In the dynamic world of out-of-home marketing, the fusion of Artificial Intelligence (AI) and Augmented Reality (AR) is rewriting the playbook on creating immersive, intelligent and personalised campaigns. The use of AI in VR and MR is growing rapidly. FutureDataStats forecasts market size growth of 36.5% (CAGR) between now and 2022 and 2030.
Augmented Reality (AR) overlays digital content onto the real world while AI uses data processing that mimics human intelligence but on a massive scale; augmenting and accelerating human decision making and creativity. Together, AI and AR can create immersive and highly personalised experiences that forge a deeper connection between brands and consumers.
This article explores the combination of AI and AR, explaining how these technologies are reshaping marketing for brands. From more immersive, personalised user experiences to real-time decision-making, we’ll delve into the transformative influence of AI-driven AR in the location-based advertising landscape.
Fusing AR’s Immersive Capabilities with AI’s Intelligence
In advertising, location is paramount. According to a recent white paper by PitneyBowes, over 80% of the data stored about consumers is location based. Location demonstrates intent and therefore has a value that demographic and attitudinal data cannot match. Small businesses leveraging location intelligence in outdoor adverts see significant growth – up to 85% in customer base and 83% in engagement rates (Moving Walls via Forbes). Meanwhile AR experiences augment outdoor advertising by turning passive content into interactive experiences, encouraging users to spend more time and engage more actively with the content.
Businesses can augment and amplify the impact of their outdoor advertising, by using both analytical and generative AI. Analytical AI can process data in real time and recognise patterns in that data. This means it can take data such as location, clicks or conversational inputs and use it to predict user behaviour and make decisions. AI can react to a far wider range of user inputs than could ever be anticipated by traditionally programmed software. Generative AI can create all sorts of content by responding to the inputs it receives and its learnings from the vast sets of data it has been trained on.
For example, an AI powered chatbot triggered from an outdoor advert can understand the natural language of a passerby and respond in kind, and it can use generative AI to create imaginative and interactive 2D and 3D AR content that is applicable to the conversation and the location, on the fly. A consumer might approach a billboard to request a local coffee shop to showcase their menu. If the weather is cold, a list of comforting warm drinks might be displayed on a virtual billboard but switch to refreshing, chilled drinks when asked by the consumer. Alternatively, a consumer could scan a QR code on an advert and engage in a conversation about a particular product with an AR Avatar. The combination of generative AI and AR technologies could help the consumer visualise the product, providing an immersive preview before making a purchase. This would work for more abstract ideas such as travel and tourism as well as physical products – immersing yourself in an AI/AR created holiday experience sounds pretty good to us!
AI and AR take us a long way from static billboards. Using AI and AR in outdoor media transforms previously passive content into truly interactive and personalised experiences..
The Benefits of Integrating AI in AR
The integration of AI and AR in marketing is pivotal for several reasons:
- Personalisation & Enhanced User Experiences: AI analyses user environments and behaviours, enriching AR advertising for personalised and immersive experiences. Tailoring AR marketing experiences based on individual preferences ensures maximum resonance.
- Real-time Decision-making: AI’s ability to process data in real-time allows AR advertising to adapt swiftly to changes, creating dynamic and context-aware campaigns ensuring promotions and recommendations stay relevant.
- Efficient Data Processing: AI assists AR marketing in interpreting data from sensors and cameras, resulting in smoother and more accurate experiences that captivate audiences, seamlessly integrating digital content with physical items in AR marketing.
Can we trust AI?
AI often raises privacy concerns because of its intense use of data and ability to learn and adapt when we interact with it. People may feel less in control of their own decisions as AI learns how to persuade more effectively. Although these privacy concerns are valid, the advertising industry has been taking steps to address them through data encryption, transparent user consent, and data minimisation, all in compliance with data protection regulations. Advertising has always sought to influence consumers but using AI and AR together gives us the opportunity to do so in a way that is useful and relevant as well as entertaining.
As we all know, however, AI doesn’t always get it right. Amazon recently got caught out using AI product descriptions which clearly hadn’t been proof-read. AI is still immature but the learning curve is rapid, and as marketers it’s important we understand and experiment with AI and AR so that we are ready to exploit the opportunities it gives us.
The Opportunity
The integration of AI in AR marketing is set for exponential growth. 2024 will see the launch of game changing new devices such as Apple’s VisionPro and ever more AI-driven content creation. As technologies advance, marketers will wield innovative tools to create personalised, exciting, and immersive campaigns. The combination of AI and AR in marketing promises a revolution in consumer engagement which will redefine consumer-brand interactions, offering a future of captivating and context-aware advertising.
Interested in finding out more about how you can use Augemented Reality and AI in your marketing? Check out our AR Immersive Studio page and get in touch with our experts.
