12 Reasons Why AR Is The Future For Advertising

I’ve never found anyone who hasn’t heard about the Augmented Reality (AR) game Pokémon Go. But, AR is just isn’t about games and entertainment. The scope of AR is huge. The spectacular estimates of AR can be experienced in many industries, from healthcare to healthcare to designing the best educational app.

Now, AR has become common terminology in the field of advertising, and marketers are making educated guesses about the changes that it will bring in the processes of digital advertising.

A recent study by Deloitte shows that at least 88{e68b7490c33b031e176c2bf33b49addad56d24bced82f0be9f22b910d6b7f66c} of mid-market business firms are using AR primarily as part of their marketing strategy.

Today people are more receptive to marketing and promotions than ever before. At the same time, people are exhausted with ads being bombarded on them. This means brands have to be more imaginative and AR is the perfect solution.

13 Reasons AR has become a superpower for brands advertising


1. Massive increase in the global market size

With almost 4.5 billion active social media users, the current world is unquestionably a digital world. And it wouldn’t be wrong to say that there’s so much work to be done by marketers. The advancements in the technology industry have spurred the global spending on digital ads an AR advertisements are no exception.

According to a research report, global spending on digital ads is set to reach $517 billion by 2023. Another forecast report suggests that the worldwide AR market will increase from 3.5 billion to 198 billion from 2017 to 2015. Estimates also suggest that by 2023, spending on AR ads will reach $160 billion (Statista, 2019).

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Since the AR ads have been appreciated by early adopters, they’ll soon become popular.

2. Helps to grab customer attention

There’s no denying that the more appealing your marketing is, the higher is your chances to capture people’s attention.

The way consumers explore, interact with, and buy products has changed a lot with the advent of the World Wide Web. Companies must find innovative techniques to increase brand visibility and trust.

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AR let companies collect plenty of attention in ways that traditional Television, billboard, and print media cannot. You can reach a massive audience within no time.

Because AR is noticeable, it is also viral. Advertisers can involve prospective buyers at a far deeper level more than ever.

3. You can build emotional ties with the audience

Attention when turning to strong emotion nurture the relationship between brands and customers. AR are immersive and full of life which means marketers can ignite a deep emotional connection with customers. As compared to images of banners, AR ads are powerful because the infusion of engaging elements will elicit unforgettable lasting impressions and emotions.

Imagine a thrilling billboard advertising of the new Netflix release. Now imagine, passersby get the chance to watch the movie trailers by just pointing their mobile phone screen at the billboard.

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This is exactly where AR advertisements take the lead. Without a doubt, AR ad will incite more interest because people will feel like they are experiencing the scene with the human eye. This builds an emotional connection with customers, encouraging them to watch the full movie.

4. Allows users to try before they buy

‘Try before you buy’ is an old sales trick applicable to offline purchases only. ‘Free return shipping’ is the conversion mantra for online customers. Not any of them is as strong as product visualization infused with AR.

Believe it or not, putting products in the hands of customers is a trick that can solve real-life problems of customers.

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For instance, deciding between cosmetic products is a daunting task as it involves applying and removing different products and then repeating the process. Sephora’s Virtual Artist app where you can try makeup from bold red lipstick to thousands of eye shades. Apps like these eliminate barriers for consumers and offer them a clear path to purchase.

5. It drives company sales

The reasons behind the adoption of AR will differ from business to business. But as you can see from the following graph, increasing sales volume is increasingly becoming the key motive of businesses.

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Blending digital elements of augmented reality offer multiple routes for marketers to improve sales pipelines through sponsored experiences.

When users are given the option to digitally interact with the product before actual buying, it not only increase sales but also reduces return rates and overall customer churn rate. Here’s how. AR offers a splendid way for customers to uncover important information about the product.

By just viewing an object customers can get information related to product features, its availability and pricing, which enable them to make more informed buying decisions.

6. It is a cheaper means of advertising

In spite of the fact that AR advertisements are incredibly mesmerizing, traditional advertisements are still pretty much popular. However, putting advertisements in the middle-of-the-road and in magazines is somewhat costly. A mainstream magazine charges around $100 for a one-time single print ad.

Considering this, using AR as a tool for digital advertising appears to be a much cheaper alternative. It’s a perfect money-saving solution for modern brands that wish to position themselves in a different manner than rivals. Launching an eye-catching AR campaign can cost around $5000 while sophisticated ads may cost higher.

