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What is Augmented Reality? How Is AR Being Deployed for Brands?

From a marketer’s point of view, I actually believe augmented reality (AR) has much more potential than virtual reality (VR). While virtual reality will allow us to experience a totally artificial experience, augmented reality will enhance and interact with the world we currently live in. We’ve shared before how AR may impact marketing, but I don’t believe we’ve fully explained augmented reality and provided examples.

Key to the potential of marketing is the advancement of smartphone technology. With bandwidth plentiful, computing speed that rivaled desktops just a few years ago, and plenty of memory – smartphone devices are opening the doors for augmented reality adoption and development. In fact, by the end of 2017, 30% of smartphone users used an AR app… over 60 million users in the US alone

What is Augmented Reality?

Augmented reality is a digital technology that overlays text, images or video over physical objects. At its core, AR provides all types of information such as location, heading, visual, audio and acceleration data, and opens an avenue for real-time feedback. AR provides a way to bridge the gap between the physical and digital experience, empowering brands to better engage with their customers and drive real business results in the process.

How is AR Being Deployed for Sales and Marketing?

According to a recent report by Elmwood, simulation technologies like VR and AR are set to offer immediate value mainly for retail and consumer brands in two key areas. Firstly, they will add value where they enhance the customer’s experience of the product itself. For example, by making complex product information and other important content more engaging through gamification, providing step-by-step coaching, or giving behavioral nudges, such as in the case of medication adherence.

The overall AR market is projected to grow significantly, with some sources estimating it to reach $198 billion by 2025. This growth will likely lead to increased adoption among Fortune 500 companies, as they seek to capitalize on new and innovative marketing techniques.

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Secondly, these technologies will take off where they can help brands inform and transform the way people perceive the brand by producing rich, interactive experiences and compelling narratives prior to purchase. This could include making packaging a new channel for engagement, bridging the gap between online and physical shopping, and bringing traditional advertising to life with powerful brand stories.

Augmented Reality for Marketing

Examples of Augmented Reality Implementations for Sales and Marketing

One leader is IKEA. IKEA has a shopping app that allows you to easily navigate their story and find the products you identified while browsing at home. With IKEA Place for iOS or Android, their app allows users virtually place IKEA products in their space.

Amazon has followed the example with AR view for iOS.

Pepsi Max launched an AR campaign called Unbelievable in 2014, which turned a bus stop in London into an interactive AR experience. The campaign showcased various scenarios, such as a meteor strike, a giant robot, and a tiger walking down the street, surprising the passers-by. This innovative campaign received millions of views on social media and generated significant buzz for Pepsi Max.

L’Oreal’s Style My Hair app uses AR technology to allow users to try on different hairstyles and hair colors before committing to a change. The app has increased user engagement and led to more informed purchasing decisions.

Another example on the market is Yelp’s feature in their mobile app called Monocle. If you download the app and open the more menu, you’ll find an option called Monocle. Open Monocle and Yelp will utilize your geographic location, your phone’s positioning, and your camera to overlay their data visually through the camera view. It’s actually pretty cool – I’m surprised they don’t talk about it very often.

AMC Theatres offers a mobile application that allows you to point at a poster and watch a movie preview.

Companies can implement their own augmented reality applications using ARKit for Apple, ARCore for Google, or Hololens for Microsoft. Retail companies can also take advantage of Augment’s SDK.

Augmented Reality: Past, Present, and Future

Here’s a great overview in an infographic, What is Augmented Reality, designed by Vexels.

What is Augmented Reality?

Douglas Karr

Douglas Karr is CMO of OpenINSIGHTS and the founder of the Martech Zone. Douglas has helped dozens of successful MarTech startups, has assisted in the due diligence of over $5 bil in Martech acquisitions and investments, and continues to assist companies in implementing and automating their sales and marketing strategies. Douglas is an internationally recognized digital transformation and MarTech expert and speaker. Douglas is also a published author of a Dummie's guide and a business leadership book.

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