Unless you’ve been hiding under a rock, it’s hard not to have heard that augmented reality (AR) has become the biggest thing of 2017.
It used to be that only the potential ROI for AR technology could be sold to investors. Now, however, there are strong results showing what AR development can do for businesses and their customers.
Calculating ROI for AR advertising
The calculations for AR ROI are fairly simple. The most basic pseudo-scientific formula is:
Sales Growth - Marketing Cost) / Marketing Cost = ROI
Marketing costs should include software development time along with the fees charged by the digital agency to create the AR solutions.
The ROI for AR design gets calculated just like traditional media campaigns. As such, you figure out the total cost for exposure and circulation rates against the general increase in sales, or other quantifiable returns such as engagement and social shares.
One of the more exciting things about AR advertising is that unlike traditional forms of media engagement, all interactions with AR marketing materials are measurable. So, too, is the precise direction each individual took after viewing content on an AR platform. Therefore, this makes calculating ROI for AR more accurate than for any other digital marketing methods.
Why AR technology is worth it to your bottom line
They say, “show me the money!” and AR research says that it expects the market to generate over $120 billion in revenue by 2020.
If you have ever experienced AR, you will understand how powerful its content can be. Therefore, augmented reality companies have seen their popularity rise in recent years, not only from brands but also from customers. This kind of desire differentiates AR from other forms of marketing and customer engagement efforts. Users must consciously opt-in to receive AR advertising materials, making it far more valuable.
For instance, Blipps from AR technologies hold consumer attention longer than traditional TV or radio adverts. Typically, it’s 75 seconds for a blipp versus 30 seconds for TV or radio.
Increased coverage of AR design is another benefit that positively impacts your ROI. With the AR market expected to continue rising in the coming years, exposure is also expected to boom. This results in greater ease of marketing the technology and consumer adoption, and a boost to brands’ bottom lines.
Quantifiable engagement on augmented reality solutions boosts ROI
Thanks to all of the interactions within an AR platform being measurable, strategic insight for advertising campaigns is easier to obtain. This includes: A/B testing, analyzing different media partner’s conversions, and discovering which locations produce the best responses. These results are also obtained faster and no longer require guesstimation.
The real-time dynamic nature of AR technology in combination with the deeper levels of engagement mean businesses can see faster returns on their investment. Elements of a campaign that may need tweaking to provide better results can be compared with the success of competitors. This makes it easier to decide which changes might be beneficial, or if the returns accrued are on par or better than industry standards.
How to earn more ROI from AR advertising
A few guidelines you should follow to ensure your ROI is strong and your predictive calculations meet your actual return.
1. Develop AR solutions that help, reward, or entertain your customers. Don’t lose sight of the user experience along the way, or sacrifice utility for design.
2. Educate your customers in your AR advertising efforts. You’ll need to show them exactly how to interact with your platform, and the actions you want them to take when using it.
3. Set clear goals and strategies for cross-platform use. As you undergo AR app development or other AR design, consider how and where the end product will appear to people. For example, consider features like will it be an in-person ad viewable by the public? Or is your marketing conducted through its own standalone app?
4. Make sure you’re getting the word out about your AR design. Use the various marketing mediums and sites at your disposal for distributing your branded message with AR advertising. For example, make an announcement on your Facebook page about the launch of your augmented reality app.
The potential of AR solutions for industries across all verticals is immense. With the added advantage AR technology offers in terms of immediate measurable results, calculating ROI has never been easier. Simple calculations, hard evidence on effectiveness, and following clear campaign guidelines will allow you to boost your bottom line when advertising your AR design.