Augmented Reality advertising

We are at a pivotal moment for marketers worldwide, with IAB Tech Lab CEO Anthony Katsur describing the need for advertising’s own ‘Great Reset’. Privacy regulations have been tightening for over a decade and Google is expected to finally phase out use of 3rd party cookies for Chrome users by 2025. Advertisers need to adapt to this change in attitude to consumer privacy and “determine how the industry can continue operations in a world without cookies” (Katsur). In essence, advertisers need to rethink how they reach their audience. Enter Augmented Reality (AR), which delivers better engagement and higher conversion rates than traditional digital channels. 

Augmented reality (AR) advertising is a transformative medium that holds the key to marketing in 2024. Here’s why:

1. The phase out of 3rd party cookies makes targeted advertising more challenging, and as a result location is becoming paramount. Unlike traditional display ads, which may struggle to discern user intent, AR ads use location-based targeting to deliver content that is highly relevant and contextual to a user’s environment. Marketers are able to reach their audience in the places that are most relevant to their product or service, for example, in a shopping centre, walking down a high street or being near a café or restaurant. This ensures that ads are not only seen but also appreciated by audiences who have demonstrated genuine interest. 
2. Personalisation is a cornerstone in marketing because individuals are more inclined to engage with content that resonates with them. Most personalisation has relied on demographic data and cookie tracked behaviour such as past purchases and browsing patterns. More advanced personalisation has attempted to discern interests and attitudes. Both have been driven by algorithms making assumptions about human behaviour. With AR, users can personalise their own experience by interacting with the AR content. Imagine a user viewing a 3D product in their own living room and selecting colours or changing its position. Or imagine a user viewing an advertisement for a beach holiday but switching the location from the Caribbean to southern Spain. AR offers the ultimate form of personalisation.  
3. AR advertising offers a dynamic and immersive experience that captivates audiences. By blending the virtual and the real world, AR ads have the power to capture attention and leave a lasting impression. A recent US study found that 32% of people who use AR do so for non-specific reasons such as simply liking it (Statista). 5G technology has amplified the impact of AR advertising by speeding up the delivery of more sophisticated digital experiences. 61% of 5G users expressed a preference for AR ads over traditional formats (Marketing Dive). This shift underscores the growing appetite for interactive and engaging content, making AR advertising an indispensable tool for marketers looking to capture audiences in an increasingly competitive landscape.

Marketers need a ‘Great Reset’ and by embracing AR advertising, they can not only adapt to the changing digital landscape but also thrive in it. With its unparalleled ability to drive engagement, exploit location, and encourage user generated personalisation, AR advertising is revolutionising the way we approach marketing.

Find out more

At Darabase, we specialise in harnessing the power of AR to transform advertising strategies and drive meaningful outcomes for our clients. With our innovative experiences and cutting-edge technology, we enable brands to create immersive campaigns that resonate with audiences. Find out more about our solutions here.