SlideShare a Scribd company logo
1 of 12
Download to read offline
HOW
AUGMENTED
REALITY(AR)
IS CHANGING
THE WORLD
OF
CONSUMER
MARKETING
7/21/2022 1
SAJITH NIROSHAN
SENECA COLLEGE
7/21/2022 2
What is Augmented Reality?
• Augmented reality (AR) is an enhanced version of the real physical world that
is achieved through the use of digital visual elements, sound, or other
sensory stimuli delivered via technology
• With the aid of an AR device, digitally created 3D objects can be
superimposed over real-world scenes in augmented reality.
Device Capture the
surrounding of the user
A Software collects data
and processes it to
decide a location
In real-time, AR objects
appears on the screen
How AR Works
7/21/2022 3
What is the difference between VR, AR and MR?
Virtual Reality(VR) Augmented Reality(AR) Mobile Reality(MR)
Complete Artificial
Environment
complete virtual environment
immersion
Digital items enrich the
physical world
Overlaying virtual items on a
real-world scene
Engage in both real-world
and virtual interactions
combining a virtual environment
with the real world
Growth of AR Technology and Prominent players in the market
25.33Bn
Global augmented reality
market size in 2021(USD)
40.9%
Global compound annual growth
rate (CAGR) from 2022- 2030
33.9%
Revenue share in North
America 2021
Source: Augmented Reality Market Size, Share & Trends Analysis Report By Component (Hardware, Software),
By Display (Head-Mounted Display & Smart Glass, Head-Up Display, Handheld Devices), By Application, By Region, And Segment Forecasts, 2022 - 2030
Prominent players in the augmented reality market
7/21/2022 4
How AR can impact consumer behavior?
 By overlaying digital visuals in the real world, augmented reality (AR)
strengthens emotional bonds. It gives customers the impression that
they already possess a thing, which eventually increases consumer
interest.
 AR help to close the gap between intention and actual
purchase. Before consumers buy the product, they can
augment the use of the product.(Try before use)
Example: Buying a wall decoration or selecting a color
for indoor
 Consumers' psychological well-being is also being impacted by
augmented reality, according to research that demonstrates how it
activates users' pleasure centers. This deep emotional connection gives
consumers a sense of ownership over the object, which raises the
likelihood of a sale.
7/21/2022 5
How do major brands use AR for their marketing activities?
IKEA Studio app
In 2017 IKEA launched its Augmented Reality Application that allows users
to test IKEA's products in real-time through Apple iOS 11’s ARKit
technology
• IKEA Studio app enables them to get over a 50% increase in
engagement and conversion
• Lower their product returns by 30%, saving both time and money
• 1.2million app engagements and 1.9million products placed
• Their campaign resulted in 7.43 billion impressions with 99% positive
or neutral sentiment
Source: https://www.warc.com/content/paywall/article/sabre-awards/global-launch-of-the-
ikea-place-app/en-GB/121327?
7/21/2022 6
How do major brands use AR for their marketing activities?
Gucci designed virtual sneakers
The Gucci Virtual 25 is a brand-new, entirely digital pair of sneakers from
Gucci that can be "worn" in augmented reality (AR) or used in
collaboration with third-party apps like Roblox and VRChat.
• Virtual sneakers are a lot less expensive than a typical Gucci piece.
Priced between $8.99 - $12.99
• Gucci is approaching the über-trendy space with this novelty concept
which gained them a lot of traction from GenZ
• In regions like China, Generation Z is responsible for up to 15% of the
country’s luxury purchases.
• 55% of Gucci’s sales came from audiences aged under 35
7/21/2022 7
How do major brands use AR for their marketing activities?
Sephora virtual artist
With the Sephora Virtual Artist, You can star in your own tutorials, get a
virtual makeover, and communicate more freely with your pals about
your passions.
• Sephora Virtual Artist has seen 200 million shades tried on, and over
8.5 million visits to the feature
• 28% Uplift in AR makeup feature user adoption
• 48% Increase in overall AR makeup feature traffic
7/21/2022 8
MY
POINT OF VIEW
7/21/2022 9
7/21/2022 10
AR will be the next biggest digital trend
• Due to media clutter, people tend to ignore or skip advertisements.
The novelty of AR marketing will capture their attention
• Due to the engagement nature of AR, customers will play around with
the product and it will pursue them to take further action
• AR will enable customers to personalize products and try them before
they purchase. Which will increase sales and reduce returns.
• AR will enable brands to capture GenZ customers who are difficult to
target by other modes of marketing
• Many brands that adopted AR technology emerged as the winners
during the pandemic
7/21/2022 11
Brands should be more careful about the AR experience
• Brand should be careful of the user experience of AR. Failure to develop a user-
friendly solution might bring negative sentiments to the brand
Example: Amazon – hair coloring at Amazon Salon got negative reviews
• Brands need to manage the level of engagement with the technology to avoid
harmful behavior
Example: people hurting themselves while playing
Pokemon Go
How augmented reality is changing the world of consumer marketing.ppsx

