Introduction to AR Ads
Augmented reality (AR) is not just the longer term of selling — it’s the current. In 2018, brands, advertisers, and platforms rushed to get in on the fast-growing market, developing recent applications of the cutting-edge technology to have interaction with and sell products to consumers. While AR ads are still of their infancy, one mobile campaign was the strongest indicator so far that the space can pull in big brands looking to succeed in consumers at scale.
The Growth of AR Ads
The projected global AR ad market by 2022 is anticipated to grow from $167 million in 2017 to $2.6 billion. This growth mirrors that of mobile promoting overall, which is forecast to grow to almost 31% of worldwide ad expenditure by 2020, to the tune of $187 billion. AR promoting is becoming a dominant type of promoting, and massive brands are taking notice.
Michael Kors Leads the Way
Leading the best way in AR ads was fashion brand Michael Kors, which became the primary brand to check out AR ads in Facebook’s Newsfeed. The ad allowed users to virtually try-on a pair of sunglasses and make a purchase order as a part of the experience. This move made Michael Kors the primary to market on the largest mobile promoting platform, beating out other major brands like Sephora and Pottery Barn.
The Future of AR Ads
The sunglass overlay within the Kors ad was a straightforward AR application. Beyond try-ons, AR ads could take the shape of sponsored virtual "portals" just like the ones offered by Coca-Cola’s NASCAR integration and Snapchat’s forthcoming original programming. As AR becomes a richer format, so will AR ads. The high engagement of AR ads has led other platforms to experiment with the format, with Verizon’s Oath working with Pottery Barn and The Home Depot, and Blippar creating ads for Jaguar Land Rover and Honda.
Success Stories
While the outcomes of the Michael Kors campaign are unknown, other AR ads have shown promising results. For example, Saban’s twenty fifth anniversary of "Power Rangers" campaign produced a click-through-rate (CTR) of two.1%, outpacing the industry benchmark of 0.08%. On Messenger, quite a lot of brands saw successes with AR ads, with ASUS seeing 10 times the engagement with their AR experience, Nike selling out of the Kyrie 4s shoe in under an hour, and Kia increasing engagement with its dealers.
The Importance of AR Ads for Facebook
For Facebook, AR ads present a chance for the platform to carry onto its 20% share of the U.S. digital ad market despite increasing competition by Amazon and innovation by Snap. With the latter, Facebook has been savvy enough to integrate Snap’s features to undercut the struggling social messaging platform. Following its adoption of Stories in each Facebook and Instagram, the corporate rolled out AR, a technology that Snapchat continues to experiment and innovate with.
Conclusion
In conclusion, AR ads have gotten a significant player within the promoting world, and massive brands are taking notice. With the projected growth of the AR ad market and the success of campaigns like Michael Kors, it’s clear that AR ads are here to remain. As the technology continues to evolve, we will expect to see much more modern and interesting AR ads in the longer term. For brands adopting AR ads, the longer term is now, and it is time to get on board with this exciting recent technology. With over 80 million monthly AR users within the U.S. alone, the potential for AR ads to succeed in and interact with consumers is vast, and it’s going to be exciting to see how this technology continues to shape the promoting landscape.
