Back to the Future and Beyond: The Augmented Reality Goldmine in Digital Marketing

Remember Steven Spielberg's amusing world of Back to the Future - of flying cars and time travel? Augmented Reality (AR) wasn't just a fancy accessory; it was the hippest way to jazz up our visual experience as the audience! Picture Marty McFly rocking those ultra-cool AR glasses, turning Hill Valley into his personal playground of digital delights, strutting through streets lit up with digital directions and funky info about every nook and cranny. And the epic scene where Marty is about to get swallowed by a hologram shark. And let's not forget Doc Brown popping up like a holographic genie, delivering messages in a way that'd make even the most futuristic tech wizards jealous. And mind you, this was 1986. Steven Spielberg did it again in 2002 with Minority Report, set in 2054, which features AR billboards that can direct personalised advertisements to people walking past, offering each person relevant products and even calling out to them by name. Plenty more movies in between and after demonstrate ideas that are now revolutionising the digital marketing world by offering immersive, interactive experiences that engage consumers in novel ways. 

Today's Brands strategically employ AR technology across diverse marketing channels to cultivate memorable and personalised engagements with their target demographics. AR is extensively integrated into mobile apps, allowing consumers to interact with virtual products or experiences superimposed onto their actual surroundings via smartphone cameras. This facilitates lifelike product demonstrations, enabling consumers to envisage items within their environment before purchase. AR also underpins experiential marketing initiatives, wherein brands orchestrate AR-driven installations or events to captivate audiences, driving foot traffic and fostering social media virality. AR enhances traditional advertising mediums, infusing print ads and packaging with interactive elements, gamification, or product demonstrations to enthral consumers.

Additionally, AR augments e-commerce platforms, facilitating virtual try-on experiences for apparel, makeup, and accessories, thus streamlining the online shopping journey. Moreover, in location-based marketing, AR overlays furnish real-time information, promotions, or navigation guidance within specific geographic locales. Augmented reality in digital marketing gives brands a potent instrument to engage consumers, spur sales, and establish distinctiveness in a competitive landscape through pioneering and unforgettable encounters.

7 Brands That Rocked Experiential Marketing Through Augmented Reality 

A comprehensive approach to market-oriented AR involves designing immersive experiences that leverage active and passive AR ingredients and engage consumers in various ways. Let us explore famous brands that leverage AR in innovative and effective marketing campaigns. According to an article in Science Direct, to craft value-creating AR experiences, augmented reality initiatives need to be ENTANGLE-ing, where ENTANGLE stands for Experiences, Nourishing Engagement, Target Audiences, Alignment with Marketing Programs, Neutralising Threats, Goals, Leveraging Brand Meaning, and Enticing Customers.

Pokémon Go: In 2016, the mobile game Pokémon GO changed the gaming industry overnight, allowing players to catch their childhood favourite Pokémon in real life. This phenomenon introduced Augmented Reality (AR) to the masses via handheld devices and forever changed how we interact with our phones. It was a tremendous success, breaking numerous records over the summer. With a peak of 232 million active players in 2016, coupled with revenues exceeding USD 1.21 billion by 2021, Pokémon GO was a cultural and technological phenomenon.

Pepsi Max: Pepsi Max aimed to craft an engaging digital Out of Home (OOH) campaign, devising an AR experience that transformed a bus shelter display into an interactive window projecting fantastical scenarios into the real world. Employing bespoke 2D and 3D assets, realistically integrated into a live street feed via depth mapping, the campaign surprised unsuspecting commuters and passersby with scenes like a towering laser-shooting robot and an incoming asteroid. The initiative achieved remarkable online traction, amassing over 8 million YouTube views, with 3 million within just five days. Concurrently, Pepsi Max sales surged by an impressive 35% year on year (YoY) during the campaign's duration.

Grey Goose: Grey Goose, a premium vodka brand, employed an interactive AR setup at Heathrow Airport's Duty-Free in 2022. The initiative aimed to deliver a multi-sensory encounter focusing on the sense of sight (the first of five senses) to enhance awareness of its expanding product range. Travellers could unveil new flavours through hand gestures over a virtual frosted screen. Upon selecting a flavour, a plant-covered wall appeared with flowers morphing into augmented 3D shapes of the user, reacting to their movements, intensifying the natural experience. Detailed information on the flavours, including ingredients and recipes, was then displayed, accompanied by a QR code directing to Grey Goose's website.

Bon & Viv: BON V!V Spiked Seltzer created an innovative Out-of-Home advertising campaign in Los Angeles and San Diego‍. Activated from a QR code printed within the mural design, the experience brought to life a 3D vending machine with interactive animations, allowing users to select and dispense their favourite flavour can in 3D. Alongside the 3D content, the experience also featured key retail call-to-action integrations, such as a branded map showing the quickest way to get to the store and Instacart facilitating immediate purchase and instant delivery to drive the campaign's success.

IKEA: In September 2017, IKEA launched the Place App to alleviate furniture shopping anxiety. The app, available in numerous languages at no cost, employs AR technology, using which users can overlay virtual IKEA furniture models onto their real living spaces, offering a seamless preview of how selected pieces fit. With over 2,000 3D renderings from various angles, the app ensures 98% accuracy in texture, fabric, lighting, and shadow representations. It allows consumers to experiment with furniture placement in kitchens, backyards, and beyond simply by scanning their chosen area and selecting desired products from the app.

Dulux: Dulux sought to engage customers earlier in their purchasing journey, recognising mobile's potential and developed the Dulux Visualizer app to captivate users, fostering a desire to redecorate their living spaces. Objectives included showcasing the product range, expanding the app user base, and driving sales of testers and paint, both digitally and in-store. Since its launch across 60+ global markets, the app has seen remarkable success, boasting 20 million downloads. The user base surged by 143%, usage soared by 247%, and visits to the 'Saved items' page spiked by 242%. Crucially, searches for stockists surged by 92%, with tester sales climbing by 65%.

Nike: Employing 3D and augmented-reality tech, Nike introduced Michael Jordan to a new generation via Snapchat despite their never witnessing his play. But the encounter went further. A screen tap enabled users to swiftly purchase Air Jordan III Tinker shoes promptly delivered to their homes within two hours. Impressively, the pre-release footwear sold out in a mere 23 minutes. According to Nike, AR has reduced online returns by 28%, which has saved the company millions of dollars. Additionally, it has helped to improve customer satisfaction, as customers are now more likely to receive shoes that fit correctly the first time they order them.

Takeaway

Several other fast fashion and retail brands are putting the power of Augmented Reality to full use in increasing their in-store and online purchases. Not just Retail but industries such as health and Travel Hospitality are also exhausting the AR potential. Millennials are the core shoppers today who need services at their fingertips. Today, customers value personalisation and convenience over pricing and products, and AR, if done right, can help brands develop innovative retail experiences that push their customers to purchase. A report by Statista also suggests that the global extended reality (XR) market that includes augmented reality (AR), virtual reality (VR), and mixed reality (MR) will rise to over 100 billion U.S. dollars by 2026. 32% of consumers already use AR while shopping, which will grow to 75% by 2025. If you want to understand how your brand can leverage AR to boost sales, drop us a line today.