Brands face three pertinent questions about augmented reality (AR) and virtual reality (VR): What is the technology capable of? Where is it going? And how fast will it spread?
Consumers already recognize its potential: worldwide consumer spending on AR/VR products and services is expected to reach $6.8 billion in 2018, per IDC. To some, AR and VR products represent a “shiny new toy,” a must-have accessory. To others, AR and VR represent the future, the foundation upon which new and existing brands can thrive.
AR/VR is one of the emerging technologies that is changing the face of marketing. We recently explored issues like this during an Adweek webinar we did on The Future of Work in Marketing that featured workplace futurist Stowe Boyd. You can view the webinar here.
Leading companies realize that time waits for no one, and have accordingly used AR/VR technology to create exciting products and unforgettable customer experiences. Here are three prime examples.
American Express
As part of its sponsorship of the U.S. Open tennis tournament, American Express hosted onsite events and immersive experiences for attendees. The highlight of Amex’s onsite Fan Experience was “You vs. Sharapova,” a game using VR technology which let fans go head-to-head in a virtual tennis match with tennis star Maria Sharapova using live action and computer-generated imagery of the athlete.
Last year, Amex returned with new VR experiences for the 2017 U.S. Open, this time partnering with Venus Williams to launch “Air Tennis.” This live gaming installation used a combination of custom-built and responsive technologies, including air haptics and motion capture systems, to create an immersive gaming experience. Players faced off against an AI opponent, using only their hands and body movements to return as many virtual tennis balls as possible.
Most recently, Amex integrated a shoppable AR feature in the official smartphone app for Coachella, the annual music and arts festival in California.This AR experience let cardholders buy select merchandise using the Coachella app’s AR camera anywhere on the festival grounds.
Being a finance brand without a tangible product, Amex uses experiential marketing events to engage consumers and keep its brand top-of-mind. These memorable AR and VR experiences would also encourage social media users to share pictures online, bringing the brand some earned media.
Ikea
Coinciding with Apple’s iOS 11 and Arkit launch, Swedish furniture giant Ikea brought out Ikea Place, an app allowing customers to virtually place furniture inside (or outside) their home. Built in collaboration with Apple, Ikea Place automatically scales products in real-world settings with 98 percent accuracy, according to the company.
By virtually placing potential buys around their home before purchase, customers make sure the items they want actually look good before they venture to their local Ikea store. In a future version of the app, users will even be able to tap on a virtual sofa to see how big it is when expanded as a sofa bed.
The company is optimistic that Ikea Place and other AR tools will boost its bottom line over the next two years. Indeed, it could alter the way people buy furniture now and into the future.
“Augmented reality and virtual reality will be a total game changer for retail in the same way as the internet,” says Michael Valdsgaard, leader of digital transformation at Inter Ikea Systems. “Only this time, much faster.”
The New York Times
Using AR and VR, The New York Times has been able to create a sense of place for its readers, integrating the technology into its reporting. This enhances stories where time and place is key, putting the reader alongside journalists at the frontlines.
In 2015, the Times launched the NYT VR app in conjunction with The Displaced, a VR film about three children displaced by war. Through VR, viewers could experience what it’s like to be inside a refugee camp, from the viewpoint of those affected.
Since The Displaced, the Times has published more than 20 VR films, covering topics such as the Antarctic and space exploration. More recently, it launched The Daily 360, a series of VR or 360-degree video filmed from a different location in the world every day. However, it is the Times’ recent foray into AR that has proved especially eye-catching.
Last February, the Times launched its first AR-enabled article, offering a preview of the Winter Olympics. The article focused on top Olympic athletes such as figure skater Nathan Chen and snowboarder Anna Gasser. At key moments in the story, the text would fade away to reveal a 3D image of the athlete placed in the room where the story was being read. Readers could then walk around the athlete revealing new points of view and new details about the athlete and his/her sport.
The following month, the Times switched its attention to the world of pop music, using AR to showcase the eclectic style of late music legend David Bowie.
In keeping with the reader’s proven preference for visual journalism, the Times has opened up a world of AR and VR possibilities. It remains to be seen whether the required investment is sustainable long-term, but the potential for new immersive experiences is clear.
A New Reality
AR and VR have entered the stream of public consciousness, and it does not appear they will be leaving any time soon. Leading brands like American Express, Ikea, and The New York Times are creating value for consumers by harnessing the immense potential of AR and VR, creating new products and newer experiences. Many more brands will follow suit, proving what was once far-fetched is now reality.
The future is here.
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How will the work lives of marketers change over next 5 to 10 years? Watch The Future of Work in Marketing, a recent Adweek webinar featuring workplace future analyst Stowe Boyd. He looks at critical themes around the future of work, from cognitive bias, the rise of AI, the role of “work management” tools and organizational culture.
