Augmented Reality: Future of Marketing
- MarketsandMarkets predicts that augmented reality will grow to $35.22 billion industry by 2022
- According to Statista, Augmented Reality is expected to progress from $3.5 billion to $198 billion US, projected from the year 2017 to 2025
Augmented Reality has become one of the hottest topics in brand marketing.With so many largest tech business companies including Apple, Google and Facebook adding new AR capabilities to their platforms, it is time to get creative and develop outstanding AR marketing experiences.
AR technology isn’t like the virtual reality. With just your mobile phones, you can immediately drop up the new augmented reality experiences that comes in our day to day life. It’s never been easier to reach a large audience through this technology. So how can augmented reality be used in order to prompt your brand?
For now, augmented reality is still largely an innovation as it alone contributes to its ability to surpass print, online, and television advertisements in terms of shock factor. According to The Drum reports, AR can grab people’s attention for over 85 seconds, increase interaction rates by 20 % and improve click through rates to purchase by 33%.
Reasons why augmented reality is the future of marketing
AR is the most powerful tool of visualization that delivers ideas through images in the most interactive, efficient and engaging way. In 2018, Global AR ad revenue reached $428 million and is expected to triple by 2021.
Here are the four main reasons why AR works so well for marketing purposes.
1.Innovation and interest
People want to be entertained and learn new and exciting things. To attract the attention of the customer, marketers are always looking for better ways. So, augmented reality meets these requirements perfectly. The technology is relatively new and stands out among posters, commercials and also social media ads. Augmented reality makes people wonder how it works and speak about it. It is a great tool that makes advertising campaigns go viral and spread through word of mouth. Who wouldn’t like to experience something that everybody is talking about?
Beside this, using AR in marketing campaigns also adds plus point to your brand image. A company that applies innovative solutions is seen itself as innovative one. AR solutions differentiate your company from competitors by creating a positive emotional response and making it memorable for the users.
Augmented reality advertisements are not limited to any scripts, rules or frames, so customers can always expect something new when they open an AR app on their phone. For business, such a range of options also means a range of prices. For a smaller budget, one can try AR platforms where they pay for a subscription and create their own AR experience. You can use these app creator platforms knowing nothing about coding and make simple experiences with a couple of clicks.
Custom-created applications go through a whole production cycle from design to testing and support can be pricey, but the final result is worth it. The business gets a unique branded application to promote its services.
Interactivity is an important part of AR technology. The digital image combines together with the real world as per the command of the user. They see how their usual environment is enhanced with virtual elements. It can be a 3D model of a hotel where they can walk around or virtually place furniture in a house.
Next way to engage the customer is through the use of geo-location. By using information from a phone, an AR app can show consumers where to look for another entertaining experience. Also, location-based applications can serve as a local expert, a map or even a gaming location guide.
4. Better customer experience
Almost 65% of users find ads annoying mainly because advertisements disturb their activity which leads to the negative perception of the ad piece itself and also brand that is being promoted. The customer will feel valued and will react positively to the brand reference, especially if the ad is personalized according to their needs and interests.
Personalized ads is not a new topic in marketing, but custom AR ads can take it to the next height. Interactive AR aps can allow users to download their own media and create their custom content. For these reasons, AR solutions can make marketing more relevant, ultimately leading to improvement of customer experience and adding new value to customer or brand relationships.
Augmented Reality Examples
As for now, people will look at AR-inspired experiences, regardless of the campaign’s overall quality. But there are more businesses that has incorporated AR into their marketing strategies, and as AR technology becomes more universal, more thoughtful campaigns needs to be conducted to impress the audience. Here are some of the augmented reality examples of business.
1. Home Depot
Decorating a home isn’t not an easy task.How will you know if you’ll actually like the blue paint that looks beautiful online, but might be too pale in your bathroom? What if that Cupboard doesn’t fit in your living room like you’d thought it would?
Home Depot released their Project called Color app in 2015 that uses patent technology to show users what a paint color will look like in their home. The AR technology considers lighting, objects, colors and shadows in the room, so you can see how that blue shade will look in real life. If you have doubt on your own judgment then you can also share images from the app on social media and consult your friends.
Home Depot took a step further in 2017 .Now their app can be used to check out how objects like patio furniture and other products look in your home.Home Depot isn’t the only home furniture store that uses AR to create value for their users . Companies like Lowe’s and Ikea also have similar AR technology.
Considering the convenience and comfortability of the customers, in 2014, Timberland created a virtual fitting room in Moktow Gallery. Using Kinect motion sensing technology, Timberland’s virtual fitting room allowed shoppers to see an image of their face, and a similarly sized model body, in different outfits they chooses to prefer.
If you want to use AR, you’ll have to brainstorm unique ways to help your customers avoid an otherwise burdensome process. While fitting rooms might not be the end of the world, Timberland stands out as an outstanding brand by offering customers a fun and useful alternative.
There are reasons why many women don’t prefer buying makeup products online as you won’t know if you’ll like the lip color or foundation coverage if you don’t try it on visiting the store itself.
Sephora considered this problem and created an augmented reality experience called Virtual Artist App, with the use of ModiFace to ensure Sephora app users can see how makeup products will look on their face through their phone’s camera. Users can also find out which products they’ll need to apply.
According to Bridget Dolan, Sephora’s head of innovation, “When it comes to augmented and virtual reality, it can only be succeed if it’s truly useful for the users” .A lot of things like technical accuracy and timing had to come together, and there was a time last year when, during testing, we hit a tipping point.”
Sephora’s use of augmented reality is not just helpful for users but it also drives sales by appealing to Sephora’s consumers, and encouraging them to become brand ambassadors by recording and sharing their augmented reality experiences online.
Pepsi installed AR technology in 2014 in a London bus shelter, making it look like a lion, UFOs, flying saucers, and other objects.
The production determined Pepsi’s playful personality and provided the customers with an exceptional experience. Later on, a video of the bus shelter’s AR technology attracted over six million views on YouTube making it one of YouTube’s most viewed advertising campaigns
Pepsi’s campaign highlights the effectiveness of AR when a business truly knows their customers. Pepsi was in no need to use AR to advertise their products instead, they trusted their consumers to appreciate their experience and naturally share the story with friends, as a result creating buzz around their brand.