DIGITAL MARKETING ASSIGNMENT

“HOW TO LEVERAGE AUGMENTED REALITY IN YOUR DIGITAL

MARKETING STRATEGY?”

By: OLIVIA SANDY 3303018011

INTERNATIONAL BUSINESS MANAGEMENT

FACULTY OF BUSINESS
WIDYA MANDALA CATHOLIC UNIVERSITY SURABAYA
YEAR 2020
 CHAPTER 1
INTRODUCTION
1.1 Background
The world that we have today is divided into two realms. The physical one and the digital one. In
case you haven’t already noticed, we spend most of our time in the digital realm. We swipe on images,
pinch and zoom into text, grab screenshots, stream video and do much more in our digital world that
would appear a mystery to Einstein or even Nikolas Tesla. In the physical realm, we have tangible
sensory experiences like touch, push, speed, etc. Imagine a technology so powerful that it can blur the
lines between physical and digital realms? Such technology can raise the bar of utility, productivity,
and innovation in every field. Augmented reality is that technology. Almost every top major brand in
the face of the world today has started using Augmented Reality. Apple has already introduced it as a
highlight feature in its iPhones. Other top players across diverse industries like Toyota & Hyundai in
automobile, Starbucks in hospitality, IKEA in retail, Adidas in sportswear, GUCCI in fashion have
started dishing our immersive experiences using Augmented Reality. Augmented reality has made its
way into the digital marketing strategy of big and small brands. The technology is allowing marketing
managers to make their digital marketing campaigns innovative and engaging by letting people connect
with the brand.
Augmented reality isn’t for social media. It isn’t for video, content, or paid. AR is for all of it. It’s
an environment where we can place our digital content in our everyday lives. For marketers, you can
quickly see the value of being able to place your content into your customers’ reality. And that value
applies to more than just social messages, videos, content, etc. In fact, Cathy (and other leaders like
Mark Zuckerberg) believes AR will revolutionize business the same way that computers and cell
phones have. Too often, we think of VR and AR as new pieces of software. In reality, they’re spatial
computing platforms that are much more impactful than we give them credit for.
So in this paper I want to dicuss more about
 CHAPTER 2
CONTENT
2.1What is Augmented Reality?
Augmented reality (AR) is the real-time use of information in the form of text, graphics, audio,
and other virtual enhancements integrated with real-world objects. Augmented reality is the rendering
of digital images or data onto real-world objects. Augmented Reality turns the environment around you
into a digital interface by placing virtual objects in the real world, in real-time. Augmented Reality can
be seen through a wide variety of experiences. We distinguish 3 main categories of Augmented Reality
tools. Augmented Reality 3D viewers, like Augment, allow users to place life-size 3D models in your
environment with or without the use of trackers. Trackers are simple images that 3D models can be
attached to in Augmented Reality. Augmented Reality browsers enrich your camera display with
contextual information. For example, you can point your smartphone at a building to display its history
or estimated value. The last way that Augmented Reality is generally experienced is through gaming,
creating immersive gaming experiences that utilize your actual surroundings. Imagine shooting games
with zombies walking in your own bedroom! The biggest use of Augmented Reality gaming to-date is
Pokémon Go, allowing users to catch virtual Pokémon who are hidden throughout a map of the real
world.
Augmented reality displays superimpose information in your field of view and can take you into
a new world where the real and virtual worlds are tightly coupled. It is not just limited to desktop or
mobile devices. As mentioned, Google Glass, a wearable computer with optical head-mounted display,
is a perfect example. A simple augmented reality use case is: a user captures the image of a real-world
object, and the underlying platform detects a marker, which triggers it to add a virtual object on top of
the real-world image and displays on your camera screen.
Real-World Examples are AR applications can become the backbone of the education industry.
Apps are being developed which embed text, images, and videos, as well as real–world curriculums.
Printing and advertising industries are developing apps to display digital content on top of real world
magazines. With help of AR, travelers can access real-time information of historical places just by
pointing their camera viewfinder to subjects. AR is helpful in development of translation apps that can
interpret text in other languages for you. Location based AR apps are major forms of AR apps. Users
can access information about nearest places relative to current location. They can get information about
places and choose based on user reviews. With the help of Unity 3d Engine, AR is being used to
develop real-time 3D Games.
The Opportunity of it is estimated that 2.5 billion AR apps will be downloaded annually and
