In a Crowded Holiday Market, AR Offers Reach to Tech Brands

Editor’s note: Today’s column is part of a series with Snap on augmented reality. Below, Christin Klein, U.S. head of tech, shares study findings that demonstrate just how engaging the technology is for consumers. Amid growing economic uncertainty, global headwinds and adjusting to a post-pandemic era, this holiday season is feeling different. Holiday spending was forecasted to drop by $30 billion as consumers cut back on non-essentials, meaning competition to capture consumer attention is fiercer than ever. Given the climate, shoppers are becoming increasingly discerning about what they choose to buy. For tech brands in particular, there’s an added challenge. Big ticket items like hardware typically have longer, more complex paths to purchase, and with that comes the added scrutiny in product selection. While historically, customers would come into a store, evaluate a product or even try it on before buying, a shift to online shopping is making it harder for customers to move from curiosity to conviction, and for brands to help them progress toward a purchase. That’s where AR comes in. For major tech brands selling big ticket hardware, AR is making it possible for customers to access and explore products through a uniquely personalized experience that excites them to consider purchasing. The best part? There’s never closing hours, nor a commute to a store; you can do it anywhere. As we progress through the holiday season, and especially the post-CES period, tech brands can take advantage of AR’s unique features to make it easy—and fun—for shoppers to engage before they even pull out their wallets. Here’s how savvy tech brands are transforming the buying experience using AR. Augmented Reality Drives Consumer Confidence During a Recession An attention-grabbing first touch point For customers just beginning their product exploration, AR can capture attention, offering a noteworthy first experience that drives discoverability and brand sentiment. Our recent research with Dentsu found that AR Lenses delivered a depth of engagement that was comparable to TV, one of the highest attention-driving formats measured to date. As an example, Samsung tapped into Snap AR for their Samsung Galaxy Z Flip4 launch campaign to drive brand awareness and purchase intent. Through playful exploration of the phone’s new features and functionality, Snapchatters were able to interact with the product and bring it to life in their own environment. Snap created two different AR Lenses, a product-focused trial experience and a branded, gamified experience to encourage both product education and engagement. The campaign was able to drive an 18-point lift in brand awareness and a 16-point lift in purchase intent, outperforming both Snap and Samsung historical benchmarks. These types of experiences are what consumers are asking for, with surveys showing that shoppers want to see the same amount, if not more, of AR to see how tech products look and learn more about them. Easy to move from consideration to purchase As shoppers get closer to making their final decision, AR offers ways to make final evaluations and product comparisons with ease and convenience. And especially given the economic environment, last-minute persuasion can help brands stay top of mind and ultimately help motivate customers to buy. To help drive awareness among audiences like Gen Z, Google teamed up with Snap for the launch of its first-ever Google Pixel Watch to leverage the unique capabilities of AR to deliver a personalized try-on experience. Snapchatters can use this Lens to try on the smartwatch in five band colors and watch faces that bring the on-wrist experience to life. The tailor-made interaction with the product left a lasting impression, with playtimes over five times the tech average. This kind of close interaction helps explain why, in recent research, we’ve seen that shoppers are more likely to purchase after trying a branded AR experience, and even more so after activations like virtual try-on. That ongoing challenge of getting products in customers’ hands? Well, it just got easier. AR sells—and makes customers happier The proof is clear: AR sells, no matter where customers are on their journey. Despite the ever-changing winds of consumer preferences and retail habits, brands leaning into AR are seeing positive impact, with up to 94% higher conversions in some instances. For advertisers eager to build long-term brand loyalty, AR also makes customers better shoppers; those who incorporated AR in their purchase process saw increased satisfaction in their decision to buy. Corona Turns Its Famous Holiday Ad Into an Augmented Reality Experience There’s no question that this holiday season will be an uphill battle for many brands, especially for those with higher barriers to entry like tech. But by employing AR as a key component of their strategy, brands can create more excitement, get more products out the door and ultimately keep their customers happy with their choices. It’s a win-win for brands and their customers—not to mention the added convenience it brings. All it takes is your creativity and a phone.