AR ads or Augmented Reality ads have existed in the market for a few years now, the earliest dating back to 2011. It was often used as an experimental form of advertising to create a new and engaging way to interact with the audience. However, new developments in the technology sector have pushed the limits of what’s possible. These developments made many people believe AR ads are the future of advertising.

Across the world, we’re seeing AR becoming a step in the advertising strategy of most major brands. There is a good reason why the brands are doing this as well as the market for AR ads is only going to grow in the future.

Augmented Reality has existed for a while now but recently, it’s got a new lease of life. As companies are gravitating to this technology and learning how to use it, you might be asking what an AR ad is. This article goes into detail on that, telling you about the technology behind it and why there is a surge of interest in it in 2023 and beyond.

What is augmented reality or AR?

Augmented reality or AR is the practice of displaying digital information over people’s real-time view of people, spaces, or objects in the real world. People then interact with these realities through a digital screen, typically a phone screen. Integrating augmented reality into regular advertisements creates a whole new way for brands to reach out to their customers.

This of the following is an example of AR advertising. Many brands display their QR codes in their store. When you use your phone to scan these codes, it opens up a virtual dressing room. Here, you can try on different items the store has in stock and check your look. Once you’re satisfied with your choices, you can go ahead and make a purchase.

The need for AR advertising in today’s world

In a perfect world, an ad would capture the audience’s attention with ease. However, every ad today is one in a thousand. Worse still, every ad is competing to be heard over the other. Hence, the brand experience takes on a vital role in consumer communication.

Augmented reality overcomes this problem in many ways. For starters, AR is immersive by nature. The technology helps customers enter a world created by the brand. Augmented reality helps your audience experience the brand in new ways. It also helps you create lasting and emotional connections with the audience.

Secondly, AR is highly interactive. Pew Research states that 78% of people felt that looking at a product in real life was somewhat or extremely important to them. For years now, consumers have sacrificed this ability when they shop online. However, the interactive qualities of AR provide consumers with that basic product experience. Now, the customer can try before they buy. This mindset applies to everything from furniture to clothes. The effects of this approach are highly evident. Another study shows that interactivity plays a significant role in brand recollection. It also enhances the brand perception and makes it more credible, novel, and useful.

How will AR shape advertisement campaigns in the future?

AR will be a part of a brand’s storytelling strategy

Marketers will look at how AR can tell a brand’s story. Ads will trend towards experiential marketing and the focus will shift. Now, the focus will be on inviting the audience to immerse themselves in a business story.

Power will go to the consumer’s hands

AR ads will be made such that an individual can initiate an interaction. Here, the user remains in control over when and where the AR layer is activated. Having control of the experience helps make users feel better about the AR content. It also makes them more likely to explore the ad’s AR capabilities. The more time spent on the ad interacting with it, the higher the ROI.

The AR experience adds value

Marketing departments will create more immersive and functional experiences. With the right approach, AR can bring in greater value than a regular Ad. It changes the way consumers engage with products and helps inform the purchasing process.

AR ads will become accessible as time goes

The widespread usage or adoption of AR ads means the entry barrier will decrease. What this translates to is reduced costs. Businesses with in-house apps can incorporate AR into their existing platforms. Ultimately, it will lead to any brand having the ability to introduce AR ads and features to their customers.

Brands will be embedded in our daily lives

AR ads will not be held back by things like location. Now, a person can interact with the ad no matter where they are in the world. AR features that provide value to a customer become part of their daily routine. People are more likely to use something if they get more functional benefits from it. Greater brand familiarity changes the consumer relationship from transactional to emotional. Likely, AR ads will slowly become a part of daily routines as many consumers see the value in using AR.

Challenges to AR advertising

Technical limitations

Augmented reality often requires powerful hardware and software capabilities. Not every consumer has the latest smartphone or device that can handle complex AR experiences. Departments will have to get creative with sharing their ads with the audience.

Development costs

Creating engaging, high-quality AR content is an expensive undertaking. The expertise, tools, and technology required for AR development might be inaccessible for most businesses. This problem is especially true in the case of small businesses that do not have the capital needed to obtain what they require.

Privacy concerns

Augmented reality requires the content to access camera feeds and sometimes even the user’s location. These requirements will certainly raise concerns about privacy among users. Such users will be hesitant to engage with AR content if it means giving up sensitive data.

Education and awareness

Many consumers are unaware of AR or have misconceptions about the technology. Brands face the uphill task of first educating the public before sharing the content with them. Many brands will avoid it as the initial costs yield little to no return.

Adoption rate

Younger generations will be quick to adopt and even embrace AR advertising. Conversely, older generations might be doubtful, perhaps hesitant towards AR ads. This mindset can often negatively impact the reach of AR campaigns.

Conclusion

Technology is evolving with every day that passes. AR ads are the ideal next step in the evolution of digital advertising. The growing popularity of AR is one reason why most companies are flocking to it. They hope to leverage the power that augmented reality brings and enjoy the benefits.