will generate revenue of more than $1.5 billion by 2015. This is because AR apps will not be limited to
conventional mobile apps. There will be new markets like Google Glass which will open more forms of
development and use.
How did Augmented Reality become so popular in recent years? The truth is Augmented
Reality is not a recently created technology. It has been around since the 1990s. In fact, Boeing has
been using AR in its factories for designing circuitry in airplanes. AR largely remained an enterprise-
grade technology because it required large computing resources that were not available for domestic
consumers. However, in recent years with the massive surge in computing power in mobile phones and
personal computers, AR has become a consumer technology. Strides in data connectivity and cloud
computing are also positively influencing factors that have led to the quick adoption of immersive
technologies like Augmented Reality.
There are two versions of AR technology currently in use:
Marker based AR - Marker based AR uses a 2D marker, such as a QR code, barcode or watermark.
When the user points a device at one of these markers, it triggers the AR experience.
Markerless AR - Markerless AR can use any part of the real world as the trigger to launch an AR
experience. The markerless trigger could be an image or a location. AR apps installed on phones can
use GPS information to trigger AR when the device is in a certain geographical location and positioned
at a certain attitude.
2.2 What is Digital Marketing?
Digital marketing encompasses all marketing efforts that use an electronic device or the
internet. Businesses leverage digital channels such as search engines, social media, email, and other
websites to connect with current and prospective customers. A seasoned inbound marketer might say
inbound marketing and digital marketing are virtually the same thing, but there are some minor
differences. And conversations with marketers and business owners in the U.S., U.K., Asia, Australia,
and New Zealand, I've learned a lot about how those small differences are being observed across the
world.
At a high level, digital marketing refers to advertising delivered through digital channels such
as search engines, websites, social media, email, and mobile apps. Using these online media channels,
digital marketing is the method by which companies endorse goods, services, and brands. Consumers
heavily rely on digital means to research products. For example, Think with Google marketing insights
found that 48% of consumers start their inquiries on search engines, while 33% look to brand websites
and 26% search within mobile applications.
While modern day digital marketing is an enormous system of channels to which marketers
simply must onboard their brands, advertising online is much more complex than the channels alone. In
order to achieve the true potential of digital marketing, marketers have to dig deep into today’s vast and
intricate cross-channel world to discover strategies that make an impact through engagement
marketing. Engagement marketing is the method of forming meaningful interactions with potential and
returning customers based on the data you collect over time. By engaging customers in a digital
landscape, you build brand awareness, set yourself as an industry thought leader, and place your
business at the forefront when the customer is ready to buy.
By implementing an omnichannel digital marketing strategy, marketers can collect valuable
insights into target audience behaviors while opening the door to new methods of customer
engagement. Additionally, companies can expect to see an increase in retention. According to a report
by Invesp, companies with strong omnichannel customer engagement strategies retain an average of
89% of their customers compared to companies with weak omnichannel programs that have a retention
rate of just 33%. As for the future of digital marketing, we can expect to see a continued increase in the
variety of wearable devices available to consumers. Forbes also forecasts that social media will become
increasingly conversational in the B2B space, video content will be refined for search engine
optimization (SEO) purposes, and email marketing will become even more personalized. “Digital is at
the core of everything in marketing today—it has gone from ‘one of the things marketing does’ to
‘THE thing that marketing does.’
2.3 What the influence of Augmented Reality to Digital Marketing?
Although eclipsed by VR among the mainstream audience, the value of AR in marketing is
undeniably significant. Leading businesses are already incorporating AR as part of their digital strategy
to attract customers and provide them with positive experiences. The mainstream hype surrounding
virtual reality (VR) has, to a certain extent, subdued popularity of augmented reality (AR). AR in
marketing allows businesses to enhance customer experience by overlaying visual information over
regular objects. This gives the customer an augmented version of reality, which is more engaging and
informative.

