Augmented reality: what you need to know

Facebook hosts its F8 conference for software developers in San Jose, and augmented reality is expected to play a big role.

Many of us have heard of virtual reality, but more people have likely taken advantage of augmented reality (AR) than you might think. Here's what you need to know:

What is augmented reality?

It's technology using a digital image and layering it on top of a person's view of the real world. Users can view this in multiple forms, such as a headset or device supporting AR, to something simpler like your smartphone camera.

Have I used this before?

Ever use Snapchat filters or play Pokemon Go? Congratuations, you have used a form of AR. With Snapchat, the app uses digital images like bunny ears or funny glasses and places them on your face when taking a picture. In the wildly popular Pokemon Go, users could view the creatures through their smartphone camera, simulating the experience of grabbing Pokemon in the real world. Other apps like Yelp have experimented with AR, too.

Who else is jumping on board?

Microsoft is working on a headset called HoloLens, a more sophisticated spin on augmented reality. For example, a user could play Minecraft through the device, with their block-filled world coming to life on a coffee table, or you play an action game where robots seem to be busting through the walls. Apple is also reportedly considering a move into AR, either with the next version of the iPhone or a pair of glasses. Google also famously brought AR to the spotlight with its Google Glass eyewear.

Why is this a big deal?

VR gets a lot of the attention, which is understandable since it's an impressive platform. However, AR is already a concept many users are familiar with, plus you don't have to spend lots of money to enjoy AR. During an interview with ABC News last year, Apple CEO Tim Cook said AR has more potential for breaking through to the masses than VR. Then there's the money. By 2020, AR and mixed reality -- which combines VR and AR -- will generate $30.4 billion in revenue, poised to top VR revenue in the long term, says a SuperData Research report in February.

Follow Brett Molina on Twitter: @brettmolina23.