7. Drive engagement with virtual tours

Augmented tours in e-commerce can be a game-changer for businesses. The leading Sweden based furniture retailer IKEA ranks among the top brands that wholeheartedly adopted AR advertising. Back in 2013, IKEA launched its iOS app that let customers visualize a piece of furniture in their apartment. It makes it insanely easy for customers to make retail purchases in the comfort of their sofa.

Allowing customers to see whether a product of a certain colour would fit in the real home environment or not reduce regrets and returns.

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8. Let you create a buzz around your brand

If not directly, AR ads can also work indirectly for your sales and video marketing strategy by improving the status of your brand. Giving an unexpected reality experience to customers can result in a significant amount of hype for a brand if implemented effectively. Because AR is relatively a new phenomenon, meaning that a well-designed AR experience can generate memorable moments that can pay long-lasting dividends to brands.

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The AR campaign at the bus shelter by Pepsi is a perfect example to explain this concept. The beverage company installed an AR virtual screen in the bus station wall where users observe the sight of UFOs (unidentified flying objects), tigers, and robots.

All of this helped the brand to spark discussion among people waiting for the bus.

9. Give new meaning to storytelling

With the application of AR, advertisement companies and brands can give a new direction to the storytelling experience. The digital elements that lead away from the intangible depiction of stuff on a virtual screen towards a more intuitive and real-life scale.

Besides this, the role of the audience has changed from passive recipients to active participants. Many newspapers and publishing agencies like Washington Post and The New York Times are showing their interest in utilizing AR to add value to its work. The idea behind this is to help satisfy the needs of the audience to get closer to the actual scenes.

10. Enhances hyperlocal advertising

By definition, a hyperlocal ad is an advertisement designed for a specific target audience living in a specific neighbourhood. This is where AR comes into play.

AR ads are embedded with machine learning algorithms which are helpful in predicting consumer behaviour and preferences so that the right products are services will be recommended to them.

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The traditional hyperlocal ads suggest customers about eateries and clothing outlets, but AR hyperlocal ads are highly immersive which means that objects will appear right on the smartphone screen.

Instead of searching maps on Google, people can use hyperlocal AR apps that use GPS data to provide valuable information about the nearby spots.

11. Interactive experience via gamification

In a short span of time, gamification has quickly gained the reputation of an exciting marketing technique used by brands that seek out a competitive advantage. With the application of mainstream game design elements to a practical context, brands can engage consumers better than with old school promotional tactics.

The American based cable channel USA Network in 2015 used the gamification technique for promoting their murder mystery release ‘Dig’. A mobile app ‘Dig Decoder’ was launched that uses AR to bring advertisements to life.

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Through the app, users can look through the app’s viewfinder option over specific areas embedded in the magazines and billboards, resulting in unlocking hidden clues.

For a winning gamification AR experience, USA’s Network’s Dig Decoder added some elements in its campaign. Firstly, it leverages brand value which means that the campaign was consistent with its show’s brand. The cable channel just provides the audience with another outlet to enjoy the show. Secondly, it promotes a brand community which means people with interest in the show can interact and discuss the episode.

12. Design memorable events

Using AR for creating impressive events like new product launching can incredibly increase the success rate of the brand. Clown walks and announcements no more attract the audience or at least it does not offer the engagement level expected by the brands.

Evidence suggests that not more than 10{e68b7490c33b031e176c2bf33b49addad56d24bced82f0be9f22b910d6b7f66c} of the audience attending ordinary events will recall the product after a couple of days.

With AR advertisements, brands can create personalized brand experiences for the audience and get the attention they deserve.

Many students couldn’t attend exciting university events because of their hectic schedule, but smart students seek literature review writing services UK and make sure they do not miss any happening occasion.

13. Going beyond branding

Apart from simple ads, AR is also being used for big installations. With the help of AR, brands are keeping outdoor advertising alive. The onlookers get the immersive experience resulting in conversations. But with great power, comes great responsibility and many brands are cashing in on this opportunity.

Have you ever seen people standing still staring at a billboard?

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Definitely, you can get up close and cuddle a polar bear in the arctic themed room at the Science Museum in London. This is basically a partnership between Coca-Cola and the World Wildlife Fund (WWF) to demonstrate the effects of global warming on arctic wild creatures.

The final verdict

I believe that that the what, why, and how questions related to AR advertisements are answered in this post. It is high time to utilize the superpower of AR advertisements and take your business to a new height of success.