Layar, which has been the ‘poster child’ for augmented reality smartphone apps, just launched a brand new app in the iPhone’s App Store.  If you’re still at a loss as to the significance of augmented reality, Layar’s own explanation from inside the app explains it well:

“Layar is a tool to browse the world. It enables exploration, more informed decisions, serendipity and fun. [...] While looking through the phone’s camera lens, a user can see houses for sale, popular bars and shops, tourist information of the area, play a live game, etc.”

How it all works

The app retrieves information from third-party developers who contribute their “layers” to the Layar platform. For example, there’s a layer called iMetro, and when it’s selected and you’re standing outside, Layar will display digital overlays of nearby bus stops and the time the next bus is arriving.

Layers are similar to plug-ins that customizes desktop browsers. There are also layers for Yellow Pages, Las Vegas casinos, and Wikipedia. The layers are free, as is the Layar app. However, Layar told Wired.com that after the platform generates enough interest, it might begin charging users for premium layers.

Some marketers have experimented with augmented reality (AR) to promote products through interactive and web-based applications, but AR is still in its infancy stage despite the huge potential it has to make our virtual experience very close to our real world.

Check out this great example from GE:

There’s been endless debate on the subject. Read Mashable’s article on the issue and then their follow up piece on AMP’s apology. Here’s my summary of what PepsiCo/AMP did right and what they did wrong.

What did the PepsiCo/AMP brand do right?

1. They created a controversial application that got people talking.
2. They created an application specifically targeted towards their demographic, young men.
3. When the online anger took off, they immediately responded and apologized if some saw it in bad taste, but that their intention was humorous. Here’s the tweeted apology.
4. They invited feedback.
5. They saw that the discussion was trending on the hashtag #pepsifail and tagged their tweeted apology with it. This first and foremost guaranteed that their apology would be seen, but they also accepted the community decision that this was how this story would be classified.

What did the PepsiCo/AMP brand do wrong?

1. The application’s content was not unique, it just played off of tired stereotypes.
2. It could have been funnier. AXE’s commercials and content are funnier because they create a completely over-the-top male fantasy. And AXE’s content really pokes fun at the male fantasy. This one didn’t really poke fun at male behavior, even though that was AMP’s tweeted intention. Rather it stereotyped women in an often unflattering way.

Having done standup comedy myself I know that offending people is an unfortunate part of the business. It’s hard to get away from it. There are very few comedians that don’t offend anyone. Even Jay Leno who is about as squeaky clean as you get actually has a mean streak as he makes fun of people for their ignorance in his “Jaywalking” segments.

Ultimately, was this application, the community response, and AMP’s response successful? I think it was successful for the following reasons.

1. I didn’t even know what AMP energy drink was before this happened. I’ve now “discovered” AMP.
2. Nobody died and they had an open and honest dialogue with the community about the application, and their intention. They didn’t cave to pressure and pull the application down (the usual response). Rather they engaged in a very open conversation. We’ve seen true social media failures where the communications department runs in around in circles trying to hide their mistake. Those epic failures live on as what not to do in social media. This will not live as one of those examples. Instead this case will live on as an example of how to spin a mistake into a win in social media.
3. They got TRAFFIC! As of Friday last week all of 150 people had download the program. Today, Wednesday, they have over 17,000 downloads, according to an AMP spokesperson I talked with. UPDATE: I talked with the AMP spokesman again, and it turns out those numbers are very dated. As of Thursday morning they had nearly 77,000 downloads of which 75,854 came AFTER the story broke on Mashable. They’re now the #2 free entertainment application, and #12 overall in free applications.

What do you think? Can you argue with success like that? Do you think the PepsiCo/AMP iPhone application was a success or a failure?