E-Book Augmented Reality: The Next Marketing Channel

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1 E-Book Augmented Reality: The Next Marketing Channel The 2016 Marketer s Guide to Augmented Reality

2 98% of marketers agree that digital and offline are merging. 1 Contact us Your customers don t distinguish between offline and online why do you? As we examine budgets and strategies for 2016, we have to ask the necessary questions: Are you adapting communications strategy to reflect changes in consumer behavior? Is your offline marketing left in the dark, unmeasured and untargeted? Today, most of the world s population owns a mobile device, driving consumption of more digital media than ever before. This e-book is your guide to keeping offline marketing relevant in the digital age. 1 CMO Spending : Growth on Overdrive, Digital Marketing Comes of Age, Gartner Research, 2015

3 Table of Contents Introduction Augmented Reality: The Next Marketing Channel What is Augmented Reality? Bridge the Physical with Digital Through Mobile Getting Started with Augmented Reality About Aurasma Boost Traditional Marketing Channel Performance with AR Direct mail Catalogs Merchandise Print Ads Statements Product Events & Tradeshows In-Store Signage Product Packaging Business Cards

4 58% of millennials expect to engage with a company whenever and via whichever channel they choose 2 We are marketers in a digital world. We know that today s path to purchase is anything but linear. We know consumers expect seamless experiences across the physical and digital. And we want to measure everything along the way. Augmented reality can help connect the dots. AR leverages the benefits of traditional and digital marketing in a whole new channel, making offline marketing interactive, engaging, and measurable. 2 SDL, July 2014

5 Augmented Reality 101 Augmented reality, or AR, is defined as an enhanced view of the world, where digital information and interactions are added to the real world environment. Users unlock augmented reality experiences by viewing physical triggers with a camera-enabled device, such as a smartphone or tablet. There are different versions of AR technology on the market today. We can separate the technology into two main types: Marker-based and Markerless AR. Marker-based AR relies on a 2D visual marker, such as a tag, barcode, watermark, QR code, or other reference point on printed materials. The marker triggers the AR experience on the user s device. Markerless AR uses any part of the real world environment to trigger digital and virtual experiences. Image recognition or other sensors are used to determine the location, position, or orientation of the device in the world. Any image can be used to trigger markerless AR (even those already printed) with the help of a content management interface or platform.

6 Bridge the physical and digital through mobile Take a traditional, offline channel and add augmented reality to generate engagement, lower costs, and increase sales. How? The following pages are a guided tour of what s possible with AR. Learn how adding a simple augmented reality element can significantly boost channel performance.

7 DIRECT MAIL The average direct mail response rate is 3% 2 Direct mail is a traditional, high reach medium that totals $45.2 billion in marketing spend. 3 Take direct mail a step further by adding augmented reality to generate measurable ROI right off the mail piece. For instance, add a digital tap to buy directly on printed mail to create an immediate path to purchase. When you add augmented reality to direct mail, response rates increase to 37% 2 2 Gary Reblin, VP of New Products & Innovation, USPS, Annual Outlook: What to Expect in Direct and Digital Marketing, Winterberry Group, 2015

8 CATALOG Marketers mail 12 billion catalogs each year 4 Response rates for mailed catalogs averaged 4.3% in Use AR to create product engagement opportunities and drive customers to online purchase with a virtual try-and-buy experience. Our clients see tremendous click through and engagement rates on furniture, jewelry, and headwear executions. 72% of catalog recipients prefer to make purchases via online channels. 5 Add try-and-buy and reduce the friction to purchase. 4 Direct Marketing Association, October The Consumer s Point of View, FGI Research, 2011

9 MERCHANDISE Marketers spend $58B on sponsorships globally every year 6 Maximize the impact of sponsorships by using augmented reality to add exclusive content, videos, or 3D animations to merchandise. For example, Disney Star Wars Weekends added exclusive videos, animations, and photo opportunities to branded park merchandise. By increasing the value and longevity of their products, they saw a 25% lift in sales from previous years when they did not use AR. Disney Star Wars Weekends saw a 25% increase in merchandise sales of AR-enabled products 6 End of Year Sponsorships Report, IEG, 2015

