In this digital age, businesses are locked in a fierce battle for attention from customers.
Amidst the static of traditional marketing, a revolutionary weapon has emerged: Augmented Reality (AR); transforming how brands market their products and connect with customers.
Will AR become the game-changer in the global marketing landscape?
Key Takeaways
- Enhanced Customer Experience: AR transforms shopping experiences by allowing customers to visualize products in the real world, leading to increased satisfaction and confidence in their purchasing decisions.
- Interactive Storytelling: AR enables brands to create more engaging and immersive storytelling experiences, making marketing messages more impactful and memorable.
- Targeting Gen Z Consumers: AR resonates strongly with Gen Z, who prefer interactive and visually driven content. AR’s appeal to this demography positions it as a crucial tool in future marketing strategies.
- Increased Conversion Rates: Integrating AR in marketing has been shown to significantly boost conversion rates, as customers are more likely to purchase after interacting with products through AR.
- Reduced Return Rates: By providing a more accurate representation of products, AR can decrease the likelihood of returns, benefiting both customers and businesses.
- Digital Channel Integration: As e-commerce continues to grow, AR offers a bridge between online shopping and the tactile experience of physical retail, enhancing digital marketing channels.
- Personalization and Creativity: AR provides unique opportunities for personalized and creative marketing campaigns, allowing brands to stand out in a crowded digital landscape.
1/ But first, what exactly is AR?
To put it in simple terms, Augmented Reality (AR) is a technology that projects computer-generated images onto the real-world physical environment, creating an enhanced and interactive experience for users.
The term was first coined in 1990 by Boeing Computer Services Research employee Thomas Caudell to define the integration of computer-generated images into the real world.
AR is occasionally mistaken for VR (Virtual Reality), a simulated three-dimensional environment that enables users to completely immerse themselves in the artificial surroundings, usually by wearing a virtual reality headset.
Despite being two different technology concepts, both virtual reality and augmented reality involve the addition of digital elements to the real world.
In virtual reality, these elements are used to create a completely simulated environment, while in augmented reality, they are used to add new layers of interaction to the real world.
Contrary to the popular belief that AR is a distant technology concept, it is actually incorporated in many aspects of our daily lives.
All the Instagram and Snapchat filters that we use everyday in our stories, or mobile games that we can’t get enough of like Pokémon GO or Angry Birds: Isle of Pigs, etc. are applications of AR.
2/ Unveiling AR’s powerful core
AR has a broad variety of applications across many industries, and the potential to revolutionize many others. All of these applications, no matter how sophisticated, are by nature AR’s core functions.
These functions offer a glimpse into a future where the line between digital and physical blurs, and the possibilities are as endless as our imagination.
- World tracking: Imagine holding your phone up and seeing a 3D dinosaur roam your room, perfectly scaled and interacting with space – that’s world tracking in action. This technique uses sensors such as cameras, accelerometers, or gyroscopes to map your surrounding environment, track the orientation of the device in relation to it, and place virtual objects in it.
- Image tracking: AR can crack a cryptic QR code, a logo, or even a poster to unlock additional information and interactive experiences. Point your phone at a museum exhibit, and suddenly, historical figures come alive with animations and audio guides. Materials can leap off the page to display more than what they physically represent.
- Virtual try-on: AR lets you try on clothes, accessories, and even makeup, in a virtual world. Face detection and tracking precisely overlay digital items onto your image and also adjust them as you move, allowing for a personalized and realistic try-on experience right in the comfort of your home.
- AR filter: This technique applies digital effects to your images or videos, such as changing your appearance and creating animations. AR filters can be experienced through various platforms, such as Snapchat, Instagram, and TikTok.
3/ How AR is transforming the future of marketing
The global marketing landscape is in a constant state of evolution, propelled by technological advancements and shifting consumer preferences.
To illustrate how AR is redefining the marketing landscape and reshaping the way brands connect with their audience, let’s have a look at some of the emerging marketing trends nowadays to see how AR is actively playing its role in each.
3.1/ Greater emphasis on digital channels
The current ongoing shift towards E-commerce and social media platforms for shopping purposes is evident.
As more transactions take place online due to diverse demands and geographical boundaries, customers crave one thing above all: certainty.
Product visualization is crucial to buyers so that they can avoid hesitation and be confident in their online purchases.
With AR, virtual products materialize right into the real world, allowing consumers to try things on, compare sizes, and get a true feel for what they’re about to buy; especially if they are bulky or expensive items.
Michael Kors’ augmented reality Facebook advertiser in 2018, which allowed for virtual sunglasses try-on and in-app purchase, was recorded to yield a 14% incremental lift in conversions, a +20.4 point lift in ad recall and a +3.9 point lift in purchase intent.
This underscores the effectiveness of integrating AR features into the online shopping experience: businesses can benefit greatly from improved customer satisfaction, boosted sales revenues, and reduced product return rates as customers make more informed purchase decisions.
Furthermore, the increasing ownership rates of smartphones these days, coupled with the dominance of social media marketing, means that brands using AR can empower consumers to connect with their environments in more accessible ways.
All it takes a customer is to click a link or scan a QR code provided on social channels to experience an immersive environment built by their favorite brands. Consider these statistics:
- 79% of consumers are interested in using AR to interact with a product before buying (Snap x Ipsos).
- Interacting with products that have AR experiences leads to a 94% higher purchase conversion rate (Harvard Business Review).
- Reduced return rates of up to 30% have been reported by companies using AR (AR Insider).
- 75% of brands agree AR makes sure products or events are accessible to all (Snap x Ipsos).
3.2/ Greater focus on customer engagement
In today’s customer-centric market, engagement has become the cornerstone of all marketing strategies.
