Augmented reality marketing strategies: The how to guide for marketers (full)

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Augmented reality marketing strategies: the how to guide for marketers

22/03/2011

Copyright © Hidden Creative Ltd

Foreword by Matthew Trubow, CEO of augmented reality developers Hidden Creative

As a marketer you might have heard of Augmented Reality (AR) and are curious about how to use it to create breathtaking marketing campaigns.

This curiosity is well placed as the latest industry statistics, published by Hidden, show that for digital marketing campaigns augmented reality delivers on average 55,000 unique users per month with onsite dwell times averaging seven minutes 45 seconds.

Or you might be one of the early adopters who are benefiting from these outcomes and are putting the technology to good use.

This document is useful to all levels of marketers. The first section cover the basics, such as what the technology is and how it can be used.

The second section looks into the commercial uses of AR and is a great place to discover world leading examples of the technology, statistics and other tips.

The third section takes a look into the future. In other words, how our lives may be shaped by AR.

If after reading all this content you are still unconvinced by the commercial uses of the technology, you should look no further than the iPhone application Word Lens which is already putting the technology to practical use and helping millions of users to translate Spanish into English.

This technology is not just a novelty, it has a huge variety of uses and this report will demonstrate them to you.

For more information please call us on +44 (0)161 236 8181 or visit hiddenltd.com

1Copyright © Hidden Creative Ltd

‘Enterprise apps with AR elements are expected to account for the third-largest proportion ofrevenues by 2015’Juniper Research, Mobile augmented reality

http://www.hiddenltd.com/

The completeaugmented realityguide for marketers

ContentsThe basics

The augmented reality opportunity for marketers

Key features of robust augmented reality technology

Possible marketing related uses

Ten creative ways to use augmented reality

Best practice

The future of augmented reality

Case study: ABB

Case study: The Gadget Show

3 - 4

5

6

7 - 8

10 - 11

12 - 14

15

17

18


‘Mobile augmented reality to generate 1.4 billion downloads by 2015 as major brands embrace the concept’Juniper Research, Mobile augmented reality

The basics Augmented reality for marketers

WHAT IS IT? HOW CAN IT BE USED?WHY SHOULD I CONSIDER USING IT?

OK, let’s get the definitions out of the way. Augmented reality is a term for a camera enhanced view of a physical real-world environment, where virtual elements are merged with the real-life scene creating a ‘mixed reality’ of virtual elements and the real world. The ‘virtual elements’, given their nature, can consist of anything. This could be 3D models, video, web information…anything. The point here is that your mind is the only boundary.

Imagine pointing your smart phone’s camera down the road and in return being presented with information or data relative to nearby interest points such as shops and attractions. How about entering a department store and having instant access to a guide to all the individual contents and a personal, virtual concierge that directs you to their location.

Another example might be you sitting at home in front of your webcam, trying-on augmented luxury watches. Lastly, how about bringing a brochure or other marketing document to life and putting your product in the hands of your potential client thanks to a 3D AR experience.

All this and far more is possible with augmented reality technology.

As a marketing and sales tool, the scope for augmented reality is endless. Any sales person will tell you that the ability to put a self-demonstrating version of your product in your client’s hand is crucial, but not always possible, or is it? AR makes it possible for clients to visualise any products regardless of size or location.

There is scientific evidence that shows by simply touching a product for a few seconds, an attachment is created that often leads to buying or even paying more for the item.

Marketing and sales teams assisted by augmented reality are able to achieve this type of connection. This is especially powerful as research into the psychology of sales indicated that people become personally attached to a product within the first 30 seconds of contact when presented with a physical or virtual item.

Augmented reality has a place in almost every business. It depends on how you communicate internal and external messages or reach out to your potential clients as to how you approach the use of AR.

There is nothing more conducive to a sale than putting your product or service right in the customer’s hand. The basis for the technology is to immerse the audience in the subject. Sticking to this core value will keep you on the right track when developing the idea for your experience.

The immediate uses come in many forms and are evolving quickly. For examples of commercial, industrial and consumer uses of augmented reality please turn to page 7.

