to show properties which do not match their style and structural preferences (NineHertz, 2020).

Similarly, a house can be viewed by property seekers from different states or countries without requiring travel to immerse themselves in the environment. There is also more transparency, as the mobile app can include every detailed specification of the property, which allows for greater visibility and market exposure without requiring in person open house events. Developers are integrating both AR and VR technologies to create property blueprint renditions which are very similar to holographic images, further compelling purchasers to consider their properties and slightly increasing pressure to buy as the property has increased viewers (NineHertz, 2020).     

Economic Impact

According to the 2019 App Annie State of Mobile Report, the gaming industry has reached a new pinnacle of monetization in 2018. In fact mobile game purchases in 2018 constituted an enormous 74% of all consumer spending within online app stores. The gaming industry is predicted to reach 60% market share by 2019, a drastic 35% increase from the 2013 market share. China observed the most significant increase in consumer spending growth over the past two years, experiencing a 105% increase from 2016 to 2018 (App Annie, 2019).  

The United States recorded slightly less than half of the consumer spend growth with a 45% increase from 2016 to 2018, while Japan was third with an observed 25% increase during the two year period. Various developing markets also observed significant growth during this period although the monetary level of consumer spend was all less than $5B each. These include South Korea with an 80% increase, Germany with a 70% increase, the United Kingdom with a 35% increase, a 45% increase in Canada, a 60% in both France and Brazil, and a notable 90% increase in gaming consumer spend observed in India (App Annie, 2019).     

App Annie’s 2019 Report indicated that hyper-casual easy to play games such as Helix Jump, and battle royale games, such as Fortnite, dominated downloads within the gaming industry. However, Pokémon Go, which is an augmented reality (AR) location-based game which debuted in 2016 was still ranking high two years later. In 2018 Pokémon Go ranked as the number one highest smartphone game in the US, second highest in Canada, and was ranked third highest in France, Germany, Japan, and the UK. Statista estimated in 2019 that real estate industry advertising spend would reach $74.19 M due to the adoption of AR and mobile apps to promote their business. Ad spend has been on an upward trajectory, with  $74.18 M reported in 2018, $81.89 M projected for the 2019 total and $89.79 M projected for 2020 (Guttmann, 2020).

Digi-Capital researched the economic impact mobile AR apps produced, and found that revenues of $3 B globally were generated in 2018, a figure that is 2% higher than their forecasted projections. This was driven by ad spend, app store sales, and eCommerce platform sales. The AR installed base grew much more sluggishly at 850 M worldwide. Digi-Capital asserts that AR will be reaching its peak acceptance by the tail end of 2020 and has optimistic projections of $70 – $75 B in revenue and 2.5 B installed base by 2023 (Digi-Capital, 2019).  

Health Implications

One study concluded AR games (ARGs), such as Pokémon Go, may be useful as medical interventions aimed at increasing patients’ physical activity. Subjects were 65 medical students who played the game on iPhones. Results showed a correlation between walking distance and intensity of use. The overall conclusion from the researchers was that while there is potential for healthy lifestyle promotion, the increase in activity was fleeting and future studies are needed to record consistent positive effects on fitness for it to be suitable as a reliable medical intervention (Ni et al., 2019) AR is still fairly new to use within society and much more conclusive research is necessary in order to comprehensively understand all the possible risks and benefits associated with it.

Interactive and immersive play, which is quintessential of ARGs has proven to potentially produce both positive and negative side effects. ARGs have been reported as being effective in increasing personal motivation, sociability in users, and level of physical activity. However, they have also produced documented injuries to users, reduced attention to real-world occurrences, opens the gateway to cyberbullying and inherently create more vulnerability for users with less data privacy and real-time location tracking (Das et al., 2017). 

Discussion

The gaming industry has been the main gateway of AR into mainstream society adoption. This trend is projected to facilitate adoption by businesses with proven success and incentives for firm growth via increased interactivity with customers, strengthening of brand reputation and the option of creating more valuable experiences for consumers to promote loyalty as well as to stay competitive within the marketplace. Overall the integration of AR in mobile applications appears to be a novel way of amplifying the content’s desired results and assist in reaching the mission and purpose of a firm’s existence. Niantic is leading the way in the gaming industry and highlights one successful case for businesses to imitate within their own competitive strategies.  Past success of generating $3 B in worldwide revenues ,and projected growth of upwards to $75 B in revenues by 2023 AR integration in mobile applications is definitely a novel trend to follow. Healthcare, advertising, education and entertainment are prime industries for AR adoption, and utilizing AR-enhanced mobile applications for business may be a new gateway for differentiation among competition and maintaining a dominance within the competitive marketplace.

