The Future of Advertising: How AR is Changing the Game

With 2023 ushering in new trends in the world of technologies and innovations, we can’t help but think about the impact that Augmented Reality (AR) and Virtual Try-On (VTO) have had on all fields and industries. Among these, Advertising is one field whose prospects are as promising as ever.

Offering an exciting new way for brands to engage with consumers and create immersive, interactive experiences, AR technology has already been adopted by numerous companies, including IKEA, Gucci, and Sephora, to name a few. AR advertising offers a unique benefit to brands by enabling them to craft exclusive and personalized experiences for every user based on their preferences and behaviors. Since consumer behavior, needs and trends are constantly evolving, engaging and captivating audiences, making them fall in love with products and brands, has become increasingly challenging in recent times. Thus, to build a positive user experience, businesses are finding new ways to create innovative advertising solutions in a society that has already been saturated with information and advertisements.  

And so, AR is becoming a mainstream advertising tactic for brands – one that allows consumers to become actively involved in advertising campaigns, all within an engaging and immersive environment. So how does that work?

AR and Advertising

According to Shopify, AR ads outperform traditional display ads, generating 94% higher conversion rates compared to ads without AR/3D components. Indeed, AR provides numerous benefits to both the audience – who can experience, feel, and have fun – and to businesses, which see a very positive return on their augmented reality marketing campaigns.

In fact, around 65% of consumers use AR to have fun, according to a report by Deloitte Digital and Snap Inc. To top it all off, research studies revealed that memory encoding is 70% higher with AR experiences than with regular 2D ads, and brands offering custom AR experiences were 41% more likely to be considered by customers, according to Deloitte Digital and Snap Inc.

AR technology is being used in advertising to create more engaging and interactive campaigns in several ways, some of which include:

•       Virtual try-ons: AR allows customers to virtually try on products such as eyewear, clothes, accessories, and makeup, allowing them to visualize how the products would look on them before making a purchase.
•       Interactive product demos: AR can be used to create interactive product demos, allowing customers to learn more about a product's features and benefits in a fun and engaging way.
•       Google Ads: A search engine that offers 3D objects that we can position in the real world as part of an immersive shopping experience. The addition of three-dimensional images and augmented reality to the search engine's results will allow users to examine objects and simulate how they will look before purchasing them.
•       Gamification: AR can be used to create immersive games and experiences that allow customers to engage with a brand in a fun and interactive way, which can help to build brand loyalty and increase engagement.
•       Location-based experiences: AR can be used to create location-based experiences, allowing customers to interact with a brand's products and services in the real world. For example, a restaurant could use AR to create a virtual menu that customers can interact with using their smartphones.
•       Storytelling: AR can be used to tell engaging stories that capture customers' attention and immerse them in a brand's message. For example, a tourism company could use AR to create an interactive tour of a destination, allowing customers to explore the location in a unique and engaging way.

Who Did it Best?

A significant benefit of AR advertising is its ability to offer users individual and customized experiences based on their preferences and behaviors, setting brands apart from their competitors. This can be done through mobile apps or wearable devices, such as smart glasses or headsets. In addition, AR advertising can help bridge the gap between the online and offline worlds, by allowing users to interact with products and brands in real-world environments. Here are some of our favorite examples:

•       Pepsi Max's "Unbelievable Bus Shelter" Campaign: In this campaign, Pepsi Max created an AR bus shelter that displayed seemingly impossible scenarios to the people waiting for the bus. For example, a giant robot invasion, an alien abduction, and a Bengal tiger on the loose. The campaign aimed to surprise and engage the audience and generate buzz on social media.
•       IKEA’s "Place" App: IKEA’s Place app allows users to virtually place furniture in their home using AR technology. The app uses the camera on a smartphone or tablet to create a 3D model of the room and then allows users to choose from a selection of IKEA furniture to see how it would look in their space. The app makes it easier for customers to make purchasing decisions and has been a hit among IKEA’s audience.
•       L'Oreal's "Makeup Genius" App: L'Oreal's Makeup Genius app uses AR technology to allow users to try on makeup virtually. The app uses the camera on a smartphone or tablet to create a real-time image of the user's face and then applies makeup to it, allowing users to see how different products and colors would look on their skin. The app has been praised for its accuracy and ease of use.
•       Nivea's "Sun Kids" Campaign: Nivea's Sun Kids campaign used AR technology to educate children about the dangers of sun exposure. The campaign featured an AR app that allowed children to see how sunscreen protects their skin from UV rays. Children could point their smartphone or tablet at a printed image of a child's body and see how sunscreen applied to the image would protect it from the sun. The app aimed to make sun protection more engaging and accessible for children.

To Sum Up

AR technology offers a wide range of possibilities for creating more engaging and interactive advertising campaigns, which can help to increase brand awareness, drive engagement, and ultimately boost sales. The future of advertising with augmented reality is bright, as it provides a powerful tool for brands to create engaging and memorable experiences that capture consumers' attention and drive business results.

As AR technology continues to evolve and becomes more accessible, we can expect to see even more innovative and creative uses of AR in advertising and marketing.

‍Are you looking to upgrade your marketing & advertising strategy to a more engaging, interactive, and effective one? Schedule a demo now to learn more about how we can help you.