The Future of AR/VR in Marketing and Advertising
Technology is becoming an integral part of all business enterprises, no matter what the sector. One of the primary uses of technology can be seen in marketing and advertisement with companies trying to find innovative methods to take their products to their intended customers.
One of the biggest innovations and possible game-changers in this sector is ‘Augmented Reality’. AR glasses and headsets are already in circulation for quite some time, only recently have brands, marketing teams, and CMOs recognized its potential value and began to implement tactics to reach consumers more effectively.
It provided the customers with immersive product experience, offering them on-demand information about products they’re shopping or reaching consumers at just the right places and moments. Development of smartphone technology has meant that consumer expectations are higher when it comes to the shopping experience. Online shoppers now want more information before they get down to ordering a product or service over the internet, and retail shoppers can now access a whole range of information and reviews on their smartphone while inside the store. Marketing specialists must now contend with providing even more immersive product experiences to consumers as technology continually raises the bar.
Top furniture retailer Ikea is allowing users with AR glasses to view how certain pieces of furniture would potentially look in their living room as they decide what to buy. While footwear brands like Converse, utilizes AR to let users view how different shoes would look on their feet while shopping.
AR also solves the problem of Asymmetric Information, which has troubled marketeers for a very long time. On a basic level, it refers to the fact that in any transaction, both the buyer and the seller have access to different levels of information. In the clothing sector, the retailer knows where their shirts were made, how much they cost to manufacture, and what they need to charge to turn a profit. The consumer is unaware of such information and can’t decide on a ‘fair price’ for the product.
Smart marketeers can make the use of AR to provide the right amount of transparency to users in real-time, to make them feel like they have all the information they need to make an informed buying decision.
AR is becoming increasingly essential in advertising as well. Augmented reality ads are immersive, which means they help marketers create a certain emotional connection with customers to keep them engrossed. Unlike images or banners, AR ads are interactive and lifelike: consumers can see and even interact with them. The interaction surpasses all age-groups, genders and other religious segregation.
Also in western countries, Augmented reality advertising is usually more affordable and far more immersive than print advertising. The price for an AR ad varies depending on its quality: a simple AR ad can cost around $5,000 to develop, while a sophisticated AR campaign with eye-catching graphics may amount to $100,000. Launching an AR advertising campaign is usually a lot cheaper than placing a print ad in a bestselling print magazine or newspapers in India. The same AR application can be used for many campaigns as well.
So Augmented Reality is the way forward in the marketing and advertising sector. The future lies in innovation for most businesses, the sooner they join the bandwagon the better.
This article is contributed by Arun Gupta, CEO & Founder, MoMagic