5 Benefits of Augmented Reality in Marketing

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Technology is constantly evolving and adapting to create better experiences for its users. For marketers, this means continuously adapting new ways to make the most of them. The benefits of augmented reality are taking the world by storm, showing huge potential to change how we view products and ads.

According to Insider Intelligence, Augmented Reality (AR) will increase over the next four years from 14.3 million this year to 87.7 million users in 2026.

Augmented reality, in marketing terms, refers to the point when virtual objects are integrated into the customer’s real-world environment. With augmented reality, a message’s meaning is enhanced by dynamic visuals.

Before examining the benefits of augmented reality, let’s first discover what it actually is.

What is Augmented Reality?

Augmented reality is the blending of digital technology and the physical world. This is done by using your camera to overlay computer-generated images onto your view of the real world.

Other terms for augmented reality include “mixed reality,” “augmented virtuality,” and “virtual augmentation.”

Essentially, augmented reality (AR) is a live, direct or indirect view of a physical, real-world environment augmented with digital inputs such as sound, video, graphics, or GPS. 

The AR market would increase at a compound annual growth rate (CAGR) of about 65% between 2017 and 2024, reaching $50 billion by the end of this period.

What is Augmented Reality in Marketing?

Brands can create rich and distinctive consumer experiences by superimposing visual, auditory, and other sensory information onto the real world, frequently with little more than a mobile device.

Professionals can use the benefits of augmented reality to add value to their advertising campaigns and marketing trends. For example, they could create an AR experience in which users see a video clip of an actor holding up a product, which is then replaced by an image of themselves holding it. This experience would let users try on clothing or jewelry without physically visiting the store. 

Benefits of Augmented Reality in Marketing

There are so many benefits of augmented reality in marketing that it makes sense to take advantage of this technology. It’s a great way to create an immersive, interactive experience with a personal touch.

Augmented reality can also help you reduce your return rates or increase sales. It’s easy to see why brands are eager to get started with this technology.

Here are five ways augmented reality will benefit your business:

1. Immersive, Interactive Experiences with a Personal Touch

With augmented reality, users can interact with products and services in new ways. For example, when viewing an online catalog for a clothing store, customers can interact with models wearing different outfits by simply pointing their smartphones at them. This creates an immersive experience for the customer and helps them visualize how something would look on their body before making a purchase decision.

2. Encourage Purchases

Augmented reality marketing makes online shopping easy, which is one of its biggest benefits. Imagine you’re shopping for furniture at Lowe’s home improvement store and want to see how something would look in your living room before buying it.

3. Reduce Returns

If your company sells products online, there’s no doubt that some people will be unhappy with their purchase once they receive it. But offer virtual dressing rooms or try-on experiences through AR. Shoppers may feel more comfortable making purchases because they have had firsthand experience with the product before buying it. This could help reduce returns!

4. Loyal and Returning Customers

The importance of retaining devoted customers is discussed in a report by OutboundEngine. It claims that finding a buyer can cost up to five times as much as keeping one. Additionally, a 5% increase in customer loyalty can result in a 25–95% increase in profits.

You can create a more immersive experience for your customers with augmented reality. You can offer them more than just a product — you can give them an experience they want to share with their friends. Plus, they will likely become repeat customers if they have a good experience with your company. So, client retention is undoubtedly one of the greatest benefits of augmented reality as it saves you huge capital spent on new customer acquisition. 

5. Create Competitive Differentiation

Augmented reality allows you to differentiate yourself from other companies in the same industry by showing how innovative your company truly is. If you develop an application that allows customers to try on clothes virtually before buying them, they will know that you are creating unique solutions for them. This will attract more people to your product because of its uniqueness compared to similar products today. 

Among the most significant benefits of augmented reality is brand building. It means you can still create a buzz around if you’re currently not selling a product. You can test people’s interest in your potential future product and build a target audience beforehand. 

Bonus: Benefits of AR in Digital Marketing

In digital marketing, augmented reality can be used in many different ways, from improving the customer experience to creating fun content. Even digital packing is a great way to spark people’s interest and converts visitors into customers.

AR in Marketing Examples

The following are examples of augmented reality applications in marketing:

  • Virtual try-on – This application allows users to try on clothes virtually before purchasing them. It provides a realistic simulation of how a garment looks on the body, which helps users make informed decisions when shopping online or in-store.
  • Product visualization – This application allows users to see how their product will look when installed in their home or office. For example, if you’re selling kitchen cabinets, you can create an image of what your cabinets would look like in someone’s kitchen and show them how they would fit and function within their space. The same goes for furniture and other items that require installation by professionals.
  • 3D mapping – With this app, businesses can create 3D maps that allow customers to interact with products in a virtual environment before making purchases. The map could include images of products in different sizes, colors, and materials so that customers can better understand what they’re buying before committing to purchases.
  • In-store advertising – You can create an AR experience for people who visit your physical store by using your mobile app as a beacon or Google Tango’s indoor mapping feature.

Final Words

Part of AR’s increased popularity is that it can integrate into an established practice (like marketing) and be a useful addition rather than a replacement. AR plays an important role in the marketing industry. It’s still very early, but seeing the benefits of augmented reality, it will likely be an unavoidable part of our everyday marketing campaigns. The technological solutions offered by Studio Mimpi are created to give your clients a novel marketing experience and engage them on an entirely new level. By outlining your visual identity, from logo creation to thorough brand guidelines, we remove any uncertainty from the process. We ensure that your brand is consistent across all media by focusing on a specific goal.

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