In the rapidly evolving field of digital marketing in 2024, one technology stands out for its transformative potential and it’s not AI as you would guess: it’s Augmented Reality (AR). AR superimposes digital elements onto the physical world, creating enhanced real-world experiences. By combining real-time data with digital content, AR is accessible through mobile devices and AR glasses, making it a versatile tool for marketers. In this article, we’ll explore how AR can revolutionise marketing strategies and provide innovative ways for brands to engage consumers.
The Rise of AR in Marketing
The evolution of AR from a gimmick to a powerful marketing tool has been swift and impactful. As Sebastian Naum of Forbes notes, AR is a transformative technology reshaping the marketing landscape in 2024. As he puts it, this technology helps bridge the gap between the virtual world and the real world so that customers can feel more confident before purchasing, and build emotional connections to brands in playful and memorable ways. This shift is driven by the technology’s ability to offer immersive, interactive experiences that resonate deeply with consumers.
Market research suggests that AR at the moment is an undervalued and underutilised resource in advertising. According to Ipsos, 75% of consumers are interested in using AR to interact with a product before buying. This is not just about purchasing decisions; the same study highlights a wide range of AR experiences consumers are eager to explore, yet brands more often than not don’t deliver on these expectations. By 2025, around 60% of the U.S. population and almost all people who use social / communications apps will be frequent AR users, Ipso predicts. This number doesn’t seem overly exaggerated considering that Snapchat recently announced that over 300 million Snapchatters engage with AR daily, on average. Moreover, ARtillery Intelligence projects a staggering $58 billion in AR-influenced consumer spending by 2025, a substantial leap from near-zero in 2019.
What’s even more compelling is that brands already incorporating AR into their advertising strategies are seeing remarkable results. A study by Meta revealed that brands experienced a threefold boost in brand lift when combining traditional ads with AR ads compared to traditional ads alone. Additionally, campaigns with AR effects reported a 59% lower cost than those without AR. According to a report by Shopify, brands using 3D and AR have experienced up to a 200% increase in conversion rates.
Augmented Reality (AR), combined with the rollout of 5G networks, is poised to revolutionise telecommunications by transforming the devices and services offered by telecom companies. The high-speed, low-latency capabilities of 5G enable seamless AR experiences, such as visualising 3D CAD models in construction or providing real-time remote assistance to field service technicians. As a result, AR’s 3D holographic displays could redefine communication, allowing users to interact through realistic holograms. This shift, supported by AI, would also generate vast amounts of new data, creating significant revenue opportunities for telecoms. Morgan Stanley predicts the Chinese metaverse market could reach over $8 trillion, with telecoms playing a crucial role in this growth. Overall, the integration of AR, 5G, and AI promises to unlock unprecedented possibilities in telecommunications.
Benefits of AR in Marketing
- Enhanced Customer Engagement
AR creates interactive experiences that capture attention and engage customers. Taco Bell’s “Lens Studio” campaign featuring custom AR filters on Snapchat garnered over 220 million impressions, highlighting the viral potential of AR-powered social media integration.
- Personalisation
AR allows for personalised experiences, enabling users to visualise products in their own environments. IKEA’s Place app helps customers see how furniture would look in their homes, boosting purchase confidence and reducing returns.
- Increased Brand Awareness and Loyalty
By creating memorable experiences, AR helps brands stand out and fosters customer loyalty. BMW’s “The Ultimate Chase” AR experience demonstrated the power of gamification in boosting engagement.
- Improved Customer Experience
AR reduces uncertainties in online shopping. Gucci’s Virtual Try-On feature allows customers to see how products look on them, leading to higher confidence and fewer returns. Sephora’s Virtual Artist enhanced the shopping experience by allowing users to try makeup virtually and became a huge success with 25 million virtual try-ons.
Challenges and Solutions
Depending on your target audience, some consumers might be hesitant to adopt AR. Older adults are often excluded from VR/AR development processes, and their specific needs are rarely considered. According to research, key challenges include the digital divide, with older adults using these technologies less frequently than younger generations, and physical and cognitive limitations. At the same time, Virtual Reality (VR) and Augmented Reality (AR) could offer significant potential to enhance the lives of older adults by promoting health, supporting social interaction, aiding in rehabilitation, and facilitating everyday tasks. Strategies to encourage participation include user education and seamless integration into existing platforms.
AR technology is still evolving, and finding the right people and tools to create high-quality AR experiences can be challenging, and as a result, the development might become expensive. The costs are decreasing with technological advancements: tools like Spark AR, Lens Studio, and WebAR equip marketers with the means to create compelling AR experiences that don’t require a lot of technical knowledge.
Spark AR
Spark AR, developed by Meta (formerly Facebook), is a powerful platform that allows creators to build AR experiences for Facebook and Instagram. This tool offers a user-friendly interface where even those with minimal coding experience can create immersive AR effects. Spark AR supports a range of functionalities, from simple filters to complex interactive experiences. With its extensive library of templates, assets, and tutorials, users can quickly develop and deploy AR content. Additionally, Spark AR provides robust analytics, enabling marketers to track engagement metrics and optimise their campaigns effectively. The platform’s integration with Facebook’s vast advertising network ensures broad reach and targeted delivery of AR experiences.
Lens Studio
Snapchat’s Lens Studio is another leading tool in the AR space, designed for creating dynamic AR lenses for the Snapchat app. Lens Studio offers a comprehensive suite of features, including facial and object tracking, hand gestures, and full-body segmentation. These features allow creators to develop highly interactive and engaging AR experiences. Snapchat’s Lens Studio supports both novice and advanced creators with its intuitive design and detailed documentation. Marketers benefit from Snapchat’s large user base and high engagement rates, making Lens Studio an excellent choice for brands looking to leverage AR to connect with younger, tech-savvy audiences. The platform also provides insights and metrics to help brands measure the impact of their AR campaigns.
WebAR
WebAR represents a significant advancement in making AR accessible without the need for app downloads. As the name suggests, WebAR enables AR experiences directly through web browsers, eliminating the friction of app installation and broadening accessibility. This technology uses standard web technologies like JavaScript and WebGL to create and display AR content. WebAR is compatible with most modern smartphones and tablets, making it a versatile tool for marketers. Brands can use WebAR to create engaging AR experiences that users can access through a simple URL, enhancing the ease of distribution and user adoption. With WebAR, brands can integrate AR into their existing web platforms, providing a seamless and immersive experience that enhances user engagement and interaction.
How to Implement AR in Your Marketing Strategy
- Identify Your Goals: Determine your objectives with AR, whether it’s increasing brand awareness, driving sales, or enhancing customer engagement.
- Choose the Right Platform and Tool: Select platforms like mobile apps, social media, or WebAR that align with your target audience and campaign goals.
- Create Compelling Content: Develop engaging AR content that provides value, such as virtual try-ons or interactive storytelling, but is also authentic to your brand image and service profile.
- Test, Iterate and Measure Success: Conduct user testing to finetune AR experiences for ease of use, based on feedback. Track metrics such as engagement rates, interaction time, and conversions to evaluate the effectiveness of AR campaigns.
Conclusion
AR will continue to shape marketing by offering innovative ways to engage consumers and create memorable brand interactions. By embracing the potential of AR, brands can unlock new opportunities for growth and differentiation. The rise of AI and the 5G infrastructure will likely open up even more opportunities in AR and create a new world of immersive and personalised experiences. Brands should explore AR opportunities to stay ahead of the curve and engage their audience by providing immersive, interactive, and personalised experiences.
