Develop brand awareness and create targeted experiences


To date, there are over one billion augmented reality (“AR”) users and 171 million virtual reality (“VR”) users worldwide.[1], a number that continues to grow as more industries turn to augmented reality and virtual reality to create immersive user experiences. The companies offer standalone experiences that integrate augmented reality and virtual reality at events, such as Samsung and Live Nation’s broadcast of a Coldplay VR concert, as well as through location-based apps in stores to encourage a “Try before you buy” transparent. approach, such as Gucci’s AR clothing and accessories trial app. Augmented reality and virtual reality are shaping the future of advertising and influencing our purchasing decisions. As a company with limited attention span, these immersive experiences can be the answer to cultivate brand awareness and retain consumers.

Distinguish between augmented reality and virtual reality

Although they are often grouped together, augmented reality and virtual reality are in fact separate technological offerings; on the one hand, augmented reality adds elements to the real world, projecting images onto the user’s environment through a lens or headset, like the popular Microsoft HoloLens or Magic Leap One, while the user remains engaged in the real world. Virtual reality, on the other hand, uses a portable device, like the Oculus Quest or Sony PlayStation VR headsets, to create an alternate reality and provide users with a fully immersive experience. By the end of 2023, it is predicted that more than 30 million headsets will be sold each year and that consumer hardware will account for the largest amount of AR and VR spend in the world.[2]

Brands successfully integrating augmented reality and virtual reality in their promotional campaigns

Brands are using augmented reality and virtual reality to create more targeted and personalized experiences for their customers, while increasing brand awareness and collecting real-time data on consumer preferences. A survey showed that 53% of people surveyed would be more likely to buy from a brand that sponsors a VR experience and 62% would feel more engaged with a brand that sponsors a VR experience. [3] We’ve seen many companies successfully use immersive experiences in their branded messaging and selling experience, inundating (passively and actively) consumers with branded content and items; Topshop launched Kinect fitting room,[4] a virtual dressing room where shoppers can “try on” different clothes; Boss launched The Art of the Patron, a Virtual Reality Experience,[5] offer customers a personal “live” tour of their Hacienda distillery; and IKEA launched Place IKEA,[6] allowing customers to place furniture from the IKEA catalog in different rooms around their home.

How consumers react

Social engagement, accessibility and convenience are considered to be determinants of consumers’ willingness to participate in augmented reality and virtual reality experiences. A Nielsen survey found that global consumers are more interested in using augmented reality and virtual reality to both help and improve their daily lives.[7], which includes the use of AR and VR technologies to help them in their purchasing decisions.[8] More importantly, AR and VR technologies provide greater accessibility by removing traditional barriers to entry, such as cost and time; now you can visit the Great Pyramids of Egypt, watch an NBA game, and travel to several different countries, all from the comfort of your own home.

Despite the promise of a more personalized user experience, the slower-than-expected adoption of augmented reality and virtual reality by users has been attributed to the cost, shape of the headsets and a general lack of widespread demand for helmets. consumers for augmented reality and virtual reality experiences. Nonetheless, the video game industry has been most successful in integrating augmented reality and virtual reality to enhance the gaming experience, and to date AR and VR games (think: PokemonGo, Beat Saber, etc.) are the second highest amount of AR / VR spend after consumer hardware.[9] We will need to see improved user experiences and more affordable hardware offerings to drive user growth and adoption across a variety of business and entertainment industries.

Some legal considerations

  1. Protect your intellectual property: Make sure that your software, logo, images, brands, slogans, phrases and material are sufficiently covered by augmented and virtual realities and understand who will own user-generated content (i.e. photographs , music and videos created and integrated by users in the AR and VR world).

  2. Compliance with data protection laws: Evaluate your terms of use with the end user; How is their data collected, stored and shared with third parties? User data enables brands to understand the behavior and preferences of their consumers, which allows them to target ads and increase their revenue. Protection and compliance are therefore essential.

  3. Avoid distorting the products: The Federal Trade Commission prohibits deceptive or deceptive practices in advertising, including, as long as an advertisement relates to description, images, pricing, and delivery. Embedding virtual or digitally enhanced images can be misleading, and companies should be extra careful to avoid distorting products that may influence a consumer’s purchasing decision.[10]

And after?

The future looks bright for augmented reality and virtual reality. Augmented reality and virtual reality have created a whole new landscape for advertisers to reach their target demographics and for brands to educate, sell and train consumers on new products. We anticipate that users will soon see third party advertisements, products and brands appear in their virtual worlds given the profitability of reaching the mass population; however, the timing over which this happens will largely depend on user adoption and the affordability of the hardware in the market. In the meantime, there are many compelling reasons to incorporate virtual reality and augmented reality into your life, entertainment, and marketing and promotion campaigns.

FOOTNOTES

[1] 45 Vital Augmented Reality Statistics: 2020/2021 Market Share and Data Analysis – Financesonline.com

[2] Supra

[3] 53% of consumers likely to buy from brands that sponsor virtual reality – VRScout

[4] Augmented reality: Kinect fitting room for TopShop, Moscow | WIRED

[5] Virtual reality experience | Patron’s Art | Patrón Tequila (patrontequila.com)

[6] IKEA Place, Retailer’s First ARKit App, Creates Lifelike Pictures of Furniture in Your Home | TechCrunch

[7] Augmented Retail: The New Consumer Reality – Nielsen

[8] Supra

[9] 43 VR statistics that are shaking up the market [2020] (techjury.net)

[10] USC § 45 (a) (Article 5 FTC Act).

Hayley Silvertown contributed to this article.

Copyright © 2021, Sheppard Mullin Richter & Hampton LLP.Revue nationale de droit, volume XI, number 41



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