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This article first appeared in Enterprise, The Edge Malaysia Weekly on May 11, 2020 – May 17, 2020
The increasingly complex industry of augmented reality (AR) has generally been placed in the identical basket as other Industrial Revolution 4.0 (IR4.0) products resembling virtual reality (VR), the Internet of Things (IoT) and blockchain. Hence, it is straightforward to mistake AR as a single technological entity.
The technology is way more nuanced than most individuals think and it pays to know that not all AR products are created equal, each adopting different methodologies to serve different use cases. Some are marker-based AR, allowing apps to routinely translate billboards and signboards on the fly, anchoring the translated text over the unique text. Some are markerless AR, that are used to position virtual furniture or objects in a room without the necessity for markers.
Some are even location-based, the perfect example being the favored mobile gaming app Pokemon Go. There are also practical use cases resembling AR City, an app that permits tourists to navigate unfamiliar cities on foot by following on-screen 3D directions while displaying touristy information on places of interest nearby.
The recent AR tool on the town is known as WebAR, the primary of its kind in Malaysia brought over from the land of the rising sun. Eeevo Malaysia is a Japanese IT firm specialising in marketing, web development and human resources. It launched WebAR last December as a part of its arsenal of promoting services.
“WebAR allows users to interact with objects in virtual space in real time as a marketing tool. What makes it different from many of the other AR is that it doesn’t need a special app to launch,” says Eeevo marketing director Yuki Jo.
“Customers can use QR codes or a weblink to access the web site and use the AR directly from the web site itself without the necessity for an app. It is a markerless AR, so users can place the item anywhere within the room with an accurate size and depiction.”
Yuki explains that the straightforward act of migrating AR away from apps and into the HTML realm has addressed several key concerns and pain points faced by most marketers. Many brands would not have their very own proprietary app, nor do they need to speculate heavily in expensive infrastructure and development costs to construct an app from scratch.
According to US-based marketing analytics firm Localytics, 21% of users abandon an app after using it just once. It can also be reported that 71% of all app users, across all industries, churn inside 90 days of putting in the app.
WebAR can alleviate much of the event costs and risks that include adopting AR as a marketing tool, something that is comparatively recent and unproven within the Malaysian market. Not only does it make AR more accessible to marketers, it greatly streamlines the user experience.
Eeevo CEO Noritaka Araki says while there will not be many case studies in Malaysia, WebAR is gaining traction in Finland and Japan as a marketing tool. It has been used as a everlasting widget on e-commerce web sites, a customer engagement tool during exhibitions and a support tool for sales departments.
“WebAR is best used for marketing large products which can be hard to move and carry. With WebAR, you should have a picture of the product in its actual size and you’ll be able to customise the color or model of the product,” says Noritaka.
“It could be very suitable for interior design and furniture to see if it suits with the environment and overall atmosphere of the room. So, we’re taking a look at things like furniture, kitchen and other electrical appliances, cars and musical instruments resembling pianos and drums.”
He points out that WebAR is more practical for low-quantity, high-value goods as a result of the price of implementation. Its services start at about RM9,000, which poses a financial barrier for start-ups and small enterprises in addition to industries with an intensive range of products like fast-moving consumer goods and fashion.
But once properly implemented, AR has proved to be a really effective marketing tool. Houzz, a US-based home renovation and design platform, has multiple million users using its in-app AR features. The company says users who use the AR services are 11 times more more likely to purchase goods and spend 2.7 times more time on the app.
After acquiring AR company ModiFace, L’Oréal had double the engagement time and triple the conversion rates after implementing AR features on its website and app, which permit users to visualise the consequences of beauty products on their faces using their smartphone before deciding to purchase.
At press time, there have been not any conclusive case studies and statistics on the effectiveness of WebAR specifically, as a result of its relative newness available in the market. However, Eeevo is positive it would do well in Malaysia.
Noritaka says that with the arrival of 5G and other advancements in IR4.0, many marketers are implementing these technologies to realize their in-house marketing goals, indicating that there’s a healthy demand for such services. However, WebAR will not be without its drawbacks. While it’s way more accessible to users, it cannot perform at the identical capability as an in-app AR by way of features and functionality, says Yuki.
“The technology continues to be recent and expanding. WebAR has yet to achieve the stage where it could perform advanced animations. Features like replacing KFC or McDonald’s advertisements with Burger King advertisements within the 2019 campaign ‘Burn That Ad’ continues to be impossible for WebAR.
“The best use case immediately is to display accurate depictions of product models using QR codes or web links. Normal WebAR is sufficient for many clients, especially those with large products within the manufacturing industry. It is less complicated for his or her sales team as they’ll exhibit their products and give you proposals for the clients on the spot.”
Noritaka says merely implementing AR features on web sites or apps doesn’t guarantee results. To maximise WebAR’s effectiveness, Eeevo has bundled the service with its marketing packages as an alternative of offering it as a standalone service.
“Our company is especially focused on digital marketing products. By bundling WebAR with our other services, it is less complicated for our clients to know that it is a component of the whole package,” he says.
“It is bundled with media buying, press conferences, influencers, public relations and so forth — as a part of a campaign. But after all, we plan to incorporate it in catalogues and online web sites as well. It may be discussed and it’s a possibility.”
Noritaka says he’s thinking about elevating WebAR right into a core component of Eeevo’s business model. However, he takes a wait-and-see approach despite having the first-mover advantage. By bundling the technology with other services, the corporate can spread its risk because it gauges the demand for WebAR services before fully committing to it.
Eeevo is heading into uncharted territory as there isn’t any precedent for WebAR services and it has no direct competitors yet, says Noritaka. However, meeting with prospective clients has shown that many are thinking about what the technology can offer.
However, the RM9,000 price tag is a large deterrent for a lot of them. So far, Eeevo has seen more positive results from multinational corporations and foreign firms than local small and medium enterprises.
Nevertheless, Noritaka stays steadfast on the pricing, considering the R&D that went into the product. He believes that 5G will eventually bring about change on the earth of commerce and that WebAR is a communication tool that’s in a position to deliver a considerable amount of information in a very simple to know and interactive way.
“We implement WebAR not only to disseminate information but additionally for users to experience the product itself. It gives users a way more immersive experience on the web site, which allows brands to face out from the competition,” he says.
“So, slightly than simply black and white text and a number of photos, brands may have a more creative outlet to draw users to remain on their web sites longer, direct them to purchase products and drive sales conversions.”
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