AUGMENTED-REALITY-AR-IN-MARKETING

Augmented Reality in Marketing

At the moment, Augment Reality (AR) is still new and under-explored. This novelty makes it the latest solution for sharing information. It is set to beat the amount print, online, and TV advertisements combined. AR can capture people’s attention for at least 85 seconds, raise interaction by 20%, and raise the click-through rate to buy by a further 33%. Soon it will be the mainstream and competition will rise—as is the case with all other industries.

With time, there will be more companies focusing on AR-inspired experiences. A rise in people incorporating AR into marketing will yield an equal rise in competition. The quality of campaigns will improve in quality as companies seek to impress audiences. Creativity will determine the best performing products. You will, therefore, need to improve your ingenuity and innovativeness to retain relevance.

Here’s Why Apple Acquired a Small Augmented Reality Startup

Apple’s CEO Tim Cook predicts that AR will become part of our daily lives. It is, therefore, of vital importance for marketers to learn how it works. Let us explore companies that already utilize the technology. These leading companies focus on innovativeness and are keen on taking risks on future technology.

Sephora

Purchasing products online is continuously easy and convenient for most people. However, there are certain products such as makeup, which needs trying on first. Women make up the target group for beauty products and face a problem of having to try on desirable products.

 

Sephora’s Virtual Artist App with ModiFace is an AR tool responsible that helps you view makeup on a similar face. Not only does the app reveal how your face will appear when you apply that product but also suggests tools you need. It also shows the appropriate equipment for application and things you would need to accompany the product.

Virtual Artist also reveals the long-term effects of the consistent use of skincare. This is not possible with beauty professionals.

 

Timberland

Many people are not fond of utilizing dressing rooms when shopping. They prefer to try outfits in the comfort of their homes. Most stores allow returning dresses, shoes, hats, and other items if they do not fit. As a result, many shoppers choose to purchase items but retain the right to return them if they are not satisfied. No one likes to carry a pile of clothes into a public dressing room and wait in a line.

Timberland created a virtual fitting room to help people who want to avoid the hassle in stores. It is, therefore, designed for convenience and comfort. Using Kinect motion sensing technology, the AR lets shoppers view their image. You can see a model body with your size in various outfits.

 

Home Depot

Decorating homes is trendy and exciting but very cumbersome and involving. It is not easy to predict the outcome of a color, for example. Working on your house requires a predictive image to confirm if you will like the results. Products may seem impressive online but fail to give you the level of satisfaction you expected. You may end up with a bathroom that is too bright due to the wrong kind of paint.

Furniture can also go wrong. A piece of furniture may fail to impress you. For example, you may purchase a bulky coffee table at a high cost that does not fit in your living room like you wanted. Going through the hassle of acquiring and transporting an item that does not fit is demoralizing.

Project Color App is Home Depot’s AR tool. It uses patent technology to depict the outcome of colors in rooms. The technology is capable of incorporating a variety of conditions. For example, it takes into consideration, the lighting, objects, and shadows in the room of choice. You can see the real version of your room and share with friends to help you assess it.

 

StubHub

For Super Bowl lovers, StubHub provided an AR feature on their mobile app. The app allowed ticket buyers to view a virtual 3D model of the U.S bank stadium. They could visualize their experience at the stadium before purchasing it.

The different views helped them select seats. Hesitant buyers could not resist the offer. Sales increased tremendously.

 

Pepsi

Pepsi is responsible for designing one of the most exciting tools with AR technology. The tool was made in a London bus shelter. One side of the structure appears as though thrilling objects such as flying saucers, and a tiger is headed for the commuters.

This AR technique was used to amuse the public. It reveals the playful personality of the company. It entertains the Londoners with an exceptional experience. A video of the shelter’s exceptional design made 6 million views on YouTube. This became the most viewed advertising campaign ever.

 

AMC Theaters

AMC Theaters sought to enhance delivery of latest movie trailers in time. When movie lovers come across a movie poster in a theater, they can launch the AMC app and scan the poster. They will instantly receive information about it and a trailer too.

Technology accuracy and timing has given mankind a vital piece of technology of the future.

Billion-Dollar-Business-Model

Billion-Dollar Business Models

A business model helps you define your customer value proposition and pricing. It provides a helpful guide on how to organize your business, whom you should partner with to generate revenue, and how to structure and manage your supply chain accordingly.

Airbnb, Amazon, Netflix, and Uber are among the most innovative tech companies. Their success lies in the viability of their respective business models. Any creative mind can design an attractive brand image to lure potential customers. Without a realistic business model, however, it would be impossible to monetize the attention. The ultimate goal of a business is to capture and retain customers to enable consistent growth. Failure to achieve this would prove costly to the firm.