Copyright © Hidden Creative Ltd 3

To use augmented reality all you need is a standard computer with webcam or a smart device such as a phone or tablet with a camera.

If using a more advanced commercial brand of augmented reality there may be a small download required when viewing the augmentation through a web browser. The download is typically less than 1MB and obtained and installed no differently than any other simple browser plug-in.

If viewing an augmented reality experience on a smart phone or tablet device, you will be required to download the application just as you would with any other application you might install on the device. There are no special configuration requirements and installation should be transparent to the user.

What tools or programs do I need?


The basics Augmented reality for marketers

Augmented reality is a fast growing technology and the ‘must have’ marketing tool which is helping transform the way we engage information. AR is already being used as part of marketing communication to help bring brand experiences to life; it has also been used to drive traffic to digital campaigns or as part of coupon or redemption-led sales promotion strategies.

Marketers are driving growth in AR and data from ABI Research has proven that the market for augmented reality will reach $350m (£218m) during 2014 - and that is just in the US alone.

Augmented reality has undergone a period of fast growth and the adoption of the first wave of market-based technology is now being used productively.

Recent research by Hidden Creative demonstrates just how marketers are embracing the technology. Fig 1. shows that events, conferences, brochures, online campaigns and pitches are the most popular uses of AR.

The technology has the ability to bring to life intricate architecture and engineering designs. In these markets, putting the product in the audience’s hand is typically costly, difficult, dangerous or impossible, but not when done through augmented reality.

Marketers are also using the technology to add a visual representation of the product or service to their collateral through AR, and consumers can access richer and more immersive information via their smart devices, laptops, PCs and webcams.


Opportunity The augmented reality opportunity for marketers

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8% 7% 3% 5% 16% 19% 2% 6% 16% 18%

Uses based on current adoption by major brandsFig 1.

A technology capable of ‘linking’ augmented content to practically anything... Using Natural Feature Tracking (NFT) or “marker-less tracking” means that practically anything can be used as a trigger for an augmented reality experience.

NFT recognises natural features in practically anything (packages, devices, structures, photos, patterns, and even the shape of the human head) and uses it as a marker to control an augmented reality experience.

Robust interactivity As augmented reality allows users to interact with the world around them, the technology provides a greater level of interactivity than any other digital marketing technology. This means the users can interact with products and the world around them, personalising their own experiences based on how they literally see the world. This interactivity has an added marketing benefit of allowing marketers and sales professionals to collate huge amounts of user data. Imagine knowing where in store your customers look and understanding their attention spans, while engineers can test models of complex components or structures for engineering faults or aesthetical issues.

Portability and mobile ‘on-the-go’ experiencesRegardless of the operating system, platform or device, experienced AR providers will be able to develop rich augmented reality experiences for PCs, smart phones and tablets. In so doing, marketers and salespeople can reach as wide an audience as possible by not limiting the platforms through which augmentations are accessed.

Measurable return on investmentEssential to any campaign is return on the investment, but how many marketing techniques are like AR and offer complete measurability?

ROI from augmented reality can manifest itself in many ways such as conversion to direct sales, dwell time, brand awareness and PR to name a few.

Business intelligenceOne of the most important things to consider is customer intelligence. Augmented reality experiences can be used to collate consumer data and other CRM insights, giving companies intelligence to further develop products and services.

There are many ways to induce the collection of customer data within an augmented reality experience. To achieve the best results you should ensure you work with a team that has the strategic and creative talent necessary to mix traditional digital marketing techniques within the experience.


Key features of Augmented Reality

ConsumerThe consumer audience is using AR to locate and visually digest information related to their wants and needs, no matter their location. People are able to obtain information and immerse themselves in an augmented experience. For example this might be a distant location (e.g. a holiday resort) or alternatively use the technology to inspect products or explore services wherever they are in the world.

CommercialCommercially, augmented reality is already being used as a way to visually present the content of a tenders or business proposals. The construction sector is using AR to review architectural drawings in the real world environment.

IndustrialIndustrial augmented reality is improving manufacturing and production processes, along with increased efficiency and quality. For example, augmented reality can provide the means to instantly visualise and inspect components for defects or other imperfections without the need for human intervention.