More Related Content

Similar to How augmented reality is changing the world of consumer marketing.ppsx

Magic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing ideaMagic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing ideaHabibaSaeed5
 
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing ideaMagic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing ideaHabibaSaeed5
 
General senses advanced technologies catalogue
General senses   advanced technologies catalogueGeneral senses   advanced technologies catalogue
General senses advanced technologies catalogueReda Makarem
 
Ar and vr in business
Ar and vr in businessAr and vr in business
Ar and vr in businessNatasha Elian
 
7 Inspiring Examples of Augmented Reality in the Business World
7 Inspiring Examples of Augmented Reality in the Business World 7 Inspiring Examples of Augmented Reality in the Business World
7 Inspiring Examples of Augmented Reality in the Business World Pixel Crayons
 
Augmented Retail - Meetup Retail 2021
Augmented Retail - Meetup Retail 2021Augmented Retail - Meetup Retail 2021
Augmented Retail - Meetup Retail 2021Vincent Guigui
 
Virtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media MarketingVirtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media MarketingCalebCorrigan
 
Virtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media MarketingVirtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media MarketingCalebCorrigan
 
AR/VR Implications in Social Media Marketing
AR/VR Implications in Social Media MarketingAR/VR Implications in Social Media Marketing
AR/VR Implications in Social Media MarketingThomasBosek
 
How cosmetic brands use augmented reality to boost sales
How cosmetic brands use augmented reality to boost sales How cosmetic brands use augmented reality to boost sales
How cosmetic brands use augmented reality to boost sales GlobalTechCouncil
 
Hybrid solutions for exhibitions stand design
Hybrid solutions for exhibitions stand designHybrid solutions for exhibitions stand design
Hybrid solutions for exhibitions stand designSerena Ferrari
 
14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion
14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion
14.07.2011 T2 Augmented Life Thomas Balduff Total ImmersionWerbeplanung.at Summit
 
Augmented Reality & Business: Bridging Virtual & Physical Gaps
Augmented Reality & Business: Bridging Virtual & Physical GapsAugmented Reality & Business: Bridging Virtual & Physical Gaps
Augmented Reality & Business: Bridging Virtual & Physical GapsCognizant
 
(ENG) All About Virtual Reality & Augmented Reality by YDM
(ENG) All About Virtual Reality & Augmented Reality by YDM(ENG) All About Virtual Reality & Augmented Reality by YDM
(ENG) All About Virtual Reality & Augmented Reality by YDMYello Digital Marketing
 
Trends in Augmented Reality (AR)
Trends in Augmented Reality (AR)Trends in Augmented Reality (AR)
Trends in Augmented Reality (AR)PratapRoy9
 
5 AR Experiences Driving eCommerce Growth by Redstage
5 AR Experiences Driving eCommerce Growth by Redstage5 AR Experiences Driving eCommerce Growth by Redstage
5 AR Experiences Driving eCommerce Growth by RedstageDonald Pingaro
 
Augmented reality marketing strategies: The how to guide for marketers (full)
Augmented reality marketing strategies: The how to guide for marketers (full)Augmented reality marketing strategies: The how to guide for marketers (full)
Augmented reality marketing strategies: The how to guide for marketers (full)Hidden Creative
 
Augmented Reality for Consumer Package Good
Augmented Reality for Consumer Package GoodAugmented Reality for Consumer Package Good
Augmented Reality for Consumer Package GoodMathieu Bouyrie
 
Get Retail Smart - Transforming Retail with Augmented Reality
Get Retail Smart - Transforming Retail with Augmented RealityGet Retail Smart - Transforming Retail with Augmented Reality
Get Retail Smart - Transforming Retail with Augmented Realityemmersons1
 

Similar to How augmented reality is changing the world of consumer marketing.ppsx (20)

Magic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing ideaMagic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
 
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing ideaMagic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
Magic Mirror |Smart Mirror using Raspberry Pie| Marketing idea
 
General senses advanced technologies catalogue
General senses   advanced technologies catalogueGeneral senses   advanced technologies catalogue
General senses advanced technologies catalogue
 
