Why Big Brands are Betting on Augmented Reality

Marketers have begun to experiment with augmented reality (AR) for years now. However, AR has recently gained some ground thanks to companies like Snapchat, Apple and Facebook. Even big name cosmetic brands like L'Oreal are utilizing AR technologies and incorporating them into stores and  ecommerce sites. L'Oreal has several branded AR apps that allow users to try out hairstyles and makeup upon purchasing. 

 “It has impacted our sales significantly. It’s more of an offline play than an online play—we don’t see million of people buying from the app but we see it having an impact in what people buy offline.” -Lubomira Rochet, L'Oreal's Chief Digital Officer. 

And then we have social platforms including Snapchat which has introduced face-swapping and "world lenses" that puts characters in the real world like the famed dancing hot dog.  Snapchat works closely with brand leaders and marketers to design these lenses. Their aim is to mimic some of the original and most popular filters. This can cost upwards of hundreds of thousands of dollars for only a single day takeover.  However, this poses somewhat of a problem for advertisers, particularly automakers who like to put perfect, stylized photos of cars in ad campaigns. “There’s limited value in doing things that don’t allow us to show off the things that people love us for... For Snapchat, a platform that doesn’t allow us to do that in a paid capacity is a big roadblock", says Mike Dossett, associate director of digital strategy at RPA.  Below is the video Snapchat released introducing the new "world lenses".

With all of this buzz surrounding augmented reality, it comes as no surprise that Apple will be implementing AR technologies in the latest version of the iPhone.  Its new ARkit platform will allow brands like Ikea and Nike to create branded AR apps to connect with consumers.  These brands plan to launch their apps in the coming months so that consumers can virtually try on clothes and place furniture around their homes before they ultimately decide to purchase. Cool right? 

In the next year or so, it's possible that we will be seeing more advances in the hardware beyond our phones.  Branded retail experiences and physical spaces have the potential to be augmented with digital experiences, just like you see in the Snap video.  

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