1. Seema Gupta
Assistant Professor
Indian Institute of Management
Bangalore
DigitalMarketingTadka.com
dmtadka@gmail.com

2. So What is
Augmented
Reality?
© Seema Gupta

3. Introduction to Augmented Reality
• Augmented reality (AR) is
the augmentation of the
real physical world that
we live in with virtual
objects through a
technological medium.
Meaning
© Seema Gupta

4. Introduction to Augmented
Reality(contd.)
•High customer interactivity
& engagement level
•Customer behaviour can
be monitored
•Point of sale promotional
tool
•Form of Experiential
Marketing
Relevance
© Seema Gupta

5. Introduction to Augmented
Reality(contd.)
Augmented Reality is an emerging tool that is growing with digital revolution
© Seema Gupta

6. Why use AR?
© Seema Gupta

7. Applications of Augmented Reality
Augmented Reality has applications across
fields and marketing activities
© Seema Gupta

8. Applications of Augmented Reality
Promotion & Product launch
Shoppers Stop Promotions
© Seema Gupta

9. Applications of Augmented Reality
Brand communication
Mahindra SUV
© Seema Gupta

10. Applications of Augmented Reality
Online sales
Macy’s online sale
© Seema Gupta

11. Applications of Augmented Reality
Gather Customer Intelligence
Geo Guides Tourist Application
© Seema Gupta

12. Applications of Augmented Reality
Industrial Application
Metaio Engineering Solutions
© Seema Gupta

13. Applications of Augmented Reality
Education
Layar Browser
© Seema Gupta

14. Applications of Augmented Reality
Entertainment
Avatar Toys
© Seema Gupta

15. Literature Review
Effectiveness
of AR
• Consumers exposed to AR advertisement had more
incentive to view the manufacturer’s website after
viewing the advertisement
• Print media was more effective in delivering
factual, especially text-based, information for later
recall
• Need for an integrated marketing communication
program
Augmented Reality is effective in getting the attention of the user but not in conveying information
Source: http://edgd.asee.org/conferences/proceedings/65th%20Midyear/Connolly_Chambers_Augmented_Reality
© Seema Gupta

16. Literature Review
Three measures of the perceived value
AR manages to create short term ‘wow factor’ but may not create long term brand
attitude
Source: Yuan, Y.E and Wu, C.K (2008). “Relationship Among Experiential Marketing, Experiential Value and
customer Satisfaction”, Journal of Hospitality & Tourism Research, Vol 32(3), pp. 387-410.
© Seema Gupta

17. Is
Augmented Reality
Beneficial for Brands?
© Seema Gupta

18. Augmented Reality
Enhancing
convenience
Influencing
enjoyment
Relevancy of idea
Ease of
interaction
WOM (Word of
Mouth)
• Time saving and practical
• AR apps are very enjoyable and different for the
consumer compared to other marketing tools
• The WOW factor.
• Depends upon interaction of the culture and
psychographics of TG with the product category and
level of detail required at the time of purchase.
• The effectiveness of AR depends upon how
personalized and interactive the execution of AR is for
• the user.
AR in online space has the potential to go viral on
social networking sites by sharing of videos and
photos and can also generate positive Word Of
Mouth for the brands.
© Seema Gupta

19. Interviews with Industry Experts
Synergy Concerns
• How will this new communication technique gel with existing marketing
communication by the organization?
• Will not this new technique confuse the existing customer base?
Financial Concerns
•
•
•
•
What would be the cost of having an effective AR strategy?
Will it be reusable for future offerings as well?
Would I be able to justify the cost of experimenting with this new tool?
Will I be able to reduce my existing marketing budget or will AR be an add-on?
Strategy Concerns
•
•
•
•
How sophisticated AR technique should be for my product?
Can this give me a competitive advantage over the competition?
How can I leverage AR by using other communication tools in tandem?
What would be the conversion rate of the reach generated by this tool?
Marketers are concerned about the financial, strategic and synergy implications of AR
© Seema Gupta

20. A Customer Centric View of AR
Sensorial AR
Example
Cognitive AR
Experiential AR
Lifestyle AR
Used for product
demonstrations to
test the look and
feel of the product
Customers engage
with designing and
see unique,
customised
products come to
life
involves one’s
affective system i.e.
their moods,
feelings &
emotions; generate
word of mouth
publicity
transcends the use
for a particular
product for
communicating
socialising and
other daily
activities.
Primarily low
involvement
products like FMCG
goods
Medium level
involvement, Lack
of perceived
customization
High involvement
products
Personal Care
products, New
product
introduction
Gesture control
Lifestyle
applications
Dark Fantasy AR
based mall
activation
Ray-Ban Virtual
Mirror
Online Custom
Apparel, Interior
designing
Axe effect- Angels
falling down
Google glass/IWatch
Affects the senses
and aims to
provide good
sensorial
experience
Product
Category
Pragmatic AR
AR offers different degrees of user engagement, enhancing the customer experience
© Seema Gupta

