August 22


The Benefits of Augmented Reality in Marketing in Business

By Hanson Cheng

August 22, 2023

  • minute read
  • Last Updated on August 22, 2023 by Hanson Cheng

    Augmented reality, or AR, is a technology that enhances real-world experience through computer-generated sensory input. Technology has rapidly found its way into various industries and significantly influenced the way we go about our daily activities. In the marketing world, the use of augmented reality has proven to be a game-changer that has sped up the transformation of the sector in recent years. This article delves into the benefits of augmented reality in marketing and highlights how technology has impacted the industry positively.

    How Augmented Reality (AR) Technology Works

    Definition of Augmented Reality

    Augmented Reality (AR) is a technology that combines the virtual and physical worlds, allowing users to enhance their real environment with computer-generated sensory input. It is a means of superimposing digital objects onto real-world surroundings using devices such as smartphones or AR headsets. This technology has dramatically transformed the way we interact with digital content and has become increasingly popular in recent years. AR has many applications, both commercial and non-commercial, and is rapidly advancing in a variety of industries.

    AR uses sensors, cameras, and algorithms to detect and track the user’s environment and then overlays digital images, sounds, or even haptic feedback to enhance the real-world experience. Unlike virtual reality, which immerses users in a computer-generated environment, augmented reality simply adds digital elements to the real world. AR has the potential to reshape many industries, from retail and marketing to healthcare and education. By leveraging AR technology, businesses can create more engaging and personalized experiences for their customers, which can lead to increased brand awareness, customer loyalty, and, ultimately, sales.

    The concept of AR has been around for several decades, but it was not until the development of smartphones that AR became more widely accessible. The US Air Force developed the first AR application, known as the Virtual Fixtures system, in the early 1990s. Since then, AR technology has evolved significantly and is now used in a wide range of consumer products and applications.

    Overall, AR is a powerful technology that is changing the way that businesses and consumers interact with digital content. By enhancing the real environment with digital objects, AR has the potential to create more immersive and engaging experiences that can drive customer engagement and sales. As AR technology continues to advance, we can expect to see even more innovative applications in a variety of industries.

    Brief history of Augmented Reality in Marketing

    Augmented Reality (AR) has existed for some time, long before its integration into the marketing industry. The initial concept of AR was developed in the 1960s and 1970s, although it wasn’t until the 1990s that researchers were able to create a practical application. The term “augmented reality” became popular in 1992 when researcher Tom Caudell coined the phrase while working at Boeing.

    Despite being around for a while, it wasn’t until recently that AR gained significant attention and popularity in the marketing industry. The first widely recognized use of AR in marketing was by Burger King in 2009, where an augmented reality campaign was used to promote a new product. Since then, several other companies have incorporated AR technology into their marketing strategies to create an immersive and engaging experience for their consumers.

    AR has come a long way and has evolved significantly since its inception. Early applications of AR were limited to military and healthcare purposes, but over time, AR has been integrated into a range of industries, including gaming, education, tourism, and marketing. Today, AR is a growing field that is expected to grow even more and become increasingly popular in the coming years.

    With advancements in technology and the increasing popularity of AR in various industries, it is only a matter of time before AR becomes a mainstream technology that is widely adopted by businesses and consumers globally.

    Benefits of Augmented Reality in Marketing

    Enhanced Customer Engagement

    Augmented reality (AR) is transforming the way marketers interact with their customers. One of the key benefits of AR in marketing is enhanced customer engagement. AR-enabled content allows customers to interact with brands in unforgettable ways never before possible. Unlike traditional advertising, augmented reality offers a fully immersive experience that cannot be replicated.

    By incorporating visual, audio, and tactile elements, marketers can create an engaging experience that stands out in a crowded market. AR experiences can be tailored to the specific interests of target audiences, making the interaction more personal and memorable. Brands can use AR to create interactive games, virtual product demonstrations, and even immersive storytelling experiences that allow customers to step into the brand’s world.