References

• App Annie. “The State of Mobile 2020,” Available at: https://www.appannie.com/en/insights/market-data/state-of-mobile-2020/
• Das, P., Zhu, M., McLaughlin, L., Bilgrami, Z. and Milanaik, R., 2017. Augmented Reality Video Games: New Possibilities and Implications for Children and Adolescents. Multimodal Technologies and Interaction, 1(2), p.8.
• Digi-capital.com. 2019. For AR/VR 2.0 To Live, AR/VR 1.0 Must Die | Blog About Augmented, Virtual And Mixed Reality Industry | Digi-Capital. Available at: https://www.digi-capital.com/news/2019/01/for-ar-vr-2-0-to-live-ar-vr-1-0-must-die
• Dinis F. M., Guimarães A. S., Carvalho B. R.,  and Martins J. P. P. (2017). “Virtual and augmented reality game-based applications to civil engineering education,” 2017 IEEE Global Engineering Education Conference (EDUCON), Athens, pp. 1683-1688.
• Garg, N. (2020). 5 ways Augmented Reality is redefining the gaming industry. https://e27.co/5-ways-augmented-reality-is-redefining-the-gaming-industry-20190415/
• Guttmann, A., 2020. U.S. Real Estate Industry Ad Spend 2019 |  Statista. Available at: https://www.statista.com/statistics/470650/real-estate-industry-ad-spend-usa
• Holtkamp B., Alshair M., Biediger D., Wilson M., Yun C., and Kim K. (2019). Enhancing subject matter assessments utilizing augmented reality and serious game techniques. In Proceedings of the 14th International Conference on the Foundations of Digital Games (FDG ’19). Association for Computing Machinery, New York, NY, USA, Article 46, 1–8. DOI:https://doi.org/10.1145/3337722.3337743
•  Ni, M., Hui, R., Li, T., Tam, A., Choy, L., Ma, K., Cheung, F. and Leung, G., 2019. Augmented Reality Games as a New Class of Physical Activity Interventions? The Impact of Pokémon Go Use and Gaming Intensity on Physical Activity. Games for Health Journal, 8(1), pp.1-6.
• NineHertz, T., 2020. How AR And VR Mobile App Development Is Changing The Real Estate Industry. MobileAppDaily. Available at: https://www.mobileappdaily.com/how-ar-vr-mobile-app-development-impacting-real-estate-industry.
• Salazar, M. & Puerta, José & Laorden, Carlos & Bringas, Pablo. (2013). Enhancing cybersecurity learning through an augmented reality-based serious game. IEEE Global Engineering Education Conference, EDUCON. 602-607. 10.1109/EduCon.2013.6530167.
• Stanford University. (2019, May 22). How augmented reality affects people’s behavior. ScienceDaily. Retrieved from https://www.sciencedaily.com/releases/2019/05/190522101944.htm
• Statt, N. (2019). Pokémon Go is getting a live AR multiplayer feature called Buddy Adventure. The Verge. Retrieved from https://www.theverge.com/2019/11/6/20950615/niantic-pokemon-go-live-multiplayer-ar-augmented-reality-buddy-adventure.
• Valentine, R., 2019. Class Action Lawsuit Against Niantic Reveals Proposed Settlement Terms. GamesIndustry.biz. Available at: https://www.gamesindustry.biz/articles/2019-02-16-class-action-lawsuit-against-niantic-reveals-proposed-settlement-terms.
• Webster, A. (2018). Two years later, Pokémon Go finally has some competition. The Verge. Retrieved from https://www.theverge.com/2018/7/12/17562444/pokemon-go-ar-games-walking-dead-jurassic-world.

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(*) This blog post initially appeared as an essay for one of my courses at Florida Atlantic University. It is being shared here as a guest blog post with the author’s consent.
All views and opinions expressed in this post are those of the authors and do not necessarily reflect my opinion or the official policy or position of any agency, organization, or company.

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Featured image: photo by Mika Baumeister on Unsplash