Uses of AR in marketing
The main objective of AR in marketing will be to achieve increased brand awareness, greater customer
engagement, and higher perceived value. AR in marketing
Enhancing brand awareness
Having an interesting AR application that gives users a memorable experience helps in creating a buzz
for your brand. AR in marketing ensures better online engagement and more shares and likes with your
customers, leading to more exposure and increased brand recognition. Creating advertising campaigns
powered by AR, which are not only entertaining but also provide value to customers, increases top-of-
mind awareness and attracts media coverage. Pepsi’s augmented reality ad in a London bus stop is an
early example of how the technology can be used by established brands to stay competitive. The
effectiveness of AR as a marketing tool had been proven much before when fashion retailer Moosejaw
launched an AR app, powered X-ray, to view its print catalogs. The app got over 250,000 downloads
and sales increased by 37% due to the initiative.
Increasing customer engagement
Although online shopping has seen rapid growth in the recent years, offline, in-store shopping is still
considered as a more reliable way of buying things. This is especially true when people want to make a
long-term investment such as buying home furniture or getting renovations done. Leading brands like
IKEA have used AR to enable customers to gauge how well the company’s product fits in their homes.
IKEA Place, which is IKEA’s AR app, uses the customer’s smartphone camera to display how a
selected item of furniture would fit in the customer’s residence. The app not only makes it easier for
customers to determine what furniture is right for their home but also provides a fun way of
experimenting. Other global brands like Coca-Cola and Nippon Paints have also used AR-enabled
marketing strategies, resulting in increased social interaction and engagement.
Boosting perceived value
Using AR to provide customers with interesting experiences and services allows brands to present
themselves as innovative leaders in their industry. It also leads customers into valuing a brand’s
products more than its peers. In a recent study, 40% of respondents were willing to pay more for a
product that could be experienced through augmented reality. This shows a direct causal relationship
between the use of AR and perceived value. The same study also reported that 61% of shoppers would
prefer shopping at stores offering AR over stores that do not. Brands are increasingly realizing the
value of AR in boosting perception and are developing ways to integrate AR into their marketing and
customer service channels.
It could be argued that 2018 is the year of AR, and that the application of the technology will only
increase henceforth. This should serve as a wake-up call for businesses who have not yet contemplated
over the use of this technology in their marketing campaigns.