    With the rise of mobile devices, AR has become more accessible to consumers than ever before. Social media platforms like Snapchat and Instagram have already embraced AR, allowing users to add filters and effects to their photos and videos. This has created a new level of engagement, with users spending more time on these platforms and sharing more content with their networks. Brands can leverage these platforms to create AR experiences that can be shared by their followers, extending the reach of the campaign beyond their target audience.

    AR-enabled experiences can also improve customer loyalty and satisfaction. Providing customers with a unique and engaging experience makes them more likely to remember the brand and become loyal fans. This can lead to increased customer lifetime value and higher rates of repeat purchases. AR can also provide customers with a more comprehensive understanding of a product or service, reducing the likelihood of returns or negative reviews.

    Improved Brand Awareness

    One of the most significant benefits of utilizing augmented reality (AR) in marketing is that it can enhance brand awareness. AR marketing campaigns can showcase a brand’s products or services in an engaging and interactive way that captures the attention of potential customers. By using AR technology, businesses can introduce their brand in a unique and memorable way to their target audience, giving them a competitive edge.

    One way that AR can help with brand awareness is by creating immersive experiences that allow customers to interact with a product before making a purchase, which can increase the likelihood of a sale. Additionally, AR marketing can provide a superior level of personalization by tailoring the experience to the customer’s preferences and needs, which can help establish a positive opinion of the brand.

    Because AR technology is still a relatively new concept, utilizing it as part of a marketing strategy can also position a brand as innovative and forward-thinking, which can further enhance brand awareness. Overall, using AR technology in marketing can help businesses reach their target audience more effectively and engagingly, leading to increased brand awareness and, ultimately, greater success in a competitive market.

    Increased Sales

    A key benefit of implementing augmented reality (AR) in marketing is the potential to increase sales. AR technology allows businesses to create interactive, immersive experiences for customers, giving them a chance to experience products and services in new and exciting ways. By using AR, businesses can create engaging product demonstrations, allowing customers to see how a product looks or works in a realistic setting.

    This immersive experience helps customers visualize themselves using the product, making it easier to make a purchase decision. AR also enables businesses to personalize the customer experience by creating new and unique ways to interact with products. By using AR, businesses can create customized experiences that are tailored to the individual customer’s preferences and tastes. This personalization level helps build stronger customer relationships and increase loyalty over time.

    AR can enable businesses to streamline the sales process by reducing the amount of time that customers spend searching for products. With AR, businesses can provide customers with a seamless purchasing experience, making it easy for them to find what they’re looking for and make a purchase on the spot. Overall, AR technology has the potential to significantly increase sales, as it enables businesses to create unique and engaging experiences that can help drive customer conversions and build long-term loyalty.

    Better Customer Experience

    Augmented reality has rapidly become an essential tool for marketers to enhance customer experience. Through immersive experiences, augmented reality allows brands to create memorable and interactive touchpoints that seamlessly blend the digital and physical worlds. By leveraging augmented reality, marketers can deliver personalized, targeted content that resonates with their audience and drives engagement.

    This technology provides a new level of interactivity that traditional marketing cannot compete with, capturing the attention of consumers and increasing their dwell time. Furthermore, augmented reality offers customers the chance to experience products and services before making a purchase, creating a more informed and confident buying decision. This leads to improved customer satisfaction and loyalty.

    Additionally, brands can use augmented reality to provide post-purchase support, helping customers with product assembly, troubleshooting, and installation. This level of support and assistance creates a lasting impression with customers, improving their experience and raising the image of the brand.

    Cost-Effective Marketing

    Augmented reality (AR) presents a cost-effective means of marketing to potential customers. By using AR, businesses can showcase their offerings to a broad audience without having to invest too much money in marketing. AR marketing campaigns can be easily executed on social media platforms, mobile applications, and websites, thanks to the technology’s portability and flexibility.