How AR is being used...


Industrial monitoring application courtesy of Hidden Creative

Word Lens developed by Quest Visual for the iPhone

Uses Possible marketing related uses

EVENTS, EXHIBITIONS AND ROAD-SHOW CAMPAIGNS Using augmented reality on large screens at events has yielded staggering results, often quadrupling the on stand dwell time. There is a massive amount of competition among exhibitors and creating an intriguing and immersive experience on your stand can draw record crowds and help build the new business pipeline.

INTERACTIVE INSTALLATIONKiosks or screens are another way to attract the right audience and allow them to immerse themselves in your product or service. Many products are disinteresting from the outside but become very interesting once you get beyond the surface.

WEBSITE & DIGITAL MARKETINGWith an average linger time of seven minutes, the advantages to using augmented reality on a website is obvious. Sales conversions, downloads or even total page visits increase as linger time increases. Being able to physically demonstrate your product or service conveniently over the internet will directly increase sales.

MOBILE MARKETING & M-COMMERCESmart phones and tablet devices are quickly becoming the new PC, and as of February 2011 more mobile devices have been sold than PCs and laptops. The expanded view and functionality that tablet devices provide make this an ideal platform for robust and immersive augmented reality experiences.


Uses Possible marketing related uses

POINT OF SALERetailers and FMCG brands are using augmented reality to bring to life point of sale. AR can be used as part of elaborate sales promotions and loyalty schemes helping drive footfall and sales at bricks and mortar outlets.


Fact sheets


1. Point of sale or in-store experiences that really stand outLego has implemented in-store kiosks that allow customers to hold a Lego product box up to a camera and see the item inside build itself into a virtual model of the product.

2. ‘Try before you buy’ with augmented reality experiencesKnauf Insulation used augmented reality to demonstrate their insulation products in real world situations.

3. Use of augmented reality searchAcrossAir and Yelp offer an augmented reality search mechanism that uses information from the internet and combines it with your phone’s compass and other geo-based sensors to overlay virtual information on your current real world scene through the phone’s camera lens.

4. Enrich tourism and leisure communications and experiencesFor the Radio One’s Big Weekend, people who did not get a free ticket were invited to log on to the Radio One website to taste a unique AR experience.

700,000 emails were received and from these 50,000 people clicked on the link to the BBC website and 12,000 watched an exclusive augmented performance of the Frattelis. 50,000 web visitors, resulting in 12,000 downloads in one week, 24% conversion rate.

5. Augment events and conferences to help delegatesAs our case study on page 17 shows engineering firm ABB wanted to create an immersive brand experience at one of its key trade shows with the aim of increasing dwell times and generating qualified new business leads.

They and other firms that have used augmented reality in this way have seen huge benefits with on stand dwell time and other KPIs.

Creativity Ten creative ways to use augmented reality


6. Drop traditional brochures in favour of something more innovativeCitroen created a special augmented reality brochure for the launch of their new model and distributed this during exhibition, via mailing and in POS.

For people who did not get the brochure, it was also possible to print the pages in PDF format directly from the website to discover 3D animations of the C3 Picasso.

7. Bring customer service or product manuals to lifeBMW uses augmented reality for training purposes. Engineers are equipped with eyewear that overlays virtual information specific to procedure used in the construction or repair of their automobiles.

8. Make augmented reality the “real life” gateway to online contentCoca Cola built a dedicated brand called “AVTR” to host experiences building up interest in the Avatar franchise and make a connection between the product and the film.

Total Immersion designed a digital play experience featuring the Samson helicopter, allowing the user to control the chopper like a remote controlled toy by using product packaging.

TI developed an unprecedented, intuitive physics system correlating the Coke Zero product as the key interface of the AR experience.

The experience could be triggered by 3D objects including bottles, cans and popcorn boxes, or by taking a photo of a product with a phone.

9. Bring your online campaigns to life in the “real world”Channel 5’s The Gadget Show wanted to explore innovative uses of technology within traditional outdoor advertising.

