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How powerful is Augmented Reality in Advertising and Marketing

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  • Keyur Bhalavat
  • April 30, 2019
  • 10 min to read
How powerful is Augmented Reality in Advertising and Marketing

‘Marketing’ – probably the most important word for any manufacturer or service provider nowadays. Marketing strategies have come a long way since industrial revolution. Advertising and marketing are those two sections of a product chain that anyone can’t ignore.

From print media to radio to television to social media, advertising and marketing are constantly evolving their forms. But core interest remains the same that how to make an advertise effective and customer oriented. Making the marketing formulas interactive and connecting for the customers is the main job of strategists today. And therefore, to renovate the ideas of marketing and advertising a new tool named ‘Augmented Reality’ was introduced in this sector.

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What is Augmented Reality in Marketing?

Augmented reality combines two forms of marketing namely print and digital marketing. Augmented Reality (AR) in marketing takes the reins from Virtual Reality platforms to create a new, interactive consumer experience. As little as five years ago, consumers knew little or nothing about this marketing tool. But AR has become a marketing strategy that businesses need to become educated on.

Augmented reality creates a 3-D model of the product and let the customer to experience it up close and personal.

Augmented Reality in Advertising

People are having a general prejudice that augmented reality is just for gaming and entertainment industry. But the realm of AR is much beyond than that. Augmented reality based advertising is more than just a photo of the product. Advertising through customer’s mobile device is becoming popular. For instance, if you are in a super market and buying Heinz tomato catch-up bottle and you are keen to know which recipes you can make with it, then you have to just open up your phone’s camera and scan the sticker on the bottle. And a virtual book of the recipes will appear on your camera screen which you can read by flipping the pages virtually. How adorable it is!

Augmented Reality in Business Opportunities

When we think of augmented reality marketing, we should have an adequate knowledge about its utilisations and opportunities in various business sectors. Let’s discuss the opportunities of AR in couple of basic sectors.

  • Real Estate Sector : Almost every real estate agency struggles when it comes to visualization of their catalogue. As photo ads are good but not up to the mark. With only photographs, you cannot make the customers to visualize your whole idea for setting up a society or township. AR advertising plays an important role here.
    Augmented reality tools and AR mobile apps in particular help tackle those issues nicely. With a single touch of the button, clients are able to all-angle AR models of any apartment of their interest. Without leaving the office or home, they may browse, compare and analyze flats/houses/offices in great detail. Moreover, they can also interact with it experiencing an ‘almost- present’ feeling.
    • Manufacturing Sector: Manufactured product always have to face a quality issues. Customer nowadays is well aware of how he/she could be betrayed with lower quality products. A genuine manufacturer can use AR for marketing his/her product by showing customers the various phases of manufacturing of the particular product with the help of graphics and 3D visualization. This will gain the trust of the customer and will boost the sale as well.

  • Entertainment Sector: VR in entertainment sector is now seems to be outdated. AR can give a fresh touch to this sector. Success of pokemon go, snapchat, etc. are the robust examples of it. Still there is a big playing field available for experimenting augmented reality in entertainment sector. Suppose, a company can advertise it’s newly developed game to the customers in a 3D multiplex as if the customers feel their selves to be a part of the graphics of the game. This strategy can also be applied for advertising freshly prepared android/IOS mobile apps as well.
Augmented Reality in Promotional Products

Promotional product is the field for which augmented reality is like a boon. Choosing VIDEO or a 3D LOGO to engage your clients in either a short video or transform your logo/design into a 3D model with new interactive Indigo Augmented Reality. This will make the promotion interactive as well as effective at the same time. By scanning a QR code printed on one product, you can make the customer aware of your range of products virtually. It creates the chain of marketing and advertising. This idea is hitting the peak nowadays.

