AR is one of the most talked about new technologies in the world, but it’s also quite widely misunderstood. So what is augmented reality? More importantly, how can AR benefit small or local businesses?

These are exactly the questions we’ll consider today.

Specifically, we’ll look at how AR works, as well as some of the most common ways businesses have used it to maximise their profits and provide awesome user experiences. But before we dive in too deep, let’s look at a broad overview of what AR is.

What is Augmented Reality?

Essentially, augmented reality allows users to enhance their surroundings (reality) visually using their phone or other device.

It does this by generating images over real life images, enhancing a person’s perception of their surroundings. This is sometimes mixed up with virtual reality (VR). The difference is that VR generates a whole new environment.

What is augmented reality featured image

AR simply overlays new elements onto an existing environment.

Augmented reality allows users to see their surroundings with enhanced features, whereas virtual reality places the user to completely new surroundings.

What is augmented reality example image.
Augmented reality is an increasingly popular tool for mobile apps. Image credit: ProfileTree

Beyond the simple overlay of digital elements, Augmented Reality (AR) presents a fascinating intersection of our physical and virtual worlds. To truly grasp its potential, let’s explore the technology with in-depth detail, concrete examples, and its transformative applications across diverse industries.

Beyond Basics: Understanding AR’s Nuances

Types of AR:

  • Marker-based AR: Recognizes specific images or patterns to trigger digital content, like IKEA’s furniture placement app.
  • Location-based AR: Overlays information based on GPS coordinates, seen in Pokemon Go or museum exhibit guides.
  • Projection-based AR: Projects digital elements directly onto physical surfaces, popular in interactive retail displays.

Core Technologies:

  • Computer Vision: Enables accurate tracking of physical objects and real-time environment mapping.
  • 3D Modeling & Rendering: Creates realistic digital elements that seamlessly blend with the physical world.
  • Sensor Fusion: Combines data from various sensors like cameras, gyroscopes, and GPS for precise positioning and interaction.

Data-driven Insights:

  • Global AR market expected to reach $198.4 billion by 2025. (Statista, 2023)
  • Over 1 billion active AR users worldwide. (Digi-Capital, 2023)
  • AR investments rose by 98% in 2022 compared to 2021. (PwC, 2023)

Industry Applications: A Glimpse into the Future

Education: Interactive learning experiences with 3D models, virtual field trips, and gamified lessons. Healthcare: Remote surgery with AR-guided tools, real-time patient data visualization, and enhanced medical training. Retail: Virtual try-on experiences, interactive product displays, and location-based promotions. Manufacturing: AR-assisted assembly instructions, remote maintenance workflows, and real-time quality control. Marketing: Immersive product demonstrations, location-based brand experiences, and interactive storytelling campaigns.

Beyond the Screen: Unlocking Personal Impact

AR empowers individuals beyond just business applications. Imagine navigating unfamiliar cities with real-time directions overlaid on your view, learning a new language by interacting with translated objects, or experiencing live music events with enhanced visual effects. The possibilities are truly limitless.

History of Augmented Reality

AR is one of those technologies that feels like it has come straight out of science fiction. In fact, many people would assume that the processing power needed to overlay images onto your surroundings in real time is pretty hefty.

There is some truth to this, but in reality, things are a little bit more complicated.

Surprisingly, the first appearance of augmented reality was way back in 1968, but it wasn’t until 30 years later, in 1998, that it first made its way into the public eye, as it began being used in the entertainment industry.

What is Augmented Reality (AR) In 60 Seconds

The Birth of AR

In 1968 a Harvard Professor and one of his students invented the first instance of augmented reality. It was a head-mounted display device that hung from a ceiling and needed the user to wear a helmet-like device.

This generated computer graphics, and is also often seen as being one of the first instances of virtual reality (VR). It wasn’t until six years in 1974, that a larger system was made. The system was developed by Myron Krueger and was known as an ‘artificial reality’. Entwicklung von Erweiterter und Virtueller Realität has come a long way since its early developments.

It used many different projectors and video cameras to emit silhouettes in an onscreen interactive environment.

In 1992 one of the earliest functioning AR systems was created for the US air force. It was used to allow personnel to operate remotely guided machinery.

Two years later in 1994 the first augmented reality theater production was produced. It used projections and video technology to show virtual objects on the stage. Dancers on the stage then seemed to dance around these objects.

The production was a great success. It was accurately called ‘Dancing in Cyberspace’, emphasising how AR seemed to be an ‘out of this world’ technology.

We hope you like our ProfileTree pet running riot on our home page! Courtesy of a Snapchat Filter…a form of AR. Image credit: ProfileTree

Modern Augmented Reality

Since the early 2000s, we’ve seen a real boom in Augmented Reality. The NFL have used it to insert virtual lines onto the field from its very popular and widely used Skycam. This has since been replicated by just about every major sports league in the world.