For the best examples of business models, we sampled four innovative tech companies.

Amazon

Amazon has risen to become one of the most successful companies on the globe beating the biggest retail stores in the game. With a revenue of approximately $177.8 billion, the company surpasses Wal-Mart, Best Buy, Macy’s and other biggest retail stores combined.

Constant innovation that enables it to reach millions of people globally is responsible for this success. Amazon has diversified to as many markets as possible to achieve the widest variety of revenue options.

The company makes 67% of its revenue from retail. Negotiating with wholesalers for low prices helps boost their profit. Since they are dealing with massive amounts of products, the profit margin immensely increases. Over time, the company has developed a network of warehouses and lately manufactured its own products.

There are currently over 45000 robots working in the Amazon Warehouses

Amazon marketplace makes up to 17% of net sales according to their latest reports. The platform allows third-party sellers to conduct business on the company website. These sellers may also purchase Fulfillment By Amazon, which is a service that stores, packs, and ships products with world-class facilities.

Web Services contribute 9% of net sales for the company. Cloud computing infrastructure allows customers to access the software at any location and with any device.

A further 5% of net sales are derived from Amazon Prime. Through monthly subscriptions, Amazon Prime provides customers with shipping options, offers no-cost, unlimited space, and gifts.

Netflix

Netflix generated USD 11.6 billion from big data and analytics making it a major tech company. They buy and create content that resonates with subscribers. They can monitor and predict subscribers’ behavior and preferences with precision.

Netflix aims for 700 original series, movies in 2018

The streaming services come with free monthly trials. After the trials, the subscribers may continue with membership by paying for three plans. The plans are; Basic, Standard, and Premium. The basic plan is the cheapest and allows you to watch Netflix on one screen. The standard plan has an average price. It allowed you to watch Netflix on two screens simultaneously while the premium plan offers four screens running concurrently. It is the most expensive.

Most of the revenue comes from streaming but they still maintain DVD services.

Uber

Uber set out to revolutionize taxi tradition. It transformed the perception of the business. It has changed into a lucrative and efficient business. Since 2009, the company quickly increased its success in providing quality services. Today, it manages 15 million rides a day without owning a single vehicle. At the close of the previous financial year, Uber recorded $ 37 Billion in revenue.

The management-focused their effort on perfecting convenience for riders. They strove to increase speed and lower the cost of service. The company succeeded in addressing the issues facing most city dwellers. It made it possible for customers to book a ride with the nearest driver. They can also see the prices and track the driver’s location on the app.

Uber’s continued customer-related strategy attracted a huge following.

Customers may cancel a request before their driver arrives but at a minimum cost. If it takes too long to meet the driver, they hold the right to cancel the deal. Drivers can also accept or reject the request based on a user’s rating. The request immediately goes to the next available driver nearby.

Uber says it has 2 million drivers globally and 750,000 in the United States. They are the backbone of the company, which is valued at $70 billion.

Uber charges customers depending on the estimated time and distance of their route. Another contributing factor to pricing is the current demand for rides in the area. Your choice of the type of car also contributes to the rate. For example, for your comfort, there are four categories namely; economy, premium, extra seats, and more.

Economy level offers average carpool opportunities with other customers in a sedan. Premium level, on the other hand, offers a luxury ride with a professional driver. The extra-seats option offers space for 6 with a professional driver in an SUV or Uber XL. The final option named ‘more’ offers space for special cases such as wheelchairs.

Uber keeps between 20% to 25% of the revenue and leaves the rest to the drivers. Prices hike during rush hour, bad weather, holidays, and whenever there is high demand.

With the app, it is easy to track users. The app generates massive revenue for the firm due to its popular use by over 40 million active users. Other businesses can also advertise on the app and earn Uber more income.

Airbnb

Airbnb connects over 140,000 travelers with hosts in 190 countries every day. Like Uber, it owns no single property but manages accommodation services. It reached USD 2.6 billion by the end of 2017.

Airbnb became popular because of the creative ideas that give hosts a chance to use their property as a side hustle.

Airbnb have accommodated over 60 million people in 34,000 cities around the world.

Guests simply book rooms in a home that come at affordable prices in comparison to hotel rooms. Spending nights in a foreign home gives you the feeling of the local culture. This is not possible in a hotel.

According to this Fortune article, Airbnb bookings will increase from around 79 million “room nights” in 2016 to one billion per year by 2025.

The booking is easy and cheap. 3% of every booking goes to Airbnb. Guests, on the other hand, are charged 5% to 15% of the booking cost. Hosts can review their guests online before accenting to the deal.