Did you know that 3.2 billion people in the world own a smartphone in 2019 and mobile owners worldwide will increase to 3.8 billion by 2021? Did you know that 46% of Americans have used an augmented reality mobile app without being aware of it (Barack, 2017). Have you ever counted the number of times you check your smartphone during the day? Based on smartphone usage statistics consumers spend nearly 5 hours per day on their mobile device and checks them about 63 times a day. Moreover, 22% of users look at their phones every few minutes, and more than 50% of them check it a few times per hour. Even 69% do it within the five minutes of waking up and 87% of people check smartphones one hour before bed. Further smartphone usage stats say that 86% of people constantly check their phones while talking to friends (Lu, 2017). It worth to say that currently we are extremely close to becoming addicted. All of this proves the fact that, for example, 92% of US consumers already believe that cell phone addiction is real, and smartphones dictate their lives. Augmented reality in marketing research and practice is becoming extremely promising and growing field nowadays, because 68.7 million US customers will use augmented reality (AR) at least once a month in 2019. And this year, many brands seized the opportunity to enhance their user experiences with the advanced tech (Petrock, 2019). What is Augmented RealityAugmented reality (AR) is an experience that integrates digital information with information from the user’s real-world environment. Since this happens in real-time and the digital marketing and other aspects are combining with what is happening around the user at that particular moment (Digital Pop-ups, no date). AR is one of many new cutting-edge technologies which are changing the way people communicate and interact with the world. Although AR is not a mainstream yet, its application is quickly growing. Statista forecasts AR market size worldwide will increase from 3.5 billion in 2017 to more than 198 billion in 2025. Augmented reality (AR) market size worldwide. Source: Statista Do you know why AR works? Because it not only provides an interactive user experience –what marketer always experts are always wanting, but also give a more realistic presentation of a product - what the customers are always wanting. AR results in evaluating a brand’s products by customers more than its peers. In a recent study, 40% of respondents would be willing to pay more for a product if they could experience it through augmented reality. This shows that the use of AR and perceived value are highly related. In addition, the results from the same study stated that 61% of shoppers prefer to shop at stores that offer AR over ones that do not (Retail Perception, 2016). There are three main reasons why companies need to adopt AR technology (Survicate, no date).
Companies are realizing the value of AR in increasing perception and are increasingly building ways to incorporate augmented reality in digital marketing and advertising channels more efficient. For instance, AR marketing is already heavily utilised: 88% of marketing companies generating revenues from $100 million to $1 billion are using AR (Samit, 2017). Here are a few campaigns of companies already successfully leveraging augmented reality in digital marketing and advertising.
ConclusionAugmented Reality technology is a powerful marketing tool providing immersive and memorable user experience. Even more, AR is likely to become mainstream for both online and offline shopping and the touch point where customers make decision on a purchase. Many users have tried AR mobile apps or at least heard of them. Moreover, the AR usage does not need for investment from customers but gives satisfaction of experiencing the product first-hand benefits of trying various products when and where users want it. If customer is fully satisfied, only then the company can insure growing sales. AR is an emerging trend in marketing strategies, and it is going to change the way the digital advertising market functions in 2020. ReferencesLauren Barack (2017) “You’re likely using AR, even if you don’t know it”. Available at https://www.gearbrain.com/half-of-americans-use-ar-2473299441.html (Accessed: 10 March 2020). Tina Lu (2017) “Almost Half Of Smartphone Users Spend More Than 5 Hours A Day on Their Mobile Device”. Available at https://www.counterpointresearch.com/almost-half-of-smartphone-users-spend-more-than-5-hours-a-day-on-their-mobile-device/ (Accessed: 10 March 2020). Ben Lovejoy (2019) “Problematic Smartphone Usage now a psychiatric disorder; 23% of kids affected” Available at https://9to5mac.com/2019/11/29/problematic-smartphone-usage/ (Accessed: 10 March 2020). Digital Pop-ups (no date) “Augmented Reality” Available at https://digitalpopups.com/augmented-reality/ (Accessed: 11 March 2020). Victoria Petrock (2019) “Virtual and Augmented Reality Users 2019”. Available at https://www.emarketer.com/content/virtual-and-augmented-reality-users-2019 (Accessed: 12 March 2020). Shanhong Liu (2019) “Augmented reality market size worldwide 2017-2025”. Available at https://www.statista.com/statistics/897587/world-augmented-reality-market-value/ (Accessed: 11 March 2020). Retail Perceptions (2016) “The Impact of Augmented Reality on Retail”. Available at http://www.retailperceptions.com/2016/10/the-impact-of-augmented-reality-on-retail/ (Accessed: 9 March 2020). Survicate (no date) “How Augmented Reality Can Change Customer Experience” Available at https://survicate.com/blog/augmented-reality/ (Accessed: 9 March 2020). Jay Samit (2017) “Augmented reality: Marketing’s trillion-dollar opportunity” Available at https://adage.com/article/deloitte-digital/augmented-reality-marketing-s-trillion-dollar-opportunity/309678 (Accessed: 10 March 2020). MTA Martech Advisor (2019) “Top 5 Mobile Marketing Campaigns of 2019 to Inspire Your 2020 Strategy” Available at https://www.martechadvisor.com/articles/mobile-marketing/best-mobile-marketing-campaigns-2019/ (Accessed: 8 March 2020). Dorothy Murach (2020) “ A The Top 5 Mobile Marketing Campaigns of 2019” Available at http://info.localytics.com/blog/the-top-5-mobile-marketing-campaigns-of-2019 (Accessed: 8 March 2020).
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