Fostering the Adoption of Augmented Reality and Virtual Reality into Marketing

It seems as if it wasn’t too long ago when Pokemon GO hit the scene and set the internet ablaze. Although the hype around the game didn’t last long, its developer Niantic which has in the past produced other games using AR, was certainly on the cusp of a breakthrough moment. While the use cases for AR and VR in marketing might not be evident at first, its impact in the near future is set to be paradigm shifting.

A study conducted by Greenlight Insights points out that 62% of consumers experience a greater level of engagement with a brand that provides a VR experience. The study also reveals that 71% of consumers find brands utilising VR in their marketing mix to be forward thinking. Keeping in mind that the experience a customer receives provides more value to them than the product itself, the findings of this study provide a clear indication of the way ahead.

While being of great use to business and corporations alike, AR and VR have also become ubiquitous in the mainstream. Thanks to a host of devices such as the Oculus Rift and PSVR, virtual reality headsets aren’t just a futuristic concept found in science fiction novels and movies but a technology that is literally going to change the way we look at the world.

Virtual Reality

Virtual Reality (VR) is a computer-generated simulation of an environment which convinces the brain into believing that it is experiencing reality. In order to accomplish this, VR requires the use of a dedicated device such as the Microsoft Hololens or Oculus Rift. Pretty much any activity that can be done in real life, can be simulated in virtual reality. This fact alone lends VR to be used for a variety of purposes such as experiential events, training, and the promotion of tourism amongst others.  

Augmented Reality

Augmented Reality (AR) layers computer-generated simulation atop existing reality for people to interact with. To experience AR, one simply needs to download an app on their smartphone which helps AR be a lot more accessible as a technology when compared to VR. Applications such as Snapchat played a major role in exposing the wonders of AR to the masses through the use of filters that could be applied on top of people’s faces. This provided advertisers the ability to create their own AR filters which could be used to promote a brand.

AR and VR in Marketing

Companies such as Sephora and IKEA have already started to make the most of AR by treating it less like a gimmick and instead providing customers actual value. In the case of Sephora, it created a makeup app that allows a user to see exactly how a particular lipstick shade would look on their face without actually applying it. A user’s face is scanned through their phone’s camera and when they have found a shade that they like, they need only tap once in order to confirm their purchase. The app also provides something that can’t be done in-store, it allows users to view the result of months of skincare on their face. IKEA, on the other hand, created an app that integrated with AR that allows users to essentially try before they buy a good. It accomplishes this by taking a picture of a user’s room and placing any piece of furniture selected by the user into the frame of a room. This provides customers clarity into how furniture would seem when placed in their room and whether or not it will manage to fit in the space provided.

Brands such as Jack Daniel’s are also set to incorporate AR in their marketing mix. Customers will now be able to scan any bottle of Jack Daniel’s Tennessee Whiskey and experience a pop-up book. The experience allows users to see a miniature distillery which reveals the process in which the whiskey is made and learn about the man Jack Daniel himself.

Using AR in marketing campaigns enables marketers to gather an increased amount of data in combination with real-time feedback in regards to effectiveness. Rather than simply measuring the amount of time spent consuming ad-related content, marketers also gather data points on how exactly the time was spent and what consumers were paying attention to so as to more accurately analyse their behavior. These data sets can then be utilised to personalise the information that in turn leads to more time spent engaging and interacting with content.

VR, on the other hand, holds immense potential in marketing, especially in industries such as real estate and tourism. With print media become increasingly outdated and online ads being restricted by ad-blockers on browsers, marketers realise the need for innovative solutions to tackle this issue. Keeping in mind that VR provides unparalleled immersion by ridding the user of distractions, it is an ideal medium to promote an experience without it ever feeling like an advertisement in the traditional sense.  

VR has also made inroads in the real estate industry with firms such as Matterport providing potential buyers tours via VR. Instead of wasting time travelling from one place to another, customers can take a tour of multiple locations from the comfort of their homes.  

AR vs VR

Although both technologies are yet to realise their true potential, AR holds a significant advantage over VR in the short term. Considering that the only thing required to experience AR is a smartphone, the potential reach of a marketing campaign utilising AR is significantly higher.

Another significant advantage offered by AR is that users can be intuitively guided to a call-to-action. For example, the Sephora virtual makeup app features a clear call-to-action that guides users to click on a product to purchase.

Although VR provides a much greater level of immersion, in order to get a user to respond to a call-to-action they would have to remove themselves from the experience. Factors such as the high price associated with VR headsets greatly reduce the reach that marketing campaigns utilising VR can experience. With sales of VR headsets stalling at less than 1 million last year, many brands find VR to be too expensive of an investment to justify the returns observed from it.

Pointers for Marketers Exploring AR and VR

In order to effectively integrate an AR/VR experience into their marketing mix, agencies must be wary of taking on AR/VR onto an existing campaign. Using AR/VR for the sake of appearing innovative and cutting edge will come off as gimmicky once the initial buzz dies out. If an AR/VR experience requires marketing just to generate users, it will be destined to fail. On the other hand, if the AR/VR experience itself is the marketing plan, that too would present itself as wasted potential.

In order to effectively market using AR and VR, agencies must provide something of actual value using these technologies. Remember when apps started taking off once the iPhone became mainstream? Many apps were initially mere websites that had been transformed into apps, which made for a poor experience for users.

Similarly, many brands implementing AR in their marketing mix merely turn static images or objects into fully moving animations in an attempt to wow users to draw them into the novelty of it all. Such implementations are destined to fail. As AR becomes more mainstream, the wow factor associated with such experiences will quickly lose appeal and focusing on the technology rather than the message would be a recipe for a loss in ROI.

Before proceeding with a campaign, marketers must question if the experience will create a meaningful change in the behaviour of the user. If the implementation of AR/VR merely creates a fun experience, marketers must question whether the experience holds any relation to values the brand espouses.

The Way Forward

Many brands and agencies have had a go at integrating AR and VR into their marketing mix in the past year and have observed varying levels of success. As an increasing amount of marketers invest in embracing both VR and AR, innovative implementations of these technologies will provide benefits to both brands and consumers alike. With 5G providing speeds that are over a hundred times faster than 4G, the potential for VR headsets to provide a mobile experience greatly increases. As 5G is set to roll out by the year 2020, many predict VR devices will improve and become cheaper by that time.

To make the most of what both VR and AR have to offer, marketing agencies need to create engaging high-quality VR/AR content and in the process develop new models for customers to navigate. As time progresses and both VR and AR develop their capabilities, marketers will possess a wider array of tools at their disposal to generate more engaging and immersive experiences. Such application will undoubtedly redefine the manner in which brands and consumers communicate, and provide opportunities for dynamic engagements and experiences in the process.  

-By Karan Shah, Founder, IIDE, who studied Private Equity & E-Commerce Strategies at Harvard University and is also a tech enthusiast and a public speaker. Karan aims to change the way education is delivered in our country by making it fun and practical through using an experience-based learning methodology with trainers who come with industry experience and hands-on learning techniques.