Augmented reality (AR) technology is increasingly being used by businesses across various industries, from gaming and entertainment to healthcare and advertising. However, the cost and complexity of creating AR experiences remain a challenge for small businesses, while the success of AR glasses in advertising will depend on
the type and aggressiveness of the advertising, as well as users' willingness to have permanent advertising in their field of vision. Despite these challenges, AR has proven to have a significant impact on customer engagement, behavior, and sales, making it a valuable tool for brands and retailers.
AR for All: How Augmented Reality is Revolutionizing Mobile Advertising Augmented
reality (AR) is a technology that integrates digital information with the real world in real-time. It can be used to visually change natural environments or to provide additional information to users, creating a blended experience where digital and 3D components alter the user's perception of the real world. AR can be delivered through smartphones, tablets, glasses, and even contact lenses. The technology requires hardware components such as a processor, sensors, a display, and input devices. AR apps are written in special 3D programs that enable developers to tie animation or contextual digital information in the computer program to an augmented reality marker in the real world. AR is not just limited to gaming or entertainment, it is also used in many
industries including healthcare, public safety, gas and oil, tourism, and marketing. One of the up-and-coming trends in mobile advertising AR is WebAR, which is technology in web browsers that can facilitate virtual try-on experiences and is already in use by makeup and jewelry companies. AR manuals are another tool being used to capture the attention of customers and assist in learning techniques or skills at no cost. According to Jason Yim, Founder and CEO of TriggerXR, AR is effective in mobile advertising because it collapses the sales funnel, providing consumers with an engaging and immersive experience, informative product details, virtual try-on, and a purchase option through a single build. AR try-ons can provide 2x to 11x better conversion rates than traditional media. This trend is growing and adoption will continue to grow in 2023 and beyond. While AR has many benefits, it also faces several challenges. One of the biggest challenges is the cost and complexity of creating AR experiences. AR experiences require specialized 3D software and can be computationally intensive, making it difficult for small businesses to implement AR. Additionally, AR experiences are only effective when they are relevant and engaging to the user, which requires a
deep understanding of the target audience. Meta is currently attempting to catch up with Snapchat's success by adding augmented reality (AR) to its platform. Alex Himel, the vice president of AR at Meta, believes that the metaverse could generate more revenue per user than modern social media. To achieve this, Meta plans to sell combinations of virtual goods, optional add-ons like cloud
backups, and AR advertising. Himel is confident that Meta can run a very good ads business and that the company's ability to track conversions should be close to 100 percent. To achieve its goals, Meta needs more people in headsets. Himel sees the potential for nearly two billion headsets to be sold annually and several hundred million smartwatches. Meta's strategy involves two pathways:
high-quality products and low-cost products. Meta already uses this strategy with its Quest line. The Quest 2 is more affordable and sells more headsets, while the Quest Pro has a higher price point and offers a better experience. Meta plans to release two product lines in 2027, one highly sophisticated and the other less expensive.
The success of Meta's AR glasses will depend on the type and aggressiveness of the advertising. Unlike VR headsets, AR
glasses are meant to be part of users' everyday lives and to be worn all the time. The willingness of many people to use such technology could be greatly reduced by permanent advertising in their field of vision. However, Meta believes that there is a "huge business" in this area, and the company plans to revolutionize the advertising industry, just as smartphones did. AR has become one of
the most widely used tools in marketing campaigns, and more and more brands are betting on experiential marketing. AR turns out to be their perfect ally due to the great impact it generates. According to the Snap Consumer AR Global Report 2021, 74% of consumers worldwide expect to make even more use of AR in their everyday lives in the next five years. This effectively translates into a redefinition of brands' digital strategy as well as user experience. In a recent study published in the Journal of Marketing, conducted in partnership with an international cosmetics and beauty retailer, researchers have found that the use of augmented reality (AR) technology in online settings can have a significant impact on customer engagement, behavior, and sales. The retail partner adopted AR technology in its mobile app to allow customers to virtually try on makeup products and tested it
in physical stores to provide a more convenient option for shoppers. The study aims to provide answers to some crucial questions that brands and retailers face: How does customer product sampling behavior differ with AR? Can AR increase revenue? And how does the impact of AR differ across customers and brands?
The study found that product sampling behavior is different with AR. Researchers conducted an in-store field study to observe how shoppers engaged
with AR in a natural setting. The study found that shoppers who sampled lipsticks on the AR interface spent nearly 50% more time at the sampling fixture than those who used product testers. Furthermore, they sampled 7.5 times more products on average and sampled 1.8 times more lipsticks on average among the 16 featured lipsticks. Additionally, they sampled 13 non-featured lipsticks on average, indicating that AR encourages shoppers to try more products, making the sampling process more
convenient than physical product testers.
