It’s difficult to ignore the rising presence of XR (Extended Reality) in advertising right now. As headsets for VR and applications for AR have grown more pervasive, countless companies have begun investing in more immersive marketing experiences for their audience.
Currently, the global extended reality market size is accelerating at a rate of around 24.5%. According to one report, 84.2% of respondents said sales, marketing, and external communications represent some of the most valuable areas of XR implementation.
XR has provided companies with a better way of connecting emotionally with their audience in a post-pandemic landscape, where face-to-face interactions are less common. At the same time, the technology is also paving the way for a different kind of marketing economy.
Let’s explore how XR is influencing the advertising sphere.
The Potential of XR in Advertising
For decades, marketing teams have experimented with countless tools and experiences to help connect brands with customers, and encourage consumer loyalty. We’ve seen endless different trends emerge over the years, from guerrilla marketing and experiential events to the rise of influencer advertising.
XR in advertising represents an entirely new dimension of brand/consumer interaction. With this technology, companies can essentially take their products to customers wherever they are, allowing them to experience what a piece of furniture might look like in their house, or how well they’d suit a certain shade of lipstick.
At the same time, XR also allows companies to create new environments for their customers to explore, in the form of virtual reality experiences which enhance the impact of a campaign. For instance, Diageo gave customers a way to explore their distillery in VR when sampling whiskey, and found 85% of people experienced a more “enhanced” interaction as a result.
Trends Driving XR in Advertising
For the advertising industry, XR represents an exceptional opportunity to reconnect with clients who are bored of old-fashioned marketing efforts. Today’s consumers are numb to dime-a-dozen banner ads and cold calls, but they’re always keen to engage in an experience that feels new or novel.
Extended Reality allows companies to build more of a focus on great customer experience into their advertising strategy, which can lead to better engagement and sales. Some of the major trends we’re starting to see in the XR landscape for advertising include:
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