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Monday, September 2, 2013

Daily Report: Automakers Embrace Augmented Reality for Virtual Showrooms

Young car buyers are seen as reluctant to visit showrooms, instead preferring to educate themselves online about their options. In response, automakers like Cadillac and Toyota are starting to embrace technology that tries to take the showroom to the buyer.

Known as augmented reality, the technology embeds images and videos in a picture on the user’s smartphone or tablet. The result is a far more detailed view of the image, often in three dimensions with added layers of information, Jaclyn Trop writes.

For example, when Cadillac introduced the ATS last year, it created a campaign in cities across the country that allowed observers to point an iPad at a chalk mural and watch the car drive through scenes like China’s mountainous Guoliang Tunnel and Monaco’s Grand Prix circuit. The goal was to grab the attention of potential buyers, especially younger ones, who would not normally think of Cadillac when researching new cars.

Later, Cadillac added the technology to its print advertising, pointing readers to download the brand’s smartphone application to view a three-dimensional model of the car. The app allows users to zoom in on the car and turn it 360 degrees by swiping their finger across the screen.

“It’s obviously different than going to a dealership, but at least it’s enough to engage with the vehicle in an environment where they’re comfortable,” said Arianna Kughn, Cadillac’s social media manager.

Audi has used the technology in its brochures and instruction manuals, while Toyota added it to a campaign with the computer-generated pop star Hatsune Miku to interest a younger audience in its 2012 Corolla and to increase the number of downloads of the automaker’s shopping app.

Other businesses are seeing an opportunity as well. Metaio, a German software company with an office in San Francisco, has worked on projects for Audi, Volkswagen and Toyota.