21. Hypothesis for Augmented Reality
High Involvement
Low Involvement
Informational
Transformational
Sensorial AR
Product Category:
Low Involvement:
like FMCG
Pragmatic AR
Product Category:
Medium
Involvement:
Experiential AR
Product Category: New
Product Introduction,
Personal Care
Cognitive AR
Product Category:
High Involvement:
Life Style, Fashion,
Industrial etc
Lifestyle AR
Product Category: A
wide range
Hypothesis: Product category and the levels of AR used for marketing are inter-related
© Seema Gupta

22. Hypothesis Results
Sensorial AR
Sensorial AR may not be appropriate media to create brand
awareness.
Pragmatic AR
Pragmatic AR is ideal when one wants to increase trial
(aided by curiosity factor of consumers) and it also
differentiates the brand from other competitors
Cognitive AR
Cognitive AR is able to provide the complex and multipleparametric information with clarity with use of technology
Experiential AR
Lifestyle AR
Experiential AR utilizes the online media to spread the
actual campaign in the form of video or rich media
The mental barriers to personal relevance using the
advanced technology underlying the lifestyle AR push it to
some distant future
© Seema Gupta

23. Rating levels of AR on Customer
Experience Factors
Involvement
1
2
3
4
Sensorial
Cognitive
Pragmatic
Experientia
l
Lifestyle
Informational Content
1
2
3
4
Sensorial
Cognitive
Pragmatic
Experientia
l
Lifestyle
© Seema Gupta

24. Wow Factor
1
2
3
4
5
1
Time & Cost of Implementation
2
3
4
5
Sensorial
Cognitive
Pragmatic
Experiential
Lifestyle
Sensorial
Cognitive
Pragmatic
Experiential
Lifestyle
© Seema Gupta

25. Perception (Product/Brand)
1
2
3
4
Sensorial
Cognitive
Pragmatic
Experiential
Lifestyle
Each level of AR offers unique customer experience and marketer need to adopt the right
fit
© Seema Gupta

26. Financial Feasibility of Augmented
Reality
Costs Involved
•
•
•
•
•
•
Development Cost of
Mobile/ Webcam
Application
Graphics development
Maintenance
Upgrades
Programming interactivity
AR engine license
Data licensing
•
•
•
•
•
Cost of Campaign in
a Mall (like rental)
UI/UX
Integration
testing
Reporting fees
Traffic fees
Hosting
Print space cost to
advertise for the
event
Cost Distribution (for
webcam AR App)
CG Development
Interactivity
Programming
AR engine license
Integration
Testing
Source: Augmented Reality : Real World View ( December 2011/January 2012) www.totaltele.com
Project Management
& Maintenance
Percentage of
Total Cost
35-40%
30%
10-15%
5-20%
5-15%
© Seema Gupta

27. Setting Target with Augmented Reality
Step1
Step 5
Analyze the data
after the end of a
defined period and
examine the AR
strategy. Set new
realistic goals
Monitor present
traffic on
Facebook/youtube
page and website
for a month
Step 2
Analyze the data,
set realistic goals in
terms of percentage
improvement and
launch AR content
Step 3
Step 4
Make necessary
changes on website
and tailor social
media activities
accordingly
Assess social
networking
participation and
engagement
activities, compare
them with previous
data
5 step framework to facilitate the marketer to generate leads on social media
© Seema Gupta

28. Digital Marketing Plan with
Augmented Reality
Buyer Stage
Exploration
Key Measures: Visitors,
Inbound links & Followers
Decision Making
Key Measures: Traffic on site,
Share/comment/likes & Lead
conversion
Purchase
Key Measures: Orders,
Revenue & Average order
value
Advocacy
Key Measures: Repeat
purchase & Referrals
AR can be leveraged at the Reach Stage and also sustained through other stages to
convert leads
© Seema Gupta
Source: http://www.smartinsights.com/digital-marketing-strategy-guide/

29. Limitations of Augmented Reality
Over-reliance on
Technology
Costly or
inaccessible to
the major target
segment. Nielsen:
50% smartphone
users don’t have
data connection
Perceived difference
between AR and real
experience
‘feel’ (which AR
doesn't offer) of
the product is
considered a
proof of its
quality
One Shot Tool
The wow factor of
AR exposure, a
significant factor,
can’t be
generated on
second exposure..
Compromise on
Privacy
Various AR
applications
demand personal
information or
location details
which might
compromise the
user privacy.
Despite it’s advantages, Marketers need to be aware of these limitations and be cautious
while setting targets
© Seema Gupta

30. How would you use
Augmented Reality?
Read more on
DigitalMarketingTadka.com
Acknowledgement: Report on Augmented Reality by Aniket Batra, Ravali Reddy, Ravi Purohit, Arun Bagaria, Rohit
Jaiswal (IIMB students)
© Seema Gupta