Introduction to Baidu’s AR Lab
Chinese search engine Baidu has launched an augmented reality (AR) lab in Beijing as a part of a $200 million effort to spice up its shrinking profits with cutting-edge technology. The lab, which currently employs 55 people, will initially concentrate on driving revenue through AR marketing, with plans to explore healthcare and education in the longer term.
What is Augmented Reality?
Augmented reality involves rendering virtual images over real-life settings viewed on a smartphone, headset, or other device. This technology was popularized in 2016 by Nintendo’s Pokémon Go game. In marketing, AR software could be used to animate a product or a branded space, providing a brand new and interactive method to engage with customers.
Baidu’s AR Launch
Baidu’s AR launch comes as the corporate prepares to report its full-year earnings next month. The company has forecast a revenue drop of around 4.6% as a consequence of recent government curbs on medical promoting, which have significantly impacted its core search business. The curbs have led to a 16% drop in ad customers within the quarter led to September.
Investment in AI and AR
In an effort to kick-start recent growth, Baidu injected $200 million into its AI and AR unit in September. This was followed by the announcement of a $3 billion investment fund in October, specializing in mid-to-late stage startups. The company is currently working with several brands, including Yum! Brands’ KFC, BMW, and L’Oreal’s Lancome, to develop AR marketing campaigns.
Applications and Future Plans
Baidu began working on AR technology two years ago and is now working on integrating it with AI to supply visuals able to interacting with real-time surroundings. According to Andrew Ng, the chief scientist overseeing Baidu’s AI, AR, and deep learning projects, "AR marketing is taking off… There are few content formats where the content is evergreen—AR might be like that." The company has demonstrated a variety of high-end AR applications and is optimistic about its potential.
Regulatory Environment
AR technology remains to be in its regulatory teething phase in China. While Pokémon Go has not yet launched within the country, location-based AR concepts have sprung up, drawing the ire of regulators who’ve refused to license some services over security concerns. However, in line with Ng, Baidu has not encountered the identical issues.
Conclusion
Baidu’s launch of its AR lab marks a big step in the corporate’s efforts to revitalize its profits and stay ahead of the curve when it comes to technology. With its investment in AI and AR, Baidu is well-positioned to capitalize on the growing demand for AR marketing and other applications. As the technology continues to evolve, it’ll be interesting to see how Baidu and other corporations within the industry navigate the regulatory environment and push the boundaries of what is feasible with AR.