Ar and vr in business
Ar and vr in businessAr and vr in business
Ar and vr in business
 
7 Inspiring Examples of Augmented Reality in the Business World
7 Inspiring Examples of Augmented Reality in the Business World 7 Inspiring Examples of Augmented Reality in the Business World
7 Inspiring Examples of Augmented Reality in the Business World
 
Augmented Retail - Meetup Retail 2021
Augmented Retail - Meetup Retail 2021Augmented Retail - Meetup Retail 2021
Augmented Retail - Meetup Retail 2021
 
Virtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media MarketingVirtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media Marketing
 
Virtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media MarketingVirtual and Augmented Reality for Social Media Marketing
Virtual and Augmented Reality for Social Media Marketing
 
AR/VR Implications in Social Media Marketing
AR/VR Implications in Social Media MarketingAR/VR Implications in Social Media Marketing
AR/VR Implications in Social Media Marketing
 
How cosmetic brands use augmented reality to boost sales
How cosmetic brands use augmented reality to boost sales How cosmetic brands use augmented reality to boost sales
How cosmetic brands use augmented reality to boost sales
 
Hybrid solutions for exhibitions stand design
Hybrid solutions for exhibitions stand designHybrid solutions for exhibitions stand design
Hybrid solutions for exhibitions stand design
 
14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion
14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion
14.07.2011 T2 Augmented Life Thomas Balduff Total Immersion
 
Augmented Reality & Business: Bridging Virtual & Physical Gaps
Augmented Reality & Business: Bridging Virtual & Physical GapsAugmented Reality & Business: Bridging Virtual & Physical Gaps
Augmented Reality & Business: Bridging Virtual & Physical Gaps
 
(ENG) All About Virtual Reality & Augmented Reality by YDM
(ENG) All About Virtual Reality & Augmented Reality by YDM(ENG) All About Virtual Reality & Augmented Reality by YDM
(ENG) All About Virtual Reality & Augmented Reality by YDM
 
Trends in Augmented Reality (AR)
Trends in Augmented Reality (AR)Trends in Augmented Reality (AR)
Trends in Augmented Reality (AR)
 
5 AR Experiences Driving eCommerce Growth by Redstage
5 AR Experiences Driving eCommerce Growth by Redstage5 AR Experiences Driving eCommerce Growth by Redstage
5 AR Experiences Driving eCommerce Growth by Redstage
 
Augmented reality marketing strategies: The how to guide for marketers (full)
Augmented reality marketing strategies: The how to guide for marketers (full)Augmented reality marketing strategies: The how to guide for marketers (full)
Augmented reality marketing strategies: The how to guide for marketers (full)
 
Digital Digest 3.pptx
Digital Digest 3.pptxDigital Digest 3.pptx
Digital Digest 3.pptx
 
Augmented Reality for Consumer Package Good
Augmented Reality for Consumer Package GoodAugmented Reality for Consumer Package Good
Augmented Reality for Consumer Package Good
 
Get Retail Smart - Transforming Retail with Augmented Reality
Get Retail Smart - Transforming Retail with Augmented RealityGet Retail Smart - Transforming Retail with Augmented Reality
Get Retail Smart - Transforming Retail with Augmented Reality
 

Recently uploaded

Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOne Monitar
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxRich Reba
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersPeter Horsten
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreNZSG
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Peter Ward
 
Data Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and TemplatesData Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and TemplatesAurelien Domont, MBA
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfJamesConcepcion7
 
Pitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckPitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckHajeJanKamps
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdfMintel Group
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamArik Fletcher
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdfChris Skinner
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesDoe Paoro
 
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...ssuserf63bd7
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterJamesConcepcion7
 
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdfChris Skinner
 
Neha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and CareerNeha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and Careerr98588472
 

Recently uploaded (20)

Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 
Implementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptxImplementing Exponential Accelerators.pptx
Implementing Exponential Accelerators.pptx
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exporters
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource Centre
 
WAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdfWAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdf
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...
 