10 PRINT ADVERTISING Print ads take up nearly 30% of US marketers budgets 7 The average cost of a full-page, 4 color magazine ad is $250, Yet measuring a print ad s ROI is left to coupon codes, custom URLs, and guesswork. Augmented reality makes print clickable and measurable. Add a video and a CTA to your ad and move customers to the next step in the conversion funnel directly from printed ads. Sign up for GQ Digital AR leads customers to conversion directly from print and measures that conversion accurately. 7 KPCB, Demand Media, 2014

11 STATEMENTS The average call center interaction costs between $4 - $50 9 Customers like having printed statements mailed to them, but often have questions that prompt them to call customer support. By using AR to add online help and account information directly on top of mailed statements, you can reduce call center volume and save operation costs. Driving customers to web selfservice can reduce call volume by 15-35% 10 9 BenchmarkPortal, Intelliresponse, 2012

12 PRODUCT First call resolution is the largest driver of customer satisfaction in customer service 11 What if you could remove that first call barrier? You can, by adding technical support and tutorials directly on products, at the exact time when customers need guidance. Customers resolve issues on their own with the help of the right tutorial, video, or FAQs, resulting in happier customers and less call volume. Customers report 5 points higher satisfaction when brands mix traditional and digital methods in customer care versus traditional alone The Five Most Important Performance Indicators for Cutomer Service Call Centers, Metric Net 12 McKinsey, 2014

13 EVENTS 3 out of 5 marketers use no tools to measure event ROI 13 Hosting, attending, and exhibiting at events comprise 21% of corporate marketing budgets. 14 Three out of five marketers let that marketing spend go unmeasured. Add social media and attendee surveys to badges, signage, and program guides to capture onsite sentiment and keep attendees connected during and after the event. 78% of event organizers plan to increase their use of social media for future events Hubspot, Forrester, Eventility, 2013

14 IN-STORE SIGNAGE 59% of CPG shoppers look for coupons online before entering a store 16 With the rise of e-commerce and a fragmented path to purchase, in-store engagement helps retailers increase foot traffic, engagement, and ultimately, sales. Incentivize and reward in-store shoppers with mobile coupons and exclusive offers from signage or window displays. Augmented reality can help generate shopper engagement and measure coupon redemption rates. AMC Theatres saw a 75% CTR by launching augmented reality trailers and coupons from movie posters in theatre lobbies. 8 Category Shopping Fundamentals, Nielsen, September 2015

15 PRODUCT PACKAGING 67% of retailers say brands can improve sales by providing stronger brand or product representation on shelves 17 Augmented reality can help create deeper, more memorable brand engagement. Trigger games, contests, and targeted messaging and offers directly from product packaging. Budweiser saw 350,000 interactions with its scan-to-win contest on limited edition packaging. 17 Shopper Marketing 5.0, GMA, Booz & Co, Shopper Sciences

16 BUSINESS CARDS Company sales increase 2.5% for every 2,000 business cards passed out 17 Make the most of a first impression. Create a more personal networking experience by adding tap to text, call, , and social links to business cards. It takes no more than 50 milliseconds for users to form an opinion about a website imagine the impression you can make with an interactive business card. Use AR to create a lasting first impression and a more personal networking experience. 18 CNN, BusinesscardABC, Freelance Folder, via Statistics Brain

17 Ready to add augmented reality to your 2016 marketing plan? Getting started with augmented reality is easier than you may think. 1) Sign up for an Aurasma studio account at studio.aurasma.com 2) Take a tour of the Aurasma studio and create your first Aura, or augmented reality experience 3) Publish and share to audiences via the free Aurasma app, or talk to us about whitelabeled or SDK options Aurasma also offers creative services to help you design, execute, and launch campaigns.

18 About HP Aurasma HP Aurasma, part of HP Inc., is changing the way we interact with the world. We help people use augmented reality (AR) to turn everyday objects, images, and places into new, interactive opportunities to engage with their fans and customers through striking graphics, animation, video, audio, and 3D content that drive real results. HP Aurasma develops and owns 100% of its technology. Founded out of pioneering research at Cambridge University, HP Aurasma owns numerous patents in image recognition and pattern matching. Since launching in 2011, HP Aurasma has since risen to become the leading augmented reality platform and has helped over 170,000 customers worldwide leverage augmented reality to drive innovation and reach their goals. HP Aurasma includes a powerful cloud-based studio for creating, managing, and tracking augmented reality campaigns, an SDK, whitelabel app development, and a popular Aurasma app available on Google Play and the App Store. aurasma.com

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