The study also found that AR increases revenue. Researchers established a direct link between the products customers tried using AR and those they eventually purchased. The study analyzed browsing activities of over 160,000 customers over a 19-month period for more than 800,000 mobile app sessions. They found that customers who used AR spent more time browsing, viewed more products, and had a 19.8% higher
likelihood of making a purchase during the session than those who did not use AR. The results suggest that AR can help businesses increase revenue.
The impact of AR differs across customers and brands. The study found that AR usage has a stronger influence on purchases for customers who have never purchased a specific product from an online channel. Furthermore, AR has a greater effect on customers purchasing from the product category for the first time.
The study also found that AR usage has a stronger influence on purchasing less popular brands and less mainstream products. These findings suggest that customers feel more comfortable making riskier purchases when they can try them using AR. Thus, AR may be able to help businesses stimulate demand.
The study's examination of the distribution of sampling activity revealed interesting findings. The distribution of sampling activity for product testers was
concentrated on two lipsticks from a specific brand, indicating that shoppers tend to focus on only a few key products and brands. In contrast, sampling activity was more evenly distributed across the 16 featured lipsticks when shoppers tried them using AR. Therefore, products and brands that are less popular may benefit more from AR due to the increased sampling activity. Augmented reality
(AR) is a powerful technology that allows the integration of digital information with the real world. AR has many applications, ranging from gaming and entertainment to healthcare and marketing. AR experiences require specialized software and hardware components, which can make it difficult for small businesses to implement AR. However, the potential benefits of AR are significant, as demonstrated by the success of Meta, which plans to revolutionize the advertising industry with its AR glasses.
Brands are betting on AR to redefine their digital strategy and improve the user experience, as evidenced by the findings of the recent study published in the Journal of Marketing. The study suggests that AR can have a significant impact on customer engagement, behavior, and sales. With the growing adoption of AR, we can expect to see more businesses and industries embracing this technology in the coming years.
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All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
Conversational AI is a technology that allows machines to communicate and have conversations with humans using artificial intelligence and machine learning. This technology can understand sentiment, answer questions, and mimic human conversations. Chatbots are an application of conversational AI, but not all
chatbots use conversational AI. Conversational AI works through machine learning, natural language processing, and natural language generation. Examples of conversational AI are virtual assistants, text-to-speech tools, and social listening and monitoring tools. Conversational AI has benefits like saving time, providing data-driven insights, driving purchases, finding best-fit customers, and conducting brand monitoring. However, there are also challenges like the importance of human
understanding in certain situations. Allbirds, the eco-friendly sneaker brand that became popular in Silicon Valley, is facing a critical moment as it tries to recover from a lackluster expansion into new categories such as running shoes and apparel. The company reported its first-ever quarterly sales decline during its fourth-quarter
earnings report and warned of a potential revenue drop of up to 28% this quarter. To revive sales, Allbirds is taking cues from Airbnb by reducing overall marketing costs and focusing on brand building. The company's chief brand and product officer, Kate Ridley, expressed admiration for Airbnb's work in this area. Twitter is reportedly planning
to remove its free access tier and increase prices significantly for its API, with the lowest pricing plan costing $42k/month, according to leaked documents. This move follows Elon Musk's tweet that Twitter's free API has been "abused badly" and hinted at a new paid plan. This could potentially drive out useful apps that cannot afford the new plan. However, Twitter has launched an 8-episode educational series on "creating unskippable video ads," which could help improve video ads and
boost campaign performance. This could be a good time to try more ads on the platform as the current situation might make buying ads on the platform cheap. Elon Musk, in remarks at a Morgan Stanley conference, said that Twitter's advertising business was not considering relevance in advertising until three months ago. Musk said that
improving the relevance of ads served on Twitter was the most important factor in boosting its core advertising business. He also thanked advertisers, including Disney and Apple, that have stuck with Twitter throughout his rocky takeover. However, since taking over the platform, Twitter has suffered a mass exodus of top brands, and there are doubts about whether the platform can stay online due to outages and user headaches. Musk has also made controversial remarks, including mocking a Twitter
worker with a disability who asked if he had been laid off. Playboy magazine, which stopped printing in 2020, is set to be relaunched later this year as a digital publication that will feature young creators posting both adult and non-adult content. The revamped publication aims to offer an "elevated" alternative to OnlyFans and promote
