AR is a powerful tool that users can't wait to use it: the effectiveness of AR technology adoption
75% of consumers expect retailers to offer augmented reality experiences. These and other statistics show what drives consumers to shop and why they believe that brands using augmented reality are more suited to their personal needs.
The most surprising twist on the augmented reality trend is how many consumers expect AR to be a part of their shopping experience.
Brands adopting AR to provide their customers with more information about a product and allow consumers to see more benefits a product can provide. Consumers are more likely to make a purchase if they can interact with the brand’s products.
According to a Zappar report on the analysis of people using augmented reality, brand awareness can increase by 70% through the use of augmented reality.
Unsurprisingly, brands are implementing AR campaigns like never before. In order to create a sense of loyalty and make a lasting impression on their customers, brands have discovered that augmented reality can do this in an effective, long-term way.
AR ads are better remembered by consumers because of their interactivity and ability to share. In fact, AR ad revenue reached $ 1.58 billion in 2019, largely due to its ability to be a widespread tool.
With the ability of users to share ads, such as the Snapchat and L’Oréal’s augmented reality demos, brands have reached millions of social media viewers.
There are examples of many popular brands using AR in public places to delight viewers and grab their attention. For example, back in 2014, Pepsi installed outward-facing cameras at a bus stop in London and used live feed to project UFOs, giant robots, balloons and a tiger in an empty space inside a shelter. This experience made it look as if these scenes were actually taking place on the street.
The YouTube install video exceeded 6 million views, making it one of the most viewed YouTube ad campaigns at the time.
With numbers like this, it’s no surprise that AR ad revenue has surpassed the $ 1 billion mark. Brands recognize the value of this type of advertising and take advantage of the results of its campaign.
Consumers spoke up, and so did their actions. If shareholding and revenues remain at this level, the AR ad industry could reach $ 8.8 billion in 2023 with a CAGR of 81%.
Conversion rates are the best measure of the percentage of website visitors who reach your desired goal (conversions) out of total visitors.
Higher conversion rates indicate that consumers are happy with a significant portion of the marketing strategy, website, or product the business is offering. While each “high” conversion rate is unique to each industry, twenty to eighty percent is more than ten times the average conversion rate across all industries on the search network.
AR is a powerful tool for marketers
Augmented reality’s ability to create unique, immersive experiences makes it a great tool for marketers. As mentioned, campaigns like L’Oréal’s AR demos had improved conversion rates and continued to work with brands like Poplar to successfully create even more. In addition, brands such as pizza chain Papa Johns have joined the group to increase their conversion rates by 25% with their augmented reality campaigns.
Companies like IKEA, TopShop, and Converse are using AR to let customers “try out” their products before purchasing. These digital trial runs greatly simplify and speed up sampling for buyers, which can lead to increased sales.
The benefits of AR as a conversion tool only grow
Consumer spending on augmented and virtual reality (AR / VR) technology is expected to be around $ 6.36 billion in 2021, while the distribution and services sector is forecast to spend nearly $ 2 billion.
As more and more brands continue to report successful conversion rates, we can expect AR adoption to move from a simple interaction to an active channel in a marketer’s conversion and sales toolbox.
Although augmented reality has been around for several decades, we are only discovering and experiencing its true potential. AR’s ability to connect both the physical and digital world makes it adaptable for many use cases. Numerous modifications to this technology help improve our productivity, quality of life and quality of entertainment.
Companies with the right development capabilities and content ideas should consider how augmented reality can help improve both their business plans and their customer experience.
The adoption of AR technology may have started slowly, but with new developer platforms, it’s impossible to tell how popular the technology might be. AR advertising revenue reached $ 1.58 billion last year, according to research arm ARtillery Intelligence. But … that’s less than 1% of global ad spend.
If you are interested to implement Augmented Reality technology at your industry, please do not hesitate to contact us.