AR’s Impact on Brands: The Snap Consumer AR Report
We’ve known for quite some time now that the significance of Augmented Reality is growing slowly but steadily. It wasn’t until the coronavirus pandemic locked us in for months, however, when retailers fully understood the value of AR shopping and its impact on the buyer’s journey.
Cue the Snap Consumer AR report published earlier this year, addressing the increasing consumer demand for immersive shopping experiences. Virtual try-ons and 3D product models suddenly just make sense, seeing as this new consumer habit is likely to continue post-pandemic.
But there’s so much more to unpack from this report. So let’s take a look at the biggest findings in the Snap AR report:
1. AR adoption is tracking with the mobile usage boom – by 2025, nearly 75% of the global population and almost all smartphone users will be frequent AR users.
With the high speeds, superior reliability and negligible latency of 5G mobile network, AR experiences are about to become even more life-like and accessible anywhere. Not to mention user-friendly, because User Experience (UX) hasn’t always been the strongest point of Augmented Reality due to insufficient Internet connection.
Deloitte Digital also reports that AR-related patents in the US grew more than 3x over the last ten years. Meaning that as the technology advances and more companies explore Augmented Reality mobile experiences, we have moved away from testing AR’s viability on the consumer market to now defining and continuously improving its quality.
2. Worldwide spending on Augmented Reality and Virtual Reality (AR/VR) is forecast to accelerate out of the pandemic, growing from just over $12.0 billion this year to $72.8 billion in 2024.
Since there’s been a wider adaptation of practical applications of AR that don’t require consumers to purchase expensive hardware, customers had the chance to use it in daily life – and found it convenient, especially when it came to online shopping.
Retail brands have certainly picked up on this rising trend. eMarketer found that in January 2020, only 8% of US retailers expressed interest in pursuing AR/VR. By June 2020, this number jumped to 22%. So after years on the market, Augmented Reality is finally proving to be more than just a dog ears selfie filter or a gimmick.
3. 56% of shoppers agree that AR gives them more confidence about product quality.
The ability to visualize or experience a product through Augmented Reality completely transformed the concept of online shopping. Conversion rates for brick-and-mortar stores remain significantly higher than on ecommerce websites, despite the considerable disparity in the level of customer experience delivered by online brands (meaning, it’s often heaps and bounds ahead of physical stores).
So why do people still prefer to shop on the high street? It’s simple – they can interact with the product before buying it. Today, thanks to Augmented Reality for ecommerce, they can also do it in a digital environment which provides them with the right information to purchase goods confidently.
4. Brands are 41% more likely to be considered if they have a branded AR experience.
Augmented Reality delivers almost 2x the levels of visual attention compared to their non-AR equivalent, leading to improved memories and more powerful responses from consumers. This happens for two simple reasons: first, AR is fun, and each time a customer is exposed to the technology, it elicits an emotional response that makes a long-lasting impression on the user.
Second, there are still only very few retailers that utilize Augmented Reality either effectively or at all. According to MobileMarkter, only 1% of global retailers offered AR experiences in 2019. For brands looking to gain a competitive advantage over their competitors in the post-COVID world, now is the time to add AR to your marketing arsenal.
5. Interacting with products that have AR experiences leads to a 94% higher conversion rate, as individuals can better assess them and feel connected with brands.
We saved the best for last. An astonishing 92% of new website visitors aren’t ready to buy during their first visit; this, combined with the recent iOS update and Google's plan to put an end to third-party cookies, calls for online brands to double down on their efforts to engage and convert as many visitors as possible.
Enabling customers to interact with products in AR is definitely an avenue to consider. Because consumers can easily access product information through 3D visualization, and immediately assess whether or not the product is the right fit for their needs or wants, making that purchasing decision is frictionless. AR shopping removes anxiety and product doubts almost instantly, leading to a much higher engagement and conversion rate.
Are you ready to embrace the future of retail?
Augmented Reality shopping is most definitely here to stay and stay for good. The technology proved extremely valuable during all non-essential shops closures and it’s clear customers want to continue shopping in AR post-pandemic. No doubt, Snap’s Consumer AR Report will be one of many to come as the technology evolves and never stops surprising.
Are you looking for Augmented Reality solutions to bring your ecommerce store to life? Reach out today and schedule your demo or speak with one of our helpful team members to find out more.
Snap Consumer AR Report: https://bit.ly/3yDq6hg