    Unlike traditional marketing methods, which can be costly and time-consuming, AR marketing can provide customers with an immersive and interactive experience at a fraction of the cost. This cost-effectiveness is especially beneficial for small and medium-sized businesses, as it allows them to compete with larger corporations on a more level playing field.

    In addition to cost-effectiveness, AR marketing can also provide businesses with measurable results. With the use of analytical tools, businesses can track user engagement and identify what is working and what isn’t. This data can then be used to optimize future campaigns and improve overall engagement. Knowing what resonates with customers and adapting accordingly is a significant advantage for businesses seeking to remain competitive in today’s ever-changing market.

    AR marketing can also provide customers with a unique and memorable experience, leading to increased brand loyalty and word-of-mouth marketing. Customers who have a positive experience with a brand are more likely to return for future purchases and recommend the brand to others. By incorporating AR into marketing efforts, businesses can create an immersive experience that stands out in the crowded digital landscape. This can increase brand awareness and customer engagement, ultimately leading to increased sales.


    Future of Augmented Reality in Marketing

    Emerging Trends

    The use of augmented reality (AR) in marketing is an emerging trend changing how businesses interact with customers. AR technology allows marketers to create interactive and immersive experiences that engage customers in a meaningful way. This trend is becoming more popular as the technology becomes more accessible and affordable.

    One of the key benefits of AR technology in marketing is its ability to enhance customer engagement. With AR, customers can interact with products and services in a way that is not possible with traditional marketing methods. For example, an AR app can allow customers to see how a piece of furniture would look in their home or how a new car would look in their garage. This type of interactive experience not only engages the customer but also allows them to visualize the product in their own environment, making it more likely they will make a purchase.

    Another benefit of using AR in marketing is the ability to provide personalized experiences. With AR, marketers can use customer data to create customized experiences that resonate with individual customers. For example, an AR app could suggest products based on a customer’s past purchases or preferences, making the experience more relevant and engaging.

    AR technology can also be used to create immersive brand experiences. By using AR, marketers can create experiences that allow customers to interact with a brand in a new and exciting way. For example, an AR experience could allow customers to explore a new product or service in a virtual environment or to interact with branded content in a new and engaging way. This type of immersive experience can help build brand loyalty and increase customer satisfaction.

    Finally, AR technology can help businesses stand out from the competition. With so many businesses vying for customers’ attention, it can be difficult to differentiate oneself. AR technology provides a unique and innovative way to grab customers’ attention and stand out from the crowd. This can help businesses increase brand awareness, attract new customers, and increase sales.

    Potential Impact on Marketing

    The use of augmented reality (AR) in marketing has the potential to revolutionize the industry. AR technology enables marketers to create immersive and interactive experiences for consumers, allowing them to engage with products and brands in a whole new way. This technology can transform marketers’ communication with their audience, creating more impactful campaigns and driving sales.

    One of the major benefits of AR in marketing is that it allows brands to create experiences that are tailored to the individual customer. By using AR, marketers can create personalized experiences that engage customers uniquely and relevantly. This can help to build brand loyalty and increase customer engagement with a product or service.

    Another benefit of AR in marketing is that it can help to bridge the gap between online and offline experiences. AR allows consumers to interact with products in a virtual space, giving them a sense of how the product would look and feel in the real world. This can help to increase consumer confidence in a product, leading to higher sales and better customer retention.

    AR can also help marketers to gather valuable data about their customers. By analyzing customers’ interactions with AR experiences, marketers can gain insights into customer behavior and preferences. This data can then be used to develop more targeted campaigns and improve the effectiveness of marketing efforts.

    Overall, the potential impact of AR on marketing is significant. By creating immersive and interactive experiences that are tailored to the individual customer, marketers can improve engagement with consumers and drive sales. AR also has the potential to bridge the gap between online and offline experiences, gather valuable data, and create memorable brand experiences. As AR technology continues to evolve, it is likely that we will see more and more innovative uses of this technology in marketing campaigns.