Some innovative ideas for using AR in marketing and advertising
  1. Augmented reality can be efficiently used in interior designing of the house. When you have house that has just completed and now, you want to decorate it with wonderful interiors. For this, you have to really apply all ideas practically and choose best one of them. But with conventional technologies, it is too difficult to imagine. However, AR can help you in taking this hectic decision. You can actually apply various interior designs with the help of a mobile and can see exactly that how will it look like one by one. And ultimately it will help you for best selection.
  2. Malls and shopping centres are becoming popular. We can use augmented reality there is well. Such as, with the help of augmented reality, we can create a 3D image of the famous movie characters/superheroes/animals which may go along with the customers guiding them about recent offers and also giving them directions for any shop in the mall. This will create a curiosity in the minds of customers and hence will increase the turnover of a mall by attracting customers.
  3. We can make the labels of every product live by using augmented reality. By scanning of which, a customer will get to know about manufacturer’s other product ranges. This will be called as smart marketing without spending lots of money!
  4. You can build augmented reality functionality into:
    • Websites – web AR
    • Banner ads – known as ARDP (Augmented Reality Digital Placements).
    • Facebook Messenger bots – that support augmented reality features.
    • Social networks – such as Snapchat and Instagram.
    • Cars – Jaguar and BMW are experimenting with smart windshields to offer AR content.
    • Bus stops have been used as an augmented reality delivery mechanism.
  5. On the display network, ads are generally shown in a two-dimensional interface. Whereas AR opens up a wide new range of possibilities in the third dimension. Where viewers could once only see ads directly ahead of them, they will now be able to see display ads in their peripheral vision. AR also allows for more detailed ads. This is due to the higher pixel/display size ratio seen in AR versus 2-D monitors.

Knowing all this about AR’s uses in marketing and advertising, we will now have a look on some statistics based on surveys by different organizations and will figure out possibilities of AR as a tool for marketing and advertising in upcoming era.

Augmented Reality in Marketing in 2020

According to a firm called ARtillry’s report , augmented reality was having 428.3 million USD revenue in 2018 in marketing sector alone. Which is expected to rise up to 779.4 million USD and 1208 million USD in 2019 and 2020 respectively.

Augmented Reality in Advertising in 2020

If we analyse the report of M/s business wire, we can come to know that augmented reality will touch the height of approx. 31.87 Billion USD in 2019-20. The sectoral expenditure for AR based advertising is expected as follows:

Retail Industries : 36.23%

Entertainment Industry : 42.25%

Other industry : 21.52%

Examples for Augmented Reality in Marketing

Various famous companies/brands are using augmented reality for advertising and marketing of their products. Some giant examples are as follows:

  • Starbucks: The famous network decided to attract visitors through augmented reality advertising. When you move the smart-phone’s camera to a normal glass, miracles begin to happen: you can see a skater under the falling snow, a squirrel, a fox, a boy, and much more. Of course, after experiencing this, the visitor will want to recommend this institution to friends. And for this, there is already a function to share the achievement with friends in a special application. Such a simple and funny game acquires a completely different, strategic view, in which it can bring a serious profit to the company.
  • Pepsi: In early 2014, Pepsi installed AR technology in a London bus-stop, making it appear like a lion, UFOs and other objects. After this experiment, videos of such bus-stops gone viral on you tube. Hence, Pepsi’s AR advertising experiment was successful.
  • Lynx: The opportunity of participating in the well-known advertising company has fallen to travellers in London’s Victoria station. Not every day you can meet the real angel! The visitors of the station had the opportunity to see the angel next to them on the screen when they were in a specially allocated circle. This entertainment became so popular with people that soon they began to come in large quantities just to see the new miracle of augmented reality ads.
  • Disney: At Times Square passers-by had the opportunity to meet face to face with the villains from the cartoons. When a person is in a marked circle, some fantastic hero appears near them. You can see this on a special screen that captures the one standing in the circle. Heroes do not stand motionless: they move, try to interact with a person. This entertainment found admirers both among children and adults.
  • Hyundai: The unforgettable 3D show with a projection on the building amaze the people. At the presentation of the new car, they suspended an actual car on the face of the building and had a driver walk down the wall to drive it. Insanely complex and most fascinating production made the whole world discuss the new car. This shows the success of an AR aided advertisement.
  • St. Pete’s & Clearwater: Tourist firms are also using AR for free and presented a tour to their customers – a trip to their beaches. Users can see both the beach itself, and the consultant sharing the company’s advantages. Also, there are some items, clicking on which you can find interesting information about the area. This way of a tour presentation is much more lively and interesting. It’s the example of why it is always easier to see with your own eyes than to read a thousand words. In addition, visualization has a beneficial effect on sales.
AR based Marketing in a nut-shell

Augmented reality has a future, and it is undoubtedly associated with advertising and marketing. There is no point in denying that such advertising makes an impression on people. Therefore, it is worth looking at this industry more closely. And if you are frightened by the considerable costs of this kind of development, the tools for the rapid creation of such advertising with inexpensive means will soon appear. Stay in trend and do not hesitate to join the best while the technology is not too widespread and still has a wow-effect on consumers.

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