Volkswagen have also started to use the technology as a way to train mechanics and technicians. Their MARTA app gives technicians step by step guides to performing common fixes. This allows technicians to learn by themselves, cutting training costs.

Google also released the Google Glass. Which are designed to be a wearable AR device. These supplement the wearer’s real life environment with additional information from Google. For instance, Maps directions, or reviews from Google My Business.

Today, AR is one of the most valuable and fastest growing technologies in the world. In fact, the value of the industry has absolutely exploded in recent years:

What is augmented reality international statistics
Augmented reality is growing in value all around the world. Image credit:

Okay, so this all sounds very exciting. However, there’s a big difference between multinational companies like Volkswagen and Google and your average SME. How can AR benefit the little guy?

To begin answering this question, let’s dive a little deeper into how AR works.

The Rise Of Technology-Augmented Reality(AR), Virtual Reality(VR) And Mixed Reality(MR)

How Does Augmented Reality Work?

Different devices use augmented reality in different ways from one another. Devices that users wear, such as the Google Glasses, bring AR to the user’s eyes directly. Other devices use cameras for apps within the device, for example Pokemon GO or Snapchat.

And finally, projectors and video equipment can be used for augmented reality. This is how the theater production of ‘Dancing in Cyberspace’ was produced.

Most often, these major AR applications are built from scratch. However, off-the-shelf AR tools are becoming more and more common.

This is important, as augmented reality experiences are difficult to build and deploy. The more convincing the experience you want to create, the more difficult this becomes. As such, you need more technical expertise and processing power.

This essentially comes down to how the overlaid AR elements respond to the real world environment. If you simply placed a static image in the user’s field of vision, this wouldn’t be particularly impressive.

When an AR element interacts with what’s real, this is where the magic starts happening.

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Different Types of Augmented Reality

To explore this idea of interactivity more thoroughly, we need to look into the more technical side of how AR experiences are built and designed. Specifically, we’re going to look at the four main ways of building AR experiences. These are:

  • Marker-based AR,
  • Markerless AR,
  • Projection-based AR,
  • Superimposition-based AR.

Let’s take a look at each in turn.

Marker-Based Augmented Reality

Marker-based augmented reality is probably the most commonly used method for building AR experiences. This type of AR is made to work when a camera/app is scanned over a visual marker.

The classic example of a visual marker is a QR code:

What is augmented reality
QR codes are incredibly popular for AR apps. Image credit: Markus Winkler

This code will then show examples of a real-world object on a user’s device when they scan the code. For example Coca-Cola, in theory, could set up a QR code on each of their products.

Then, when a user scans this code they can see examples of every other product Coca-Cola makes. This is a perfect advertising opportunity for a business of the size of Coca-cola.

Marker-based augmented reality is a wonderful technology because you can use it anywhere.

You can apply it to advertising, teaching in schools and even for awareness campaigns. For example in learning, students could use iPads in the classroom to scan a code/marker and it can then play an AR video.

Markerless Augmented Reality

Markerless augmented reality is a type of AR which triggers experiences without the need for a specific marker, like a QR code.

The technology uses a wide range of other technologies including GPS and other location tracking technology, built within devices to do this. For example, an AR element may be overlaid when a user goes to a specific destination, or passes an NFC device.

When combined with Google Maps, for example, we could see this technology become a greater and greater part of life.

After all, it’s potential is very powerful. For example, in the future, users could potentially go onto maps with their device’s camera and see all the different businesses and shops surrounding them. You could then click on one of them and it could show you reviews about the shop or restaurant, opening times, even what it sells.

This could make life very easy when trying to find places to eat and shop close to you.

Projection-Based Augmented Reality

Projection-based augmented reality often seems quite unusual at first. You’d have guessed right if you thought the technology uses projection, because it does. The difference is that projection-based AR can detect users’ touch and movement, allowing the projected image to interact with the world around it.

Freaky, right?

This technology projects artificial light onto surfaces. Users can then interact with the light by touching ‘buttons’ which are just projected light. The application then recognises and senses the human touch by changes and interruptions in the light stream.

Laser plasma technology can also be used in this kind of AR technology, by projecting 3D images (holograms) into the air.

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Superimposition -Based Augmented Reality

Superimposition-based augmented reality is one of the most fun types of AR. Many companies have used this type of AR to help their customers feel more connected to their brand.

This type of AR replaces images fully or partially on a device by overlaying objects. For instance Ikea is one of the companies to use this type of AR. Users can place objects within their screen (usually within a room), from the Ikea catalog.