"creative freedom, artistic expression, and sexuality." While the first cover features a creator in a pose that does not reflect the values of the MeToo movement, it remains to be seen how younger, politically correct readers will respond to the product. Playboy was once the most lavishly designed print magazine in the business, but fell victim to rising costs and shifting tastes. The collapse of Silicon Valley Bank (SVB) is causing setbacks for some retail organizations, with Toy e-commerce startup Camp cutting prices to fund its continued operations after much of its money was tied up in the bank failure. Meanwhile, Etsy has warned some of its sellers that their scheduled deposits may be delayed. However, other retailers, such as Poshmark, are not anticipating major problems, with the marketplace saying the SVB fallout
would have no impact on its users. The Department of the Treasury, Federal Reserve and FDIC have said “[d]epositors will have access to all of their money starting Monday, March 13," and that no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. Infogain, a Silicon Valley-based digital platform
engineering services provider, has appointed Neha Kathuria as its new Chief Marketing Officer (CMO). Based in London, Kathuria will be responsible for spearheading Infogain's brand, demand generation, and communications functions, as well as driving the strategic brand vision and leading marketing ideation and execution. She brings extensive experience in brand transformation, positioning, and go-to-market strategy, having served on global marketing teams at Infosys and Genpact, and
most recently, as Global Head of Marketing at LTIMindtree. Kathuria will report to CEO Ayan Mukerji. Advertisers are turning to automation technology, such as Google's Performance Max campaign tool, to create more cost-efficient campaigns across all of Google's channels. Ginny Marvin, Google Ads' product liaison, has provided best practices for
creating and measuring Performance Max campaigns, including picking conversion goals, choosing the right budget and bid strategy, and adding audience signals. Advertisers should also evaluate and optimize their performance, focusing on performance metrics that align with their bid strategy, comparing conversion performance before and after adding Performance Max, and using asset reporting to gain insights into which creative assets are performing well. New features include budget pacing
insights, uploading a feed of page URLs for Final URL expansion, and account-level negative keywords, while asset group reporting and campaign-level brand exclusions are coming soon. Ecommerce is a rapidly growing industry that has reached over $4.9 trillion in global retail ecommerce sales in 2021. It is crucial to scale ecommerce businesses to
maintain their success and growth. Some effective marketing strategies for scaling ecommerce brands include search engine optimization (SEO) and content marketing, social media advertising, influencer marketing, and email marketing. Preparing for scaling ecommerce business requires careful planning, knowledge, financing, and preparedness to address challenges, including fast-loading ecommerce platforms, high-quality and informative content, building backlinks from reputable sources,
targeting a large audience through social media advertising, partnering with influencers in the industry, and using email marketing to nurture leads and increase engagement and conversions. Unik Media Group (UMG), a digital performance marketing agency, was recently awarded the "Super Affiliate of the Year" at the Affy Awards in January 2023.
The founder and CMO of UMG, Carlos Corona Jr., was recognized for his exceptional performance in the affiliate marketing industry. The Affy Awards is an annual event that celebrates the best and brightest in the industry and provides networking and learning opportunities for industry leaders, influencers, and top performers. UMG hopes to leverage this award to drive its company further towards success in the years to come. Amperity, the enterprise customer data platform (CDP) provider, has announced that MillerKnoll, a furniture and home decor brand, has selected Amperity to enhance the value of its omnichannel data and deliver personalized customer experiences. With Amperity, MillerKnoll will unify its customer data and utilize AI-powered technology to identify cross-channel behavior and content affinities to drive
personalized shopping experiences. MillerKnoll will also benefit from enterprise-scale identity resolution and audience segmentation, empowering it to build retargeting, lookalike, and suppression campaigns. Living Proof, a science-based hair care brand, has partnered with immersive e-commerce platform ByondXR to host a virtual storefront that
allows customers to not only shop for products, but also explore the brand's research and development lab, take an AI hair quiz and visit the Living Proof salon. Alexis Tedesco, the brand's chief marketing officer, said that the strategy behind the storefront is to help customers identify the hair care regimen they need, with the virtual consultation being a priority. Living Proof's hair quiz, which was launched in partnership with AI platform Revieve in 2022, pairs front-end
personalization with a diagnostic tool that assesses hair needs via a selfie submitted by the consumer. The brand reports a 22% average order value increase for customers who take the quiz versus those who don't. Microsoft's Bing Search may replace its traditional search with Bing Chat responses "ASAP", according to Mikhail Parakhin, CEO of
Advertising and Web Services at Microsoft. Responding to a user's tweet about the use of old technology and crowdsourcing for Bing Search answers, Parakhin hinted that new UI and Bing Chat answers would replace them. Bing Chat uses artificial intelligence and natural language processing to provide more conversational and personalized answers to users. Parakhin also mentioned that Bing is working on improving SERP-Chat synchronization, a tricky interaction that results in bugs. |
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