1. HOW
AUGMENTED
REALITY(AR)
IS CHANGING
THE WORLD
OF
CONSUMER
MARKETING
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SAJITH NIROSHAN
SENECA COLLEGE

2. 7/21/2022 2
What is Augmented Reality?
• Augmented reality (AR) is an enhanced version of the real physical world that
is achieved through the use of digital visual elements, sound, or other
sensory stimuli delivered via technology
• With the aid of an AR device, digitally created 3D objects can be
superimposed over real-world scenes in augmented reality.
Device Capture the
surrounding of the user
A Software collects data
and processes it to
decide a location
In real-time, AR objects
appears on the screen
How AR Works

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What is the difference between VR, AR and MR?
Virtual Reality(VR) Augmented Reality(AR) Mobile Reality(MR)
Complete Artificial
Environment
complete virtual environment
immersion
Digital items enrich the
physical world
Overlaying virtual items on a
real-world scene
Engage in both real-world
and virtual interactions
combining a virtual environment
with the real world

4. Growth of AR Technology and Prominent players in the market
25.33Bn
Global augmented reality
market size in 2021(USD)
40.9%
Global compound annual growth
rate (CAGR) from 2022- 2030
33.9%
Revenue share in North
America 2021
Source: Augmented Reality Market Size, Share & Trends Analysis Report By Component (Hardware, Software),
By Display (Head-Mounted Display & Smart Glass, Head-Up Display, Handheld Devices), By Application, By Region, And Segment Forecasts, 2022 - 2030
Prominent players in the augmented reality market
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5. How AR can impact consumer behavior?
 By overlaying digital visuals in the real world, augmented reality (AR)
strengthens emotional bonds. It gives customers the impression that
they already possess a thing, which eventually increases consumer
interest.
 AR help to close the gap between intention and actual
purchase. Before consumers buy the product, they can
augment the use of the product.(Try before use)
Example: Buying a wall decoration or selecting a color
for indoor
 Consumers' psychological well-being is also being impacted by
augmented reality, according to research that demonstrates how it
activates users' pleasure centers. This deep emotional connection gives
consumers a sense of ownership over the object, which raises the
likelihood of a sale.
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6. How do major brands use AR for their marketing activities?
IKEA Studio app
In 2017 IKEA launched its Augmented Reality Application that allows users
to test IKEA's products in real-time through Apple iOS 11’s ARKit
technology
• IKEA Studio app enables them to get over a 50% increase in
engagement and conversion
• Lower their product returns by 30%, saving both time and money
• 1.2million app engagements and 1.9million products placed
• Their campaign resulted in 7.43 billion impressions with 99% positive
or neutral sentiment
Source: https://www.warc.com/content/paywall/article/sabre-awards/global-launch-of-the-
ikea-place-app/en-GB/121327?
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7. How do major brands use AR for their marketing activities?
Gucci designed virtual sneakers
The Gucci Virtual 25 is a brand-new, entirely digital pair of sneakers from
Gucci that can be "worn" in augmented reality (AR) or used in
collaboration with third-party apps like Roblox and VRChat.
• Virtual sneakers are a lot less expensive than a typical Gucci piece.
Priced between $8.99 - $12.99
• Gucci is approaching the über-trendy space with this novelty concept
which gained them a lot of traction from GenZ
• In regions like China, Generation Z is responsible for up to 15% of the
country’s luxury purchases.
• 55% of Gucci’s sales came from audiences aged under 35
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8. How do major brands use AR for their marketing activities?
Sephora virtual artist
With the Sephora Virtual Artist, You can star in your own tutorials, get a
virtual makeover, and communicate more freely with your pals about
your passions.
• Sephora Virtual Artist has seen 200 million shades tried on, and over
8.5 million visits to the feature
• 28% Uplift in AR makeup feature user adoption
• 48% Increase in overall AR makeup feature traffic
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9. MY
POINT OF VIEW
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AR will be the next biggest digital trend
• Due to media clutter, people tend to ignore or skip advertisements.
The novelty of AR marketing will capture their attention
• Due to the engagement nature of AR, customers will play around with
the product and it will pursue them to take further action
• AR will enable customers to personalize products and try them before
they purchase. Which will increase sales and reduce returns.
• AR will enable brands to capture GenZ customers who are difficult to
target by other modes of marketing
• Many brands that adopted AR technology emerged as the winners
during the pandemic

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Brands should be more careful about the AR experience
• Brand should be careful of the user experience of AR. Failure to develop a user-
friendly solution might bring negative sentiments to the brand
Example: Amazon – hair coloring at Amazon Salon got negative reviews
• Brands need to manage the level of engagement with the technology to avoid
harmful behavior
Example: people hurting themselves while playing
Pokemon Go