2.4 How to leverage AR in Digital Marketing?

1) Allow you to grab customer attention
Good marketing is all about capturing people’s attention. In the past, it was quite simple, but with the
advent of new technologies, it has become quite difficult. You need to find out innovative practices to
boost brand visibility and awareness.
AR technologies allow you to do this. With AR, you can collect plenty of attention from your target
audience in ways that traditional promotional tactics such as Television, billboard, and print media
cannot. You can reach a huge number of peoples within no time, and this is the beauty of AR. Plus, you
can excite customers, which forces them to buy from you.
2) Product visualization for digital marketing strategy
Augmented reality empowers today’s consumers by handing them the ability to visualize products. In
its basic definition, product visualization can be described as a process where images and graphics are
used by companies to visually communicate the products to the customers. To this date, a lot of
companies are doing this by enabling their e-commerce sites and demo apps with visual product
configuration software. Take IKEA, for example. The Sweden based furniture retail company has
recently replaced its traditional photography with 3D renderings. The digital catalogs and IKEA app let
users see how a piece of furniture of a specific color and size would look in their homes. According to
a survey, more than 75% of customers worry about buying the wrong size of the furniture. AR apps are
great technological advancements that can help retailers reduce the hassle of returns and regrets.
3) Letting customers virtually try before they buy
You can try your next pair of glasses that you are going to buy by just using your smartphone.
Integrating AR technologies in your digital marketing strategy would allow customers to understand
what they’re buying- and how precisely cosmetics, clothing, and accessories, etc. would work for them.
It’s all about putting your product in the hands of customers virtually so that they can make more
informed decisions. The direct-to-consumer eyeglass brand, Warby Parker, launched a ‘virtual try-on’
system that lets its customers try glasses at the comfort of home. People just need to download the app,
pick the style of the frame they want to try, and then activate the feature that opens up the front camera
and place the glasses on your face. The glasses stay fixed in their place even if the person moves and
tilts their head.
4) Creating a buzz around the brand
Augmented reality can work both directly and indirectly for your digital marketing strategy. If you’re
not launching a new product, you can still use AR technologies to uplift your brand reputation and
increase awareness among the target audience. By offering an unexpected reality experience, you can
create a significant hype around your new brand. Since AR is still a new concept in the market, using it
as part of your marketing plan can help you create memorable moments for people with the brand.
Take some inspiration from the beauty brand that thrived even amid the COVID-19 pandemic. Sephora
has created an AR app that lets people buy perfect makeup during the pandemic. The company
partnered with an AR firm ModiFace that scans the human face and lets consumers try on different
hundreds of cosmetic products so that they can pick the products according to their facial features and
needs.

5) AR tech for injecting life into objects

Augmented reality is a great way to boost the effectiveness of your digital marketing strategy. AR
technology is a fantastic way to improvise touring experience by bringing the dead to life.

The app is famous among visitors who use it inside the museum to history and see how the dinosaurs
and objects displayed on the exhibition looked about thousands of years ago. This is indeed a great way
to enhance tourism and academic experience as technology enables people to engage with the objects
on a deeper level.

6) Driving engagement with digital packaging

Every marketing student and professional knows that packaging plays a great role in influencing
purchase decisions. The packaging is your chance to communicate with users. With AR technologies,
you can turn your dull and boring packaging great and pass on detailed information that you can just
put on the label. AR is a fantastic way for all of your users to explore additional product-related
information by viewing a product with specially designed apps. You can share content that’s unique,
interesting, and relevant through a variety of digital mediums. This information could be text or 3D
animations. For instance, The British Museum signed a partnership with the smartphone company
Samsung to build AR apps for this purpose. AR technologies for product packaging can benefit you in
a number of ways:
Powerful brand storytelling
Providing educational and technical details about the product
Entertain customers
The world’s leading whiskey brand Jack Daniel’s, use AR for its product packaging. Within a few
seconds of scanning the bottle, the app takes users on a virtual tour and shows the detailed process of
winemaking.

7) Digital marketing strategy with gamification

According to a recent study released by a coursework writing service, gamification has been
recognized as a top digital marketing technique within a very short period of time. This tactic has been
adopted by a number of brands to capture the market’s attention and deliver them superior value. It
involves design elements that can engage game lovers and compel them to crave for more. The US-
based entertainment channel used the gamification tactic to spread the word about their mystery series
‘Dig.’ The cable channel launched a smartphone app with the name ‘Dig Decoder’ to give hints about
the game. By using the app’s viewfinder option, the users can look for additional game cues hidden
inside the game magazine, billboards, and print ads. You can say that by using augmented reality for
your next digital marketing strategy, you can give your audience another reason to enjoy the show.

Sources:
Article:
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%20coupled.
- https://www.intelivita.com/blog/augmented-reality/
- https://www.allerin.com/blog/heres-how-ar-will-change-digital-marketing
- https://www.clickz.com/how-to-leverage-ar-in-your-digital-marketing-strategy/264804/
Journal
- Cizreliogullari, Mehmet & Akdeniz, Tülin. (2020). THE ROLE OF ARTIFICIAL
INTELLIGENCE IN DIGITAL MARKETING.
- Verma, Vijay & Sharma, Aditya & Jain, Ketan & Adlakha, Sushant. (2021). Digital Assistant
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