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of augmented reality (AR) and virtual reality (VR) technology is a novel trend that seems to be scaling upward lately — such a trend, what some may view as a fleeting fad, may be the next big, innovative opportunity for marketers across the globe to engage customers, both new and current. In the last few years, AR and VR technologies have been continually, and at an increasingly rapid pace, transforming the way consumers choose to spend their hard-earned dollars. In an omnichannel marketing strategy, AR and VR technologies ultimately provide customers with a digital experience in place of a traditional, physical one, offering brands a new space to market their products and services.
How brands are driving revenue in virtual reality
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experiences for shoppers such as product trials and tutorials as well as virtual store experiences like in-store navigation apps and games for shoppers, brands are both enhancing their image and yielding an impressive ROI. Notable examples of brands driving revenue in VR come from companies like Estée Lauder, MAC, Gucci, and Dior, to name only a few. These brands, and others, allegedly created AR “try-on” advertisements that successfully generated direct sales. These “try-on” ads allow app users to use their smartphone cameras to superimpose 3D digital replicas of products onto their bodies. According to The Coin Republic, “Dior’s digital sneakers had 2.3 million views and a sixfold return on advertising investment.”
As a savvy marketer looking for new ways to drive revenue, you may be thinking this sounds like an excellent brand-enhancing opportunity, but how do transactions in VR work? Depending on which platform consumers are engaging on.
Think first — Don’t jump into Decentraland just yet
While the opportunity thailand lists may seem golden, don’t jump into Decentraland and set up shop just yet. It’s important to remember that consumers have typically used AR and VR for gaming only, so there is a lot to consider when thinking about VR as an interactive consumer experience, in which users actively engage with brands online in real time.
Only recently, mostly with Mark Zuckerberg’s company’s rebrand to Meta, has VR become more of a social engagement platform, allowing users to participate in VR for reasons other than gaming. Users are shopping, dining, socializing, etc. There is no doubt that money is being spent, and investors are reaping the profits. Domino’s is taking pizza orders in the Metaverse, to deliver actual pizza to customers’ doorsteps in real life, and Gucci, using an NFT method, is engaging shoppers with lower-cost virtual replicas of its products to adorn users’ avatars.