In other words, users can see how a piece of furniture would look in their room, without needing to purchase and assemble it first.

This is a great way to improve sales of a product and a fun and interactive way customers can see if they like a product without buying it. They can even compare how a variety of items would look in their room.

However, this has much more important applications, beyond simply being used to improve sofa sales. For example, superimposition-based AR is increasingly used in fields as diverse as fine art restoration and structural engineering.

Familiar AR Examples

As we noted earlier, augmented reality has been around for a lot longer than you might expect. You might be wondering, if this is the case, how come you’ve never noticed it? Perhaps before the current industry buzz around AR, you didn’t realise how common it was.

With that in mind, let’s look at a few common everyday AR applications that might have slipped under your radar.

Car Brands – In-Car Experience

Turning again to the example of the car sales industry, car manufacturers were among the first to use AR by unlocking its abilities to promote new cars. Interested customers can use AR to get the feel for different interior configurations.

In Berlin, the German Democratic Republic Museum gives visitors the experience of driving around Communist East Germany, using a modified Trabant with a HD screen in place of the wind shield.

The next prediction for the motor trade is that car makers will find a way to use augmented reality in cars themselves. Imagine directions and warnings overlaid with your actual view as you drive, or guides in your wing mirrors to help you parallel park.

Ikea – Swedish Innovation

As noted already, in 2017 Ikea created an app allowing customers to see how a sofa or a table will look in their own home. By viewing a room through a device camera and using the Ikea app, the products can be seen in place. A superb ‘try before you buy’ feature.

The app is a much more impressive AR example than a previous Ikea attempt an incredible six years ago.

The timescales involved in Ikea’s time with AR shows proves that no business can say they didn’t see the AR trend coming!

TopShop – An Early Adopter

As early as 2011 – yes, 2011 – TopShop introduced virtual changing booths allowing customers to see how a digital version of an item of stock would look being worn.

All without changing room queues or carrying bundles of clothes around.

This blurring of the lines between the products on the shelves and, say, products still in the warehouse could be very big news in the future for some retailers. Customers will increasingly be able to have an in-store experience from the comfort of their own homes.

AR vs. VR: Unveiling the Differences

The terms “Augmented Reality” (AR) and “Virtual Reality” (VR) are often used interchangeably, but they offer distinct experiences. Let’s dive into the key differences between these two groundbreaking technologies:


  • AR: Overlays digital elements onto the real world, keeping you grounded in your physical surroundings. You’re still aware of your environment, but it’s enhanced with virtual information.
  • VR: Completely replaces your physical surroundings with a simulated virtual environment. You’re immersed in the digital world and disconnected from your real-world surroundings.


  • AR: Allows interaction with both real and virtual objects. You can use your hands, voice, or gestures to manipulate digital elements within the physical world.
  • VR: Primarily focuses on interaction with virtual objects within the simulated environment. You typically use specialized controllers or hand gestures to navigate and interact within the VR world.


  • AR: Often requires minimal hardware, like smartphones or smart glasses. These devices overlay virtual elements onto your view of the real world.
  • VR: Requires specialized headsets that completely block out your real-world view and immerse you in the virtual environment.


  • AR: Widely used in gaming, education, retail, manufacturing, and maintenance. AR enhances experiences and provides information within the real world context.
  • VR: Primarily used in gaming, entertainment, training simulations, and virtual tourism. VR creates fully immersive experiences for various purposes.


ImmersionOverlays digital elements onto real worldCompletely replaces real world with virtual environment
InteractionReal and virtual objectsPrimarily virtual objects
HardwareSmartphones, smart glassesSpecialized VR headsets
ApplicationsGaming, education, retail, manufacturing, maintenanceGaming, entertainment, training, virtual tourism

Here are some additional points to consider:

  • AR has the potential to be more accessible and less expensive than VR due to its minimal hardware requirements.
  • VR can offer more immersive and realistic experiences than AR, but it can also be isolating and potentially disorienting.
  • Both AR and VR are rapidly evolving technologies with exciting potential for the future.

Using Augmented Reality in the 2024s

So far, so last decade!

These days, progress in AR is largely being driven by social media sites, most notably Facebook. Not only did Facebook push AR heavily for developers in 2017, the social giant is now trialling augmented reality ads right in your news feed.

They said: “We will begin testing AR ads with some additional advertisers, such as Sephora and others in fashion accessories, cosmetics, furniture, gaming and entertainment, and we plan to roll out AR ads more broadly to other industries over the course of the year.”

Let’s keep in mind that Google has long since set out their stall with Google Lens – allowing you to read signs and identity real-world items. Meanwhile, Apple’s ARKIt for IOS, released to support the rise of AR, is well established.

