Augmented reality (AR) advertising is on the rise, with projections indicating that by the end of 2024, the number of global active AR users will hit 1.73 billion. As consumer behavior increasingly shifts online, the popularity of AR advertising is rapidly gaining momentum.
In their annual consumer trend report, Zenith UK emphasized the significant growth potential for augmented reality advertising in 2021. They forecasted that global ad spending on AR would continue to expand, with an annual growth rate exceeding 30% until 2023.
With augmented reality no longer considered an emerging technology, Zenith found that 72% of UK adults now view AR as “fun and engaging.” They encouraged brands to incorporate augmented reality into their marketing strategies to align with evolving consumer trends. Not long ago, AR advertising was seen as a novelty, but it has since become a powerful tool, offering unique experiences, streamlining processes, and strengthening customer relationships.
Despite its growing appeal, augmented reality advertising still requires careful planning and alignment with brand identity. Like any marketing initiative, AR must deliver value to both the business and its target audience, ensuring it complements the overall brand strategy and supports business growth.
Considering this rapid growth and the potential impact of augmented reality, let’s delve deeper into AR advertising and explore how its expansion will influence markets worldwide. Whether you’re a brand seeking an edge in marketing or a provider offering augmented reality white label, understanding the dynamics of AR advertising is crucial for future success.
Table of Content:
What is AR advertising?
Augmented reality (AR) advertising is a digital marketing strategy that employs AR technology to create interactive and immersive experiences for consumers. This technology overlays digital contentβsuch as images, animations, text, or soundβonto the real world, usually through a device like a smartphone or a tablet, resulting in a blended reality. In AR advertising, businesses use this technology to showcase their products or services in more engaging and memorable ways. For example, a fashion retailer might develop an AR experience that allows customers to virtually try on clothing before purchasing.
AR advertising can be delivered through various platforms, including mobile apps, Augmented Reality AR filters on social media, and AR-enabled digital billboards, enabling businesses to reach a broader audience. This technology empowers businesses to create compelling experiences that leave a lasting impression on customers.
In AR advertising, users interact with augmented content through their devices or wearable technology, such as smart glasses. By integrating AR technology into their advertising campaigns, businesses can offer unique, interactive experiences that capture the attention of their target market.
Some common types of AR advertising include:
Virtual try-ons
Virtual try-ons are a prominent application of augmented reality (AR) advertising in the retail and eCommerce industries. This technology allows customers to visualize products like clothing, accessories, or makeup through virtual fitting rooms or try-on experiences. By using Augmented Reality AR Filters, retailers can give customers a realistic preview of how products will look on them, enhancing engagement and satisfaction. Major players like Snapchat have collaborated with brands such as Farfetch and Prada to offer these experiences, allowing users to try on products virtually by standing in front of their cameras.
Product demonstrations
Product demonstrations are another key form of augmented reality advertising. This technique uses AR to display product features, functions, or unique effects in an interactive way. By utilizing Augmented Reality AR Filters, users can engage with virtual models or animations to understand a product’s benefits from anywhere at any time. This approach is especially valuable for showcasing complex or large-scale products in a compact and accessible manner.
Gamified experiences
Gamified experiences are a fun and interactive method of using augmented reality in advertising. Brands create AR games that incorporate their products or services, offering users an engaging experience. These experiences often use Augmented Reality AR Filters to overlay digital content on real-world environments, turning ordinary spaces into virtual playgrounds. A notable example is when Walmart partnered with “Stranger Things” to transform its shopping aisles into scenes from the show’s “Upside Down,” allowing users to play a unique AR game while shopping.
Interactive print ads
Interactive print ads also utilize augmented reality technology to transform traditional advertisements into immersive experiences. By scanning a print ad with a mobile device, users can access additional digital content like animations, videos, or interactive elements. This integration of AR technology and traditional print media creates a more engaging experience for consumers, allowing them to explore a brand’s story or product details in a new and exciting way.