Providing a powerful tool of interaction for the Gadget Show’s existing fan base, Hidden created an augmentation featuring presenter Suzi Perry. Filmed against a green screen, Suzi revealed when and where viewers could catch the new series.

The idea was they could hold their very own ‘Virtual Suzi’ in the palm of their hand. The augmented reality team at Hidden transformed this footage into a 3D augmentation, which was to be hosted not only online but within the outdoor campaign.

The promotion created a large amount of online buzz, which culminated in the website benefiting from an additional 101,278 unique users.

10. Create winning pitches / tender collateral Eurocopter used AR to bring to life 3D models during complex new business tenders and presentations.

The result was 111 orders in two days for the new EC175 helicopter that was only a prototype at that time.


Forget about the technologyPut the technology to one side and think about business objectives and how you would like to apply strategic marketing thinking to the campaign. What is the situation or opportunity? Do you want to drive footfall, increase brand awareness, boost web traffic or accomplish something else? The role the technology plays should remain in the background and not cloud your thinking.

Creativity countsIn most cases it’s better if you don’t restrict the potential augmentation by suggesting a particular creative solution. Start by concisely outlining the campaign objectives and allow your augmented reality vendor to guide you through the creative process. If they know what they are doing they will help you by expanding your core objectives into a successful strategy.

Consider the processMany of the augmented reality experiences that vendors create require 3D elements, which like any other artistic matter is very subjective. Suppliers typically request reference material, for example product images or enginering drawings, rather than just relying on the clients’ thoughts or a writen brief. The timescale usually applied to average size projects is four to six weeks but projects can be created within tighter timescales.

Include evaluation metricsClearly you need to understand what the picture of success will look like but equally your AR resource needs to provide you with predefined mechanisms to measure this logically within the AR experience. An experienced augmented reality resource should include reporting and analytics of the performance of the experience as a standard featurefor your benefit.

Best practice What to take into account when considering augmented reality

If you have read the majority of this guide the chances are you now understand the technology. You might now want to consider augmented reality for your next project and are ready to invite AR vendors to pitch. The next three pages will outline initial project considerations, help you choose an appropriate augmented reality partner and give you killer questions to really challenge your potential supplier.


Choose a developer that is an official partner of an augmented reality technology providerWhen moving into a new and emerging area such as augmented reality, it makes sense to choose an experienced and trusted company as your partner. There are lots of agencies that have dabbled in AR, and even more that claim to offer AR as a service. Several of these companies have little or no experience and simply rely on a software supplier to build the augmented reality experience. Without firsthand knowledge, it is impossible for these organisations to supply you with the best the technology has to offer. Using resources of this nature can also lead to delays, excessive costs and sub ‘standard’ AR.

Source relevant case studies or proof that they have experience and are successfulIt might sound obvious, but case studies can show that you are getting a full consultancy service and more than just ‘technology.’ Companies need to know the value and anticipated effect of similar AR campaigns rather than crossing their fingers and hoping for the best. Case studies are a superb way to tell the client a story and to allow them to become familiar with the less obvious aspects of what AR has to offer, along with what should be considered when designing the experience.

Review the company’s credentialsAre they a technology focused organisation or is there a mix of true strategic marketing and creativity among their staff? Augmented reality is a creatively driven technology that requires marketing insight and knowhow. Relying on a technology focused company to develop an augmented reality experience provides only half of what you will need to be successful when using AR.

Check they have their finger on the pulse or can demonstrate that they know their stuffIt’s important that the augmented reality resource you choose has demonstrated they are experts in the field. Do they have experts within their business? Do these experts blog or are they seen as industry leaders? Not having a resident expert or someone capable of understanding the technology could mean they lack the depth, experience and knowledge necessary to ensure you are being advised accurately.

Ask them for their rates or fee structureThe cost should be reasonable and the structure should be straight forward. If you see highly technical terms or references in an augmented reality quote, be very cautious. There is no reason why the description of what you are gettingshouldn’t be easy to understand.

Best practice Guide to choosing an augmented reality partner


● Can you demonstrate other commercial experiences you’ve built?

● What technology standards do you follow?

● What functionality can your technology provide?

