Boosting Brands with Augmented Reality: Why and When it Works

Augmented reality (AR) is gaining recognition among executives as a powerful marketing tool. Unlike virtual reality, AR integrates virtual content into the real world, providing consumers with interactive experiences. AR applications like IKEA Place and Dulux Visualizer allow users to visualize furniture or paint colors in their homes, while AR games like Pokémon Go generate new revenue streams. The increasing availability of AR capabilities in smartphones and the creation of efficient developer tools have contributed to ist breakthrough. AR offers various levels of local presence, ranging from simple overlays to highly immersive mixed-reality experiences. The potential of AR extends beyond virtual reality, as it can create a new form of integrated three-dimensional Internet. AR marketing can enhance brand evaluations and emotional consumer-brand relationships, particularly through inspiration and closeness. Companies should consider AR as a tool for branding, as it has shown positive effects on brand attitudes, product evaluations, purchase intentions and word-of-mouth. Managers are encouraged to experiment with AR to understand ist potential and stay competitive in the evolving digital landscape.