Data Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and TemplatesData Analytics Strategy Toolkit and Templates
Data Analytics Strategy Toolkit and Templates
 
WSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdfWSMM Technology February.March Newsletter_vF.pdf
WSMM Technology February.March Newsletter_vF.pdf
 
Pitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deckPitch Deck Teardown: Xpanceo's $40M Seed deck
Pitch Deck Teardown: Xpanceo's $40M Seed deck
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management Team
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic Experiences
 
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare Newsletter
 
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
 
Neha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and CareerNeha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and Career
 

How augmented reality is changing the world of consumer marketing.ppsx

  • 2. 7/21/2022 2 What is Augmented Reality? • Augmented reality (AR) is an enhanced version of the real physical world that is achieved through the use of digital visual elements, sound, or other sensory stimuli delivered via technology • With the aid of an AR device, digitally created 3D objects can be superimposed over real-world scenes in augmented reality. Device Capture the surrounding of the user A Software collects data and processes it to decide a location In real-time, AR objects appears on the screen How AR Works
  • 3. 7/21/2022 3 What is the difference between VR, AR and MR? Virtual Reality(VR) Augmented Reality(AR) Mobile Reality(MR) Complete Artificial Environment complete virtual environment immersion Digital items enrich the physical world Overlaying virtual items on a real-world scene Engage in both real-world and virtual interactions combining a virtual environment with the real world
  • 4. Growth of AR Technology and Prominent players in the market 25.33Bn Global augmented reality market size in 2021(USD) 40.9% Global compound annual growth rate (CAGR) from 2022- 2030 33.9% Revenue share in North America 2021 Source: Augmented Reality Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Display (Head-Mounted Display & Smart Glass, Head-Up Display, Handheld Devices), By Application, By Region, And Segment Forecasts, 2022 - 2030 Prominent players in the augmented reality market 7/21/2022 4
  • 5. How AR can impact consumer behavior?  By overlaying digital visuals in the real world, augmented reality (AR) strengthens emotional bonds. It gives customers the impression that they already possess a thing, which eventually increases consumer interest.  AR help to close the gap between intention and actual purchase. Before consumers buy the product, they can augment the use of the product.(Try before use) Example: Buying a wall decoration or selecting a color for indoor  Consumers' psychological well-being is also being impacted by augmented reality, according to research that demonstrates how it activates users' pleasure centers. This deep emotional connection gives consumers a sense of ownership over the object, which raises the likelihood of a sale. 7/21/2022 5
  • 6. How do major brands use AR for their marketing activities? IKEA Studio app In 2017 IKEA launched its Augmented Reality Application that allows users to test IKEA's products in real-time through Apple iOS 11’s ARKit technology • IKEA Studio app enables them to get over a 50% increase in engagement and conversion • Lower their product returns by 30%, saving both time and money • 1.2million app engagements and 1.9million products placed • Their campaign resulted in 7.43 billion impressions with 99% positive or neutral sentiment Source: https://www.warc.com/content/paywall/article/sabre-awards/global-launch-of-the- ikea-place-app/en-GB/121327? 7/21/2022 6
  • 7. How do major brands use AR for their marketing activities? Gucci designed virtual sneakers The Gucci Virtual 25 is a brand-new, entirely digital pair of sneakers from Gucci that can be "worn" in augmented reality (AR) or used in collaboration with third-party apps like Roblox and VRChat. • Virtual sneakers are a lot less expensive than a typical Gucci piece. Priced between $8.99 - $12.99 • Gucci is approaching the über-trendy space with this novelty concept which gained them a lot of traction from GenZ • In regions like China, Generation Z is responsible for up to 15% of the country’s luxury purchases. • 55% of Gucci’s sales came from audiences aged under 35 7/21/2022 7
  • 8. How do major brands use AR for their marketing activities? Sephora virtual artist With the Sephora Virtual Artist, You can star in your own tutorials, get a virtual makeover, and communicate more freely with your pals about your passions. • Sephora Virtual Artist has seen 200 million shades tried on, and over 8.5 million visits to the feature • 28% Uplift in AR makeup feature user adoption • 48% Increase in overall AR makeup feature traffic 7/21/2022 8
  • 10. 7/21/2022 10 AR will be the next biggest digital trend • Due to media clutter, people tend to ignore or skip advertisements. The novelty of AR marketing will capture their attention • Due to the engagement nature of AR, customers will play around with the product and it will pursue them to take further action • AR will enable customers to personalize products and try them before they purchase. Which will increase sales and reduce returns. • AR will enable brands to capture GenZ customers who are difficult to target by other modes of marketing • Many brands that adopted AR technology emerged as the winners during the pandemic
  • 11. 7/21/2022 11 Brands should be more careful about the AR experience • Brand should be careful of the user experience of AR. Failure to develop a user- friendly solution might bring negative sentiments to the brand Example: Amazon – hair coloring at Amazon Salon got negative reviews • Brands need to manage the level of engagement with the technology to avoid harmful behavior Example: people hurting themselves while playing Pokemon Go