    Opportunities for Marketers

    Augmented Reality (AR) has been making significant strides in the market, and marketers have started leveraging this technology to augment their marketing efforts. AR offers an exciting new way to create interactive and immersive experiences that engage users in a new way. The opportunities that AR presents for marketers are vast and varied, and it is not hard to see why companies are scrambling to get on board.

    One opportunity for marketers is the ability to offer product demos without having to set up an actual physical product. With AR, marketers can create a virtual product that can be experienced by users in a realistic way. This not only saves money but also offers an unmatched level of convenience. Another opportunity is the ability to offer virtual tours of physical spaces, such as hotels or real estate properties. By using AR, marketers can create a fully interactive and immersive experience allowing users to explore the property as if they were there.

    AR also offers new ways for marketers to personalize their marketing efforts. With AR, companies can offer unique and personalized experiences to different users based on their preferences and interests. For example, a fashion retailer could use AR to enable users to virtually try on different outfits and purchase those that they like. This personalized experience can be a game-changer for marketers and help them better connect with their target audiences.

    Lastly, AR also offers marketers the opportunity to create viral marketing campaigns that generate buzz and shares. By creating engaging and interactive AR experiences, marketers can encourage users to share their experiences with their friends and followers on social media, creating a ripple effect that can reach millions of people. This kind of marketing can effectively create brand awareness and drive sales.

    All in all, AR presents a myriad of opportunities for marketers, and it is only a matter of time before it becomes an essential tool in every marketer’s toolkit. With its ability to offer personalized experiences, virtual product demos, and interactive marketing campaigns, AR will undoubtedly revolutionize the way companies market their products and services in the future.

    Final Thoughts

    In conclusion, augmented reality is transforming the marketing industry in ways that were once thought impossible. The benefits of this technology are undeniable, allowing businesses to engage with consumers on a level never experienced before. AR enhances the overall customer experience by offering interactive, realistic, and engaging connections between products/services and consumers. By integrating augmented reality into marketing strategies, businesses can improve brand awareness, customer engagement, and sales conversion rates.

    AR marketing campaigns can also foster creativity and offer novel ways to showcase products like never before, leading to differentiation and competitive advantage. Furthermore, AR marketing campaigns’ versatility means they can be adapted to different contexts and platforms, allowing businesses to reach a larger audience across multiple channels. The technology creates a memorable and personalized brand experience that leads to customer loyalty and advocacy.

    Augmented Reality (AR) Benefits – FAQs

    What is augmented reality?

    Augmented reality is a technology that allows for an interactive experience that superimposes digital elements onto the real world through a smartphone or tablet device.

    What are the benefits of using augmented reality in marketing?

    Augmented reality offers a unique and engaging way to demonstrate products, increase brand awareness, create interactive advertising, and track analytics in real time.

    How can augmented reality be used in advertising?

    Augmented reality can be used in advertising by creating interactive product demonstrations, immersive brand experiences, personalized advertisements, and gamified marketing campaigns.

    What industries can benefit from augmented reality in marketing?

    Retail, tourism, entertainment, automotive, education, healthcare, and more can benefit from augmented reality in marketing.

    What are some common examples of augmented reality in marketing?

    Common augmented reality in marketing examples includes virtual try-on experiences for clothing and makeup, interactive display ads and product demos, location-based gaming campaigns, and 360-degree brand experiences.

    How can businesses measure the effectiveness of augmented reality in marketing?

    Businesses can measure the effectiveness of augmented reality in marketing by tracking engagement, time spent, and conversion rates, as well as gathering feedback from customers to improve future campaigns.

    Thanks For Reading!

    You can get more actionable ideas in my newsletter.

     I'll give you info on actionable ideas to grow and cool things that are getting me excited.  Enter your email and join us!

    Hanson Cheng

    About the author

    Living in Portugal with my wife and puppies.
    Scaling online businesses and sharing lessons learned on this website and in our email newsletter.

    Always happy to hear from you, so find me on Instagram if you want to say hi!

    {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}