How Augmented Reality can be used in Retail & Experiential Marketing

Global advertising and marketing industry is gung-ho about the possibilities of Augmented Reality (AR). Augmented Reality applications, which use location and imaging functions on advanced handsets to provide mobile services will get more popular more devices are capable of using AR, and more applications become available.

According to Juniper’s Mobile Augmented Reality Report, “initially most AR application revenue will come from location-based search, although AR-enabled games will be first to create serious revenues, followed by mobile enterprise solutions from 2012 onwards. Juniper Research is predicting that the market for Augmented Reality (AR) services will reach $732 million by 2014. AR applications will likely focus on AR apps for location-based search, games, lifestyle and healthcare, education and reference; multimedia and entertainment; social networking, and enterprise, with revenues generated by initial fees like paid for downloads, incremental fees including subscriptions and advertising. At present most mobile devices do not have all the necessary features for AR, such as camera, GPS, digital compass, tilt sensors and broadband connectivity, but with the launch of more and more handsets that include such functions, AR is expected to become more common.

In the recent times, we have seen numerous examples of some of the best campaign innovations from renowned brands. Experts opine that it will change the entire definition of digital media advertising and marketing. Most of the support and opinion is for leveraging Mobile and Web as the obvious platform. But as Seth Solomons, Chief Strategy Officer, Digitas says,

“Digital media is not only Web and Mobile but all technology gadgets that can be used for interaction and communication”.

I recently visited a shopping mall in Gurgaon, near New Delhi and I was amazed to see the use of digital signages, billboards and LCD screens all over the place. No doubt, these digital interactive kiosks and screens are innovatively leveraging the buzzwords of today’s marketing game mantra – “Be interactive and engage your customers”. And suddenly a popular quotation from my company’s President & Co-Founder Kanika Mathur flashed in my mind

“80% of purchase decisions are due to the influence at the point of sale”

In tune with what Seth said, I strongly feel that scope and horizon of augmented reality can be leveraged beyond the obvious platforms and can be easily extended to these retail outlets i.e. Point of Sale. An interesting and innovative campaign based on Augmented Reality can make a huge impact and easily influence the purchase decision of the consumer within no time.

I did some research and found that companies have already started experimenting with AR at their retail points. Some of the most interesting examples I could source are:

Cisco Augmented Reality @ retail fitting rooms

Hugo Boss

Animated Lego Digital Box

Hand from Above, a joint co-commission between FACT and Liverpool City Council for BBC Big Screen

Zugara’s online shopping

Companies like YDreams have created several interesting marketing and advertising examples based on AR.

So, what all can be used at the Retail POS

Basically any screen that can be connected with a computer and a webcam.

1. Existing multimedia screens like kiosks, billboards, LCD screens, digital signages, storefront displays etc
2. Digital marketing materials such as brochures, cards, leaflets etc

I’m hoping in the next few months, we will definitely see Augmented Reality enabled digital screens not only of big sizes but also handheld devices.

And, how advertising & marketing agencies can leverage AR at Retail POS

1. Experiential Marketing (Product Demos & Exhibitions, Shopping Assistance, Trial Rooms, Mall or Outlet Navigation)
2. Event & Promotion Marketing
3. Large interactive screens and kiosks etc

I would be eagerly waiting to see innovative campaigns from hardcore below the line (BTL) marketing and advertising agencies that would leverage Augmented Reality in their communication with the consumers at retail point of sale…

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