● Will you be developing the experience in-house, or will you outsource development?

● What is your testing and QA process prior to publishing an AR experience?

● Will the content of my experience be protected?

● What devices and platforms are you capable of developing on (smart phones, tablet, PC)?

● Who owns the rights to the experience once completed?

● Do you have references I can contact?

● Why do you think the AR experience will draw the desired audience?

● How can we be sure what you’ve proposed is possible?

Best practice killer pitch questions


What next for augmented reality?This is a question I ask myself daily, and I believe determining what is to come is far easier than determining when it will arrive. Augmented reality and computer vision in general will excel as technologies as we move closer to an environment where information is instantly obtainable through lightning-fast networks.

Another factor that will contribute greatly to the progress of the technology will be the advancements made in the development of a more natural and immersive delivery system. Be it glasses or contact lenses that deliver the augmentation directly into your line of sight.

Our daily digital lives revolve around PCs, laptops and smart phones, all of which are barriers. Yes, these devices provide us a gateway to a world of information but, at the same time, they restrict us from having this information in a robust format wherever we are in the world. Mobiles are a massive step forward to extend this world of information to us on the move but are still restricted to a 2D environment for the most part.

Combining lightning-fast networks and non intrusive and naturally appealing eyewear (doesn’t block normal vision or make you look like you’re an alien) with localised information will give us far more immersive and useful view of the world around us.

I hope you have enjoyed reading this document as much as I have enjoyed putting the content together. If you have any more questions regarding augmented reality and marketing please feel free to contact me.

Summary The future of augmented reality

Matt Trubow, CEO, Hidden Creative Ltd +44 (0)161 236 8181 or email [email protected]

mailto:[email protected]


Case studies

ABB CASE STUDY:

A great example of the deeper engagement that augmented reality provides is the recent industry event ABB attended, Renewables 2010. The Power Systems UK team wanted to feature the BORWIN and HVDC technologies using AR. They achieved staggering results.

The team at ABB was naturally interested in creating an immersive brand experience at one of its key trade shows, with the ultimate aim of increasing brand awareness, extending dwell times at the ABB booth and generating qualified new business leads.

Two robust augmented reality experiences were created to demonstrate offshore High Voltage Direct Current (HVDC). This was very effective given the difficulty in explaining complex engineering designs or bringing potential clients to locations where visits would be very difficult or dangerous.

The experiences were delivered through HD cameras and large digital displays in a kiosk style arrangement. Delegates were encouraged to navigate and explore in detail numerous aspects of ABB’s offshore systems.

The augmentations were extended to the ABB website and delegates were also provided with instructions and a marker for using the same augmentation online. This enabled those interested to bring the augmentations back to the office to share with colleagues, creating a viral effect and enhancing the communicative value of the event in general.

Appeals to technical & non-technical audience

With an average dwell time of 15 minutes at the ABB stand, attendees spent a considerable length of time interacting with the technology and becoming more familiar with ABB and the company’s other products and services. The ABB team saw a 250% rise in qualified new business leads from the event and website traffic achieved an increase of 451% over the course of a week.

Creates instant appreciation of sophisticated products

Portable & immersive sales tool

Extends your marketing reach through clear communication of capabilities


Gadget Show CASE STUDY:

Huge engagement: Channel 5 - The Gadget Show

Channel 5 The Gadget Show wanted to explore innovative uses of technology within traditional outdoor advertising.

Providing a powerful tool of interaction for the Gadget Show’s existing fan base, Hidden created an augmentation featuring presenter Suzi Perry. Filmed against a green screen, Suzi revealed when and where viewers could catch the new series.

The idea was they could hold their very own ‘Virtual Suzi’ in the palm of their hand. The augmented reality team at Hidden transformed this footage into a 3D augmentation, which was to be hosted not only online, but within the outdoor campaign.


Innovation communication technology

Creates massive social buzz

Encourages product bonding

Allows audience involvementin experience

The promotion created a large amount of online buzz, which culminated in the website benefiting from an additional 101,278 unique users.

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Augmented reality marketing strategies: The how to guide for marketers (full)

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