Three Ways Augmented Reality Is Changing Marketing

Augmented reality (AR) is increasing brand awareness, customer engagement, and perceived value.

While VR has been eclipsed among mainstream audiences, the value of AR in marketing is undeniably significant. Leading businesses are already incorporating AR as part of their digital strategies to engage their customers and provide them with a positive experience.

The mainstream hype surrounding virtual reality (VR) has somewhat suppressed the popularity of augmented reality (AR). AR in marketing allows businesses to enhance the customer experience by overlaying visual information on regular objects. This provides customers with an enhanced version of reality that is more engaging and informative.

1. Increase brand awareness

Having an entertaining AR app that creates a memorable experience for users helps create buzz for brands. AR marketing ensures better online engagement, more shares and likes from customers, leading to more exposure and increased brand recognition. Creating AR-based campaigns that are not only entertaining but also provide value to customers, increases that all-important awareness and attracts media coverage. Pepsi’s augmented reality ad at a London bus stop was an early example of how established brands can use the technology to stay competitive. The effectiveness of AR as a marketing tool was proven long ago when fashion retailer Moosejaw launched an AR app powered by X-rays for viewing its print catalog. The app was downloaded over 250,000 times and saw a 37% increase in sales.

2. Improve customer engagement

Although online shopping has grown rapidly in recent years, offline, in-store shopping is still considered a more reliable way to shop. This is especially true when people want to make long-term investments, such as buying furniture or renovations. Leading brands such as IKEA have used AR technology to allow customers to see whether the company's products are suitable for their homes. IKEA Place is IKEA's AR application that uses the customer's smartphone camera to show how the selected furniture will fit into the customer's home. Not only does the app make it easier for customers to determine the right furniture for their home, it also provides a fun way to experiment. Other global brands such as Coca-Cola and Nippon Paints have also used AR marketing strategies to increase social interaction and engagement.

3. Improve perceived value

Using AR to provide customers with interesting experiences and services enables brands to showcase themselves as innovative leaders in their industry. It also leads customers to value a brand’s products more than their peers. In a recent study, 40% of respondents were willing to pay more for a product that could be experienced through augmented reality. This shows a direct cause-and-effect relationship between the use of AR and perceived value. The same study also reported that 61% of shoppers prefer to shop in stores that offer AR. Brands are increasingly recognizing the value of AR in driving perceptions and are developing ways to integrate AR into their marketing and customer service channels.

It can be said that 2023 is the first year of AR, and the application of this technology will only increase in the future. This should be a wake-up call for those companies that have not yet considered using this technology in their marketing activities.