According to a recent survey by SuperOffice, nearly 50% of business respondents cited customer experience as their number one priority for the next 5 years, followed by product and pricing.
This shift of priority aligns perfectly with the potential of AR.
By applying AR interactive storytelling instead of monotonous visuals, brands can digitize customer experience in a way that stimulates both their senses and emotions.
AR would bring interactive elements to life, materializing digital environments that used to be available only on screens.
This helps create a stronger brand awareness and increase customers’ purchasing likelihood. Just think, parents would definitely be more inclined to buy their kids a cereal box that displays interactive AR characters telling stories upon scanning, rather than an ordinary cereal box, with ordinary packaging.
AR interactive storytelling can take any form from gamified challenges to choose-your-own-path stories, which allows audiences to become active participants.
This level of interactivity makes storytelling more personal, thereby boosting engagement and, in turn, conversion rates.
Customers don’t just buy your product, they buy experiences as well.
This doesn’t just stop at their purchasing experience at a store but also includes their interactions with your business on digital platforms.
AR is a powerful tool for businesses to fulfill the very first touchpoints of the customer journey and set the foundation for long-term brand loyalty.
3.3/ Gen Z is the next wave of consumers
Forget static ads and one-size-fits-all messaging.
Gen Z (i.e., people who were born in the late 1990s and early 2000s) is poised to become the largest generation of consumers in the future.
Understanding their unique preferences and behavior is crucial for businesses to execute marketing strategies perfectly tailored to this tech-savvy generation.
Gen Z has a distinctive pattern of digesting information: they strongly prefer video content and visually driven experiences (evidenced by the emergence of TikTok in recent years).
Brands that make use of stunning AR visualizations stand a greater chance of capturing Gen Z-er’s attention right at first sight and telling them compelling brand stories woven into interactive experiences.
At the same time, Gen Z also values authenticity and user-generated content (UGC).
If they find their branded AR experience interesting, they are willing to share it with their peers on social media, thus fueling organic brand advocacy.
A relevant advertising campaign isn’t just a message – it’s a viral phenomenon, propelled by the very generation that is driving the future of marketing.
Another important insight to consider is that this generation of digital natives is interested in out-of-the-box ideas.
Compared to traditional marketing methods, the integration of AR does a better job of injecting creativity and personalization into the campaign, enabling Gen Z to interact with brands in a way that resonates with their experience-hungry souls and fosters an emotional attachment.
Think creative, personalized, and even humorous campaigns like Burger King’s 2019 “Burn That Ad” campaign – 400,000 ads incinerated, and in-app sales soared 54.6% (Vuforia, Burger King internal data).
But be quick! Gen Z-ers’ average attention span is just 8 seconds, according to research by Microsoft in 2015.
But ironically, they have a higher ad recall rate.
You should nail your brand message in those precious 8 seconds with on-point AR visuals and authentic values (because Gen Z-ers appreciate genuineness!).
AR can be your key to unlocking this generation’s hearts and wallets.
Fun fact: 43% of Zoomers remember the last website they visited but not their partner’s birthday, or their social security number (if your website is memorable enough, of course).
4/ Weighing the merits and demerits of AR implementation
AR is indeed a game-changer in the realm of marketing strategies.
Its potential applications are not just promising, but transformative. As you contemplate whether this groundbreaking technology aligns with your business objectives, it’s crucial to consider the pros and cons.
We delve deeper into each of these aspects in another blog post, providing you with a comprehensive understanding to make an informed decision.
Conclusion
Marketing is like a war. Businesses launch marketing campaigns to get their names out there and differentiate from competitors, just like the way soldiers organize massive military campaigns to win against their enemy.
In this competition, AR is a strategic weapon to nurture a deeper connection between the brand and the customer, which is the key to driving sales figures and obtaining market share.
AR lets you showcase your values in an engaging way, giving your customers an immersive experience while instilling a stronger sense of brand awareness in their minds.
Just as Tim Cook said in 2017:
I’m incredibly excited by AR because I can see uses for it everywhere… I like our products amplifying thoughts and I think AR can help amplify the human connection.
AR is the future of marketing, and the future is now. Are you ready to embrace the power of AR and take your marketing to the next level?
If you are still wondering whether AR is the right choice for your business, or which AR solution best suits your business objectives, don’t hesitate to contact us via the form below and we’ll get back to you within 24 hours.
Let’s turn your vision into reality!
References
- Colormatics (2022). How to Grab Gen Z’s Attention Span in 8 Seconds or Less, https://www.colormatics.com/article/gen-z-attention-span/
- Harvard Business Review (2020). How AR Is Redefining Retail in the Pandemic, https://hbr.org/2020/10/how-ar-is-redefining-retail-in-the-pandemic
- Niantic Labs (2023). Niantic Launches In-Game Rewarded AR Ad Format at Cannes Lions International Festival, https://nianticlabs.com/news/niantic-rewarded-ar-ads
- Shorty Awards (2018). Michael Kors: Facebook’s First Augmented Reality Advertiser, https://shortyawards.com/11th/michael-kors-facebooks-first-augmented-reality-advertiser
- Snap x Ipsos (2022). Global Report: Augmentality Shift, https://downloads.ctfassets.net/inb32lme5009/6VsPlX04jWZxPSCkuANnzV/f46b28a5469e972feb4db665807ccdae/AugmentalityShift_Global_2022.pdf
- Statista (2023). U.S. Zoomers’ favorite qualities in ads 2023, https://www.statista.com/statistics/1387153/best-qualities-advertisements-adult-members-generation-z-united-states/
- SuperOffice (2023). 32 Customer Experience Statistics for 2024, https://www.superoffice.com/blog/customer-experience-statistics/
AR: The future of Marketing – Infographic