Augmented Reality uses by Industry

A number of big claims are made about how AR will touch all aspects of life in the near future. You could reasonably be skeptical about this, especially as similar claims are made about so many other hot new technologies.

As a business, it’s hard to cut through this and know where it will actually make an impact.

Another way of thinking about this is that many of the examples we’ve given above relate to consumer-focused companies. These are great, but how applicable are they to B2B companies or even other organisations like NGOs?

With that in mind, let’s take a more sectoral approach to how AR can be used.

Augmented Reality Technology in Education, Mixed Reality and Virtual Reality with Nuala Trainor

AR in Education

With the rise of technology in the classroom, it won’t be long till augmented reality finds its way into many classrooms. After all, primary schools and secondary schools in the UK have long used the likes of iPads and interactive white boards in the classroom.

Even the likes of McDonalds in the UK have brought iPads to their store for kids.

With so many schools now using technology to teach, this opens up a great space for the use of AR in the classroom. In the future, students could use applications to bring more fun into the classroom and learning.

Instead of notes being taken and shown on notes, students can now learn by themselves easier and save notes much easier with an introduction of AR in the classroom. In the COVID era, this trend is set to increase even further, as more students learn from home.

It also has the potential to bring fun into the home setting and motivate students more. When reading books, students could scan codes and other elements. This could then show facts about the topic, an educational video or even audio.

Obviously this is a much more enjoyable way to learn.

Use of AR in Retail

Retail is another sector in which there has been an AR boom. As we know, the likes of Topshop, American Apparel and Converse have benefited from using AR technology.

The use of AR in retail can be a great technique to boost sales. With more and more people using smartphones, more and more people now have access to the use of Augmented Reality.

There are many benefits to the use of AR in retail including breaking boundaries, especially with customers who speak a different language, engaging customers and many other benefits.

Tourism and AR

Similar to the ways AR can be used in education and retail, this technology can also be used in tourism. When travelling around the world finding out all the information from every destination and attraction can be hard.

That’s especially if you don’t have time to take every tour available.

With the help of AR people can learn about attractions quickly by scanning attractions. For example if a person was in Barcelona, you of course need to visit the Sagrada Familia and Park Guell.

Both attractions are filled with inspiration, having been designed by Antoni Gaudi. Tours within the Sagrada Familia and the museum within the park can easily sell out. This might even happen on the only day you’re able to visit.

This is where AR is helpful. Without a tour or getting close enough to find sign boards with information, AR can help you learn a great deal and quickly too. In other words, it is a quick and convenient way to learn about attractions.

Even before you get to a destination, AR can be helpful for researching and booking a holiday, as you are able to check out the key sites in advance, and explore everything they have to offer.

Saving Lives with AR in Healthcare

One of the most vital industries which can use this technology to its full potential is healthcare and medicine. Not only could it be helpful for professionals, it can also teach students easily.

For instance, if a student needs to learn the anatomy of a human body.

They could scan an anatomical model and the AR device could show videos of the human body, show facts or even play a quiz. All of which can be vital parts of learning.

It can also be used as part of surgeries and operations.

Surgeons and other professionals could wear a Google Glass-type device during the operation. The device could then show the professional the ideal places to perform certain tasks, which organs are where and much more.

As surgeries are taken with the help of screens and other staff.

AR could make surgeries safer by not taking the person away from the surgery to look at screens around the room. This could allow for the operation to be finished more safely by finishing the operation a little quicker, as well as reducing the risk of infections.

AR in Other Sectors

Manufacturing and real estate are two other markets where AR could improve services. Both sectors could use AR to present new products and designs to their customers or meetings. This can be used to increase early buy-in for in-depth projects.

This would be a great use of AR and it could save companies money as they wouldn’t need to make a model or a prototype for the meeting. If the product just isn’t right all that would need changed is the AR design and not the model or prototype.

Sport is another area with potential for AR. In many sports AR systems are already implemented, such as the Hawk-Eye system used in many sports especially tennis. In the future, you shouldn’t be surprised if it was brought into football and other sports.

AR can also keep people at home up to date with key information and even keep an eye on a certain player in real-time. A system that would be very similar to post-match analytics.

Augmented Reality for Businesses: Key Takeaways

Overall, there is an awful lot more to AR than simply hype. In fact, this new technology really does have the potential to touch countless different facets of business operations, sales, marketing and customer service.

The tricky thing for business owners is knowing how and where to spend their money on AR. As ever, it’s crucial to keep your bottom line in mind.

For example, a fully custom augmented reality project is probably not right for every business. Off-the-shelf solutions will typically offer considerably better ROI. As with many technical investments, your best option is generally to engage an agency for advice.

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