How Augmented Reality Is Impacting the Advertising Industry

Every brand demands customer’s attention! Thus, advertisements came into the picture. Customers are bombarded with various ads in various forms in this digital era to generate eyeballs. In the last decade, this industry has witnessed a tremendous shift. Advertisements have largely migrated from television screen to mobile screen in order to change the flow of message from being massy to more personal and interactive for the audience.

Artificial Intelligence has positively taken hold on the advertisement business, presenting innovative marketing solutions to brands. With the help of Artificial Intelligence brands are constantly processing data every minute to advertise the right product to their customer.

AR creates a detailed 3-D image of the product and presents an up-close personal experience for the consumer. AR/VR advertising is focused on understanding the need of the customer, it allows businesses to create an emotional connection with the brand and offers innovative business solutions.

What is AR advertising?

Augmented reality is a fast-growing trend in the marketing industry. With merely the help of a smartphone device, it takes the customer on a unique immersive journey using 3D overlay where they can assess the product in great detail from the comfort of their home. With AR, brands can elevate customer experience and engagement which leads to increased business opportunities and sales. Various Augmented reality advertising companies like Wowexp are dedicated to creating a seamless blend of real and virtual worlds for brands and businesses alike.

Some of the most commonly used AR features in advertising include-

  • Projection-based augmented reality:

    With projection-based augmented reality, digital images are displayed in physical space. It offers a 3-D imposition of the image and allows us to see the image in depth.

  • Superimposition-based AR:

    This allows us to superimpose an image over another image. For example: grooming a 3D avatar, placing glasses on your image, placing furniture in your room, etc.

  • Recognition based AR:

    With this, we can scan an image with our smartphone and it will come alive. Many print advertisements have QR coded images that comes alive when you see them on your mobile screen.

Five reasons why brands should use Augmented Reality in advertisements:

1. Captivate the customer in the most unique way possible!
Technology demands human attention; brands are coming up with an innovative solution to capture their customer’s attention. According to a report published by The Drum reports, Augmented Reality tools can capture attention for over 85 seconds, increase interaction by 20%, and improve click-through rates to purchase by 33%.

Advertisers use various methods to generate curiosity within the audience and since AR VR advertising is interactive and it is continually opening up dimensions for advertisers to reach out to consumers in a unique way; Like Snapchat introducing AR filters in its platform. AR VR advertising uses sensory perception, it immediately piques our curiosity to see what’s happening in front of us, it gives the product a personal feel when consumers can picture it in 3 dimensions and in a real location. Thus, a brand/ advertiser can benefit greatly from this.

2. Experience the product before investment
One of the imperatives of AR-based ads is they establish an emotional connection amongst customers and the brand. Augmented reality advertisements are realistic, fun, game-like, and customers genuinely feel the urge to engage with them. Like cosmetic company, Sephora uses an AR tool ModiFace that let customers try on different makeup before making the purchase.

Popular furniture retailer IKEA, in its campaign, ‘Say Hej to IKEA,' show that by simply scanning a print catalogue with a smartphone, customer can see furniture in real-time on their smart device. There is a wide range of selection that they can choose from, place it in their location of choice, and basically assess the item in its entirety before purchasing without ever leaving the comfort of their home.

These AR features help foster an emotional connection with the product itself, giving a sense of ownership, it promotes brand awareness, helps customers decide to purchase, and boost the revenue of the brand.

3. Build a platform for a niche audience
These days advertisements are more targeted to niche audiences, courtesy of constant data collection by social giants. Brands are very much invested in understanding the habits of customer that makes them unique, like what kind of show they like, the kind of music they listen to, the food they consume. It helps brands understand the psyche of the customer.

Augmented Reality tools can aid brands to create targeted AR advertisements for their customer. It will help brands build a niche group of customers where the customers can try things exclusively; for example: trying a shade of lipstick via AR, have a personalized AR/VR fashion show based on a customer’s favourite character from a show, drive an exclusive vehicle, etc.

Volvo is one such example that lets consumers experience a ride in a 360-degree landscape. Customers can download the app on their smartphone and enjoy a ride. With an exclusive experience such as this, brands like Volvo are able to foster a close relationship with their client.

A memorable experience for the customer

With AR and VR tools advertisements are stepping out of the 2-D interface. Customers can now visualise ads in 3D, it allows brands to showcase their product better in the market. An AR/VR advertisement is most likely to leave a lasting expression on the customer, making the campaign memorable and successful. Pokémon GO! is a perfect testament to that. Also, customers are more likely to share a memorable experience on social media, which will also help the brand to gain more visibility online.

Increase in sales and revenue

The ultimate goal of any advertisement campaign is Return of Investment. As the data collected by The Drum reports suggest, that AR engagement improves click-through rates to actual purchase by 33% increasing the revenue of the company. So, in a way, it is a necessary marketing technique companies should invest in. In many ways, AR brings the magic of offline to our ever-expanding online universe.

Few Takeaways

  • Augmented reality is quickly becoming one of the primary reasons for boosted sales in companies. Companies like Apple, Facebook, Snapchat are already using AR/VR techniques to advertise.
  • Advertisement is necessary for brands to thrive and engage with their customer. With AR as a form of advertisement, brands are likely to generate the interest of customers like never before. AR/VR advertisements allow customers to observe and engage with the product in great detail. Like Sephora’s ModiFace allows the customer to apply any makeup from their store, IKEA allows an up and personal immersive engagement with furniture. It allows customers to make an informed decision before purchasing.
  • AR and VR based campaigns are an innovative strategy to market exclusive goods to a niche audience. There is an added advantage of entertainment factor in AR/VR advertisements which makes it engaging and another form of advertisements. It holds the attention of the customer and increases the chances of buying.

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