Why Is It the Right Time to Think About XR Advertising?

Extended Reality, known as XR is an umbrella term that encompasses augmented reality (AR), virtual reality (VR), and mixed reality (MR). Advertising campaigns that utilize XR components are not new, but the demand is growing, and now is the time for companies to think about making the shift to XR. The World Wildlife Fund and Coca-Cola first started doing AR ad campaigns to bring awareness to the shrinking habitat of polar bears to us as early as 2013. While this really is not that long ago, huge strides have been made in AR since those early days and the technology is becoming increasingly accessible to both consumers and businesses. In 2020 we are seeing more big-name companies, like L’Oreal, Pepsi, and Amazon increase investments with XR advertising. According to research firm SuperData, worldwide XR revenue will hit $12.2 billion in 2023. It’s becoming obvious that a big shift is happening in the realm of advertising and that there are benefits to making the switch to XR.   

The increased investment to extended reality (XR) advertising is no fluke. Web development company, Ruby Garage, gives some insight on benefits gained from AR advertising. “Interacting with AR ads, consumers feel like they’re playing an engaging video game. This builds an emotional connection with customers, encouraging them to make purchases.” Not only can businesses gain more engagement by building this emotional connection, they can also save on the cost of producing these digital AR advertising campaigns, compared to the rising prices, and the dwindling market of the printing industry.  

Printing companies like Chili Printing are aware that digital advertising is becoming more competitive and more cost efficient than print marketing. Leveraging both print and image tracking to create AR ads is beneficial to brands. Erica Sunarjo, a business analyst from Chili Printing, wrote of this benefit in a blog post stating that “Adding a combination of these elements to your flyers, brochures, business cards or posters will allow people to engage with your brand online and be more inclined to make a purchase.”  

What does this mean for the future of XR advertising? A PC Magazine study from 2018 found that 67% of consumers want to learn more about a place they are intending to visit, 54% want to visualize items like furniture before they buy, and 58% of consumers want to learn new skills or techniques using XR. More big companies are starting to realize the power of XR advertising. There are rumors that other powerhouses, like Apple, might be working on AR glasses. No secrets have been revealed yet as to what Apple’s glasses might hold, but the possibilities such a device could provide for XR advertising are limitless. If Apple revolutionizes smart wear much like they did with the iPhone, the world of XR advertising has the potential to connect easier and be more accessible. It is clear that there is a demand, and that consumers want to use XR to visualize before making a purchase or to learn more skills, setting the stage for XR Advertising to be a force to be reckoned with in the upcoming years.