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Augmented Reality: Transforming Marketing Strategies

Discover how augmented reality (AR) elevates marketing effectiveness, backed by Snap Inc. and MAGNA Global's research.

Introduction

Augmented Reality (AR) transcends the mere status of a buzzword. In the realm of brand building, it has become an essential marketing tool that every marketer ought to incorporate into their strategy. As the adoption of AR grows, marketers must understand its operational, timely, and contextual effectiveness within advertising realms compared to more traditional methods.

To demystify the usage of AR in marketing, Snap Inc. partnered with the Media Trials team at MAGNA Global Inc. to conduct extensive research into the genuine capabilities of AR advertisements, notably Lenses, and their influence on the consumer purchasing journey.

This research spanned five distinct markets: the US, Canada, Australia, Saudi Arabia, and France, engaging over 9,000 consumers and several high-profile brands, including Levi’s and The LEGO Group. The study examined various AR lens types — Shoppable AR Lenses, Gamified Entertainment Lenses, Interactive Entertainment Lenses — as well as tactics like World-Facing Lenses and Front-Facing Lenses, assessing their impact throughout the consumer purchase process.

The findings have been distilled into a comprehensive guide on how and why to utilise AR to enhance your brand on Snapchat.

“AR has been prevalent in the market and subjected to extensive testing, yet many questions remained about its precise role in a marketer’s toolkit,” explains Kara Manatt, EVP, of Intelligence Solutions at MAGNA. “The research indicates that AR not only provides practical utility and informs consumers about the brand more effectively than pre-roll video ads but also fosters deeper, more personalised connections with consumers.”

This series of papers delve into the effectiveness of AR ads versus pre-roll ads in cultivating brand identity across the consumer purchase journey.

The Role of AR in the World of Video

AR vs Pre-roll

The study validated that AR offers greater utility than pre-roll ads, presenting marketers with substantial opportunities to deepen consumer connections and distinguish their brands during crucial moments.

The findings highlighted that AR ads are as effective as pre-roll video ads in enhancing key brand KPIs such as awareness and ad recall and also in boosting purchase intent.

Moreover, consumers perceived AR ads as significantly more informative and useful than traditional pre-roll ads, and they reported these ads made them feel more connected and excited about the brands.

AR’s Impact Throughout the Purchase Journey

The research also explored AR ads’ impact at each stage of the purchase journey—from discovery through consideration to the final purchase. The influence of AR varied by stage, tailored to the specific needs and mindsets of consumers at each point, with those further along in their journey engaging more deeply with AR.

For marketers, this underscores that AR should be considered an “always-on” tool for building and amplifying brand messages, rather than just a highlight of a campaign or an additional feature.

In the early stages, AR ads captured broad audience attention with a 7% increase in Aided Ad Recall. During the consideration phase, AR helped brands appear more modern and distinct. At the decision-making stage, AR ads significantly impacted key metrics such as top-of-mind awareness and brand favourability, and even influenced active searches for the brand, aiding in cementing the final brand choice.

Effective Use of Various AR Tactics

Through evaluating different Snapchat Lenses and their impacts across the purchase journey, it became evident that each Lens type affects consumers uniquely.

Shoppable AR Lenses are most effective for those nearing a purchase, actively driving search intent and encouraging final buying actions.

Gamified Entertainment AR Lenses attract a wider initial audience and foster brand differentiation early in the consumer journey through interactive and engaging experiences.

Interactive Entertainment AR Lenses enhance memorability and brand perception by offering personalised interactions, with consumers perceiving the brand as more innovative or unique, depending on their journey stage.

World-facing AR Lenses, which interact with the environment, like viewing furniture in a consumer’s living room, resonate with consumers in the consideration phase by heightening purchase intent and brand relevance.

Front-facing lenses, on the other hand, enhance the brand image for those nearing purchase by adding a personal touch, increasing perceptions of brand uniqueness and relevance.

Marketers are advised to select specific AR formats based on their target audiences and desired outcomes, emphasising that a smart creative strategy is as crucial as the right media plan for successful AR deployment.

Insights on Ad Sequencing Within a Campaign

Integrating AR in Advertising Campaigns

The research also assessed different sequences of AR, Snap ads, and Commercials to ascertain their collective impact on brand perception.

It revealed the importance of integrating AR as a fundamental component of the advertising mix on Snapchat. Brands incorporating AR with other ad formats on Snapchat saw higher levels of purchase intent, brand preference, and associations with innovation.

Specifically, placing AR between videos within a campaign yielded the best brand outcomes, enhancing perceptions of cheerfulness and boosting brand excitement significantly. This positioning leverages AR’s ability to surprise and delight consumers, providing a unique engagement that enriches their experience beyond traditional video ads.

Conclusion: AR’s Essential Role in Marketing

The findings from this Media Trial have established core guidelines for integrating AR into

media strategies. Marketers should view AR as an amplifier of the brand message, rather than just an ancillary or standalone feature. Whether aiming to drive purchases with Shoppable Lenses or to attract new customers with Entertainment Lenses, the strategic deployment of AR can significantly enhance brand perception and consumer engagement.

Ultimately, using a mix of video and AR not only amplifies the impact but also strategically positions brands to succeed by enhancing consumer interactions with AR following initial video exposure.

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