Benefits of Augmented Reality Advertising
Augmented reality (AR) advertising provides a memorable and interactive experience for consumers. According to a report by Zenith, user experiences with AR are 70% more memorable compared to those without it. The interactive nature of AR advertising allows consumers to actively engage with a brand, making the experience more impactful.
These memorable interactions foster brand awareness and can lead to viral sharing through word-of-mouth or social media. A notable example is Pepsi’s AR campaign from nearly a decade ago, which went viral for its unique and engaging approach. Augmented Reality Filters can transform ordinary advertisements into shareable moments that capture attention.
A UK-based study by research company Neuro-Insight explored the neurological effects of augmented reality on consumers. Using brain imaging technology, the study revealed that AR experiences generated nearly double the engagement compared to non-AR experiences. Additionally, AR was shown to produce significantly higher attention levels. Heather Andrew, CEO of Neuro-Insight UK, noted that AR delivers attention levels 45% higher than those typically seen with TV viewing or general online browsing.
These findings are supported by eCommerce platform Shopify, which reported a 94% increase in conversion rates for products featuring AR or 3D content. This immersive experience allows brands to form stronger connections with consumers, resulting in increased brand loyalty and improved sales.
Augmented reality advertising and marketing campaigns not only connect with audiences better but also encourage deeper interaction. The immersive nature of AR makes advertising campaigns more engaging and compelling, contributing to current Augmented Reality Trends in marketing. As AR technology continues to evolve, brands that leverage Augmented Reality Filters and innovative AR campaigns can expect to capture and retain consumer attention effectively.
Challenges in Augmented Reality Advertising
As augmented reality (AR) technology evolves, certain barriers are overcome, but new challenges emerge. Historically, AR was viewed as a novelty, providing a fun and engaging way to attract users. However, with technological advancements, AR has found a true purpose in marketing, creating immersive experiences that drive consumer engagement.
Despite these Augmented Reality Benefits, AR adoption remains limited among the broader population. Accessibility has improved with web-based AR and more powerful devices, yet widespread use is still a hurdle. Some brands are leveraging these advancements to their advantage, like the band Gorillaz, who used augmented reality to promote their new album. They hosted live AR concerts in London and New York, transforming public spaces into interactive experiences and drawing large crowds.
Cost and technology are perceived as significant barriers to AR adoption in advertising. A 2019 Unity study of 1,000 participants in advertising and marketing fields indicated that 24.6% identified technology and 39.1% cited cost as the primary obstacles to mainstream augmented reality advertising. However, this perception might be shifting due to the rapid changes in the digital landscape.
Traditional advertising methods faced challenges in 2020, with WARC reporting that it was “the worst year on record for traditional advertising media.” The Covid-19 pandemic accelerated the shift to digital platforms, leading brands to explore new ways to connect with audiences. As technology improves and costs decrease, augmented reality can become a more cost-effective marketing tool, making AR advertising more accessible to a broader range of businesses.
By addressing these technical challenges and providing the right support, brands can create successful AR advertising campaigns. Augmented Reality Benefits include engaging and memorable marketing experiences that can help brands stand out in an increasingly digital world.
Conclusion
Augmented reality (AR) advertising is rapidly growing, with projections showing that global active AR users will reach 1.73 billion by the end of 2024. The evolving trends in augmented reality demonstrate its increasing relevance in marketing, as AR enables businesses to create interactive and memorable experiences for consumers. Zenith UK’s research highlights that augmented reality advertising can be up to 70% more memorable than traditional methods, suggesting a substantial opportunity for brands to engage their audience more effectively. Despite these Augmented Reality Benefits, there are still challenges in AR adoption, such as cost and technology constraints. To successfully implement AR advertising, businesses need to plan carefully and ensure alignment with their brand identity. By doing so, they can leverage the potential of augmented reality to create unique, interactive, and compelling marketing experiences.
Contact Us If you’re interested in exploring the benefits of augmented reality advertising or seeking guidance on launching your AR campaign, we’re here to help.